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WHAT IS A BRAND?
Abrand is a name, term, sign, symbol, or designwhich is intended to identify the goods or services of
one seller or group of sellers and to differentiatethem from those of competitors.
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BRAND ELEMENTS
A variety of brand elements can be chosenthat inherently enhance brand awareness orfacilitate the formation of strong, favorable,and unique brand associations:
Brand Name Logo Symbol Character Packaging Slogan
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Why branding ?
What makes a brand strong?
How do you build a strongbrand?
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CUSTOMER
-BASED
BRAND
EQUITY
The differential effect that brand
knowledge has on consumer response
to the marketing of that brand.
Customer-based brand equity occurs
when the customer has a high level of
awareness and familiarity with the brand
and hold some strong, favorable, and
unique brand associations in memory.
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BRAND EQUITY
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BrandLoyalty
Brand Awareness
Brand Positive Attitude
Brand Occasional users
Brand Association
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AN EXAMPLE Brand loyalty (10,000 customersConsume @4/month = 40,000 sales unit/month
Brand Occasional users (10,000 X@1 per 2months = 5000 units sales per month)
Brand Positive Attitudehas a good chance topurchase and consume the products under thebrand if motivated.
Brand Awarenesshas tendency to try, use or
recommend the products under the brand ifconvinced.
Brand Associationhas tendency to try, use orrecommend the products under the brand.
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SOURCES OF BRAND EQUITY
Brand awareness
Learning advantage
Consideration advantage
Choice advantage\
Brand Image
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CONSUMER REASONS FOR BRAND CHOICES
AN EXAMPLE
Past experience
Price
Quality
Personal recommendation
Advertising
Rating on consumer report
Environmental performance
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4 STEPS OF BRAND BUILDING
1. Ensure identification of the brandwith customers with a specific productthat meet customer need.
2. Firmly establish the totality ofbrandmeaning in the minds of consumers.
3. Elicit the customer responses tobrand identification and brand
meaning.4. Convert brand response to create an
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BRAND BUILDING BLOCKS
Identity - who are you?
Meaning - what are you?
Response - what about you?
Relationship - what about you and me?
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Salience 1.Identity
2.Meaning
3. response
4 relationship
ImageryPerformance
FeelingsJudgments
Resonance
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Category identificationNeeds satisfied
Product characteristicsReliability
Effectiveness
Style / design/ price
User profileUsage situationPersonality and values
History, heritage, experiences
QualityCreditability
ConsiderationSuperiority
Warmth /Fun / excitement
SecuritySocial approval / self respect
Loyalty
AttachmentCommunityEngagement
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BRAND RESONANCE
Behavioral loyalty
Keep buying the same product and same brand
over years or generations
Attitudinal attachment Believe in the brand
Sense of community
Use the brand because of sense of community
or vice versa, E.g. Apple, Harley Davidson
Active engagement
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PRODUCT CATEGORYSTRUCTURE
AN EXAMPLE
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Beverage
Water Flavored
Non-alcoholic Alcoholic
milkCoffee& tea
juiceSoftdrink
wine beerDistilledspirits
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BRAND POSITIONING
Brand Positioning (as defined by Kotler) is
an act of designing the companys offer
and image so that it occupies a distinct and
valued in the target customers mind.
Finding a proper location in the minds of
a group of consumers or market segment sothat they think about a product or service in
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ESTABLISHING BRAND POSITIONING
Target market
Points of parity and Points of Difference
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TARGET MARKET
A market is the set of all actual and potential
buyers who have sufficient interests in, income
for, and access to a product.
A market segmentationa distinct group of
homogeneous consumers who have similar needs
and behavior and thus require similar marketing
mixes.
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SEGMENTATION BASES
Behavioral
E.g. user status
Demographic
E.g, age, income
Psychographic
E.g. values, lifestyle
Geographic
E.g, local, regional,
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Nature of good
E.g. Semi-finished
Buying condition
E.g. Location
Demographic
E.g. SIC code
No of employees
Sales volume
ConsumerSegmentation Bases
Business-to-businessSegmentation Bases
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SEGMENTATION CRITERIA
Identifiability: can segment
identification be determined?
Size: is there adequate sales potential in
the segment?Accessibility: Can the segment be
reached?
Responsiveness: How favorable will thesegment respond to a tailored marketing
program>
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SEGMENTS OF USERS
4 Groups of users based on strength of
commitment.
Convertiblehighly likely to switch brands Shallownot ready to switch but consider
alternatives/
Averagecomfortable with their choice,
unlikely to switch brands in the near future. Entrenchedloyal to the brand, unlikely to
change in the foreseeable future.
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POINTS OF PARITY(POP)AND
POINTS OF DIFFERENCES (POD)
Point of Parity a particular dimension
or attribute or a brand which a group of
consumers believe that is good enough or
meet their basic expectations.
Point of Difference A particular
attribute or dimension of a brand which a
group of consumers likes and perceives as
the uniqueness of the brand.
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POINT OF DIFFERENCES
Other names:
Competitive Points of Parity
Unique Selling Point
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POSITIONING GUIDELINES
1. Defining and communicating the competitive
frame of reference
2. Choosing points of parity and points of
differences.
3. Establishing points of parity and points of
differences.
4. Updating positioning over time
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BRANDVALUES
Cores Brand Values
Set of abstract associations (Attributes and
benefits) that characterize the 5 to 10 most
important aspects or dimensions of a brand.
When you think of a brand, what comes to mind?
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BRAND MANTRAS
Brand Mantra
brand essence
Brand core promises
An articulation of heart and soul of the brand.
Short phrase that capture the essence or spirit ofthe brand positioning and brand values.
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AN EXAMPLE
ALOCAL (THAI) SOYMILK BRAND - VITAMILK
Core Brand Values
Soy-based
Quality
Healthy
Tasty
Safety
Filling
For everyone
Widely available anywhere anytime.
Brand MantraVitamilk is a tasty healthy drink.
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