48990161 Strategic Brand Management Keller 1 Intro 0001
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STRATEGIC BRAND MANAGEMENTBUILDING, MEASURING, AND MANAGING BRAND EQUITY
Kevin Lane Keller
What is a Brand?American Marketing Associations definitionA brand is a name, term, sign, symbol, or design which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.Attributes that identify the brand are called Brand Elements (based on people, place, objects, animals, etc.) Practicing managers define brands as more than that. This distinction is important since it can lead to confusion.
What is a Brand?Brand versus Product
Product is anything that can be offered to a market for attention, acquisition, use or consumption that may satisfy a need or a want (goods, services, retail store, person, organization, idea)
Kotler defines 5 levels of a product1. 2. 3. 4. 5.
Core benefit level fundamental need or want that is satisfied Generic product level basic version attributes necessary for functioning (stripped down level) Expected product level what customers normally expect Augmented product level additional attributes, benefits that distinguish it from competition Potential product level all transformation that it might undergo in the future
What is a Brand?A Brand is therefore a Product that also has dimensions that differentiates it from other products designed to satisfy the same need (competition)
Differences may be Rational and tangible related to product performance (3M,Sony, Gillette)
Symbolic, emotional, intangible related to what the brand represents (Coca Cola, Calvin Kline, Marlboro)
What distinguishes a brand from a commodity gives it equity - the sum total of consumer perceptions and feelings about how it performs (3M, Sony, Gillette)
The name and what it stands for The company associated with the brand
New Concept of Brand Equity (BE)BE is defined differently by many but there is a point of consensus. It is agreed that BE relates to marketing effects that are uniquely attributable to the brand
BE concept in marketing - stresses the importance of the brand in marketing strategies.
BE relates to the fact that different outcomes result in the marketing of a product or service because of its brand name, as compared to if the same product or service did not have that name.
New Concept of Brand EquityThere is also agreement about - Branding is about creating differences Differences in outcome - arise from added value endowed to a product as a result of past marketing activities for the brand This value can be created for a brand in many ways Brand value can be exploited to benefit of the firm in many different ways BE provides the common denominator for interpreting marketing strategies and assessing the value of the brand
Why Brands Matters?Brand Value created translates to financial profits for the firm as: Creates perceived differences through branding Develops a loyal consumer franchise The brand is an intangible valued asset that needs to be handled carefully.
Why Brands Matter
Risk reducer Search cost reducer Signal of quality Symbolic device for self expression Promise, bond, pact, with maker of the product Means of identification of source of product for assignment of responsibility to product maker
Means of identification for handling, tracing Signal of quality level to satisfied customers Competitive advantage Financial return Legal protection of unique features
Why Brands Matter
It creates a relationship between brand and consumer
a bond / pact. trust and loyalty and in return . expect consistent product performance, appropriate price, distribution and other actions
Brands take on a special meaning and change the experience and perception of a product that leads to greater satisfaction Customers with past experience learn more about the brand The advantages
Lowers search cost internally and externally The value may not be only functional in nature They are symbolic devices allowing them to project their self image Extremely important with credence goods to signal quality Brands reduce risk particularly in BtoB settings
Benefits of Customer-Based Brand Equity
Branding is a powerful means of securing a competitive advantage
Brand experience can last for years and cannot be duplicatedEnjoy greater brand loyalty, usage, and affinity
Predictability and security of demandCommand larger price premiums on a regular basis, also during A&Ms
Creates entry barriers for othersReceive greater trade cooperation & support Increase marketing communication effectiveness Yield licensing opportunities Support brand extensions10
Anything Can Be BrandedBranding is possible for
B to B products High-tech products Services Retailers and Distributors Online products and services People and Organizations Sports Arts, Entertainment Geographic location Ideas and causes
Anything Can Be BrandedTo brand a product what needs to be done is Consumer has to be Taught to identify the brand label, name and other elements Learn the brand meaning - functional, emotional and symbolical Know the brand difference from other similar product brands (performance / image and nonproduct related considerations)
Commodities have been branded atta, salt
Determinants of Customer-Based Brand Equity
Customer is aware of and familiar with the brand Customer holds some strong, favorable, and unique brand associations in memory
The Concept of CBBE and Marketing
Customer-based brand equity - creates
Differential effect of brand because of Customer brand knowledgewhich generates Customer response to brand marketing
Brand Equity and Marketing Management
BE concept stresses - importance of the brand in marketing strategies BE is defined in terms of the marketing effects uniquely attributable to the brand.
Brand equity relates to the fact that different outcomes result in the marketing of a product or service because of its brand name, as compared to if the same product or service did not have that name.
Building Customer-Based Brand Equity
Brand knowledge structures depend on . . .
The initial choices for the brand elementsThe supporting marketing program and the manner by which the brand is integrated into it Other associations indirectly transferred to the brand by linking it to some other entities
The Key to Successful BrandingFor branding strategies to be successful Consumers must be convinced that there are meaningful differences among brands
Consumer must not think that all brands in the category are the same.
PERCEPTION = VALUE
Customer-Based Brand Equity as a Bridge
CBBE represents the added value endowed to a product as a result of past investments in the marketing of a brand. CBBE therfore provides direction and focus to future marketing activities
Strategic Brand Management
Strategic brand management involves design and implementation of marketing programs and activities to build, measure, manage BE
Strategic brand management process involves four main steps:1) 2) 3) 4) Identify and establish brand positioning and values Plan and implement brand marketing programs Measure and interpret brand performance Grow and sustain BE
Strategic Brand Management ProcessSTEPSIdentify and Establish Brand Positioning and Values
KEY CONCEPTSMental maps Competitive frame of reference Points-of-parity and points-of-difference Core brand values Brand mantra Mixing and matching of brand elements Integrating brand marketing activities Leveraging of secondary associations Brand Value Chain Brand audits Brand tracking Brand equity management system Brand-product matrix Brand portfolios and hierarchies Brand expansion strategies Brand reinforcement and revitalization20
Plan and Implement Brand Marketing Programs
Measure and Interpret Brand Performance
Grow and Sustain Brand Equity
New Branding Challenges
Brands are important as ever
Consumer need for simplification Consumer need for risk reduction Savvy consumers Increased competition Decreased effectiveness of traditional marketing tools and emergence of new marketing tools Complex brand and product portfolios
Brand management is as difficult as ever
The Customer/Brand Challenge
In this difficult environment, marketers must have a keen understanding of:
customers brands the relationship between the two