Choosing Brand elements to build Brand equity

&Designing Marketing Programs to build

Brand Equity

Presented byOmkar

Pimpalkute

Learning Outcome

• How a brand’s identity is created

• How to choose brand elements

• How to optimize the marketing mix to build brand equity

• Understand 4P’s from the perspective of brand equity & effect of marketing mix actions on brand knowledge structures

“Isko laga dala toh life jingalala”

What is Brand element

• Brand elements are those trademarkable devices that serve to identify and differentiate the brand from others

• Brand elements are also known as brand identities

• Brand elements contributes positively in building brand equity

CRITERIA FOR CHOOSING BRAND ELEMENTS

OFFENSIVE DEFENSIVEMemorable Transferable

Meaningful Adaptable

Likable Protectable

Memorable

How easily do consumers recall and recognize the brand element, and when—at both purchase and consumption?A necessary condition for building brand equity is achieving a high level of brand awareness

MeaningfulnessBrand elements may have descriptive or persuasive meaning

Two important criteria that brand element should convey: 1. General information about the function of the product or service2. Specific information about particular attributes and benefits of

the brand Eg:

The first dimension is an important determinant of brand awareness and salience; the second, of brand image and positioning

Likability

Marketers need to check :-

Do customers find the brand element aesthetically appealing ?Is it likable visually, verbally, and in other ways?

The less concrete the possible product benefits are, the more important is the creative potential of the brand name and other brand elements to capture intangible characteristics of a brand

Transferability

How useful is the brand element for line or category extensions?In general, the less specific the name, the more easily it can be transferred across categories

To what extent does the brand element add to brand equity across geographic boundaries and market segments?Vicks introduced its cough drops into the German market without realizing that the German pronunciation of "v" is "f" making "Vicks" slang for sexual intercourse

AdaptabilityThe more adaptable and flexible the brand element, the easier it is to update it to changes in consumer values and opinions

For example: logos and characters

Counterfeit Business

Counterfeit products are fake replicas of the real productCounterfeit products are often produced with the intent to take advantage of the superior value of the imitated product

Protectability

Marketers should• Choose brand elements that can be legally

protected internationally• Formally register them with the appropriate legal

bodies

If a name, package, or other attribute is too easily copied, much of the uniqueness of the brand may disappear

OPTIONS AND TACTICS FOR BRAND ELEMENTS

Brand Names URLs Logos and Symbols Characters Slogans Jingles Packaging

Brand Names A brand name would be easily remembered, highly suggestive of both the product class and the

particular benefits that served as the basis of its positioning, rich with creative potential, transferable to a wide variety of product and

geographic settings, enduring in meaning and relevant over time, and strongly protectable both legally and

competitively

Importance of BRAND NAME

• Often captures the central theme • Key associations of a product in a very compact

and economical fashion

• Extremely effective means of communication

• Register its meaning or activate it in memory in just a few seconds

Naming Guideline

• Brand Awareness : Brand names should be simple and easy to pronounce or spell, familiar & meaningful, different, distinctive, unusual

• Simplicity and Ease of Pronunciation and Spelling: Simplicity reduces the effort consumers process the brand name

Short names facilitate recall because they are easy to encode and store in memory

Naming Guideline• Familiarity and Meaningfulness : The brand name

should be familiar and meaningful so it can tap into existing knowledge structures

• Differentiated, Distinctive and Unique : The recognition depends on consumers’ ability to discriminate between brands

• Brand Associations : The brand name can be chosen to reinforce an important attribute or benefit association that makes up its product positioning

Naming Procedure

1. Define objectives

• Define the ideal meaning the brand should convey

• Recognize the role of the brand within the corporate branding hierarchy

• How it should relate to other brands and products

Naming Procedure

2.Generate names

• Generate as many names and concepts as possible

• Sources of names are valid: company management and employees; existing or potential ad agencies, professional name consultants

• Tens, hundreds, or even thousands of names may result from this step

Naming Procedure3.Screen initial candidatesScreen all the names against the branding objectives

and marketing considerations Start by eliminating the following: • Names that have unintentional double meaning • Names that are unpronounceable, already in use, or too close to an existing name • Names that have obvious legal complications • Names that represent an obvious contradiction of the positioning

Naming Procedure

4. Study candidate names

• Collect more extensive information about each of the final 5–10 names

• This step is expensive, marketers often search on a sequential basis testing

Naming Procedure

5. Research the final candidates

• Conduct consumer research to confirm management expectations about the recall and meaningfulness of the remaining names

• Marketers may survey many consumers to capture differences in opinion

Naming Procedure

6. Select the final name

• Based on all the information collected from the previous step, management should choose the name that maximizes the firm’s branding and marketing objectives and then formally register it

Uniform Resource Locators (URL’s)

• Also known as domain names

• Anyone wishing to own a specific URL must register and pay for the name

• As the world is going tech-savvy the number of registered URLs increased dramatically

• A company can sue the current owner of the URL for copyright infringement

Logos & Symbols

• Visual elements play a critical role in building brand equity & brand awareness

• Logos have a long history as a means to indicate origin, ownership, or association

• Logos range from corporate names or trademarks

(word marks with text only) written in a distinctive form

Benefits of Logo & Symbol

• Easily recognized and can be a valuable way to identify products

• Versatile because they are often nonverbal, logos transfer well across cultures & over a range of product categories

• Identification of the company

Characters

• Characters represent a special type of brand symbol—one that takes on human or real-life characteristics

• They are introduced through advertising

• can play a central role in ad campaigns and package designs

• Some are animated characters like the Pillsbury Doughboy, Ronald McDonald

Benefits of Characters

• Colorful and rich in imagery

• Tend to grab attention and useful in creating brand awareness

• Help to brands break through marketplace clutter as well as communicate a key product benefit

• The human element of brand characters can enhance likeability and help create perceptions of the brand as fun and interesting

Slogans• Short phrases that communicate descriptive or persuasive

information about the brand

• Play an important role on packaging

• Powerful branding devices as they help to build brand equity

• Function as useful “hooks” or “handles” to help consumers grasp the meaning of a brand—what it is and what makes it special

• Summarize and translate the aim of a marketing program in a few short words or phrases

Benefits of Slogans

• Help build brand awareness

• Making strong links between the brand and the corresponding product category

• Reinforce the brand positioning

Designing Slogans

• Interpreted in terms of product performance

• Superior product performance + aspiration user imagery = powerful platform to build brand image and equity

Updating Slogans

While changing the slogan, they must do the following:

1. Recognize how the slogan is contributing to brand equity

2. Decide how much of this equity enhancement is still needed

3. Retain the needed or desired equities

Jingles

• Jingles as extended musical slogans.• Musical messages written around the brand.• Permanently registered in the minds of

listeners.• Most valuable in enhancing brand awareness.• Consumers are also likely to mentally rehearse

or repeat catchy jingles after the ad is over.• This creates brand recall.

..Recap

How a brand’s identity is createdCriteria – Memorable, Meaningful, Likable, Transferable, Adaptable, Protectable

How to choose brand elementsBrand Names, URLs, Logos and Symbols, Characters, Slogans, Jingles , Packaging

Now..How to optimize the marketing mix to build brand equity

Understand 4P’s from the perspective of brand equity & effect of marketing mix actions on brand knowledge structures

What Is Packaging?

• Packaging is the activities of designing and producing containers or wrappers for a product

• Product packaging is considered as the ultimate opportunity for marketers to communicate the brand’s message visually, positioning the same as a better choice than any of its competitor

Benefits of Packaging

• Brand Association

• Provide Information

• Attract Customers

• Protect Products

Objectives of Packaging

• Identify the brand

• Convey descriptive and persuasive information

• Facilitate product transportation and protection

• Assist in at-home storage

• Aid product consumption

Packaging discourages shoplifting

packaging are excessively large compared to the size of the actual product in order to make their theft easier to notice

Packaging at the Point of Purchase

Why Packaging matters

Packaging Innovations

Why Packaging Changes

• To signal a higher price• When a significant product line expansion would

benefit from a common look• To accompany a new product innovation to signal

changes to consumers• When the old package just looks outdated

Psychology Of Packaging

• Packaging can influence taste

• Packaging can influence value

• Packaging can influence consumption

• Packaging can influence how a person uses a product

Packaging can influence taste

Packaging can influence value

Packaging can influence how a person uses a product

Designing Marketing Programs to Build Brand Equity

New Perspective on Marketing

• Digitalization and connectivity(internet, mobile devices)

• Disintermediation and reintermediation (middlemen)• Customization and custormerization (providing

customers ingredients to make their own product)• Industry convergence (blurring of industry

boundaries)• New customer and company capabilities

Personalizing marketing

• Experiential marketing• One-to-one marketing• Permission marketing

Experiential MarketingConsumers are far more likely to choose brands

with whom they’ve had a positive, real-life experience.

“The idea is not to sell something, but to demonstrate how a brand can enrich a customer’s

life”

One-to-one Marketing

One-to-one Marketing

• The Fundamental Strategies of One-to-One Marketing:

• - Focus on individual consumers through consumer databases

• - Respond to consumer dialogue via interactivity

• - Customize products and services

Permission Marketing

Permission Marketing

Permission marketing is the practice of marketing to consumers only after gaining their express permission

Product Strategy

• Designing and delivering a product or service that fully satisfies consumer needs and wants

• To create brand loyalty

Perceived Quality and Value• Perceived quality is the customers perception of the

quality of the product or service• General dimensions of product quality:PerformanceFeaturesConformance qualityReliabilityDurabilityServiceabilityStyle and design

Brand Intangibles

• Product quality depends on functional product performance as well as other broader performance considerations

• Brand attitudes not necessarily depend on product performance

• Consumer evaluation may not correspond to perceived quality of the product

• Marketers must take a broad, holistic approach to building brand equity

Total quality management

• Importance of product quality• Concepts- QFD and TQM• Increase in cost to maintain quality

Return on quality

• Improve quality on dimensions-tangible customer benefits, lower costs or increased sales

• Produces quality which consumers actually want

Value chain

• Strategic tool for identifying ways to create more customer value

• Primary Value creating activities-inbound logistics, operations, outbound logistics, marketing and sales, and services

• Support activities-firm infrastructure, human resource management, technology development, and procurement

• Competitive advantage can be achieved by improving performance and reducing costs

• Partnering with other members of value chain

What is channel strategy ?

Marketing channels are defined as “sets of interdependent organizations involved in the process of making a product or service available for use or consumption.”

Producer

Channel

Customer

Channel Design

DESIGN CHANNEL CAN BE CLASSIFIED INTO TWO CATEGORIES:

INDIRECT CHANNELS:

Indirect channels sell through third-party intermediaries such as agents or broker representatives, wholesalers or distributors, and retailers or dealers

Push and Pull Strategies

•Push Strategy:“Taking the product to the customer”

•Pull Strategy:"Getting the customer to come to you"

Push and Pull Strategies

Channel support

Firms are increasingly providing some of the services themselves through toll-free numbers and Web sites, establishing a “marketing partnership” with retailers may nevertheless be critical to ensuring proper channel support and the execution of these various services

DIRECT CHANNELS

DIRECT CHANNEL:

Direct channels mean selling through personal contacts from the company to prospective customers by mail, phone, electronic means, in-person visits

Company Owned Stores

To gain control over the selling process and build stronger relationships with customers, some manufacturers are introducing their own retail outlets, as well as selling their product directly to customers through various means

Store-Within-a-Store

Attempting to create their own shops within major department stores

WEB STRATEGIES

One lesson from the dot-com boom and bust is the advantage of having both a physical channel as well as virtual,online retail channel.

Advantage for multichannel retailers-• They have market clout with suppliers.• They have established distribution and fulfillment

systems.• They can cross sell between Web sites and stores.

HYBRID CHANNEL