BRAND MANAGEMENT

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What is a Brand?

A 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.

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New Branding Challenges

Brands are important as ever

◦ Consumer need for simplification

◦ Consumer need for risk reduction

Brand management is as difficult as ever

◦ Savvy consumers

◦ Increased competition

◦ Decreased effectiveness of traditional marketing tools and emergence of new marketing tools

◦ Complex brand and product portfolios

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The Customer/Brand Challenge

In this difficult environment, marketers must have a keen understanding of:

◦ customers

◦ brands

◦ the relationship between the two

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The Concept of Brand Equity

The brand equity concept stresses the importance of the brand in marketing strategies.

Brand equity 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.

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The Concept of Customer-Based Brand Equity

Customer-based brand equity

◦ Differential effect

◦ Customer brand knowledge

◦ Customer response to brand marketing

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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

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Building Customer-Based Brand Equity

Brand knowledge structures depend on . . .

◦ The initial choices for the brand elements

◦ The 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

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Benefits of Customer-Based Brand Equity

Enjoy greater brand loyalty, usage, and affinity

Command larger price premiums

Receive greater trade cooperation & support

Increase marketing communication effectiveness

Yield licensing opportunities

Support brand extensions.

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Customer-Based Brand Equity as a “Bridge”

Customer-based brand equity represents the “added value” endowed to a product as a result of past investments in the marketing of a brand.

Customer-based brand equity provides direction and focus to future marketing activities

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The Key to Branding

For branding strategies to be successful, consumers must be convinced that there are meaningful differences among brands in the product or service category.

Consumer must not think that all brands in the category are the same.

PERCEPTION = VALUE

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Brand Positioning

Brand Positioning

◦ Brand positioning is all about identifying the optimal location in our customers’ minds for our Brand and our competitors

◦ Proper positioning makes it easier to facilitate understanding of our Brand

Taken to its’ logical conclusion, you might think of the Principle as an indicator of a brand’s position

First Steps

The first step is to identify and establish Brand positioning and brand values

Positioning is the foundation for creating and fostering the desired knowledge and perceptions of your customers ---the 3 types of associations in memory-

◦ We can really only manage one (positive), can respond to a second (negative), and have no control over the third (idiosyncratic)

Proper Positioning

Proper positioning

◦ Clarifies what the Brand is all about

◦ How it is both unique and similar to competitive brands

◦ Why customers should purchase and use the Brand

Example- Monaco Smart Chips

“Not fried” First time in chips

Gap in the market today for a healthy and tasty snack

Targeted mainly towards health conscious urban youth

Reinforced by Amir Khan saying “you’ll need this” for an extra large t-shirt

In order to Position a Brand…

…you must decide

◦ Who the Target Consumer is

◦ Who your main competitors are

◦ How the Brand is similar to your competitors

◦ How the Brand is different from your competitors

Where do you get this information?

◦ Your BRAND INVENTORY!!

Target Market Segmentation

A market segment should have similar knowledge structures and brand knowledge

◦ Similar knowledge structures might mean similar perceptions and beliefs about your Brand

There are 2 ways to segment

◦ Descriptive: characteristics of the individuals in the market

◦ Behavioral: grouped by how individuals in the market perceive or use the product

Toothpaste Segmentation

Four main segments

Sensory segment

◦ Whiteness

Sociables

◦ Good breath

Worriers

◦ Decay Prevention

Independent

◦ Low Price 3 stripes, one for

each of the 3 main

segments

Good breath

Decay Prevention

Low Price

Target Market Segmentation

Which works better? Behavioral

◦ Easier to match perceptions (right/wrong) or beliefs (right/wrong) with strategy (reinforce/change).

◦ Many times, behavior and descriptive go hand in hand

Demographics may be basis of targeting, but tend to represent some underlying behavioral reason

◦ In some cases, demographics may mask underlying differences

Advantages of demographic segmentation

Demographic segmentation is well known, easier to buy media on that basis

However, with the emergence of non-traditional media, this advantage is getting smaller

◦ Web ads can target by demographics traditionally difficult to access

Working executives, College students

Criteria for a Segment

Identifiability

◦ Can the segment be easily identified?

Size

◦ It is big enough to bother?

Accessibility

◦ Are distribution outlets and media available to us to reach the segment?

Responsiveness

◦ How favorably will the segment respond to a tailored marketing program? (this one is tough to quantify)

The Competition

Market Segments define competitors

◦ They are targeting the same segments

Don’t be too narrow in your definition of competitors

Consider Sprite

◦ Product Type (non-cola soft drinks)

◦ Product Category (all soft drinks)

◦ Product Class (all beverages)

PepsiCo Competitive analysis

Part 3: POP and POD

POD (Point of Difference)

◦ Strong, favorable, unique brand associations

◦ May be any kind of attribute or benefit

Two types of PODs

◦ Attribute Based

Functional, performance related differences

◦ Image Based

Affective, experiential, brand image related

differences

Part 3: POP and POD

POP (Point of Parity)

◦ Associations that are shared with other brands

Two types

◦ Category: attributes that are required to include your product as a member of that category

◦ Competitive: POP that negate your competitors PODs

POPs can be “good enough”, but PODs should be “superior

Similar concepts

Unique Selling Proposition (USP; Reeves and Bates)

◦ Advertisers should give a compelling reason to buy a product that competitors could not match

What component of the Suzuki reflects this?

Sustainable Competitive Advantage (SCA)

The advantage of delivering superior value in the marketplace for a prolonged period of time

Further, SCAs can result from any component of the firm

Similar to notion that Principle exists in every part of the firm

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POP AND POD: BMW over the years

1971

1975

1985

1991

• International

• Desirability

• Fun to drive

• Economical

• Affluence, exclusivity

• Fun to drive

• Affluence, exclusivity

• Fun to drive

Strategic Brand Management

Strategic brand management involves the design and implementation of marketing programs and activities to build, measure, and manage brand equity.

The strategic brand management process is defined as involving four main steps:

1) Identifying and establishing brand positioning and values

2) Planning and implementing brand marketing programs

3) Measuring and interpreting brand performance

4) Growing and sustaining brand equity28

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Strategic Brand Management Process

Mental 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 revitalization

KEY CONCEPTSSTEPS

Grow and Sustain

Brand Equity

Identify and Establish

Brand Positioning and Values

Plan and Implement

Brand Marketing Programs

Measure and Interpret

Brand Performance

Motivation for Customer-Based Brand Equity Model

Marketers know strong brands are important but aren’t always sure how to build one.

CBBE model was designed to be …

◦ comprehensive

◦ cohesive

◦ well-grounded

◦ up-to-date

◦ actionable

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Rationale of Customer-Based Brand Equity Model

Basic premise: Power of a brand resides in the minds of customers

Challenge is to ensure customers have the right types of experiences with products & services and their marketing programs to create the right brand knowledge structures:

◦ Thoughts

◦ Feelings

◦ Images

◦ Perceptions

◦ Attitudes

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Building Customer-Based Brand Equity

Building a strong brand involves a series of steps as part of a “branding ladder”

A strong brand is also characterized by a logically constructed set of brand “building blocks.”

◦ Identifies areas of strength and weakness

◦ Provides guidance to marketing activities

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CUSTOMER-BASED BRAND EQUITY PYRAMID

RESONANCE

SALIENCE

JUDGMENTS FEELINGS

PERFORMANCE IMAGERY

4. RELATIONSHIPS =

What about you & me?

3. RESPONSE =

What about you?

2. MEANING =

What are you?

1. IDENTITY =

Who are you?

Salience Dimensions

Depth of brand awareness

◦ Ease of recognition & recall

◦ Strength & clarity of category membership

Breadth of brand awareness

◦ Purchase consideration

◦ Consumption consideration

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Performance Dimensions

Primary characteristics & supplementary features

Product reliability, durability, and serviceability

Service effectiveness, efficiency, and empathy

Style and design

Price

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Imagery Dimensions User profiles

◦ Demographic & psychographic characteristics

◦ Actual or aspirational

◦ Group perceptions -- popularity

Purchase & usage situations

◦ Type of channel, specific stores, ease of purchase

◦ Time (day, week, month, year, etc.), location, and context of usage

Personality & values

◦ Sincerity, excitement, competence, sophistication, & ruggedness

History, heritage, & experiences

◦ Nostalgia

◦ Memories36

Judgment Dimensions

Brand quality

◦ Value

◦ Satisfaction

Brand credibility

◦ Expertise

◦ Trustworthiness

◦ Likability

Brand consideration

◦ Relevance

Brand superiority

◦ Differentiation

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Feelings Dimensions

Warmth

Fun

Excitement

Security

Social approval

Self-respect

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Resonance Dimensions

Behavioral loyalty

◦ Frequency and amount of repeat purchases

Attitudinal attachment

◦ Love brand (favorite possessions; “a little pleasure”)

◦ Proud of brand

Sense of community

◦ Kinship

◦ Affiliation

Active engagement

◦ Seek information

◦ Join club

◦ Visit web site, chat rooms

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Customer-Based Brand Equity Model

Consumer-

Brand

Resonance

Brand Salience

Consumer

Judgments

Consumer

Feelings

Brand

Performance

Brand

Imagery

INTENSE, ACTIVE

LOYALTY

RATIONAL &

EMOTIONAL

REACTIONS

POINTS-OF-

PARITY &

POINTS-OF-

DIFFERENCE

DEEP, BROAD

BRAND

AWARENESS

Brand Positioning

Define competitive frame of reference

◦ Target market

◦ Nature of competition

Define desired brand knowledge structures

◦ Points-of-parity

necessary

competitive

◦ Points-of-difference

strong, favorable, and unique brand associations

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Issues in Implementing

Brand Positioning

Establishing Category Membership

Identifying & Choosing POP’s & POD’s

Communicating & Establishing POP’s & POD’s

Sustaining & Evolving POD’s & POP’s

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Establishing Category

Membership

Product descriptor

Exemplar comparisons

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Identifying & Choosing

POP’s & POD’s

Desirability criteria (consumer perspective)◦ Personally relevant

◦ Distinctive & superior

◦ Believable & credible

Deliverability criteria (firm perspective)◦ Feasible

◦ Profitable

◦ Pre-emptive, defensible & difficult to attack

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Major Challenges in

Positioning Find compelling & impactful points-

of-difference (MacMillan & McGrath, HBR, ‘97)◦ How do people become aware of their need for

your product and service?

◦ How do consumers find your offering?

◦ How do consumers make their final selection?

◦ How do consumers order and purchase your product or service?

◦ What happens when your product or service is delivered?

◦ How is your product installed?

◦ How is your product or service paid for?

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Major Challenges in

Positioning Find compelling & impactful points-

of-difference (cont.) ◦ How is your product stored?

◦ How is your product moved around?

◦ What is the consumer really using your product for?

◦ What do consumers need help with when they use your product?

◦ What about returns or exchanges?

◦ How is your product repaired or serviced?

◦ What happens when your product is disposed of or no longer used?

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Communicating & Establishing

POP’s & POD’s Create POP’s and POD’s in the face of

attribute & benefit trade-offs◦ Price & quality

◦ Convenience & quality

◦ Taste & low calories

◦ Efficacy & mildness

◦ Power & safety

◦ Ubiquity & prestige

◦ Comprehensiveness (variety) & simplicity

◦ Strength & refinement

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Strategies to Reconcile

Attribute & Benefit Trade-Offs

Establish separate marketing programs

Leverage secondary association (e.g., co-

brand)

Re-define the relationship from negative to

positive.

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Sustaining & Evolving

POP’s & POD’s

Core Brand Values &

Core Brand Proposition

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Core Brand Values

Set of abstract concepts or phrases that

characterize the 5-10 most important

dimensions of the mental map of a brand.

Relate to points-of-parity and points-of-

difference

Mental Map Core Brand Values Brand

Mantra

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Brand Mantras

A brand mantra is an articulation of the “heart and soul” of the brand.

◦ Brand mantras are short three to five word phrases that capture the irrefutable essence or spirit of the brand positioning and brand values.

Nike

◦ Authentic Athletic Performance

Disney

◦ Fun Family Entertainment

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Outline

The mandate for effectiveness

What makes an ad effective?

The world of advertising

The five players of advertising

The evolution of advertising

The Mandate for

Effectiveness

Today advertising is in a bind

Advertisers expect specific results that lead to sales

Advertising must be effective

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What Makes an Ad

Effective?Effective ads work on two levels:

with consumers and with advertisers

Characteristics of effective ads:

◦ Strategy

◦ -

◦ Execution

◦ Advertising must be goal directed

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The World of Advertising

Defining advertising

• A paid form of communication

• A sponsor is identified

• Tries to persuade or influence the

consumer to do something

• Conveyed through mass media

• Reaches a large audience

• Is nonpersonal

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Types of Advertising Brand advertising

Retail/local advertising

Political advertising

Directory advertising

Direct-response advertising

Business-to-business advertising

Institutional advertising

Public service advertising (PSA)

Interactive advertising

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The Roles of Advertising

Marketing role

Communication role

Economic role

Societal role

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Functions of Advertising

Provide product and brand

information

Provide incentives to take action

Provide reminders and reinforcement

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The Five Players of Advertising

Advertiser

Advertising agency

◦ The advertising department

◦ The in-house agency

Media

Vendors

Target audience

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The Evolution of Advertising

Age of print

Industrial revolution and emergence of consumer society

Modern advertising: Agencies, science and creativity

Accountability era

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Current Advertising Issues

Interactive advertising

Globalization

Niche marketing

Integrated marketing communications (IMC)

Consumer Power

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How Brands Work

Brand personalities

Branding

Trust

Brand image

Brand relationships

Brand equity

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Complex,

Varied

Marketing

Activity

Comprehensive,

Robust

Marketing

Measures

Detailed,

Rich

Marketing

Models

MARKETING PLANNING PROCESS

Role of Integrated Marketing

Communications

Marketing communications …

◦ are the “voice” of the brand and are a means by

which it can establish a dialogue and build

relationships with consumers.

◦ allow marketers to inform, persuade, incent,

and remind consumers directly or indirectly

◦ can contribute to brand equity by establishing

the brand in memory and linking strong,

favorable, and unique associations to it.

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Role of Integrated Marketing

Communications (Cont.)

◦ Consumers can be told or shown how and why a product is used, by what kind of person, and where and when;

◦ Consumers can learn about who makes the product and what the company and brand stand for

◦ Consumers be given an incentive or reward for trial or usage

◦ Brands can be linked to other … People

Places

Events

Brands

Experiences

Feelings

Things 67

Simple Test for

Marketing Communications

1. 3. 2.

Current Desired

Brand Brand

Knowledge Knowledge

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Integrated Marketing Communications

and Customer-Based Brand Equity

One implications of the CBBE framework is

that the manner in which brand

associations are formed does not matter --

only the resulting strength, favorability, and

uniqueness

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Designing Integrated Marketing

Communications Programs

From the perspective of customer-based brand

equity, marketers should evaluate all possible

communication options available to create

knowledge structures according to effectiveness

criteria as well as cost considerations.

Different communication options have different

strengths and can accomplish different

objectives.

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Alternative Communication Options

(Consumer)

Media Advertising (TV, radio, newspapers, magazines)

Direct Response Advertising

Interactive (on-line) Advertising & Web Sites

Outdoor Advertising (billboards, posters, cinema)

Point-of-Purchase Advertising

Trade Promotions

Consumer Promotions

Sponsorship of Event Marketing

Publicity or Public Relations

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Alternative Communication Options

(Business-to-Business)

Media Advertising (TV, radio, newspaper, magazines)

Trade Journal Advertising

Interactive (on-line) Advertising & Web Sites

Directories

Direct Mail

Brochures & Sales Literature

Audio-Visual Presentation Tapes

Giveaways

Sponsorship or Event Marketing

Exhibitions, Trade Shows, Conventions

Publicity or Public Relations

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Print Ad Evaluation Criteria

Is the message clear at a glance?

Is the benefit in the headline?

Does the illustration support the headline?

Does the first line of the copy support or

explain the headline and illustration?

Is the ad easy to read and follow?

Is the product easily identified?

Is the brand or sponsor clearly identified?

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Ad Campaign Considerations

Campaigns make brands -- not single ads

Be creative and develop creative themes

◦ Avoid slavishly sticking to executional formulas

Brand communications should sing like a choir

◦ Multiple voices

◦ Multiple notes

Find fresh consumer insights & compelling brand

truths

Productively conduct ad research

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IMC Case Study

CMPB Success Factors

Smart strategy

◦ Relative deprivation

Imaginative creative

◦ Funny but relevant

Clever hook

◦ “Got milk?” slogan

Timely secondary media

◦ In store

Right partners

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Common Mistakes in

Developing Advertising

Failure to distinguish ad positioning (what

you say) from ad creative (how you say it)

Mistaken assumptions about consumer

knowledge

Improperly positioned

Failure to break through the clutter

Distracting, overpowering creative in ads

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Common Mistakes in

Developing Advertising

(cont.)

Under-branded ads

Failure to use supporting media

Changing campaigns too frequently

Substituting ad frequency for ad quality

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Communication

Option A

Communication Option C

Communication

Option B

Audience Communication Option Overlap

Note: Circles represent the market segments reached by various communication options.

Shaded portions represent areas of overlap in communication options.

Evaluating IMC Programs

Coverage - what proportion of the target

audience is reached by each

communication option employed, as well as

how much overlap exists among options.

Cost - what is the per capita expense.

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Evaluating IMC Programs

(cont.) Contribution - the collective effect on

brand equity in terms of

◦ enhancing depth & breadth of awareness

◦ improving strength, favorability, & uniqueness of

brand associations

Commonality - the extent to which

information conveyed by different

communication options share meaning

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Evaluating IMC Programs (cont.)

Complementarity - the extent to which

different associations and linkages are

emphasized across communication options

Versatility - the extent to which information

contained in a communication option works

with different types of consumers Different communications history

Different market segments

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“Keller Be’s”

Be analytical: Use frameworks of consumer

behavior and managerial decision-making to

develop well-reasoned communication programs

Be curious: Fully understand consumers by using

all forms of research and always be thinking of how

you can create added value for consumers

Be single-minded: Focus message on well-

defined target markets (less can be more)

Be integrative: reinforce your message through

consistency and cuing across all communications

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“Keller Be’s”

Be creative: State your message in a unique fashion; use alternative promotions and media to create favorable, strong, and unique brand associations

Be observant: Monitor competition, customers, channel members, and employees through tracking studies

Be realistic: Understand the complexities involved in marketing communications

Be patient: Take a long-term view of communication effectiveness to build and manage brand equity

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THANK you

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