Brand Mgt PDF
Transcript of Brand Mgt PDF
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Brand
A Brand is: name, term, sign, symbol, design, or combination of these.
Brand: derived from the old Norse wordbrandr which means to burn.
Brand Name Brand mark Trademark Copyright
Vocalized part of
the brand...
Tide, Avon, Chevrolet,
Disneyland,
AMEX
Symbol, design,
color, letters
Pillsbury doughboy,
MGM Lion,
K on Kodak box
Part of the brand
given legal
protection to
brand name
or brand mark
Legal right toreproduce,
publish and sell the
matter and form of a
literary musical or
artistic work
The process of branding encompasses all elements of the brand...
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Brand Introductions and Growth
The level of marketing effort supporting brand introduction depends on ...
Productquality
Growthrate of
themarket
Size of themarket
Low market
concentration
Firmfamiliarity
with themarket
Firmsresources
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Findings on Brand introductions
Managers should expect better results in terms of market share in markets where a
limited number of brands hold a large share which renders such market more
attractive to new brands
A new brand should be supported with a larger effort when introduce into a fast
growing market than when the market is mature
The amount of communication effort used to introduce a brand depends
on only one manufacturer characteristic--the availability of resources
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Why does branding become critical ?
Complex buyingbehaviour
Variety seekingbuying
behaviour
Dissonance reducing
buyingbehaviour
Habitual buying
behaviour
High
Involvement inpurchase Low
Consumer seesdifferences in
brands
Consumer does not
see differences inbrands
In which of these quadrants is branding most critical? And why?
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Branding and its economic sense
brands are created because buyers crave information. They see a huge
range of products that look the same and seem to perform similar . . .
. . . brands offer a route through the confusion. Economist,1994
Branding is manufacturer signaling which can create a separating
equilibrium
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Making marketing sense out of branding
Help Process / RetrieveInformation
Differentiate
Reason to buy
Basis for brandextensions
Summarize a set of facts/specifications that are difficult for the
customer to process/access, and expensive to communicate
Image differentiation
Generates confidence in the product attributes, customer benefits,
increases credibility & confidence
Generates more opportunities in other product categories through
brand extensions
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Strategic question in branding...
What does the consumer see as
the significance of brand?
Who should brand and own the brand?
Salience / strengths
of the brand
The reputation of the firm &Buyer image
The risk could be high price ,
product failure, lack of after sales etc.
What risks does the consumer see?
What information does the consumer
needs?
Reputation , past sales,comparative brand price
and service etc
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Webers law effect on brand awareness and effect of sound brands
JND for brand launch and building consumer acceptance
Weber's Lawstates that the stimulus change needed to reach the differential threshold
(produce a just noticeable difference) is a constantproportion of the starting stimulus
value for any brand to get noticed
Assume that through testing we found that;
1 ounce (ABSOLUTE STIMULUS = 1) had to be addedto a 10-ounce container of liquid soap (STARTINGvalue ~ 10)
before consumers detected a change in its weight.This would yield a constant of proportionality of
K= 1/10 = 0.1, allowing us to predict that:
(1) consumers will not detect a change in the weightof the larger 50-ounce economy bottle of the soapunless at least 5 ounces are added to or removed fromit or
(2) consumers will be able to detect a 3-poundaddition to a 20-pound portable television
Awareness
level
Stimulus weight
1 ounce.5 ounce
Stimulus gets noticed beyond 10%weight of starting value
Sub-optimalstimulus
generation
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How does the mechanics of branding work?
Involvementin thedecision
High
Low
Transactionalcompleteness
HighLow
Awareness
Interest
Desire
Action
A typical communication build up
Awareness is an Advertising basedactivity ...
however, branding focuses onbuilding Interest and Desire to try theproduct
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Strong brands v/s Weak brands
The level of memory recall
Memory
Top of the
mind
Aided recall for the brand
Unaided recall for thebrand
Memory of the brand drives purchase
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How culture values influence purchase decisions
Terminal values
Instrumental
values
Product
class choice
criteria
(criticalproduct
attributes)
Brand
choice
criteria
(critical
brandattributes)
Beliefs and
attitudes about
product class
Beliefs andattitudes about
brand class
Product class
selection
Brand class
selection
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Levels of brand exposure
GlobalNationalLocal / Regional
NamesNames
BrandsBrands
Power BrandsPower Brands
Brand power
Sustained effort will create not just names . . . but brands
Market presence
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Branding concepts - Identity and Image
- Image is on the receivers side.
- The image refers to the manner inwhich the public decodes all thesignals emitted by the brandthrough its products, services and
communication program
- It is a reception concept.
ImageIdentity
- Identity is on the senders side.
- The senders duty is to specify themeaning, intention and vocation of thebrand.
- In brand management terms identityprecedes image.
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BRANDS - Identity and Image
Brand Identity
Sending
Signals
Transmitted
Brand Image
Media Receiving
CompetitionandNoise
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Brand Types
item characterized by plain label, with noclear differentiation
e.g. Xerox, Bisleri
Genericproduct
brand name owned by a manufacturer or otherproducer
e.g. Coca Cola
Manufacturersbrand
brand name placed on products marketed bywholesalers & retailers
e.g. Stop garments from Shoppers Stop
Privatebrand
brand name that identifies several related productse.g. Kissan Anapurna atta , jams , biscuits etc..
(Food category)
Familybrand
unique brand name that identifies a specific offering
within a firms product line and that is not groupedunder a family brand
e.g. Dove soap from HLL
Individualbrand
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Brand power in degree
Brand recognition stage of brand acceptanceat which the consumer knows of a brand but does
not prefer it to competing brands
Brand preference stage of brandacceptance at which the consumer
selects one brand over competing offerings
based on previous experiences with
that brand
Brand insistence stage of brandwhere the customer refuses to
accept any other brand except
the preferred brand
Targetbuyers
(Buyers whostart preferring
a brand)
Targetbuyers
(Buyers whostart preferring
a brand)Brand
championsBrand
champions
Decreasing size of
the market
Marketuniverse
(All potential buyersof the product
Brand recognition
Brand preference
Brand insistence
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Creating Loyalty for the brand
Fence sitters/ neutrals
Passively loyal
Price switchers
Non-consumers
Committed
Varying degrees ofbrand loyalty
Frequent-Buyer Programs,
Customer Club, Database
marketing etc
Enhancing Loyalty
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The Hierarchy of effects model of advertising
Brand loyalty
Beliefreinforcement
Attitudereinforcement
Unawareness
Awareness
Expectations
Trials
Beliefs Attitudes
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Branding realities on loyalty
Managerial Implications Journal of Marketing, Volume 49, Winter 1985
A Brand seeking to improve market position needs to rely heavily oncustomer retention efforts while increasing share of users.
If only a smaller fraction of customers attracted are retained as loyalcustomers, allocation efforts are likely to be more even between
attraction and retention efforts
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Branding realities
Managerial Implications
For Brands with smaller user shares the retained fraction of new customershas to be higher, which necessitates more marketing effort in retention
Research show that large market share business have lower advertisingto sales ratio.
It also implies that as number of brands increases, loyalty levels declinesharply at first and then begin to level off
Journal of Marketing, Volume 49, Winter 1985
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Brand equity affects buyer behavior
Branddeserter
Brandchampion
Non TrierBrandapostle
Targetbuyer
Buys thebrand
Does not buythe brand
Recommends the brand to otherbuyers
YesNo
Strongest branding effects are seen in the brand apostle stage
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Brand Equity
Brand Equity is a set of assets (& liabilities) linked to the brand name & symbol that adds to
(or subtracts from) the value provided by a product
Brand Equity is a set of assets (& liabilities) linked to the brand name & symbol that adds to
(or subtracts from) the value provided by a product
Brand Equity is a set of assets,
thus management of
brand equity involves investment
to create and enlarge these assets
Brand Equity is a set of assets,
thus management of
brand equity involves investment
to create and enlarge these assets
Brand Equity adds value to the
consumer and the firm
Brand Equity adds value to the
consumer and the firm
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Consumer-Based Brand Equity Pyramid
Brand Salience
Consumer-Brand
Resonance
ConsumerJudgement
ConsumerFeelings
BrandPerformance
BrandImagery
4 Intense, Active Loyalty
1 Deep Broad Brand Awareness
2 Points of Difference
3 Positive Accessible Reactions
Co
nsu m
er
Ac
cep
tanc
eC
yc
le
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Consumer-Based Brand Equity Pyramid
Salience
Resonance
Judgement
Feelings
Performance Imagery
LoyaltyAttachment
Community
Engagement
Quality
Credibility
Consideration
Superiority
Warmth, Fun
Excitement,
Security, Social
Approval,
Self-Respect
4 Brand Relationships (WHATAbout You AND ME?)
1 Brand Identity (WHO Are You?)
2 Brand Meaning (WHAT Are You?)
3 Brand Response (WHAT AboutYou?)
User Profiles
Purchase and UsageSituations
Personality & Values
History, Heritage, &Experiences
Brand Characteristics& Secondary Features
Product Reliability,Durability & ServiceabilityService Effectiveness,Efficiency & EmpathyStyle and Design; Price
Category Identification
Needs Satisfied
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How does the brand relate to the customer?
Differentiation
Relevance
Esteem
Knowledge
How distinctive is the brand is in the market place?
Is it meaningful to him or her ? Is it personally appropriate ?
Is the brand held in high regard and considered the best in
its class?
Does the customer understand as to what a brand stands for?
Brand Power = Differentiation x Relevance X Esteem X Knowledge
Brand Equity elements : Luxury car - McKinsey & Co.
Origin
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Internalmakes me feel pampered
Externaltells others that I am
successful
Perceived value
very expensive, but worth it
What the
brand offers
Who the
brand is
OriginEuropean / Japanese
EvolutionWill become the leader in high-
performance machines
ReputationDesign and performance
Emotio
nalB
enefits
Pres
ence
ActivitiesSponsors premier racing
events
Presentation
has distinct logo incorporated intoselect design elements
(e.g.Wheels of the car)
IntangibleAss
ociations
Rational
benefits
Functional
easy in driving
ProcessDealer network that knows myprofile wherever I go(Toyota)
Relationship
Has related affinityprograms I like (Mercedes
Clubs)
Brand
benefits
Brand
identity
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The three variables in the brand anatomy (Young and Rubicam model)
Differentiation X Relevance
= Brand Strength.
>> If there is no point of
difference, a brands value will
be low.
>> Relevance comes next.
Unless a brand is relevant to a
significant segment, it will not
attract a large customer base.
Esteem X Knowledge
= Brand Stature.
>> Esteem combines perceived
quality with perceptions of a
growth or decline in popularity.
>> Knowledge indicates that
the customer not only is aware
of the brand but also
understands what the brand
stands for.
Comparing Esteem & Knowledge:
>> Some brands rank higher in
esteem than in knowledge. Thismeans relatively few people
understand what the brand stands for,
but those who do hold it in
high regard.
>> Conversely a brand may have high
knowledge but low esteem.This means
that more people know what the brand
stands for, but relatively few hold it in
high regard.
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The Y&R grid
Swatch watches
Disney
Sony
Starbucks coffee BayerOldsmobile
BrandDifferentiationand relevance
High
Low
Brand Stature (Knowledge andEsteem)
HighLow
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Inter brand (UK) valuation of brands
Leadership: A brand that leads its market sector is more stable and powerful than thesecond, third, & the fourth place brands
Stability: Long lived brands with identities that have become part of fabric of the market andeven the culture are particularly powerful and valuable
Market : Brands are more valuable when they are in markets with growing or stable sales levelsand a price structure in which successful firms can be profitable
International : Brands that are international are more valuable than national or regional brands,in part because of economies of scale
500 brands were evaluated under these criteria and rated for maximum value underthese criteria . . .
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Aakers Brand equity is based on understanding of the following critical areas ...
The amount a customer will
pay for the brand in
comparison with another
brand offering similar
or fewer benefits.
>> The price premium can
be determined by simply
asking customers how
much more they would
be willing to pay for the
brand
(This is called Dollar Metric)
Satisfaction (or liking)
is a direct measure
of how willing
customers are to
stick to a brand.
Price PremiumCustomer Satisfaction
/ Loyalty
Perceived Quality
directly affects both
ROI and Stock Return.
>> Perceived Quality
can be measured with
scales such as
following.a ) High quality v/s Shoddy quality.
b ) Best in category v/s Worst in category.
c ) Consistent quality v/s Inconsistent Quality
Perceived Quality
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Aakers Brand equity is based on understanding of the following critical areas ...
Leadership / Popularity
People want to be
apart of the
bandwagon and
are uneasy
against the flow
It reflects in part
the
number onesyndrome.
A brand canmove head
technologically
LG leader inPlasma TV
Brand Leadership has three key dimensions ...
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Aakers Brand equity is based on understanding of the following critical areas ...
Perceived value
Perceived value is mentioned along the followingdimensions ...
Whether the brand proves good value for the money
Whether there is a
reason to buy this
brand over others
Comparativelysuperior brands Winner brands
Loser brands Non differentiatedbrands
Yes
No
YesNo
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Aakers Brand equity is based on understanding of the following critical areas ...
Brand Personality provides
links to the brands emotional
and self expressive benefits
as well as a basis for
brand-customer relationship
and differentiation
Brand Personality Organizational Associations
This brand is made by anorganization I would trust
I admire the brand Xorganization
I would be proud (or pleased) to
do business with the brandTATAs as an organization
A k B d i i b d d di f h f ll i i i l
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Aakers Brand equity is based on understanding of the following critical areas ...
Brand Awareness
Awareness reflects the presence of the brand in the mind of Customers
Recognition: Have you heard of the Buick Roadmaster.
Recall: What brands of car can you recall ?
Graveyard statistics: recall level of those who recognize the brand.
How much do you recall? Fully or Partially.
Top-of-Mind : the first named brand in a recall task.
Brand dominance : the only brand recalled .
Brand Familiarity : the brand is familiar .
Brand knowledge or salience: you have an opinion about the brand .
A k B d it i b d d t di f th f ll i iti l
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Aakers Brand equity is based on understanding of the following critical areas ...
Major brands in the category
who have large equities
usually tend to have large
market shares
Market Share
Marketshare
Brand Equity
Market share = (Brand equity)
Market Price And Distribution Coverage:
Market share can be a particularly deceptive brand equity measure when it increases as a
result of reduced prices or price promotions.Thus it is important to measure the relative market price at which the brand is being sold.
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Brand Extensions and growth of the portfolio
Brand Extensions
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Brand Extensions
Products
Brands
Product Lineextensions
BrandExtensions
Multi brands Single brands
Existing New
Existing
New
The portfolio can leverage itself if it can extend the brand toother categories
Brand extensions are in the following categories
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Brand extensions are in the following categories...
BrandExtensions
Related category(Brand line extensions)
Pure BrandExtensions
Knorr is staple productfrom HLL
It is a mother brand in the
category that coversAtta, Soup etc..
Tatas leveraging theircorporate brand equityin Chemicals, Salt, Cars
etc..
Brand extensions represent an opportunity for firms to use the equity built up in thenames of existing brands in order to enhance marketing productivity
Impact of extensions on equity?
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Impact of extensions on equity?
Brand extensions can affect the brand and its equity in one of the three different ways:
Certain brands exploit the brand capital. The product sells thanks to the brands
contribution. This is the case when the concerned product scarcely differs from
existing market competition.
Certain extensions destroy the brands equity. If the new product introduced underan existing brand has no relationship with the core values of parent brand then the
brand equity can get eroded.
Certain extensions have a neutral effect. Here the brand simply falls in line with
what is expected of the brand.
How does the brand extension logic work ?
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How does the brand extension logic work ?
Category Based Affect Transfer
The affect associated with the parent brand is transferred to the brand extension only when
there is a fit between the parent and the extension categories.
Fit serves as a signal or cue that the consumers use to make inferences about a new product.
Attitude (Consumer opinion)towards the extension was higher when there was a fit between the
extension and the parent product classes along one of the dimensions
Transfer / Complementary products.
Category Based Affect Transfer
The affect associated with the parent brand is transferred to the brand extension only when
there is a fit between the parent and the extension categories.
Fit serves as a signal or cue that the consumers use to make inferences about a new product.
Attitude (Consumer opinion)towards the extension was higher when there was a fit between the
extension and the parent product classes along one of the dimensions
Transfer / Complementary products.
How does the brand extension logic work
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How does the brand extension logic work . . .
Extension evaluation was enhanced only when there was brand
concept consistency and product feature similarity between extension
and parent categories.
The prestige brand concept also seemed to have greater extendibility
to dissimilar product classes than functional brand concepts, when it
offered extensions consistent with its brand concept.
Brand has a positive impact on the success of an extension if the extension is in a similarproduct category.
Brand has a positive impact on the success of an extension if the extension is in a similarproduct category.
Effective
brand
extensions
Good to be early or better to be late ?
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There are several factors that can affect the brand extensions timing of entry decision.
Two reasons for brand extensions to enter late are
4the high-product failure rates in young markets will subject an extensions parent
brand to risk,
and
4extensions may have positioning difficulties in young markets.
Two reasons for brand extensions to extend early are
4the possibility of gaining early mover advantages, and
4the extensions known brand name may reduce the new products chance of failing.
The results indicate that early-entering brand extensions do not perform as well on average as
either early-entering new-name products or late-entering brand extensions.
Good to be early or better to be late ?
Good to be early or better to be late ?
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This conclusion is based on four findings.
1) the brand extensions were introduced later on average than the new-name products.
2) the early brand extensions had a lower probability of surviving than either the early-entering
new-name products orlate-entering brand extensions.
3) the brand extensions earned higher market shares on average than the new-name products,
4) the extensions obtained smaller market share from entering early than did new-name
products.
Good to be early or better to be late ?
The extensions of brandsMarket based possibilities
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Market based possibilities
Brand
extensions
Related(High Fit)
Unrelated(Low Fit)
Esteembrand
Averagebrand
Esteembrand
Averagebrand
Upwardextension
Downwardextension
Upwardextension
Downwardextension
Upwardextension
Downwardextension
Upwardextension
Downwardextension
Extensions aresuccessful
and unsuccessful inall categories
The Effects of Sequential Introduction of Brand Extensions
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The use of established brand names to enter new product categories or classes can substantially reduceintroductory marketing expenses and enhance the prospects of success by helping gain retailer andcustomer acceptance.
Dr Aaker & Dr. Keller on sequential entry
Study aimed at finding out : how is the knowledge about the core brand, and any previousextensionsand the perceptions
about the fit between those products and the proposed extensionsaffect the evaluation of the extensions
Findings:
High quality brands stretch farther than average quality brands.
Successful intervening extensions improved evaluations of a proposed extension for an average quality
core brand:
Unsuccessful intervening extensions decreased evaluations of a proposed extension for a high qualitycore brand.
A successful intervening extension increased evaluations of an average quality core brand, but an
unsuccessful intervening extension did not affect evaluation of the core brand.
Findings:
High quality brands stretch farther than average quality brands.
Successful intervening extensions improved evaluations of a proposed extension for an average quality
core brand:
Unsuccessful intervening extensions decreased evaluations of a proposed extension for a high qualitycore brand.
A successful intervening extension increased evaluations of an average quality core brand, but an
unsuccessful intervening extension did not affect evaluation of the core brand.
The Effects of Sequential Introduction of Brand Extensions
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Dr Aaker & Dr. Keller on sequential entry . ..
Findings
Perceived company credibility and fit appear to mediate the effects of intervening extensions onevaluations of a proposed extension.
The relative similarity of intervening extensions had little differential impact on evaluations of a
proposed extension.
Multiple intervening extensions can have different effects than a single intervening extension.
Intervening extensions of mixed success have effects more like those of a single failed intervening
extension than those of a single successful intervening extension.
An unsuccessful extension does not prevent the firm from backtracking.
Findings
Perceived company credibility and fit appear to mediate the effects of intervening extensions onevaluations of a proposed extension.
The relative similarity of intervening extensions had little differential impact on evaluations of a
proposed extension.
Multiple intervening extensions can have different effects than a single intervening extension.
Intervening extensions of mixed success have effects more like those of a single failed intervening
extension than those of a single successful intervening extension.
An unsuccessful extension does not prevent the firm from backtracking.
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Brand positioning and advertising thrust for share maintenance
BRANDS - Brand Positioning
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Brand Positioning applies to a process of emphasizing the brands distinctiveand motivating attributes in the light of competition.
It refers to what product segment does the brand belong and what is its specific
difference.
It is based on an analysis of response to the following 4 questions
Why?
When? Against Whom?
For Whom?
BRANDS - Brand Positioning
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g
1) Why or for what? What is the specific consumer benefit or exclusive
motivating attribute justifying the brand. e.g. Sony - Innovation
2) For Whom? This indicates a target. e.g.- 7 Up- Teenagers, Canada Dry-
Adults
3)When? Indicates the occasion on which to use the product. e.g. Titan as
gift.
4) Opposed to Whom? Points to the main competition, those brands from
one whom the one aspires to capture the clientele.
e.g.- Pepsi Challenge and the Uncola campaign- 7Up
SOV / SOM effect on branding strategy
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Competitors share
of Voice
Your share of
market
High
High
Low
Low
Find a defensible nicheand decrease
advertising for the brand
Increase advertising anddefend position for brand
Maintain modestadvertising premium tomaintain brand salience
Attack with large SOVpremium to generate
brand effects
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End of Current Deck