Brands & Brand Management (1)

2013 Syma Ahmed [email protected]

Brands & Branding

Syma Ahmed


A Brand at Its Most Basic Level

A name or some symbol or mark that is associated with a product or service and to which buyers attach psychological meanings (Tybout & Carpenter)


"A brand is a storehouse of trust that matters more and more as choices multiply. People want to simplify their lives."

- Niall Fitzgerald


What is a brand?

A distinctive name, logo, design, or symbol that identifies the goods, services, institution, or idea sold by a marketer and differentiates it from other products (AMA)

Product vs. Brand


Important Concepts

Branding

Product Brand

Brand Equity

Differential effect that brand knowledge has on consumer response to the marketing of the brand

Brand Management

Build, measure, manage brand equity


Top Global Brands of 2009

Ranking Brand Value (billions)

1 $68.7

2 $60.2

3 $56.6

4 $47.7

5 $34.8


Why are brands important?

Consumer Risk reducer

Search cost reducer

Promise with maker/producer

Symbolic device

Firm Source of competitive advantage

Source of higher financial returns


Strategic Origins of Brand Expressions

Essence

Vision

Persona

Value Proposition

Proof Points

Positioning

Brand Essence: The brandscore reason-for-being; its DNA; its heart and soulBrand Vision: What the brand hopes to becomeBrand Persona: (Character) The brands human-like traitsBrand Value Proposition: The value delivered that justifies its priceBrand Positioning: What the brand promises (benefits), in the mind of the customer, relative to competitionProof Points: Reasons to believe promise

Less likely to evolve

More likely to evolve


Creating Brand Meaning

Positioning The act of designing the companys offer and image so that it

occupies a distinct and valued place in the target consumers mind

Prerequisites for Positioning:

1. Target Market

2. Competitors

3. Points of Parity (POP)

4. Points of Differentiation (POD)

Competitive Frame

of Reference


Determining the Positioning Strategy

Identify the competitors

Determine how the competitors are perceived / evaluated

List of product associations

Determine the competitors positions

Multi - dimensional scaling & Perceptual map

Analyze the consumer

Motivations, habits, Behavior patterns


Perceptual map of retail banks


Perceptual Map of Car Market


Positioning Strategies

Aakers six approaches to positioning strategy include positioning by:

1. Attribute

2. Price-quality

3. Use or applications

4. Product-user

5. The product class

6. The competitor


Determining the Positioning Strategy

Making the positioning decision

Commit to a segment

Dont try to be something youre not

Dont change for the sake of it

Economic analysis

Monitor

Objective measures


CREATING DIFFERENTIATION IN THE PERSONAL CARE INDUSTRY


Dove Real Beauty Campaign


BRAND PERSONALITY

The big five


Sincerity Excitement Competence Sophistication Ruggedness

Down-to-earth Daring Reliable Upper-class Outdoorsy

Honest Spirited Intelligent Charming Tough

Wholesome Imaginative Successful Glamorous Masculine

Cheerful Up-to-date Secure Good looking

Corporate Smooth


Keeping a Brand Relevant


Using an Icon to Update a Brand

Portraits

of Betty

Crocker

Source: General Mills


Year Slogan


Managing Brand Equity


Branding

Means to distinguish the goods of one producer from those of another since long

Not only a sign added to products to differentiate them from competing products

A product is a physical entity made in the factory, whereas, a brand is a physiological entity made in our minds the function of which is to constantly produce meaning and values


BRAND EQUITY MEASURES


Aaker Keller Y&R Equitrend Interbrand

Associations x x

Awareness X x

Differentiation X x

Distribution coverage X

Leadership X xx

Market share X

Market trend x

Marketing support x

Perceived quality X x Xx

Perceived value X

Personality X x

Price premium Xx

Relevance x

User satisfaction/loyalty X x xx


Some Important ConceptsTerm What is this?

Brand awareness The ability for a buyer to recognize or recall that a brand is a member of a certain product category

Brand associations Anything linked in memory to a brand

Brand equity The added value a brand name brings to a product or service besides the functional benefits

Brand loyalty Tendency to be loyal to a brand, which is demonstrated by the intention to buy the brand as a primary choice

Perceived quality The consumers (subjective) judgment about a products overall excellence and superiority

WoM communication Oral, person-to-person communication between a perceived non-commercial communicator and a receiver regarding a brand, a product, or a service


CASE STUDY

Search Engines vs Portable Digital Media Players

Purpose Brands: Apple iPod & Google

Generic Brands: MSN Search, Excite, Creative Zen, Samsung Yepp


SamsungYepp

CreativeZen

Apple iPodExciteMSNSearch

Google

BID

5.00

4.00

3.00

2.00

1.00

0.00

Mean P

Q

Portable Digital MediaPlayer

Search Engine

BT

Perceived Quality across Product Categories


Brand Loyalty across Product Categories

SamsungYepp

CreativeZen


Google

BID

4.00

3.00

2.00

1.00

0.00

Mean B

L


Search Engine

BT


Brand Awareness/Associations across Product Categories

SamsungYepp

CreativeZen


Google

BID

5.00

4.00

3.00

2.00

1.00

0.00

Mean B

AA


Search Engine

BT


Purchase Intention

SamsungYepp

CreativeZen


Google

BID

5.00

4.00

3.00

2.00

1.00

0.00

Mean P

I


Search Engine

BT


Product Category Involvement

SamsungYepp

CreativeZen


Google

BID

4.00

3.00

2.00

1.00

0.00

Mean P

CI


Search Engine

BT


Attitude towards Brand

SamsungYepp

CreativeZen


Google

BID

4.00

3.00

2.00

1.00

0.00

Mean

AT

T


Search Engine

BT


Brand Experience

Experience happens when consumers

Search for products

Shop for products and receive service

Consume the products


This brand makes a strong impression on my senses Sensory

This brand is interesting in a sensory way

This brand does NOT appeal to my senses

This brand induces feelings and sentiments Affective

I do NOT have strong emotions for this brand

This brand is an emotional brand

I engage in physical actions when I use this brand Behavioral

This brand results in bodily experiences

This brand is NOT action oriented

I engage in a lot of thinking when i encounter this brand Intellectual

This brand does NOT make me think

This brand stimulates my curiosity & problem solving


Sensory

Affective

Intellectual

Behavioral

Sophistication Competence Excitement SincerityRuggedness

Brand Experience

Brand Personality

Satisfaction Loyalty


Brand Personality Dimensions

Sincerity down-to-earth, honest, wholesome, cheerful

e.g. Hallmark cards

Excitement daring, spirited, imaginative, up-to-datee.g. Apple, MTV channel

Competence reliable, intelligent, successfule.g. IBM, The Wall Street Journal

Sophistication upper-class, charming

e.g. Lexus, Guess Jeans

Ruggedness outdoorsy, toughe.g. Marlboro, Levis


Ten Attributes shared by the Worlds Strongest Brands

1. The brand excels at delivering the benefits that customers truly desire

2. The brand stays relevant

3. The pricing strategy is based on consumers perceptions of value

4. The brand is properly positioned

5. The brand is consistent

6. The brand portfolio and hierarchy makes sense


Ten Attributes shared by the Worlds Strongest Brands

7. The brand makes use of and coordinates a full repertoire of marketing activities to build equity

8. The brands managers understand what the brand means to consumers

9. The brand is given proper support, and that support is sustained over the long run

10.The company monitors sources of brand equity


Consumers on Strong BrandsMost Frequently Mentioned Strong Brands (In Order)

Consumer Verbatim: What Strong Brands Mean?

Apple Coca-Cola Microsoft GE AT&T Sony Target Verizon Nike Toyota Google Johnson & Johnson Starbucks American Express Disney

Taint-free reputation Instantly recognizable Cares about its reputation and consumers Products to back up the image Goes beyond the product Delivers what it promises Innovative, creative, user-friendly, stylish Clear identity & focus focused on doing

one or two things very well Excellent design

Consistency at every interaction, either in-store, online, or advertising

Satisfactory experience reinforced by advertising

Unified business model expressed through advertising, product placement, and product design


DISCUSSION

Brands & Brand Management (1)

Documents

Transcript of Brands & Brand Management (1)