Building brand equity

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1. 12/18/1412/18/14 11 Building Brand EquityBuilding Brand Equity Management Retreat Presentation byManagement Retreat Presentation by Ademola Akinbola, Head, CorporateAdemola Akinbola, Head, Corporate Communication & Business Development,Communication & Business Development, Nigerian Aviation Handling Company PLC,Nigerian Aviation Handling Company PLC, Lagos.Lagos. May 31, 2008.May 31, 2008. 2. 12/18/1412/18/14 22 TESTIMONIESTESTIMONIES You wont find it on the balanceYou wont find it on the balance sheet. If you ask the wizards onsheet. If you ask the wizards on Wall Street exactly how it figuresWall Street exactly how it figures into a companys net worth, beinto a companys net worth, be prepared for some mighty blankprepared for some mighty blank stares.stares. But more and more companies areBut more and more companies are now coming to realise that whennow coming to realise that when managed correctly, a good namemanaged correctly, a good name can be their most VALUABLE andcan be their most VALUABLE and ENDURING asset.ENDURING asset. Fortune MagazineFortune Magazine 3. 12/18/1412/18/14 33 TestimoniesTestimonies The marketing battle is a battle of brands, aThe marketing battle is a battle of brands, a competition for brand dominance. Businessecompetition for brand dominance. Businesse now recognize their brands as their mostnow recognize their brands as their most valuable assets.valuable assets. It will be more important to own markets thIt will be more important to own markets th to own factories. The only way to own markto own factories. The only way to own mark is to own market-dominant brands.is to own market-dominant brands. 4. 12/18/1412/18/14 44 Perspectives on Brands (1)Perspectives on Brands (1) . . . Traditional Assumptions. . . Traditional Assumptions Vision/mission statements and corporateVision/mission statements and corporate values are usually regarded as puffery.values are usually regarded as puffery. Different departments and branches of theDifferent departments and branches of the same Company can communicate differentlysame Company can communicate differently with customers without consideration for thewith customers without consideration for the organisation as a whole.organisation as a whole. We can stand for one thing with customers,We can stand for one thing with customers, another with employees and yet another withanother with employees and yet another with investors.investors. 5. 12/18/1412/18/14 55 Perspectives on Brands (2)Perspectives on Brands (2) . . . We are in this together. . . We are in this together The Brand is the soul of the organisation. Understanding its core values becomes the responsibility of everyone; from the Human Capital Managerwho is recruiting new talents, to the CustomerService Managerwho Is the direct linkto the customer, to the ICT Managerwho is managing service automation. Branding is not a function performed by one Department. All Departments must be brand-focused in every aspect of theiroperations. 6. 12/18/1412/18/14 66 Perspectives on Brands (3)Perspectives on Brands (3) . . . the Important Asset. . . the Important Asset In the highly competitive aviation servicesIn the highly competitive aviation services market place, our brand is one of ourmarket place, our brand is one of our valuable assets. In order for us to survivevaluable assets. In order for us to survive and grow, this brand must be consciouslyand grow, this brand must be consciously built, dutifully nurtured and properlybuilt, dutifully nurtured and properly managed.managed. To succeed, an organisation must positionTo succeed, an organisation must position itself not only for operational excellence, butitself not only for operational excellence, but also distinguish itself by being seen to bealso distinguish itself by being seen to be better from its competitors, the very essencebetter from its competitors, the very essence of branding. The key issue then is notof branding. The key issue then is not whether to create a brand but how towhether to create a brand but how to manage it.manage it. 7. 12/18/1412/18/14 77 Perspectives on Brands (4)Perspectives on Brands (4) . . . the Cutting Edge. . . the Cutting Edge A companys brand is the primary source ofA companys brand is the primary source of its competitive advantage and a valuableits competitive advantage and a valuable strategic asset. It is suggested that astrategic asset. It is suggested that a company should consider its brand as notcompany should consider its brand as not just a product or service, but as anjust a product or service, but as an Organisation, a person, and a symbol.Organisation, a person, and a symbol. A brand is not built overnight. Success isA brand is not built overnight. Success is measured in decades, not years. What worksmeasured in decades, not years. What works best is absolute consistency over anbest is absolute consistency over an extended period of time.extended period of time. (Al & Laura Ries,(Al & Laura Ries, 22laws of branding22laws of branding 8. 12/18/1412/18/14 88 What Is a Brand ? (1)What Is a Brand ? (1) Brands are images and impressions generated aboutBrands are images and impressions generated about companies or products that become intangible andcompanies or products that become intangible and dynamic assets (or liabilities). Brands include names,dynamic assets (or liabilities). Brands include names, symbols, perception of stakeholders and the public insymbols, perception of stakeholders and the public in general.general. A brand is an integrated promise shaped by both theA brand is an integrated promise shaped by both the Organisations claims and the experience of itsOrganisations claims and the experience of its stakeholders. The worth of A brand is said to be thestakeholders. The worth of A brand is said to be the degree to which it can provide competitive advantagedegree to which it can provide competitive advantage in the market place.in the market place. 9. 12/18/1412/18/14 99 What Is a Brand ? (2)What Is a Brand ? (2) In broad terms, a brand can be equated withIn broad terms, a brand can be equated with reputation. The brand of a bank and the reputation ofreputation. The brand of a bank and the reputation of an individual are similar in terms of how they canan individual are similar in terms of how they can change, as well as their importance.change, as well as their importance. .. An organisations brand is a key asset because itAn organisations brand is a key asset because it creates possibilities and sets limits in terms of whatcreates possibilities and sets limits in terms of what employees, customers and investors expect from thatemployees, customers and investors expect from that company. company. 10. 12/18/1412/18/14 1010 What Is a Brand ? (3)What Is a Brand ? (3) A promise and its delivery create aA promise and its delivery create a reputation or brand image. Likereputation or brand image. Like reputation, branding is not optional.reputation, branding is not optional. Constituent publics will form theirConstituent publics will form their own perceptions, and theseown perceptions, and these perceptions are more important thanperceptions are more important than products or services in the marketproducts or services in the market place.place. 11. 12/18/1412/18/14 1111 What is a Brand ? (4)What is a Brand ? (4) Branding cannot succeed if it stopsBranding cannot succeed if it stops at the point of making a promise or isat the point of making a promise or is viewed as advertising. If branding isviewed as advertising. If branding is not part of the daily decision makingnot part of the daily decision making at all levels of the organisation, it willat all levels of the organisation, it will be sidelined by short-term financialbe sidelined by short-term financial goals.goals. 12. 12/18/1412/18/14 1212 How Brands Are BuiltHow Brands Are Built Traditionally, brands have been considered to be aTraditionally, brands have been considered to be a function of advertising and other communicationfunction of advertising and other communication efforts. However, this is no longer tenable. Theefforts. However, this is no longer tenable. The perceptions of the public about an organisation areperceptions of the public about an organisation are not shaped alone by what the company says aboutnot shaped alone by what the company says about itself through its communication.itself through its communication. Customers experiences in the banking hall, internalCustomers experiences in the banking hall, internal service quality, the work environment, operatingservice quality, the work environment, operating performance, employees perceptions, etc, affectperformance, employees perceptions, etc, affect how stakeholders view the brand.how stakeholders view the brand. 13. 12/18/1412/18/14 1313 How Brands Are Built (2)How Brands Are Built (2) The re fo re , the re m ust be harm o nyThe re fo re , the re m ust be harm o ny be twe e n custo m e rs, e m plo ye e s, andbe twe e n custo m e rs, e m plo ye e s, and inve sto rs pe rce ptio ns o f theinve sto rs pe rce ptio ns o f the co m pany.co m pany. If any o f the thre e co nstitue nt units isIf any o f the thre e co nstitue nt units is dis-satisfie d, it will filte r thro ug h todis-satisfie d, it will filte r thro ug h to the o the r.the o the r. 14. 12/18/1412/18/14 1414 Key Brand DriversKey Brand Drivers Emotional appealEmotional appeal (natural likeness,(natural likeness, trust, respect)trust, respect) Leadership & visionLeadership & vision ((inspirational,inspirational, honest, focused, stable)honest, focused, stable) Products & servicesProducts & services (value adding,(value adding, innovative)innovative) Workplace environmentWorkplace environment (well(well managed, appealing)managed, appealing) 15. 12/18/1412/18/14 1515 Key Brand Drivers (