Chapter 1 (introduction to strategic brand management)
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Transcript of Chapter 1 (introduction to strategic brand management)
Introduction to Strategic Brand Management
Adriana Lima – Brazilian Model
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• A brand is a “name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition.”
• Branding has been around for centuries as a mean to distinguish the goods of one producer from another
• The word BRAND is derived from the Old Norse word brandr, which means “To Burn”
• The simplest definition is , branding is all about naming a commodity
• These different components of a brand that identify and differentiate it are brand elements.
.In the beginning of mankind
Products were pretty much the same
Trade kept in family
Choice was easy
.
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Brands are much more than logos
. Create in the mind of the prospect the
PERCEPTION
that there’s no other product or service
quite like this Branded One!
Abundance of choices Being distinctive is the way potential
users will decide whom to do business with
When We build a brand
We Create a better perception in the mind.
• Not in the mind of the Company• Not in the mind of the CEO
But in the mind of the Customers!
. Just a logo/catchy slogan A little Advertising Having attractive stationery or
letterhead
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Harley Davidson American by Birth. Rebel by Choice
Porsche There is no substitute.
Aston Martin Power, beauty and soul.
Walmart Save Money. Live Better.
Reebok I am what I am.
Calvin Klein Between love and madness lies obsession
Tag Heuer Success. It’s a mind game
Levis Quality never goes out of style
3M Innovation
Sony Make Believe
Energizer Keeps going and going and going
PlayStation Live in your World. Play in ours.
Nikon At the Heart of the Image
Kodak Share moments. Share Life
Olympus Your Vision. Our Future
Hallmark When you care enough to send the very best.
McDonalds I’m Loving it
KFC Finger Lickin’ good
Burger King Have it your way
M&Ms Melts in your mouth, not in your hands.
Nokia Connecting People
Coca Cola Open Happiness
Nike Just do it
People overwhelmed by available choices
Human attention is a major business currency
Interest in, and loyalty to, brands that
don’t “touch them” fall off the choice chart.
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• A product is anything we can offer to a market for attention, acquisition, use, or consumption that might satisfy a need or want.
• A product may be a physical good, a service, a retail outlet, a person, an organization, a place, or even an idea.
A brand is therefore more than a product, as it can have dimensions that differentiate it in some way from other products designed to satisfy the same need.
Some brands create competitive advantages with product performance; other brands create competitive advantages through non-product-related means.
Brand versus Product
5 Levels of a Product
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Product form Features Customization Performance Conformance Durability Reliability Repairability Style
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Ordering ease Delivery Installation Customer training Customer
consulting Maintenance and
repair Returns
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Consumer Identification of source of product Assignment of responsibility to product maker Risk reducer Search cost reducer Promise, bond or pact with maker of product Symbolic device Signal of quality
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1. Performance risk2. Functional risk3. Physical risk4. Financial risk5. Social risk6. Psychological risk7. Time risk
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Manufacturer Means of identification to simplify handling or tracing Means of legally protecting unique features signal of quality level to satisfied customers Means of endowing products with unique association Source of competitive advantage Source of financial returns
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Physical goods Pharmaceuticals FMCG Industrial All B2B products High tech products
Services Airlines- British Airways Hotels – Hilton Banking – HSBC Hospitals – South City And many more
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Retailers and Distributors Agha’s, Farid’s, Paradise, Naheed
Online products and services Homeshopping.pk, daraz.com.pk
People and Organization Shan, Zubaida Apa
Sports, Arts and entertainment Cricket, foot ball, Movies and Dramas
Geographic locations Gilgit, Swat
Ideas and causes – Aids ribbons
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Savvy customers More complex brand families and portfolios Maturing markets More sophisticated and increasing competition Difficult in differentiating Decreasing brand loyalty in many categories Growth of private labels Increasing trade power Fragmenting media coverage Eroding traditional media effectiveness Emerging new communication options Increasing promotional expenditure Decreasing advertising expenditures Increasing cost of product introduction and support Short term performance orientation Increasing job turnover
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Cost Clutter Fragmentation Technology
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One of the important in the branding environment is the proliferation of new brands and products
One of the main reason is the line extensions
There for brand name may now be indentified with a number of different products with varying degree of similarity
E.g.: Coke, Nivea, Pantene, Lux,, etc.
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Identifying and establishing brand positioning Planning and implementing brand marketing
program Measuring and interpreting brand performance Growing and sustaining brand equity
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Mental maps – this is a visual depiction of the different types of associations linked to the brand in the mind of consumer(Land Rover)
Core brand association – these are that subset of associations(attributes and benefits) that best characterize a brand (Toyota)
Brand mantra- this is know as brand essence or core brand promise (we deliver anything- DHL)
Competitive frame of difference- how u crate the brand value and brand positioning differently to the competition (HSBC)
Points of parity and points of difference – creating brand superiority in mind of consumers of advantages or point of difference a brand offers, while at alleviating concerns about and possible disadvantages of using competitor products ( Pharmaceuticals)
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Mixing and matching branding elements- brand logos, , brand names, symbols, characters, packaging and slogans. Use these elements to create a strong brand relationship
Integrating brand marketing activities – Personalize marketing, one to one marketing , permission marketing
Leveraging secondary association – the brand may themselves be linked to certain source of factors, such as the company, countries or other region, or channel of distributors of distribution channel which will be associate and identify through that channel.
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Brand value chain- is a mean to trace the value creation process for brands.
Brand audit – it’s a comprehensive examination of its source of equity
Brand equity management system – is a set of research procedures designed to provide timely, accurate and actionable information which needs to take the best tactical decisions in short term and long term
Brand tracking – involving the above system is called brand tracking
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Brand product matrix – is a graphical representation of all the brands and products sold by the firm
Brand hierarchy – displays the number and nature of common and distinctive brand components across the firms products. By capturing the potential branding relationships among the different products sold by the firm.
The brand portfolio – is the set of all brands and brand lines that a particular firm offers for sale to buyers in particular category.
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.Mental mapsCompetitive frame of referencePoints-of-parity and points-of-differenceCore brand valuesBrand mantra
Mixing and matching of brand elementsIntegrating brand marketing activitiesLeveraging of secondary associations
Brand Value ChainBrand auditsBrand trackingBrand equity management system
Brand-product matrixBrand portfolios and hierarchiesBrand expansion strategiesBrand reinforcement and revitalization
KEY CONCEPTSSTEPS
Grow and SustainBrand Equity
Identify and EstablishBrand Positioning and Values
Plan and Implement Brand Marketing Programs
Measure and InterpretBrand Performance