PERSPECTIVES ON BRAND MANAGEMENT · o Business card o Packaging o Web site • A unique set of...

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1 MARK3092: Brand Management PERSPECTIVES ON BRAND MANAGEMENT BRANDS AS IDENTIFIERS, FUNCTIONAL AND SYMBOLIC IMAGES What is a brand? BRAND = PRODUCT + IDENTITY + IMAGE Brand essence Brand identity Core brand promise / brand mantra. 3-5 word expression of the most important aspects of a brand and its core brand associations. The essential points or aspects of a brand condensed into a central conception – can be the point of departure of finding concepts for individual experiences or for entire brand experience. (Landa 2006) Elements of brand essence: o Unique o Intangible o Single-minded o Meaningful o Consistently delivered o Authentic o Sustainable o Scalable The visual and verbal articulation of a brand, incl. all pertinent design applications such as: o Brand name o Letterhead o Business card o Packaging o Web site A unique set of brand associations that represent what the brand stands for and imply a brand promise to consumers. Tangible and appeals to the senses. What is a brand? CUSTOMER perspective FIRM perspective Is a set of mental associations, held by the customer, which add to the perceived value of a product/service. Is the totality of perceptions – everything you see, heard, read, know, feel, think – about a product, service or business. Holds a distinctive position in customer’s minds based on past experiences, associations and future expectations. Is an identifier that distinguishes a product from other products. 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.” (American Marketing Association) A shortcut of attributes, benefits, beliefs, and values that differentiate, reduce complexity, and simplify the decision-making process. Brands can reflect a: o FUNCTIONAL IMAGE: functional-benefit associations – satisfying customers’ utilitarian needs. o SYMBOLIC IMAGE: symbolic-benefit associations – satisfying customers’ symbolic needs.

Transcript of PERSPECTIVES ON BRAND MANAGEMENT · o Business card o Packaging o Web site • A unique set of...

Page 1: PERSPECTIVES ON BRAND MANAGEMENT · o Business card o Packaging o Web site • A unique set of brand associations that represent what the brand stands for and imply a brand promise

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MARK3092: Brand Management

PERSPECTIVES ON BRAND MANAGEMENT

BRANDS AS IDENTIFIERS, FUNCTIONAL AND SYMBOLIC IMAGES

What is a brand? BRAND = PRODUCT + IDENTITY + IMAGE

Brand essence Brand identity • Core brand promise / brand mantra. • 3-5 word expression of the most important aspects of a

brand and its core brand associations. • The essential points or aspects of a brand condensed into a

central conception – can be the point of departure of finding concepts for individual experiences or for entire brand experience. (Landa 2006)

• Elements of brand essence: o Unique o Intangible o Single-minded o Meaningful o Consistently delivered o Authentic o Sustainable o Scalable

• The visual and verbal articulation of a brand, incl. all pertinent design applications such as:

o Brand name o Letterhead o Business card o Packaging o Web site

• A unique set of brand associations that represent what the brand stands for and imply a brand promise to consumers.

• Tangible and appeals to the senses.

What is a brand?

CUSTOMER perspective FIRM perspective

• Is a set of mental associations, held by the customer, which add to the perceived value of a product/service.

• Is the totality of perceptions – everything you see, heard, read, know, feel, think – about a product, service or business.

• Holds a distinctive position in customer’s minds based on past experiences, associations and future expectations.

• Is an identifier that distinguishes a product from other products.

• 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.” (American Marketing Association)

• A shortcut of attributes, benefits, beliefs, and values that differentiate, reduce complexity, and simplify the decision-making process.

• Brands can reflect a:

o FUNCTIONAL IMAGE: functional-benefit associations – satisfying customers’ utilitarian needs.

o SYMBOLIC IMAGE: symbolic-benefit associations – satisfying customers’ symbolic needs.

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What is a product? • Product: anything offered to a market for attention, acquisition, use or consumption that might satisfy

a need or want. • May be a physical good, service, retail outlet, person, organisation, place, idea etc. • 5 levels of product meaning: (1) core benefit, (2) generic, (3) expected, (4) augmented, (5) potential. • Brand > product Can have dimensions that differentiate it in some way from other products

designed to satisfy the same need. Types of brands Why do brands matter?

Why are brands of value to customers? Why are brands of value to their owners?

• Identification of source of product. • Assignment of responsibility to product market. • Risk reducer. • Search cost reducer. • Promise/bond/pact w/ product maker. • Symbolic device. • Signal of quality.

• 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 w/ unique

associations. • Source of competitive advantage • Source of financial returns

Customer perceived value

Tangible value

Economic valueUtility derived from the

brand due to the reduction of its

perceived short term and longer term costs

Quality valueUtility derived from the perceived quality and expected performance

of a product/service

Intangible value

Social valueUtility derived from the

brand's ability to enhance social self-

concept

Emotional valueUtility derived from the

feelings or affective states that a brand

generates

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KEY READING 1: Building strong brands • The value of a brand to an org include:

o Improved perceptions of product performance o Greater customer loyalty o Less vulnerability to competitive marketing actions and marketing crises o Larger margins o More elastic customer response to price decreases and inelastic customer response to price

increases o Greater trade or intermediary cooperation and support o Increased marketing communication effectiveness o Additional licensing and brand extension opportunities

• According to Keller’s customer-based brand equity model, brand equity is determined by the brand

knowledge created in consumer’s minds by marketing programs and activities. o i.e. the differential effect of that consumer knowledge about a brand has on their response to

the marketing of the brand. • Brand knowledge comprised of:

i. Brand awareness: relates to brand recall and brand recognition performance by consumers. ii. Brand image: refers to set of perceptions of the brand based on brand associations that are

held in consumers’ memory. • Brand building involves:

i. Ensuring identification of the brand with customers and an association of the brand in customers’ minds w/ a specific product class or customer need.

ii. Firmly establishing the totality of brand meaning in the minds of customers by strategically linking a host of tangible and intangible brand associations.

iii. Eliciting the proper customer responses in terms of brand-related judgment and feelings. iv. Converting brand response to create an intense, active loyalty relationships between

customers and the brand.

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Brand resonance • 4 dimensions:

1) Behavioural loyalty: customers’ repeat purchases and amount of category volume attributed to brand.

2) Attitudinal attachment: when customers view brand as being something special in broader context.

3) Sense of community: when customers feel a kinship or affiliation w/ other people associated w/ brand

4) Active engagement: when customers are willing to invest personal resources (time, money, energy) on brand beyond those expended during purchase/consumption.

• More likely to result when marketers create:

o Proper salience and breadth and depth of awareness o Firmly established points-of-parity and points-of-difference o Positive judgments and feelings

• 4 types of relationships in brand resonance network:

1) Consumer-Company: what do consumers know/feel about company behind the brand and how it treats consumers?

2) Consumer-Consumer: how much interaction occurs among consumers such that they can learn from and teach others and express their loyalty.

3) Company-Brand: is the company viewed as a good brand steward and ensuring that the brand lives up to its promise.

4) Consumer-Brand: how much and how often do consumers use the brand and how strongly do they feel attached to it?

The importance of marketing communciations • Marketing communications activities contribute to brand equity and drive sales by:

o Creating awareness of brand o Linking the right associations to the brand image in consumers’ memory o Eliciting positive brand judgements or feelings o Facilitating stronger consumer-brand connection

How easily and often customers think of the brand under various purchase situations!

How well the product meets

customers’ functional

needs !

The extrinsic properties of the product, incl how

it meets customers’

psychological or social needs!

Customers’ own personal

opinions/evaluations!

Customers’ emotional responses to brand!

RATIONAL route to brand building!

EMOTIONAL route to brand building!

Nature of the relationship

customers have w/ the brand and the

extent to which they feel in sync with it!

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BRANDS AS ICONS Branding challenges and opportunities? • New breed of customers: digitally empowered and powerful. • New media facilitate interactivity and customisability; changes in media usage patterns. • Brand equity is increasingly built by activities outside the company’s direct control. Brand and the three meaning makers

What is an iconic brand? Culture as a source of brand meaning • Iconic brands are brands that have become cultural icons. • They “win” not because they deliver distinctive benefits, but because they forge a deep connection

with the culture. • Compete for culture share. • Particularly fierce competition in ‘lifestyle’ categories (food, clothing, cars, alcohol etc) – all about

symbolism. CULTURAL ICONS AND CHARACTERISTICS • Cultural icon: person/thing regarded as a symbol, especially of a culture/movement; a

person/institution considered worth of admiration or respect. • Characteristics of cultural icons:

o Compelling symbols o Seen as quintessential o Conveying meaning o The source / the original o Distinctive / unique

IDENTITY VALUE • = aspects of a brand that contribute to a customer’s self-expression and personal identity. • i.e. the extent to which the brand embodies the ideals customers admire / helps customers express

who they want to be. • Identity brands: brands whose value to customers (.: brand equity) derives primarily from identity

value. • Iconic brands: have become cultural symbols and are .: the most successful in delivering identity

value to customers.