48140780 Strategic Brand Management

8/3/2019 48140780 Strategic Brand Management

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STRATEGIC BRANDSTRATEGIC BRANDMANAGEMENTMANAGEMENTBUILDING, MEASURING, AND MANAGINGBUILDING, MEASURING, AND MANAGING

BRAND EQUITYBRAND EQUITY

Chapter 1Chapter 1

Brands & Brand ManagementBrands & Brand ManagementKevin Lane KellerKevin Lane Keller

Amos Tuck School of BusinessAmos Tuck School of BusinessDartmouth CollegeDartmouth College

Slides re-arranged by Polboon N.


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Product VS BrandProduct VS Brand

AA productproduct is anything that can be offered tois anything that can be offered to

the market for attention , acquisition, use,the market for attention , acquisition, use,

or consumption that might satisfy a needor consumption that might satisfy a need

or want. Thus, a product can be a physicalor want. Thus, a product can be a physicalgood, service, organization, place or ideas.good, service, organization, place or ideas.

AA brandbrand is a product but adds otheris a product but adds other

dimensions that differentiate it in somedimensions that differentiate it in some

way from other products designed toway from other products designed to

satisfy the same need.satisfy the same need.


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What is a Brand?What is a Brand?

AA brandbrand is a name, term, sign, symbol, or designis a name, term, sign, symbol, or designwhich is intended towhich is intended to identifyidentify

the goods orthe goods or

services of one seller or group of sellers and toservices of one seller or group of sellers and todifferentiatedifferentiate them from those of competitors.them from those of competitors.


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Examples of brands of computer products


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Brand ElementsBrand Elements

A variety of brand elements can be chosen thatA variety of brand elements can be chosen thatinherently enhance brand awareness or facilitate theinherently enhance brand awareness or facilitate theformation of strong, favorable, and unique brandformation of strong, favorable, and unique brandassociations:associations:

Brand NameBrand Name

LogoLogo SymbolSymbol CharacterCharacter PackagingPackaging

SloganSlogan


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Why do brand matter?Why do brand matter?

To consumersTo consumers

Identification of sources of productIdentification of sources of product

Assignment of responsibility to product maker.Assignment of responsibility to product maker.

Risk reducerRisk reducer

Search cost reducerSearch cost reducer

Symbolic deviceSymbolic device

Signal of qualitySignal of quality

Promise or bond with product or makerPromise or bond with product or maker


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Why do brand matter?Why do brand matter?

To ManufacturerTo Manufacturer

Means of identification to simplifyingMeans of identification to simplifyinghandling and tracing.handling and tracing.

Means of legally protecting unique feature.Means of legally protecting unique feature.

Signal of qualitySignal of quality

Means of endowing products with uniqueMeans of endowing products with uniqueassociations.associations.

Sources of competitive advantageSources of competitive advantageSources of financial returns.Sources of financial returns.


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Branding Challenges &Branding Challenges &

OpportunitiesOpportunities

Knowledgeable consumers.Knowledgeable consumers.

Brand ProliferationBrand Proliferation

Media FragmentationMedia Fragmentation Increased competitionIncreased competition

Increased costs of introducing newIncreased costs of introducing new

product or supporting existing product.product or supporting existing product. Greater accountabilityGreater accountability


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Brand Elements Choice Criteria:Brand Elements Choice Criteria:

General ConsiderationsGeneral Considerations

MemorableMemorableEasily RecognizedEasily Recognized

Easily RecalledEasily Recalled

MeaningfulMeaningfulCredible &Credible &

SuggestiveSuggestive

Rich Visual & VerbalRich Visual & Verbal

ImageryImageryAppealingAppealingFun & InterestingFun & Interesting

AestheticsAesthetics


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Brand Elements Choice Criteria:Brand Elements Choice Criteria:

General ConsiderationsGeneral Considerations (continue)(continue)

AdaptableAdaptable Flexible &Flexible &

UpdateableUpdateable

ProtectableProtectable LegallyLegally

CompetitivelyCompetitively

TransferableTransferable Within & AcrossWithin & Across

Product CategoriesProduct Categories

AcrossAcross

GeographicalGeographical

Boundaries &Boundaries &


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Can anything be branded?Can anything be branded?

Physical goodsPhysical goods ServicesServices RetailersRetailers

On-line productOn-line product On-line serviceOn-line service PeoplePeople OrganizationOrganization

Sports, Arts, EntertainmentSports, Arts, Entertainment Geographic locationGeographic location IdeasIdeas


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Brand ValueBrand Value

Examples of brand value 2001 ( Million US$)Examples of brand value 2001 ( Million US$)

Coca-colaCoca-cola 6969

MicrosoftMicrosoft 6565

IBMIBM 5252

GEGE 4242NokiaNokia 3535

IntelIntel 3434

DisneyDisney 3232

McDonaldMcDonald 2525

SonySony 1515

HondaHonda 1414BMWBMW 1313


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Keys to enduring BrandKeys to enduring Brand

LeadershipLeadership

Vision of mass marketVision of mass market

Managerial persistenceManagerial persistence

Financial commitmentFinancial commitment

Relentless innovationRelentless innovation

Asset LeverageAsset Leverage


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Strategic BrandStrategic Brand

ManagementManagement

Brand VisionBrand Vision

Brand ValuesBrand Values

& Brand Positioning& Brand Positioning

Brand Marketing objectivesBrand Marketing objectives

Brand Marketing strategiesBrand Marketing strategies

Brand Marketing ProgramsBrand Marketing Programs

Implementing brand marketing programImplementing brand marketing program

Measuring brand performanceMeasuring brand performance

Growing and sustaining brand equityGrowing and sustaining brand equity


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Strategic Brand ManagementStrategic Brand Management

ProcessProcess

1.1. Identifying brand vision, core brandIdentifying brand vision, core brandvalues and brand positioning.values and brand positioning.

2.2. Planning and implementing brandPlanning and implementing brandmarketing programsmarketing programs

3.3. Measuring brand performanceMeasuring brand performance

4.4.

Growing and sustaining brandGrowing and sustaining brand

equityequity


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Strategic Brand Management ProcessStrategic Brand Management Process

Mental mapsMental maps

Competitive frame of referenceCompetitive frame of reference

Points-of-parity and points-of-differencePoints-of-parity and points-of-difference

Core brand valuesCore brand values

Brand mantraBrand mantra

Mixing and matching of brand elementsMixing and matching of brand elements

Integrating brand marketing activitiesIntegrating brand marketing activities

Leveraging of secondary associationsLeveraging of secondary associations

Brand Value ChainBrand Value Chain

Brand auditsBrand auditsBrand trackingBrand tracking

Brand equity management systemBrand equity management system

Brand-product matrixBrand-product matrix

Brand portfolios and hierarchiesBrand portfolios and hierarchies

Brand expansion strategiesBrand expansion strategies

Brand reinforcement and revitalizationBrand reinforcement and revitalization

KEY CONCEPTSKEY CONCEPTSSTEPSSTEPS

Grow and SustainGrow and Sustain

Brand EquityBrand Equity

Identify and EstablishIdentify and Establish

Brand Positioning and ValuesBrand Positioning and Values

Plan and ImplementPlan and Implement

Brand Marketing ProgramsBrand Marketing Programs

Measure and InterpretMeasure and InterpretBrand PerformanceBrand Performance


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Core brand value & PositioningCore brand value & Positioning

Brand visionBrand vision What the brand shouldWhat the brand shouldstand for in the future.stand for in the future.

Core brand valuesCore brand values set of abstractset of abstractassociations that characterize a brand.associations that characterize a brand.

A brand mantra is a short 3-5 wordsA brand mantra is a short 3-5 words

expression of the most important aspect ofexpression of the most important aspect ofa brand and its core brand values.a brand and its core brand values.


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Core brand value & PositioningCore brand value & Positioning

Brand PositioningBrand Positioning the act of designingthe act of designingthe companys offer and image so that itthe companys offer and image so that itoccupies a distinct and values placed inoccupies a distinct and values placed in

the target consumers mind.the target consumers mind.The goal is to locate the brand in the mindsThe goal is to locate the brand in the minds

of consumers.of consumers.

Competitive brand positioningCompetitive brand positioning creatingcreating

brand superiority in the minds ofbrand superiority in the minds ofconsumers.consumers.

Brand PositioningBrand Positioning a specification ofa specification ofbrand core values and brand mantra.brand core values and brand mantra.


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Customer-based BrandCustomer-based Brand

EquityEquity


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Brand EquityBrand Equity the added values endowedthe added values endowedto product or serviceto product or service..

Awareness

Brand AwarenessBrand Awareness

Brand Image / Brand salienceBrand Image / Brand salience

Brand Experiences /Brand Experiences /

Brand UsersBrand Users

Brand loyaltyBrand loyalty


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The Concept ofThe Concept of

Customer-Based Brand EquityCustomer-Based Brand Equity

Brand SalienceBrand Salience

Brand awarenessBrand awareness

FeelingFeelingJudgmentJudgment

Brand ImageryBrand ImageryBrandBrand

PerformancePerformance

ResonanceResonance

Brand RelationshipBrand Relationship

(What about you and me?)(What about you and me?)

Brand responseBrand response(What about you?)(What about you?)

Brand MeaningBrand Meaning

(what are you?)(what are you?)

Brand IdentityBrand Identity

(Who are you?)(Who are you?)


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The Concept ofThe Concept of

Customer-Based Brand EquityCustomer-Based Brand Equity

Category identificationCategory identification

Warm, secureWarm, secure

Fun, excitementFun, excitement

Social approval, etc.Social approval, etc.

QualityQuality

CreditabilityCreditability

SuperioritySuperiority

Profiles, usage,Profiles, usage,

Personality & valuesPersonality & values

ExperiencesExperiences

Product characteristicsProduct characteristics

Effectiveness, ReliabilityEffectiveness, Reliability

Design ,priceDesign ,price

LoyaltyLoyalty

CommitmentCommitment

EngagementEngagement

Brand RelationshipBrand Relationship

(What about you and me?)(What about you and me?)

Brand responseBrand response(What about you?)(What about you?)

Brand MeaningBrand Meaning

(what are you?)(what are you?)

Brand IdentityBrand Identity

(Who are you?)(Who are you?)


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Benefits ofBenefits of


Enjoy greater brand loyalty, usage, andEnjoy greater brand loyalty, usage, and

affinityaffinity

Command larger price premiumsCommand larger price premiums

Receive greater trade cooperation & supportReceive greater trade cooperation & support

Increase marketing communicationIncrease marketing communication

effectivenesseffectiveness

Yield licensing opportunitiesYield licensing opportunities

Support brand extensionsSupport brand extensions..


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Beverage

Water Others

Non-Alcoholic Alcoholic

Wine

Beer

DistilledSpirits

Juices

Milk

Hot beverage

Soft drinks

?

?

BeverageBeverage

CategoryCategory

HierarchyHierarchy


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The Key to BrandingThe Key to Branding

For branding strategies to beFor branding strategies to be

successful, consumers must besuccessful, consumers must be

convinced that there are meaningfulconvinced that there are meaningful

differences among brands in thedifferences among brands in theproduct or service category.product or service category.

Consumer mustConsumer must notnot think that allthink that all

brands in the category are the same.brands in the category are the same.

PERCEPTION = VALUEPERCEPTION = VALUE


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Discussion WorkshopDiscussion Workshop

Product & BrandProduct & Brand


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Topics of discussionTopics of discussion

Assignment: Students bring a product or a brochure of productAssignment: Students bring a product or a brochure of productor service to discuss in classor service to discuss in class..

1.1. What product / service ? What brand?What product / service ? What brand?

2.2. What product category? What market?What product category? What market?

3.3. Who are in the market?Who are in the market?4.4. What do you know about the category?What do you know about the category?

5.5. What could be the consumer expectation from thisWhat could be the consumer expectation from thiscategory?category?

6.6. What do you know about the chosen product/service?What do you know about the chosen product/service?

7.7. What you should know about the product/service if you areWhat you should know about the product/service if you are

a brand / product manager?a brand / product manager?8.8. What is the product benefit?What is the product benefit?

9.9. What is the consumer benefit of the product?What is the consumer benefit of the product?

10.10.How does this brand different from others?How does this brand different from others?

11.11.What it the brand mantra? Slogan? Is it convincing?What it the brand mantra? Slogan? Is it convincing?


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Next ClassNext ClassSession 3: 17 November 2550Session 3: 17 November 2550

What do Brand Manager ActuallyWhat do Brand Manager Actually

do?do?

Guest lecturerGuest lecturer

Khun Anan TeerawichakulKhun Anan Teerawichakul

Brand Manager : VitamilkBrand Manager : Vitamilk


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Session 4: 24 November 2550Session 4: 24 November 25501.1. Market AnalysisMarket Analysis

Reading: Lehman & Wine Chapter 3 & 4Reading: Lehman & Wine Chapter 3 & 4

2.2. Submit individual paperSubmit individual paper

3. Be prepared to discuss market analysis of a3. Be prepared to discuss market analysis of a

product market in class.product market in class.


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Individual AssignmentIndividual Assignment

Choose 1 of the following topics, do someChoose 1 of the following topics, do some studystudyfrom books, internet, market survey, talking tofrom books, internet, market survey, talking toconsumers, talking to sellers, etc. andconsumers, talking to sellers, etc. and writewrite aa

short report, 4 to 5 pages. Please do not copyshort report, 4 to 5 pages. Please do not copyeach other.each other.

TOPICSTOPICS

Product X: Initial Market & Product InformationProduct X: Initial Market & Product Information Consumers Information and the consumerConsumers Information and the consumerinsights Product Category Xinsights Product Category X


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Product X: Initial Market and Product InformationProduct X: Initial Market and Product Information Type of product / serviceType of product / service

Size of market and potential ( if information isSize of market and potential ( if information is

available)available) Key Players in the marketKey Players in the market

Leading BrandLeading Brand

Market SegmentationMarket Segmentation

Distribution structureDistribution structure Market influencersMarket influencers


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Consumers Information and the consumerConsumers Information and the consumer

insights Product Category Xinsights Product Category X Type of product / serviceType of product / service

The end-consumers or end-usersThe end-consumers or end-users The purchasers & the influencersThe purchasers & the influencers

The end-consumer's needs, desires, preferences.The end-consumer's needs, desires, preferences.

The general product expectation.The general product expectation.

The potential added-value related to the productThe potential added-value related to the product Use and usage behaviorUse and usage behavior

What else should we know about the consumers of theWhat else should we know about the consumers of the

studied products.studied products.


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Group Work AssignmentGroup Work Assignment

1 Product and pricing Strategy of a1 Product and pricing Strategy of a food product Xfood product X

2 Product and pricing Strategy of a2 Product and pricing Strategy of a consumer product Xconsumer product X

3 Product and pricing strategy of a3 Product and pricing strategy of a Food orFood orconsumerconsumer

service business Xservice business X4 A4 A Market AnalysisMarket Analysis of Product Category X.of Product Category X.

5 A5 A SWOT analysisSWOT analysis of a consumer product Xof a consumer product X

Explain the process how the assignment is done. (20%)Explain the process how the assignment is done. (20%)

Report maximum of 8 pages (50%)Report maximum of 8 pages (50%)

Presentation 15 minutes for each group (30%)Presentation 15 minutes for each group (30%)


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Mid-Term ExamMid-Term Exam

Be prepare to express your knowledge aboutBe prepare to express your knowledge about Basic Marketing PrinciplesBasic Marketing Principles Product Management conceptProduct Management concept Brand, Brand Equity, Brand ManagementBrand, Brand Equity, Brand Management

conceptconcept Market AnalysisMarket Analysis

Midterm exam period 14-24 DecemberMidterm exam period 14-24 December25502550

48140780 Strategic Brand Management

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