6 choosing brand elements

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CHOOSING BRAND ELEMENTS TO BUILD BRAND EQUITY

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6 choosing brand elemends PGDM

Transcript of 6 choosing brand elements

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CHOOSING BRAND ELEMENTS TO BUILD BRAND EQUITY

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Brand knowledge structures depend on:◦ The initial choices for the brand elements

◦ The supporting marketing program and the manner by which the brand is integrated into it

◦ Other associations indirectly transferred to the brand by linking it to some other entities

4.2

Building Customer-Based Brand Equity

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Memorability Meaningfulness Likability Transferability Adaptability Protectability

4.9

Criteria for Choosing Brand Elements

Marketer’s offensive strategy and build brand equity

Defensive role for leveraging and maintaining brand equity

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Brand elements should inherently be memorable and attention-getting, and therefore facilitate recall or recognition.

For example, a brand of propane gas cylinders named Blue Rhino featuring a powder-blue animal mascot with a distinctive yellow flame is likely to stick in the minds of consumers.

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Memorability

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Brand elements may take on all kinds of meaning, with either descriptive or persuasive content.

Two particularly important criteria ◦ General information about the nature of the product

category◦ Specific information about particular attributes and

benefits of the brand The first dimension is an important

determinant of brand awareness and salience; the second, of brand image and positioning.

4.11

Meaningfulness

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Do customers find the brand element aesthetically appealing?

Descriptive and persuasive elements reduce the burden on marketing communications to build awareness.

Likability

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How useful is the brand element for line or category extensions?

To what extent does the brand element add to brand equity across geographic boundaries and market segments?

4.13

Transferability

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The more adaptable and flexible the brand element, the easier it is to update it to changes in consumer values and opinions.

For example, logos and characters can be given a new look or a new design to make them appear more modern and relevant.

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Adaptability

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Marketers should:1. Choose brand elements that can be legally

protected internationally. 2. Formally register chosen brand elements with

the appropriate legal bodies.3. Vigorously defend trademarks from

unauthorized competitive infringement.

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Protectability

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A variety of brand elements can be chosen that inherently enhance brand awareness or facilitate the formation of strong, favorable, and unique brand associations.◦ Brand names◦ URLs◦ Logos and symbols◦ Characters◦ Slogans◦ Packaging

4.16

Tactics for Brand Elements

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Like any brand element, brand names must be chosen with the six general criteria of memorability, meaningfulness, likability, transferability, adaptability, and protectability in mind.

4.17

Brand Names

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Brand awareness ◦ Simplicity and ease of pronunciation and spelling ◦ Familiarity and meaningfulness ◦ Differentiated, distinctive, and uniqueness

Brand associations◦ The explicit and implicit meanings consumers

extract from it are important. In particular, the brand name can reinforce an important attribute or benefit association that makes up its product positioning.

4.18

Brand Naming Guidelines

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Define objectives Generate names Screen initial candidates Study candidate names Research the final candidates Select the final name

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Brand Naming Procedures

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URLs (uniform resource locators) specify locations of pages on the web and are also commonly referred to as domain names.

A company can either sue the current owner of the URL for copyright violation, buy the name from the current owner, or register all conceivable variations of its brand as domain names ahead of time.

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URLs

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Play a critical role in building brand equity and especially brand awareness

Logos range from corporate names or trademarks (word marks with text only) written in a distinctive form, to entirely abstract designs that may be completely unrelated to the word mark, corporate name, or corporate activities

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Logos and Symbols

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A special type of brand symbol—one that takes on human or real-life characteristics

Some are animated like Pillsbury’s Poppin’ Fresh Doughboy, Peter Pan peanut butter’s character, and numerous cereal characters such as Tony the Tiger, Cap’n Crunch, and Snap, Crackle & Pop.

Others are live-action figures like Juan Valdez (Colombian coffee), the Maytag repairman, and Ronald McDonald. Notable newcomers include the AOL running man, the Budweiser frogs, and the AFLAC duck.

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Characters

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Slogans are short phrases that communicate descriptive or persuasive information about the brand.

Slogans are powerful branding devices because, like brand names, they are an extremely efficient, shorthand means to build brand equity

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Slogans

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“Melts in your mouth, not in your hands” (M&M’s)

“Sometimes you feel like a nut, sometimes you don’t” (Almond Joy/Mounds)

“Where’s the beef?” (Wendy’s) “A mind is a terrible thing to waste”

(United Negro College Fund) “Can you hear me now?” (Verizon)

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Classic Slogans

Source: Monty Phan, “Celebrating Their Sweet Success,” Newsday, 21 September 2004, A43.

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Jingles are musical messages written around the brand. Typically composed by professional songwriters, they often have enough catchy hooks and choruses to become almost permanently registered in the minds of listeners—sometimes whether they want them to or not!

Jingles are perhaps most valuable in enhancing brand awareness.

4.25

Jingles

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From the perspective of both the firm and consumers, packaging must achieve a number of objectives:◦ Identify the brand◦ Convey descriptive and persuasive information◦ Facilitate product transportation and protection◦ Assist at-home storage◦ Aid product consumption

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Packaging

Susan B. Bassin, “Value-Added Packaging Cuts through Store Clutter,” Marketing News, 26 September 1988, 21.

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Our sense of taste and touch is very suggestible, and what we see on a package can lead us to taste what we think we are going to taste.

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Packaging Can Influence Taste

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Long after we have bought a product, a package can still lead us to believe we bought it because it was a good value.

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Packaging Can Influence Value

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Studies of 48 different types of foods and personal care products have shown that people pour and consume between 18% and 32% more of a product as the size of the container doubles.

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Packaging Can Influence Consumption

Valerie Folkes, Ingrid Martin and Kamal Gupta, “When to Say When: Effects of Supply on Usage,” Journal of Consumer Research, 20 December 1993, 467-477.

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One strategy to increase use of mature products has been to encourage people to use the brand in new situations, like soup for breakfast, or new uses, like baking soda as a refrigerator deodorizer.

An analysis of 26 products and 402 consumers showed that twice as many people learned about the new use from the package than from television ads.

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Packaging Can Influence How a Person Uses a Product

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The entire set of brand elements makes up the brand identity, the contribution of all brand elements to awareness and image.

The cohesiveness of the brand identity depends on the extent to which the brand elements are consistent.

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Putting It All Together

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DESIGNING MARKETING PROGRAMS TO BUILD BRAND EQUITY

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How do marketing activities in general—and product, pricing, and distribution strategies in particular—build brand equity?

How can marketers integrate these activities to enhance brand awareness, improve the brand image, elicit positive brand responses, and increase brand resonance?

5.33

Overview

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The strategy and tactics behind marketing programs have changed dramatically in recent years as firms have dealt with enormous shifts in their external marketing environments: ◦ Digitalization and connectivity (through

Internet, intranet, and mobile devices)◦ Disintermediation and reintermediation (via

new middlemen of various sorts)◦ Customization and customerization (through

tailored products and ingredients provided to customers to make products themselves)

◦ Industry convergence (through the blurring of industry boundaries)

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New Perspectives on Marketing

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They have a number of implications for the practice of brand management. Marketers are increasingly abandoning the mass-market strategies that built brand powerhouses in the 1950s, 1960s, and 1970s to implement new approaches.

Even marketers in slow-moving, traditional industries are rethinking their practices and not doing business as usual.

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Implications for the Practice of Brand Management

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Creative and original thinking is necessary to create fresh new marketing programs that break through the noise in the marketplace to connect with customers.

Marketers are increasingly trying a host of unconventional means of building brand equity.

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Integrating Marketing Programs and Activities

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All of these approaches are a means to create deeper, richer, and more favorable brand associations.

Relationship marketing has become a powerful brand-building force. ◦ Can slip through consumer radar◦ May creatively create unique associations◦ May reinforce brand imagery and feelings

Nevertheless, there is still a need for the control and predictability of traditional marketing activities.

Models of brand equity can help to provide direction and focus to the marketing programs.

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Personalizing Marketing

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Experiential marketing One-to-one marketing Permission marketing

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Personalizing Marketing Concepts

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One-to-one, permission, and experiential marketing are all potentially effective means of getting consumers more actively involved with a brand.

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Reconciling the New Marketing Approaches

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Focuses on customer experience Focuses on the consumption situation Views customers as rational and emotional

elements Uses electric methods and tools

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Experiential Marketing

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Consumers help to add value by providing information.

Firm adds value by generating rewarding experiences with consumers.◦ Creates switching costs for consumers◦ Reduces transaction costs for consumers◦ Maximizes utility for consumers

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One-to-One Marketing: Competitive Rationale

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Treat different consumers differently◦ Different needs◦ Different values to firm

Current Future (lifetime value)

Devote more marketing effort on most valuable consumers (and customers)

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One-to-One Marketing:Consumer Differentiation

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Identify consumers, individually and addressably

Differentiate them by value and needs Interact with them more cost-efficiently and

effectively Customize some aspect of the firm’s

behavior Brand the relationship

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One-to-One Marketing: Five Key Steps

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“Encourages consumers to participate in a long-term interactive marketing campaign in which they are rewarded in some way for paying attention to increasingly relevant messages.”◦ Anticipated◦ Personal◦ Relevant

Permission marketing can be contrasted to interruption marketing.

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Permission Marketing (Seth Godin)

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1. Offer the prospect an incentive to volunteer.

2. Offer the interested prospect a curriculum over time, teaching consumers about the product.

3. Reinforce the incentive to guarantee that prospect maintains the permission.

4. Offer additional incentives to get more permission from the consumer.

5. Over time, leverage the permission to change consumer behavior toward profits.

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Five Steps in Permission Marketing

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Product strategy Pricing strategy Channel strategy

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Integrating the BrandInto Supporting Marketing Programs

Supporting marketing mix should be designed to enhance awareness and establish desired brand image.

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Perceived quality and value◦ Brand intangibles◦ Total quality management and return on quality◦ Value chain

Relationship marketing◦ Mass customization◦ Aftermarketing◦ Loyalty programs

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Product Strategy

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Price premiums are among the most important brand equity benefits of building a strong brand.

Consumer price perceptions◦ Consumers often rank brands according to price

tiers in a category. Setting prices to build brand equity

◦ Value pricing◦ Everyday low pricing

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Pricing Strategy

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The manner by which a product is sold or distributed can have a profound impact on the resulting equity and ultimate sales success of a brand.

Channel strategy includes the design and management of intermediaries such as wholesalers, distributors, brokers, and retailers.

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Channel Strategy

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Direct channels ◦ Selling through personal contacts from the

company to prospective customers by mail, phone, electronic means, in-person visits, and so forth

Indirect channels◦ Selling through third-party intermediaries such as

agents or broker representatives, wholesalers or distributors, and retailers or dealers

◦ Push and pull strategies

Web strategies

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Channel Design

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By devoting marketing efforts to the end consumer, a manufacturer is said to employ a pull strategy.

Alternatively, marketers can devote their selling efforts to the channel members themselves, providing direct incentives for them to stock and sell products to the end consumer. This approach is called a push strategy.

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Push and Pull Strategies

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Two such partnership strategies are retail segmentation activities and cooperative advertising programs.

Retail segmentation  ◦ Retailers are “customers” too

Cooperative advertising   ◦ A manufacturer pays for a portion of the

advertising that a retailer runs to promote the manufacturer’s product and its availability in the retailer’s place of business.

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Channel Support

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Advantage of having both a physical “brick and mortar” channel and a virtual, online retail channel

The Boston Consulting Group concluded that multichannel retailers were able to acquire customers at half the cost of Internet-only retailers, citing a number of advantages for the multichannel retailers.

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Web Strategies