Bmgt 411 chapter_8

36
BMGT 411: Chapter 8, Brand Equity

description

bmgt_411_marketing_management_ chris lovett fall 2014

Transcript of Bmgt 411 chapter_8

Page 1: Bmgt 411 chapter_8

BMGT 411: Chapter 8, Brand Equity

Page 2: Bmgt 411 chapter_8

Chapter 8 Questions

• What is a brand and how does branding work?

• What is brand equity and how is it built, measured, and managed?

• What are the important decisions in developing a branding strategy?

Page 3: Bmgt 411 chapter_8

Steps in Strategic Brand Management

• Identifying and establishing brand positioning

• Planning and implementing brand marketing

• Measuring and interpreting brand performance

• Growing and sustaining brand value

Page 4: Bmgt 411 chapter_8

What is a Brand?

• A brand is a name, term, sign, symbol or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.

Page 5: Bmgt 411 chapter_8

Attributes of Great Brands

Page 6: Bmgt 411 chapter_8

The Role of Brands

• Identify the maker

• Simplify product handling

• Organize accounting

• Offer legal protection

Page 7: Bmgt 411 chapter_8

The Role of Brands

• Signify quality

• Create barriers to entry

• Serve as a competitive advantage

• Secure price premium

Page 8: Bmgt 411 chapter_8

What is Branding?

•Branding is endowing products and services with the power of the brand. •Teaching customers “who” the product is•Tells customers what the product does•Reinforces why consumers should care

Page 9: Bmgt 411 chapter_8

What is Brand Equity?

• Brand equity is the added value endowed on products and services, which may be reflected in the way consumers, think, feel, and act with respect to the brand.

• What are some of your favorite brands?

• Why?

• What feelings do you get when you think go these brands?

Page 10: Bmgt 411 chapter_8

Brand Equity

What comes to mind when you think of these brand retailers?!Why?

Page 11: Bmgt 411 chapter_8

Advantages of Strong Brands

• Improved perceptions of product performance

• Greater loyalty

• Less vulnerability to competitive marketing actions

• Less vulnerability to crises

• Larger margins

• More inelastic consumer response

• Greater trade cooperation

• Increased marketing communications effectiveness

• Possible licensing opportunities

Page 12: Bmgt 411 chapter_8

What is a Brand Promise?

• A brand promise is the marketer’s vision of what the brand must be and do for consumers.

• What do you think the brand promise is for the retailers we discussed?

Page 13: Bmgt 411 chapter_8

Brand Equity Models

Brand Asset Valuator (BAV)

Brandz

Brand Resonance

Page 14: Bmgt 411 chapter_8

Brand Asset Valuator (BAV)

Strong New Brands: Higher in Energized Differentiation, low esteem and knowledge !Leadership Brands: High in all categories !!Declining Brands: High Knowledge, low everything else

Page 15: Bmgt 411 chapter_8

Figure 8.2 Brand Dynamics BrandZ Model

Page 16: Bmgt 411 chapter_8

Figure 8.3 Brand Resonance Pyramid Think of Brands in these

Stages?

Page 17: Bmgt 411 chapter_8

Building Brand Equity

1.Identify Brand Elements (Name, Logo, URL, etc) and identities that make up the brand

2.The Product, Service, and All Marketing Activities and Marketing Programs

3. Other associations indirectly transferred to the brand (Figure 8.4 Page 119)

Page 18: Bmgt 411 chapter_8

Brand Elements

• Brand names

• Slogans

• Characters

• Symbols

• Logos

• URLs

• Social Media Presence

• Customer Service Strategy

Page 19: Bmgt 411 chapter_8
Page 20: Bmgt 411 chapter_8

Brand Element Choice Criteria

• Building the Brand

• Memorable: Is the elements easily recalled and recognized at purchase and consumption (Tide)

• Meaningful: Is the element credible and suggestive of the category? Does it suggest something about an ingredient or brand user? (Diehard)

• Likable: Is the element appealing and likable visually or in other ways? (iPad)

• Defending a Brand

• Transferrable: Can the element introduce new products in the same category or other category? (Amazon, Soap.com, Wag.com, diapers.com)

• Adaptable: Can the element be adapted and updated (Betty Crocker image)

• Protectable: Is the element legally and competitively protected? Google

Page 21: Bmgt 411 chapter_8

Betty Crocker Images Brand of General Mills

Page 22: Bmgt 411 chapter_8

The Color of a Brand

Page 23: Bmgt 411 chapter_8

The Color of a Brand

Page 24: Bmgt 411 chapter_8

Secondary Sources of Brand Knowledge

Page 25: Bmgt 411 chapter_8

Cult Brands: Building Equity Without Promotions

http://www.youtube.com/watch?v=ZUG9qYTJMsI&feature=player_embedded#!

Page 26: Bmgt 411 chapter_8

Measuring Brand Equity

• Brand audits: A consumer focused series of procedures to asses the health of the brand, uncover its sources of equity, and suggest ways to improve and leverage it’s equity.

• Brand tracking: Qualitative Marketing Research that collects data from consumers over time to provide baseline information on how brands and marketing programs are performing

• Brand valuation: The actual financial value of a brand

Page 27: Bmgt 411 chapter_8

Interbrand Retail US Brand Valuations

http://www.interbrand.com/en/best-global-brands/2013/BGB-Interactive-Charts.aspx

Page 28: Bmgt 411 chapter_8

Branding Terms (Page 122)

• Brand line

• Brand mix

• Brand extension

• Sub-brand

• Parent brand

• Family brand

• Line extension

• Category extension

• Branded variants

• Licensed product

Page 29: Bmgt 411 chapter_8

Branding Decisions

• Individual or Separate Family Brand Names: Individual names of brands across multiple categories, even though the company that makes the products are the same

Page 30: Bmgt 411 chapter_8

Branding Decisions

• Corporate Umbrella or Company Brand Name: Use one name across a variety of products. Becoming very popular as a strategy of private label products.

Page 31: Bmgt 411 chapter_8

Branding Decisions

• Sub Brand Names: Combines corporate umbrella brands with individual or family brands

Page 32: Bmgt 411 chapter_8

Brand Portfolios

• Flankers

• Cash cows

• Low-end, entry-level

• High-end prestige

Page 33: Bmgt 411 chapter_8

Brand Portfolios

• Flankers: Fighter brands are positioned alongside competitor brands so that more important and more profitable flagship brands can retain their desire positioning

• Cash cows: Still profitable without much marketing, dwindling sales, but still profitable

• Low-end, entry-level: Attract customers to the brand franchise with lower prices

• High-end prestige: Higher priced, adds prestige and credibility to overall portfolio

Page 34: Bmgt 411 chapter_8

Brand Extensions

• Most products are Brand Extensions (80-90%) - as they create new demand based on trends, customer tastes, without building the brand from scratch each time a new product is launched.

• A key trend is ease and convenience “Lifehacks”

Page 35: Bmgt 411 chapter_8

Final Notes on Brands

Page 36: Bmgt 411 chapter_8

Final Notes on Brands