Brand Equity & Positioning
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Transcript of Brand Equity & Positioning
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Brand Equity and BrandBrand Equity and Brand
PositioningPositioning
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What is a Brand?What is a Brand?
AA brandbrand is a name, term, sign, symbol,is a name, term, sign, symbol,
or design which isintended toor design which isintended to identifyidentify thethegoods orservices ofone seller orgroupgoods orservices ofone seller orgroupofsellers and toofsellers and to differentiatedifferentiate them fromthem fromthose ofcompetitors.those ofcompetitors.
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Brand ElementsBrand Elements
A variety of brand elements can be chosenA variety of brand elements can be chosenthat inherently enhance brand awarenessthat inherently enhance brand awarenessor facilitate the formation of strong,or facilitate the formation of strong,
favorable, and unique brand associationsfavorable, and unique brand associations::
Brand NameBrand Name
LogoLogo
SymbolSymbol
CharacterCharacter
PackagingPackaging
SloganSlogan
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Why branding ?Why branding ?
What makesabrandstrong?What makesabrandstrong?Howdo youbuildastrongbrand?Howdo youbuildastrongbrand?
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CustomerCustomer--based Brand Equitybased Brand Equity
TheThe differentialeffectdifferentialeffect thatthat brandknowledgebrandknowledge
has onhas on consumer responseconsumer response to the marketingto the marketing
ofthat brand.ofthat brand.
CustomerCustomer--basedbrandequitybasedbrandequity occurs whenoccurs when
the customer has a high level ofawarenessthe customer has a high level ofawareness
and familiarity with the brand and hold someand familiarity with the brand and hold somestrong, favorable, and unique brandstrong, favorable, and unique brand
associationsin memory.associationsin memory.
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Brand EquityBrand Equity
BrandLoyalty
Brand Awareness
Brand Positive Attitude
Brand Occasional users
Bran
d Association
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An exampleAn example
BrandloyaltyBrandloyalty ((1010,,000000 customerscustomers
Consume @Consume @44/month =/month = 4040,,000000 sales unit/monthsales unit/month))
Brand OccasionalusersBrand Occasionalusers((1010,,000000 X@X@11 perper 22 monthsmonths== 50005000 unitssales per month)unitssales per month)
Brand Positive AttitudeBrand Positive Attitude has a good chance tohas a good chance topurchase and consume the products under the brand ifpurchase and consume the products under the brand ifmotivated.motivated.
Brand AwarenessBrand Awareness has tendency to try, use orhas tendency to try, use orrecommend the products under the brand ifconvinced.recommend the products under the brand ifconvinced.
Brand AssociationBrand Association has tendency to try, use orhas tendency to try, use orrecommend the products under the brand.recommend the products under the brand.
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Sources of brand equitySources of brand equity
Brand awarenessBrand awareness
Learning advantageLearning advantage
Consideration advantageConsideration advantage
Choice advantageChoice advantage\\
Brand ImageBrand Image
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Consumer reasons for brandConsumer reasons for brand
choiceschoices
An example
An example
Past experiencePast experience
PricePrice
QualityQuality
Personal recommendationPersonal recommendation
AdvertisingAdvertising
Rating on consumer reportRating on consumer report Environmental performanceEnvironmental performance
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44Steps of Brand BuildingSteps of Brand Building
1.1. EnsureEnsure identificationofthebrandidentificationofthebrand withwithcustomers with a specific product that meetcustomers with a specific product that meetcustomer need.customer need.
2.2. Firmly establish the totality ofFirmly establish the totality ofbrandbrandmeaningmeaning in the minds ofconsumers.in the minds ofconsumers.
3.3. Elicit theElicit the customerresponsescustomerresponses to brandto brand
identification and brand meaning.identification and brand meaning.4.4. Convert brand response to create an intense,Convert brand response to create an intense,active,active, loyalty relationshiployalty relationship betweenbetweencustomers and the brand.customers and the brand.
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Brand Building BlocksBrand Building Blocks
IdentityIdentity -- who are you?who are you?
MeaningMeaning -- what are you?what are you?
ResponseResponse -- what about you?what about you?
RelationshipRelationship -- what about you and me?what about you and me?
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SalienceSalience 1.Identity
2.Meaning
3. response
4 relationship
ImageryImageryPerformancePerformance
FeelingsFeelingsJudgmentsJudgments
ResonanceResonance
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CategoryidentificationCategoryidentification
NeedssatisfiedNeedssatisfied
Product characteristicsProduct characteristics
ReliabilityReliability
EffectivenessEffectiveness
Style / design/ priceStyle / design/ price
User profileUser profile
Usage situationUsage situation
Personality and valuesPersonality and values
History, heritage, experiencesHistory, heritage, experiences
QualityQuality
CreditabilityCreditabilityConsiderationConsiderationSuperioritySuperiority
Warmth /Warmth /
Fun / excitementFun / excitementSecuritySecuritySocial approval /selfrespectSocial approval /selfrespect
LoyaltyLoyaltyAttachmentAttachment
CommunityCommunity
EngagementEngagement
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Brand ResonanceBrand Resonance
BehavioralloyaltyBehavioralloyalty
Keep buying the same product and same brandKeep buying the same product and same brand
overyears orgenerationsoveryears orgenerations AttitudinalattachmentAttitudinalattachment
Believe in the brandBelieve in the brand
SenseofcommunitySenseofcommunity
Use the brand because ofsense ofcommunity orUse the brand because ofsense ofcommunity or
vice versa, E.g. Apple, Harley Davidsonvice versa, E.g. Apple, Harley Davidson
ActiveengagementActiveengagement
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Product Category StructureProduct Category StructureAn exampleAn example
Beverage
Water Flavored
Non-alcoholic Alcoholic
milkCoffee& tea
juiceSoftdrink
wine beer Distilledspirits
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Brand PositioningBrand Positioning
Brand PositioningBrand Positioning (as defined byKotler) is (as defined byKotler) is
an act ofdesigning the companys offer andan act ofdesigning the companys offer and
image so that it occupies a distinct andimage so that it occupies a distinct andvalued in the target customers mind.valued in the target customers mind.
Finding a proper locationin the minds ofaFinding a proper locationin the minds ofa
group ofconsumers or market segment sogroup ofconsumers or market segment sothat they think about a product orservice inthat they think about a product orservice inthe right or desired way.the right or desired way.
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Establishing brand PositioningEstablishing brand Positioning
Target marketTarget market
Points ofparity and Points ofDifferencePoints ofparity and Points ofDifference
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Marketing StrategyMarketing Strategy
Segmentation
Targeting
Positioning
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What is Positioning?What is Positioning?
PositioningPositioning is the act ofdesigning theis the act ofdesigning the
companys offering and image to occupycompanys offering and image to occupy
a distinctive place in the mind of thea distinctive place in the mind of thetarget market.target market.
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Value PropositionsValue Propositions
Perdue ChickenPerdue Chicken
More tendergolden chicken at a moderateMore tendergolden chicken at a moderate
premium pricepremium price
DominosDominos
A good hot pizza, delivered to your doorA good hot pizza, delivered to your door
withinwithin 3030 minutes ofordering, at a moderateminutes ofordering, at a moderatepriceprice
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Differentiation StrategiesDifferentiation Strategies
Product
Channel Image
Personnel
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Product DifferentiationProduct Differentiation
Product formProduct form
FeaturesFeatures
PerformancePerformance
ConformanceConformance
DurabilityDurability
ReliabilityReliability ReparabilityReparability
StyleStyle
DesignDesign
Ordering easeOrdering ease
DeliveryDelivery
InstallationInstallation
Customer trainingCustomer training CustomerconsultingCustomerconsulting
MaintenanceMaintenance
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Personnel Differentiation:Personnel Differentiation:
Singapore AirlinesSingapore Airlines
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Channel DifferentiationChannel Differentiation
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Image DifferentiationImage Differentiation
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Target marketTarget market
A marketA market is the set ofall actual andis the set ofall actual and
potential buyers who have sufficientpotential buyers who have sufficient
interestsin, income for, and access to ainterestsin, income for, and access to aproduct.product.
A market segmentationA market segmentation a distinct groupa distinct group
ofhomogeneousconsumers who haveofhomogeneousconsumers who havesimilar needs and behavior and thussimilar needs and behavior and thusrequire similar marketing mixes.require similar marketing mixes.
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Segmentation basesSegmentation bases
BehavioralBehavioral
E.g. userstatusE.g. userstatus
DemographicDemographic
E.g, age, incomeE.g, age, income
PsychographicPsychographic
E.g. values, lifestyleE.g. values, lifestyle
GeographicGeographic
E.g, local, regional,E.g, local, regional,internationalinternational
Nature ofgoodNature ofgood
E.g. SemiE.g. Semi--finishedfinished
BuyingconditionBuyingcondition
E.g.LocationE.g.Location
DemographicDemographic
E.g. SICcodeE.g. SICcode
No ofemployeesNo ofemployees
Sales volumeSales volume
ConsumerConsumerSegmentationBasesSegmentationBases
BusinessBusiness--toto--businessbusinessSegmentationBasesSegmentationBases
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Segmentation CriteriaSegmentation Criteria
Identifiability:Identifiability: can segment identification becan segment identification be
determined?determined?
Size:Size: is there adequate sales potential in theis there adequate sales potential in thesegment?segment?
AccessibilityAccessibility:Can the segment be reached?:Can the segment be reached?
ResponsivenessResponsiveness:How favorable will the:How favorable will the
segment respond to a tailored marketingsegment respond to a tailored marketing
program>program>
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Segments of usersSegments of users
44 Groupsofusersbasedonstrength ofcommitment.Groupsofusersbasedonstrength ofcommitment.
Convertible
Convertible
highly likely to switch brandshighly likely to switch brands
ShallowShallow not ready to switch but considernot ready to switch but consider
alternatives/alternatives/
AverageAverage comfortable with theirchoice, unlikely tocomfortable with theirchoice, unlikely to
switch brandsin the nearfuture.switch brandsin the nearfuture.
EntrenchedEntrenched loyal to the brand, unlikely to change inloyal to the brand, unlikely to change inthe foreseeable future.the foreseeable future.
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Points of Parity (POP) andPoints of Parity (POP) andPoints of differences (POD)Points of differences (POD)
PointofParityPointofParity a particular dimension ora particular dimension or
attribute or a brand which a group ofattribute or a brand which a group of
consumers believe that is good enough orconsumers believe that is good enough ormeet their basic expectations.meet their basic expectations.
PointofDifferencePointofDifference A particular attribute orA particular attribute or
dimension ofa brand which a group ofdimension ofa brand which a group ofconsumers likes and perceives as theconsumers likes and perceives as the
uniqueness of the brand.uniqueness of the brand.
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Point ofDifferencesPoint ofDifferences
Other names:Other names:
Competitive Points ofParityCompetitive Points ofParity
Unique SellingPointUnique SellingPoint
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Positioning GuidelinesPositioning Guidelines
1.1. Defining and communicating theDefining and communicating the
competitive frame ofreferencecompetitive frame ofreference
2.2. Choosing points ofparity and points ofChoosing points ofparity and points ofdifferences.differences.
3.3. Establishing points ofparity andEstablishing points ofparity and
points ofdifferences.points ofdifferences.4.4. Updating positioning over timeUpdating positioning over time
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Brand ValuesBrand Values
CoresBrand ValuesCoresBrand Values
Set ofabstract associations(AttributesSet ofabstract associations(Attributes
and benefits) that characterize theand benefits) that characterize the 55 toto1010 most important aspects or dimensionsmost important aspects or dimensions
ofa brand.ofa brand.
When you think ofa brand, what comesWhen you think ofa brand, what comesto mind?to mind?
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Brand MantrasBrand Mantras
Brand MantraBrand Mantra
brand essencebrand essence
Brand core promisesBrand core promisesAn articulation of heart and soul of theAn articulation of heart and soul of the
brand.brand.
Short phrase that capture the essence orShort phrase that capture the essence orspirit of the brand positioning and brandspirit of the brand positioning and brandvalues.values.
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An exampleAn exampleA local (Thai) soymilk brandA local (Thai) soymilk brand -- VitamilkVitamilk
Core Brand ValuesCore Brand Values
SoySoy--basedbased
QualityQuality
HealthyHealthy
TastyTasty
SafetySafety
FillingFilling
For everyoneFor everyone
Widely available anywhere anytime.Widely available anywhere anytime.
Brand MantraBrand MantraVitamilkVitamilk is a tasty healthy drink.is a tasty healthy drink.