Brand mgt by sachin
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Transcript of Brand mgt by sachin
What is a Brand?
A brand is a name, term, sign, symbol, or design which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from
those of competitors.
2
New Branding Challenges
Brands are important as ever
◦ Consumer need for simplification
◦ Consumer need for risk reduction
Brand management is as difficult as ever
◦ Savvy consumers
◦ Increased competition
◦ Decreased effectiveness of traditional marketing tools and emergence of new marketing tools
◦ Complex brand and product portfolios
3
The Customer/Brand Challenge
In this difficult environment, marketers must have a keen understanding of:
◦ customers
◦ brands
◦ the relationship between the two
4
The Concept of Brand Equity
The brand equity concept stresses the importance of the brand in marketing strategies.
Brand equity is defined in terms of the marketing effects uniquely attributable to the brand.
◦ Brand equity relates to the fact that different outcomes result in the marketing of a product or service because of its brand name, as compared to if the same product or service did not have that name.
5
The Concept of Customer-Based Brand Equity
Customer-based brand equity
◦ Differential effect
◦ Customer brand knowledge
◦ Customer response to brand marketing
6
Determinants of Customer-Based Brand Equity
◦ Customer is aware of and familiar with the brand
◦ Customer holds some strong, favorable, and unique brand associations in memory
7
Building Customer-Based Brand Equity
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
8
Benefits of Customer-Based Brand Equity
Enjoy greater brand loyalty, usage, and affinity
Command larger price premiums
Receive greater trade cooperation & support
Increase marketing communication effectiveness
Yield licensing opportunities
Support brand extensions.
9
Customer-Based Brand Equity as a “Bridge”
Customer-based brand equity represents the “added value” endowed to a product as a result of past investments in the marketing of a brand.
Customer-based brand equity provides direction and focus to future marketing activities
10
The Key to Branding
For branding strategies to be successful, consumers must be convinced that there are meaningful differences among brands in the product or service category.
Consumer must not think that all brands in the category are the same.
PERCEPTION = VALUE
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Brand Positioning
Brand Positioning
◦ Brand positioning is all about identifying the optimal location in our customers’ minds for our Brand and our competitors
◦ Proper positioning makes it easier to facilitate understanding of our Brand
Taken to its’ logical conclusion, you might think of the Principle as an indicator of a brand’s position
First Steps
The first step is to identify and establish Brand positioning and brand values
Positioning is the foundation for creating and fostering the desired knowledge and perceptions of your customers ---the 3 types of associations in memory-
◦ We can really only manage one (positive), can respond to a second (negative), and have no control over the third (idiosyncratic)
Proper Positioning
Proper positioning
◦ Clarifies what the Brand is all about
◦ How it is both unique and similar to competitive brands
◦ Why customers should purchase and use the Brand
Example- Monaco Smart Chips
“Not fried” First time in chips
Gap in the market today for a healthy and tasty snack
Targeted mainly towards health conscious urban youth
Reinforced by Amir Khan saying “you’ll need this” for an extra large t-shirt
In order to Position a Brand…
…you must decide
◦ Who the Target Consumer is
◦ Who your main competitors are
◦ How the Brand is similar to your competitors
◦ How the Brand is different from your competitors
Where do you get this information?
◦ Your BRAND INVENTORY!!
Target Market Segmentation
A market segment should have similar knowledge structures and brand knowledge
◦ Similar knowledge structures might mean similar perceptions and beliefs about your Brand
There are 2 ways to segment
◦ Descriptive: characteristics of the individuals in the market
◦ Behavioral: grouped by how individuals in the market perceive or use the product
Toothpaste Segmentation
Four main segments
Sensory segment
◦ Whiteness
Sociables
◦ Good breath
Worriers
◦ Decay Prevention
Independent
◦ Low Price 3 stripes, one for
each of the 3 main
segments
Good breath
Decay Prevention
Low Price
Target Market Segmentation
Which works better? Behavioral
◦ Easier to match perceptions (right/wrong) or beliefs (right/wrong) with strategy (reinforce/change).
◦ Many times, behavior and descriptive go hand in hand
Demographics may be basis of targeting, but tend to represent some underlying behavioral reason
◦ In some cases, demographics may mask underlying differences
Advantages of demographic segmentation
Demographic segmentation is well known, easier to buy media on that basis
However, with the emergence of non-traditional media, this advantage is getting smaller
◦ Web ads can target by demographics traditionally difficult to access
Working executives, College students
Criteria for a Segment
Identifiability
◦ Can the segment be easily identified?
Size
◦ It is big enough to bother?
Accessibility
◦ Are distribution outlets and media available to us to reach the segment?
Responsiveness
◦ How favorably will the segment respond to a tailored marketing program? (this one is tough to quantify)
The Competition
Market Segments define competitors
◦ They are targeting the same segments
Don’t be too narrow in your definition of competitors
Consider Sprite
◦ Product Type (non-cola soft drinks)
◦ Product Category (all soft drinks)
◦ Product Class (all beverages)
Part 3: POP and POD
POD (Point of Difference)
◦ Strong, favorable, unique brand associations
◦ May be any kind of attribute or benefit
Two types of PODs
◦ Attribute Based
Functional, performance related differences
◦ Image Based
Affective, experiential, brand image related
differences
Part 3: POP and POD
POP (Point of Parity)
◦ Associations that are shared with other brands
Two types
◦ Category: attributes that are required to include your product as a member of that category
◦ Competitive: POP that negate your competitors PODs
POPs can be “good enough”, but PODs should be “superior
Similar concepts
Unique Selling Proposition (USP; Reeves and Bates)
◦ Advertisers should give a compelling reason to buy a product that competitors could not match
What component of the Suzuki reflects this?
Sustainable Competitive Advantage (SCA)
The advantage of delivering superior value in the marketplace for a prolonged period of time
Further, SCAs can result from any component of the firm
Similar to notion that Principle exists in every part of the firm
27
POP AND POD: BMW over the years
1971
1975
1985
1991
• International
• Desirability
• Fun to drive
• Economical
• Affluence, exclusivity
• Fun to drive
• Affluence, exclusivity
• Fun to drive
Strategic Brand Management
Strategic brand management involves the design and implementation of marketing programs and activities to build, measure, and manage brand equity.
The strategic brand management process is defined as involving four main steps:
1) Identifying and establishing brand positioning and values
2) Planning and implementing brand marketing programs
3) Measuring and interpreting brand performance
4) Growing and sustaining brand equity28
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Strategic Brand Management Process
Mental maps
Competitive frame of reference
Points-of-parity and points-of-difference
Core brand values
Brand mantra
Mixing and matching of brand elements
Integrating brand marketing activities
Leveraging of secondary associations
Brand Value Chain
Brand audits
Brand tracking
Brand equity management system
Brand-product matrix
Brand portfolios and hierarchies
Brand expansion strategies
Brand reinforcement and revitalization
KEY CONCEPTSSTEPS
Grow and Sustain
Brand Equity
Identify and Establish
Brand Positioning and Values
Plan and Implement
Brand Marketing Programs
Measure and Interpret
Brand Performance
Motivation for Customer-Based Brand Equity Model
Marketers know strong brands are important but aren’t always sure how to build one.
CBBE model was designed to be …
◦ comprehensive
◦ cohesive
◦ well-grounded
◦ up-to-date
◦ actionable
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Rationale of Customer-Based Brand Equity Model
Basic premise: Power of a brand resides in the minds of customers
Challenge is to ensure customers have the right types of experiences with products & services and their marketing programs to create the right brand knowledge structures:
◦ Thoughts
◦ Feelings
◦ Images
◦ Perceptions
◦ Attitudes
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Building Customer-Based Brand Equity
Building a strong brand involves a series of steps as part of a “branding ladder”
A strong brand is also characterized by a logically constructed set of brand “building blocks.”
◦ Identifies areas of strength and weakness
◦ Provides guidance to marketing activities
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CUSTOMER-BASED BRAND EQUITY PYRAMID
RESONANCE
SALIENCE
JUDGMENTS FEELINGS
PERFORMANCE IMAGERY
4. RELATIONSHIPS =
What about you & me?
3. RESPONSE =
What about you?
2. MEANING =
What are you?
1. IDENTITY =
Who are you?
Salience Dimensions
Depth of brand awareness
◦ Ease of recognition & recall
◦ Strength & clarity of category membership
Breadth of brand awareness
◦ Purchase consideration
◦ Consumption consideration
34
Performance Dimensions
Primary characteristics & supplementary features
Product reliability, durability, and serviceability
Service effectiveness, efficiency, and empathy
Style and design
Price
35
Imagery Dimensions User profiles
◦ Demographic & psychographic characteristics
◦ Actual or aspirational
◦ Group perceptions -- popularity
Purchase & usage situations
◦ Type of channel, specific stores, ease of purchase
◦ Time (day, week, month, year, etc.), location, and context of usage
Personality & values
◦ Sincerity, excitement, competence, sophistication, & ruggedness
History, heritage, & experiences
◦ Nostalgia
◦ Memories36
Judgment Dimensions
Brand quality
◦ Value
◦ Satisfaction
Brand credibility
◦ Expertise
◦ Trustworthiness
◦ Likability
Brand consideration
◦ Relevance
Brand superiority
◦ Differentiation
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Resonance Dimensions
Behavioral loyalty
◦ Frequency and amount of repeat purchases
Attitudinal attachment
◦ Love brand (favorite possessions; “a little pleasure”)
◦ Proud of brand
Sense of community
◦ Kinship
◦ Affiliation
Active engagement
◦ Seek information
◦ Join club
◦ Visit web site, chat rooms
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40
Customer-Based Brand Equity Model
Consumer-
Brand
Resonance
Brand Salience
Consumer
Judgments
Consumer
Feelings
Brand
Performance
Brand
Imagery
INTENSE, ACTIVE
LOYALTY
RATIONAL &
EMOTIONAL
REACTIONS
POINTS-OF-
PARITY &
POINTS-OF-
DIFFERENCE
DEEP, BROAD
BRAND
AWARENESS
Brand Positioning
Define competitive frame of reference
◦ Target market
◦ Nature of competition
Define desired brand knowledge structures
◦ Points-of-parity
necessary
competitive
◦ Points-of-difference
strong, favorable, and unique brand associations
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Issues in Implementing
Brand Positioning
Establishing Category Membership
Identifying & Choosing POP’s & POD’s
Communicating & Establishing POP’s & POD’s
Sustaining & Evolving POD’s & POP’s
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Identifying & Choosing
POP’s & POD’s
Desirability criteria (consumer perspective)◦ Personally relevant
◦ Distinctive & superior
◦ Believable & credible
Deliverability criteria (firm perspective)◦ Feasible
◦ Profitable
◦ Pre-emptive, defensible & difficult to attack
44
Major Challenges in
Positioning Find compelling & impactful points-
of-difference (MacMillan & McGrath, HBR, ‘97)◦ How do people become aware of their need for
your product and service?
◦ How do consumers find your offering?
◦ How do consumers make their final selection?
◦ How do consumers order and purchase your product or service?
◦ What happens when your product or service is delivered?
◦ How is your product installed?
◦ How is your product or service paid for?
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Major Challenges in
Positioning Find compelling & impactful points-
of-difference (cont.) ◦ How is your product stored?
◦ How is your product moved around?
◦ What is the consumer really using your product for?
◦ What do consumers need help with when they use your product?
◦ What about returns or exchanges?
◦ How is your product repaired or serviced?
◦ What happens when your product is disposed of or no longer used?
46
Communicating & Establishing
POP’s & POD’s Create POP’s and POD’s in the face of
attribute & benefit trade-offs◦ Price & quality
◦ Convenience & quality
◦ Taste & low calories
◦ Efficacy & mildness
◦ Power & safety
◦ Ubiquity & prestige
◦ Comprehensiveness (variety) & simplicity
◦ Strength & refinement
47
Strategies to Reconcile
Attribute & Benefit Trade-Offs
Establish separate marketing programs
Leverage secondary association (e.g., co-
brand)
Re-define the relationship from negative to
positive.
48
Core Brand Values
Set of abstract concepts or phrases that
characterize the 5-10 most important
dimensions of the mental map of a brand.
Relate to points-of-parity and points-of-
difference
Mental Map Core Brand Values Brand
Mantra
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Brand Mantras
A brand mantra is an articulation of the “heart and soul” of the brand.
◦ Brand mantras are short three to five word phrases that capture the irrefutable essence or spirit of the brand positioning and brand values.
Nike
◦ Authentic Athletic Performance
Disney
◦ Fun Family Entertainment
51
Outline
The mandate for effectiveness
What makes an ad effective?
The world of advertising
The five players of advertising
The evolution of advertising
The Mandate for
Effectiveness
Today advertising is in a bind
Advertisers expect specific results that lead to sales
Advertising must be effective
55
What Makes an Ad
Effective?Effective ads work on two levels:
with consumers and with advertisers
Characteristics of effective ads:
◦ Strategy
◦ -
◦ Execution
◦ Advertising must be goal directed
56
The World of Advertising
Defining advertising
• A paid form of communication
• A sponsor is identified
• Tries to persuade or influence the
consumer to do something
• Conveyed through mass media
• Reaches a large audience
• Is nonpersonal
57
Types of Advertising Brand advertising
Retail/local advertising
Political advertising
Directory advertising
Direct-response advertising
Business-to-business advertising
Institutional advertising
Public service advertising (PSA)
Interactive advertising
58
Functions of Advertising
Provide product and brand
information
Provide incentives to take action
Provide reminders and reinforcement
60
The Five Players of Advertising
Advertiser
Advertising agency
◦ The advertising department
◦ The in-house agency
Media
Vendors
Target audience
61
The Evolution of Advertising
Age of print
Industrial revolution and emergence of consumer society
Modern advertising: Agencies, science and creativity
Accountability era
62
Current Advertising Issues
Interactive advertising
Globalization
Niche marketing
Integrated marketing communications (IMC)
Consumer Power
63
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Complex,
Varied
Marketing
Activity
Comprehensive,
Robust
Marketing
Measures
Detailed,
Rich
Marketing
Models
MARKETING PLANNING PROCESS
Role of Integrated Marketing
Communications
Marketing communications …
◦ are the “voice” of the brand and are a means by
which it can establish a dialogue and build
relationships with consumers.
◦ allow marketers to inform, persuade, incent,
and remind consumers directly or indirectly
◦ can contribute to brand equity by establishing
the brand in memory and linking strong,
favorable, and unique associations to it.
66
Role of Integrated Marketing
Communications (Cont.)
◦ Consumers can be told or shown how and why a product is used, by what kind of person, and where and when;
◦ Consumers can learn about who makes the product and what the company and brand stand for
◦ Consumers be given an incentive or reward for trial or usage
◦ Brands can be linked to other … People
Places
Events
Brands
Experiences
Feelings
Things 67
Simple Test for
Marketing Communications
1. 3. 2.
Current Desired
Brand Brand
Knowledge Knowledge
68
Integrated Marketing Communications
and Customer-Based Brand Equity
One implications of the CBBE framework is
that the manner in which brand
associations are formed does not matter --
only the resulting strength, favorability, and
uniqueness
69
Designing Integrated Marketing
Communications Programs
From the perspective of customer-based brand
equity, marketers should evaluate all possible
communication options available to create
knowledge structures according to effectiveness
criteria as well as cost considerations.
Different communication options have different
strengths and can accomplish different
objectives.
70
Alternative Communication Options
(Consumer)
Media Advertising (TV, radio, newspapers, magazines)
Direct Response Advertising
Interactive (on-line) Advertising & Web Sites
Outdoor Advertising (billboards, posters, cinema)
Point-of-Purchase Advertising
Trade Promotions
Consumer Promotions
Sponsorship of Event Marketing
Publicity or Public Relations
71
Alternative Communication Options
(Business-to-Business)
Media Advertising (TV, radio, newspaper, magazines)
Trade Journal Advertising
Interactive (on-line) Advertising & Web Sites
Directories
Direct Mail
Brochures & Sales Literature
Audio-Visual Presentation Tapes
Giveaways
Sponsorship or Event Marketing
Exhibitions, Trade Shows, Conventions
Publicity or Public Relations
72
Print Ad Evaluation Criteria
Is the message clear at a glance?
Is the benefit in the headline?
Does the illustration support the headline?
Does the first line of the copy support or
explain the headline and illustration?
Is the ad easy to read and follow?
Is the product easily identified?
Is the brand or sponsor clearly identified?
73
Ad Campaign Considerations
Campaigns make brands -- not single ads
Be creative and develop creative themes
◦ Avoid slavishly sticking to executional formulas
Brand communications should sing like a choir
◦ Multiple voices
◦ Multiple notes
Find fresh consumer insights & compelling brand
truths
Productively conduct ad research
74
IMC Case Study
CMPB Success Factors
Smart strategy
◦ Relative deprivation
Imaginative creative
◦ Funny but relevant
Clever hook
◦ “Got milk?” slogan
Timely secondary media
◦ In store
Right partners
75
Common Mistakes in
Developing Advertising
Failure to distinguish ad positioning (what
you say) from ad creative (how you say it)
Mistaken assumptions about consumer
knowledge
Improperly positioned
Failure to break through the clutter
Distracting, overpowering creative in ads
76
Common Mistakes in
Developing Advertising
(cont.)
Under-branded ads
Failure to use supporting media
Changing campaigns too frequently
Substituting ad frequency for ad quality
77
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Communication
Option A
Communication Option C
Communication
Option B
Audience Communication Option Overlap
Note: Circles represent the market segments reached by various communication options.
Shaded portions represent areas of overlap in communication options.
Evaluating IMC Programs
Coverage - what proportion of the target
audience is reached by each
communication option employed, as well as
how much overlap exists among options.
Cost - what is the per capita expense.
79
Evaluating IMC Programs
(cont.) Contribution - the collective effect on
brand equity in terms of
◦ enhancing depth & breadth of awareness
◦ improving strength, favorability, & uniqueness of
brand associations
Commonality - the extent to which
information conveyed by different
communication options share meaning
80
Evaluating IMC Programs (cont.)
Complementarity - the extent to which
different associations and linkages are
emphasized across communication options
Versatility - the extent to which information
contained in a communication option works
with different types of consumers Different communications history
Different market segments
81
“Keller Be’s”
Be analytical: Use frameworks of consumer
behavior and managerial decision-making to
develop well-reasoned communication programs
Be curious: Fully understand consumers by using
all forms of research and always be thinking of how
you can create added value for consumers
Be single-minded: Focus message on well-
defined target markets (less can be more)
Be integrative: reinforce your message through
consistency and cuing across all communications
82
“Keller Be’s”
Be creative: State your message in a unique fashion; use alternative promotions and media to create favorable, strong, and unique brand associations
Be observant: Monitor competition, customers, channel members, and employees through tracking studies
Be realistic: Understand the complexities involved in marketing communications
Be patient: Take a long-term view of communication effectiveness to build and manage brand equity
83