Branding and Positioning Chapter 2. What is Branding? Assigning a name, phrase, design, symbols or a...
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Transcript of Branding and Positioning Chapter 2. What is Branding? Assigning a name, phrase, design, symbols or a...
What is Branding?
• Assigning a name, phrase, design, symbols or a combination of these to a product, service, or a group of complimentary products
Discussion Points:• How important are brand names?• How important are brand names for
clothes? Why?• What additional product categories
are brand names important?• What product categories are brand
names not important?
What image is being conveyed by this Porsche advertisement?
What image is being conveyed by the Porsche Web site?
www.porsche.ca
Are the images consistent?
Brand Value – Customer Perspective
o Provides quality assurance in purchase decisions
o Reduces search time in purchase decisionso Provides psychological reinforcement and social
acceptance of purchases
Brand Value – Company Perspective
A strong brand can generate many benefits including:
o Positive customer feelings to new products and services
o Allows a company to charge more (if the brand is recognized and respected)
o Customer loyalty which may lead to more purchaseso Positive word of mouth endorsementso Higher level of channel powero The ability to attract quality employeeso More favourable ratings by financial observers and
analysts
Developing Brand Value
From introduction to post-purchase behaviouro Five dimensions:
o Brand awarenesso Associations customers make with brandso Attitudes customers have about the brand
performanceo Brand attachment by the customero Brand activity – how do customers use the
brand?
Discussion Exercise
o List the names of five brands you have a negative impression of?
o Why is the brand(s) conceived negatively?
Successful Brand Development
o Commitment to the brando Market penetrationo Research and understanding the brand’s
target marketo Building effective expansion programs and
fending off competitors.
Video – Nike
Questions for Discussion:
o What do you think of Nike’s Brand Management?
o What can other athletic apparel company’s learn from Nike?
What’s Happening?
• http://m.techcrunch.com/2013/01/11/now-app/
Building Brand Equity
Brand Equity – The value that stakeholders assign to a brand over and above the value of an equal but unbranded product
o Research current brand imageo Decide what makes the brand uniqueo Communicate brand’s uniquenesso Spend on advertising/communicationo Deliver on uniqueness
Companies oftencreate product iconsto develop an identity for their products, and increase brand equity.
Why is the Mr. Clean icon an effective representative for its product?
Benefits of Brand Equity
o Higher priceso Higher gross marginso Reduces customer switchingo Greater demand for the producto Prevents erosion of market share
Types of Brandso Family brands
o Multiple products under one brando Transfer associations
o Brand extension o New good or service, usually related to the existing
brando Flanker brands
o New brand within current categoryo www.marriott.ca
o Co-brandingo Private Label Brands
Flanker Brands Sold by Procter & Gamble
CosmeticsCoverGirlMax Factor
Dish washing
Hair care
CascadeDawnIvoryJoy
AussieHead & ShouldersHerbal EssencesInfusion 23Pantene
Changes in Private Brands
1. Quality improvement.
2. Lower prices.
3. Higher store loyalty.
4. Lower loyalty for manufacturer brands.
5. Increase in advertising of private brands.
6. Increase in quality of private brand in-
store displays.
o Focus on core brandso Increase advertisingo Introduce new productso Focus on in-store selling, packagingo Use alternative methods of marketing
Strategies Used to Combat Private Labels (National Brands)
Successful Brand Extensions
o Lipton tea – Lipton soup mixeso Kodak film – Kodak cameras and batterieso Ivory soap – Ivory shampoo, dishwashing liquido Barbie dolls – Barbie games, furniture, clotheso Honda bikes – Honda cars, lawnmowers,
generators
Unsuccessful Brand Extensions
o Dunkin’ Donuts – Dunkin’ Donuts cerealo Harley Davidson Bikes – Harley Davidson
cigaretteso Levis Jeans – Levis business wearo Mr. Coffee coffee makers – Mr. Coffee coffee
Factors in Brand Management
o Maintaining a Brands ImageoConsistency is key
o Rejuvenating a BrandoMay be necessary if firm has encountered
negative publicityo Repositioning a Brand
oMay be necessary when a brands target market has shrunk or firm can no longer meet customer expectations
Positioningo The process of creating a perception in the
consumer’s mind regarding the nature of the company and its products relative to competitors
o A product’s position is based on two elements:o The product’s standing relative to the competitiono How the product is perceived by consumers
o Positioning is an important criteria in brand development