Brands and Stakeholder Relationships. What does “brand” mean? How are brands created and...

Brands and Stakeholder Relationships

What does “brand” mean?

How are brands created and maintained?

How are brand relationships created and maintained?

What is brand equity and how is it created?

Chapter Outline

Building Brand Relationships With

Customers


CustomersCreate CustomersCreate Customers

Reward: SalesReward: Sales Reward: More Sales and Profits

Reward: More Sales and ProfitsReward: SalesReward: Sales


Customers


CustomersCreate CustomersCreate Customers

Chapter Perspective: Changing World

TraditionalTraditionalProduct FocusProduct Focus Brand-FocusBrand-Focus

Opening Case: Siegel & Gale

IMC program developed by Siegel & Gale featuring:•New focus on benefits to customers in:

•Advertising•Brochures and newsletters•Sale presentations



Repositioning CaterpillarRepositioning Caterpillar

• Caterpillar sales stabilized and grew• Company culture began to change to

fit new identity

• Caterpillar sales stabilized and grew• Company culture began to change to

fit new identity





Repositioning CaterpillarRepositioning Caterpillar

Opening Case: Siegel & Gale

Challenge:Challenge:

Answer:Answer:

Results:Results:

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.

What is a Brand?

What Does “Brand” Mean?

Brand: A perception resulting from experiences with, and information about, a company or line of products

Branding: The process of creating a brand image that engages the hearts and minds of customers

The Role of Brands

• Identify the maker

• Simplify product handling

• Organize accounting

• Offer legal protection

• Signify quality

• Create barriers to entry

• Serve as a competitive advantage

• Secure price premium

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

What is a Brand Promise?

A brand promise is the marketer’s vision of what the brand must be and

do for consumers.

Brand Elements

These are those trademarkable devices that identify & differentiate the brand.

Types of Brand Elements

Brand Element Choice Criteria

Brand Names

• Captures the central theme or key associations of a product in a very compact and economical fashion

• Most difficult element for marketers to change– Closely tied to the product in the minds of

consumers

Brand Names (Examples)

Brand Names

• Naming guidelines–Simplicity and ease of pronunciation and spelling.

–Familiarity and meaningfulness.

–Differentiated, distinctive, and unique.

• Naming procedures–Define objectives

–Generate names

–Screen initial selection

–Study selected names

–Research the final name

–Select the final name

Uniform Resource Locators (URLs)

• Specify locations of pages on the Web

• Known as domain names

• Protect the brands from unauthorized use in other domain names

• Cybersquatting- Registering, trafficking in, or using a domain name with bad-faith to profit from: – The goodwill of a trademark belonging to

someone else.

Logos and Symbols

• Indicate origin, ownership, or association

• Range from corporate names or trademarks written in a distinctive form, to abstract designs that may:– Be completely unrelated to the corporate

name or activities

Brands are often represented by logos

Logos: Distinctive graphic designs used to communicate a product, company, or organization identity

Brand Symbols

Brand Characters

• Special type of brand symbol– One that takes on human or real-life

characteristics

• Introduced through advertising and can play a central role in ad campaigns and package designs

Brand Characters

Slogans

• Short phrases that communicate descriptive or persuasive information about the brand

• Function as useful “hooks” or “handles” to help consumers grasp the meaning of a brand

• Indispensable means of summarizing and translating the intent of a marketing program

Slogans (Examples)

• Like a good neighbor, State Farm is there

• Just do it

• Nothing runs like a Deere

• I’m lovin’ it

• We try harder

• Always low prices

Jingles

• Musical messages written around the brand

• Have catchy hooks and choruses that become permanently registered in the minds of listeners

• Enhance brand awareness by repeating the brand name in clever and amusing ways

Packaging

• Activity of designing and producing containers or wrappers

• From the perspective of both the firm and consumers, packaging must:– Identify the brand– Convey descriptive and persuasive

information– Facilitate product transportation and

protection– Assist in at-home storage– Aid product consumption

Packaging (Examples)

Differentiates a Product From Its Competitors


Makes a Promise to ConsumersMakes a Promise to ConsumersMakes a Promise to ConsumersMakes a Promise to Consumers



What Does “Brand” Mean?

What a Brand Does

What a Brand Does

Serves As the Driving, Unifying Force Directing All Functional

Areas, Including IMC

Serves As the Driving, Unifying Force Directing All Functional

Areas, Including IMC

Tales From the Real World

There is an tendency to think of most brands in terms of tangible product categories like soft drinks or breakfast cereal.

However, in the real world, there are many intangible brands. One example is the fact that every four years professionals from major MC agencies are enlisted in the U.S. presidential election campaigns—to help “brand” one of the candidates.

Each of These Universities Represents a Brand Image

The Power of a Brand

59% Chose Kellogg’s

59% Chose Kellogg’s

41% Chose No Brand

41% Chose No Brand

Consumers willing to pay $75 more for Hitachi than GEConsumers willing to pay $75 more for Hitachi than GE

Identical cereals tasted by consumers:Identical cereals tasted by consumers:

Vs.Vs.

Identical TV sets examined by consumers:Identical TV sets examined by consumers:

Vs.Vs.

Retailers are creating their own brands

Store Brands (a.k.a. house brand or private label): A brand used exclusively by one chain of stores for a line of products made to a store’s specification

Determining the Desired Brand Position


Developing Brand IdentificationDeveloping Brand IdentificationDeveloping Brand IdentificationDeveloping Brand Identification



How Are Brands Created?

3 KeySteps

3 KeySteps

Creating Brand ImageCreating Brand Image

Figure 3-1: Determining the Desired Brand Position

IMC In Action: Dr. Scholl’s

An IMC program featuring:• Revamped, more fashionable product

line

• Product placement on Television

• New distribution in shoe stores

An IMC program featuring:• Revamped, more fashionable product

line



Revitalize Dr. Scholl’s brandRevitalize Dr. Scholl’s brand

An IMC program featuring:• Revamped, more fashionable

product line



An IMC program featuring:• Revamped, more fashionable

product line



Revitalize Dr. Scholl’s brandRevitalize Dr. Scholl’s brand

Some Dr. Scholl’s shoes now sell for $169Some Dr. Scholl’s shoes now sell for $169

IMC In Action: Dr. Scholl’s

Challenge:Challenge:

Answer:Answer:

Results:Results:

Insight: Stakeholder Overlap

Organizations must assume that multiple stakeholder groups may be exposed to brand messages. In other words, stakeholders overlap. For example an IMC audit for a bank found that 95 percent of the bank’s employees were also bank customers and that 75 percent owned shares of the bank’s stock. Marketers must make sure that brand messages are acceptable to all stakeholders and that the presentation of the brand image and position is consistent for all of these groups.

Responsive-ness

Responsive-ness

ConsistencyConsistency AccessibilityAccessibility

CommitmentCommitment Responsive-ness

Responsive-ness

ConsistencyConsistency AccessibilityAccessibility

Aspects Fostered by the Company

Relationship Aspects


LikingLiking SatisfactionSatisfactionTrustTrust LikingLikingTrustTrust

Aspects Arising from the Consumer



Loyal Word of Mouth Advocates Can Be Highly Persuasive With Other Consumers

Loyal Word of Mouth Advocates Can Be Highly Persuasive With Other Consumers

Current Heavy Users Typically Account for Most of a Brand’s Revenue


Selling to Existing Customers Is Much Less Costly Than Attracting New Customers


Existing Brands Account for Most of the Brand Communication With Consumers








Maintaining Relationships Is Critical

Maintaining relationships is critical

Customer Relationship Management (CRM): The optimization of all customer contacts through the distribution and application of customer information. Simply stated, it is your promise, that no matter how your customers interact with you, you will always recognize who they are

Figure 3-5: Relative Importance of Different Stakeholder Groups

++

Brand licensingBrand licensing

Broadening distributionBroadening distribution

Brand extensionsBrand extensions

Co-brandingCo-brandingCo-brandingCo-branding

Brand extensionsBrand extensions

Broadening distributionBroadening distribution

What Is Brand Equity and How Is It Created?

Brand equity: The intangible value of a company beyond its physical net assets

4 Ways ofLeveraging4 Ways of

Leveraging

Final Note:

One of IMC’s most important contributions:

• Helping to build trust in brands…• …therefore enhancing consumer

relationships• Reason: An organization’s

communication with its stakeholders influences everything else it does

Bibliography

Principles of Advertising & IMC by Tom Duncan 2nd Edition, Published by McGraw-Hill Irwin.

Event Management For Tourism, Cultural, Business and Sporting Events by Lynn Van Der Wagen Brenda R. Carlos Published by Pearson Prentice Hall.

Advertising Principles and Practice by W. Wells, S. Moriarty and J. Burnett, Published by Prentice Hall International.

Integrated Marketing Communications by David Pickton & Amanda Broderick Published by Prentice Hall.

The End:

"The man who removes a mountain

Begins!

by carrying away small stones."

- Chinese Proverb

Brands and Stakeholder Relationships. What does “brand” mean? How are brands created and...

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