Strategic Brand Management 1

BRANDING AND BRANDING AND MARKETING PROMOTION MARKETING PROMOTION

STRATEGIES (Part I)STRATEGIES (Part I)Core Text:

“Strategic Brand Management”by

Kevin Lane Keller (2nd Edition)

Presented by:

PROF. HIMMAT ADISARE

BRANDS AND BRAND BRANDS AND BRAND MANAGEMENTMANAGEMENT

Ref: Chapter 1 of Core Text

What is a Brand?What is a Brand?

Definition: “A brand is a product that adds other dimensions that differentiates it in some way from other products designed to satisfy the same need.”


Why Do Brands Matter?Why Do Brands Matter?

CONSUMERS: Identification of

Source of Product Assignment of

Responsibility to Product Maker

Risk Reducer

Search cost Reducer Promise, Bond, or

Pact with Maker of Product

Symbolic Device Signal of Quality


Why Do Brands Matter? (2)Why Do Brands Matter? (2)

MANUFACTURERS: Means of Identification

to Simplify Handling or Tracing

Means of Legally Protecting Unique Features

Signal of Quality Level to Satisfied Customers

Means of Endowing Products with Unique Associations

Source of Competitive Advantage

Source of Financial Returns


Can Anything Be BrandedCan Anything Be Branded??

Physical GoodsServicesRetailers and

DistributorsOnline Products

and Services

People and Organizations

Sports, Art and Entertainment

Geographic Locations

Ideas and Causes


Branding Challenges And Branding Challenges And OpportunitiesOpportunities

Savvy CustomersBrand ProliferationMedia FragmentationIncreased CompetitionIncreased CostsGreater Accountability


The Brand Equity ConceptThe Brand Equity Concept

Basic Principles of Branding and Brand Equity: Differences in outcomes arise from the “added value”

endowed to a product as a result of past marketing activity for the brand.

This value for a brand can be created in many different ways.

Brand equity provides a common denominator for interpreting marketing strategies and assessing the value of a brand.

There are many different ways in which the value of a brand can be manifested or exploited to benefit the firm.


Strategic Brand Management Strategic Brand Management ProcessProcess

Identifying and Establishing Brand Positioning and Values

Planning and Implementing Brand Marketing Programs

Measuring and Interpreting Brand Performance

Growing and Sustaining Brand Equity


CUSTOMER-BASED BRAND CUSTOMER-BASED BRAND EQUITYEQUITY


CHAPTER 2

Sources Of Brand EquitySources Of Brand Equity

Brand Awareness Consequences of

Brand Awareness Learning advantages Consideration

advantages Choice Advantages

Establishing Brand Awareness

Brand Image Strength of Brand

Associations Favorability of

Brand Associations Uniqueness of Brand

Associations


Building A Strong BrandBuilding A Strong Brand

The Four Steps of Brand Building:

1. Identity (Who are you?) 2. Meaning (What are you?) 3. Response (What about you?) 4. Relationship (What about you &

me?)Ref: Chapter 2 of Core Text

Customer-based Brand Equity Customer-based Brand Equity PyramidPyramid

Resonance

Judgments Feelings

Performance Imagery

Salience


Identity

Meaning

Response

Relationship

Customer-based Brand Equity Pyramid (2)Customer-based Brand Equity Pyramid (2)

Brand Salience: This relates to aspects of awareness of the brand

Brand Performance: This relates to ways in which product/ service meets customers’ needs

Brand Imagery: It’s how customers visualize a brand abstractly, with no relevance to what the brand actually does

Brand Judgments: The customers’ personal opinions and evaluations with regard to the brand

Brand Feelings: The customers’ emotional responses and reactions with respect to the brand

Brand Resonance: The ultimate relationship & level of identification that the customer has with the brand


BRAND POSITIONING AND BRAND POSITIONING AND VALUESVALUES

CHAPTER 3


Identifying and Establishing Identifying and Establishing Brand PositioningBrand Positioning

Basic Concepts Target Market Nature of Competition Points of Parity and Points of Difference


Identifying and Establishing Identifying and Establishing Brand Positioning (2)Brand Positioning (2)

Basic Concepts: According to the CBBE model, it is necessary to decide:-

1. Who the target consumer is 2. Who the main competitors are 3. How the brand is similar to these

competitors, and 4. How the brand is different from these

competitors



Target Market:Segmentation Bases:

a) Behavioral b) Demographic

c) Psychographic d) GeographicSegmentation Criteria:

a) Identifiability b) Size

c) Accessibility d) Responsiveness



Nature of Competition: Channels of Distribution Competitors’ Resources Competitors’ Capabilities Competitors’ Likely Intentions Other Competitive Factors (Porter’s 5-

Force Model refers)Ref to Chapter 3 of Core Text

Identifying and Establishing Identifying and Establishing Brand PositioningBrand Positioning

Points of Parity and Points of Difference: 1. Points of Difference Associations 2. Points of Parity Associations 3. Points of Parity versus Points of

Difference


Positioning GuidelinesPositioning Guidelines

1. Defining and Communicating the Competitive Frame of Reference

2. Choosing Points of Parity and Points of Difference

3. Establishing Points of Parity and Points of Difference

4. Updating Positioning Over Time


Positioning Guidelines (1)Positioning Guidelines (1)

Defining and Communicating the Competitive Frame of Reference:A starting point in defining a competitive frame of reference for brand positioning is to determine Category Membership. Membership indicates the products or set of products with which a brand competes. Communicating category membership informs the consumer about the goals that they might achieve by using a product or service.


Positioning Guidelines (2)Positioning Guidelines (2) Choosing Points of Parity and Points of Difference: Points of Parity: These are driven by the needs of

category membership and the necessity of negating competitors’ PODs.

Points of Difference: These are based on the following criteria:1. Desirability: In terms of a) Relevanceb) Distinctiveness, and c) Believablity2. Deliverability: In terms of a) Feasibilityb) Communicability, and c) Sustainability



Establishing Points of Parity and Points of Difference:

1. Separate the attributes: Launch two marketing campaigns, each one devoted to a different brand attribute or benefit.

2. Leverage Equity of another Entity: Link the brand with a well-liked celebrity, cause or event.

3. Redefine the Relationship: Use attitude change strategies to convert negative perspectives about the brand to positive ones.



Updating Positioning Over Time: 1. Laddering: This strategy is to deepen

the meaning of the brand to tap into core brand values or other more abstract considerations.

2. Reacting: This could imply no reaction to moderate or significant reactions depending on level of competitive threat.


CHOOSING BRAND CHOOSING BRAND ELEMENTS TO BUILD ELEMENTS TO BUILD

BRAND EQUITYBRAND EQUITY

CHAPTER 4


Criteria for Choosing Brand Criteria for Choosing Brand ElementsElements

1. Memorability2. Meaningfulness3. Likability4. Transferability5. Adaptability6. Protectability


Options and Tactics for Options and Tactics for Brand ElementsBrand Elements

1. Brand Names2. URLs (Uniform Resource Locators)3. Logos and Symbols4. Characters5. Slogans6. Jingles7. Packaging


DESIGNING MARKETING DESIGNING MARKETING PROGRAMS TO BUILD PROGRAMS TO BUILD

BRAND EQUITYBRAND EQUITY

CHAPTER 5


New Perspectives on New Perspectives on MarketingMarketing

Five Major Drivers of the New Economy: Philip Kotler identifies them as under:

1. Digitalization and connectivity 2. Disintermediation and Reintermediation 3. Customization and Customerization 4. Industry Convergence 5. New Customer and Company Capabilities

(Remaining topic is for Self-study)


Product StrategyProduct Strategy Perceived Quality and Value: 1. Brand Intangibles 2. TQM and Return on Quality 3. Value Chain Relationship Marketing: 1. Mass Customization 2. Aftermarketing 3. Loyalty Programs


Pricing StrategyPricing Strategy

Consumer Price Perceptions: Price Band strategies Value-based Pricing Strategies Setting Prices to Build Brand Equity: Value Pricing based on: a) Product design and

delivery b) Product costs, and c) Product prices Everyday Low Pricing (EDLP): A strategy based

on low pricing as well as discounts and promotions to consumers at regular intervals.


Channel StrategyChannel Strategy

Channel Design: Broadly, channel types can be classified into Direct and Indirect channels.

Direct Channels: a) Company-owned stores b) Leased/Rented shopping-space in larger department stores.

Indirect Channels: a) Distributors and Dealers b) Retailers c) other middlemen

Web Strategies: Today, these are extremely powerful channels if supported by efficient physical “brick & mortar” channels.


LEVERAGING SECONDARY LEVERAGING SECONDARY BRAND KNOWLEDGE TO BRAND KNOWLEDGE TO

BUILD BRAND EQUITYBUILD BRAND EQUITY

CHAPTER 7


Conceptualizing the Conceptualizing the Leveraging ProcessLeveraging Process

Creation of New Brand Associations:By making a connection between the brand and another entity, consumers may form a mental association from the brand to this entity and, consequently, to any or all associations, judgments, feelings and the like linked to that entity

Effects on Existing Brand Knowledge: Three factors are important in predicting the extent of leverage resulting from linking the brand to another entity:i) Awareness and knowledge of the entityii) Meaningfulness of the knowledge of the entity, and iii) Transferability of the knowledge of the entity


CompanyCompany

The branding strategies adopted by a company that makes a product or offers a service are an important determinant of the strength of association from the brand to the company and any other existing brands. Three main branding options exist for a new brand:

1. Create a new brand 2. Adapt or modify an existing brand 3. Combine an existing and new brand


Country of OriginCountry of Origin

Besides the company that makes the product, the country or geographic location from which it is seen as originating may also become linked to the brand and generate secondary associations. Thus, a customer may choose to wear Italian suits, exercise in American sports shoes, drive a German car, and drink English beer.


Channels of DistributionChannels of Distribution

Channels of distribution can directly affect the equity of the brands they sell by the supporting actions that they take. Retail stores can indirectly affect the brand equity of the products they sell by influencing the nature of associations that are inferred about these products on the basis of the associations linked to the retail stores in the minds of consumers.


Co-BrandingCo-Branding Co-branding: Also called brand bundling or

brand alliances-occurs when two or more existing brands are combined into a joint product or are marketed together in some fashion.

Ingredient branding: This is a special case of co-branding that involves creating brand equity for materials, components, or parts that are necessarily contained within other branded products.


LicensingLicensingLicensing involves contractual arrangements whereby firms can use the names, logos, characters, and so forth of other brands to market their own brands for some fixed fee. Because it can be a shortcut means of building brand equity, licensing has gained popularity in recent years.


Celebrity Endorsement (1)Celebrity Endorsement (1)

Using well-known and admired people to promote products is a widespread phenomenon with a long marketing history. The rationale behind these strategies is that a famous person can:

1. Draw attention to a brand, and 2. Shape the perceptions of the brand by virtue

of the inferences that consumers make based on the knowledge they have about the famous person.


Celebrity Endorsement (2)Celebrity Endorsement (2) Potential Problems: 1. Celebrity endorsers can be overused by endorsing

so many products that they lack any specific product meaning or are just seen as overly opportunistic or insincere.

2. There must be a reasonable match between the celebrity and the product.

3. Celebrity endorsers can lose popularity thus diminishing their market value to the brand.

4. Many consumers feel that celebrities are doing the endorsement only for money.


Sporting, Cultural, or Other EventsSporting, Cultural, or Other Events

1. A brand may seem more likable or even trustworthy by becoming linked to an event.

2. Sponsored events can contribute to brand equity by becoming associated to the brand and improving brand awareness, adding new associations, or improving the strength, favorability, and uniqueness of associations.


DEVELOPING A BRAND DEVELOPING A BRAND EQUITY MEASUREMENT EQUITY MEASUREMENT

AND MANAGEMENT AND MANAGEMENT SYSTEMSYSTEM

CHAPTER 8


The Brand Value ChainThe Brand Value Chain

Value Stages:

1. Marketing Program Investment 2. Customer Mindset 3. Market Performance 4. Shareholder Value


Value Stages (1)Value Stages (1)

Marketing Program Investment: The ability of a marketing program investment to transfer or multiply further down the chain will depend on qualitative aspects of the marketing program via the program multiplier.

The Program Multiplier: Four factors are important:

1. Clarity 2. Relevance 3. Distinctiveness, and 4. Consistency



Customer Mindset: Five dimensions have emerged from research as important measures of the customer mindset:

1. Brand Awareness 2. Brand Associations

3. Brand Attitudes 4. Brand Attachment

5. Brand Activity Customer Multiplier: Three essential factors are:

1. Competitive Superiority 2. Channel and other intermediary support 3. Customer size and profile



Market Performance: Six dimensions need to be addressed:1. Price Premiums 2. Price Elasticities3. Market Share 4. Brand Expansion5. Cost Structure 6. Brand Profitability

Market Multiplier: Following factors need to be considered:1. Market Dynamics 2. Growth Potential3. Risk Profile 4. Brand Contributions


Value Stages (4)Value Stages (4) Stakeholder Value: Based on all available and

forecasted information about a brand and many other considerations, the financial marketplace then formulates opinions and makes various assessments that have direct financial implications for the brand value. Three important indicators are:

1. Stock price 2. Price/earnings multiple, and 3. Overall market capitalization of the firm


The Brand Value ChainThe Brand Value Chain Implications: 1. A necessary condition for value creation is a well-

funded, well-designed, and well-implemented marketing program.

2. Value creation involves more than just the initial marketing investment.

3. Each of the three multipliers can increase or decrease market value from stage to stage.

4. The brand value chain provides a detailed roadmap for tracking value creation enabling market research and intelligence efforts.


Designing Brand Tracking Designing Brand Tracking StudiesStudies

What to Track: 1. Product Brand Tracking 2. Corporate or Family Brand Tracking 3. Global Tracking How to Conduct Tracking Studies: 1. Who to track 2. When and where to track How to Interpret Tracking Studies


Designing Brand Tracking Studies (1)Designing Brand Tracking Studies (1)

What to Track: Three distinct surveys can be conducted for:

1. Product-Brand Tracking: The six-block pyramid for brand-building can be used as a basis for design of the questionnaire.

2. Corporate or Family Brand Tracking: Some additional questions may be added to establish levels of corporate credibility and corporate brand associations.

3. Global Tracking: A broader set of background measures are needed to put brand development in those markets in the right perspective .


Designing Brand Tracking Studies (2)Designing Brand Tracking Studies (2)

Who to Track: 1. Current Customers 2. Potential Customers 3. Channel Members 4. Frontline Employees (Services sector) When and Where to Track: Options are: Continuous Tracking Studies Based on Stage of Product Life Cycle Based on depth of Brand Equity


Designing Brand Tracking Studies (3)Designing Brand Tracking Studies (3) How to Interpret Tracking Studies: For tracking measures to

facilitate actionable insights and recommendations, they must be reliable and sensitive as possible. This may require framing of questions in a comparative or temporal manner. It is also necessary to decide on appropriate cutoffs. For example:

What is a sufficiently high level of brand awareness? When are brand associations sufficiently strong, favorable,

and unique? How positive should brand judgments and feelings be? What are reasonable expectations for the amount of brand

resonance?


Establishing a Brand Equity Establishing a Brand Equity Management SystemManagement System

Brand Equity Charter

Brand Equity Report

Brand Equity Responsibilities: 1. Overseeing Brand Equity 2. Organizational Design and Structure 3. Managing Marketing Partners


Establishing a Brand Equity Establishing a Brand Equity Management System (1)Management System (1)

Brand Equity Charter: A formalized document should spell out the following:

The firm’s view of the brand equity concept. The scope of the key brands of the firm. Specify the actual and desired equity for a brand at all

relevant levels i.e. at individual product level and corporate level.

Strategies for managing brand equity. Outline specific tactical guidelines for marketing

programs. Trademark usage, packaging & communications



Brand Equity Report: Important market information that should be included:

1. Product shipments and movement through channels of distribution.

2. Relevant cost breakdowns 3. Price and discount schedules 4. Sales and market share information 5. Profit assessments



Brand Equity Responsibilities: 1. Overseeing Brand Equity: Aspects that are

important:a) Review brand sensitive materialb) Review the status of key brand initiativesc) Review brand sensitive projectsd) Review new product and distribution strategies with respect to core brand valuese) Resolve brand positioning conflicts


Establishing a Brand Equity Establishing a Brand Equity Management System (3-contd)Management System (3-contd)

Brand Equity Responsibilities: 2. Organizational Structure & Design: The

current market trends are redefining job requirements and duties. The traditional marketing department is disappearing from a number of companies that are exploring other ways to conduct their marketing functions through business groups, multidisciplinary teams and so on.


Establishing a Brand Equity Establishing a Brand Equity Management System (3-contd)Management System (3-contd)

Brand Equity Responsibilities: 3. Managing Marketing Partners: The

performance of a brand also depends on the actions taken by outside suppliers and marketing partners. Hence, these relationships must be managed carefully. Many leading global firms have been consolidating their marketing partnerships and reducing the number of outside suppliers. (Ex: Levi Strauss value chain)

Ref: Chapter 8 of Core Text (END OF PART I)

Strategic Brand Management 1

Education

Transcript of Strategic Brand Management 1