11.1

CHAPTER 11:CHAPTER 11: DESIGNING AND IMPLEMENTING DESIGNING AND IMPLEMENTING

BRANDING STRATEGIESBRANDING STRATEGIES

11.2

Branding strategyBranding strategy Branding strategy is critical because it Branding strategy is critical because it

is the means by which the firm can help is the means by which the firm can help consumers understand its products and consumers understand its products and services and organize them in their services and organize them in their minds. minds.

Two important strategic tools: The Two important strategic tools: The brand-product matrixbrand-product matrix and the and the brand brand hierarchyhierarchy help to characterize and help to characterize and formulate branding strategies by formulate branding strategies by defining various relationships among defining various relationships among brands and products. brands and products.

11.3

Branding Strategy or Brand Branding Strategy or Brand ArchitectureArchitecture

The The branding strategybranding strategy for a firm for a firm reflects the number and nature of reflects the number and nature of common or distinctive brand common or distinctive brand elements applied to the different elements applied to the different products sold by the firm.products sold by the firm. Which brand elements can be applied to Which brand elements can be applied to

which products and the nature of new which products and the nature of new and existing brand elements to be and existing brand elements to be applied to new productsapplied to new products

11.4

Brand-Product MatrixBrand-Product Matrix

Must define:Must define: Brand-Product relationships (rows)Brand-Product relationships (rows)

Line and category extensionsLine and category extensions Product-Brand relationships (columns)Product-Brand relationships (columns)

Brand portfolioBrand portfolio

1 2 3 4

A

B

C

Products

Brands

11.5

Important DefinitionsImportant Definitions Product lineProduct line

A group of products within a product A group of products within a product category that are closely relatedcategory that are closely related

Product mix (product assortment)Product mix (product assortment) The set of all product lines and items that The set of all product lines and items that

a particular seller makes available to a particular seller makes available to buyersbuyers

Brand mix (brand assortment)Brand mix (brand assortment) The set of all brand lines that a particular The set of all brand lines that a particular

seller makes available to buyersseller makes available to buyers

11.6

Ford Brand PortfolioFord Brand Portfolio

11.7

Designing a Brand Designing a Brand PortfolioPortfolio

Basic principles:Basic principles: Maximize market coverageMaximize market coverage so that no so that no

potential customers are being ignoredpotential customers are being ignored Minimize brand overlapMinimize brand overlap so that brands so that brands

aren’t competing among themselves to aren’t competing among themselves to gain the same customer’s approval gain the same customer’s approval

11.8

Brand HierarchyBrand Hierarchy A means of summarizing the A means of summarizing the

branding strategy by displaying the branding strategy by displaying the number and nature of common and number and nature of common and distinctive brand elements across distinctive brand elements across the firm’s products, revealing the the firm’s products, revealing the explicit ordering of brand elementsexplicit ordering of brand elements

A useful means of graphically A useful means of graphically portraying a firm’s branding portraying a firm’s branding strategy strategy

11.9

Brand Hierarchy Tree: Brand Hierarchy Tree: ToyotaToyota

Toyota Corporation

Toyota(Trucks)

Toyota(SUV/vans)

LexusToyotaFinancialServices

Toyota(Cars)

Corolla PriusAvalon Celica ECHO MatrixMR2

SpyderCamry

CESLE

SELEXLE

Platinum EditionXLXLS

SESLE

11.10

Brand Hierarchy LevelsBrand Hierarchy Levels

Family Brand (Buick)

Corporate Brand (General Motors)

Modifier: Item or Model (Ultra)

Individual Brand (Park Avenue)

11.11

Corporate Brand EquityCorporate Brand Equity Occurs when relevant constituents Occurs when relevant constituents

hold strong, favorable, and unique hold strong, favorable, and unique associations about the corporate associations about the corporate brand in memorybrand in memory

Encompasses a much wider range of Encompasses a much wider range of associations than a product brandassociations than a product brand

11.12

Family BrandsFamily Brands Brands applied across a range of Brands applied across a range of

product categoriesproduct categories An efficient means to link common An efficient means to link common

associations to multiple but distinct associations to multiple but distinct productsproducts

11.13

Individual BrandsIndividual Brands Restricted to essentially one product Restricted to essentially one product

categorycategory There may be multiple product types There may be multiple product types

offered on the basis of different offered on the basis of different models, package sizes, flavors, etc.models, package sizes, flavors, etc.

11.14

Number of Hierarchy LevelsNumber of Hierarchy Levels Principle of simplicityPrinciple of simplicity

Employ as few levels as possibleEmploy as few levels as possible Principle of clarityPrinciple of clarity

Logic and relationship of all brand Logic and relationship of all brand elements employed must be obvious elements employed must be obvious and transparentand transparent

11.15

Brand Architecture Brand Architecture GuidelinesGuidelines

Adopt a strong customer focusAdopt a strong customer focus Avoid over-brandingAvoid over-branding Establish rules and conventions and be Establish rules and conventions and be

disciplineddisciplined Create broad, robust brand platformsCreate broad, robust brand platforms Selectively employ sub-brands as means Selectively employ sub-brands as means

of complementing and strengthening of complementing and strengthening brandsbrands

Selectively extend brands to establish Selectively extend brands to establish new brand equity and enhance existing new brand equity and enhance existing brand equitybrand equity

11.16

Using Cause Marketing to Using Cause Marketing to Build Brand EquityBuild Brand Equity

The process of formulating and The process of formulating and implementing marketing activities implementing marketing activities that are characterized by an offer that are characterized by an offer from the firm to contribute a specified from the firm to contribute a specified amount to a designated cause when amount to a designated cause when customers engage in revenue-customers engage in revenue-providing exchanges that satisfy providing exchanges that satisfy organizational and individual organizational and individual objectives objectives

11.17

Green MarketingGreen Marketing A special case of cause marketing A special case of cause marketing

that is particularly concerned with that is particularly concerned with the environmentthe environment

Explosion of environmentally Explosion of environmentally friendly products and marketing friendly products and marketing programsprograms

11.18

Crisis Marketing Crisis Marketing GuidelinesGuidelines

The two keys to effectively managing The two keys to effectively managing a crisis are that the firm’s response a crisis are that the firm’s response should be swift and that it should be should be swift and that it should be sincere. sincere.