brands & branding management presentation & discussion
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8/2/2019 Brands & Branding Management Presentation & Discussion
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Brands and Brand
Management
Introduction and Discussion
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The Issue of Branding
Branding simplifies the complexity of
the offering via brand elements such as:
Brand names
Logos
Symbols
Package designs
Branding helps in the thought processes of
consumers when they are considering
purchasing or purchasing an offering.
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A brand name must be:
Unique
Distinctive
Easy to rememberEasy to pronounce
Relevant to the offering
Positive about the offering
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The Issue of Branding contd.
Branding helps in reducing risk
associated with an offering.
Used as a differentiating criteria between
offerings.
The genesis/basis of brand management
is consumer perceptionsthe need to
satisfy consumers perceived differences
between offerings.
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Let us define a brand..
Class exercise
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So, what exactly is a brand?
In its simplest definition,it is a name, term,symbol, feature or anycombination of these. It
is used/employed toidentify thedistinctiveness (special)of an offering (i.e.,product, service, brand)
from those ofcompetitors.
The legal term for brandis Trademark.
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The top ten global Brands
1. Coca-Cola
2. Microsoft
3. IBM
4. GE
5. Intel 6. Nokia
7. Disney
8. McDonalds
9. Marlboro 10. Mercedes
USA
USA
USA
USA
USA Finland
USA
USA
USA Germany Source: Business Week Special Report,
August 4th, 2003
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Discussion of CasesCoca-Cola
The formation and maintenance of brand-
product relationships provide the basis for
certain cultural roles/transformation.
Brands can command higher financial valuethan the net book value of tangible products.
The purchase of Kraft by Philip Morris
The Split-up of Saachi & Saachi Advertising Agency
between the original owners (Saachi brothers) and
shareholders & senior managers
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Brands
Because product differences are generally non-existent, brands have been successful increating a seeming tangible image of theproduct.
Products are made in the factory Brands are what consumers buy
The two statements are linked by the concept ofadded value
Brands help to create an image and establish apositioning for the firm/offering
Hence, brand management and positioning areintertwined.
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Brands
Firms (e.g., retailers) can introduce theirown brandsto further enhance theirpositioning/competitive advantage.
Retailers own brands, store brands orprivate label brands:
Sears Kenmore electricals, Craftman tools,DieHard batteries
M & S St. Michaels
ASDA (now Wallmart) George
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Brands
Brands extend beyond offerings into (a) people, (b) organizations, places, (d) countries Amazon.com brand
Martha Stewart
Bill Gates
Cindy Crawford
Michael Jordan
Tiger Woods
Bill Clinton
Las Vegas
Mecca
Amsterdam
Jamaica
London
Egypt
Morocco
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Brands
Virtually anything can be and has beenbranded
Similarly, anything can be positioned vis a vis
the competition
The issue of strong brands and weak brands --why are some brands stronger than others?
Any brandno matter how strong at any one pointin time is vulnerable and is susceptible to poorbrand management.
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Five Factors Leading to Brand
Leadership
1. Vision of the mass market
2. Managerial persistence
3. Financial commitment
4. Relentless innovation
5. Asset leverage
The underlying issue about the above is theconcept of added value
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What is added value?
this is the case/situation whereby the
finished offering can command a higher price
than the cost of its component parts or the raw
material used in producing itin other words...
The finished offering is more valuable to theconsumer than the pile of raw material from
which it was made.
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Branding and added value
One key issue about a brand is that when a
consumer is unable to make a rational choice
based on performance,
They rely on added values (and the image they havein their minds of the brand) to be able to distinguish
the firms offering from their competitors.
Consumers make these (rational) decisions because
of (a) numerous competing offerings, (b) perhaps,the consumer lacks the technical or expert
knowledge to judge the differences between
competing offerings.
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Added values are called brand values
They ensure that:
An offering will be
reliable,
The offering is thebest,
An offering is good
value for money.
Added values are based on:
Perceptions (the position of
the offering/firm in the
market place) of the firm and
the offering,
Believes about the firms
authority and its reputation in
the market
This may be based on market
share, history, consistency in
marketing, experts (or
family and friends)
recommendation.
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Brand values are emotional valuesoften
difficult to tangibilize/verbalize
Brand/added values are added to the offeringsthrough the application of marketingstrategies and tactics including the marketingmix4 Ps/7 Ps:
Product/service/packaging, Promotion/marketing communications,
Distributionlogistics,
Pricing
Service quality and delivery
Physical evidence of the premises/store/shop,
People who actually interact/deliver the service
STP marketing
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Brand/added values contd.
Brand values help create a uniqueness about
the offering where none may exist functionally.
They are the means by which offerings are
positioned in the market place. Brand values create a total image and
personality for the brand/offering.
To the consumer the brand provides aguarantee of quality, value for money, the best
choice.
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Brand Equity
fundamentally, branding is about endowing productsand services with the power of brand equity.. (Keller,2002, pp.42).
Brand equity refers to brand/added value that has beenassociated with the offering over time.
Brand equity = the value of the brand.
Several ways in which the value of a brand can bemanifested or exploited to benefit the firm:
(a) greater profits, (b) market share,
lower production costs
(d) clear and long-lasting position in the market place.
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How to achieve brand equity
Skillful design and implementation of
marketing programs
The capitalization on a well thought-out
positioning
Strong brand leadership position in the
market place
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What is strategic brand
management?
The design and implementation of
marketing programs and activities to
build, measure, and managebrand equity.
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Strategic brand management
process
Identifying and establishing brand
positioning and value.
Planning and implementing brand
marketing programs Measuring and interpreting brand
performance.
Growing and sustaining brand equity.
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What is brand mantra?
The most important and pivotal aspect of thebrand to the consumer and the firm It is the essence of the brand.
Thus, core brand/added values and a brand
mantra are an articulation of the heart andsoul of the brand.
once the brand positioning strategy has been
determined, the actual marketing program tocreate, strengthen, or maintain brandassociations can be put into place (Keller,2002, pp.45).
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Identifying and establishing brand
positioning and values
Determine the full meaning (mantra) ofthe brand vis a vis competitors,
Assess perceptions of the target audience
andAssess the firms own capabilities via
marketing audit.
The goal is to place the brand image in themind of the customer so as to maximize thefirms benefits.
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Challenges facing brand
management
Managing brand equity over time.
Managing brand equity over geographic
boundaries, cultures, and market
segments.
Changing PESTLE of the market place.
Stochastic consumer perceptions
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Product brands vs corporate brands
Product branding buildsseparate brand identitiesfor different products-the imagery varies from
one brand to another: Sprite and Mr. Pibb
under Coca-Cola
Lux and Dove fromUnilever
Toyota and Lexus fromToyota
Honda and Acura fromHonda.
Corporate brandingrefers to the strategy inwhich the brand andcorporate name are the
same IBM & Nike = USA
RBS & Virgin = UK
Sony & Mitsubishi =Japan
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Question?
What do the following mean?
Added value
Brand value
Brand equity Brand mantra
Brand personality
Product brand
Corporate brand
Positioning.
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Corporate branding
The issue of company branding
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Corporate branding contd.
Companies with a more positive
reputation appear to project their core
mission and identity in a more systematic
and consistent fashion than those withlower reputation rankings.
High reputation companies try to impart
more information about their offerings,their operations, identity and history.
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Corporate Branding contd.
According to Bickerton (2000), the concept ofcorporate image/reputation started from acustomer market perspective.
Further appreciation of the environment gave
the impetus to the development of brandmarketing.
To this end, there are two perspectives toacademic thinking about corporate branding:
(a) marketing perspective and (b)multidisciplinary perspective.
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Relationship of the academic thinking (two
schools of thought)
Marketing PerspectiveCustomer focus.
Brand image
Brand positioning
Brand identity
Corporate associations Corporate branding
Multidisciplinary PerspectiveOrganization focus.
Corporate image
Corporate personality
Corporate associations
Corporate branding
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The pivotal role of marketing
communications
Importance of marketing communications in the branding process (corporate andofferings) is supported both conceptually and empirically.
Communications revolve around (a) management, (b) marketing and (c)organizational and
(d) brand stakeholder audiences.
Brand stakeholders that have an economic interest include
Employees
Shareholders
Suppliers
Partners (other owners of the business).
Brands have an economic impact (affects) on:
Customers
Opinion formers (politicians) Regulators and Legislators.
Based on Bickerton D. (2000), Corporate reputation versus corporate branding: the realist debate,Corporate Communications: An International Journal, Vol.5, No.1, pp.42-48.
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Questions?
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