marketing & sales roundtable the role of branding in technology-based companies march 2005
TRANSCRIPT
Marketing & Sales Roundtable
The Role of Branding in Technology-Based Companies
March 2005
2©2005 Rosemary Remacle
What is a Brand?
“A name, term, sign, symbol or design, or a combination of these that is intended to identify the goods and services of one business or group of
businesses and to differentiate them from those of competitors”
“A mixture of tangible and intangible attributes symbolized by a product or company, which is properly managed, creates influence and
generates value”
“Augmenting core product and value proposition with unique values that set it apart from competitors”
3©2005 Rosemary Remacle
More Branding Definitions
Brand Assets Awareness Loyalty Perceived quality of experience
Brand Equity –the value of a brand. Brand equity is based on the strength of the brand assets. Brand equity also includes other assets such as patents, trademarks and channel relationships.
Brand Image –the set of beliefs that customers hold about a particular brand. It is important to develop these carefully since a negative brand image can be very difficult to dispel.
Brand Extension –the use of successful brand name to launch a new or modified product or service in a new market.
4©2005 Rosemary Remacle
A Brand Is……
The sum total of a customer’s (the market’s) experience
with a product or companyover time
5©2005 Rosemary Remacle
Why is a Brand Worth Building?
Brand awareness = higher valuations Brand equity = strategic asset Stabilizing influence for market participants, especially customers
Increasingly competitive environment (technology and product –proliferation)
Product life cycle compression ‘Consumer’ decision–making influences
Provides pre-emptive protection in highly competitive markets Enables pricing premiums, better profit margins Helps company enter new product categories and/or markets more
easily Lower risk factor Promotional costs Facilitates customer loyalty
Builds employee, partner pride in company/product
A strategic, sustainable competitive advantage
6©2005 Rosemary Remacle
Strong brands establish a long-lasting place in short-lived markets
Value
Time
Brand Lifecycle
Product
Why is a Brand Worth Building? (con’t)
7©2005 Rosemary Remacle
Positioning and Branding
Positioning StrategyStatement
Technology and TotalProduct Roadmap
Partnerships
Total Product Assets
(Functional) Programs
Business Model
Market Entry Customer Segment Critical Need and
Total Product Requirements
Company Total Product Solution’s Potential
Differentiators
Competitors’ Total Product Solutions’ Potential
Differentiators
CompanyDifferentiator
Barriers to Adoption
Market Drivers
Customer/End-User Problem(s)
Definition
Mission Statement
Applications
TechnologyEnablers Customer Segments
Critical Needs
Company Product/Service Match
Market Entry Customer Segment Roadmap and Market Segment
Leadership Roadmap
Market Segment
Product/Market Category
Market VisionMarket/Customer
Segmentation Competitive Differentiation Strategy Evidence
POSITIONINGSTRATEGY
BRANDINGSTRATEGY
8©2005 Rosemary Remacle
When Does Positioning Strategy Convert to a Brand?
When the positioning strategy evidence comes into contact with the customer
And, the customer agrees with it,
Time and time again
9©2005 Rosemary Remacle
Branding Elements Values/Attributes Personality Voice Brand architecture Image/Identity system
Strategy Evidence
Positioning Elements Market vision Market and customer segment(s)
problem(s) Market entry customer segment Market entry customer segment critical
need Benefit/Competitive differentiator (which
addresses critical need compellingly)
Analytical appeal Logical expression Market understanding
Emotional appeal Creative expressions Brand equity
MarketLeadership
Positioning and Branding: A Comparison
10©2005 Rosemary Remacle
Branding Technology-Based Start Ups
Company and Product Positioning Strategy-Segmentation-Differentiation, Value Proposition
Com
pany
Cul
ture
Corporate Identity System-Logo-Presentation template-Website, collateral design-Business cards-Etc.
Brand Values/AttributesPersonality
Brand/Naming Architecture-Company-Technology-Platform-Product/Service
11©2005 Rosemary Remacle
Building Brand Equity
BRAND EQUITY
INTEGRATED MARKETING,
SALES PROGRAMS
QUALITYPRODUCT/SERVICE
EXPERIENCE
MANAGEMENT TEAM CREDIBILITY
ALIGNED EMPLOYEE BASE
LONG-TERM PERSPECTIVE
VALIDATED POSITIONING
STRATEGY
SUPPORTING CORPORATE CULTURE
#1
12©2005 Rosemary Remacle
Why Brand Building in Technology is So Difficult
Costs too much ($ $, time, etc.) Not quantifiable until after it’s done Logic is king, brand is ‘emotional’ “Accidental successes” = not really necessary Too much technology or market change = why
bother? Caught up in technology aspects Level of marketing understanding Inability to reach consensus
13©2005 Rosemary Remacle
Objectives of a Brand Strategy
Distinguish company from ‘the pack’ Agree upon branding execution (creative expression)
Management team/Employees Company and product names Corporate identity program Tag lines/Slogans Packaging Buying and using experience Distribution channels
Lay foundation for brand equity
14©2005 Rosemary Remacle
Company Brand Established
Product Brand Established
Broad Market Awareness and Acceptance of Product
Product Position Established in Customer Segment
Differentiation Established
Technology Product Company
Time&
Experience
Market Segment Ownership
Customer SegmentExpansion
Market Entry Customer Segment Experience
Market Entry CustomerSegment Dialog
Synergy Providedby Brand Equity
Product Position as Foundation for Corporate Brand
15©2005 Rosemary Remacle
Positioning and Branding Truths
A well-executed positioning strategy is the foundation for a strong brand, which is the foundation for market leadership
Your company has a defacto position and a brand, whether you intend to or not you like it or not you manage it or not
For a positioning and branding strategy to become ‘real’, market participants must agree with your company’s claimed position and brand see and experience evidence of positioning and branding claims
If your company’s position isn’t clear, the brand won’t be either
Even positioning and branding strategies cannot overcome a poor product, or poor execution
Investments in building a corporate brand or “silver bullet” product brand must be prioritized; very expensive and difficult to do both simultaneously
16©2005 Rosemary Remacle
Investors
SalesChannels
TargetAccounts
Partners
Industry &FinancialAnalysts
Trade & Business
Press
EXISTING• ________• ________• ________• ________• ________
NEEDED• ________• ________• ________• ________• ________
Strategy Evidence
PositioningStrategy
Statement
PositioningStrategy
CompanyBusinessStrategy
MarketEntry
CustomerSegment
Mes
sage
s, B
rand
Str
ateg
y an
d Pr
ogra
ms
Strategy Market Leverage
Company
Building Brand Equity
17©2005 Rosemary Remacle
Branding Strategy Evaluation
Do all employees identify, and identify with, Company brand values?
Do customers and market participants identify, and identify with, Company brand values?
Do customers and market participants see a logical link between Company positioning strategy and brand strategy?
Has the brand carried multiple products/services to market, successfully, over time?
18©2005 Rosemary Remacle
Brand Equity Assessment
Price premium? Customer preference? Replacement value? Stock price? Earning power over time?
19©2005 Rosemary Remacle
Summary
Branding effort must be proactively managed from the beginning of a company (or product), both internally and externally
The questions are:
- what level of effort required for your market environment
- what level of resources is to be involved?
- In what timeframes?
It requires a long term view and commitmentand
branding begins with the executive team
20©2005 Rosemary Remacle
Presenters
Rosemary Remacle, Consultant
Market Focus
408-244-0412