B®ANDING™

session 6summary

Article ‘Philip Morris’1. Can you tell me what the article is about?

2. What is the main research question of the article?

3. What methodology did the authors use?

4. Did Philip Morris use a global or local marketing strategy for Marlboro?

5. Are the authors pro / anti smoking?

the book

ISBN: 978-90-430-1729-9

course outlineWeek Subject Chapter Keller1 Introduction in branding: brand management and

global course overview, Branding music, events and entertainment

1

2 Creating brand value, Brand positioning 2 & 3

3 Building brand equity, Brand associations 4 & 5

4 Future branding: brand activation 6 & 7

5 Brand research, Brand psychology, Neuromarketing, Measuring brand value

8, 9 & 10

6 Brand strategy, Brand extensions, International branding, Summary

11, 12, 13 & 14

Do you recognize it?Do you know it?

Do you think it’s cool?Do you like it?

Do you think it’s better?Do you buy it?

Do you recommend it?

1. Do you recognize it?: Brand awareness2. Do you know it?: Brand knowledge3. Do you think it’s cool?: Brand image4. Do you like it?: Brand attitude / brand value5. Do you think it’s better?: Brand preference6. Do you buy it?: Brand loyalty7. Do you recommend it?: Brand fan

Why are brands important?For 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

For 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 return

A change of thoughtsHow to companies approach their customers

• Production orientated: mass production, customers have no choice, selling more by efficient production

• Product orientation: selling more because the quality of products is better

• Sales orientation: selling more because of a lot of communication and promotion

• Marketing orientation: selling more by listening to the needs of customers and to adjust products to those needs

• Societal marketing orientation: selling more by listening to the needs of customers and to adjust products to those needs, also these companies pay attention to the effects of their actions to our planet

Marketing instruments- Product- Price- Place- Promotion- (People)

Marketing mix

Product1. Quality (materials, etc.) 2. Design (size, colour etc.) 3. Packaging (protection, storage, etc.)4. Brand (logo, recognition, etc.)5. Accessories 6. Assortment (width, depth, etc.)7. Service (installation, guarantees, instructions, etc.)

what is a brand?

“…a brand is a name, term, symbol, or design, or a

combination of them, intended to identify goods and services

of one seller or group of sellers and to differentiate them from

those of competition…”source: American Marketing Association

definition (1)

“…a brand is a intangible but critical component of what an

organization stands for…”

source: Brand Asset Management,Scott M. Davis

definition (2)

1850 … Identification branding: Products/services/quality

1950 … Benefit branding: Product benefits/What’s in it for me?

1970 … Symbolic branding: Personality/user image/ lifestyle

1990 … Experience branding: Consumer experience/ all senses

1995 … Societal branding: Ethics/contribution to society

2000 … Total branding: Integrated system of physical, psychological and social components of an

ideology

the evolution of branding

“…branding is the blend of art and science that manages associations between a brand and memories in

the mind of the audience. It involves focusing resources on selected

tangible and intangible attributes to differentiate the brand in an

attractive, meaningful and compelling way for the targeted audience. …”

source: Brandchannel.com

what can become a brand?• Goods (b-to-c / b-to-b)• Services• Retailers• Online products & services• People & organisations• Sports & arts• Regions (city marketing)• Entertainment

strategic brand management process

1. Identifying and establishing brand positioning

2. Planning and implementing brand marketing campaigns

3. Measuring and interpreting brand performance

4. Growing and sustaining brand equity

Brand equity

No brand vs. Brand X

Brand equity

‘…brand equity is built up from positive effects of marketing that can only be directed to the brand…’

customer-based brand equity(CBBE) Brand equity seen from the consumer perspective

The power of a brand is a result of: What has the consumer:

learned about the brandfelt when using the brandseen in combination with the brandheard about the brand

brand knowledge• Consists of:

– 1) brand awareness– 2) brand image

• Knowledge about a brand:The associative network memory model (the

brain is a network of associations, links and nodes, more about this in session 3 and 5)

1. brand awareness• Consists of:

– 1) brand recognition – I’ve seen this before…

– 2) brand recollection – I think you are referring to...

• Advantages:– Influences the amount, speed and strength of

associations to be made– Better chance to be part of the evoked set– Better chance to become the chosen brand

2. brand image

• Building a good brand image: creating strong, positive and unique brand associations

• Important:– Personal relevance– Uniqueness– Consistency– Credibility

Summary

building a strong brand4. Brand relationships: What about us?

3. Brand responses: What I think of you?

2. Brand meaning: What are you?

1. Brand identity: Who are you?

building a strong brand

Brand resonance pyramid (Keller)

Brand designing vs. Brand building

ProductBrand

Identity

Brand

Designing

Brand

Building

Brand

Relations

Core Target Creation Building Result

“…brand design is the creation (!) and

the visualization (!) of brands..”

source: Brand design, Ruud Boer

Functions of brand design

1. Creating extra value2. Creating difference 3. Communicating promises4. Creating awareness5. Creating recognition6. Communicating basic information7. Fulfilling other functions

• For example ‘Living the brand’

the inner side:A. creation of brands(vormen van merken)

the outer side:B. visualisation of brands(vormgeven van merken)

Brand desigining:

‘Het merk-wijzer model’

Source: Brand design, Ruud Boer

brand positioning & brand elements

brand positioning

“…finding the right location in the mind of the consumer..”

brand positioningWhat you need for brand positioning:

1. Overview of the target group2. Overview of the most important

competitors3. A) Points of parity regarding

competition B) Points of difference regarding competition

Laddering

Attributes (product features)

Benefits (personal values and advantages connected to product features)

Values (personal goals)

“…brand laddering involves progression from

attributes to benefits to more abstract values.

Laddering involves repeatedly asking what the implication of an attribute

or benefit is for the customer…"

for instance

Attributes: nicotine

Benefits: relaxation, social smoking, belonging to a group

Values: tough, relaxed, masculin

Brand psychology

mental brand response (1)

association ownershipa brand ‘owns’ an association, if the

brand comes immediately to the mindwhen the association is given as a cue

when the brand itself is given as a cue, this association is among the first

which are activated

brand psychology

brand psychology scientifically studies human

behavior related to brands in a particular surrounding or

a particular context

neuromarketing

measuring brain response to marketing ads and brands

by additional use of biometrics including heart rate, breathing rate,

eye and skin response

some neuromarketing toolseye tracking:

measures where a subject is looking

EEG (Electroencephaolgraph): measures brain waves to determine what parts of the brain are activated

FMRI (Functional Magnetic Resonance Imaging):measures brain activity in real time. Much moreexpensive than EEG, but gives more accurate pictures of the brain

1. The cocktailparty-effect: unconsciously a human scans the surroundings, althought you’re not aware of it

2. The mere exposure-effect: the more often someone is in contact with a negative stimulus the more positive it will be judged

3. The negativity-effect: negative and threatening stimuli will always be noticed quicker

4. Conditioning: when a neutral stimulus is connected to a positive or negative stimulus, the neutral stimulus also becomes positive or negative

brand strategy

brandarchitecture

1. BRAND-PRODUCTMATRIX

This matrix gives an overview of all the brands and products of the organization.

In order to get more insight into the product and brand strategy of the organization

Products

1 2 3 N

Brands 1 Becelbread

Becel liquid

Becelon bread

Etc.

2 Zwitsalshampoo

ZwitsalBaby tissues

ZwitsalSun cream

Etc.

3 Glorixbleach

GlorixCleaning tissues

GlorixToilet cleaner

Etc.

N Etc. Etc. Etc.

BRAND PORTFOLIO:

the collection of all brands an organization offers within a specific product category

PERFECT BRAND PORTFOLIO:

maximizing the market reach with the number of different

brands without brand cannibalization

Brand hierarchy

1. Corporate / company (Unilever)

2. Family (Unox)

3. Individual (Cup-a-Soup)

4. Modifier (different flavours)

What if a new product is invented?

1. A new brand, especially for the new product

2. Using an already existing brand3. A combination of both

brand extentions

• line extensions:The family brand (umbrella) is used on a new related

product group

• category extensions:The family brand is used for a totally new product

category

brand activation

Changing consumerConsumers….… have more power…

…can buy more products…

…can get a lof information… (!!!)

…can easily contact organizations…

…can get in contact with other consumers very easily… (!!!)

To personalize marketingExperience marketingOne to one marketingPermission marketing

experience economy:brand activation

“... when a consumer buys an experience, he pays to spend time

enjoying series of memorable events that a company stages – as a theatrical play – to engage him

in a personal way...”

The Experience Economy (Pine & Gilmore, 1999)

brand activation

1. Traditional media 2. New media

Or?brand activation

1. (Brand)paid media

2. (Brand)owned media

3. (Brand)earned Media

brand earned media??

Media type

Definition Examples The role Benefits Challenges

(Brand)paidmedia

Brand pays to use channels

•Display ads•Paid search•Sponsorships

Active role in enlarging brand knowledge

•In demand•Immediacy•Control

•Overload•Declining response rates•Poor credibility

(Brand)owned media

Channels a brand controls

•Website•Mobile site•Blog•Twitter

Build for longer-term relationship with existing potential customers

•Control•Cost efficiency•Versatility•Niche audiences•Long term

•No guarantees•Not trusted•Takes time to find segments

(Brand)earnedmedia

When customers become the channel

•Buzz•Viral•Experience

Listen and respond. Interact. Create. Come alive

•Most credible•Transparent and lives on•Strong ties with customer

•Less control•Can be negative•Hard to measure

...a focus on quality of communication, not on

quantity or reach

more focus on impact...

“...a brand is a perfect tool for transferring

information, meanings and feelings through media...”

values

brand

community

target group

sub-target group

brand X

band X

values

tokiohotel

community

• young

• creative

• urban

• metro-sexual

a band gives input to the meaning and value

of the brand:

“…if the band srews up, so does the brand…”

Session 5 measuring brand value

& international branding

strategic brand management process

1. identify and establish brand positioning and values

2. plan and implement brandmarketing programs

3. measure and interpret brandperformance

4. grow and sustain brand equity

brand measurement

“ I’m putting all this effort into my brand, working on the image, giving it the right colors, the right look, the right communication-tools. But is it

working? Does this ‘brand building’- thing have any result at all?”

Why measure brands?• to measure how strong the brand is in

comparison to competitors• to review marketing campaigns (return on

marketing investment)• to value brands in order to put it in the

annual financial overview

brand equity measurement system

“...a set of research procedures designed to provide timely, accurate and

actionable information for marketeers so that they can make the best possible tactical decisions in the short run and the best

strategic decisions in the long run...”

source: Kevin L. KellerBuilding, measuring and managing brand equity

different ways to measure1. Brand value chain

2. Brand following

3. Brand asset valuator (BAV)

international branding

Regions (local) vs. The world (global)

• Increasing amount of niche markets• Increasing amount of consumer data• Increasing amount of 1-to-1 marketing

Why brands go abroad?• Home market is saturated• Heavy competition on the home market• Extra growth possible abroad • Overcapacity• Spreading risk

Hofstede’s 5 dimensions

• Power distance and acceptance• Individualism• Uncertainty avoidance• Masculinity (emotional roleplaying)• Long term orientation• Indulgence vs. restraint (to control desires)

Differences between countries & cultures:

• Consumer needs / usage• Reactions on marketing mix elements• Competitive environment• Legal environment• Marketing infrastructure• Bureaucratic procedures

good luck!!