session ppts
TRANSCRIPT
Company
LOGO
BRAND MANAGEMENT
Important Terms
TG – Target Audience/Target Group
STP –
Segmentation –
• Age/Gender/Lifestyle –
• SEC – Socio Economic Classification
Targeting
Positioning
Example Blackberry (ad)
Important Terms
Market
Marketing
Types of Marketing
Product Marketing ex. Tide naturals
Service Marketing ex.
Idea Marketing ex. Sodexo
Focus always on 3 things:
your purpose: Competence
Consumer – Need vs. Gap + Image
Competition
Important Terms
Branding
Garments vs. Victoria’s Secret
Positioning vs. image among TG is a make or break for brand
Ex. Reliance
Brand Equity: Tangibles and Intangibles
Brand Elements : Logo, Punchline, Color, Typeface
4+3Ps of Marketing
Target
Market
(Consumer)
Packaging
Positioning
People
Product
Price
Place
Promotion
Market Place Competition
Dairy Milk
Market Scenario
Chocolate – synonymous
to dental problems
Only for Children
Not to be had on
occasions
Reaction
“Doodh hi doodh chalakta hai”
campaign
Adults having chocolates
“Khane waalon ko khane ka
bahaana chahiye” campaign
Thums Up
40 % of the cola drinkers are females
Most cola majors – focus on male as well as female audience – including Pepsi, Coke!!!
The only brand to position around MASCULANITY
In 1980’s, 1990’s and in 2000’s!!!
Vodafone
Mobile Service Providers
Target Audience – Everyone
Most players play on two fields – Emotions or Service!!!
(Reliance, BSNL – Network, Airtel - Emotions)
This brand positions around emotions and network!!!
And a series of campaigns!!!
Why is Marketing Becoming More Important?
Sales DeclinesSlow Growth – Need Sustaining Sales or New
MarketsChanging Buying Patterns and Customer WantsIncreasing Competition, including New ProductsIncreasing Marketing and Sales Expenditures.Understanding the 7 P’s: People
(Target/Customer), Planning, Product/Service Development, Pricing, Place/Distribution, Promotion, and Partners/Alliances.
What is a Brand?
A brand is a name, term, sign, symbol, or design which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.
1993 – Thums up, Limca, Gold Spot – 170 crores
What is a Brand?
It’s the company’s definition of what they have to offer.
A brand is a product that has a personality. A promise to the customer.What the customer knows about your
specific product. It’s your image. How the company or product is perceived?
What is a Brand?
A set of product perceptions by the consumer. It is a personality developed over time. A brand signifies a relationship with the
customer. It is the company’s most valuable asset. It’s
also the main differentiator, the best defense against price competition, and the key to customer loyalty.
Competitors can copy your features and benefits, but they can’t steal your brand.
It’s a promise. But it must be backed up by performance.
Product vs. Brand
A product is something that is made in a factory
A brand is something that is bought by a customer.
A product can be copied by a competitor.
A brand is unique.
A product can be quickly outdated.
A successful brand is timeless.
What is a Brand? & Brand Identification
A brand is much more than a name—it’s a symbol, trademark, logo, term, sign, design or combination, which distinguishes a product from others.
Sets a company’s products apart from competition. It’s the perception of the product in the minds of the consumers
The marking of livestock. Artists signing their work.
Your first opportunity is in the name. Easier to order and remember.
Most important is consistency—globally too.
Examples:
1. Batteries: DieHard contains a promise of long use. Sears has Craftsman, DieHard, Homart and Kenmore.
2. Mercedes promises well-built, prestigious, safety, performance.
3. Co branding/Dual branding: "Intel inside."
What is a Brand? & Brand Identification
More Examples:
4. Need to keep it fresh. Look at Coca-Cola. Its image is as fresh today as when it started. It’s not luck. It’s careful nurturing and development of the brand.Can exploit brand equity with brand extensions, if there is value.
5. Look at licensing. Need control over who uses your brand. Sunkist.
Why? Lowers marketing costs, greater trade leverage, can charge higher price, defense against price competition, more easily launch line extensions.
What is a Brand? & Brand Identification
Salt is in bright-colored packages. Oranges are marked. Labeled. A guarantee of
quality. BMW paid $60 million for the Rolls Royce
name. Nothing else.A brand can convey: Attributes + Benefits + Values + Culture +
PersonalitySeller’s promise to deliver a specific set of
features. Brand equity is the value a brand adds to the
product.
What is a Brand? & Brand Identification
Turning or Translating Brand Awareness
Into Brand Insistence.
AIDA=
Awareness Interest Desire Action
Brand Awareness or Brand Insistence
Branding
Major Macroenvironment Forces and Trends …..Broad EnvironmentDemographicEconomicNatural/ EcologicalTechnologicalPolitical/ LegalSocial/ Cultural
Marketing and Branding
Products vs. BrandsLook at Marketing Process:Analyzing Marketing OpportunitiesSegmentation, Targeting and PositioningDeveloping Marketing Strategies and 7P’sPlanning Marketing ProgramsExecuting, Managing and Evaluating Marketing
Efforts
Why do brands matter?
Consumers:- Identification of sources of product- Assigns responsibility to product maker- Reduces risks- Reduces search cost- Bond with maker of the product- Symbolic device- Signal of quality Manufacturers:- Means of identification to simplify handling/tracing- Legal protection- Signal of quality level to satisfied customers- Creates unique associations- Source of competitive advantage- Sources of financial returns
Products are classified based on their associated attributes/benefits into 3 categories:
1. Search goods: consumers can evaluate product attributes by visual inspection.2. Experience goods: experience is necessary for product evaluation.3. Credence goods: product attributes are generally not learned by the consumer.
Can everything be branded?
Ultimately a brand is something that resides in the minds of consumers.
To brand a product it is necessary to teach consumers ‘who’ the product is – by giving it a name and using other brand elements to help identify it – as well as what the product does and why consumers should care.
The key to branding is that consumers perceive differences among brands in a product category.
A commodity is a product so basic that it can not be physically differentiated in the minds of consumers. Strong brands have emerged in this category, like; coffee, salt, water, bath soap
Virtually anything can be branded: physical goods, services, retail stores, online businesses, people, organizations, places and ideas
It is critical to create unique aspects of the brand on some dimension important to consumers, such as convenience, price, variety, and so on. At the same time, the brand needs to perform satisfactorily in other areas, such as customer service, credibility and personality.
Branding challenges and opportunities
Any brand – no matter how strong at one point of time – is vulnerable and susceptible to poor brand management.
Consulting firm Brand Keys has found that consumer expectations of what they want from brands are on average 13% higher than what they think brands will deliver for them, and the gap is growing.
Brand proliferation Media fragmentation, cost, clutter, technology Increased competition: demand side competition has increased because of many
products/services reaching maturity/decline stage of PLC and supply side competition has increased because of globalization, low-priced competitors, brand extensions and deregulation
Increased costs: By 2000, an estimated 30,000 new consume products were introduced in the US market, at a failure rate estimated at 93%. Given the enormous money spent on developing and marketing a new product, the total failure cost is estimated to exceed $20 billion.
Greater accountability: ambitious short-term profit targets because of financial market pressures
Rapid job turnover, as one study founds the average tenure of a CMO is only 23 months.
New Branding Challenges
Brands are important as ever Consumer need for simplification Consumer need for risk reduction
Brand management is as difficult as ever Savvy consumers Increased competition Decreased effectiveness of traditional
marketing tools and emergence of new marketing tools
Complex brand and product portfolios
The Customer/Brand Challenge
In this difficult environment, marketers must have a keen understanding of: customers brands the relationship between the two
The Concept of Brand Equity
The brand equity concept stresses the importance of the brand in marketing strategies.
Brand equity is defined in terms of the marketing effects uniquely attributable to the brand. Brand equity relates to the fact that different
outcomes result in the marketing of a product or service because of its brand name, as compared to if the same product or service did not have that name.
The Concept of Customer-Based Brand Equity
Customer-based brand equity Differential effect Customer brand knowledge Customer response to brand marketing
Determinants of Customer-Based Brand Equity
Customer is aware of and familiar with the brand
Customer holds some strong, favorable, and unique brand associations in memory
Building Customer-Based Brand Equity
Brand knowledge structures depend on . . .
The initial choices for the brand elements
The supporting marketing program and the manner by which the brand is integrated into it
Other associations indirectly transferred to the brand by linking it to some other entities
Benefits of Customer-Based Brand Equity
Enjoy greater brand loyalty, usage, and affinity
Command larger price premiumsReceive greater trade cooperation & supportIncrease marketing communication
effectivenessYield licensing opportunitiesSupport brand extensions.
Customer-Based Brand Equityas a “Bridge”
Customer-based brand equity represents the “added value” endowed to a product as a result of past investments in the marketing of a brand.
Customer-based brand equity provides direction and focus to future marketing activities
The Key to Branding
For branding strategies to be successful, consumers must be convinced that there are meaningful differences among brands in the product or service category.
Consumer must not think that all brands in the category are the same.
PERCEPTION = VALUE
Strategic Brand Management
Strategic brand management involves the design and implementation of marketing programs and activities to build, measure, and manage brand equity.
The strategic brand management process is defined as involving four main steps:1) Identifying and establishing brand positioning and values
2) Planning and implementing brand marketing programs
3) Measuring and interpreting brand performance
4) Growing and sustaining brand equity
Strategic Brand Management Process
Mental mapsCompetitive frame of referencePoints-of-parity and points-of-differenceCore brand valuesBrand mantra
Mixing and matching of brand elementsIntegrating brand marketing activitiesLeveraging of secondary associations
Brand Value ChainBrand auditsBrand trackingBrand equity management system
Brand-product matrixBrand portfolios and hierarchiesBrand expansion strategiesBrand reinforcement and revitalization
KEY CONCEPTSSTEPS
Grow and SustainBrand Equity
Identify and EstablishBrand Positioning and Values
Plan and Implement Brand Marketing Programs
Measure and InterpretBrand Performance
Motivation forCustomer-Based Brand Equity Model
Marketers know strong brands are important but aren’t always sure how to build one.
CBBE model was designed to be … comprehensive cohesive well-grounded up-to-date actionable
Rationale of Customer-Based Brand Equity Model
Basic premise: Power of a brand resides in the minds of customers
Challenge is to ensure customers have the right types of experiences with products & services and their marketing programs to create the right brand knowledge structures: Thoughts Feelings Images Perceptions Attitudes
Building Customer-Based Brand Equity
Building a strong brand involves a series of steps as part of a “branding ladder”
A strong brand is also characterized by a logically constructed set of brand “building blocks.” Identifies areas of strength and weakness Provides guidance to marketing activities
CUSTOMER-BASED BRAND EQUITY PYRAMID
RESONANCE
SALIENCE
JUDGMENTS FEELINGS
PERFORMANCE IMAGERY
4. RELATIONSHIPS =
What about you & me?
4. RELATIONSHIPS =
What about you & me?
3. RESPONSE =
What about you?
3. RESPONSE =
What about you?
2. MEANING =
What are you?
2. MEANING =
What are you?
1. IDENTITY =
Who are you?
1. IDENTITY =
Who are you?
Salience Dimensions
Depth of brand awareness Ease of recognition & recall Strength & clarity of category membership
Breadth of brand awareness Purchase consideration Consumption consideration
Performance Dimensions
Primary characteristics & supplementary features
Product reliability, durability, and serviceability
Service effectiveness, efficiency, and empathy
Style and design
Price
Imagery Dimensions
User profiles Demographic & psychographic characteristics Actual or aspirational Group perceptions -- popularity
Purchase & usage situations Type of channel, specific stores, ease of purchase Time (day, week, month, year, etc.), location, and context of
usage
Personality & values Sincerity, excitement, competence, sophistication, & ruggedness
History, heritage, & experiences Nostalgia Memories
Judgment Dimensions
Brand quality Value Satisfaction
Brand credibility Expertise Trustworthiness Likability
Brand consideration Relevance
Brand superiority Differentiation
Feelings Dimensions
WarmthFunExcitementSecuritySocial approvalSelf-respect
Resonance Dimensions
Behavioral loyalty Frequency and amount of repeat purchases
Attitudinal attachment Love brand (favorite possessions; “a little pleasure”) Proud of brand
Sense of community Kinship Affiliation
Active engagement Seek information Join club Visit web site, chat rooms
Customer-Based Brand Equity Model
Consumer-BrandResonance
Brand Salience
Consumer Judgments
Consumer Feelings
BrandPerformance
BrandImagery
INTENSE, ACTIVE LOYALTY
INTENSE, ACTIVE LOYALTY
RATIONAL & EMOTIONAL REACTIONS
RATIONAL & EMOTIONAL REACTIONS
POINTS-OF-PARITY &
POINTS-OF-DIFFERENCE
POINTS-OF-PARITY &
POINTS-OF-DIFFERENCE
DEEP, BROAD BRAND
AWARENESS
DEEP, BROAD BRAND
AWARENESS
Brand Positioning
Define competitive frame of reference Target market Nature of competition
Define desired brand knowledge structures Points-of-parity
• necessary• competitive
Points-of-difference• strong, favorable, and unique brand associations
Issues in Implementing Brand Positioning
Establishing Category MembershipIdentifying & Choosing POP’s & POD’sCommunicating & Establishing POP’s &
POD’sSustaining & Evolving POD’s & POP’s
Establishing Category Membership
Product descriptorExemplar comparisons
Identifying & Choosing POP’s & POD’s
Desirability criteria (consumer perspective) Personally relevant Distinctive & superior Believable & credible
Deliverability criteria (firm perspective) Feasible Profitable Pre-emptive, defensible & difficult to attack
Major Challenges in Positioning
Find compelling & impactful points-of-difference (MacMillan & McGrath, HBR, ‘97) How do people become aware of their need for your
product and service? How do consumers find your offering? How do consumers make their final selection? How do consumers order and purchase your product
or service? What happens when your product or service is
delivered? How is your product installed? How is your product or service paid for?
Major Challenges in Positioning
Find compelling & impactful points-of-difference (cont.) How is your product stored? How is your product moved around? What is the consumer really using your product for? What do consumers need help with when they use
your product? What about returns or exchanges? How is your product repaired or serviced? What happens when your product is disposed of or no
longer used?
Communicating & Establishing POP’s & POD’s
Create POP’s and POD’s in the face of attribute & benefit trade-offs Price & quality Convenience & quality Taste & low calories Efficacy & mildness Power & safety Ubiquity & prestige Comprehensiveness (variety) & simplicity Strength & refinement
Strategies to Reconcile Attribute & Benefit Trade-Offs
Establish separate marketing programsLeverage secondary association (e.g., co-
brand)Re-define the relationship from negative to
positive
Sustaining & EvolvingPOP’s & POD’s
Core Brand Values &
Core Brand Proposition
Core Brand Values
Set of abstract concepts or phrases that characterize the 5-10 most important dimensions of the mental map of a brand.
Relate to points-of-parity and points-of-difference
Mental Map Core Brand Values Brand Mantra
Brand Mantras
A brand mantra is an articulation of the “heart and soul” of the brand. Brand mantras are short three to five word
phrases that capture the irrefutable essence or spirit of the brand positioning and brand values.
Nike Authentic Athletic Performance
Disney Fun Family Entertainment