Lecture 12: Branding

brand

"a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors"

customer mind-set

-awareness -associations -attitudes -attachment -activity

market multiplier

-determines the extent to which the value shown by the market performance of a brand is manifested in shareholder value -market dynamics -growth potential -risk profile -brand contribution

brand performance

-price premiums -price elasticities -market share -expansion success -cost structure -profitability

marketing program investment

-product -communications -trade -employee -other

shareholder value

-stock price -P/E ratio -market capitalization

brand extensions

-when a firm uses an established brand to introduce a new product, the product is called a ______ _______ most new products are in fact ______ ________-typically 80% to 90% to any one year

BrandAsset Valuator

4 components (pillars): energized differentiation, relevance, esteem, knowledge

firm consumer

a brand is promise between the _____ and the ________

brand equity

added value endowed to products and services with consumers -may be reflected in the way consumers think, feel, and act with respect to the brand, as well as in prices, market share, and profitability it commands

brand knowledge

all the thoughts, feelings, images, experiences, and beliefs associated with the brand

brand revitalization

almost any kind starts with the product -Burberry: focusing on core products and refocusing on its heritage and style

knowledge

an intimate understanding of the brand -measures how aware and familiar consumers are with the brand and the depth of their experience -relates to awareness and consumer experience

brand contact

any information-bearing experience (positive or negative) a customer or prospect has with the brand, its product category, or its market -personal observation and use, word of mouth, interactions with company personnel, online or telephone experiences, payment transactions -ex. Mini Cooper

leadership

become irresistible, combining high brand strength with high brand stature -high earnings, high margin power, and the greatest potential to create future value -ex. Pixar, Nordstron, Netflix

both

both of these methods are complementary and firms can, and often do, employ ______ to measure brand equity

power grid

brand strength and brand stature -depicting stages in the cycle of brand development in successive quadrants

vision

clear direction and point of view on the world and how it can and should be changed

internal branding

consists of activities and processes that help inform and inspire employees about brands

brand line

consists of all products-original as well as line and category extensions-sold under a particular brand

brand stature

current indicator -current operating value -"report card" of past performance and a lagging indicator of current operating value -esteem and knowledge

brand feelings

customers' emotional responses and reactions with respect to the brand

brand imagery

describes the extrinsic properties of the product or service, including the way s in which the brand attempts to meet customers' psychological or social needs

brand resonance

describes the relationship customers have with the brand and the extent to which they feel they're "in sync" with it

customer multiplier

determines the extent to which value created in the minds and hearts of customers affects market performance -competitive reactions -channel support -customer size and profile

program multiplier

determines the marketing program's ability to affect the customer mind-set and is a function of the quality of the program investment -distinctiveness -relevance -integrated -value -excellence

brand element or identity choice

devices, which can be trademarked, that identify and differentiate the brand -ex. Nike, swoosh, "Just do it"

customer-based brand equity

differential effect brand knowledge has on consumer response to the marketing of that brand

dynamism

excitement and affinity in the way the brand is presented

parent brand

existing brand that gives birth to a brand extension or sub-brand

brand judgments

focus on customers' own personal opinions and evaluations

brand audit

focused series of procedures to assess the health of the brand, uncover its sources of brand equity, and suggest ways to improve and leverage its equity -ex. Kelloggs

relevance

how appropriate the brand is to you -measures the appropriateness and breadth of a brand's appeal -relates to consideration and trial

-genuine -real -authentic -what they sell and who they are

how are successful brands seen?

marketers build brand equity by creating the right brand knowledge structures with the right consumers -this starts with understanding brand equity drivers

how do we build brand equity?

brand salience

how often and how easily customers think of the brand under various purchase or consumption situations-the depth and breadth of brand awareness

brand performance

how well the product or service meets the customers' functional needs

esteem

how you regard the brand -measures perceptions of quality and loyalty, or how well the brand is regarded and respected -relates to perceptions of quality and loyalty

master/family brand

if the parent brand is already associated with multiple products through brand extensions

leveraging secondary associations

in order to create brand equity by linking the brand to other information in memory that conveys meaning to consumers

invention

intention for the product or service to change the way people think, feel, and behave

brand valuation

job of estimating the total financial value of the brand -typically more than half the total company market capitalization

brand strength

leading indicator -predicts future growth value -energized differentiation and relevance

new/unfocused

low brand stature and low brand strength -not well known among the general population -many are new entrants; others are middling brands that have lost their way -ex. Voyage, Kia, NBA, Red Bull

niche/momentum

low brand strength but high potential -built some energy and relevance, but are known to only a relatively small audience -consumers expressing curiosity and interest -ex. Crocs, Tivo, Vitamin Water

strategic brand management process

marketer's of the 21st century brands must excel at the ______ _______ ___________ _________!

brand promise

marketer's vision of what the brand must be and do for consumers -ex. virgin america airlines

category extensions

marketers use the parent brand to enter a different product category, such as Swiss Army watches

Brandz

meaningful, different, and salient associations -power, premium, and potential outcomes

integrated marketing

mixing and matching marketing activities to maximize their individual and collective effects

1-brand extension 2-sub brand 3-parent brand 4-master/family brand 5-line extension 6-category extension 7-brand line 8-brand mix 9-branded variants 10-licensed product

name 10 types of branding strategies:

1-develop new brand elements for new product 2-apply some existing brand elements 3-use combo of new/existing brand elements

name 3 different ways to accomplish how to decide to brand new products:

1-vision 2-invention 3-dynamism

name 3 factors that help define energy and the marketplace momentum it creates:

1-differences in consumer response 2-brand knowledge 3-perceptions, preferences and behavior

name 3 key ingredients of customer-based brand equity:

1-program multiplier 2-customer multiplier 3-market multiplier

name 3 types of multipliers:

1-BrandAsset Valuator 2-Brandz 3-Brand Resonance Model

name 3 well established models:

1-flankers 2-low-end entry level 3-cash cows 4-high-end prestige

name 4 categories that brands tend to fall into:

1-energized differentiation 2-relevance 3-esteem 4-knowledge

name 4 key pillars of BrandAsset Valuator:

1-identifying and establishing brand positioning 2-planning and implementing brand marketing 3-measuring and interpreting brand performance 4-growing and sustaining brand value

name 4 main steps of Strategic brand management:

1-niche/momentum (top left) 2-leadership (top right) 3-new/unfocused (bottom left) 4-eroding/declining (bottom right)

name 4 parts of the stages in the cycle of brand development:

1-marketing program investment 2-customer mind-set 3-brand performance 4-shareholder value

name 4 value stages:

1-set and fulfill expectations 2-reduce risk 3-simplify decision making 4-tak on personal meaning 5-become part of identity

name 5 of a brands' roles for consumers:

1-simplify product handling 2-organize inventory and accounting 3-offer legal protection 4-create brand loyalty 5-secure competitive advantage

name 5 of the brands' role for firms:

-memorable (brand building) -meaningful (brand building) -likable (brand building) -transferable (leverage and preserve brand equity) -adaptable (leverage ect.) -protectable (leverage ect.)

name 6 criteria for choosing brand elements:

-improved odds of new-product success -positive feedback effects -risk of brand dilution -may harm parent brand -firm forgoes creating new brand

name reasons why most new products are brand extensions:

-tends to emphasize strategic issues: managing brands, creating and leveraging brand awareness, image with customers -provides practical guidance for specific marketing activities -tends not to focus on BE related detailed customer analysis -tends not to focus on the long term profitability BE creates -usually lacks sharp segmentation schemes -usually lacks personalized, customized marketing programs -generally fewer financial considerations with BE

name some brand equity strengths and weaknesses:

-focuses on bottom line financial value -it has quantifiable measures of financial performance -ignores: guiding go-to-market strategies, attracting higher-quality employees, eliciting stronger support from channel and supply chain partners, creating growth opportunities through line and category extensions and licensing opportunities, competitive moves and countermoves, customer-to-customer recommendations

name some customer equity strengths and weaknesses:

1-brand element or identity choices 2-product and accompanying marketing 3-leveraging secondary associations

name the 3 key brand equity drivers:

brand bonding

occurs when customers experience the company as delivering on its brand promise

flagship product

one that best represents or embodies the brand as a whole to consumers -often is first product by which brand gained fame, a widely accepted best-seller, or a highly admired or award winning product

licensed product

one whose brand name has been licensed to other manufacturers that actually make the product

line extensions

parent brand covers a new product within a product category it currently services, such as with new flavors, forms, colors, ingredients, and package sizes

flankers

positioned with respect to competitors' brands so that more important (and more profitable) flagship brands an retain their desired positioning -must be neither so attractive that they take sales away from their higher-priced comparison brands nor designed so cheaply that they reflect poorly on them

branding

process of endowing products and services with the power of a brand

strategic brand management

process that combines the design and implementation of marketing activities and programs (think marketing mix) to build, measure, and manage brands to maximize their value

brand strategy (architecture)

reflects the number and nature of both common and distinctive brand elements

brain reinforcement

requires the brand always be moving forward

high end prestige

role is to add prestige and credibility to the entire portfolio

low end entry level

role may be to attract customer to the brand franchise -"traffic builders"-they are able to trade up customers to a higher-priced brand

brand mix

set of all brand lines that a particular seller makes

brand portfolio

set of all brands and brand lines a particular firm offers for sale in a particular category or market segment

product and accompanying marketing

should be holistic in nature regarding the development of a strong brand...this is accomplished through a range of contacts and touch points

eroding/declining

show why high brand stature by itself is insufficient for maintaining a leading position -struggle to overcome what consumers already known about and expect from them -ex. Sprint, Alpo, Gerber, Denny's

cash cows

some brands may be kept around despite dwindling sales because they manage to maintain their profitability with virtually no marketing support -milk them by capitalizing on their reservoir of brand equity

branded variants

specific brand lines supplied to specific retailers or distribution channels

brand value chain

structured approach to assessing the sources and outcomes of brand equity and the way marketing activities create brand value

interbrand valuation method

the ______ ______ ______ strives to put a total $ figure on each brand -defines brand value as the net present value of the future earnings that can be attributed to the brand alone

energized differentiation

the brand's point of difference -measures the degree to which a brand is seen as different from others as well as its pricing power -relates to margins and cultural currency

brand-tracking studies

use the brand audit as input to collect quantitative data from consumers over time, providing consistent, baseline information about how brands and marketing programs are performing

brand equity models

varying methods that evaluate and rate a brand's strength

1-place 2-organization 3-idea

what 3 things can you brand?

sub brand

when marketers combine a new brand with an existing brand -ex. Hersey Kisses candy