MGMT 440 Brading

brand knowledge Creates the differential effect that drives brand equity Marketers need an insightful way to represent how brand knowledge exists in consumer memory

key to creating brand equity

brand name

Captures the central theme or key associations of a product in a very compact and economical fashion Most difficult element for marketers to change Closely tied to the product in the minds of consumers

jingles

Musical messages written around the brand Have catchy hooks and choruses that become permanently registered in the minds of listeners Enhance brand awareness by repeating the brand name in clever and amusing ways

Slogans

Short phrases that communicate descriptive or persuasive information about the brand Function as useful "hooks" or "handles" to help consumers grasp the meaning of a brand Indispensable means of summarizing and translating the intent of a marketing program

Defining Brand Architecture Managing Brand Equity over Time Managing Brand Equity over Geographic Boundaries, Cultures, and Market Segments

How to grow and sustain brand equity?

Brand Resonance Pyramid

The idea is that we have 4 levels that we build our brand on going from the bottom to the top. IDENTITY (salience - who are you?) MEANING (performance & imagery - what are you) RESPONSE (judgements & feelings - what about you?) RELATIONSHIPS (resonance - what about you and me?)

Help buyers to remember your brand for its unique qualities. Differentiates you from your competitors. Provides reasons to buy your product. Creates positive attitudes or feelings towards your brand/product.

Why is brand association important?

loss of control disagreements between two brands risk of brand equity dilution negative feedback financial loss bc partnership didnt work out lack of brand focus & clarity

disadvantages of cobranding

Brand Mantra

a short phrase (five words maximum) that encapsulates the entire positioning platform (the competitive frame of reference, the points of difference, the points of parity, and everything else about your brand) into one thought

brand value chain

a structured approach to assessing the sources and outcomes of brand equity and the way marketing activities create brand value A necessary condition for value creation is a well- funded, well-designed, and well-implemented marketing program Value creation requires more than the initial marketing investment Allows to estimate shareholder value and the investor sentiment multiplier through investor analysis and interviews

brand feelings

customers' emotional responses and reactions with respect to the brand Relate to the social currency evoked by the brand Feelings can be: Experiential and immediate, increasing in level of intensity Private and enduring, increasing in level of gravity

brand performance

describes how well the product or service... meets customers' more functional needs Rate on objective assessments of quality Satisfies utilitarian, aesthetic, and economic customer needs and wants in the product or service category

brand image

The Nike Swoosh has been made into a cultural dissemination that stands for athleticism, power, fitness. Nike Swoosh is an example of

Integrated Marketing Communications

carefully integrating and coordinating the company's many communications channels to deliver a clear, consistent, and compelling message about the organization and its products

Retailers have their own brand images in consumers' minds due to the following associations: Product assortment Pricing Credit policy Quality of service Customer base can be expanded by tapping into new channels of distribution ie. you wouldn't expect luxury brands to be sold at target or walmart because that's not the target market they go for. if LV was in target you would think less of the brand.

channels of distribution can indirectly affect brand equity through an image transfer process. why?

price segmentation

charging different prices to different people for the same or similar product or service. You see examples every time you go shopping: student prices at movie theaters, senior prices for coffee at McDonald's. increases overall revenues and profits, and it is particularly beneficial to industries that have high fixed cost structures. Obviously, price segmentation works better to the extent to which there are real customer need segments and to which you can effectively isolate those segments. As an example, imagine that your business only offers one product priced at $5. But some consumers are willing to pay up to $8. You are leaving $3 on the table for each of them. Other consumers are more price-sensitive and only willing to pay $3. You do not get any of their business. With price segmentation more revenue is generated by offering three prices -- $3, $5 and $8 - instead of just one -- $5. Prices can be segmented in the following ways: • By time (higher hotel room rates for holidays and other peak tourist seasons) • By location (higher prices in locations with less competition or in which less price-sensitive shoppers shop, orchestra versus balcony seats in a theater) • By volume (volume discounts for large orders) • By product attribute (first class vs. coach section on airplanes; solid brass vs. plastic faucets) • By product bundling - examples: selling software in product suites vs. by the program selling e-Learning by library vs. the individual course fixed price versus a la cart menus "fully-loaded" models versus "basic" models with additional options available single admission ticket at theme parks versus charging per ride By customer segment (brand-loyal vs. price-sensitive vs. convenience-oriented or image-conscious vs. economy-oriented) Other price/value considerations • Providing value-added products and services at "no charge" is superior to price discounting as a short-term purchase incentive because it preserves the value of the brand • Be careful to price your products and services to reward brand-loyal (versus brand-switching) behavior

experiential marketing

Allows customers to engage and interact with offerings in sensory ways in order to create emotional bonds between consumers and marketing offerings a form of advertising that focuses primarily on helping consumers experience a brand

Leveraging secondary brand associations

-linking the brand to some other entity -Important to creating strong, favorable and unique associations or positive responses if existing brand associations and responses are deficient in some way

Choosing Brand Elements Integrating the Brand into Marketing Activities and the Supporting Marketing Program Leveraging Secondary Associations

3 steps to Designing and implementing Brand Marketing Program

COMPANY create new brand under parent company (brand strategies) CHARACTER through licensing (Forever21 using names and logos of other brands on their clothing items) COUNTRY of origin (Consumers choose brands originating in different countries based on: Their beliefs about the quality of certain types of products from certain countries, and the image that these brands or products communicate. Can create strong points-of-difference), (chanel no.5, paris) CHANNEL distribution (new channel distribution to target new market, retail stores can help brand image thru use of displays, promos, etc) CELEBRITY endorsements (aveeno & anniston), COBRANDING, brand partnership (kanye & adidas) Events thru sponsorships (coke & olympic games, redbull sponsors extreme athletes) Third party sources, awards and reviews - Grey Goose's eventual success was a taste-test result from the Beverage Testing Institute that ranked Grey Goose as the number-one imported vodka

8 examples of leveraging secondary brand associations

○ Brand functions: Nature of the product or service or the type of experiences or benefits the brand provides. ○ Descriptive modifier: Combined with brand functions, helps delineate the brand boundaries. ○ Emotional modifier: Determines how a brand provides benefits and in what ways. Nike: Authentic, Athletic, Performance BMW: Ultimate Driving Machine Betty Crocker: Homemade Made Easy Betty Crocker's brand mantra remarkably staked out three points of difference ("quality," "family," and a "rewarding baking experience") as well as a crucial point of parity ("convenience") at the same time.

A good brand mantra should provide:

Communicate the category of the business to set the brand boundaries and clarify what is unique about the brand Be simple, crisp, and vivid Stake out ground that is personally meaningful and relevant to as many employees as possible

A good brand mantra should...

brand positioning

Act of designing the company's offer and image so that it occupies a distinct and valued place in the target customers' minds inform consumers why they should choose you over your competitors and is one of the few things you can completely own about your company Allows consumers to think about a product or service in the "right" perspective Marketers can do this at any of three levels: Attributes Benefits Beliefs and values

customer-based brand equity

Approaches brand equity from the perspective of the consumer Stresses that the power of a brand lies in what resides in the minds and hearts of customers Differential effect that brand knowledge has on consumer response to the marketing of that brand According to this model, there are five dimensions to measure the brand equity which are as follows: Brand salience, brand image, brand equity, brand value and brand loyalty

To manage brands profitably, managers must implement a brand equity measurement system which involves: Brand audits Brand tracking studies Brand equity management system

Brand Equity Measurement System involves...

Brand equity offers guidance to interpret past marketing performance and design future marketing programs

Brand equity as a bridge, meaning?

Simplify product handling and tracing Help organizing inventory and accounting records Offer the firm legal protection for unique features or aspects of the product Provide predictability and security of demand for the firm and creates barriers of entry for competitors Provide a powerful means to secure competitive advantage

Brands provide valuable functions, such as...

A product is made by a company and can be purchased by a consumer in exchange for money while brands are built through consumer perceptions, expectations, and experiences with all products or services under a brand umbrella. product: Anything available in the market for use or consumption, that may satisfy a need or want brand: more than a product as it has dimensions that differentiate it in some way from other products designed to satisfy the same need. Can be differentiated on the basis of: - Packaging •Services provided •Customer advice •Financing •Delivery arrangements •Warehousing •Other things valued by the customers

Difference between brand and a product?

Brand Element

Different components that identifies and differentiates a brand ie. Name, logo, symbol, package design, or other characteristic Can be based on people, places, things, and abstract images

Market Segmentation

Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs

Brand Amplifiers

Efforts made to engage consumers and the public via word-of-mouth and public relations and publicity Amplify the effects created by other marketing activities through: Public relations and publicity Word-of-mouth

Savvy customers more complex brand families and portfolios difficulty in differentiating Economic downturns maturing markets Brand proliferation fragmenting media coverage Increased costs Greater accountability More sophisticated & increasing competition decrease brand loyalty in many categorie growth of private labels increasing trade power increasing promotional expenditures decreasing advertising expenditures increasing job turnover

Factors Responsible for Branding Challenges

Exposure - Seeing or hearing communication Attention - Noticing communication Comprehension - Understanding the intended message Yielding - Responding favorably to the message Intentions - Planning to act in the desired manner of communication Behavior - Actually acting in the desired manner

For a person to be persuaded by any form of communication the following steps must occur:

1. being exposed to the ad 2. the ad is interesting enough to catch viewer's attention 3. viewer has to understand what the ad is trying to say 4. viewer likes the ad 5. viewer has intention to learn more about the company 6. they actually have to do something about it/not forget

For person to be persuaded by any form of communication the following steps must occur (6 steps)

advertising & promotion interactive marketing events & experiences mobile marketing

Marketing Communication Options

Employees, suppliers, and channel members Media and government

Other factors that influence brand success and equity are

Points of parity are those elements that are considered mandatory for a brand to be considered a legitimate competitor in its specific category. you cannot launch a new brand without making sure you meet the points of parity. Points of differentiation are the attributes that make your brand unique. ie. Points of parity for banks: tellers, atm machines, finance consultants Points of differentiation for banks: customer service, speed of service

Points of parity vs points of differentiation

Defining and Communicating the Competitive Frame of Reference --> Choosing Points-of-Difference --> Establishing Points-of-Parity and Points-of-Difference --> Straddle Positions --> Updating Position Overtime --> Developing a Good Positioning

Positioning Guidelines

Differences in outcomes arise from the "added value" endowed to a product Brand equity provides a common denominator for interpreting marketing strategies and assessing the value of a brand There are many different ways in which the value of a brand can be exploited to benefit the firm

Principles of branding and brand equity

Event Marketing

Public sponsorship of events or activities related to sports, art, entertainment, or social causes. Can Range from extravagant sponsorship events to a simple local in-store product demonstration

1. BUILD Identifying and Establish Brand Positioning and Values (mental maps, competitive frame of reference, core brand associations, brand mantra) Designing and Implementing Brand Marketing Programs (mixing and matching of brand elements, integrating brand mkting activities) 2. MEASURE Measuring and Interpreting Brand Performance (brand value chain, brand audits, brand tracking, brand equity mgmt system) 3. MANAGE Growing and Sustaining Brand Equity (brand architecture, brand portfolios and hierarchies, brand expansion strategies, brand reinforcement and revitalization)

Strategic Brand Management Process (4 steps)

Marketing Communications

The various efforts and tools companies use to communicate with customers and prospects, including newspaper ads, event sponsorship, publicity, telemarketing, digital ads, and coupons, to mention just a few. Can contribute to brand equity by creating awareness of the brand Linking points-of-parity and points-of-difference associations to the brand in consumers' memory Eliciting positive brand judgments or feelings Facilitating a stronger consumer-brand connection and brand resonance

Have a "foot in the present" and a "foot in the future" Identify all relevant points-of-parity Reflect a consumer point of view in terms of the benefits that consumers derive Contain points-of-difference and points-of-parity that appeal both to the "head" and the "heart"

a good product positioning should...

brand architeture

a system that organizes brands, products and services to help an audience access and relate to a brand. an important guide for brand extensions, sub-brands and development of new products 3 types: 1. Branded House (FedEx, Google; Google Docs, Google Maps, etc) 2. House of Brands (P&G, Unilever) 3. Hybrid/Endorsing Brand (Toyota creating Lexus & Scion, Facebook buying Instagram, WhatsApp & OcculusRift)

Permit manufacturers to charge different prices to groups of consumers who vary in their price sensitivity Convey a sense of urgency to consumers Can build brand equity through actual product experience Encourage the trade to maintain full stocks and support the manufacturer's merchandising efforts

advantages of consumer promotions

Advertising

any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor Powerful means of creating strong, favorable, and unique brand associations and eliciting positive judgments and feelings

associative network memory model

argues that the mind is a network of nodes and connecting links. The key characteristics of a brand that influence brand equity can be captured as nodes and linkages. Brands change how people think, often below a conscious level. Brand associations are informational nodes linked to the brand node in memory

wield more customer power purchase a great variety of available goods and services (due to entrepreneuship & e commerce) obtain information via internet easily about anything easily interact with brands online thru social media or live chat interact w other customers for reviews

because of the new economy, consumers can now do these things whereas they couldnt before...

Brand Resonance

behavioural loyalty attitudinal attachment sense of community active engagement refers to the nature of the relationship that customers have with the brand and the extent to which customers feel that they are "in sync" with the brand. In CBBE this provides for a relationship by addressing the question What about you and me?

Customers own the brand Don't take shortcuts with brands Brands should have a duality Brands should have richness Brand resonance provides important focus

brand building implications

brand awareness and brand image Brand knowledge is the brand image, brand association etc which a customer creates after the company has created brand awareness through campaigns. A consumer may develop a poor brand image if they have a poor experience with the company let's say in terms of poor servicing or poor product exposure.

brand knowledge consists of?

OFFENSIVE: 1. memorable: Brand elements that help achieve a high level of brand awareness or attention to the brand, in turn facilitate the recognition and recall of a brand during purchase or consumption. 2. meaningful: descriptive & persuasive 3. likable: fun&interesting, visual & imagery, aesthetically pleasing. A memorable, meaningful and likable brand element makes it easier to build brand recognition and brand equity, thus reducing the burden on the marketer and thereby reducing the cost of marketing communications. DEFENSIVE: 4. transferable 5. adaptable: flexible & updatable. For example, Coca -Cola has been updating it's logo over the years to keep up with the latest trends, fashions and opinions. 6. protectable legally & competitively

criteria for choosing brand elements

a brand possesses relevant attributes and benefits that satisfy consumer needs and wants

favorability of brand associations is higher when...

Geotargeting

identifying a user's physical location for the purpose of delivering tailored ads or other content Marketers send messages to consumers based on their location and the activities they are engaging in

The traditional "marketing mix" concept and the notion of the "4 Ps" of marketing may not fully describe modern marketing programs Firms must still devise product, pricing, and distribution strategies as part of their marketing programs

implication of the new marketing approach by brands

subdimensions of brand building blocks

look at image

improved perceptions of product performance greater customer loyalty & retention (repeat customers) less vulnerable to competitive marketing actions from competitiors less vulnerable to marketing crises larger margins more inelastic consumer response to price increases (netflix still retained cust when they almost doubled their price) increased mkting comm effectiveness licening opportunities additional brand extension opportunities

marketing advantages of strong brands

Rapid technological developments Greater customer empowerment Fragmentation of traditional media Growth of interactive and mobile marketing options Channel transformation and disintermediation Increased competition and industry convergence Globalization and growth of developing markets Heightened environmental, community, and social concerns Severe economic recession

new approaches embraced by marketers

brand judgements

quality, credibility, consideration, superiority result of customer's opinion which they also make a comparison with other brands performance and imagery association Hilton hotels as an example, customer's attitude towards the hotel is based on how much he or she believe that the hotel gives the best service like a strategic location, food, bed, etc. The quality that Hilton hotel's offer to the customer makes he or she satisfy with their choice to stay at Hilton hotel.

Brand Equity

refers to a value premium that a company generates from a product with a recognizable name when compared to a generic equivalent. Companies can create _________ for their products by making them memorable, easily recognizable, and superior in quality and reliability allows for a company to demand a premium price for its product. For example, Lacoste has such strong _______ that the premium price is both accepted and expected by customers.

lose control over the manufacture and marketing of its goods in other countries, therefore product may not live up-to the image established by the brand licensing also may be less profitable than other choices because returns must be shared between two parties relying on the licensee's ability to effectively commercialise your patent. risk of poor strategy or execution damaging the product success. poor quality management damaging your brand or product reputation. you are basically relying on someone else to market your product for you.

risk of licensing

consumer promotions

sales strategies that encourage customers and prospects to buy a product or service ie. samples, demos, contests, cash refund offers, coupons, price off offers, sweepstakes

Creating brand awareness by increasing the familiarity (for brand recognition) and forging strong associations (for brand recall) is an important first step in building brand equity. first, create brand awareness - traditional marketing? increasing the familiarity of the brand through repeated exposure (use of logo, symbol, name, slogan, jingle, put it everywhere) then, create brand recognition by doing non-traditional marketing (sponsorships, product placement, event marketing, pr stunts, outdoor advertising, grassroot, brand recall needs something more than just techniques used for brand recognition. needs to remember a slogan, logo, and know what product category the brand is in.

steps to building brand equity (what to do and how)

Brand Imagery

the aesthetic appearance of your brand's core messaging. Just about anything that you can see, touch, taste, smell or hear. For instance, what does your preferred brand of cologne smell like? How does your favorite fast food burger taste? What does furniture from IKEA look like? The idea is to connect the right messages with your target audience so that they will have strong feelings. When there's no opportunity to touch, feel, taste, or smell something, sight quickly becomes the most valuable sense. ie. shapes n colour of a logo

Brand Salience

the degree to which your brand is thought about or noticed when a customer is in a buying situation. Strong brands have high ____ and weak brands have little or none. In CBBE, this projects the brand's identity answering the question Who are you? Deep, broad brand awareness

brand association

the mental links that consumers make between a brand and its key product attributes; can involve a logo, slogan, or famous personality anything which is deep seated in customer's mind about the brand. Brand should be associated with something positive so that the customers relate your brand to being positive.

brand proliferation

the opposite of brand extension. While in brand extension, new items are added using an existing brand name and several products are offered under the same brand name, here, more items are brought in with new brand names. In other words, the firm has several brands in the same product/product category. It means that the list of independent brands swells up. Ex. Unilever has more than 25 brands of ice creams and P&G has more than a dozen brands of detergents. This can help expand the market as well as the company's market share in the category. It can also increase the company's clout at the retail level by offering variety. Bad: More brands from a company's stable enhance competition in the market. It also paves the way for the company's brands to compete among themselves, aka brand cannibalization.

Create perceived differences amongst products Develop loyal customer franchise Create value that can translate to financial profits

thru branding, organizations can...(three things)

Identify their target customers Analyze the type of competition they might face in the identified market base Identify product features and associations that are different or similar to their competitors

to appropriately position a brand, marketers should...(3 tings)

Create favorable consumer response i.e. brand awareness Create positive brand image though brand associations that are strong, favorable, and unique

to create brand equity, marketers should...

brand names, URLs, logos & symbols, characters (Introduced through advertising and can play a central role in ad campaigns and package designs aka. michelin man), slogans (subway - eat fresh), jingles (mcd), packaging (makeup brands)

types of brand elements

- Identify the source or maker of the product - Simplify product decisions - Lower the search costs for products internally and externally - Helps set reasonable expectations about what consumers may not know about the brand - Signal product characteristics and attributes on the basis of attributes products can be classified as: Search goods, Experience goods, Credence goods - Reduce risks in product decision. These risk can be categorised as: Functional ,physical, financial, social psychological, and time

what are the functions provided by brands to consumers? (6 tings)

A name, term, sign, symbol, or design, or a combination of them. ● Intended to identify the goods and services of one seller or group of sellers. ● Differentiate goods and services from those of competitors. Creates a certain amount of awareness, reputation, prominence, and so on in the marketplace.

what is a brand?

Uniqueness of Brand Associations

•"Unique selling proposition" of the product •Provides brands with sustainable competitive advantage