Strategic Brand Management

Building Brand Community:

- Allow, facilitate, and encourage interaction online & offline with others - Give them something to talk about

Four Components of Brand Resonance

- Behavior Loyalty - Attitudinal attachment - Active engagement - Sense of community

Branches of brand awareness

- Brand recognition - Brand recall

Salience

- Depth and breadth of brand awareness Recognition and recall at purchase and consumption - How easily and often the brand is thought of In all the right places ...at all the right times ... in all the right ways

Customer-Based Brand Equity

- Differential effect in customer response to the brand - Consumer response to marketing - Brand Knowledge

BAV's Four Pillars of Brand Health

- Energized differentiation - Relevance - Esteem - Knowledge

Brand feelings can be divided into two broad categories

- Experiential - Enduring

Segmentation Criteria

- Identifiability - size - Accessibility - Responsiveness

four elements or components of a positioning statement:

- Target audience - Frame of reference - benefit/point of difference - reason to believe

Brand Resonance

- The marketing challenge is to ensure consumers have the right types of experiences to create the right brand knowledge - Brand resonance is when consumers feel that they are "in synch" with a brand - Creating brand resonance involves a series of steps as part of a "branding ladder" - Creating brand resonance is also characterized by a logically constructed set of brand "building blocks."

Brand resonance

- The marketing challenge is to ensure consumers have the right types of experiences to create the right brand knowledge - Brand resonance is when consumers feel that they are "in synch" with a brand - Creating brand resonance involves a series of steps as part of a "branding ladder" - Creating brand resonance is also characterized by a logically constructed set of brand "building blocks."

Associative Network Memory Model

- associations - memory traces

Types of brand associations

- attributes - benefits - overall evaluation (attitude)

Enduring feelings

- sense of security (inner-directed) - social approval (outer-directed) - self-respect (actualization)

Branches of brand image

- types of brand associations - favorability, strength and uniqueness of brand association

Types of experiential feelings

- warm - fun - exciting

Two dimensions of brand knowledge

- what do you know about the brand - How well you know the brand, how accessible is this information

The Four Steps of Brand Building

1.Ensure identification/association of the brand in customers' minds 2.Establish the totality of brand meaning in the minds of consumers 3.Elicit the proper customer responses to the brand identification and brand meaning 4.Convert brand response to create an intense, active loyalty relationship between customers and the brand

The four steps of brand building

1.Ensure identification/association of the brand in customers' minds 2.Establish the totality of brand meaning in the minds of consumers 3.Elicit the proper customer responses to the brand identification and brand meaning 4.Convert brand response to create an intense, active loyalty relationship between customers and the brand

Brand image

All the different associations attached to the brand

Accessibility

Are specialized distribution outlets and communication media available to reach the segment?

Importance of Brands to Consumers

As an identification of the source of the product •Assignment of responsibility to product maker •Reduces risk associated with buying and using a product or service •Reduces search cost, signals quality, value, etc. •Promise, bond, or pact with product maker •Symbolic device

Brand recognition

Being able to tell its a Nike signal or that N_____E is Nike

Esteem and knowledge form what?

Brand stature - which captures a brand's familiarity and the extent a brand has succeeded in building knowledge and respect These are lagging indicators since brands tend to develop these after energized differentiation and relevance start to fade

Energized differentiation and relevance form __________

Brand strength - a brand's ability to exist as a viable entry, defend itself from competition and the source for margin and earnings

Building Behavioral Loyalty

Break down barriers at purchase & consumption Broaden customer access points •Find appropriate new distribution outlets •Elicit additional & new consumption opportunities

Brand Recal

By giving a consumer a category, they can come up with brand (ex; cereal brands, someone thinks of frosted flakes)

The depression

Consumers Tighten Belts

Feelings

Consumers emotional responses and reactions to the brand - Can be mild or intense; positive or negative; or experiential or enduring in nature. - Can also relate to the social currency evoked by the brand

Reducing the risks in product design

Consumers may perceive many different types of risks in buying and consuming a product: - functional risk - physical risk - financial risk - social risk - psychological risk - time risk

Judgments

Consumers overall brand evaluations - How consumers combine performance and imagery associations to form different kinds of brand opinions - Quality, satisfaction, credibility, consideration, superiority

The power of the brand is based on ____________ _____________

Customer perceptions •What they have experienced and learned about the brand over time. •Every positive effort is an investment that builds future return.

Behavioral loyalty

Customers' repeat purchases and the amount or share of category volume attributed to the brand

How many POD's should you have?

Develop 3-5 unique brand points-of-difference (POD's) - Desirable to consumer - Deliverable by the company - Differentiated from competitors

How many POP's should you have?

Establish 2-4 shared brand points-of-parity (POP's) - Negate competitor points-of-difference - Overcome perceived vulnerabilities from points-of-difference - Demonstrate category credentials

Can Keller's Brand Equity Pyramid be applied in a B2B setting?

Findings suggest that it can with adjustment: •Greater emphasis on the corporate brand •Credibility, reliability, trust •More functional/rationale associations •Resonance more difficult to achieve Brand equity different, but how?

Achieving resonance

First, must create foundation for resonance - Proper salience & breadth & depth of awareness - Firmly established point-of-parity & points-of-difference - Positive judgments & feelings that appeal to the head & the heart Then, must optimize four dimensions of brand resonance

Achieving Resonance

First, must create foundation for resonance - Proper salience & breadth & depth of awareness - Firmly established point-of-parity & points-of-difference - Positive judgments & feelings that appeal to the head & the heart Then, must optimize four dimensions of brand resonance

Template for a Positioning Statement

For (target audience), (brand name) is the (frame of reference) that delivers (benefit/point of difference) because only (brand name) is reason to believe

Responsiveness

How favorably will the segment respond to a tailored marketing program?

Imagery

How people think about a brand abstractly rather than what they think the brand actually physically Brand imagery is thus more extrinsic properties of the brand

Brand Awareness

How well do you know the brand, how accessible this information?

Brand Positioning

Is at the heart of the marketing strategy

Size

Is there adequate sales potential in the segment?

Building Brand Engagement

Must have people read about, talk about, think about, and engage in activities with the brand Create opportunities for brand involvement

Industrial Revolution

Production Capacity Up

War

Production capacity up, more belt tightening

Building Brand Attachment

Stake out emotional territory Celebrate uniqueness & make indispensable

Time risk

The failure of the product results in an opportunity cost of finding another satisfactory product.

Psychological risk

The product affects the mental well-being of the user.

Financial risk

The product is not worth the price paid

physical risk

The product poses a threat to the physical well-being or health of the user or others

Social risk

The product results in embarrassment from others.

Brand knowledge

To what extent are we aware of/know the brand

True or false: POP and POD are often negatively correlated.

True

True or false: brand strength is a leading indicator as brands develop this aspect first. When brands start to fade, brand strength is lost first

True

Determining a frame of reference

What are the ideal points-of-parity and points-of-difference brand associations vis-à-vis the competition? Marketers need to know: •Who the target consumer is •Who the main competitors are •How the brand is similar to these competitors •How the brand is different from them

Brand Image

What do you know about the brand?

Performance

What the brand does to meet customers' more functional needs. - Brand performance refers to the intrinsic properties of the brand in terms of inherent product benefits.

Active engagement

When customers are willing to invest personal resources on the brand - time, energy, money, etc. -beyond those resources expended during purchase r consumption of the brand

Sense of community

When customers feel a kinship or affiliation with other people associated with the brand

Attitudinal Attachment

When customers view the brand as being something special in a broader context

Branding elements

all aspects of the brand that are used to identify and differentiate the "Brand".

Points-of-parity associations (POPs)

are not necessarily unique to the brand but may in fact be shared with other brands.

Points-of-difference (PODs)

attributes or benefits that consumers strongly associate with a brand, positively evaluate, and believe that they could not find to the same extent with a competitive brand

Esteem

consumer respect, regard, reputation, and is the fulfillment of the brand's promise - how well a brand fulfills its implied or overtly stated consumer promise

Corporate brand

defines the firm that will deliver and stand behind the offering

Market segmentation

divides the market into distinct groups of homogeneous consumers who have similar needs and consumer behavior, and who thus require similar marketing mixes

Relevance

drives usage and is the measure of what is personally appropriate to consumers

Experiential

immediate, short-lived during purchase/consumption

Together, the four pillars tell the story of a brand's ___________

lifecycle

memory traces

linkages between nodes (linking frosted flakes to tony the tiger, or links cereal to raisin bran)

Ultimately, the value of the brand to marketers depends on how they _________

manage the brand

associations

nodes of information (frosted flakes activity)

Enduring

private, possibly part of day-to-day life

In what decade does modern branding really take off?

the 1950's

Target audience

the attitudinal and demographic description of the core prospect to whom the brand is intended to appeal; the group of customers that most closely represents the brand's most fervent users

Energized differentiation

the basis for consumer choice: the essence of the brand and source of margin and pricing power. It is an attraction to something different, something intriguing - a look, an attitude, a behavior - something that makes a person want to know more

Frame of reference

the category in which the brand competes; the context that gives the brand relevance to the customer.

Knowledge

the culmination of brand building efforts and is the outcome of brand development, through a consumer's intimate relationship with the brand

Benefit/point of difference

the most compelling and motivating benefit that the brand can own in the hearts and minds of its target audience relative to the competition

Reason to believe

the most convincing proof that the brand delivers what it promises

functional risk

the product does not perform up to expecations

Brand associations

type of image - attributes of the brand, product, service - Benefits of using - Overall evaluation, liking - brand attitude

Brand Mantras

•An articulation of the "heart and soul" of the brand, similar to "brand essence" or "core brand promise" •Short three- to five-word phrases that capture the irrefutable essence or spirit of the brand positioning and brand values

Identifiability

•Can we easily identify the segment?

Two key issues in arriving at the optimal competitive brand positioning are:

•Defining and communicating the competitive frame of reference •Choosing and establishing points-of-parity and points-of-difference

Choosing POP's & POD's - Deliverability criteria (firm perspective)

•Feasible •Profitable •Pre-emptive, defensible, and difficult to attack (POD)

What is a brand?

•For this course, the "Brand" (with a capital "B") is the complete mental representation of all that is associated with an attitude object (any entity that can be branded - product, place, person, group, etc.).

Importance of Brands to Firms

•Identification of ownership to simplify handling or tracing (original reason for branding livestock) •Legally protecting unique features •Endowing products with unique associations •Source of competitive advantage •Source of financial returns

The Brand Equity Concept

•Multiple conceptualizations •All views stress the importance of brand in the effectiveness of marketing strategies. • Always defined in terms of the marketing effects uniquely attributable to the brand.

Choosing POP's & POD's - Desirability criteria (consumer perspective)

•Personally relevant •Believable and credible •Distinctive and superior (POD)

Attribute and Benefit Trade-offs: Negatively Correlated Claims

•Price and quality •Convenience and quality •Taste and low calories •Efficacy and mildness •Power and safety •Ubiquity and prestige •Comprehensiveness (variety) and simplicity •Strength and refinement

Consumer response to marketing

•Recognition of brand in marketplace, in ads, etc •Recall of brand when considering category •Response to sales promotion, etc •Choice •Willingness to pay a price premium •Evaluations of a proposed brand extensions

Designing the Brand Mantra

•The brand function describes the nature of the product or service or the type of experiences or benefits the brand provides. •The descriptive modifier further clarifies its nature. •The emotional modifier provides another qualifier—how exactly does the brand provide benefits, and in what way?

History of early branding

•The word brand comes from the Old Norse brandr, meaning to burn. •Brands burned into livestock were used to establish ownership. •As quality differences arose, brands were used by buyers to guide choice and price. •In Ancient Rome, potter used stars, fish, etc. to designate makers. • In the British Museum there are examples of pottery bearing imitation Roman marks - the first known case of trademark infringement.

Why study theoretical models

•Theory helps us to understand why and how? •Theory and basic principles do not change, only context changes. Understanding the theory behind any concept will allow you to adjust with changes in the context

Usefulness of managerial models

•Translates theory into an organizing framework. •Provides guidance on what parameters to consider. Provides direction in understanding outcomes of decisions

Four important intangible dimensions of brand imagery are:

•Type of user •Brand personality •History & heritage •Experiences

We most often focus only on points-of-difference (what sets our brand apart from competitors), But, this can be a mistake and two additional questions need to be addressed:

•What is our frame of reference? •Are we leveraging our points of parity