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