Brand Ch1

2 issues for arriving at optimal brand positioning

1) Defining and communicating the competitive frame of reference and 2) choosing and establishing points of parity and points of difference.

advantages of brand awareness

1) Learning advantages: Register the brand in the minds of consumers. Formation and strength of associations - brand image. 2) Consideration advantages: Increases the likelihood that the brand will be a member of the consideration set. 3) Choice advantages: Affect choices among brands in the consideration set. More likely to buy from well known brands.

brand postioning

Act of designing the company's offer and image so that it occupies a distinct and valued place in the target customer's mind. How the product is defined by consumers on important attributes relative to competitive offerings.

brand associations

Are either benefits or attributes. Marketers should aim to create favorable, strong and unique brand associations.

points of parity associations

Are not necessarily unique to the brand but may be shared with other brands. Three types: Category - necessary to be included in category Competitive - negate competitors' PODs Correlational - potential negative associations that arise from positive associations - inexpensive/low quality

points of difference associations

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. Ex: Starbucks compared to McDonalds: quality, image, experience and variety

Dominant awareness

Brand with the highest awareness.

brand recognition

Consumer's ability to confirm prior exposure to the brand when given the brand as a cue.

brand recall

Consumer's ability to retrieve the brand from memory when give the product category or a purchase or usage situation as a cue.

brand image

Consumer's perceptions about a brand as reflected by the brand associations held in consumer memory. For a strong brand image presentations should be consistent over time and have a strong and relevant meaning or association.

Why are brands important to customers and firms?

Customers, Risk Reducer, Signal of quality, Legally protects unique features, Influence consumer behavior, source of competitive advantage

4 types of segmentation

Demographic, psychographic, geographic and behavioral.

brand attributes

Descriptive features that characterize a product or service.

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. Behavioral segmentation is often the most valuable in understanding branding issues because they have clearer strategic implications.

Top-of-mind

First brand to come to mind.

brand knowledge

Has two components: brand awareness and brand image.

customer-based brand equity

Keller: The differential effect that brand knowledge has on consumer response to the marketing of that brand. Aaker: A set of assets linked to a brand's name and symbol that adds to the value provided by a product or service to a firm and/or that firm;s customers.

Internal Branding

Members of the organization are properly aligned with the brand and what it represents. Crucial for service companies.

brand elements

Name, symbol, logo, character, packaging, slogan, advertising or promotion.

quality vs quantity

Quality of investment into brand is more important than quantity.

brand awareness

Related to the strength of the brand node or trace in memory, which we can measure as the consumer's ability to identify the brand under different conditions. Consists of brand recognition and brand recall.

establishing brand awareness

Repeated exposure to brand elements. Customer needs to experience the brand by seeing it, hearing it and thinking about it.

nodes

Represent stored information or concepts.

links

Represent the strength of association between the nodes.

market

Set of all actual and potential buyers who have sufficient interest in, income for, and access to a product.

brand mantra

Short, 3 to 5 word phrase that captures the irrefutable essence or spirit of the brand positioning.

brand benefits

The personal value and meaning that consumers attach to the product or service attributes.

associative network model

Views memory as a network of nodes and connecting links.

geographic

country, region

marketing advantages of strong brands

greater loyalty, improved perceptions of product performance, larger margins, less vulnerability to competitive marketing actions, less price sensitivity to increased prices, possible licensing opportunities

demographic

income, age, sex, race, family

Three components of Brand Mantra

o Brand functions describes the nature of the product or service or the type of experiences or benefits the brand provides. o Descriptive modifier further clarifies its nature. o Emotional modifier provides another qualifier—how exactly does the brand provide benefits, and in what way? o EXAMPLE: Nike: BF - Performance, DM - Athletic, EM - Authentic...Disney: BF: Entertainment, DM - Family, EM - Fun...McD's: BF - Food, DM - Folks, EM - Fun

POD: Deliverability Criteria

o Deliverability criteria (firm perspective) Feasible Communicability

POD: Desirability Criteria

o Desirability criteria (consumer perspective) Personally relevant Distinctive and superior Believable and credible

Differences Between Brand Recall and Recognition

o Many consumer decisions are made at the point of purchase, where the brand name, log, packaging, and so on will be physically present and visible, then brand recognition will be important. o If consumer decisions are more mostly made in settings away from point of purchase, on the other hand, then brand recall will be more important o We are generally more adept at recognizing a brand than at recalling it

Mental Map

see example on study guide

behavioral segmentation

user status, usage rate, usage occasion, brand loyalty, benefits sought

psychographic

values, opinions, attitudes, acitivities and lifestyle

criteria for guiding segmentation

• Identifiability: Can we easily identify the segment? • Size: Is there adequate sales potential in the segment? • Accessibility: Are specialized distribution outlets and communication media available to reach the segment? • Responsiveness: How favorably will the segment respond to a tailored marketing program?