Chapter 9
Informational labeling
- helps make proper selections - lowers cognitive dissonance - includes use/care
Brand strength
- leadership (25%) - stability 15 - market 10 Geographic spread 25 Trend 10 Support 10 Protection 5
Benefits to consumers (BE)
- search cost reducer - signal of quality - risk reducer - symbolic device
BE benefits to companies
- source of comp advantage - predictability and security of demand - barriers to entry - financial returns
4 connecting attributes of a strong brand
1. Consistent brand message 2. Focus on long-term growth 3. manage customer experience 4. meaningful, memorable, likable
Functions of packaging.
1. contain and protect 2. promote 3. facilitate storage, use and convenience 4. facilitate recycling
Brand Elements
A brand is an identifying name, term, design, symbol or any other feature that identifies one marketer's product as distinct from those of other marketers. Branding helps buyers identify and evaluate products. It also benefits sellers by facilitating product introduction, repeat purchasing, and promotional efforts.
Brand
A name, term, sign, symbol, or design, or a combo of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors
Attributes of a strong brand
A strong brand occupies a distinct position in consumer's minds based on relevant benefits and creates an emotional connection between businesses and consumers
Interbrand's Brand Equity formula
Brand Earnings = - brand sales - cost of sales - marketing costs - overhead expenses - remuneration of capital charge - taxation
How can we measure this intangible value?
Brand Equity. If MV/Tangible Assets > 1 then we've created intangible value Coke... stock price x shares divided by tangible assets is 5 then it is intangible
Branding Strategies
Brand/No brand Manufacturer's brand - Private brand - Individual brand, family brand, combo
The role of Brands
Branding within the middle... 1. Higher perceived quality 2. Price premium 3. Greater market share 4. Financial strength 5. Brand expansion
Branding
Core benefit... What is the customer really buying? Value proposition...What does the brand deliver that customers value? Must be competitively superior
Brand Asset Valuator (BAV)
Differentiation, Relevance, Esteem, Knowledge
Building brands
How do marketers strategically attempt to create a stronger brand in the marketplace? Concepts such as brand image, brand personality, and co-branding will be investigated to illustrate this process
Your brand isn't what YOU say it is...
It's what THEY say it is
Marketing and branding
Marketing creates, communicates, and delivers the product
Building strong brands
Provides identity, projects the right messages, saves time
Brand personality frmaework
Sincerity, excitement, competence, sophistication, ruggedness sincerity: down to earth, honest, wholesome cheerful Excitement: daring, spirited, imaginative, up to date
Brand Elements (collection that differentiates you)
Slogans, brand names, websites, characters, color scheme, logos
Aaker's five levels of customer attitude toward a brand
TOP TO BOTTOM 1. Devoted to brand 2. Values the brand (brand as friend) 3. Satisfied and Switching Cost 4. Satisfied Customer(no reason to change) 5. No brand loyalty (customer will change)
Brands are the touch points to a consumer
They stand for something. brands are a promise to deliver specific benefits associated with products or services to consumers. (Nike, apple, MD)
Brands are intangible...
but they have tangible impact on consumers product experience
Package shape and size
can package size accelerate usage volume? - people our from 15-40% more from large vs. small containers Shape = people perceive tall, slender glasses to hold more than short, wide glasses. pouring drinks.
Persuasive labeling
focuses on promotional theme consumer information is secondary
Marketing creates
intangible value
Building strong brands starts with
positioning
Brand equity is...
reflective of long-term trust built by brand in consumers' mind indicative of "strength" of brand and brand "fit" with consumers can be so strong that brand name becomes the category name(master brand)
Brand image
salient and feeling-related associations
Brand personality
specific "personality-type" traits or characteristics ascribed by consumers to different brands *Comes through in the things you decide to TALK about
Packaging and labeling
the final goal is to understand how packaging and labeling is used in marketing strategies. Effective packaging offers protection, economy, safety, and convenience. Labeling is used for identification, promotional, and information and legal purposes.
Brand Equity
the marketing and financial value associated with a brand's strength. The major components of a brand equity include brand name awareness, brand loyalty, perceived brand quality, and brand associations.