MKT 453 CH. 1 - 3

value stages of brand value chain

(condensed version of previous notecard) (note: the multipliers fall in between each stage) 1. marketing program investment 2. program quality multiplier (distinctiveness, relevance, integrated, value, excellence) 3. customer mindset (brand awareness, brand associations, brand attitudes, brand attachment, brand activity) 4. marketplace conditions multiplier (competitive superiority, channel and other intermediary support, customer size and profile) 5. market performance 6. investor sentiment multiplier (market dynamics, growth potential, risk profile, brand contribution) 7. shareholder value

brand-building implications

- Customers own the brand = strongest brands are those that have customers who are so attached/passionate about the that they start to share their beliefs/spread the word about it; "the power of the brand and its ultimate value to the firm resides with customers" - Don't take shortcuts with brands = a great brand is a product of carefully accomplishing a series of logically linked steps; "the length of time to build a strong brand will therefore be directly proportional to the amount of time it takes to create sufficient awareness and understanding so that firmly held and felt beliefs and attitudes about the brand are formed that can serve as the foundation for brand equity" - Brands should have a duality = the brand appeals to both the head and the heart; appeal to both rational and emotional concerns; "strong brands blend product performance and imagery to create a rich, varied, but complementary set of consumer responses to the brand" - Brands should have richness = the number of possible ways to create meaning with consumers and the range of possible avenues to elicit consumer responses; depth and breadth; "at the same time, brands should not necessarily be expected to score highly on all the various dimensions and categories making up each core brand value" - Brand resonance provides important focus = marketers should use brand resonance as a goal and a means to interpret their brand-related marketing activities; help define proper role for the brand

online products and services

- Google, Facebook, Twitter - online marketers should create unique aspects of the brand on some dimension that is important to consumers - use off-line activities to draw consumers to their websites - partnerships are critical - use website design to maximize benefits of interactivity, customization, and timeliness

retailers and distributors

- brands generate consumer interest, patronage, and loyalty in a store, as consumers learn to expect certain brands and products - brands help retailers create an image and establish positioning - retailers can create their own brand image by attaching unique associations to the quality of their service, their product assortment/merchandising, and their pricing/credit policy - store brands/private label brands = the distributors own brand instead of manufacturer brands

physical goods

- business-to-business products = branding creates positive image and reputation for the company as a whole, creating goodwill with business customers to lead to greater selling opportunities - high-tech products = often struggle with branding and lack brand strategy but its becoming increasingly important

people and organizations

- compete for public approval and acceptance - benefit from conveying a strong and desirable image - politicians, entertainers, athletes

risks consumers may perceive in buying a product

- functional risks - physical risks - financial risks - social risks - psychological risks - time risks

why brands matter to consumers

- identify the source/maker of a product and allow consumers to assign responsibility to a particular manufacturer/distributor (identification and assignment of responsibility) - provide a shorthand device/means of simplification for consumer product decisions since consumers know which brands satisfy their needs - allow consumers to lower the search costs for products both internally and externally - serve as symbolic devices, allowing consumers to project their self-image - loyalty, promise, bond, or pact with maker of the product - sign of quality - risk reducer

geographic locations

- increased mobility of people/businesses and growth if tourism have contributed to the rise of place marketing

ideas and causes

- many of these have been branded, especially by nonprofit organizations

why brands matter to firms

- means of identification to simplify handling/tracing - means of legally protecting unique features (intellectual property rights) - signal of quality level to satisfied customers - means of endowing products with unique associations - source of competitive advantage - source of financial returns

three ways to address the problem of negatively correlated POPs and PODs

- separate the attributes = expensive; develop/launch two different marketing campaigns, each devoted to a different brand benefit; helps isolate the benefits so they aren't compared directly - leverage equity of another entity = brands link themselves to any kind of entity that possesses the right kind of equity (person, other brand, event, etc) - redefine the relationship = convince the consumers that in fact the relationship is positive; provide a different perspective and suggest that consumers may be overlooking other facts

Brand Equity as a Bridge

-Brands as a reflection of the past = marketing investments in what consumers saw, heard, learned, felt, and experienced about the brand; marketing activities that create valuable, enduring memory traces in the minds of consumers -Brands as a direction for the future = brand knowledge that marketers create over time dictates appropriate and inappropriate future directions for the brand; consumers decide, based on brand knowledge, where they think the brand should go

criteria to guide segmentation and target market decisions

-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? -profitability is an overarching consideration too

advantages of brand awareness

-learning advantages -consideration advantages (consideration set = the handful of brands that receive serious consideration for purchase) -choice advantages (consumer purchase motivation = sometimes a lack of perceived differences among brands; consumer purchase ability = lack of knowledge/experience to judge product quality)

updating positioning over time

-market opportunity = laddering (progresses from attributes/benefits to more abstract values/motivations) -market challenge = reacting (when a competitor tries to turn your brand's POD into a POP, you have three options: do nothing, go on the defense, go on the offense)

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; increasing familiarity of the brand through repeated exposure -consists of brand recognition and brand recall: ---brand recognition = consumers' ability to confirm prior exposure when given the brand as a cue; important at the point of purchase ---brand recall = consumers' ability to retrieve the brand from memory when given the product category, the needs fulfilled by the category, or a purchase or usage situation as a cue

three main ways to convey a brand's category membership

1) communicating category benefits 2) comparing to exemplars 3) relying on a product descriptor

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

1) defining and communicating the competitive frame of reference 2) choosing and establishing POPs and PODs

for the purposes of brand building, marketers want to understand both...

1) the percentage of target market that is present at each stage and 2) factors facilitating or inhibiting the transition from one stage to the next

five levels of meaning for a product

1. Core Benefit - the fundamental need/want 2. Generic Product - product contains only necessary characteristics for its functioning; no-frills version of the product 3. Expected Product - attributes/characteristics that buyers expect the product to have 4. Augmented Product - additional attributes/benefits that distinguish the product from competitors (most competition takes place here) 5. Potential Product - transformations the product might undergo in the future

strategic brand management process

1. Identifying and developing brand plans (brand positioning model, brand resonance model, brand value chain) 2. Designing and implementing brand marketing programs (choosing brand elements, integrating the brand into marketing activities and the supporting marketing program, leveraging secondary associations) 3. Measuring and interpreting brand performance (brand equity, brand audits, brand tracking) 4. Growing and sustaining brand equity (defining brand architecture, managing brand equity over time, managing brand equity over geographic boundaries/cultures/market segments)

steps in the brand resonance model

1. ensure identification of brand/association of brand in customers' minds with a specific product class, product benefit, customer need (who are you?) 2. establish the totality of brand meaning in the minds of customers by strategically linking a host of tangible/intangible brand associations (what are you?) 3. elicit proper customer responses to the brand (what about you? what do I think/feel about you?) 4. convert brand responses to create brand resonance and an intense, active loyalty relationship between customers and the brand (what about you and me? what kind of association and how much of a connection would I like to have with you?)

three major categories of products

1. search goods - consumer evaluate product attributes (size, color, weight, design, etc.) by visual inspection 2. experience goods - actual product trial and experience is necessary to evaluate product attributes (ex. car tires) 3. credence goods - consumers rarely learn product attributes (ex. insurance coverage)

brand mantra

A short, three to five word phrase that captures the irrefutable essence or spirit of the brand positioning; similar to "core brand promise"; provides guidance about what products to introduce under the brand, what ad campaigns to run, and where and how the brand should be sold; helps the brand present a consistent image; includes brand functions, descriptive modifier, and emotional modifier

brand

AMA def: a name, term, sign, symbol, or design, or a combination of these, that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors managers def: something that has actually created a certain amount of awareness, reputation, prominence, and so on in the marketplace; something that resides in the minds of consumers

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descriptive modifier

Further clarifies the nature of the product or service; goes along with brand functions and mantra

Marketing Advantages of Strong Brands

Improved perceptions of product performance. Greater loyalty. Less vulnerability to competitive marketing actions. Higher margins. More inelastic consumer response to price increases. More elastic consumer response to price decreases. Greater trade cooperation and support. Increased marketing communication effectiveness. Possible licensing opportunities. Additional brand extension opportunities.

emotional modifier

Provides another qualifier - how exactly does the brand provide benefits and in what ways?

straddle positions

a company will be able to straddle two frames of reference with one set of POPs and PODs; the PODs in one category become the POPs in another and vice versa

brand audit

a comprehensive examination of a brand to assess its health, uncover its sources of equity, and suggest ways to improve and leverage that equity

brand value chain

a means to trace the value creation process for brands, to better understand the financial impact of brand marketing expenditures and investments

Brand Equity Measurement System

a set of research procedures designed to provide timely, accurate, and actionable information for marketers so that they can make the best possible tactical decisions in the short run and the best strategic decisions in the long run a set of organizational processes designed to improve the understanding and use of the brand equity concept within a firm

steps in the brand value chain

a structured approach to assessing the sources and outcomes of brand equity and the manner by which marketing activities create brand value stage 1) the firm invests in a marketing program targeting actual or potential customers stage 2) the associated marketing activity then affects the customer mindset as reflected by the brand resonance model stage 3) this mindset, across a broad group of customers, produces the brand's performance in the marketplace stage 4) the investment community considers this market performance to arrive at an assessment of shareholder value in general and a value of the brand in particular

product

anything we can offer to a market for attention, acquisition, use, or consumption that might satisfy a need or want; i.e. a cereal, tennis racquet, professional athlete, nonprofit, bank, airline, automobile, etc.

points-of-parity associations (POPs)

are not necessarily unique to the brand but may in fact be shared with other brands; three types: 1) category 2) competitive 3) correlational

brand positioning

at the heart of the marketing strategy; the act of designing the company's offer and image so that it occupies a distinct and valued place in the target customer's minds; marketers need to know: 1) who the target consumer is 2) who the main competitors are 3) how the brand is similar to these competitors 4) how the brand is different from them

points-of-difference (PODs)

attributes or benefits that consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand; may rely on performance attributes or performance benefits; may come from imagery associations; two common PODs are "overall superior quality" and low-cost provider"

deliverability criteria

based on a company's inherent capabilities; depends on both a company's actual ability to make the product or service (feasibility) as well as their effectiveness in convincing consumers of their ability to do so (communicability)

consumer segmentation bases

behavioral = user status, user rate, usage occasion, brand loyalty, benefits sought demographic = income, age, sex, race, family psychographic = values, opinions, and attitudes; activities and lifestyle geographic = international, regional

two components of brand knowledge/brand equity

brand awareness brand image

brand tracking studies

collect information from consumers on a routine basis over time, typically through quantitative measures of brand performance on a number of key dimensions marketers can identify in the brand audit or other means

marketers can benefit from branding whenever...

consumers are in a choice situation

the key to branding is that

consumers perceive differences among brands in a product category

brand image

consumers' perceptions about a brand, as reflected by the brand associations held in consumer memory -consists of brand attributes and benefits --- brand attributes = those descriptive features that characterize a product or service ---brand benefits = the personal value and meaning that consumers attach to the product or service attributes

brand feelings

customers' emotional responses and reactions to the brand - transformational advertising = advertising designed to change consumers' perceptions of the actual usage experience with the product six important types of brand-building feelings: 1. warmth 2. fun 3. excitement 4. security 5. social approval 6. self-respect

brand judgements

customers' personal opinions about and evaluations of the brand, which consumers form by putting together all the different brand performance and imagery associations four important brand judgements are judgements about... 1. quality = customer value and satisfaction 2. credibility = the extent to which customers see the brand as credible in terms of perceived expertise, trustworthiness, and likability 3. consideration = customers must consider the brand for possible purchase or use 4. superiority = extent to which customers view the brand as unique and better than other brands

positioning

defining our desired or ideal brand knowledge structures and establishing points-of-parity and points-of-difference to establish the right brand identity and brand image

brand resonance model

describes how to create intense, activity loyalty relationships with customers

brand positioning model

describes how to guide integrated marketing to maximize competitive advantages

brand performance

describes how well the product or service meets customers' more functional needs five types of brand attributes/benefits that underlie brand performance: 1. primary ingredients and supplementary features 2. product reliability (consistency), durability(life time), and serviceability(ease of repairs if needed) 3. service effectiveness(how well it satisfies), efficiency(speed/responsiveness), and empathy(service providers are trusting/caring/etc) 4. style and design 5. price

brand imagery

describes the extrinsic properties of the product or service, including the ways in which the brand attempts to meet customers' psychological or social needs; refers to more intangible aspects of the brand four main intangibles linked to a brand: 1. user profiles = type of person/organization who uses the brand; demographic, psychographic, or B2B factors 2. purchase and usage situations = under what conditions/situations consumers can/should buy and use the brand 3. brand personality and values = through consumer experience/marketing brands take on personality traits/human values; 5 dimensions of brand personality: sincerity, excitement, competence, sophistication, ruggedness 4. history, heritage, and experiences -brand history, heritage, and experiences = brands may take on associations to their past and certain noteworthy events in the brand's history; can help create strong PODs

brand functions

describes the nature of the product or service or the type of experiences or benefits the brand provides

desirability criteria

determined from consumer's point of view; the POD must be personally relevant and important to the consumer

differentiation criteria

determined relative to the competitors; consumers must find the POD distinctive and superior to competitors

brand elements

different components of a brand that identify and differentiate it; name, logo, symbol, package design, etc.

brand hierarchy

displays the number and nature of common and distinctive brand components across the firm's set of brands

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; requires making trade offs between costs and benefits

brand building blocks

from bottom to top of pyramid: - brand salience (bottom) - brand performance - brand imagery - brand judgements - brand feelings - brand resonance (top)

reasons to believe (RTBs)

important underlying "proof points" of consumer benefits; these "proof-points" can come in many forms: functional design concerns, key attributes, key ingredients, key endorsements

the most valuable assets many firms have are their...

intangible assets; i.e. management skills, marketing, financial and operations expertise, etc.

strategic brand management

involves the design and implementation of marketing programs and activities to build, measure, and manage brand equity

a brand is more than a product because

it can have dimensions that differentiate it in some way from other products designed to satisfy the same need

brand salience

measures various aspects of the awareness of the brand and how easily and often the brand is evoked under various situations or circumstances -breadth and depth of awareness = depth is how likely it is for a brand to come to mind ; breadth is the range of usage and purchase situations in which the brand comes to mind -product category structure = how product categories are organized in memory; levels of info (high to low): product class, product category, product type, and brand info -strategic implications = brand must be at top-of-mind AND must do so at the right time/place

business-to-business segmentation bases

nature of good = kind, where used, type of buy buying condition = purchase location, who buys, type of buy demographic = SIC code, number of employees, number of production workers, annual sales volume, number of establishments

correlational points-of-parity

potentially negative associations that arise from the existence of other, more positive associations for the brand; i.e. in the minds of consumers, if your brand is good at one thing it can't be good at another too (ex. can't be both inexpensive and good quality); POPs can undermine PODs

category points-of-parity

represent necessary - but not necessarily sufficient - conditions for brand choice; most likely at the expected product level

services

role of branding with services = branding can be particularly important to service firms as a way to address intangibility and variability problems; brand symbols help make the abstract nature of services more concrete professional services = prof services branding is a combo of B2B branding and traditional consumer branding; corporate credibility is key in terms of expertise/trustworthiness/ likability, long-term relationships are crucial, individual employees hold more equity in the firm, referrals and testimonials can be powerful here

branding challenges and opportunities

savvy customers = more experience, more knowledge, more demanding, vast number of sources for info economic downturns = recessions cause attitudes/behaviors to change, many consumers switch to cheaper brands and might never return to using the more expensive one after brand proliferation = spurred by the rise in line and brand extensions; new products all recognized with different names but under one brand media transformation = communication budgets have shrunk; marketers spending more on nontraditional forms of communication such as interactive digital media, sports and event sponsorship, etc. increased competition = globalization, low-priced competitors, brand extensions, deregulation increased costs greater accountability = marketers have ambitious short-term profit targets

sports, art, and entertainment

sports - not longer content to allow win-loss records to dictate attendance levels - using combo of advertising, promotions, sponsorship, direct mail, digital, and other communications - build awareness, image, and loyalty to keep ticket sales up entertainment/arts - example of experience goods - moviegoers use the title, actors, producers, directors and more to know if they want to go - strong brand is valuable in entertainment bc of the fervent feelings that names generate as a result of pleasurable past experiences

strength of brand associations

strongest brand associations come from direct experiences and word-of-mouth weakest brand associations come from company-influenced sources of information like advertising

branding

teaches consumers "who" the product is; give it a name and other brand elements to identify it; gives consumers a label for the product and provides meaning for the brand

three key considerations in determining whether an attribute/benefit for a brand can serve as a POD:

the brand association must be seen as desirable, deliverable, and differentiating

customer-based brand equity occurs when...

the consumer has a high level of awareness and familiarity with the brand and holds some strong, favorable, and unique brand associations in memory

customer-based brand equity

the differential effect that brand knowledge has on the customer response to marketing efforts; the power of a brand lies in what resides in the minds and hearts of customers

brand resonance

the nature of the relationship and the extent to which customers feel that they are "in-sync" with the brand; focuses on ultimate relationship and level of identification customer has with the brand; characterized by intensity and activity four categories of intensity and activity: 1. behavioral loyalty = repeat purchases and the amount/share of category volume attributed to the brand; how often and how much customers purchase 2. attitudinal attachment = personal attachment to the brand; view brand as something special in a broader context 3. sense of community = social phenomenon in which customers feel a kinship/affiliation with others who use the brand 4. active engagement = strongest affirmation of brand loyalty; customers are willing to invest time, energy, and money or other resources in the brand beyond those expected during purchase/consumption of brand

market

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

brand portfolio

the set of different brands that a particular firm offers for sale to buyers in a particular category

regardless of how many words make up the brand mantra, however,...

there will always be a level of meaning beneath the brand mantra itself that will need to be articulated

competitive points-of-parity

those associations designed to negate competitors' points of difference; "break even" with competitors

associative network memory model

views memory as a network of nodes and connecting links, in which nodes represent stored information or concepts, and links represent the strength of association between the nodes