FASH430: Exam 1
American Marketing Association definition:
"name, term, sign, symbol, design or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition. these different components of a brand that identify and differentiate it are brand elements."
Branding Process (graphic)
Brand Decision - company, consumer, culture Positioning Strategy: Product Mix - features, price, distribution, support Identity: symbols, personality Positioning Communication Consumer Experience (the image) Audit & Evaluation Growth/Repositioning Strategies
What's under brand development?
Brand extensions - line and category extensions sold under a particular brand
How do you create customer value?
By creating customer brand relationships which are the foundation of brand resonance and building a strong brand
The Customer (Graph)
Consumer Adoption Pattern (horizontal), Magnitude (vertical) bell curve Innovators, Early Adopters, Early Majority, Late Majority, Laggards
What are the type of brand experiences?
Consumer experiences - shopping and service (location, synergy, interactive, integration) Environments - pop-up shops, endorsements Events - PR event, brand spectacle
Risk?
Financial risk (buyers remorse), physical risk (threat to well-being/health), Time risk (shipping) quality, social reputation/responsibility (embarrassment from others, morals, ethical, psychological) functional risk (not performing) brand risk Opportunity cost (searching & purchasing products)
Things a valuable brand does?
Heighten brand awareness develop favorable associations consistent reinforcement create emotional connections
What does brand anatomy include?
Identifier Symbols-->Emotional Benefits-->Functional Benefits-->Core Essence-->Heritage Personality
What type of brand extensions are there?
Line extensions - new products issued under an existing brand to a new target market (crew cuts) Category extensions - successful brand names help introduce new products (vera wang for kohl's) Multibrands - multiple product entries in a product category w/ different brand names New brands: new product category
Core Essence
Most Basic Brand Value clearly defines the basic benefit a brand offers to its customers, identifying a brand's core benefit guide all over activities and significantly enhances its longevity market scope and financial value
What is a brand?
Name or image Identity or representation of a company with a person
Key Brand Basics: What is a brand?
Name, symbol, a person can be branded, company/organization, set of characteristics & expectations, promise of benefits, trademark, campaign, positioning, actual product or service
Positioning Approach (map)
Positioning Map Split up into fourths High Variable at the top Low Variable at the bottom Period A (top left) Period C (top right) Period B (bottom left) Period D (bottom right)
What's Marketing Mix (4Ps) - Nike
Product, Price, Promotion, Place
Product Mix:
Product, Price, Service, Distribution product features + price, location and service when a person buys a product the decision & experience isn't isolated from its price, where it's sold and the service that comes with it
Can everything be branded?
Resides in the minds of consumers Key to branding is that consumers perceive differences among brands in a product category Yes
Example: Starbucks
Salience - high recognition, well known Performance - uniqueness in design/material, variety, customize, best service, relaxed Imagery - modern lifestyle, working age, stylish, wealth Judgement - credibility: premium brand Feeling - security, social approval, self-respect Resonance - high attachment, active engagement
What is the consumer-based brand equity pyramid? (bottom up)
Salience - measures awareness of brand (how often & how easily the brand is evoked under various situations? starbucks) Performance - primary characteristics and supplementary features (product reliability, durability, serviceability, service effectiveness, style and design, price) Imagery - demographics, purchase and usage situations (type of channel, specific stores), personality and values (5 personality dimensions), history, heritage and experience Judgements - brand quality, credibility, superiority (differentiation) Feelings - warmth, fun, excitement, social approval Resonance (Ultimate relationship w/ branding) - behavioral loyalty, attitudinal attachment (love/proud brand), sense of community, active engagement
5 Brand Personality Dimensions
Sincerity (down to earth), Excitement (daring, spirited), Competence (reliable, intelligent), Sophistication (upper-class, charming), Ruggedness (outdoorsy, tough)
What is positioning?
The message of a company what they want to be known for
Who's Brand Positioning Statement?
To (core user), (brand name), is the (frame of reference) that (point of difference), because (support).
The Positioning Strategy 4 questions
What: what is the benefit and purpose of the brand? The brand promise and value to the consumer need to be clearly identified Who: Who is the target, the potential customer? Reason: what are the differentiators that support and can create such a benefit? Against whom: who is the competition?
What are the 4 questions customers ask of brands?
Who are you? (identity) What are you? (meaning) What about you? What do I think or feel about you? (response) What about you and me? What kind of associations and how much of a connection would I have with you? (relationship)
What is product line?
a group of products w/in a product category that are closely related (e.g. children's wear, women's wear) function in a similar manner market through the same type of outlets fall w/in given price ranges
What is brand processing?
a multi-functional process that highlights a proposed value for a product & transforms it into a real consumer experience starts w/ a vision that identifies the need & the purpose for the brand to exist executed through a positioning strategy
What is product mix?
aka product assortment consists of all the product lines and items that a particular seller offers for sale width: # of product lines length: # of product in lines depth: # of versions of each product carried consistency: how closely related the product lines are
What are the growth strategies?
allow for better segmentation provide an array of choices for the consumer (product mix) increase visibility of the brands attract new customers and increase market share (w/0 the need to reposition the initial brand) establish new brand equity and enhance existing brand equity can be good strategy against competitors
Product
anything we can offer to a market for attention, acquisition, use or consumption that might satisfy a need or want. maybe physical good, a service a retail outlet, a person, an organization, a place or even an idea
Positioning on the Basis of Product Mix
based on features such as design, price, distribution strategy, level of service or a mix geared towards rational decision making; customers make decisions based on value for money, convenience or functionality
Emotional Attributes
basic emotional needs that are satisfied for its purchasing customers, far more persuasive
Functional Attributes
basic tangible qualities of a brand offering that can be expected by its customers
Two components of brand knowledge
brand awareness & brand image
What are the 2 important brand strategic tools?
brand-product matrix brand hierarchy
What are characteristics of fashion brands?
broadly classified as consumer brands readily available and easy to acquire through channels any apparel, accessory, cosmetic, non-durable home product, or service offered for use, sale, or exchange that exhibits characteristics intended to identify and differentiate them from other similar goods and services and which are further intended as means of expression of personal preference, tastes, or acknowledgment of self-expression
Brand Awareness
consumers ability to identify the brand brand recognition (increasing familiarity) brand recall
Brand knowledge
consumers' knowledge about the brand, consumers' responses are reflected in perceptions, preferences, and behavior
Brand Image
consumers' perceptions about a brand, reflected by the brand associations held in consumer strong, favorable, unique brand associations
What is brand positioning?
defines the specific niche the brand occupies in the mind of the customer strong position is demanded, differentiated, deliverable and can be communicated
What are the challenges to growth strategies?
extensions require large investments need to be recognized as a lifestyle brand (initial brand) to extend into new markets and categories extensions must make sense w/in the brand vision & philosophy extensions should be able to deliver brand values to the consumer
What are the competitive advantages brands w/ strong equity have?
high consumer awareness strong brand loyalty helps when introducing new products less susceptible to price competition
Importance of brands to consumers
identification of source of the product, assignment of responsibility to product maker, risk reducer, search cost reducer (economic perspective) - spend less money and time looking and buying the product, promise, bond, or pact w/ product maker, symbolically device (associated w/ certain types of people reflect values or traits), signal of quality
Importance of brands to firms
identification to simplify handling or tracing legally protecting unique features (trademark, logos) signal of quality level endowing products w/ unique associations source of competitive advantage source of financial returns
Mass-Market Brands
mass produced fashion followers - not trendsetters positioned on values derived from price and convenience (location) common principles such as the need to generate values and to possess a strong identity
Positioned on Emotions
mastercard positions its credit cards based on consumer emotions
How do design a brand portfolio?
maximize market coverage so that no potential customers are being ignored minimize brand overlap so that brands aren't competing among themselves to gain the same customer's approval (e.g. urban outfitters, inc - anthro, outfitters, free people)
Brand
more than a product, as it can have dimensions that differentiate it in some way from other products designed to satisfy the same need. some create competitive advantages with product performance; other brands create competitive advantages through non-product related means
Classic Positioning Approach
most built on the premise of competing against brands in the same segment or category
Positioning on the Basis of Brand Identity
new dimensions to the product and new emotional values humanize so the product and establishes an emotional relationship w/ buyers lifestyle brands are positioned highly on personality
Premium brands
new luxury or new luxe "aspirational" "new lxue" share characteristics w/ luxury brands prices are at the higher end of the mass-market spectrum yet still lower than luxury brands global brands (kate spade, coach, lacoste) "spa brands" specialty chains of private label apparel line (zara, mango, H&m)
What are private brands?
one company offers the branded item or revive and that the item or service may be required or received only through channels the company controls (e.g. sonoma - kohl's)
Brand Anatomy: Identifiers
physical qualities added to or included in a product to reinforce its brand promise
What types of competitive advantages?
product, customer service, prices, location, quality and feature of the product, promotions, lifestyle, price point, emotional connections
What is experiential branding?
psychological aspect of a brand sum of all points of contact w/ the brand
What are branding challenges & opportunities?
savvy customers brand proliferation (new brands and products) media fragmentation - consumers exposed to brands to increase awareness, the type of media and brand uses increase competition & cost greater accountability
What do people try and look for in branding?
seek to develop or align the expectations behind the brand experience, creating the impression that a brand associated w/ a product or service has certain qualities or characteristics that make it special or unique
What does the positioning strategy do?
shapes the product mix and identity of the brand
Why are brands important?
strong brands are the root of financial performance and corporate value. predictable earning, reduce volatility, strong demand, efficient operation, preference, repeat purchases, cash flow, customer loyalty, stock value
Brand Anatomy: Symbols
strong visual identity ongoing communication devices that over time help to define a brand's promise to its target customer, inexpensive methods for reinforcing the brand
Brand-Product Matrix
table that's rated 1-4 and a-c
The Customer
target group in mind determines the brand's true market positioning customer verdict on the brand is major catalyst in evolution of the brand
What does positioning address?
target market competitive set (category frame of reference) differentiation proof or support
What is branding strategy?
the company can help consumers understand its products and services and organize them in their minds
How to measure equity?
the extent to which customers are willing to pay more for the brand
What is brand personality?
the identity element that describes the human qualities give to a product or service that endear it to target customers *human characteristics
Heritage
the identity element that describes the portion of a brand's origins or history that lends credibility to benefit claims ex) Levi's - our story
What is depth of branding strategy?
the number and nature of different brands marketed in the product class sold by a firm referred to as a brand portfolio to pursue different market segments, different channels of distribution, or different geographic boundaries
What is customer-based brand equity?
the positive differential effect that brand knowledge has on consumer response to the product or service
Develop a Brand Positioning Statement
what is the target market what is the competitive set what is this offering what proof or support can we offer