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Business & Mgmt

Published on January 31, 2009

Author: qsirnawaz

Source: slideshare.net

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BRAND MANAGEMENT Bhushan D. Sudhakar, Ph.D Assistant Professor & Co-ordinator (UG)

Bhushan D. Sudhakar, Ph.D

Assistant Professor & Co-ordinator (UG)

What is a Brand? A brand is a name, term, sign, symbol, or design which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.

A brand is a name, term, sign, symbol, or design which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.

New Branding Challenges Brands are important as ever Consumer need for simplification Consumer need for risk reduction Brand management is as difficult as ever Savvy consumers Increased competition Decreased effectiveness of traditional marketing tools and emergence of new marketing tools Complex brand and product portfolios

Brands are important as ever

Consumer need for simplification

Consumer need for risk reduction

Brand management is as difficult as ever

Savvy consumers

Increased competition

Decreased effectiveness of traditional marketing tools and emergence of new marketing tools

Complex brand and product portfolios

The Customer/Brand Challenge In this difficult environment, marketers must have a keen understanding of: customers brands the relationship between the two

In this difficult environment, marketers must have a keen understanding of:

customers

brands

the relationship between the two

The Concept of Brand Equity The brand equity concept stresses the importance of the brand in marketing strategies. Brand equity is defined in terms of the marketing effects uniquely attributable to the brand. Brand equity relates to the fact that different outcomes result in the marketing of a product or service because of its brand name, as compared to if the same product or service did not have that name.

The brand equity concept stresses the importance of the brand in marketing strategies.

Brand equity is defined in terms of the marketing effects uniquely attributable to the brand.

Brand equity relates to the fact that different outcomes result in the marketing of a product or service because of its brand name, as compared to if the same product or service did not have that name.

The Concept of Customer-Based Brand Equity Customer-based brand equity Differential effect Customer brand knowledge Customer response to brand marketing

Customer-based brand equity

Differential effect

Customer brand knowledge

Customer response to brand marketing

Determinants of Customer-Based Brand Equity Customer is aware of and familiar with the brand Customer holds some strong, favorable, and unique brand associations in memory

Customer is aware of and familiar with the brand

Customer holds some strong, favorable, and unique brand associations in memory

Building Customer-Based Brand Equity Brand knowledge structures depend on . . . The initial choices for the brand elements The supporting marketing program and the manner by which the brand is integrated into it Other associations indirectly transferred to the brand by linking it to some other entities

Brand knowledge structures depend on . . .

The initial choices for the brand elements

The supporting marketing program and the manner by which the brand is integrated into it

Other associations indirectly transferred to the brand by linking it to some other entities

Benefits of Customer-Based Brand Equity Enjoy greater brand loyalty, usage, and affinity Command larger price premiums Receive greater trade cooperation & support Increase marketing communication effectiveness Yield licensing opportunities Support brand extensions.

Enjoy greater brand loyalty, usage, and affinity

Command larger price premiums

Receive greater trade cooperation & support

Increase marketing communication effectiveness

Yield licensing opportunities

Support brand extensions.

Customer-Based Brand Equity as a “Bridge” Customer-based brand equity represents the “added value” endowed to a product as a result of past investments in the marketing of a brand. Customer-based brand equity provides direction and focus to future marketing activities

Customer-based brand equity represents the “added value” endowed to a product as a result of past investments in the marketing of a brand.

Customer-based brand equity provides direction and focus to future marketing activities

The Key to Branding For branding strategies to be successful, consumers must be convinced that there are meaningful differences among brands in the product or service category. Consumer must not think that all brands in the category are the same. PERCEPTION = VALUE

For branding strategies to be successful, consumers must be convinced that there are meaningful differences among brands in the product or service category.

Consumer must not think that all brands in the category are the same.

PERCEPTION = VALUE

Strategic Brand Management Strategic brand management involves the design and implementation of marketing programs and activities to build, measure, and manage brand equity. The strategic brand management process is defined as involving four main steps: 1) Identifying and establishing brand positioning and values 2)  Planning and implementing brand marketing programs 3)  Measuring and interpreting brand performance 4)  Growing and sustaining brand equity

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

The strategic brand management process is defined as involving four main steps:

1) Identifying and establishing brand positioning and values

2)  Planning and implementing brand marketing programs

3)  Measuring and interpreting brand performance

4)  Growing and sustaining brand equity

Strategic Brand Management Process Mental maps Competitive frame of reference Points-of-parity and points-of-difference Core brand values Brand mantra Mixing and matching of brand elements Integrating brand marketing activities Leveraging of secondary associations Brand Value Chain Brand audits Brand tracking Brand equity management system Brand-product matrix Brand portfolios and hierarchies Brand expansion strategies Brand reinforcement and revitalization KEY CONCEPTS STEPS Grow and Sustain Brand Equity Identify and Establish Brand Positioning and Values Plan and Implement Brand Marketing Programs Measure and Interpret Brand Performance

Motivation for Customer-Based Brand Equity Model Marketers know strong brands are important but aren’t always sure how to build one. CBBE model was designed to be … comprehensive cohesive well-grounded up-to-date actionable

Marketers know strong brands are important but aren’t always sure how to build one.

CBBE model was designed to be …

comprehensive

cohesive

well-grounded

up-to-date

actionable

Rationale of Customer-Based Brand Equity Model Basic premise: Power of a brand resides in the minds of customers Challenge is to ensure customers have the right types of experiences with products & services and their marketing programs to create the right brand knowledge structures: Thoughts Feelings Images Perceptions Attitudes

Basic premise: Power of a brand resides in the minds of customers

Challenge is to ensure customers have the right types of experiences with products & services and their marketing programs to create the right brand knowledge structures:

Thoughts

Feelings

Images

Perceptions

Attitudes

Building Customer-Based Brand Equity Building a strong brand involves a series of steps as part of a “branding ladder” A strong brand is also characterized by a logically constructed set of brand “building blocks.” Identifies areas of strength and weakness Provides guidance to marketing activities

Building a strong brand involves a series of steps as part of a “branding ladder”

A strong brand is also characterized by a logically constructed set of brand “building blocks.”

Identifies areas of strength and weakness

Provides guidance to marketing activities

CUSTOMER-BASED BRAND EQUITY PYRAMID RESONANCE SALIENCE JUDGMENTS FEELINGS PERFORMANCE IMAGERY 4. RELATIONSHIPS = What about you & me? 3. RESPONSE = What about you? 2. MEANING = What are you? 1. IDENTITY = Who are you?

Salience Dimensions Depth of brand awareness Ease of recognition & recall Strength & clarity of category membership Breadth of brand awareness Purchase consideration Consumption consideration

Depth of brand awareness

Ease of recognition & recall

Strength & clarity of category membership

Breadth of brand awareness

Purchase consideration

Consumption consideration

Performance Dimensions Primary characteristics & supplementary features Product reliability, durability, and serviceability Service effectiveness, efficiency, and empathy Style and design Price

Primary characteristics & supplementary features

Product reliability, durability, and serviceability

Service effectiveness, efficiency, and empathy

Style and design

Price

Imagery Dimensions User profiles Demographic & psychographic characteristics Actual or aspirational Group perceptions -- popularity Purchase & usage situations Type of channel, specific stores, ease of purchase Time (day, week, month, year, etc.), location, and context of usage Personality & values Sincerity, excitement, competence, sophistication, & ruggedness History, heritage, & experiences Nostalgia Memories

User profiles

Demographic & psychographic characteristics

Actual or aspirational

Group perceptions -- popularity

Purchase & usage situations

Type of channel, specific stores, ease of purchase

Time (day, week, month, year, etc.), location, and context of usage

Personality & values

Sincerity, excitement, competence, sophistication, & ruggedness

History, heritage, & experiences

Nostalgia

Memories

Judgment Dimensions Brand quality Value Satisfaction Brand credibility Expertise Trustworthiness Likability Brand consideration Relevance Brand superiority Differentiation

Brand quality

Value

Satisfaction

Brand credibility

Expertise

Trustworthiness

Likability

Brand consideration

Relevance

Brand superiority

Differentiation

Feelings Dimensions Warmth Fun Excitement Security Social approval Self-respect

Warmth

Fun

Excitement

Security

Social approval

Self-respect

Resonance Dimensions Behavioral loyalty Frequency and amount of repeat purchases Attitudinal attachment Love brand (favorite possessions; “a little pleasure”) Proud of brand Sense of community Kinship Affiliation Active engagement Seek information Join club Visit web site, chat rooms

Behavioral loyalty

Frequency and amount of repeat purchases

Attitudinal attachment

Love brand (favorite possessions; “a little pleasure”)

Proud of brand

Sense of community

Kinship

Affiliation

Active engagement

Seek information

Join club

Visit web site, chat rooms

Customer-Based Brand Equity Model Consumer- Brand Resonance Brand Salience Consumer Judgments Consumer Feelings Brand Performance Brand Imagery INTENSE, ACTIVE LOYALTY RATIONAL & EMOTIONAL REACTIONS POINTS-OF-PARITY & POINTS-OF-DIFFERENCE DEEP, BROAD BRAND AWARENESS

Brand Positioning Define competitive frame of reference Target market Nature of competition Define desired brand knowledge structures Points-of-parity necessary competitive Points-of-difference strong, favorable, and unique brand associations

Define competitive frame of reference

Target market

Nature of competition

Define desired brand knowledge structures

Points-of-parity

necessary

competitive

Points-of-difference

strong, favorable, and unique brand associations

Issues in Implementing Brand Positioning Establishing Category Membership Identifying & Choosing POP’s & POD’s Communicating & Establishing POP’s & POD’s Sustaining & Evolving POD’s & POP’s

Establishing Category Membership

Identifying & Choosing POP’s & POD’s

Communicating & Establishing POP’s & POD’s

Sustaining & Evolving POD’s & POP’s

Establishing Category Membership Product descriptor Exemplar comparisons

Product descriptor

Exemplar comparisons

Identifying & Choosing POP’s & POD’s Desirability criteria (consumer perspective) Personally relevant Distinctive & superior Believable & credible Deliverability criteria (firm perspective) Feasible Profitable Pre-emptive, defensible & difficult to attack

Desirability criteria (consumer perspective)

Personally relevant

Distinctive & superior

Believable & credible

Deliverability criteria (firm perspective)

Feasible

Profitable

Pre-emptive, defensible & difficult to attack

Major Challenges in Positioning Find compelling & impactful points-of-difference (MacMillan & McGrath, HBR , ‘97) How do people become aware of their need for your product and service? How do consumers find your offering? How do consumers make their final selection? How do consumers order and purchase your product or service? What happens when your product or service is delivered? How is your product installed? How is your product or service paid for?

Find compelling & impactful points-of-difference (MacMillan & McGrath, HBR , ‘97)

How do people become aware of their need for your product and service?

How do consumers find your offering?

How do consumers make their final selection?

How do consumers order and purchase your product or service?

What happens when your product or service is delivered?

How is your product installed?

How is your product or service paid for?

Major Challenges in Positioning Find compelling & impactful points-of-difference (cont.) How is your product stored? How is your product moved around? What is the consumer really using your product for? What do consumers need help with when they use your product? What about returns or exchanges? How is your product repaired or serviced? What happens when your product is disposed of or no longer used?

Find compelling & impactful points-of-difference (cont.)

How is your product stored?

How is your product moved around?

What is the consumer really using your product for?

What do consumers need help with when they use your product?

What about returns or exchanges?

How is your product repaired or serviced?

What happens when your product is disposed of or no longer used?

Communicating & Establishing POP’s & POD’s Create POP’s and POD’s in the face of attribute & benefit trade-offs Price & quality Convenience & quality Taste & low calories Efficacy & mildness Power & safety Ubiquity & prestige Comprehensiveness (variety) & simplicity Strength & refinement

Create POP’s and POD’s in the face of attribute & benefit trade-offs

Price & quality

Convenience & quality

Taste & low calories

Efficacy & mildness

Power & safety

Ubiquity & prestige

Comprehensiveness (variety) & simplicity

Strength & refinement

Strategies to Reconcile Attribute & Benefit Trade-Offs Establish separate marketing programs Leverage secondary association (e.g., co-brand) Re-define the relationship from negative to positive

Establish separate marketing programs

Leverage secondary association (e.g., co-brand)

Re-define the relationship from negative to positive

Sustaining & Evolving POP’s & POD’s Core Brand Values & Core Brand Proposition

Core Brand Values &

Core Brand Proposition

Core Brand Values Set of abstract concepts or phrases that characterize the 5-10 most important dimensions of the mental map of a brand. Relate to points-of-parity and points-of-difference Mental Map  Core Brand Values  Brand Mantra

Set of abstract concepts or phrases that characterize the 5-10 most important dimensions of the mental map of a brand.

Relate to points-of-parity and points-of-difference

Mental Map  Core Brand Values  Brand Mantra

Brand Mantras A brand mantra is an articulation of the “heart and soul” of the brand. Brand mantras are short three to five word phrases that capture the irrefutable essence or spirit of the brand positioning and brand values . Nike Authentic Athletic Performance Disney Fun Family Entertainment

A brand mantra is an articulation of the “heart and soul” of the brand.

Brand mantras are short three to five word phrases that capture the irrefutable essence or spirit of the brand positioning and brand values .

Nike

Authentic Athletic Performance

Disney

Fun Family Entertainment

 

 

Outline The mandate for effectiveness What makes an ad effective? The world of advertising The five players of advertising The evolution of advertising Introduction to Advertising

Outline

The mandate for effectiveness

What makes an ad effective?

The world of advertising

The five players of advertising

The evolution of advertising

The Mandate for Effectiveness Today advertising is in a bind Advertisers expect specific results that lead to sales Advertising must be effective

Today advertising is in a bind

Advertisers expect specific results that lead to sales

Advertising must be effective

Effective ads work on two levels: with consumers and with advertisers Characteristics of effective ads: Strategy - Execution Advertising must be goal directed What Makes an Ad Effective ? Creativity

Effective ads work on two levels: with consumers and with advertisers

Characteristics of effective ads:

Strategy

-

Execution

Advertising must be goal directed

Defining advertising A paid form of communication A sponsor is identified Tries to persuade or influence the consumer to do something Conveyed through mass media Reaches a large audience Is nonpersonal The World of Advertising

Defining advertising

A paid form of communication

A sponsor is identified

Tries to persuade or influence the consumer to do something

Conveyed through mass media

Reaches a large audience

Is nonpersonal

Types of Advertising Brand advertising Retail/local advertising Political advertising Directory advertising Direct-response advertising Business-to-business advertising Institutional advertising Public service advertising (PSA) Interactive advertising

Brand advertising

Retail/local advertising

Political advertising

Directory advertising

Direct-response advertising

Business-to-business advertising

Institutional advertising

Public service advertising (PSA)

Interactive advertising

Marketing role Communication role Economic role Societal role The Roles of Advertising

Marketing role

Communication role

Economic role

Societal role

Functions of Advertising Provide product and brand information Provide incentives to take action Provide reminders and reinforcement

Provide product and brand information

Provide incentives to take action

Provide reminders and reinforcement

Advertiser Advertising agency The advertising department The in-house agency Media Vendors Target audience The Five Players of Advertising

Advertiser

Advertising agency

The advertising department

The in-house agency

Media

Vendors

Target audience

Age of print Industrial revolution and emergence of consumer society Modern advertising: Agencies, science and creativity Accountability era The Evolution of Advertising

Age of print

Industrial revolution and emergence of consumer society

Modern advertising: Agencies, science and creativity

Accountability era

Interactive advertising Globalization Niche marketing Integrated marketing communications (IMC) Consumer Power Current Advertising Issues

Interactive advertising

Globalization

Niche marketing

Integrated marketing communications (IMC)

Consumer Power

Brand personalities Branding Trust Brand image Brand relationships Brand equity How Brands Work

Brand personalities

Branding

Trust

Brand image

Brand relationships

Brand equity

Complex, Varied Marketing Activity Comprehensive, Robust Marketing Measures Detailed, Rich Marketing Models MARKETING PLANNING PROCESS

Role of Integrated Marketing Communications Marketing communications … are the “voice” of the brand and are a means by which it can establish a dialogue and build relationships with consumers. allow marketers to inform, persuade, incent, and remind consumers directly or indirectly can contribute to brand equity by establishing the brand in memory and linking strong, favorable, and unique associations to it.

Marketing communications …

are the “voice” of the brand and are a means by which it can establish a dialogue and build relationships with consumers.

allow marketers to inform, persuade, incent, and remind consumers directly or indirectly

can contribute to brand equity by establishing the brand in memory and linking strong, favorable, and unique associations to it.

Role of Integrated Marketing Communications (Cont.) Consumers can be told or shown how and why a product is used, by what kind of person, and where and when; Consumers can learn about who makes the product and what the company and brand stand for Consumers be given an incentive or reward for trial or usage Brands can be linked to other … People Places Events Brands Experiences Feelings Things

Consumers can be told or shown how and why a product is used, by what kind of person, and where and when;

Consumers can learn about who makes the product and what the company and brand stand for

Consumers be given an incentive or reward for trial or usage

Brands can be linked to other …

People

Places

Events

Brands

Experiences

Feelings

Things

Simple Test for Marketing Communications 1. 3. 2. Current Desired Brand Brand Knowledge Knowledge

1. 3. 2.

Current Desired

Brand Brand

Knowledge Knowledge

Integrated Marketing Communications and Customer-Based Brand Equity One implications of the CBBE framework is that the manner in which brand associations are formed does not matter -- only the resulting strength, favorability, and uniqueness

One implications of the CBBE framework is that the manner in which brand associations are formed does not matter -- only the resulting strength, favorability, and uniqueness

Designing Integrated Marketing Communications Programs From the perspective of customer-based brand equity, marketers should evaluate all possible communication options available to create knowledge structures according to effectiveness criteria as well as cost considerations. Different communication options have different strengths and can accomplish different objectives.

From the perspective of customer-based brand equity, marketers should evaluate all possible communication options available to create knowledge structures according to effectiveness criteria as well as cost considerations.

Different communication options have different strengths and can accomplish different objectives.

Alternative Communication Options (Consumer) Media Advertising (TV, radio, newspapers, magazines) Direct Response Advertising Interactive (on-line) Advertising & Web Sites Outdoor Advertising (billboards, posters, cinema) Point-of-Purchase Advertising Trade Promotions Consumer Promotions Sponsorship of Event Marketing Publicity or Public Relations

Media Advertising (TV, radio, newspapers, magazines)

Direct Response Advertising

Interactive (on-line) Advertising & Web Sites

Outdoor Advertising (billboards, posters, cinema)

Point-of-Purchase Advertising

Trade Promotions

Consumer Promotions

Sponsorship of Event Marketing

Publicity or Public Relations

Alternative Communication Options (Business-to-Business) Media Advertising (TV, radio, newspaper, magazines) Trade Journal Advertising Interactive (on-line) Advertising & Web Sites Directories Direct Mail Brochures & Sales Literature Audio-Visual Presentation Tapes Giveaways Sponsorship or Event Marketing Exhibitions, Trade Shows, Conventions Publicity or Public Relations

Media Advertising (TV, radio, newspaper, magazines)

Trade Journal Advertising

Interactive (on-line) Advertising & Web Sites

Directories

Direct Mail

Brochures & Sales Literature

Audio-Visual Presentation Tapes

Giveaways

Sponsorship or Event Marketing

Exhibitions, Trade Shows, Conventions

Publicity or Public Relations

Print Ad Evaluation Criteria Is the message clear at a glance? Is the benefit in the headline? Does the illustration support the headline? Does the first line of the copy support or explain the headline and illustration? Is the ad easy to read and follow? Is the product easily identified? Is the brand or sponsor clearly identified?

Is the message clear at a glance?

Is the benefit in the headline?

Does the illustration support the headline?

Does the first line of the copy support or explain the headline and illustration?

Is the ad easy to read and follow?

Is the product easily identified?

Is the brand or sponsor clearly identified?

Ad Campaign Considerations Campaigns make brands -- not single ads Be creative and develop creative themes Avoid slavishly sticking to executional formulas Brand communications should sing like a choir Multiple voices Multiple notes Find fresh consumer insights & compelling brand truths Productively conduct ad research

Campaigns make brands -- not single ads

Be creative and develop creative themes

Avoid slavishly sticking to executional formulas

Brand communications should sing like a choir

Multiple voices

Multiple notes

Find fresh consumer insights & compelling brand truths

Productively conduct ad research

IMC Case Study CMPB Success Factors Smart strategy Relative deprivation Imaginative creative Funny but relevant Clever hook “ Got milk?” slogan Timely secondary media In store Right partners

Smart strategy

Relative deprivation

Imaginative creative

Funny but relevant

Clever hook

“ Got milk?” slogan

Timely secondary media

In store

Right partners

Common Mistakes in Developing Advertising Failure to distinguish ad positioning (what you say) from ad creative (how you say it) Mistaken assumptions about consumer knowledge Improperly positioned Failure to break through the clutter Distracting, overpowering creative in ads

Failure to distinguish ad positioning (what you say) from ad creative (how you say it)

Mistaken assumptions about consumer knowledge

Improperly positioned

Failure to break through the clutter

Distracting, overpowering creative in ads

Common Mistakes in Developing Advertising (cont.) Under-branded ads Failure to use supporting media Changing campaigns too frequently Substituting ad frequency for ad quality

Under-branded ads

Failure to use supporting media

Changing campaigns too frequently

Substituting ad frequency for ad quality

Communication Option A Communication Option C Communication Option B Audience Audience Communication Option Overlap Note: Circles represent the market segments reached by various communication options. Shaded portions represent areas of overlap in communication options.

Evaluating IMC Programs Coverage - what proportion of the target audience is reached by each communication option employed, as well as how much overlap exists among options Cost - what is the per capita expense

Coverage - what proportion of the target audience is reached by each communication option employed, as well as how much overlap exists among options

Cost - what is the per capita expense

Evaluating IMC Programs (cont.) Contribution - the collective effect on brand equity in terms of enhancing depth & breadth of awareness improving strength, favorability, & uniqueness of brand associations Commonality - the extent to which information conveyed by different communication options share meaning

Contribution - the collective effect on brand equity in terms of

enhancing depth & breadth of awareness

improving strength, favorability, & uniqueness of brand associations

Commonality - the extent to which information conveyed by different communication options share meaning

Evaluating IMC Programs (cont.) Complementarity - the extent to which different associations and linkages are emphasized across communication options Versatility - the extent to which information contained in a communication option works with different types of consumers Different communications history Different market segments

Complementarity - the extent to which different associations and linkages are emphasized across communication options

Versatility - the extent to which information contained in a communication option works with different types of consumers

Different communications history

Different market segments

“ Keller Be’s” Be analytical : Use frameworks of consumer behavior and managerial decision-making to develop well-reasoned communication programs Be curious : Fully understand consumers by using all forms of research and always be thinking of how you can create added value for consumers Be single-minded : Focus message on well-defined target markets (less can be more) Be integrative : reinforce your message through consistency and cuing across all communications

Be analytical : Use frameworks of consumer behavior and managerial decision-making to develop well-reasoned communication programs

Be curious : Fully understand consumers by using all forms of research and always be thinking of how you can create added value for consumers

Be single-minded : Focus message on well-defined target markets (less can be more)

Be integrative : reinforce your message through consistency and cuing across all communications

“ Keller Be’s” Be creative : State your message in a unique fashion; use alternative promotions and media to create favorable, strong, and unique brand associations Be observant : Monitor competition, customers, channel members, and employees through tracking studies Be realistic : Understand the complexities involved in marketing communications Be patient : Take a long-term view of communication effectiveness to build and manage brand equity

Be creative : State your message in a unique fashion; use alternative promotions and media to create favorable, strong, and unique brand associations

Be observant : Monitor competition, customers, channel members, and employees through tracking studies

Be realistic : Understand the complexities involved in marketing communications

Be patient : Take a long-term view of communication effectiveness to build and manage brand equity

 

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