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Branding for Recognition & Profit
Dr. Tony L. Henthorne
Associate Dean
University of Nevada, Las Vegas
Brand versus Product
Brand Product
Has dimensions that differentiate it in some way from other products designed to satisfy the same need
Anything available in the market for use or consumption, that may satisfy a need or want
Can be differentiated on the basis of: • Packaging• Services provided• Customer advice• Financing• Delivery arrangements• Warehousing• Other things valued by the customers
Can be categorized into five levels namely:• Core benefit level• Generic product level • Expected product level• Augmented product level• Potential product level
Brand Elements
• Different components
that identify and
differentiate a brand
– Name, logo, symbol,
package design, or
other characteristic
• Can be based on
people, places, things,
and abstract images
To Sum Up ....
• Through branding, organizations:
– Create perceived differences
among products
– Develop a loyal customer base
– Create value that can translate to
profits
Strong Brands
• Are brands that have been market leaders in
their categories for decades
• But any brand is vulnerable and susceptible to
poor brand management
Factors Responsible forBranding Challenges
Savvy customers
Economic downturns
Brand proliferation
Increased competition
Brand Image
• More deeply a person thinks about product information and relates it to existing brand knowledge, stronger is the resulting brand association
Strength of Brand Associations
• Is higher when a brand possesses relevant attributes and benefits that satisfy consumer needs and wants
Favorability of Brand
Associations
• “Unique selling proposition” of the product
• Provides brands with sustainable competitive advantage
Uniqueness of Brand
Associations
To Sum Up...
• To create brand equity, marketers should:
– Create favorable consumer response (in other words: brand awareness)
– Create positive brand image though brand associations that are strong, favorable, and unique
Identifying and Establishing Brand
Positioning
Basic Concepts
Target Market
Nature of Competition
Points-of-Parity and Points-of-Difference
Basic Concepts
• Brand positioning
– Designing the company’s offer and image so that it
occupies a distinct and valued place in the target
customers’ minds
– Finding the proper “location” in the minds of
consumers or market segment
– Allows consumers to think about a product or
service in the “right” perspective
Target Market
• Market segmentation: Divides the market into distinct groups of homogeneous consumers who have similar needs and consumer behavior
• Involves identifying segmentation bases and criteria
Measurable Accessible Substantial Responsive
Nature of Competition
Competitive analysis of direct
competition
Competitive analysis of indirect
competition
Points of Parity
and Points of Difference
Points-of-difference associations
Points-of-parity associations
Points-of-parity versus points-of-difference
To Sum Up…
• To appropriately position a
brand, marketers should:
– Identify their target customers
– Analyze the type of
competition they might face in
the identified market base
– Identify product features and
associations that are different
or similar to their competitors
Positioning Guidelines
Defining & Communicating Competitive Frame of Reference
Choosing Points-of-Difference
Establishing Points-of-Parity and Points-of-Difference
Straddle Positions
Updating Position Overtime
To Sum Up ...
• Brand positioning describes how a brand can
effectively compete against a specified set of
competitors
• A good product positioning should:
– Have a “foot in the present” and a “foot in the future”
– Identify all relevant points-of-parity
– Reflect a consumer point of view in terms of the
benefits that consumers derive
– Contain points-of-difference and points-of-parity that
appeal both to the “head” and the “heart”
Flankers
• Protective or fighter brands
– To create stronger points-of-equilibrium with competitors’ brands
• Fighter brands must not be so attractive that they take sales away from their higher-priced comparison brands
Cash Cows
• Despite dwindling sales, some brands are
retained
– Due to their sustainability without any kind of
marketing
• Milked by capitalizing on their reservoir of
existing brand equity
Low-End, Entry-Level
or High-End, Prestige Brands
• Sub-brands leverage associations from other
brands while distinguishing themselves on price
or quality
• Role of a relatively low-priced brand: To
attract customers to the brand franchise
• Role of a relatively high-priced brand: To add
prestige and credibility to the entire portfolio
To Sum Up…
• Successful brands need to have a “foot in the present” and a “foot in the future”
• Of the many roles that brands can play in a product portfolio, two seem to be of most importance:
– Flanker brands
– Cash cows
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