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

Roles that Brands Play

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

Challenges to Brand Builders

Marketing Advantages ofStrong Brands

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”

Possible Roles of Brands in the

Brand Portfolio

Brand Portfolios: 3 Points

Flankers

Cash Cows

Low-End, Entry-Level or High-End, Prestige Brands

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

Thank you for your kind attention