71396346 Power of Branding in Financial Community Revised

8/9/2019 71396346 Power of Branding in Financial Community Revised

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Branding in the FinancialPlanning Community


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Products are made in thefactory, but brands are created

in the mind.-Walter Landor-


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What is branding?

Successful Brand Examples Power and Value of branding

Brand philosophy and theFinancial Planning Community


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Products are made in thefactory, but brands are created

in the mind.-Walter Landor-


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What is branding?


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What is Branding?

Branding is a means by which organizationsintend to set themselves apart from the

competition.

Branding may entail adding value to

existing products and services to peak theinterest and raise the attention ofconsumers.


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Branding

A collection of actual and emotionalcharacteristics associated with a particularidentified product or service thatdifferentiates that product or service from

the rest of the marketplace (Egan, 2007, 79).


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Branding

Branding is the process of

creating an identity for a productusing a distinctive name orsymbol (Wells, Burnett &Moriarty, 1995)


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Branding makes use of a name, term, sign, symbolfor design or a combination of these intended to

identify the goods and services of one seller orgroup of sellers to differentiate them from theircompetitors (Kotler, 2000)

Branding is a set of attributes that have meaning,an image that produces associations with theproduct when a person is considering that brandof product (Pickton & Broderick, 2001)

Branding


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Nike is known all over the world, people canidentify the name and logo even if they have never

bought any of their products.

Adidas is known for using three stripes on its

range of products. This design feature allowspeople to identify their products, even if the

Adidas name and logo is not present.

Examples of Effective Branding


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B

BRAND SALIENCE


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B

Brand salience measures the

awareness of the brand.

"To what extent is the brand top-

of-mind and easily recalled orrecognized? What types of cues or

reminders are necessary?"


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Look closely at the signs,symbols, and images in the

following slide and take note ofthe message, emotions, or other

responses that each one convey.


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Power and Value of branding


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A brand that captures your

mind gains behavior. A brandthat captures your heart gainscommitment.

-Scott Talgo-


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Recognition

main benefit of branding is thatcustomers are much more likely toremember your business.

A strong brand name and logo/imagehelps to keep your company image inthe mind of your potential customers.

If your business sells products that are

often bought on impulse, a customerrecognising your brand could mean thedifference between no-sale and a sale.


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Loyalty

Even if the customer was not awarethat you sell a particular product,if they trust your brand, they are

likely to trust you with unfamiliarproducts.

If a customer is happy with your

products or services, a brand helpsto build customer loyalty acrossyour business.


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Image of Size

A strong brand will project animage of a large and establishedbusiness to your potential

customers If you can create effective

branding, then it can make your

business appear to be much biggerthan it really is.


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Image of Quality

It is commonly said that if you showa person two identical products, onlyone of which is branded; they will

almost always believe the brandeditem is higher quality.


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A strong brand projects an imageof quality in your business, many

people see the brand as a part of aproduct or service that helps toshow its quality and value.


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If you can create effective

branding, then over time theimage of quality in yourbusiness will usually go up.

Of course, branding cannotreplace good quality, and badpublicity will damage a brand(and your businesses image),

especially if it continues over along period of time.


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Image of Experience and

Reliability

A branded business is morelikely to be seen as experienced intheir products or services, and

will generally be seen as morereliable and trustworthy than an

unbranded business.


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Image of Experience and

Reliability

Most people will believe that abusiness would be hesitant to puttheir brand name on somethingthat was of poor quality.


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Multiple Products

If your business has a strong brand,it allows you to link togetherseveral different products orranges.

You can put your brand name onevery product or service you sell,meaning that customers for one

product will be more likely to buyanother product from you.


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For Example:

Sony sells televisions, music

equipment, consoles, camcorders,DVD players, video players, and etcall under the Sony brand name.


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All these things show onething- TRUST. Successful

branding causes consumers totrust businesses.


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Brand philosophy and the

Financial Planning Community


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If it doesn't sell, it isn't creative.

-David Ogilvy-


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Financial services

services offered by the financesector that deal with themanagement of money.

banks, credit card companies,insurance companies, consumerfinance companies, stockbrokerages, investment funds and

some government sponsoredenterprises.


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Financial planning firms are

involved in offering services suchas cash flow management,education planning, retirementplanning, investment planning,risk management and insuranceplanning, tax planning, estateplanning and business succession

planning (for business owners).


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What sets financial services apart

from consumer-products is that itis an important decision with veryhigh risks that they cannot make

with the benefit of trial orsampling. (Jones)

They also happen to promoteintangible benefits (such as

security that is brought frominsurance). They are considered asmeans to an end rather an end initself.


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Financial services brands are bydefinition not commodities.

They are unique and distinct interms of their attributes, benefits,features and associationsanddemonstrate resistance to pricesensitivity in the marketplace.


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Financial services brands are bydefinition not commodities.

They are unique and distinct interms of their attributes, benefits,features and associationsanddemonstrate resistance to pricesensitivity in the marketplace.


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Branding Trends in

Financial Services-little differentiation

-product features over brand values

-focus on brand functional values over brandemotional values

-similar costs and quality of offered productsacross the market


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Success in the continuouslyincreasing competition in thefinancial service market willdepend on effective brand

differentiation, identification,internalization of unique brand

values that are both applicable toand wanted by clients. (deChernatony and Harris,2000)


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According to a Copernicus andMarket Facts study, TheCommoditization of Brands and ItsImplications for Marketers,

financial services providers such asbanks and credit cards lead the packin terms of decliningdifferentiation, becoming muchmore similar rather than moredifferent over time.


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With no discernible differencesamong brands, consumers select

financial services products based onprice instead of product features oradvertising


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Failed or struggling financialservices firms took an intuitiveapproach to marketing: theyfollowed the crowd and madedecisions based on gut instincts.


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Successful firms, on the other hand,have taken a counterintuitive approachto marketing. They have understoodthe importance of finding a target

group and a compelling positioning,communicating with customers clearlyand consistently, and overcoming areliance on advertising and service

shortcomings.


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Mixing a solid foundationfrom which to build a

strong and admired brandrequires five key

ingredients:


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StrongFinancial

ServiceBrand

a financially-optimal

customertarget

a potentpositioning

clear andconsistent

communicationof firms message

communicationof the company's

marketingmessage using an

effective mix ofpromotional

vehicles

Delivery ofpromisethrough

exceptionalservice


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a financially-optimal customer target

a potent positioning

clear and consistent communication ofthe brand's "reason to buy" message

communication of the company'smarketing message using an effectivemix of promotional vehicles

delivery on the brand's promise through

exceptional products and services


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Financially-optimal

customer target with no defined target,

companies will find themselvesstuck trying to reach everyoneand be all things to all people


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The company offered phone and online

consultation with financial advisors,access to nearly 2,000 mutual funds, andfinancial planning software tocustomers. Even with all these options,

American Express Brokerage floundered,unable to capture the attention of anyaudience.


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Financial services firms should realizethat not evryone are created equal-someare much more valuable than others.

Rather than be all things to all people,The Share Centre, owned by the U.K.'s

Share plc, for example, specificallytargets the low-end of investor market,private individuals who have verymodest sums of money to invest withreal-time trading and services.


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Potent positioning

In an increasingly clutteredenvironment where buyers have

very little time to ponder

product and service decisions, itis advantageous to stand forsomething important, to beremembered for something

significant


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Being "first to market" is not a positioningstrategya first-mover financial servicesfirm like an Egg or Charles Schwab mayhave "grabbed land," but the key to survivalis grabbing a piece of the customers' minds

and desires.

most financial service firms have no clearpositioning at all. Their sites and serviceslook almost identical to those of theircompetitors, and few can demonstrate howthey stand apart from their rivals.


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Clear and consistentcommunication of the brand's

"reason to buy" message the next step for financial services firms is to

translate the positioning into messages andexperiences, which deliver on the brand's

value proposition.

Clarity and consistency of the messagebecome essential to reinforcing thepositioning of the brand in the minds of

consumers and giving them a reason to utilizea service from the firm.

Financial firms must focus on makingcustomers stay-not only visit


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Communication of the company'smarketing message using an

effective mix of promotionalvehicles

through advertising, customer

service, account updates, and theWeb site


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Delivery on the brand's promisethrough exceptional products

and services Firms must take steps to

understand their users and offer

services in formats that arecustomized for each customer andwith which each customer iscomfortable.


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According to a recent DeloitteConsulting survey, in order for thefinancial services industry toovercome consumer apathytowards online banking, it needsto invest in customer education,improve service, and make

customers feel valued.


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So, why is this report relevant?


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Financial Crisis (2007 present)


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G

oldman-Sachs fraud


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Now , more than ever, existingFinancial Planning Services mustlearn to identify themselves apart

from their competitors.Controversies and the financialcrisis is now working againstfinancial services. Surely, people donot trust the Financial PlanningCommunity like they used to.


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Question : How do they setthemselves apart from the othersand regain the trust of clients?

Answer : Through Branding.


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Create your own visual style-letit be unique for yourself and yet

identifiable for others.-Orson Welles-

Documents

71396346 Power of Branding in Financial Community Revised