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BRAND MANAGEMENT

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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.

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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

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The Customer/Brand Challenge

In this difficult environment, marketers must have a keen understanding of: customers brands the relationship between the two

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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.

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The Concept of Customer-Based Brand

Equity Customer-based brand equity Differential effect Customer brand knowledge Customer response to brand marketing

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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

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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

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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.

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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

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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

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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 values2)  Planning and implementing brand marketing programs3)  Measuring and interpreting brand performance4)  Growing and sustaining brand equity

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Strategic Brand Management Process

Mental mapsCompetitive frame of referencePoints-of-parity and points-of-differenceCore brand valuesBrand mantra

Mixing and matching of brand elementsIntegrating brand marketing activitiesLeveraging of secondary associations

Brand Value ChainBrand auditsBrand trackingBrand equity management system

Brand-product matrixBrand portfolios and hierarchiesBrand expansion strategiesBrand reinforcement and revitalization

KEY CONCEPTSSTEPS

Grow and SustainBrand Equity

Identify and EstablishBrand Positioning and Values

Plan and Implement Brand Marketing Programs

Measure and InterpretBrand Performance

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Motivation forCustomer-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

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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

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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

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CUSTOMER-BASED BRAND EQUITY PYRAMID

RESONANCE

SALIENCE

JUDGMENTS FEELINGS

PERFORMANCE IMAGERY

4. RELATIONSHIPS =

What about you & me?

4. RELATIONSHIPS =

What about you & me?

3. RESPONSE =

What about you?

3. RESPONSE =

What about you?

2. MEANING =

What are you?

2. MEANING =

What are you?

1. IDENTITY =

Who are you?

1. IDENTITY =

Who are you?

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Salience Dimensions

Depth of brand awareness Ease of recognition & recall Strength & clarity of category

membership

Breadth of brand awareness Purchase consideration Consumption consideration

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Performance Dimensions

Primary characteristics & supplementary features

Product reliability, durability, and serviceability

Service effectiveness, efficiency, and empathy

Style and design

Price

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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

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Judgment Dimensions

Brand quality Value Satisfaction

Brand credibility Expertise Trustworthiness Likability

Brand consideration Relevance

Brand superiority Differentiation

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Feelings Dimensions

Warmth Fun Excitement Security Social approval Self-respect

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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

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Customer-Based Brand Equity Model

Consumer-BrandResonance

Brand Salience

Consumer Judgments

Consumer Feelings

BrandPerformance

BrandImagery

INTENSE, ACTIVE LOYALTY

INTENSE, ACTIVE LOYALTY

RATIONAL & EMOTIONAL REACTIONS

RATIONAL & EMOTIONAL REACTIONS

POINTS-OF-PARITY &

POINTS-OF-DIFFERENCE

POINTS-OF-PARITY &

POINTS-OF-DIFFERENCE

DEEP, BROAD BRAND

AWARENESS

DEEP, BROAD BRAND

AWARENESS

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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

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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

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Establishing Category Membership

Product descriptor Exemplar comparisons

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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

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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?

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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?

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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

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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

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Sustaining & EvolvingPOP’s & POD’s

Core Brand Values &Core Brand Proposition

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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

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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

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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

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The Mandate for

Effectiveness

Today advertising is in a bind

Advertisers expect specific results that lead to sales

Advertising must be effective

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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?

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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

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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

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Marketing role Communication

role Economic role Societal role

The Roles of Advertising

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Functions of Advertising

Provide product and brand informationProvide incentives to take actionProvide reminders and reinforcement

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Advertiser Advertising agency

The advertising department

The in-house agency

Media Vendors Target audience

The Five Players of Advertising

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Age of print Industrial revolution

and emergence of consumer society

Modern advertising: Agencies, science and creativity

Accountability era

The Evolution of Advertising

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Interactive advertising

Globalization Niche marketing Integrated marketing

communications (IMC)

Consumer Power

Current Advertising Issues

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Brand personalities Branding Trust Brand image Brand

relationships Brand equity

How Brands Work

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Complex,Varied

MarketingActivity

Comprehensive,Robust

MarketingMeasures

Detailed,Rich

MarketingModels

MARKETING PLANNING PROCESS

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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.

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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

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Simple Test for Marketing Communications

1. 3. 2. Current Desired

Brand Brand Knowledge Knowledge

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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

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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.

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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

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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

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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?

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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

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IMC Case StudyCMPB Success Factors

Smart strategy Relative deprivation

Imaginative creative Funny but relevant

Clever hook “Got milk?” slogan

Timely secondary media In store

Right partners

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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

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Common Mistakes in Developing Advertising

(cont.) Under-branded ads Failure to use supporting media Changing campaigns too frequently Substituting ad frequency for ad

quality

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CommunicationOption A

Communication Option C

CommunicationOption 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.

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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

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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

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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

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“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

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“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