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Everyone brands

Manufacturers Retailers

Private Store

Wholesalers Services Malls

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What is a brand? A name A symbol A product A store A promise the consumer can trust A key asset

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What is a brand? (Tangibles)

AMA – American Marketing Association “A name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other seller’s.”

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What is a brand? Cow fits definition – is it a brand? What if Mercedes becomes Dolores

– will it no longer be a brand? If Pentium becomes Intellect

(rejected candidate name), will it sell less?

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What is a brand?

Cow is not a brand, but a product class Guernsey or Holstein might represent

product forms Symbol burned into cow’s hide to

identify the cows of a particular owner is a brand

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Why Consumers use Brands

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Reasons

Facilitate

Quality

Image

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Shop fewer stores

1980 – 3.5 stores 1990 – 2.75 stores 1995 – 2.2 stores 2000 – 1.2 stores

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Brand as asset – (Intangibles)

Brands have equity perceived to have value beyond what

the products/services/stores they are attached to produce in sales and profits

Brands can be more lasting than assets of factories, warehouses, stores

Brands may appreciate rather than depreciate

Brands are portable

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Measuring brand equity Value stockholders place on a brand

Market share, customer loyalty, market penetration, lifetime value of a customer

Consistently deliver on their promise The Gap Home Depot Amazon.com

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What threatens brand equity?

Low or inconsistent quality Michelob (Where you’re going, it’s

Michelob) Extending into inappropriate channels Lack of innovation Not differentiating Not meeting consumer expectations

“every point of customer contact”

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Planning Brand Strategy

Know your core business Develop 3 interrelated strategies

Positioning Personality Affiliation

Communicate brand strategies

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Company performance

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Sales Profit Stock

All Retail

The Gap

Home Depot

Amazon

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1. Positioning strategy The niche a brand occupies in

consumers’ minds Maintain parity with competitors AND

differentiate Must define 3 things

target audience competitive frame of reference meaningful differentiation point

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Motel 6 positioning For frugal people, Motel 6 is a

comfortable night’s stay at the lowest price of any national chain. Target audience Competitive frame of reference Meaningful Differentiation point

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Develop positioning strategy

For (target audience), your brand is a (competitive frame of reference) that provides (meaningful differentiation point).

Is it a brand? Not just a store name.

Group members’ names – IC #5

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Positioning examples Product superiority, maintain service

Mercedes-Benz, Sony Excel in service, hold own in quality

Nordstrom, Saturn Superior use of user imagery,

adequate or strong performance Calvin Klein, Harley Davidson

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2. Create Brand Personality Strategy

Set of human traits brand portrays in its relationship with its customers

Character or personality that predicts what to expect

“that sounds like a __________ ad” Motel 6 personality strategy Deliver brand personality at every point

of contact

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3. Manage Brand Affiliation How you think others will perceive you if

they know you use a particular brand? Prevent negative or limiting perception Motel 6 example Bic example

ballpoint pens - 1950’s disposable cigarette lighters - 1970’s disposable razors - 1980’s Perfume - 1989 - “Paris in your pocket”

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For Global Against Homogenous

tastes Economies of scale Small markets get

their share Brand

effectiveness can be improved

Local market tastes/pref. ignored

Choices and effectiveness diluted for global appeal

Local regulations and restrictions

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Cyberbranding Strong brand can provide powerful

advantages, esp. initially Branding is more complex

creating an experience that potential buyers interact with

Reach and interactivity are increased

Victoria’s Secret example

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Brand Extension New products

Williams-Sonoma’s Pottery Barn catalog launched Pottery Barn Kids

L.L. Bean launched L.L. Home New customers

Abercrombie & Fitch launched abercrombie New formats

Avon to Avon.com, mall-based kiosks, Avon spa

Delia’s direct marketer, stores, Internet

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Brand Extension

New Channels Starbucks, license with Kraft for

supermarkets New Businesses

Tesco now offers natural gas to customers Nordstrom is into financial services

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Rational Branding

Something of value is given in exchange for information

Build your own…...

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Rational Branding