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8/9/2019 integrated marketing communicationDeveloping Brands
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Developing BrandsDeveloping Brands
Overcoming Brand ParityOvercoming Brand Parity
ProblemsProblems Different BrandsDifferent Brands
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To help establish strong
brand equity, the brand
parity problem should be
resolved.Brand parity occurs when there
are few tangible distinctions
between competing brands in
mature markets. Brand parity indicates that only minorproduct differences exist.
Brand equity on the other hand represents a set ofcharacteristics that are unique to a brand.
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Benefits of brandBenefits of brand
equityequity
1. Brand equity allows the firms to chargepremium prices.
2. Because of the differentiated image, brand equity mayenable the firm to retain higher market share.
3. It is a source of channel power for dealing withretailers and leads to an improved position in terms ofshelf space and displays.
4. It influences the wholesalers to stock more of these
brands and encourage their customers to purchase.5. Brand equity may dissuade customers to look for
cheaper products and special deals or incentives tobuy another brand
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Brand equity andBrand equity and
dominationdomination
Domination is a strongly held view
that the brand is number one in its
product category.
Domination can happen in a geographicregion, smaller product category, or
market niche.
To dominate, the brand must be seen
as No.1 in some way by the consumers.
Colgate may be seen as the No. 1 in
fighting cavity; Volvo in terms of safety,
and SBI as the largest bank in India
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Global BrandingGlobal Branding
Branding particularly in international
markets, is a complex affair.
Firms can follow an adaptation strategy or
standardization strategy in promoting brands. Standardization means the use of same brand
name in all countries.
In Adaptation, the brand is different in each
country or region
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Using a standardized global brand reducescosts instead of advertising for each localbrand with a separate communication strategy
Standardized global brands allow the transfer ofbest practices from one country to another.
The global brand may seem to have a higherperceived quality
As the world seems to shrink through advances
in telecommunications, consumers arebecoming more similar displaying similarconsumer characteristics and purchasebehaviors.
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But the global brands have failed in many
instances due to local idiosyncrasies,
sensitivities, or traditions. Global brands generally do well in high-
profile, high-involvement product
categories.
Local brands perform best in low-
involvement everyday products
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In a globally integrated marketing
communication (GIMC) strategy, the wise thing
to do is to think globally, but act locally. This is
very much applicable in all branding strategies.
Though the approach should be to develop
global brands, marketers will be well advised to
understand the unique features of local brands
and provide support to them
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Brands develop histories
Brands have personalities
Brands have strengths, weaknesses, and flaws
Brands have families a brand familyis one inwhich a company offers a series or groups ofproducts under one brand name
The goal of branding is to set a product apartfrom its competitors.
After brand recognition is achieved, the nextstep is to prolong its life by sticking to oneunique selling point
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Types of brandsTypes of brands
Family brands A group of relatedproducts sold under one name
Brand extension The use of anestablished brand name on products
or services not related to the corebrand
Flanker brand The development ofa new brand sold in the same categoryas another product
Co-branding The offering of twoor more brands in a single marketingoffer
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Ingredient branding The placement of one brand within another brand
Cooperative branding The joint venture of two or more brands into a new
product or service
Complementary branding The marketing of two brandstogether for co-consumption
Private brands Proprietarybrands marketed by anorganization and sold withinits own outlets
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Private BrandsPrivate Brands
Private brands, also known as Private Labels, areproprietary brands marketed by an organizationnormally distributed exclusively within the organizationsoutlets.
To many individuals, private brands mean lower pricesand inferior quality. That is because historically primarytargets for private labels are price-sensitive buyers. Butthis is no longer true because retailers are these daysinvesting a lot of money for developing private labels. In
the US and Canada private label sales are around 13%and 20% respectively. In India too this trend is gainingmore momentum.
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PositioningPositioning
Final element in corporate and image management isproduct positioning.
Positioning is the process of creating a perception inthe customers mind regarding the nature of a
company and its products relative to competitors.
Positioning is created by variables such as quality ofproducts, prices charged, methods of distribution,image, and other factors.
A products positioning is based on two elements: (1)the products standing relative to the competition and(2) how the product is perceived by consumers.
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The end result of positioning is the successful creation of acustomer-focused
Value proposition, a cogent reasonwhy the target market should buythe product.
Example of a value proposition: Company and product :
Volvo Station Wagon
Target customer: Safetyconscious upscale families
Benefits: Durability and safety
Price: 20% premium Value proposition: The safest, most durable wagon in which your
family can ride
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Another example
Company and Product: Dominos Pizza
Target customers: Convenience-minded Pizza
lovers
Benefits: Delivery speed and good quality
Price: 15% premium
Value proposition: A good hot pizza, delivered toyour door within 30 minutes of ordering, at a
moderate price
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Consumers ultimately determine the
position a product/brand holds. Marketing
programs are designed to position
effectively. To do so, marketing
communications must either reinforce
what consumers already believe about the
product and its brand name or shiftconsumer views toward a more desirable
position.
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Effective PositioningEffective Positioning
Effective positioning can be achieved in sevenways:
1. Attributes
2. Competitors3. Use or application
4. Price-quality relationship
5. Product user
6. Product class
7. Cultural symbol