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Session(2): Brands and Stakeholder Relationships
What “Brand” means? In session 1, brand is defined as “a perception
resulting from experiences with, and information about, a company or a line of products.”
According to one of the top brand consulting firms in the world, a brand is “ a mixture of tangible and intangible attributes, symbolized in a trademark, which, if properly managed, creates influence and generates value.”
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What “Brand” means? (cont’d) Why does one brand have twice the share of another
when there is no difference in product attributes or performance and both brands sell for the same price? The answer is ” a difference in perceptions”.
A brand is basically a perception, not a logo on the side of a package.
A brand exists only in people’s heads and hearts.
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The Power of a Brand
59% Chose Kellogg’s
41% Chose No Brand
Consumers willing to pay $75 more for Hitachi than GE
Identical cereals tasted by consumers:
Vs.
Identical TV sets examined by consumers:
Vs.
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What “Brand” means? (cont’d) A perception can be influenced through positive
(and negative) communication experiences, but not controlled.
IMC helps guard against a perception virus –message misunderstanding that infects and weakens brand messages and ultimately kills relationships.
A brand is more than just a product. Ex: Auto Industry: Parity Products
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What “Brand” means? (cont’d) Branding is the process of creating a brand
image that engages the hearts and minds of customers, is what separates similar products from each other.
Logos are distinctive graphic designs used to communicate a product, company, or organization identity. Brand identity tells the source of a product and often suggests a personality for the brand.
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What “Brand” means? (cont’d) Keep in mind that both companies and
products have identities and images that differentiate them from competitors, so in this course the word brand is used in discussions of both products and companies.
Customers and prospects are influenced by a wide variety of messages that are sent by both the tangible and the intangible attributes of a brand.
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What “Brand” means? (cont’d)
Tangible attributes are characteristics you can observe or touch, such as product’s design, performance, ingredients/components, size, shape, and price.
Although brand managers have input on the messages sent by these tangible attributes, brand managers’ primary responsibility is to influence a brands’ intangible attributes, such as its perceived value, its image, memories associated with the brand, and even the perceptions and impressionsof those who use the brand.
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What “Brand” means? (cont’d) Intangibles are important in brand building
for two reasons: They are hard for competitors to copyThey are more likely than tangible attributes to involve consumers emotionally
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Brand Characteristics
Tangible Attributes Intangible Attributes
Design Value
Performance Brand image
Ingredients / components Image of stores where sold
Size / shape Perceptions of users of the brand
Price
Marketing communication
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What “Brand” means? (cont’d)
Differentiates a Product From Its Competitors
Makes a Promise to ConsumersMakes a Promise to Consumers
Differentiates a Product From Its Competitors
What a Brand Does
Serves As the Driving, Unifying Force Directing All Functional Areas, Including IMC
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Brands live in heads and hearts
Although a company may own a brand name and logo, and greatly influence what people think about its brands, the actual brand meaning that influences behavior resides in the heads and hearts of customers and other stakeholders.
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Brand experience Ultimately the meaning of a brand is based on
customers’ experiences with the brand, either positive or negative.
These experiences lead to customer satisfaction or dissatisfaction.
It has been estimated that when customers switch brands, three out of four times the switch has nothing to do with product performance but rather is a response to customer service and other aspects of the brand experience that customers believed were less than satisfactory.
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Brand experience (cont’d)
“Customer experience” has more to do with brand building than anything else”.
“Brands are “lived” and adapted by each customer according to their own individual experiences with them.”
Positive brand experiences are created by relevance and by offering value through the brand relationship.
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Brands transform products A basic principle of branding is that a brand
transforms products – goods as well as services – into something larger than the products themselves.
How powerful is branding? A brand and what it represents can affect what people are willing to pay for a product.
People perceived the “brand cereal” as tasting better even though both the cereals were identical.
Ex: Wrangler Vs Levi’s both made from Denim15
Brands make promises and set expectations In terms of consumer purchase, the essence of
a brand is a promise. This promise sets expectations for what a
person considers likely to occur when using a product.
French branding expert Jean-Noel Kapferer explains that “ a brand is also a contract, albeit a virtual one, between a company and a customer.”
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Brands make promises and set expectations (cont’d)
Knowledge of what a brand stands for and past experiences with the brand allow customers to make a quick and easy decision.
that’s what a promise means – you know what to expect.
Consistency, a fundamental principle of IMC, is critical to the establishment of a brand promise.
“Clear and compelling brand promise consistently communicated at all points of touch is the principal benefit of branding.”
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Brands make promises and set expectations (cont’d)
Promises mean little, however, if the product fails to meet expectations.
Marketing communication has been used for years to make promises in order to generate sales.
Unfortunately, too many businesses do more promising than delivering when managing their brand relationships, because they fail to consider that what they are really doing is setting unrealistic customer expectations.
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Brands make promises and set expectations (cont’d)
But when a promise is strong and the product delivers, the promise becomes a platform for helping build a long term relationship with satisfied customers. This is why it is important to create brand messages that make realistic promises – ones the brand can deliver.
Generally, brands fail to meet expectations for one of two reasons: The first is that expectations are raised too high,
usually in overzealous advertising. The second is that products or supporting services
are defective. 19
How Brands Are Created And Maintained
Building a successful brand, whether for a company or for a new product, requires strategic planning and a major investment.
Ex: HP Division, Agilent Three steps lead to successful brand strategies:Selecting the desired brand positionDeveloping the brand’s identification Creating the brand image
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The Marines Have Developed a “Tough” Image
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1. Selecting the Desired Brand Position
Brand position is the standing of a brand in comparison with its competitors in the minds of customers, prospects, and other stakeholders.
The challenge is to select a position that can be realistically supported by the product, the company, and the marketing communication – and that can be appreciated by customers and prospects.
Ex: Volvo (as the safest), Corvette(as the sportiest), Ford(most practical)
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1. Selecting the Desired Brand Position(cont’d) Because brand position hinges on a brand’s meaning,
changing a brand’s meaning can allow a company to move or enlarge its brand position.
معني كه كند مي تالش ديزني مثال عنوان به Disney Movie به سالها كه را classic معني animated characters that appeal to children ديزني مديران لذا نباشد، ها بچه براي كمپاني يك فقط و كند وسيع را است بودهAction هاي فيلم كردند سعي & Adventure مانند كنند ايجاد را
pirates of Caribbean ديزني برند با فيلمي عنوان به دپ جاني بازي با A positioning strategy is generally based on one of
several variables: Category (Rockport, Jif) Image (Marlboro)Unique product feature (Wal-Mart, JetBlue)Benefit (Crest) Product user23
1. Selecting the Desired Brand Position(cont’d)
Category positioning: this type of positioning is possible anytime a brand defines, creates, or owns a category or sub product category. (Rockport owns the walking shoe category, Jif own peanut butter category) Similar to category positioning is pre emptive positioning, brand positioning based on generic feature that competitors have not talked about. Pre-emptive positioning is often used by commodity products, goods and services that have very minor or no distinguishing differences. A good example is peanut butter.
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1. Selecting the Desired Brand Position(cont’d)
Image positioning: this type of positioning differentiates on the basis of a created association. It is similar to pre – emptive positioning in that any brand can attempt to create a differentiating image for itself.
Often these attempts fail, however, because the image is not realistic, not creativelyconstructed, or not used long enough to actually build up an association between the brand and the desired image.
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1. Selecting the Desired Brand Position(cont’d)
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وينستون سيگار بار اولين .است مارلبرو زمينه اين در موفق خيلي مثال يكcowboy نتوانست اما داد نشان راimage اين از خوبي cowboy دهد نشان.
herding دارد فرد اين كه داد نشان مثالً cattleيا eating bean مي انجام و تر جذاب بسيار و درآميخت western فرهنگ با را image اين مارلبرو اما دهد
.شد تر واقعي The creative people at the Leo Burnett advertising agency
in the 1950’s decided they could take this attempt at“cowboy” positioning and make it distinctive andinspirational.
They used a solitary cowboy as a symbol ofindependence, put a tattoo on his arm, and alwaysshowed him isolated in dramatic western settings.
1. Selecting the Desired Brand Position(cont’d) Unique product feature positioning: this type of positioning
is based on an element that is unique to the product or company. Product features are tangible and intangible attributes of a good or service, and they provide a basis for positioning.
Price and how it translates into value is an intangible feature that is the basis of Wal-mart’s position. (Always low prices)
هوايي خطديگر مثال Jet Blue توصيف صورت بدين را خود كه است fashionably كند مي simple & efficient تواند نمي ديد وقتي tangible به كند position قيمت اساس بر را خود features روي در و داد كاهش را ها هزينه باشد برتر تواند نمي ديد جاهاييكه در .آورد
More برايش كه كرد گذاري سرمايه جاهايي lasting impression و صندلي هر در شخصي مانيتور چرمي، هاي صندلي مثالً دارد همراه به
خط اولين هم 9/11 از بعد .پوشند مي لباس روز مد با بسيار كه پرسنلي ميان در بود ساله 5 وقتي تنها كردك نصب bulletproof كه بود هواييMidwest از پس داشت را 2 رتبه داخلي هوايي خطوط Express
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1. Selecting the Desired Brand Position(cont’d)
Benefit positioning: this type of positioning is based on benefits, advantages that allow a product to satisfy customers’ needs, wants, or services.
Positioning by product user: another approach is positioning by product user or a class of users. Johnson & Johnson increased its market share from3 to
14% when it repositioned its shampoo from a product used for babies to one used by people who wash their hair frequently and therefore need a mild shampoo.
A similar strategy was used to get adults to use Johnson’s Baby Lotion.
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Managing a Brand’s Position To determine how customers perceive a brand and its
competitors, one thing market researchers do is ask a sample of customers to participate in perceptual mapping.
Perceptual mapping is a visualization technique that indicates how customers perceive competing brands in terms of various criteria.
Numerical rankings for each criterion are averaged and plotted. The map enables brand managers to quickly see how their brands compare, in the minds of consumers, with competing brands.
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Figure 3-1: Determining the Desired Brand Position
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Repositioning a Brand Sometimes brands need to be repositioned because their
original position no longer fits the modern – day culture. Repositioning may also be used when a brand extends
its product line and needs to redefine itself in terms of its new goods or services.
Ex: Dramatic change in positioning (Dr. Scholl’ sandals) Product feature Image Sandals from a fitness line to a fashion line Moved from drugstores into trendy shoe stores Sex and the City product placement Independents designers started buying, repainting, and
reselling with hand-painted flowers and patchwork designs
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IMC In Action: Dr. Scholl’s
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2. Developing Brand Identification The brand name and symbol chosen to represent a brand
need to reflect the position of the brand, and they must work as identification cues.
The more memorable and relevant the brand name and symbol are, the faster and less costly it will be to create awareness of a brand, position it in customers’ minds, and develop an image for it.
Making it easy to find and repurchase a brand is an important factor in customer retention.
Thus the more specific and less ambiguous brand –identity cues are, the more they help customers save time looking for a product, which adds value to the brand.
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Brand Names Although choosing a memorable name is more
art than science, successful brand names generally are the result of extensive research.
Ex: Mutual Fundsروي بر مطالعه فروش بر برند نام تاثير از خوب مثال يك Mutual
Funds كردند عوض را خود نام بازاريابي مقاصد منظور به كه است اينكه تا بودند نداده خود پيشنهادي خدمات در تغييري هيچ حاليكه در
بودند كرده عوض را خود نام كه هايي سازمان .سازند متمايز را خود هم هاي سازمان به نسبت بودند آورده بدست بيشتري جديد پول 22%
.بودند نداده نام در تغييري كه خود اندازه35
Brand Names (cont’d) Successful brand names share several
characteristics that help make them memorable. A good brand name usually communicates one or
more of the following characteristics: Benefit (Head & Shoulder, Slim – Fast)Association (HP: Agilent for a high-tech spin-
off because it conveyed a positive, relevant meaning – namely agility)
Distinctiveness (Apple, Charlie) Simplicity (Tide, Bic, Ha-Li-Bo-Te) www.cintara.com/naming
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Brand Names (cont’d)
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When Lucent Technologies spun off its enterprise communication division, marketers wanted a name that would break away from the traditional sound of telecommunication company names.
They came up with Avaya, inspired by an ancient word for “unity”. In market research customers commented that the name felt
energetic, positive, and “smooth”. They recommended adding the corporate descriptor
“communication” to emphasize the human aspect of Avaya’s business.
The name and descriptor reinforce perceptions of a company whose employees are united around a common goal of helping businesses develop strong and seamless relationships with their customers.
Monster.Com Is a Distinctive Brand Name
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Brand Symbols We live in a visual world. Having a symbol for a brand
can greatly increase a brand’s recognition. In the realm of products and companies, a distinctive logo
is used to indicate a product’s source or ownership. Corporate logos range from a simple name to abstract
design. A trademark is similar to but broader than a logo. A
trademark is an element, word, or design that differentiates one brand from another.
In order for logos and trademarks to do their job, they should be distinctive, simple, and consistent with the desired image and positioning of the brand.
Brand logos usually are enduring symbols, but they may change as the brand matures.
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Examples of Well Known Brand Logos
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Craftsman Is a Legally Protected Trademark of Sears
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Brand Symbols (cont’d)
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A company has exclusive use of a trademark by using it first and consistently, and by registering it with a government agency.
A problem can arise, if a trademark name, such as Kleenex, becomes commonly used for a product category.
Though a hallmark of successful branding, the generic use of a brand name may cause the company to lose its exclusive right to the name as a legally protected trademark.
3. Creating a Brand image A brand image is an impression created
by brand messages and experiences and assimilated into a perception or impression of the brand.
An image adds value to a brand because the image can communicate something about the buyer to other people.
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“The products you wear, drive, or subscribe to can tell others what you think is important”
Branding Experts
Managing a system of Brands As companies grow and expand the number of products
they make, they not only extend their brands to these products but often give these products separate brand names.
Multi – tier branding is the use of two or more brands (all owned by the same company) in the identification of a product. (Ex: IBM ThinkPad, Kellogg’s Corn Flakes)
A corporate brand name is the mother brand, or umbrella brand. A product brand name identifies a specific product or line of products. A third tier would be a model brand name. an example of three-tier branding is Chrysler’s (mother brand) Jeep Cherokee (product brand) Laredo (Model brand)
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Managing a system of Brands (cont’d) Use of the corporate brand is intended to
communicate trust and quality, because the company itself usually has been in existence longer than the product line and has established perceptions of trust and quality.
The role of the product brand is to communicate such benefits as performance, reliability, and image.
In three-level branding strategy, the model brand communicates an even more specific level of performance and sometimes price.
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Managing a system of Brands (cont’d) Multi-tier branding is used for several reasons:One is to take advantage of the value of the
corporate name. Another is to strengthen the corporate brand by
connecting it with a successful product line. A third is that a product brand helps differentiate the
offering from other products sold by the company, as well as from competing products.
Multi-tier branding basically combines two (or more) sets of brand perceptions with the idea that two (or more) brands are stronger and more attractive than a single brand.
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Managing a system of Brands (cont’d)
Multi-tier branding creates strategic challenges for brand messages. When doing multi-tier branding, MC managers must decide how much emphasis to give each brand.
How ? The answer reflects input from customers and prospects
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How brand relationships are created and maintained
“ A successful brand is nothing more than a special relationship.”
Brand success depends on retaining customers, and good customer relationships lead to retention.
A customer relationship program that builds a brand must be a long-term effort to develop trust, not merely a traditional advertising and promotion campaign that focuses on short-term transactions.
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How brand relationships are created and maintained (cont’d)
Strategies that focus only getting sales can be dangerous. When customers are persuaded or manipulated into buying something they don’t need or want, a company risks several undesirable outcomes: First, customers who have been overpromised will
ultimately be less satisfied than those who have not been and thus will be more likely to bring back a product or demand special handling, both of which increase operating costs.
Second, disappointed customers become negative spokesperson for the brand.
Third, disappointed customers are less likely to buy again; so the sale becomes a one-time transaction rather than the beginning of a relationship, and the investment made to get that first (and only) sale is lost.
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How brand relationships are created and maintained (cont’d) If overpromising is not a good strategy for
building customer relationships, then what is? A better approach is to commit to a customer-centric philosophy that values employees’ who in turn support the politics that keep customers satisfied.
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Responsive-ness
Consistency Accessibility
Commitment Responsiveness
Consistency Accessibility
Customer Centric Philosophy
Relationship Aspects
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Customer Centric Philosophy
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Consistency: consistency is communicated by product uniformityas well by uniformity in the way a company positions itself and responds to situations. A brand needs to deliver the same message and present the same image in all brand messages.
Accessibility: when there is a problem, customers want to feel they have resource, such as the ability to quickly contact someone and have the problem fixed.
Responsiveness: when questions, inquiries, and complaints are quickly and thoroughly handled, customers, not only are more satisfied but feel the company really cares about and appreciates their business. Responsiveness can overcome negative feelings a customer may have about a brand.
Commitment: customers want to feel that a company has their best interests as heart and won’t do and say anything simply to make a sale.
Liking SatisfactionTrust LikingTrust
Aspects Arising from the Consumer
Relationship Aspects
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Loyal Word of Mouth Advocates Can Be Highly Persuasive With Other Consumers
Current Heavy Users Typically Account for Most of a Brand’s Revenue
Selling to Existing Customers Is Much Less Costly Than Attracting New Customers
Existing Brands Account for Most of the Brand Communication With Consumers
Current Heavy Users Typically Account for Most of a Brand’s Revenue
Existing Brands Account for Most of the Brand Communication With Consumers
Selling to Existing Customers Is Much Less Costly Than Attracting New Customers
Maintaining Relationships Is Critical
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Brand licensing
Broadening distribution
Brand extensions
Co-brandingCo-branding
Brand extensions
Ingredient Branding (Intel Inside)
What Is Brand Equity and How Is It Created?
Brand equity: The intangible value of a company beyond its physical net assets
Leveraging4 Ways ofLeveraging
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Final Note:
One of IMC’s most important contributions:
• Helping to build trust in brands…• …therefore enhancing consumer relationships
• Reason: An organization’s communication with its stakeholders influences everything else it does
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Thank you for Your Attention
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