Basics in Brand Management

~ Johanna Heinonen-Salakka ~

� A name given to a product or service� A unique and identifiable symbol, association,

name or trademark which serves to differentiate competing products or services.

� Product identification by word, name, symbol, design, or a combination of these.

� The legal term for brand is trademark. � A design, mark, symbol or other device that

distinguishes one line or type of goods from those of a competitor. distinguishes one line or type of goods from those of a competitor.

� A brand may identify one item ,a family of items, or all items of that seller.

� Umbrella term applied to everything from a name or logo, to the overall reputation of an organization or product.

� Both a physical and emotional trigger to create a relationship between consumers and the product/service.

� A company’s face in the marketplaceface in the marketplaceface in the marketplaceface in the marketplace◦ What consumers know

◦ What they believe

◦ How they respond

� The total view a consumer has of a company and it’s “marks”

Differentiation within the marketspace� Differentiation within the marketspace

� Manufacture’s brand (Nokia)

� Private label or “store brand” (Marimekko)

� Captive brand – national label sold by only one retailer (Pirkka)

� Family Brand – name identified with several � Family Brand – name identified with several products (Hartwall)

� Future earnings

� Influence on customers behaviour

� Keep (and increase) customers

Influence on

� Good relation quality/price

� Reliability, safety, functionality of products

� Effectiveness, efficiency of Services

COMPANY’S

POINT OF VIEW

CUSTOMER’S

POINT OF VIEW

� Influence on shareholders

� Awareness, commitment, culture

Effectiveness, efficiency of Services

� Style, design� Emotional experience

(entertainment, approval, selfesteem)

� BRAND IDENTITY◦ What we are now? The sides that strategists want

to express of us?

� BRAND POSITION / BRAND PROFILE◦ The part of the brand identity and value ◦ The part of the brand identity and value

proposition to be actively communicated to a target audience◦ The brand message

� BRAND IMAGE◦ How the brand is now perceived among the target

group

BRAND IDENTITYBRAND IDENTITYBRAND IDENTITYBRAND IDENTITY– what we are now

BRAND PROFILEBRAND PROFILEBRAND PROFILEBRAND PROFILEBRAND PROFILEBRAND PROFILEBRAND PROFILEBRAND PROFILEThe brand image we want

to sent to the worl

BRAND IMAGEBRAND IMAGEBRAND IMAGEBRAND IMAGEThe way our customers see us

BRAND LOAYALTY

BRAND IMAGE

BRAND EQUITY

The image that The sum of a brand´s Consumer's The image that

customers haveThe sum of a brand´s

distinguishing qualities. The intangible value of a

company’ssuccessful efforts to

establish a strong brand.

Consumer's commitment to repurchase. The

consumer is willing to put aside their own

desires in the interest of the brand

ThisThisThisThis processprocessprocessprocess needsneedsneedsneeds a a a a defineddefineddefineddefined and and and and systematicsystematicsystematicsystematic strategystrategystrategystrategy and and and and planningplanningplanningplanning!!!!

� The ”big picture” plan: how a brand will deliver distinctive and relevant benefits to target customers.

An effective brand strategy answers five critical questions:1. What are the most profitable customer segments to

which the brand must appear?2. What is the single-minded value proposition that is 2. What is the single-minded value proposition that is

going to compel these high priority customers to repeatedly choose the Brand?

3. Why should these “high priority targets” believe in the brand?

4. What are the facts that support the value proposition?5. How do we communicate and implement the branding,

marketing and operational plan so employees and sales channels will adoptit?

� Strategic brand analysis (customers, competitors, self-analysis)

� Brand identity (extended core)◦ Brand as product◦ Brand as organization◦ Brand as person◦ Brand as symbol

Value proposition (functional, emotional, � Value proposition (functional, emotional, self-expressive benefits) and Credibility(support other brands)

� Brand-customer relationship

� Brand Identity implementation system◦ Brand position◦ Execution◦ Tracking