Transcript
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Brand
Management
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If all Coca-Colas asset were destroyedovernight. Whoever owned the Coca-Cola
name could walk into a bank the next
morning and get a loan to rebuild everything
Carlton CurtisVP Corporate Communications,Coca Cola
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Brands are
Valuable
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Paying apremium over
other customers
Increase usageover time
Require lessmarketing& sales
investment
Experimentingless with thecompetition Less Vulnerable
to price basedcompetition
MakingReferrals
Brands are valuablebecause they changeconsumer behavior
Brands
secure afuture
stream of
profits
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1United States Beverages 68,734
2 United States Computer Services 60,211
3 United States Computer Software 56,647
4United States Diversified 47,777
5 Finland Consumer Electronics 34,864
6 United States Restaurants 32,275
7
United States Internet Services 31,980
8 Japan Automotive 31,330
9 United States Computer Hardware 30,636
10United States Media 28,447
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But What is a
Brand?
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"a name, sign or symbol used to identifyitems or services of the seller's and to
differentiate them from goods ofcompetitors."
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"a set of assets (or liabilities) linked to abrand's name and symbol that adds to (or
subtracts from) the value provided by aproduct or service"
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A Brand is
A collection of perceptions in the mind of
the consumers (all other stake holders).
Properly managed theseperceptions secure long termrevenue for the business and
create lasting value
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"A brand is the most valuable real-estate
in the world, a corner of the consumer'smind."
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IMPLICATIONS OF THIS DEFINITIONu
A brand is very different from a product,
a brand exist in the mind These perceptions if properly managed
change the consumer behavior
The role of advertising is to positivelyinfluence peoples perception
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Brand value delivered by the Company
Results in change in consumer behavior
And therefore creates business value
Which secures long term revenue and growth
BVEXCHANGEB/WCOMPANY &
CONSUMERS WORKS LIKEu
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A strong brand
Gives Peace of
mind
A Strong brand
saves Time
How does a
Brand deliver
value
A Strong brand helps us express
ourselves: our attitudes,
values and place in society
A strong brand
transforms the
consumption exp.
A Strong brand
gives consumers a
good news story
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THE OBJECTIVE OFBRAND
MANAGEMENT..
Motivating to the customers
Distinctive from Competition
Consistently delivered
Enduring over time
In line with business objectives
To build and maintain a strongbrand which is
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Brand value in built in the mind
Brands are built through every thing theydo & say
A brand can be the driving force for yourbusiness
Brands draw strength from consistency
over time A brand can live for ever
PRINCIPLES OF SUCCESSFULBRAND
MANAGEMENTu
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Three Principles ofBrand Performance
Market Leaders & Superior Brand
performance are interlinked
Market Leading brands tend to Have
higher Profit Margins
There is No Such Thing As Brand
Lifecycle
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Offer Superior perceived quality
Managed Consistently over a long periodto develop a dominant positioning
A Successful Brand Must
Market Leadership
Profitability
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Very Important to Remember
Branding = Marketing Customers ususally never Understand the
product or the company selling it Customers Perceive a Product in their own
terms
Customer Perception will focus on benefits,which are often intangible
Customer perception is not always at theconscious level
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Criteria of Success
At the Product level it must deliver functionalbenefits to meet the market need al least aswell as the competition
A brand will offer intangible benefits over andabove the product
The various benefits of a brand must be
consistent with each other and present a unifiedcharacter or personality
The values offered must be wanted by theconsumer
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A brand must be a blend ofcomplementary physical. rational, and
emotional appeals. The Blend must bedistinctive and result in a clear personality
that will offer benefits of value to
customers
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Brand EssenceThe heart & soul of a brand, a brands fundamentalnature or quality usually stated in two or there words
Brand PromiseA differentiated benefit the brand offers to theconsumer
Brand PositioningThe way a brand is perceived by the consumers
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Brand PersonalityThe adjectives that define a brand
Brand Associations
Any thing that a consumer associates in his mind withthe brand
Brand Identity
This refers to a combination of visual, auditory andother components that create recognition, representthe brand promise, provide differentiation, createscommunications synergy & proprietary
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Brand ArchitectureThe family tree or brands hierarchy. It is how theorganization organizes the various named entities inits portfolio
Brand Portfolio
The mix of brands a company possesses
MasterBrandThe most dominant and highest level brand in thehierarchy. Corporate brands are master brands.Parent brand may or may not be the master brand
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Parent BrandThis is a brand that has extended into more then onecategory
Sub-BrandA new brand that is combined with a parent or masterbrand
Brand ExtensionThis refers to the introduction of the brand into a newproduct category or segment
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Brand EquityThe positive differential effect that knowing the brandname has on customers response to the product orservice
The commercial value of all associations (positive ornegative) that people have of an organization and itsproducts and services
The power of the brand to shift the consumer demandcurve of a product
It is a set of assets (and liabilities) linked to a brand
its symbol that adds to or subtract the value provided
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Very Important to Remember
Brand strength is directlyproportionate to Brand Equity
A Strong Brand is one which has
High Equity
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There are 4 major elements that enhance brandsequity, these elements are called asset categories
These are1. Brand name awareness
2. Brand Loyalty
3. Perceived Quality
4. Brand Associations
Asset Categories
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The management of brand Equity involvesinvestment to create and enhance these assets
Each brand equity asset creates value in a noof ways
Brand equity creates value for customer and thefirm as well
For assets to underlie brand equity, they mustbe linked to the name or symbol of the brand
Implications
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Brand Loyalty Reduced Marketing Costs
Trade Leverage
Attracting new Consumers- Create Awareness- Reassurance
Time to Respond to Competitive Threats
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Brand Awareness Anchor to Which OtherAssociations can be
attached
Familiarity Liking
Signal of substance/commitment
Brand To be Considered
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Brand Recognition Brand Recall
Brand
Awareness
Recognition reflects familiaritywith the brand.
It is simply remembering thatthere was a past exposure to
the brand
Where ?
Why?
What?
NoConcern
The ability of a brand to cometo mind when its productcategory is mentioned
Deciding Factor in getting on
a Shopping list
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Brand AwarenessBrand Name Dominance
Consumers can provide only the name of a single
brand
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Third Asset CategoryPerceived Quality
The customers perception of the overall quality orsuperiority of a product or service relative to itsalternatives"
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Perceived Quality Reason To Buy
Differentiation / Position
Price
Channel Member Interest
Extensions
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Perceived Quality Among all brand elements only perceived quality
has been shown to drive financial performance
Perceived quality is often the major (if notprincipal) thrust of a business
Perceived quality is linked to and often drives theother aspects of how a brand is perceived
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Why Perceived Quality May Differ FromA
ctualQuality?
Customer may be over influenced by a previousimage of quality
A company may be achieving quality in adimension which is not important to a consumer
Customers rarely have all the information to makea sound judgment about quality- even if they dothey lack the motivation and hence depend on 1 or2 cues.
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Why Perceived Quality May Differ FromA
ctualQuality?
Since they dont know how to best judge brandsthey may be looking at wrong cues
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Third 4th
Asset CategoryBrand Associations
A
ny thing linked in memory to brand"
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Brand Associations Help Process orRetrieve information
Reason to Buy
Create Positive attitude / Feeling
Extensions
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Brand Loyalty BrandAwareness
BrandAssociations
PerceivedQuality
Value to customer
Interpretation / processing ofInformation
Confidence in the purchase
decisionUse Satisfaction
Value to Firm
Efficiency& Effectiveness ofmarketing Program
Brand Loyalty
Prices / margins
Brand extensions
Trade Leverage
CompetitiveAdvantage
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BiasAgainstInnovation
Pressure to investelsewhere
Short Term
Pressures
Complex BrandStrategies&Relationships
FragmentingMarkets and Media
Pressure toCompete on
pricesProliferation of
Competitors
Bias towardschanging the
strategies
Why it is difficultto build strongbrands
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Brand IdentityA unique set pfBrand associations that a brandstrategist create or maintain. These associationsrepresent what a brand stands for and imply a
promise to customer from the organizationmembers
ABrand identity should help establish arelationship between the brand and thecustomer by generating a value proposition
involving functional, emotional or self
expressive benefits
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Brand AsSymbol
Brand as aProduct
Brand asPerson
Brand As
Organization
Brand Identity
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ExternalPerspective
trap
BrandImage Trap
Product
Attribute
fixation trap
Brand
PositionTrap
Brand IdentityTraps
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Brand Position TrapBrand Position is that part of brand Identity & valueproposition that is to b e actively communicated tothe target audience and that demonstratesadvantage over competition
Product Attribute fixation trap
When the strategic&
tactical management of the bradfocuses solely on product attributes, based on parton the erroneous assumption that those attributesare the only relevant basis for consumer decisions&
competitive dynamics
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Product Attribute ResearchThe attribute fixation trap is the often caused by
product attribute research
Why?
It is often effective because attributes areimportant to the purchase decision and the useexperience.
It is relatively easy since customers are morecomfortable talking about attributes then aboutless tangible benefits
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Product Attribute Research It reassures managers that customers evaluate
brands using a logical model, which means thattheir decisions are easier to predict & understand
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Limitations of Product-Attribute basedIdentity
Fail to Differentiate
Are easy to copy
Assume a rational customer
Limit brand extension strategies
Creating a frame of reference
Reduce strategic flexibility
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Breaking out of the traps A brand as a product perspective
Identity based on brand as an organization
perspective A value proposition that includes emotional and
self expressive benefits also
The ability of a brand to provide credibility
The internal as well as an external role of brandidentity
Brand Characteristics broader then brand position
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4 Brand Identity
Perspectives
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The Brand as a ProductProduct Related associations will almost alwaysbe an important part of a brand identity becausethey are directly linked to brand choice decisionand the use experience
The Product Scope Association with a productclass
Product related Attributes
Quality / Value
Association withy use occasion
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The Brand as a Product Association with the users
Link to a country or region
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The Brand as OrganizationIt focuses more on attribute of the organizationthen on attributes of products
Organization attributes are more enduring & moreresistant to competitive claims then are productattributes
It is easy to duplicate products then to duplicateorganizations
Organizational attributes usually apply to a set ofproduct classes, competitor in only 1 product
classes may find it difficult to compete
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The Brand as Organization Because organizational attributes such as
innovation is hard to evaluate and communicate, itis difficult for the competitor to show that they haveover come any perceived gap
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The Brand as a Person BrandPersonality
A brand personality can create a stronger brand in
several ways Helps create a self expressive benefit which
becomes a vehicle for person to express his/herpersonality
Brand personality can be the basis for relationshipbetween the customer and the brand
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The Brand as a Person BrandPersonality
Brand personality may help communicate a
product attribute and thus contribute to a functionalbenefit
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The Brand as a SymbolA strong brand symbol can provide cohesion &
structure to an identity and make it much easier togain recognition and recall
It is easy to duplicate products then to duplicateorganizations
Organizational attributes usually apply to a set ofproduct classes, competitor in only 1 productclasses may find it difficult to compete
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Self
Expressive
benefits
EmotionalBenefits
Functional
Benefits
ValueProposition
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Functional benefitsThe most visible and common basis for a value
proposition
If a brand can dominate a key functional benefit, itcan dominate a category
Limitations
Attribute fixation trap
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Emotional benefitsWhen the purchase of a band gives the consumer a
positive feeling, that brand is providing anemotional benefit
Emotional benefits add richness and dept to theexperience of use and owning of a brand
To discover what emotional benefits are or could beassociated with a brand
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Self Expressive BenefitsRussell Belk
We are what we have is perhaps the most basic &
power fact of consumer behaviorBrands can become the symbol of a persons self
concept
Thus it provides a self expressive benefit by providingconsumer a way to communicate their self image
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Self expressive Vs emotionalB
enefitsAt times there is a close relationship between
emotional & self expressive benefits
In general in comparison to emotional benefits, selfexpressive benefits focus on
Self rather then feelings
Public setting and products rather then privateones
Aspirations and future rather then memories fromthe past
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Self expressive Vs emotionalB
enefits The permanent rather then transitory
The act of using the product, rather then the
consequences of using the product
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PriceA brands price is also related to the benefits a brand
provides
Brands are not evaluated independent of price A price too high relative to the benefits offered will
severely undercut the value proposition
FunctionalBenefits
EmotionalBenefits
Self ExpressiveBenefits
Price
Value Proposition
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Price Price is a complex construct
The goal of identity creation &
management is usually to focus onbenefits rather then price
Challenge is to make sure that thebenefits are anchored to elements otherthen price
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Providing CredibilityAt times the brand does not need to drive the
purchase decision, but to endorse it
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TheB
rand as PersonBrand Personality
the set of human characteristics associated with a
given brand Brand personality like human personality is both
distinctive & enduring
The same vocabulary that can be used to describea person can be used to describe a brandpersonality
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Brand
Personality
Product Class
Package
Price
Attributes
User Imagery
SponsorshipsSymbol
Age
Ad Style
Country of Origin
Company Image
CEO
Celebrity Endorsers
Products Related
Characteristics
Non Products
Related
Characteristics
Brand Personality Drivers
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Guides theCommunicat
ion effort
Enriches
Understanding
Creates
Brand equity
Contributes to a
differentiatingIdentity
Why use
BrandPersonality
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Self expression
Model
Relationship Based
Model
How Brand PersonalityCreates Brand Equity?
Functional benefit
RepresentationM
odel
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Self Expression ModelFor certain groups of customers, some brands
become vehicles to express a part of their selfidentity
This identity could be their actual identity or anideal self to which they might aspire
In order to be effective, a brand personality needsto be desirable and important enough to matter tothe person using it
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Relationship
Basis Model
Some people may not aspire to have a certainpersonality trait but would like to have a
relationship with some one having that trait
e,g
One may not aspire to have the personality of acompetent leader but would like to associated withone.
Some types of relationships might be as follows
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Down to earth, family oriented, genuine, old
fashioned
Spirited, young, up to date, out going
Accomplished, influential competent
Pretentious, Wealthy
Athletic Outdoorsy
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Brand
As Friend
An important relationship for many brands isfriendship li
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Frequent changes in position, productforms, symbols, advertising etc
Frequent Deals & coupons
Advertises extensively
Strong customer service, easy-to-usepackage
Continuity of character, packaging
High price, exclusive distribution,advertises in upscale magazine
Friendly advertising, endorsers
Association with cultural events,
Flighty,schizophrenic
Cheap, uncultured
Outgoing, popular
Approachable
Familiar,comfortable
Snobbish,sophisticated
Friendly
Culturally aware
Brand Behavior Personality
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Brand
Relationship Quality
One of the goals of brand management is to achievehigh brand relationship quality (BRQ)
How can we measure BRQ???7 dimensions of associated with strong relationships
between people and suggest how brand customerrelationship should be conceived
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B
R
Q
Behavioral Interdependence
The degree to which actions of related partnersare intertwined is indicated
This brand plays an important role in my life
I feel like some thing is missing when I haventused the brand in a while
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B
R
Q
Personal CommitmentThe partners are committed to each other. Thereis a desire to improve or maintain the quality ofthe relationship over time, and guilt is felt when itis compromised
I feel very loyal to this brand
I will stay with this brand through good times andbad
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Hoe Does TheB
rand Help ToExpress Personality
For certain groups of customers, some brands
become vehicles to express a part of their selfidentity
This identity could be their actual identity or anideal self to which they might aspire
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Organizational
Associations
A host of organizational associations are availableto managers, few moat prevalent are
Society/community orientation Perceived Quality
Innovation
Concern for Customers
Presence & Success
Local vs Global
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Society/community orientationSome organizations are Good citizens
78% consumers said they would buy from a firm
that contributed to medical research, educationand similar causes rather then one that did not
2/3 said they would switch brands to amanufacturer that supported a cause they deemed
worthwhile
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Have a Program Have Focus
Be consistent over time
Link the program to the brand
Be branded
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Sources ofB
rand Identity1. The Product
2. The Name
3. Brand Character& Symbols
4. Geographical & Historical Roots
5. Advertising & Promotion
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