Brand Management

BRANDING AND

MARKETING PROMOTION

STRATEGIES (Part I)Core Text:

“Strategic Brand Management”

by

Kevin Lane Keller (2nd Edition)

Presented by:

PROF. HIMMAT ADISARE

BRANDS AND BRAND

MANAGEMENT

Ref: Chapter 1 of Core Text

What is a Brand?

Definition: “A brand is a product that

adds other dimensions that differentiates

it in some way from other products

designed to satisfy the same need.”


Why Do Brands Matter?

CONSUMERS:

Identification of

Source of Product

Assignment of

Responsibility to

Product Maker

Risk Reducer

Search cost Reducer

Promise, Bond, or

Pact with Maker of

Product

Symbolic Device

Signal of Quality


Why Do Brands Matter? (2)

MANUFACTURERS:

Means of Identification

to Simplify Handling or

Tracing

Means of Legally

Protecting Unique

Features

Signal of Quality Level

to Satisfied Customers

Means of Endowing

Products with Unique

Associations

Source of Competitive

Advantage

Source of Financial

Returns


Can Anything Be Branded?

Physical Goods

Services

Retailers and

Distributors

Online Products

and Services

People and

Organizations

Sports, Art and

Entertainment

Geographic

Locations

Ideas and Causes


Branding Challenges And

Opportunities

Savvy Customers

Brand Proliferation

Media Fragmentation

Increased Competition

Increased Costs

Greater Accountability


The Brand Equity Concept

Basic Principles of Branding and Brand Equity:

Differences in outcomes arise from the “added value” endowed to a product as a result of past marketing

activity for the brand.

This value for a brand can be created in many different ways.

Brand equity provides a common denominator for interpreting marketing strategies and assessing the value of a brand.

There are many different ways in which the value of a brand can be manifested or exploited to benefit the firm.


Strategic Brand Management

Process

Identifying and Establishing Brand

Positioning and Values

Planning and Implementing Brand

Marketing Programs

Measuring and Interpreting Brand

Performance

Growing and Sustaining Brand Equity


CUSTOMER-BASED BRAND

EQUITY


CHAPTER 2

Sources Of Brand Equity

Brand Awareness

Consequences of

Brand Awareness

Learning advantages

Consideration

advantages

Choice Advantages

Establishing Brand

Awareness

Brand Image

Strength of Brand

Associations

Favorability of

Brand Associations

Uniqueness of Brand

Associations


Building A Strong Brand

The Four Steps of Brand Building:

1. Identity (Who are you?)

2. Meaning (What are you?)

3. Response (What about you?)

4. Relationship (What about you & me?)


Customer-based Brand Equity

Pyramid

Resonance

Judgments Feelings

Performance Imagery

Salience


Identity

Meaning

Response

Relationship

Customer-based Brand Equity Pyramid (2)

Brand Salience: This relates to aspects of awareness of the brand

Brand Performance:This relates to ways in which product/ service meets customers’ needs

Brand Imagery: It’s how customers visualize a brand abstractly, with no relevance to what the brand actually does

Brand Judgments: The customers’ personal opinions and evaluations with regard to the brand

Brand Feelings: The customers’ emotional responses and reactions with respect to the brand

Brand Resonance: The ultimate relationship & level of identification that the customer has with the brand


BRAND POSITIONING AND

VALUES

CHAPTER 3


Identifying and Establishing

Brand Positioning

Basic Concepts

Target Market

Nature of Competition

Points of Parity and Points of Difference



Brand Positioning (2)

Basic Concepts: According to the CBBE

model, it is necessary to decide:-

1. Who the target consumer is

2. Who the main competitors are

3. How the brand is similar to these

competitors, and

4. How the brand is different from these

competitors




Target Market:

Segmentation Bases:

a) Behavioral b) Demographic

c) Psychographic d) Geographic

Segmentation Criteria:

a) Identifiability b) Size

c) Accessibility d) Responsiveness




Nature of Competition:

Channels of Distribution

Competitors’ Resources

Competitors’ Capabilities

Competitors’ Likely Intentions

Other Competitive Factors (Porter’s 5-

Force Model refers)

Ref to Chapter 3 of Core Text


Brand Positioning

Points of Parity and Points of Difference:

1. Points of Difference Associations

2. Points of Parity Associations

3. Points of Parity versus Points of

Difference


Positioning Guidelines

1. Defining and Communicating the

Competitive Frame of Reference

2. Choosing Points of Parity and Points of

Difference

3. Establishing Points of Parity and

Points of Difference

4. Updating Positioning Over Time


Positioning Guidelines (1)

Defining and Communicating the Competitive Frame of Reference:

A starting point in defining a competitive frame of reference for brand positioning is to determine Category Membership. Membership indicates the products or set of products with which a brand competes. Communicating category membership informs the consumer about the goals that they might achieve by using a product or service.



Choosing Points of Parity and Points of Difference:

Points of Parity: These are driven by the needs of category membership and the necessity of negating competitors’ PODs.

Points of Difference: These are based on the following criteria:

1. Desirability: In terms of a) Relevance

b) Distinctiveness, and c) Believablity

2. Deliverability: In terms of a) Feasibility

b) Communicability, and c) Sustainability



Establishing Points of Parity and Points of Difference:

1. Separate the attributes: Launch two marketing campaigns, each one devoted to a different brand attribute or benefit.

2. Leverage Equity of another Entity: Link the brand with a well-liked celebrity, cause or event.

3. Redefine the Relationship: Use attitude change strategies to convert negative perspectives about the brand to positive ones.



Updating Positioning Over Time:

1. Laddering: This strategy is to deepen the meaning of the brand to tap into core brand values or other more abstract considerations.

2. Reacting: This could imply no reaction to moderate or significant reactions depending on level of competitive threat.


CHOOSING BRAND

ELEMENTS TO BUILD

BRAND EQUITY

CHAPTER 4


Criteria for Choosing Brand

Elements

1. Memorability

2. Meaningfulness

3. Likability

4. Transferability

5. Adaptability

6. Protectability


Options and Tactics for

Brand Elements

1. Brand Names

2. URLs (Uniform Resource Locators)

3. Logos and Symbols

4. Characters

5. Slogans

6. Jingles

7. Packaging


DESIGNING MARKETING

PROGRAMS TO BUILD

BRAND EQUITY

CHAPTER 5


New Perspectives on

Marketing

Five Major Drivers of the New Economy:

Philip Kotler identifies them as under:

1. Digitalization and connectivity

2. Disintermediation and Reintermediation

3. Customization and Customerization

4. Industry Convergence

5. New Customer and Company Capabilities

(Remaining topic is for Self-study)


Product Strategy

Perceived Quality and Value:

1. Brand Intangibles

2. TQM and Return on Quality

3. Value Chain

Relationship Marketing:

1. Mass Customization

2. Aftermarketing

3. Loyalty Programs


Pricing Strategy

Consumer Price Perceptions:

Price Band strategies

Value-based Pricing Strategies

Setting Prices to Build Brand Equity:

Value Pricing based on: a) Product design and delivery b) Product costs, and c) Product prices

Everyday Low Pricing (EDLP): A strategy based on low pricing as well as discounts and promotions to consumers at regular intervals.


Channel Strategy

Channel Design: Broadly, channel types can be classified into Direct and Indirect channels.

Direct Channels: a) Company-owned stores b) Leased/Rented shopping-space in larger department stores.

Indirect Channels: a) Distributors and Dealers b) Retailers c) other middlemen

Web Strategies: Today, these are extremely powerful channels if supported by efficient physical “brick & mortar” channels.


LEVERAGING SECONDARY

BRAND KNOWLEDGE TO

BUILD BRAND EQUITY

CHAPTER 7


Conceptualizing the

Leveraging Process Creation of New Brand Associations:

By making a connection between the brand and another entity, consumers may form a mental association from the brand to this entity and, consequently, to any or all associations, judgments, feelings and the like linked to that entity

Effects on Existing Brand Knowledge: Three factors are important in predicting the extent of leverage resulting from linking the brand to another entity:

i) Awareness and knowledge of the entity

ii) Meaningfulness of the knowledge of the entity, and

iii) Transferability of the knowledge of the entity


Company

The branding strategies adopted by a company that makes a product or offers a service are an important determinant of the strength of association from the brand to the company and any other existing brands. Three main branding options exist for a new brand:

1. Create a new brand

2. Adapt or modify an existing brand

3. Combine an existing and new brand


Country of Origin

Besides the company that makes the product,

the country or geographic location from which

it is seen as originating may also become linked

to the brand and generate secondary

associations. Thus, a customer may choose to

wear Italian suits, exercise in American sports

shoes, drive a German car, and drink English

beer.


Channels of Distribution

Channels of distribution can directly affect the equity of the brands they sell by the supporting actions that they take. Retail stores can indirectly affect the brand equity of the products they sell by influencing the nature of associations that are inferred about these products on the basis of the associations linked to the retail stores in the minds of consumers.


Co-Branding

Co-branding: Also called brand bundling or brand alliances-occurs when two or more existing brands are combined into a joint product or are marketed together in some fashion.

Ingredient branding: This is a special case of co-branding that involves creating brand equity for materials, components, or parts that are necessarily contained within other branded products.


Licensing

Licensing involves contractual

arrangements whereby firms can use the

names, logos, characters, and so forth of

other brands to market their own brands

for some fixed fee. Because it can be a

shortcut means of building brand equity,

licensing has gained popularity in recent

years.


Celebrity Endorsement (1)

Using well-known and admired people to

promote products is a widespread phenomenon

with a long marketing history. The rationale

behind these strategies is that a famous person

can:

1. Draw attention to a brand, and

2. Shape the perceptions of the brand by virtue

of the inferences that consumers make based on

the knowledge they have about the famous

person.


Celebrity Endorsement (2)

Potential Problems:

1. Celebrity endorsers can be overused by endorsing so many products that they lack any specific product meaning or are just seen as overly opportunistic or insincere.

2. There must be a reasonable match between the celebrity and the product.

3. Celebrity endorsers can lose popularity thus diminishing their market value to the brand.

4. Many consumers feel that celebrities are doing the endorsement only for money.


Sporting, Cultural, or Other Events

1. A brand may seem more likable or even trustworthy by becoming linked to an event.

2. Sponsored events can contribute to brand equity by becoming associated to the brand and improving brand awareness, adding new associations, or improving the strength, favorability, and uniqueness of associations.


DEVELOPING A BRAND

EQUITY MEASUREMENT

AND MANAGEMENT

SYSTEM

CHAPTER 8


The Brand Value Chain

Value Stages:

1. Marketing Program Investment

2. Customer Mindset

3. Market Performance

4. Shareholder Value


Value Stages (1)

Marketing Program Investment: The ability of a marketing program investment to transfer or multiply further down the chain will depend on qualitative aspects of the marketing program via the program multiplier.

The Program Multiplier: Four factors are important:

1. Clarity 2. Relevance

3. Distinctiveness, and 4. Consistency


Value Stages (2)

Customer Mindset: Five dimensions have emerged

from research as important measures of the customer

mindset:

1. Brand Awareness 2. Brand Associations

3. Brand Attitudes 4. Brand Attachment

5. Brand Activity

Customer Multiplier: Three essential factors are:

1. Competitive Superiority 2. Channel and other

intermediary support 3. Customer size and profile


Value Stages (3)

Market Performance: Six dimensions need to be addressed:

1. Price Premiums 2. Price Elasticities

3. Market Share 4. Brand Expansion

5. Cost Structure 6. Brand Profitability

Market Multiplier: Following factors need to be considered:

1. Market Dynamics 2. Growth Potential

3. Risk Profile 4. Brand Contributions


Value Stages (4)

Stakeholder Value: Based on all available and forecasted information about a brand and many other considerations, the financial marketplace then formulates opinions and makes various assessments that have direct financial implications for the brand value. Three important indicators are:

1. Stock price

2. Price/earnings multiple, and

3. Overall market capitalization of the firm


The Brand Value Chain

Implications:

1. A necessary condition for value creation is a well-funded, well-designed, and well-implemented marketing program.

2. Value creation involves more than just the initial marketing investment.

3. Each of the three multipliers can increase or decrease market value from stage to stage.

4. The brand value chain provides a detailed roadmap for tracking value creation enabling market research and intelligence efforts.


Designing Brand Tracking

Studies What to Track:

1. Product Brand Tracking

2. Corporate or Family Brand Tracking

3. Global Tracking

How to Conduct Tracking Studies:

1. Who to track

2. When and where to track

How to Interpret Tracking Studies


Designing Brand Tracking Studies (1)

What to Track: Three distinct surveys can be conducted for:

1. Product-Brand Tracking: The six-block pyramid for brand-building can be used as a basis for design of the questionnaire.

2. Corporate or Family Brand Tracking: Some additional questions may be added to establish levels of corporate credibility and corporate brand associations.

3. Global Tracking: A broader set of background measures are needed to put brand development in those markets in the right perspective .



Who to Track:

1. Current Customers

2. Potential Customers

3. Channel Members

4. Frontline Employees (Services sector)

When and Where to Track: Options are:

Continuous Tracking Studies

Based on Stage of Product Life Cycle

Based on depth of Brand Equity



How to Interpret Tracking Studies: For tracking measures to facilitate actionable insights and recommendations, they must be reliable and sensitive as possible. This may require framing of questions in a comparative or temporal manner. It is also necessary to decide on appropriate cutoffs. For example:

What is a sufficiently high level of brand awareness?

When are brand associations sufficiently strong, favorable, and unique?

How positive should brand judgments and feelings be?

What are reasonable expectations for the amount of brand resonance?


Establishing a Brand Equity

Management System

Brand Equity Charter

Brand Equity Report

Brand Equity Responsibilities:

1. Overseeing Brand Equity

2. Organizational Design and Structure

3. Managing Marketing Partners



Management System (1)

Brand Equity Charter: A formalized document should spell out the following:

The firm’s view of the brand equity concept.

The scope of the key brands of the firm.

Specify the actual and desired equity for a brand at all relevant levels i.e. at individual product level and corporate level.

Strategies for managing brand equity.

Outline specific tactical guidelines for marketing programs.

Trademark usage, packaging & communications




Brand Equity Report: Important market information that should be included:

1. Product shipments and movement through channels of distribution.

2. Relevant cost breakdowns

3. Price and discount schedules

4. Sales and market share information

5. Profit assessments





1. Overseeing Brand Equity: Aspects that are important:

a) Review brand sensitive material

b) Review the status of key brand initiatives

c) Review brand sensitive projects

d) Review new product and distribution strategies with respect to core brand values

e) Resolve brand positioning conflicts



Management System (3-contd)


2. Organizational Structure & Design: The

current market trends are redefining job

requirements and duties. The traditional

marketing department is disappearing from a

number of companies that are exploring other

ways to conduct their marketing functions

through business groups, multidisciplinary teams

and so on.



Management System (3-contd)


3. Managing Marketing Partners: The

performance of a brand also depends on the

actions taken by outside suppliers and marketing

partners. Hence, these relationships must be

managed carefully. Many leading global firms

have been consolidating their marketing

partnerships and reducing the number of outside

suppliers. (Ex: Levi Strauss value chain)

Ref: Chapter 8 of Core Text (END OF PART I)

Brand Management

Documents

managing marketing

build brand

marketing

brand equity

brand equity

brand equity

core brand

establishing