Brand management facilitation ppt

• 1. Brand Management Facilitation1

2. Todays Presentation Definition Key terms in brand management The brand management model Sector overview Behavior of the model The dissertation model Q&A2 3. A Brand Marks what People Think and Feel It is a rational and emotional formula basedon the sum of trust, relevance, andsignificance that relates people to a firm, aproduct, or a service throughout their life.3 4. Market DynamicsBusinesses and markets in which brands playan important role are both highly complex: They are tightly coupled: there are lots of complex interactions, interventions based on a single action are unlikely to prove successful in the long term They behave counter-intuitively they can behave in the opposite manner to which one intends4 5. Market Dynamics cont. They exhibit trade-offs They are policy resistant attempting toinfluence the system in one direction willoften cause some reaction which minimizesthe impact of the original action And they are dynamic changes occur onmany different timescales 5 6. Brand ManagementSome Key Terms Brand Awareness Brand Loyalty Motivation Desire to Buy Brand Perceived Quality Satisfaction Negative Product Image Positive Product Quality Brand Equity6 7. The Dimensions in Brand Building Brand identity Brand awareness Familiarity and knowledge of the brand Consideration to evaluate the brand Purchase Brand loyalty (or brand equity) 7 8. A Managers Goal must be to Build Brand Equity A brand can only be strong if it has a strongsupply of loyal customers Brand equity therefore can be defined as ameasure of strength of consumers attachmentto a brand.8 9. Brand EquityBrand Name Industry Brand ValueBrand Value as($US m) a % of MarketCapitalisationCoca-ColaBeverages83,84559%MicrosoftSoftware 56,65421%IBMComputers43,78128%General Electric Diversified33,50210%Ford Autos33,19758%Disney Entertainment32,27561%IntelChips30,02121%McDonalds Fast Food26,23164%AT&T Telecom24,18124%Marlboro Tobacco21,04819%Source: Interbrand 1999, The World Biggest Brands 9 10. Purpose and Goal of the Model Brand equity is a complex system anddifficult to manage and understand. A simulation model will be used, to identifykey leverage points to understand thebehavior of the system, thus reduceuncertainty in decision making. 10 11. TheBrand ManagementModel 11 12. BrandManagementThe Brand- Effectiveness +A ConceptualizedAwareness/Effectiveness BCompetitionInfluences BSectorSector OverviewCompetitive InvestmentInfluencesKnowledgeInvestmenpressure +- + R Knowlege +is good+ BrandAwareness The BrandBrandAwareness/LoyaltyAwareness Sector+Attractiveness of+other brands RMotivation Its What theCustomer Wants- Desire to choose brand + - SnowballRBrand+loyaltyThe Brand +-Loyalty/Quality BrandSector loyalty +/- 12 Productattractiveness 13. The Brand Awareness/EffectivenessSector-Effectiveness+BCompetitionBInfluencesInvestment InfluencesCompetitive Investmen Knowledge pressure +-+ R Knowlege +is good + 13Brand 14. Vensim BrandAwareness/Effectiveness SectorAbove-the-line investment Loyalty factorNet effect of BAaFraction of potential BA reached Competitive AwarenessBelow-the-linepressuremultiplier investmentWbelo invBrand Awareness AwarenessDecrease inIncrease in brand investmentawareness awareness We promo Effect from investmentin Price PromotionPrice promotionForget impact investmenton awareness Consumerknowledgeabout brand W Forgetting rateKnowledge gainrelat Public relations Effect on gaining investment knowledge14 choice 16 Brand Loyalty 17. Vensim Brand Loyalty/QualitySector Actual productEffect of quality onqualitySatisfactionattractivenessPrice PQ multipliersRelativePrice Effect of price onPerceivedattractivenessAcceptable price Product QualityPQ net Pressure on PQincreaseProduct AttractivenessEffect of delivery delaydelay on attractiveness17 Acceptabledelivery delay 18. The BrandLoyalty/Quality Sector + - Brand loyalty +/- Productattractiveness R 18 19. The Bottom Line: Brand Equity Brand Equity 19 20. Model BehaviorBase Run100 Awareness100 Loyalty Investment: 70100 desire ATL: 0.71 Quality BTL: 0.1 PP: 0.1 PR: 0.10 Awareness0 Loyalty0 desire0.4 Quality 0612 18 24 30 36 42 48 Time (Month)Brand Awareness : baseAwarenessBrand Loyalty : baseLoyaltyDesire to buy brand : basedesirePerceived Product Quality : baseQuality 20 21. Model Behavior100 Awareness100 Loyalty100 desire0.8 Quality Investment: 35ATL: 0.7BTL: 0.150 Awareness PP: 0.050 Loyalty PR: 0.10 desire0.4 Quality 06 12 18 24 30 36 42 48Time (Month)Brand Awareness : base2AwarenessBrand Loyalty : base2LoyaltyDesire to buy brand : base2desirePerceived Product Quality : base2Quality 21 22. Weakness of the Model Does not consider people in the system Missing link to capture growth and decline ofmarket share Key leverage point: investment rather thanconsumers22 23. The new Approach: Brand Equity as Resource System InflowLoyal Customers 0 3 6 9 12Outflow 23 24. Objectives To gain insides in how to control a desiredlevel of loyal customers, thus supportresource allocation decisions of a firm To test and compare alternative strategies toimprove the management of brand equity24 25. What is the contribution to the body of knowledge?Theory: By creating a generic model to investigate the effect of resource allocation which influences the brand equity of a firmPraxis: Providing recommendations for improving brand strategies25 26. Causal Loop Diagram26 27. Stock and Flow Structure 27 28. R28