1 STRATEGIC BRAND MANAGEMENT STRATEGIC BRAND MANAGEMENT BUILDING, MEASURING, AND MANAGING BUILDING, MEASURING, AND MANAGING BRAND EQUITY BRAND EQUITY Chapter 1 Chapter 1 Brands & Brand Management Brands & Brand Management Kevin Lane Keller Kevin Lane Keller Amos Tuck School of Business Amos Tuck School of Business Dartmouth College Dartmouth College Slides re-arranged by Polboon N.
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Kevin Lane KellerKevin Lane KellerAmos Tuck School of BusinessAmos Tuck School of Business
Dartmouth CollegeDartmouth College
Slides re-arranged by Polboon N.
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Product VS BrandProduct VS Brand
A A productproduct is anything that can be offered to is anything that can be offered to the market for attention , acquisition, use, the market for attention , acquisition, use, or consumption that might satisfy a need or consumption that might satisfy a need or want. Thus, a product can be a physical or want. Thus, a product can be a physical good, service, organization, place or ideas. good, service, organization, place or ideas.
A A brandbrand is a product but adds other is a product but adds other dimensions that differentiate it in some dimensions that differentiate it in some way from other products designed to way from other products designed to satisfy the same need. satisfy the same need.
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What is a Brand?What is a Brand?
A A brandbrand is a name, term, sign, symbol, is a name, term, sign, symbol, or design which is intended to or design which is intended to identifyidentify the goods or services of one seller or the goods or services of one seller or group of sellers and to group of sellers and to differentiatedifferentiate them from those of competitors.them from those of competitors.
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Examples of brands of computer products
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Brand ElementsBrand Elements
A variety of brand elements can be chosen that A variety of brand elements can be chosen that inherently enhance brand awareness or facilitate inherently enhance brand awareness or facilitate the formation of strong, favorable, and unique the formation of strong, favorable, and unique brand associations:brand associations:
Brand NameBrand Name LogoLogo SymbolSymbol Character Character PackagingPackaging SloganSlogan
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Why do brand matter?Why do brand matter?To consumersTo consumers
Identification of sources of productIdentification of sources of product Assignment of responsibility to product Assignment of responsibility to product
maker.maker. Risk reducerRisk reducer Search cost reducerSearch cost reducer Symbolic deviceSymbolic device Signal of qualitySignal of quality Promise or bond with product or makerPromise or bond with product or maker
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Why do brand matter?Why do brand matter?To ManufacturerTo Manufacturer
Means of identification to simplifying Means of identification to simplifying handling and tracing.handling and tracing.
Means of legally protecting unique feature.Means of legally protecting unique feature. Signal of qualitySignal of quality Means of endowing products with unique Means of endowing products with unique
associations.associations. Sources of competitive advantageSources of competitive advantage Sources of financial returns.Sources of financial returns.
Knowledgeable consumers.Knowledgeable consumers. Brand ProliferationBrand Proliferation Media FragmentationMedia Fragmentation Increased competitionIncreased competition Increased costs of introducing new Increased costs of introducing new
product or supporting existing product.product or supporting existing product. Greater accountabilityGreater accountability
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Brand Elements Choice Criteria:Brand Elements Choice Criteria:General ConsiderationsGeneral Considerations
Keys to enduring Brand Keys to enduring Brand LeadershipLeadership
Vision of mass marketVision of mass market Managerial persistenceManagerial persistence Financial commitmentFinancial commitment Relentless innovationRelentless innovation Asset LeverageAsset Leverage
4.4. Growing and sustaining brand Growing and sustaining brand equityequity
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Strategic Brand Management ProcessStrategic Brand Management Process
Mental mapsMental mapsCompetitive frame of referenceCompetitive frame of referencePoints-of-parity and points-of-differencePoints-of-parity and points-of-differenceCore brand valuesCore brand valuesBrand mantraBrand mantra
Mixing and matching of brand elementsMixing and matching of brand elementsIntegrating brand marketing activitiesIntegrating brand marketing activitiesLeveraging of secondary associationsLeveraging of secondary associations
Brand Value ChainBrand Value ChainBrand auditsBrand auditsBrand trackingBrand trackingBrand equity management systemBrand equity management system
Brand-product matrixBrand-product matrixBrand portfolios and hierarchiesBrand portfolios and hierarchiesBrand expansion strategiesBrand expansion strategiesBrand reinforcement and revitalizationBrand reinforcement and revitalization
KEY CONCEPTSKEY CONCEPTSSTEPSSTEPS
Grow and SustainGrow and SustainBrand EquityBrand Equity
Identify and EstablishIdentify and EstablishBrand Positioning and ValuesBrand Positioning and Values
Plan and Implement Plan and Implement Brand Marketing ProgramsBrand Marketing Programs
Measure and InterpretMeasure and InterpretBrand PerformanceBrand Performance
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Brand VisionBrand VisionCore brand value & PositioningCore brand value & Positioning
Brand visionBrand vision What the brand should What the brand should stand for in the future. stand for in the future.
Core brand valuesCore brand values set of abstract set of abstract associations that characterize a brand. associations that characterize a brand.
A brand mantra is a short 3-5 words A brand mantra is a short 3-5 words expression of the most important aspect expression of the most important aspect of a brand and its core brand values. of a brand and its core brand values.
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Brand VisionBrand VisionCore brand value & PositioningCore brand value & Positioning
Brand PositioningBrand Positioning the act of designing the act of designing the company’s offer and image so that it the company’s offer and image so that it occupies a distinct and values placed in occupies a distinct and values placed in the target consumer’s mind. the target consumer’s mind.
The goal is to locate the brand in the minds The goal is to locate the brand in the minds of consumers.of consumers.
Competitive brand positioning Competitive brand positioning creating creating brand superiority in the minds of brand superiority in the minds of consumers. consumers.
Brand PositioningBrand Positioning a specification of a specification of brand core values and brand mantra. brand core values and brand mantra.
For branding strategies to be For branding strategies to be successful, consumers must be successful, consumers must be convinced that there are meaningful convinced that there are meaningful differences among brands in the differences among brands in the product or service category.product or service category.
Consumer must Consumer must notnot think that all think that all brands in the category are the same.brands in the category are the same.
Topics of discussion Topics of discussion Assignment: Students bring a product or a brochure of product Assignment: Students bring a product or a brochure of product
or service to discuss in classor service to discuss in class..
1.1. What product / service ? What brand?What product / service ? What brand?2.2. What product category? What market?What product category? What market?3.3. Who are in the market? Who are in the market? 4.4. What do you know about the category?What do you know about the category?5.5. What could be the consumer expectation from this What could be the consumer expectation from this
category?category?6.6. What do you know about the chosen product/service?What do you know about the chosen product/service?7.7. What you should know about the product/service if you are What you should know about the product/service if you are
a brand / product manager? a brand / product manager? 8.8. What is the product benefit?What is the product benefit?9.9. What is the consumer benefit of the product?What is the consumer benefit of the product?10.10. How does this brand different from others?How does this brand different from others?11.11. What it the brand mantra? Slogan? Is it convincing? What it the brand mantra? Slogan? Is it convincing?
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Next ClassNext ClassSession 3: 17 November 2550Session 3: 17 November 2550
What do Brand Manager Actually What do Brand Manager Actually do? do?
3. Be prepared to discuss market analysis of a 3. Be prepared to discuss market analysis of a product market in class.product market in class.
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Individual Assignment Individual Assignment
Choose 1 of the following topics, do some Choose 1 of the following topics, do some studystudy from books, internet, market survey, talking to from books, internet, market survey, talking to consumers, talking to sellers, etc. and consumers, talking to sellers, etc. and writewrite a a short report, 4 to 5 pages. Please do not copy short report, 4 to 5 pages. Please do not copy each other.each other.
TOPICSTOPICS Product X: Initial Market & Product InformationProduct X: Initial Market & Product Information Consumers’ Information and the consumer Consumers’ Information and the consumer
insights – Product Category Xinsights – Product Category X
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Individual Assignment Individual Assignment
Product X: Initial Market and Product Information Product X: Initial Market and Product Information Type of product / serviceType of product / service Size of market and potential ( if information is Size of market and potential ( if information is
available)available) Key Players in the market Key Players in the market Leading BrandLeading Brand Market SegmentationMarket Segmentation Distribution structure Distribution structure Market influencers Market influencers
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Individual Assignment Individual Assignment
Consumers’ Information and the consumer Consumers’ Information and the consumer insights – Product Category Xinsights – Product Category X Type of product / serviceType of product / service The end-consumers or end-users The end-consumers or end-users The purchasers & the influencersThe purchasers & the influencers The end-consumer's needs, desires, preferences. The end-consumer's needs, desires, preferences. The general product expectation.The general product expectation. The potential ‘added-value’ related to the productThe potential ‘added-value’ related to the product Use and usage behavior Use and usage behavior What else should we know about the consumers of the What else should we know about the consumers of the
studied products. studied products.
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Group Work Assignment Group Work Assignment
1 Product and pricing Strategy of a 1 Product and pricing Strategy of a food product Xfood product X
2 Product and pricing Strategy of a 2 Product and pricing Strategy of a consumer product Xconsumer product X
3 Product and pricing strategy of a 3 Product and pricing strategy of a Food orFood or consumer consumer service business Xservice business X
4 A 4 A Market AnalysisMarket Analysis of Product Category X. of Product Category X.
5 A 5 A SWOT analysisSWOT analysis of a consumer product X of a consumer product X
Explain the process how the assignment is done. (20%)Explain the process how the assignment is done. (20%)
Report maximum of 8 pages (50%)Report maximum of 8 pages (50%)
Presentation 15 minutes for each group (30%)Presentation 15 minutes for each group (30%)
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Mid-Term ExamMid-Term ExamBe prepare to express your knowledge about Be prepare to express your knowledge about Basic Marketing PrinciplesBasic Marketing Principles Product Management conceptProduct Management concept Brand, Brand Equity, Brand Management Brand, Brand Equity, Brand Management
conceptconcept Market AnalysisMarket Analysis
Midterm exam period 14-24 December Midterm exam period 14-24 December 25502550