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! Week 8: Branding Dr Christopher Pokarier | EB202 Introduction to Business
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Week 8: Branding...Product planning, packaging, branding ! Pricing ! Advertising ! Distribution & Selling ! Public relations – not just with customers but all players in the business

Jul 26, 2020

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Page 1: Week 8: Branding...Product planning, packaging, branding ! Pricing ! Advertising ! Distribution & Selling ! Public relations – not just with customers but all players in the business

!Week8:BrandingDrChristopherPokarier|EB202IntroductiontoBusiness

Page 2: Week 8: Branding...Product planning, packaging, branding ! Pricing ! Advertising ! Distribution & Selling ! Public relations – not just with customers but all players in the business

Marketingintroduction:‘The4Ps’

Basicmarketingtheoryidentifies4elementsinthe‘marketingmix’:

! Product–what?

! Price-forhowmuch?

! Place–whereisitsold?

! Promotion–howisitsold?

Brandingisonepart&consequenceofthisdecisionset

Page 3: Week 8: Branding...Product planning, packaging, branding ! Pricing ! Advertising ! Distribution & Selling ! Public relations – not just with customers but all players in the business

!Brandsofferassurance+identity

Page 4: Week 8: Branding...Product planning, packaging, branding ! Pricing ! Advertising ! Distribution & Selling ! Public relations – not just with customers but all players in the business

Brandpower

! Brandssimplifyconsumerdecisions

! Theyreducesearch&decisiontimesinaneraofproductcomplexity,hugechoice,andinformationoverload

! Brandsshiftresponsibilityfrombuyers

! “Well,IboughttheToyotasodon’tblameme-Dear-thatwearebrokendowninthemiddleofnowhere..”

! Brandsenhancestatusoftheircustomers:BUTonlyamongstotherswhoalsovaluethatbrand!!

Page 5: Week 8: Branding...Product planning, packaging, branding ! Pricing ! Advertising ! Distribution & Selling ! Public relations – not just with customers but all players in the business

!EverythingisbrandedtodayAstrongbrandsupportshigherprices&addstothemarketpositionofrelatedproducts

Page 6: Week 8: Branding...Product planning, packaging, branding ! Pricing ! Advertising ! Distribution & Selling ! Public relations – not just with customers but all players in the business

!Brandsmayexpressvalueseg:Dior=style,elegance,creativity,exclusivity

Page 7: Week 8: Branding...Product planning, packaging, branding ! Pricing ! Advertising ! Distribution & Selling ! Public relations – not just with customers but all players in the business

Brandsascommunications

Brandscommunicatefocus&valuesto

! Customers

! Managersofthefirm

! Allemployees

! Suppliers

Brandsguidestrategicchoice&implementationofstrategy

[andstrategyiswhatyouDON’Tdo]

Page 8: Week 8: Branding...Product planning, packaging, branding ! Pricing ! Advertising ! Distribution & Selling ! Public relations – not just with customers but all players in the business

!BrandsarecorefirmresourcesBrandpower(reputation)isusuallybuiltslowly+expensively+BUTdamagedeasily

Page 9: Week 8: Branding...Product planning, packaging, branding ! Pricing ! Advertising ! Distribution & Selling ! Public relations – not just with customers but all players in the business

Brandshavingpullingpower

! Strongbrandscreatedemandforaproduct

! Consumersdemandrenownedproductsfromretailers

! Brandstherefore‘pull’productthroughthesupplychainfromthemanufacturer,throughwholesalers&retailers

! Thisempowersthemanufacturer–increasingprofits

! Lessneedforanexpensivesalesteamorproductplacementstrategy(ie.Lessneedto‘push’aproduct)

Page 10: Week 8: Branding...Product planning, packaging, branding ! Pricing ! Advertising ! Distribution & Selling ! Public relations – not just with customers but all players in the business

!CommunicatingvalueBrands&advertisingcommunicateavaluepropositiontoatargetedmarket

Page 11: Week 8: Branding...Product planning, packaging, branding ! Pricing ! Advertising ! Distribution & Selling ! Public relations – not just with customers but all players in the business

Basicstrategicchoice

Ingeneral,firmshaveachoicebetween

! Priceleadership:Sellstandardgoodsatlowpricesinlargevolumes

! Productdifferentiation:Selldistinctivegoodsathigherpricesbuttypicallyinsmallervolumes

Veryfewfirmscanachievepriceleadership&differentiationacrosstheirproductrange

Page 12: Week 8: Branding...Product planning, packaging, branding ! Pricing ! Advertising ! Distribution & Selling ! Public relations – not just with customers but all players in the business

!AbusinessnamebecomesabrandIntraditionalindustriesthefirm’snameisthebrand&isguarded

Page 13: Week 8: Branding...Product planning, packaging, branding ! Pricing ! Advertising ! Distribution & Selling ! Public relations – not just with customers but all players in the business

!Brands&storiesoforigin&placeSuchstoriesgiveafirmfocus&communicatevaluestocustomers

Page 14: Week 8: Branding...Product planning, packaging, branding ! Pricing ! Advertising ! Distribution & Selling ! Public relations – not just with customers but all players in the business

Brandportfolios

! Largeenterprisesincreasinglyhaveaportfolioofbrands

! Thatis,multiplebrandsownedbyonefirm

! Multinationalenterprisesmaytakeoverstronglocalbrandsabroad&bringtheirknow-howtothem

! Eg.Campbell’sSoupownsArnott’sBiscuits

! Luxotticaowns/makesmanybrandedsunglasses..eg.Persol,RayBan,Oakley&licensebrands(Prada,Chanel,D&G,MiuMiu,PaulSmith,Tiffany,Versace,RalphLauren,Ferragamo,etcetc)

! FastRetailinghasUniqlo,Theory,HelmutLangetc

Page 15: Week 8: Branding...Product planning, packaging, branding ! Pricing ! Advertising ! Distribution & Selling ! Public relations – not just with customers but all players in the business

Segmentation

Firmsidentifyandrespondtodifferenceswithinageneralmarket(marketsegments)foraparticularproductbasedon

! Pricesensitiveness&orientationtoquality

! Demandcharacteristics(reflectingtastes,values,generationsetc

! Differingvaluesplacedonthesamebrand

! Underonebrand,segmentationisachievedvia‘versioning’orcontrollingdistributionchannels

Page 16: Week 8: Branding...Product planning, packaging, branding ! Pricing ! Advertising ! Distribution & Selling ! Public relations – not just with customers but all players in the business

Positioning

Strategicproductpositioninginthemarket

! Strategicchoicesoverbranding,pricingandproductmixarethenmadetotargeteachsegmentappropriatelyandmaximiseprofitability

! Oftenfirmschoosenottocompeteinsomesegments–forvariousreasonsincluding…

! Intensecompetitionandlowprofitmargins,technologicalprowess,premiumpositioningofbrand

Page 17: Week 8: Branding...Product planning, packaging, branding ! Pricing ! Advertising ! Distribution & Selling ! Public relations – not just with customers but all players in the business

Findasegmentormakeyourown

! Understandyourmarketposition

! Findasegmentinwhichyoucanofferadistinctivevalueproposition

! FindacategorytobeNUMBERONEin(thatisvaluedbycustomers)

! Makecustomersvaluethatcategorymorehighlyvaluedbycustomers

! BUTunderstandthatyoucan’tchangecustomers’minds

Page 18: Week 8: Branding...Product planning, packaging, branding ! Pricing ! Advertising ! Distribution & Selling ! Public relations – not just with customers but all players in the business

!BrandpreservationConstantdangerof‘success’bringingbranddilution:especiallyforexclusiveproducts

Page 19: Week 8: Branding...Product planning, packaging, branding ! Pricing ! Advertising ! Distribution & Selling ! Public relations – not just with customers but all players in the business

Brandextension

! AstheLuxotticalicensedbrandscaseshows,thereismuchscopetoextendastrongbrandintonewproductlines

! Eg.fashion,accessories,perfumes,watches,homewares,evenhotels(eg.VersaceResorts)

! Dangerofbranddilutionwithover-extension

! Challengingstrategicandtacticalissuesarise

! Furthercomplicatedbylicensingarrangements

Page 20: Week 8: Branding...Product planning, packaging, branding ! Pricing ! Advertising ! Distribution & Selling ! Public relations – not just with customers but all players in the business

!BrandcreationInitialnamingdecisionscreatelegaciesandlock-in

Page 21: Week 8: Branding...Product planning, packaging, branding ! Pricing ! Advertising ! Distribution & Selling ! Public relations – not just with customers but all players in the business

Whatismarketing?

Marketingisaverybroadconceptthatincludes

! Assessing[future]consumerdemand

! Productplanning,packaging,branding

! Pricing

! Advertising

! Distribution&Selling

! Publicrelations–notjustwithcustomersbutallplayersinthebusinessenvironment–investors,governments,thepublic-at-large

! Marketingisintegraltocorporatestrategy

Page 22: Week 8: Branding...Product planning, packaging, branding ! Pricing ! Advertising ! Distribution & Selling ! Public relations – not just with customers but all players in the business

!DistributionStrongbrandsstillneedtobeaccessibletocustomerswhentheyneedtheproduct

Page 23: Week 8: Branding...Product planning, packaging, branding ! Pricing ! Advertising ! Distribution & Selling ! Public relations – not just with customers but all players in the business

Advertising

! Bought(paid)mediaspace/attention

! Customersmustfind/knowyourproduct

! Massmarketingformassconsumergoods:expensivebutcanpullproductthroughdistributionchains

! Advertisingisbecomemorefocused&varied(eg.internet)

! Targetedmarketing:focusesoncorelikelycustomers

! Viralmarketing:usestargetaudiencetospreadamessage

Page 24: Week 8: Branding...Product planning, packaging, branding ! Pricing ! Advertising ! Distribution & Selling ! Public relations – not just with customers but all players in the business

Publicrelations

! Earnedmediaspace/attention

! Promotesthefirminadditiontobrands

! Crisiscommunications:respondsstrategically&tacticallytoaproblemwiththecompany

! Investorrelations:communicatestoinvestors

! Governmentrelations:dealswithregulators&policymakers

! Rivalsforpublicattentionareeverywhere–notjustrivalfirms

Page 25: Week 8: Branding...Product planning, packaging, branding ! Pricing ! Advertising ! Distribution & Selling ! Public relations – not just with customers but all players in the business

!UbiquitousbrandingBrandspatternurbanandvirtualspace:peoplereflect&evenbecomebrands