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BRAND StrategiesBRAND Strategies

Introduction to Marketing Introduction to Marketing ManagementManagementCSUNCSUN

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What is a BRAND?

• "A brand is a name, symbol, design, or mark that enhances the value of a product beyond its functional purpose" (Farquhar 1989).

• "For many businesses the brand name and what it represents are its most important asset--the basis of competitive advantage and of future earnings streams” (Aaker 1991).

• Coca-Cola was estimated to be worth $36 billion• Budweiser worth $9.7 billion• Nike's worth was estimated at $3.6 billion• Barbie's value was judged to be $1.7 billion.

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Branding Definitions

• Brand: any name, term, symbol, sign, design, or unifying combination of these that identifies one product from another competitive product

• Brand Name: the verbal part of the brand• Logo: a brand name or company name written in a distinctive way

(short for “logotype”) • Trademark: a legally protected brand name or brand mark. A

registered trademark gives a marketer proprietary rights to a symbol or name

• Service Mark: provides the same identifying function for services that a trademark provides for goods. It also can be legally protected by registration

• Generic Names: describe a product or an item that is part of our standard vocabulary

Product Strategies

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Advantagesof

Brand Names

BrandEquity

Advantagesof

Brand Names

BrandEquity

Strong Brand Association

Strong Brand Association

AttributesAttributes

Quality & ValueQuality & ValueConsistencyConsistency

IdentificationIdentification

Perceived QualityPerceived QualityName AwarenessName Awareness

High Brand Loyalty

High Brand Loyalty

Purpose of Branding

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BRAND AWARENESS

BRAND ASSOCIATIONS BRAND QUALITY

BRAND LOYALTY

• Anchor to Which Other Associations Can Be Attached

• Familiarity Liking

• Signal of Commitment

• Brand to Be Considered

• Help Process & Retrieve Information

• Differentiate/ Position

• Reason-to-Buy

• Create Positive Attitudes/ Feelings

• Potential for Extensions

• Reason-to-Buy

• Differentiation/ Position

• Price

• Channel Member Interest

• Extensions

• Reduced Marketing Costs Trade leverage

• Attracting New Customers (create Awareness & Reassurance)

• Time to Respond to Competitive Threats

Managing and Building a Brand Knowledge

Recall versus Recognition

Perceived Meanings

Brand can possess an appealing image that consumers value directly

Expected Performance

Price Sensitivity & Purchase rate

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Brand Awareness

• Recall– e.g., first brand that comes to mind in x category

• Recognition– e.g., Rate your level of familiarity of each brand in x

category

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Brand Associations:e.g., Bose

Brand Attributes

(e.g., electronic expertise

Brand Personality

(e.g., lifestyle,

elegance)

Functional Benefits

Symbolic Benefits

Emotional Benefits

BrandIdentity

How to Create Strong Brands

Marketing Programs

Product DistributionPrice Communica.

BrandLoyalty

Brand Awareness

Brand Associations

PerceivedQuality

OtherProprietary

Assets

Loyalty:

Resistance to competition

Larger margins

More elastic for price decreases

Less elastic for price increases

Communications efficiency/effective

Licensing opps.

Brand extensions

Brand Elements

Name SymbolLogo CharacterPkg. Slogan

Secondary Associations

Company EndorserCompany of origin Events

Brand Equity

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Five-Stage Consumer Buyer Decision Process

ProblemProblemrecognitionrecognition

InformationInformationsearchsearch

Evaluation ofEvaluation ofalternativesalternatives

PurchasePurchasedecisiondecision

PostpurchasePostpurchasebehaviorbehavior

Buyer behaviorBuyer behavior

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ITEMSNEED

RECOGNITIONINFORMATION

SEARCHEVALUATION OF ALTERNATIVES

EQUITY

Brand Attitude

learn from competitive

brands

FormConsideration set

Develop Brand beliefs for each brand/attribute (brand

positioning)

Brand beliefs make up the Brand Image

Brand beliefs varies with experience and the effect of

selective perception, distortion,

and retention

STRATEGY

•Keep the brand newsworthy

•Build Familiarity

Brand name conveying a product benefit = higher recall (e.g., Lean Cuisine

– low calorie food).

•Develop a plan to get into prospect’s

consideration set

•Identify competitors in the consumer’s

choice set - to plan its competitive appeals

•Alter beliefs about the brand (psychological repositioning)

•Alter beliefs about the competitors’brands:

competitive depositioning (e.g., running a comparison ad)

•Alter the importance weights•Call attention to neglected

attributes•Shift the buyer’s ideals

Brand Awareness

advertising exposure(1) recognise the brand(2) recall the brand with cues(3) place the brand in a consideration set

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ITEMS PURCHASE DECISION POST-PURCHASE

BEHAVIOR

EQUITY

Based on Brand Preference

Brand preference varies with:(1) attitudes of others(2) motivation to comply with other person’s desires

Brand Loyalty

Enhanced brand loyalty to:• buy time to respond when competitors innovate• reduce cognitive dissonance 

STRATEGY

• Increase perceived Brand Quality and Associations

• Generate platforms to build on brand reputation

• Reduce perceived risk (warranty, professional referrals, etc.)

•Make product claims that faithfully represent the product’s likely

performance (satisfaction)

•Generate brand heritage: connections between products and consumers

become part of the social and cultural fabric (e.g., Santa Claus and Coca-Cola,

De Beers & diamonds and marriage, champagne and celebrations)

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Implications of Brand Equity

Provides Value to Customers by Enhancing

Customer’s:

• Interpretation/Processing of Information

• Confidence in the Purchase Decision

• Use Satisfaction

Provides Value to Firms by Enhancing:

• Efficiency and Effectiveness of Marketing Programs

• Repeat Purchase

• Prices/Margins

• Trade Leverage

• Competitive Advantage

• Product and Market Extensions

• Bargaining Power

• New Product Launch

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Brand StrategyLine Extensions

Brand ExtensionsMultibrandsNew Brands

Brand StrategyLine Extensions

Brand ExtensionsMultibrandsNew Brands

Brand SponsorManufacturer’s Brand

Private BrandLicensed Brand

Co-branding

Brand SponsorManufacturer’s Brand

Private BrandLicensed Brand

Co-branding

Brand Name SelectionSelectionProtection

Brand Name SelectionSelectionProtection

Major Branding Decisions

A five-step process:

(1) setting branding objectives

(2) creating a list of candidate brand names

(3) evaluating prospective brand names

(4) choosing the best brand names

(5) applying for registration

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Types of Brands

Manufacturer’s BrandsManufacturer’s Brands

Distributor’s or Private BrandsDistributor’s or Private Brands

Generic ProductsGeneric Products

Name is owned and advertised by the manufacturer

Name is owned and advertised by the manufacturer

Black & Black & Decker toolsDecker tools

Whirpool Whirpool AppliancesAppliances

Name is owned and advertised by intermediary

Name is owned and advertised by intermediary

Craftsman Craftsman ToolsTools

VONS VONS products products

“No-Name”product in plain package with stark lettering

“No-Name”product in plain package with stark lettering

Dog Dog Food Food

Product Strategies

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Strategic Choices of Brand Name

Three brand name choices :

A. B. C.family branding individual branding combinations

- less expensive - more expensive VW BeetleVW Beetle

- less effective - can be very effective

- PhilipsPhilips - OMO POWEROMO POWER

               

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How Do You Build a Brand*

Knowledge Intimate understanding of

the brand and what it stands for

EsteemRegard for the brand

RelevancePersonal appropriateness of the brand

DifferentiationPerceived uniquenessof the brand

*Young & RubicamBrand Asset

ValuatorTM Model

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Differentiation Insufficient

• Differentiation yields brand’s margin opportunity

• Relevance yields usage opportunity (penetration)

• The differentiation must be relevant to create a strong brand

Brand Strength

Differentiation Relevance

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Esteem & Knowledge = Brand Stature

• Esteem– Related to perceptions of “high quality” and

“increasing popularity”

• Knowledge– The successful outcome or culmination of brand

building

– Achieved/earned, not bought

Brand Stature

Esteem Knowledge

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Dimensions of Brand Personality

The set of human characteristics associated with a brand. It enables a customer to express his or her own self, or

ideal self, on specific dimensions of the self through the use of the brand

SinceritySincerity ExcitementExcitement CompetenceCompetence SophisticationSophistication Ruggedness

Down-to Down-to earthearth

HonestHonest

WholesomeWholesome

CheerfulCheerful

DaringDaring

SpiritedSpirited

ImaginativeImaginative

Up-to-dateUp-to-date

ReliableReliable

IntelligentIntelligent

SuccessfulSuccessful

Upper classUpper class

CharmingCharming

Outdoorsy

Tough

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Line ExtensionDannon Yogurt Flavors

MultibrandsSeiko Pulsar

Brand ExtensionBarbie Electronics

New BrandsToyota & LexusB

rand

Nam

e

Existing New

Product Category

Existing

New

Four Brand Strategies

+ Co-Branding = brands bearing 2 or more brand names

BMW + Michelin or Intel + Compaq