©2005 pearson education canada inc.3-1 chapter 3 branding strategy

©2005 Pearson Education Canada Inc. 3-1

Chapter 3Branding Strategy


The Brand

“The sum of all characteristics, tangible and intangible, that make the offer unique.”

Brand Name Coca-Cola

Brand Logo Bottle Design and Red Cap

Trademark ™ Legally Protected Marks

Brands and organizations spend considerable sums telling customers what they stand for.


Views on Brands

“A name, logo, or symbol that evokes in customers a perception of added value for which they will pay a premium price.”

John Torella, J.C. Winters Group, Toronto

“A product with a personality.”

Chris Staples, Rethink, Vancouver

Marketing communications in any form has an impact on customers’ perceptions.


Benefits of Branding

For customers a brand offers:

1. A desired level of quality consistently

2. Psychological rewards from ownership

3. A means of distinguishing one brand from another

The brand image helps crate loyalty.


Benefits of Branding

For the company branding offers:

1. A means of communicating features and benefits

2. An opportunity to create and sustain an image

3. Customer satisfaction and repeat purchase opportunity


Brand Loyalty

“The degree of consumer attachment to a brand.”

RecognitionRecognition

PreferencePreference

InsistenceInsistence

Awareness of name, benefit and package

Is useful, consumer will buy if available

Will search for; must have


Brand Equity

The value of a brand in its holistic sense to its owners as a corporate asset. Brands have value.

Equity is derived from:

• Effective marketing strategies

• A brand’s status in the marketplace

• A brand’s position among customers


The Top 10 Global Brands

1. Coca-Cola $70.42. Microsoft $65.13. IBM $51.84. GE $42.35. Intel $31.16. Nokia $29.97. Disney $28.08. McDonald’s $24.79. Marlboro $22.210. Mercedes $21.4

1. Coca-Cola $70.42. Microsoft $65.13. IBM $51.84. GE $42.35. Intel $31.16. Nokia $29.97. Disney $28.08. McDonald’s $24.79. Marlboro $22.210. Mercedes $21.4

The highest ranking Canadian brand is Bombardier but it is not in the top 100 yet.

Source: Globe and Mail, July 25, 2003.


Brand Building

1. Identify Brand Values and Positioning Strategy1. Identify Brand Values and Positioning Strategy

2. Plan and Implement the Marketing Program2. Plan and Implement the Marketing Program

3. Measure and Evaluate Brand Performance3. Measure and Evaluate Brand Performance

4. Build Brand Loyalty and Brand Equity4. Build Brand Loyalty and Brand Equity


Brand Positioning

“The selling concept that motivates purchase, or the image that marketers desire a brand to have in the minds of consumers.”

A good positioning strategy clearly differentiates a brand from all competing brands.


Positioning Strategy Statements

A good positioning strategy statement is:

• Clear• Concise• Uncomplicated• Addresses target needs• Communicates a key benefit


Sample Positioning Statement

“To reinforce our position in the credit card market, and to establish it as the preferred choice for all future purchases.”

VISAAll you need


The Importance of Positioning

MarketAnalysis

MarketAnalysis

Target MarketAnalysis

Target MarketAnalysis

Competitor Analysis

Competitor Analysis

Positioning Strategy

Positioning Strategy

ProductStrategyProductStrategy

PriceStrategy

PriceStrategy

IMCStrategy

IMCStrategy

DistributionStrategy

DistributionStrategy


Positioning Strategies

• Product Differentiation

• Brand Leadership

• Head-On

• Innovation

• Price (Value)

• Channel Advantage

• Image (Lifestyle)


Branding and IMC

There are two key decision areas:

1. Determining the appropriate brand elements to focus on (names, packaging, symbols and characters).

2. Devising an effective marketing communications strategy to communicate the brand’s values and positioning strategy.


Packaging and Brand Image

A good package design helps build a brand.

1. The “look” of a package must be instilled in the customer’s mind.

2. A package can differentiate one brand from another.

3. Familiarity with a package creates trust with customers.

4. New packages create new products (product forms).


Roles of Packaging

A good package serves three primary functions:

1. Protect the product

2. Market the product

3. Provide convenience to distributors and consumers


Branding by Design

Shopping goods and durable goods rely more on “style” to create and sustain an image.

1. Lifestyle characteristics now play a key role in design.

2. Goods are periodically redesigned to present a contemporary image.

3. Re-branding strategies require intensive marketing communications to identify changes.

©2005 pearson education canada inc.3-1 chapter 3 branding strategy

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