06 building successful brands

Doyle and Stern, Marketing Management and Strategy, 4th Edition © Pearson Education Limited 2006

Slide 6.1

Brand Management

Ian McPhee

Marketing ManagementSession 7

Doyle and Stern, Marketing Management and Strategy, 4th Edition © Pearson Education Limited 2006

Slide 6.2

The world’s most powerful brands 2004

Doyle and Stern, Marketing Management and Strategy, 4th Edition © Pearson Education Limited 2006

Slide 6.3

Change in brand values since 1999

Doyle and Stern, Marketing Management and Strategy, 4th Edition © Pearson Education Limited 2006

Slide 6.4

Brand Building at Different Levels

You can have:• Company brands – Philips, Virgin, Cadbury• Individual brand names – eg Unilever and P&G concentrate on individual brand identities: Fairy, Persil, Cif, Comfort, Ariel etc• Company & brand – eg Kellog’s Corn Flakes• Range branding – eg Matsushita groups its products under separate range names: National, Panasonic, Technics & Quasar

Doyle and Stern, Marketing Management and Strategy, 4th Edition © Pearson Education Limited 2006

Slide 6.5

What’s in a Brand Name?

• Buying decisions are influenced by brand values additional to real performance• e.g. Pepsi v. Coke• e.g. Peugeot, Citroen & Fiat all share production facilities• The power of the brand is more powerful than mfg differences or quality

Doyle and Stern, Marketing Management and Strategy, 4th Edition © Pearson Education Limited 2006

Slide 6.6

How added values occur

• Experience of use e.g. British car mfrs• User associations: images of the type of people who use certain products• Belief in efficacy: pharmaceuticals, cosmetics• Brand appearance: the design can affect preference• Maker’s name & reputation e.g. Sony, HP offer confidence & incentive to trial

Doyle and Stern, Marketing Management and Strategy, 4th Edition © Pearson Education Limited 2006

Slide 6.7

Measuring & Planning Added Values

• Research methods that gain understanding of how consumers perceive brands:• Free association• Picture impressions• If the brand were a person• Animals, activities & objects• What is the brand user like?• Brand similarities & differences

Doyle and Stern, Marketing Management and Strategy, 4th Edition © Pearson Education Limited 2006

Slide 6.8

Brand Positioning Strategy

A plan of what image should be cultivated• Attitude research• Competitor research• Gap analysis• Concept testing

Doyle and Stern, Marketing Management and Strategy, 4th Edition © Pearson Education Limited 2006

Slide 6.9

The brand building blocks

Doyle and Stern, Marketing Management and Strategy, 4th Edition © Pearson Education Limited 2006

Slide 6.10

First Direct and Northern Rock brands

Doyle and Stern, Marketing Management and Strategy, 4th Edition © Pearson Education Limited 2006

Slide 6.11

First Direct and Northern Rock brands

Doyle and Stern, Marketing Management and Strategy, 4th Edition © Pearson Education Limited 2006

Slide 6.12

What is

a brand?

Doyle and Stern, Marketing Management and Strategy, 4th Edition © Pearson Education Limited 2006

Slide 6.13

Achieving Potential

• The potential brand is an invisible ring around the product. • A brand has achieved its potential when customers prefer it even when substitutes are substantially cheaper.• Quality: the number one determinant• Being first•Unique positioning concept•Strong communications programme•Time and consistency

Doyle and Stern, Marketing Management and Strategy, 4th Edition © Pearson Education Limited 2006

Slide 6.14

Brand building over time

Doyle and Stern, Marketing Management and Strategy, 4th Edition © Pearson Education Limited 2006

Slide 6.15

The relationship between market share and profitability

Doyle and Stern, Marketing Management and Strategy, 4th Edition © Pearson Education Limited 2006

Slide 6.16

Market share rank and return on sales for grocery brands

Doyle and Stern, Marketing Management and Strategy, 4th Edition © Pearson Education Limited 2006

Slide 6.17

Brand leaders: leverage on profitability

Doyle and Stern, Marketing Management and Strategy, 4th Edition © Pearson Education Limited 2006

Slide 6.18

Brand extension strategies

Doyle and Stern, Marketing Management and Strategy, 4th Edition © Pearson Education Limited 2006

Slide 6.19

Improving brand performance

Doyle and Stern, Marketing Management and Strategy, 4th Edition © Pearson Education Limited 2006

Slide 6.20

Buying versus

building

brands

Doyle and Stern, Marketing Management and Strategy, 4th Edition © Pearson Education Limited 2006

Slide 6.21

Innovation & NPD

Doyle and Stern, Marketing Management and Strategy, 4th Edition © Pearson Education Limited 2006

Slide 6.22

Types of new product

Doyle and Stern, Marketing Management and Strategy, 4th Edition © Pearson Education Limited 2006

Slide 6.23

Evolution of competitive strategy

Doyle and Stern, Marketing Management and Strategy, 4th Edition © Pearson Education Limited 2006

Slide 6.24

Competitive strategies in the watch industry

Doyle and Stern, Marketing Management and Strategy, 4th Edition © Pearson Education Limited 2006

Slide 6.25

Impact of development problems on profitability

Doyle and Stern, Marketing Management and Strategy, 4th Edition © Pearson Education Limited 2006

Slide 6.26

Time and resources to complete a typical

new product project

Doyle and Stern, Marketing Management and Strategy, 4th Edition © Pearson Education Limited 2006

Slide 6.27

The New Product

Development

Process

Doyle and Stern, Marketing Management and Strategy, 4th Edition © Pearson Education Limited 2006

Slide 6.28

New product idea screening form

Doyle and Stern, Marketing Management and Strategy, 4th Edition © Pearson Education Limited 2006

Slide 6.29

Product

adoption

process and

communication

tools

Doyle and Stern, Marketing Management and Strategy, 4th Edition © Pearson Education Limited 2006

Slide 6.30

Adopter categories in the diffusion process