branding and marketing promotion strategies

8/2/2019 Branding and Marketing Promotion Strategies

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BRANDING AND

MARKETING PROMOTIONSTRATEGIES (Part I)Core Text:

Strategic Brand Managementby

Kevin Lane Keller (2nd Edition)

Presented by:

PROF. HIMMAT ADISARE


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BRANDS AND BRANDMANAGEMENT

Ref: Chapter 1 of Core Text


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What is a Brand?

Definition: A brand is a product that

adds other dimensions that differentiatesit in some way from other products

designed to satisfy the same need.



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Why Do Brands Matter?

CONSUMERS:

Identification of

Source of Product

Assignment of

Responsibility to

Product Maker

Risk Reducer

Search cost Reducer

Promise, Bond, orPact with Maker of

Product

Symbolic Device

Signal of Quality



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Why Do Brands Matter? (2)

MANUFACTURERS:

Means of Identification

to Simplify Handling or

Tracing

Means of Legally

Protecting Unique

Features

Signal of Quality Level

to Satisfied Customers

Means of Endowing

Products with Unique

Associations

Source of Competitive

Advantage

Source of Financial

Returns



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Can Anything Be Branded?

Physical Goods

Services

Retailers and

Distributors

Online Products

and Services

People and

Organizations

Sports, Art and

Entertainment

Geographic

Locations

Ideas and Causes



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Branding Challenges And

OpportunitiesSavvy Customers

Brand Proliferation

Media Fragmentation

Increased Competition

Increased CostsGreater Accountability



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The Brand Equity Concept

Basic Principles of Branding and BrandEquity:

Differences in outcomes arise from the added valueendowed to a product as a result of past marketing

activity for the brand. This value for a brand can be created in many different

ways.

Brand equity provides a common denominator forinterpreting marketing strategies and assessing the value

of a brand.

There are many different ways in which the value of abrand can be manifested or exploited to benefit the firm.



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Strategic Brand ManagementProcess

Identifying and Establishing Brand

Positioning and Values

Planning and Implementing Brand

Marketing Programs

Measuring and Interpreting Brand

Performance

Growing and Sustaining Brand Equity



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CUSTOMER-BASED BRANDEQUITY


CHAPTER 2


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Sources Of Brand Equity

Brand Awareness

Consequences of

Brand AwarenessLearning advantages

Consideration

advantages

Choice Advantages

Establishing Brand

Awareness

Brand Image

Strength of Brand

Associations Favorability of

Brand Associations

Uniqueness of Brand

Associations



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Building A Strong Brand

The Four Steps of Brand Building:

1. Identity (Who are you?)

2. Meaning (What are you?)

3. Response (What about you?) 4. Relationship (What about you & me?)



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Customer-based Brand Equity

Pyramid

Resonance

Judgments Feelings

PerformanceImagery

Salience


Identity

Meaning

Response

Relationship


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Customer-based Brand Equity Pyramid (2)

Brand Salience: Thisrelates to aspects ofawareness of the brand

Brand Performance:

This relates to ways inwhich product/ servicemeets customers needs

Brand Imagery: Its howcustomers visualize a

brand abstractly, withno relevance to what thebrand actually does

Brand Judgments: Thecustomers personalopinions and evaluationswith regard to the brand

Brand Feelings: Thecustomers emotionalresponses and reactionswith respect to the brand

Brand Resonance: The

ultimate relationship &level of identificationthat the customer haswith the brand



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BRAND POSITIONING AND

VALUES

CHAPTER 3



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Identifying and EstablishingBrand Positioning

Basic Concepts Target Market

Nature of Competition

Points of Parity and Points of Difference



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Identifying and EstablishingBrand Positioning (2)

Basic Concepts: According to the CBBE

model, it is necessary to decide:-

1. Who the target consumer is 2. Who the main competitors are

3. How the brand is similar to these

competitors, and

4. How the brand is different from these

competitors



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Target Market:

Segmentation Bases:

a) Behavioral b) Demographicc) Psychographic d) Geographic

Segmentation Criteria:

a) Identifiability b) Size

c) Accessibility d) Responsiveness



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Nature of Competition:

Channels of Distribution

Competitors Resources

Competitors Capabilities

Competitors Likely Intentions

Other Competitive Factors (Porters 5-

Force Model refers)

Ref to Chapter 3 of Core Text


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Identifying and Establishing

Brand PositioningPoints of Parity and Points of Difference:

1. Points of Difference Associations 2. Points of Parity Associations

3. Points of Parity versus Points of

Difference



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Positioning Guidelines

1. Defining and Communicating the

Competitive Frame of Reference

2. Choosing Points of Parity and Points of

Difference

3. Establishing Points of Parity and

Points of Difference

4. Updating Positioning Over Time



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Positioning Guidelines (1)

Defining and Communicating theCompetitive Frame of Reference:

A starting point in defining a competitive frame

of reference for brand positioning is todetermine Category Membership. Membershipindicates the products or set of products withwhich a brand competes. Communicatingcategory membership informs the consumerabout the goals that they might achieve byusing a product or service.



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Choosing Points of Parity and Points ofDifference:

Points of Parity: These are driven by the needs ofcategory membership and the necessity of

negating competitors PODs. Points of Difference: These are based on the

following criteria:

1. Desirability:In terms ofa) Relevance

b) Distinctiveness, and c) Believablity2. Deliverability:In terms of a) Feasibility

b) Communicability, and c) Sustainability



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Establishing Points of Parity and Points ofDifference:

1. Separate the attributes: Launch two marketingcampaigns, each one devoted to a different brandattribute or benefit.

2. Leverage Equity of another Entity: Link thebrand with a well-liked celebrity, cause or event.

3. Redefine the Relationship: Use attitudechange strategies to convert negative perspectivesabout the brand to positive ones.



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Updating Positioning Over Time:

1. Laddering: This strategy is to deepenthe meaning of the brand to tap into core

brand values or other more abstractconsiderations.

2. Reacting: This could imply no reaction

to moderate or significant reactionsdepending on level of competitive threat.



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CHOOSING BRAND

ELEMENTS TO BUILDBRAND EQUITY

CHAPTER 4



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Criteria for Choosing BrandElements

1. Memorability

2. Meaningfulness

3. Likability

4. Transferability

5. Adaptability

6. Protectability



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Options and Tactics forBrand Elements

1. Brand Names

2. URLs (Uniform Resource Locators)

3. Logos and Symbols4. Characters

5. Slogans

6. Jingles

7. Packaging



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DESIGNING MARKETING

PROGRAMS TO BUILDBRAND EQUITY

CHAPTER 5



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New Perspectives onMarketing

Five Major Drivers of the New Economy:

Philip Kotler identifies them as under:

1. Digitalization and connectivity

2. Disintermediation and Reintermediation

3. Customization and Customerization

4. Industry Convergence

5. New Customer and Company Capabilities

(Remaining topic is for Self-study)



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Product Strategy

Perceived Quality and Value:

1. Brand Intangibles

2. TQM and Return on Quality

3. Value Chain Relationship Marketing:

1. Mass Customization

2. Aftermarketing 3. Loyalty Programs



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Pricing Strategy

Consumer Price Perceptions:

Price Band strategies

Value-based Pricing Strategies

Setting Prices to Build Brand Equity: Value Pricing based on: a) Product design and

delivery b) Product costs, and c) Product prices

Everyday Low Pricing (EDLP): A strategy based

on low pricing as well as discounts andpromotions to consumers at regular intervals.



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Channel Strategy

Channel Design: Broadly, channel types can beclassified intoDirect andIndirect channels.

Direct Channels: a) Company-owned stores b)Leased/Rented shopping-space in larger

department stores. Indirect Channels: a) Distributors and Dealers

b) Retailers c) other middlemen

Web Strategies: Today, these are extremely

powerful channels if supported by efficientphysical brick & mortar channels.



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C li i h


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Conceptualizing theLeveraging Process

Creation of New Brand Associations:

By making a connection between the brand andanother entity, consumers may form a mentalassociation from the brand to this entity and,

consequently, to any or all associations, judgments,feelings and the like linked to that entity

Effects on Existing Brand Knowledge: Three factorsare important in predicting the extent of leverageresulting from linking the brand to another entity:

i) Awareness and knowledge of the entity

ii) Meaningfulness of the knowledge of the entity, and

iii) Transferability of the knowledge of the entity



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Company

The branding strategies adopted by a companythat makes a product or offers a service are animportant determinant of the strength ofassociation from the brand to the company and

any other existing brands. Three mainbranding options exist for a new brand:

1. Create a new brand

2. Adapt or modify an existing brand

3. Combine an existing and new brand



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Country of Origin

Besides the company that makes the product,

the country or geographic location from which

it is seen as originating may also become linked

to the brand and generate secondaryassociations. Thus, a customer may choose to

wear Italian suits, exercise in American sports

shoes, drive a German car, and drink English

beer.



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Channels of Distribution

Channels of distribution can directlyaffect the equity of the brands they sell bythe supporting actions that they take.Retail stores can indirectly affect the

brand equity of the products they sell byinfluencing the nature of associations thatare inferred about these products on the

basis of the associations linked to theretail stores in the minds of consumers.



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Co-Branding

Co-branding: Also calledbrand bundling orbrand alliances-occurs when two or moreexisting brands are combined into a jointproduct or are marketed together in some

fashion.Ingredient branding: This is a special case of co-

branding that involves creating brand equityfor materials, components, or parts that are

necessarily contained within other brandedproducts.



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Licensing

Licensing involves contractualarrangements whereby firms can use the

names, logos, characters, and so forth of

other brands to market their own brandsfor some fixed fee. Because it can be a

shortcut means of building brand equity,

licensing has gained popularity in recentyears.



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Celebrity Endorsement (1)

Using well-known and admired people topromote products is a widespread phenomenon

with a long marketing history. The rationale

behind these strategies is that a famous person

can: 1. Draw attention to a brand, and

2. Shape the perceptions of the brand by virtue

of the inferences that consumers make based onthe knowledge they have about the famous

person.



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Celebrity Endorsement (2)

Potential Problems: 1. Celebrity endorsers can be overused by

endorsing so many products that they lack anyspecific product meaning or are just seen as

overly opportunistic or insincere. 2. There must be a reasonable match between

the celebrity and the product.

3. Celebrity endorsers can lose popularity thus

diminishing their market value to the brand. 4. Many consumers feel that celebrities are

doing the endorsement only for money.



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Sporting, Cultural, or Other Events

1. A brand may seem more likable oreven trustworthy by becoming linked toan event.

2. Sponsored events can contribute tobrand equity by becoming associated tothe brand and improving brandawareness, adding new associations, orimproving the strength, favorability, anduniqueness of associations.



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DEVELOPING A BRANDEQUITY MEASUREMENT

AND MANAGEMENTSYSTEM

CHAPTER 8



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The Brand Value Chain

Value Stages:

1. Marketing Program Investment

2. Customer Mindset

3. Market Performance

4. Shareholder Value


V l S ( )


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Value Stages (1)

Marketing Program Investment: The ability ofa marketing program investment to transfer ormultiply further down the chain will depend onqualitative aspects of the marketing program

via the program multiplier. The Program Multiplier: Four factors are

important:

1. Clarity 2. Relevance

3. Distinctiveness, and 4. Consistency



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Value Stages (2)

Customer Mindset: Five dimensions have emergedfrom research as important measures of the customer

mindset:

1. Brand Awareness 2. Brand Associations

3. Brand Attitudes 4. Brand Attachment

5. Brand Activity

Customer Multiplier: Three essential factors are:

1. Competitive Superiority 2. Channel and otherintermediary support 3. Customer size and profile



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V l S (4)


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Value Stages (4)

Stakeholder Value: Based on all available andforecasted information about a brand andmany other considerations, the financialmarketplace then formulates opinions andmakes various assessments that have direct

financial implications for the brand value.Three important indicators are:

1. Stock price

2. Price/earnings multiple, and

3. Overall market capitalization of the firm


Th B d V l Ch i


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The Brand Value Chain

Implications:

1. A necessary condition for value creation is awell-funded, well-designed, and well-implemented marketing program.

2. Value creation involves more than just theinitial marketing investment.

3. Each of the three multipliers can increase ordecrease market value from stage to stage.

4. The brand value chain provides a detailedroadmap for tracking value creation enablingmarket research and intelligence efforts.


Designing Brand Tracking


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Designing Brand TrackingStudies

What to Track:

1. Product Brand Tracking

2. Corporate or Family Brand Tracking

3. Global Tracking

How to Conduct Tracking Studies:

1. Who to track

2. When and where to track How to Interpret Tracking Studies


D i i B d T ki S di ( )


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Designing Brand Tracking Studies (1)

What to Track: Three distinct surveys can be

conducted for: 1. Product-Brand Tracking: The six-block

pyramid for brand-building can be used as abasis for design of the questionnaire.

2. Corporate or Family Brand Tracking: Someadditional questions may be added to establishlevels of corporate credibility and corporate

brand associations.

3. Global Tracking: A broader set of backgroundmeasures are needed to put brand developmentin those markets in the right perspective .



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Who to Track: 1. Current Customers

2. Potential Customers

3. Channel Members4. Frontline Employees (Services sector)

When and Where to Track: Options are:

Continuous Tracking Studies

Based on Stage of Product Life Cycle

Based on depth of Brand Equity


D i i B d T ki S di (3)


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How to Interpret Tracking Studies: For tracking

measures to facilitate actionable insights andrecommendations, they must be reliable and sensitiveas possible. This may require framing of questions in acomparative or temporal manner. It is also necessary todecide on appropriate cutoffs. For example:

What is a sufficiently high level of brand awareness?

When are brand associations sufficiently strong,favorable, and unique?

How positive should brand judgments and feelings be? What are reasonable expectations for the amount of

brand resonance?


Establishing a Brand Equity


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Establishing a Brand EquityManagement System

Brand Equity Charter

Brand Equity Report

Brand Equity Responsibilities:

1. Overseeing Brand Equity

2. Organizational Design and Structure

3. Managing Marketing Partners




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Establishing a Brand EquityManagement System (1)

Brand Equity Charter: A formalized documentshould spell out the following:

The firms view of the brand equity concept.

The scope of the key brands of the firm.

Specify the actual and desired equity for a brandat all relevant levels i.e. at individual productlevel and corporate level.

Strategies for managing brand equity.

Outline specific tactical guidelines for marketingprograms.

Trademark usage, packaging & communications




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Brand Equity Report: Important marketinformation that should be included:

1. Product shipments and movement

through channels of distribution.2. Relevant cost breakdowns

3. Price and discount schedules

4. Sales and market share information5. Profit assessments


E t bli hi B d E it


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1. Overseeing Brand Equity: Aspects that areimportant:

a) Review brand sensitive materialb) Review the status of key brand initiatives

c) Review brand sensitive projects

d) Review new product and distribution strategies

with respect to core brand valuese) Resolve brand positioning conflicts


E t bli hi B d E it


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Establishing a Brand EquityManagement System (3-contd)


2. Organizational Structure & Design: The

current market trends are redefining job

requirements and duties. The traditionalmarketing department is disappearing from a

number of companies that are exploring other

ways to conduct their marketing functions

through business groups, multidisciplinary teamsand so on.




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g q yManagement System (3-contd)


3. Managing Marketing Partners: The

performance of a brand also depends on the

actions taken by outside suppliers and marketingpartners. Hence, these relationships must be

managed carefully. Many leading global firms

have been consolidating their marketing

partnerships and reducing the number of outsidesuppliers. (Ex: Levi Strauss value chain)

Ref: Chapter 8 of Core Text (END OF PART I)

branding and marketing promotion strategies

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