building and managing brands

Branding Management

What is the brand

FIRST

A brand is not a logo.

SECOND

FINALLYA brand is not a product.

So what exactly is a brand?

A BRAND IS A PERSON’S GUT FEELING ABOUT A PRODUCT, SERVICE, OR ORGANIZATION.

It is a PERSON’S gut feeling, because brands are defined by individuals, not companies, markets, or publics.

IT’S NOT WHAT YOU SAY IT IS.

IT’S WHAT THEY SAY IT IS.

WHY IS BRANDING SO HOT?

What is a Brand?Brand is the seller’s promise to deliver the same bundle of benefits/services consistently to buyers.

A product is any offering by a company to a market that serves to satisfy customer needs and wants. A product can be an object, service, idea, etc.

On the other hand a name becomes a brand when consumers associate it with a set of tangible and intangible benefits that they obtain from the product or service.

Brands are not the same as Products.

Brand name selecting process may you find trivial but it is not. Some brand names are so good that contribute to the success of product.

Brand differences are often related to attributes or benefits of product itself.

Brand Elements

ElementsSlogans

Brandnames

Promise

LogosPersonality

Characters

Brand Element Choice Criteria

Memorable

Meaningful

Likeability

Transferable

Adaptable

Protectable

Why do Brands Matter?

R

The main reason consumers flock to some brands and ignore others is that behind the brand stands an unspoken promise of value.

B

Brands have become important drivers of growth for any organization, good or service.

N

A brand helps make a mark and differentiate a good or service from others in marketplace.

D

A strong brand makes people aware of what the company represents and about the different offerings of the company.

S

Brands help customers to connect to the product or service on an emotional level.

A

A Brand is a promise that the product will perform as per customer’s expectations.

Brands for Consumers and Sellers

Symbolic device

Less cost of searching

for a choice

Symbol of Quality

The word ‘Brand’ signifies different things to consumers and sellers.

Consumers

Source of product


Symbolic device

Lower risk


for a choice

Symbol of Quality

Consumers

Source of product

Consumers can easily make a purchase decision based on brands. Consumers usually find brands which satisfy their need.


Symbolic device


for a choice

Symbol of Quality


Consumers

Source of product

Brands mean lower purchase risk to consumers as they are dealing with a product or organization that they trust.Lower risk


Symbolic device

Symbol of Quality


Consumers

Source of product

If the consumers recognize a particular brand and have knowledge about it, they make quick purchase decision and save lot of time. Also, they save search costs for product.

Lower risk


for a choice


Symbolic device


Consumers

Source of product

Consumers see ‘brands’ as a symbol of quality and remain committed and loyal to a brand as long as they believe that the brand will continue meeting their expectations and perform in the desired manner consistently.

Lower risk


for a choice

Symbol of Quality



Consumers

Source of product

Brands play a significant role in signifying certain product features to consumers.

Lower risk


for a choice

Symbol of Quality

Symbolic device



Seller

Means of Profits

Legal protection of

products’ features

Satisfied customer

Means of Competitive Advantage

A brand helps the firms to provide consistently a unique set of characteristics, advantages, and services to the buyers/consumers.



Seller

Means of Profits

Satisfied customer


Brands help to protect the unique features/traits of products by legal copyrights.

Legal protection of




Seller

Means of Profits


Brand represents values, ideas and even personality and hence leads to an assortment of memories in customers’ mind and hence satisfied customers.

Legal protection of


Satisfied customer



Seller


Brands form the basis of purchase decision among consumers and thus are a means of financial profits.

Legal protection of


Satisfied customer

Means of Profits

Brand positioning

1)It is the heart of marketing strategy.

2. It is the act of designing the company’s offer and image so that it occupies a distinct and value place in the target customer minds.

3.How it is unique and how it is similar to competitive brands, and why consumer buy and use it.

BRAND PURPOSE

To champion Redfern as a landmark destination demonstrating respectful and positive transformation;

BRAND PROMISE

Redfern is a special place in Sydney and the world. Building on our foundation as the heart of urban Aboriginal Australia, we are alive with art, music, culture and ideas.

BRAND ESSENCE

Our brand essence is “Welcoming Spirit” Welcoming Means

BRAND VALUES

Vibrant Diverse Living culture Forward thinking

The Role of Brands

Identify the makerIdentify the maker

Simplify product handlingSimplify product handling

Organize accountingOrganize accounting

Offer legal protectionOffer legal protection

Signify qualitySignify quality

Create barriers to entryCreate barriers to entry

Serve as a competitive advantage

Serve as a competitive advantage

Secure price premiumSecure price premium

A brand promise sets an expectation of an experience. It answers the question – What’s

in it for the customer? An effective promise is concise,

relevant, sells a benefit (not just a feature), and is backed up by the product / service.

In the best case, your brand IS a promise. Southwest Airlines Nordstrom’s Disney

What is a Brand Promise?

How Are Brand Promises Delivered? Advertising

◦ Controlled messaging◦ Aligned messaging

Horizontally - Across media types Vertically – Up/Down thru Tier 1,

II & III

Experiential◦ Branded Lifestyle / Off-line content

and programming◦ Retailer / On-site transaction-based

experience◦ 1 to 1 issue resolution via

Consumer Affairs / Help desk

What is Brand Management?

Now, that you have learnt about ‘brands’, let us see what is brand management.

Brand management is the process of building, managing and improving a brand.

It begins by having a thorough knowledge of the term “brand”.

Hence, brand management includes developing a promise, making that promise and maintaining it.

It means defining the brand, positioning the brand, and delivering the brand. It is an art of creating and sustaining the brand.

What is Brand Management?

The tangible and intangible characteristics of brand are managed through Brand management.

The tangibles for product brands include the product itself, its characteristics, features, price, packaging, etc.

Whereas, in case of service brands, the customers’ experience forms the tangibles.

The intangibles are made up of the emotional connections with the product / service.

Thus, you can see that brand management is all about Branding.

Branding is assembling of various marketing mix medium into a whole so as to give the product an identity.

It is building a brand name that captures the customer’s mind.

Purpose of Brand Management

The main aim of branding is to differentiate a company’s products and services from its competitors.

Branding aims to convey a brand message vividly, create customer loyalty, persuade the buyer for the product, and establish an emotional connectivity with the customers and form customer perceptions about the product.

Brand management plays a crucial role to form brands. The brand management strategies also provide good support to the brand so that it can sustain itself in long run.

Also, through brand management, brands are managed and brand equity is built over a period of time. It helps in building a corporate image. Thus, only a competent brand management system can create a successful brand.

Strategic Brand Management Process

Step 1St

ep 4

Strategic Brand Management Process

Identifying and

Establishing Brand

Position

Planning and

Implementing B

rand

Mar

keting P

rogra

msMeasuring and

Interpreting Brand

Performance

Growing and Susta

ining

Brand EquityStep 2St

ep 3

Identifying and

Establishing Brand Position

Building a Strong Brand: Four Steps of

Brand Building

Brand Positioning

Identify and Establishing

Brand Position

Positioning Guidelines

Customer Based Brand

Equity

Step 1: Identifying & Establishing Brand Position

Building a Strong Brand: Four Steps of Brand Building

Brand Positioning Identify and Establishing Brand

Position


Identifying and Establishing Brand

Position

Customer Based Brand Equity

(Keller)


Identifying and


Brand Positioning

Identify and Establishing

Brand Position



Brand PositioningThe Brand Positioning is further divided into two parts –

• Identify and Establishing Brand Position

• Positioning Guidelines

Identify and Establishing Brand Position:

It is necessary to decide:•Who the target consumer is•Who the main competitors are•How the brand is similar to these competitors•How the brand is different from these competitors

Basic Concepts

Brand Positioning - Identify and Establishing Brand Position

The Target Market can be decided based on two considerations:•Segmentation Bases: a) Behavioral b) Demographic c) Psychographic d) Geographic•Segmentation Criteria: a) Identifiability b) Size c) Accessibility d) Responsiveness

Target Market

The following are some of the positioning guidelines that firms should follow for an effective brand positioning:

•Defining and Communicating the Competitive Frame of Reference•Choosing Points of Parity and Points of Difference•Establishing Points of Parity and Points of Difference•Updating Positioning Over Time

Positioning Guidelines:

Brand Positioning - Positioning Guidelines

Step 2: Planning & Implementing Brand Marketing Programs

Planning & Implementing

Brand Marketing Programs

Designing Marketing

Programs to Build Brand

Equity

Choosing Brand

Elements to Build Brand

Equity

Co-branding

Celebrity Endorsement

Criteria for Choosing

Brand Elements

Options and Tactics for

Brand Elements

Product Strategy

Channel Strategy

Pricing Strategy

Leveraging Secondary Brand Associations to

Build Brand Equity

Licensing



Brand Marketing Programs Choosing

Brand Elements to Build Brand

Equity


Brand Elements


Brand Elements


Designing Marketing


Equity

Co-branding

Product Strategy

Channel Strategy

Pricing Strategy

Leveraging Secondary Brand

Associations

Licensing

Choosing Brand ElementsBrand Elements are sometimes called ‘Brand Identities’. They are the trademark devices that help to identify and differentiate brands.

Nike Logo, Kingfisher, the rings of Audi etc. are brand elements.

Choosing Brand Elements to Build Brand Equity is further divided into two parts:

• Criteria for Choosing Brand Elements • Options and Tactics for Brand Elements

Choosing Brand Elements to Build Brand Equity - Criteria for Choosing Brand Elements

Criteria for Choosing Brand Elements :

The following criteria should be met to choose relevant brand elements such as:• Memorability – Easily Recognized, Easily Recalled• Meaningfulness – Descriptive, Persuasive• Likability – Fun and Interesting, Aesthetically Pleasing• Transferability – Within Cross Product Categories, Across Geographical Boundaries and Cultures• Adaptability – Flexible, Updateable• Protectability – Legally Protected, Competitively Protected

Choosing Brand Elements to Build Brand Equity - Options and Tactics for Brand Elements

Options and Tactics for Brand Elements:

The following are few options and tactics for Brand Elements:

Brand Names:Descriptive brand names in which the function is described literally in brand name.

Suggestive brand names in which the name is suggestive of a benefit provided by the brand to the customer.

URLs:• Keep the URLs as simple as possible, • Avoid clichés, • Use a new term for the real word• Use catchy phrases

Logos and Symbols:Various kinds that can be used

are:• Family Shields

• Fonts

• Symbols

• Abstract – shapes and image

Choosing Brand Elements to Build Brand Equity - Options and Tactics for Brand Elements

Options and Tactics for Brand Elements:

The following are few options and tactics for Brand Elements:

Jingles: These are musical slogans that help in reminding by repetition.

Examples: The axe song and O Fortuna, the Old Spice Theme Song.

Characters: Characters can also be used as brand elements.

Slogans: Slogans are short phrases that are descriptive or persuasive in nature and provide more info about the brands.

Packaging: Packaging is an important brand element. It helps to identify the brand, convey descriptive and persuasive information through labelling, allows protection, transportation, storage and consumption of product .


Planning & Implementin

g Brand Marketing Programs

Designing Marketing


EquityProduct Strategy

Channel Strategy

Pricing Strategy

Choosing Brand


Equity

Co-branding



Brand Elements


Brand Elements

Leveraging Secondary

Brand Associations to

Build Brand Equity

Licensing

Designing Marketing Programs to Build Brand EquityBrand Equity can be built by focussing on designing effective marketing programs keeping the following in consideration:•Product Strategy•Pricing Strategy•Channel Strategy

Designing Marketing Programs to Build Brand Equity

Designing Marketing Programs to Build Brand Equity



Designing Marketing


Equity

Product Strategy

Channel Strategy

Pricing Strategy

An efficient product strategy would ensure that the product remains updated with the latest features, technology and enhancements and has something extra to offer to the customers.

Product Strategy

An efficient pricing strategy helps companies to best position themselves within the market.

Pricing Strategy

It involves developing go-to-market plans, educating channel marketers or middlemen about products or services, and motivating the members of the marketing channel to promote products and services. Hence, marketing and sales alignment is critical to an effective channel strategy.

Channel Strategy


Designing Marketing


Equity

Choosing Brand


Equity


Brand Elements


Brand Elements

Product Strategy

Channel Strategy

Pricing Strategy



Co-branding


Leveraging Secondary

Brand Associations to

Build Brand Equity

Licensing

Leveraging Secondary Brand Associations to Build Brand EquityThe Leveraging Secondary Brand Associations to Build Brand Equity is further divided into three parts – •Co-branding•Licensing•Celebrity Endorsement

Leveraging Secondary Brand Associations to Build Brand Equity

Leveraging Secondary Brand Associations to Build Brand Equity



Co-branding


Leveraging Secondary Brand Associations to

Build Brand Equity

Licensing

Co-branding occurs when two or more existing brands are combined into a joint product or are marketed together in some fashion. A few examples are: Sony Ericsson, Tata - Fiat, SBI GE

Co-branding

Licensing involves contractual arrangements whereby firms can use the names, logos, characters, and so forth of other brands for some fixed fee. A few examples are: Entertainment (Ra1), Television and cartoon characters (Britannia – Tom and Jerry),

Licensing

Celebrity endorsement helps to draw attention to the brand and to shape the perceptions of the brand. A celebrity should be greatly popular and have a high level of visibility. He or she should also have a rich set of useful associations, judgments, and feelings associated with him/her by the general public.


Step 3: Measuring & Interpreting Performance

Measuring & Interpreting Brand

Performance

Measuring Sources of

Brand Equity

Developing Brand Equity Measurement

& Management

System

Measuring Outcomes of Brand Equity

Qualitative Research

Techniques

Quantitative Research

Techniques

Comparative Methods

Holistic Methods

Brand Value Chain

Establishing a Brand Equity Management

SystemDesigning

Brand Tracking Studies


Measuring & Interpreting

Brand Performance


& Management

SystemBrand Value Chain


SystemDesigning



Brand Equity



Techniques


Techniques

Comparative Methods

Holistic Methods

Developing a Brand Equity Measurement & Management System

The Developing a Brand Equity Measurement and Management System is further divided into three parts – •Brand Value Chain•Designing Brand Tracking Studies •Establishing a Brand Equity Management System

Let us look at each one in detail.



Brand PerformanceMeasuring

Sources of Brand Equity


Techniques


TechniquesDeveloping Brand Equity Measurement

& Management

System


Comparative Methods

Holistic Methods

Brand Value Chain


SystemDesigning


Measuring Sources of Brand Equity: Capturing Customer Mind-SetThere are two methods that are used for measuring the sources of brand equity or to capture the customer’s mind-set, which are as follows: •Qualitative Research Techniques•Quantitative Research Techniques


Measuring Sources of Brand Equity – Quantitative Research Techniques

AwarenessBrand awareness is related to the strength of the brand in memory. Brand awareness is reflected by consumers’ ability to identify various brand elements.The following factors must be taken into consideration while measuring brand awareness:• Recognition: This relates to consumers’ ability to identify the brand under different circumstances.• Recall: ‘Unaided recall’ means the identification with minimal cues. ‘Aided recall’ means various cues were used to assist recall.• Corrections for Guessing: The research data collected for measure must consider the issue of consumers ‘making up’ responses or ‘guessing’. These may affect strategic brand decisions. • Strategic Implications: It is important that researchers understand that recognition and recall is essential in analyzing formation of consideration sets and product decisions made by consumers.



Brand Equity


& Management

System


Techniques


Techniques

Brand Value Chain


SystemDesigning



Brand Performance Measuring

Outcomes of Brand Equity

Comparative Methods

Holistic Methods

Measuring Outcomes of Brand Equity: Capturing Market PerformanceThere are two methods that are used for measuring the outcomes of brand equity or to capture the market performance, which are as follows: • Comparative methods• Holistic methods


Step 4: Growing and Sustaining Brand Equity

Growing and Sustaining

Brand EquityDesigning

and Implementing

Branding Strategies

Introducing & Naming

Products and Brand

Extensions

Managing Brands over

Time

Brand Architecture

Brand Hierarchy

Reinforcing Brands

Revitalising Brands

New Products and Brand Extensions

Disadvantages of

ExtensionsAdvantages

of Extensions



Brand EquityDesigning

and Implementing

Branding Strategies

Brand Architecture

Brand Hierarchy Introducing

& Naming Products and

Brand Extensions


Time

Reinforcing Brands

Revitalising Brands


Disadvantages of


of Extensions

Designing and Implementing Branding Strategies Most brands are part of a wider organization. The Designing and Implementing Branding Strategies is further divided into two parts – • Brand Architecture • Brand hierarchy

Designing and Implementing Branding Strategies – Brand Architecture

Brand Architecture It is the structure and organization of brands.

Breadth of Product Mix: Three factors determine the inherent attractiveness of a product category:

1. Aggregate market factors2. Category factors3. Environmental factors

Depth of Product Mix: An important rule to remember to decide the depth of the product mix is: “A product line is too short if the manager can increase long-term profits by adding items; the line is too long if the manager can increase profits by dropping items”.

Breadth of a Branding Strategy

Flankers: Flanker brands are used to create stronger points of parity with competitors’ brands.Cash Cows: In firms, there are some brands that retain loyal customers and generate healthy profits with virtually no market support. Low-end Entry-level / High-end Prestige Brands: The first category low-end entry-level are called “traffic builders” and they are able to “trade up” customers to the higher-priced brands.

Depth of a Branding Strategy:

Designing and Implementing Branding Strategies – Brand Hierarchy

Brand Hierarchy It is a means of summarizing the branding strategy by displaying the number and nature of common and distinctive brand elements across the firm’s products. It helps to reveal the explicit ordering of brand elements.

A simple representation of possible brand elements and thus, potential levels of a brand hierarchy might be as follows:

1. Corporate brand e.g. Chrysler-Daimler2. Family brand e.g. Mercedes-Benz3. Individual Brand e.g. 1000 SEL4. Modifier (designating item or model) LX / VX

Potential Levels of Brand Hierarchy:

Brand hierarchy is a means of summarizing the branding strategy by displaying the number and nature of common and distinctive brand elements across the firm’s products. It helps to reveal the explicit ordering of brand elements.

Let us now look at how brand hierarchy can be built within a firm. This can be done in two ways:By Building Equity at Different Hierarchy LevelsBy Creating Corporate Image Dimensions

Brand Hierarchy Built within a Firm:



Brand Equity


Products and Brand

ExtensionsNew Products

and Brand Extensions

Disadvantages of


of Extensions

Designing and

Implementing Branding Strategies


Time

Brand Architecture

Brand Hierarchy

Reinforcing Brands

Revitalising Brands

Introducing and Naming New Products and Brand ExtensionsThe Introducing and Naming New Products and Brand Extensions is further divided into three parts – • New Products and Brand Extensions• Advantages of Extensions• Disadvantages of Brand Extensions


Designing and

Implementing Branding Strategies


Products and Brand

Extensions

Brand Architecture

Brand Hierarchy


Disadvantages of


of Extensions


Brand EquityManaging

Brands over Time

Reinforcing Brands

Revitalising Brands

Managing Brands over Time

It is very important to understand the long term effects of marketing activities on the brand equity. Firms should carefully consider the consumer response to past marketing activities, the brand awareness and image, as well as the customer response to current marketing activities and to predict the response to future activities. Analyzing this information will help firms to manage the brands over a long period of time. There are various strategies that are used to manage the brands over a long period of time which are as follows:• Reinforcing Brands• Re-vitalising Brands

Brand Management Guidelines

Establish and Maintain the BrandIt is necessary that for establishing and maintaining a brand, a

holistic approach, or an “overall brand strategy” is used. 11

Maintain Consistency between the Brand Strategy and Overall Business GoalsThe brand strategy should be in line with the overall business goals of the organization.

22

Select Proper License PartnersThe profile of the ideal license partner should be developed and

the focus should be to ensure long-term relationships with the licensors and licensees.

Maximize the Strategic Advantage of the BrandIt is important that organizations focus on maximizing the leverage of the brand.

33

Decide about License Agreements: The decision of whether the license agreement should be

exclusive or non–exclusive will have important implications for all of the business.

44

Enforce Key Provisions through License agreements Enforcing various important concerns such as quality control standards and reporting standards can be done through a properly charted out license agreements.

55

77

88

66

Affix Products & ServicesAn effective strategy of brand management is

to ensure that the brand is associated to the most popular products and services offered by

the licensee’s products and services.

Actively Integrate the Brand Management Strategy into Product Development and Launch ActivitiesIt is important that the Companies actively integrate the brand strategy into product development and launch activities by using a clear and proactive strategy.

The following key points provide some strategic brand management guidelines that should be adapted when developing and implementing a brand management strategy.

Brand Strategy Defined

The purpose of a brand strategy is to provide a plan for the systematic development of a strong coherent brand in order to enhance revenue and profits. The strategy should be driven by the principles of differentiation and sustained consumer appeal.

The brand strategy should influence the total operation of a business to ensure consistent brand behavior in the marketplace and consistent brand experiences for the customer.

TrendsMotivations/”Sweet spots”Decision-making process/criteriaHigher level benefitsImage/Identity gapsNew Segments Unmet needsWhere to Find Insights

The purpose of a target insight is to describe how a meaningful connection can be established between what the brand offers and the target’s explicit or implicit needs in order to help identify a relevant brand promise.

Branding

Who are youPositioning

IdentityCore values, core

purpose, core attributes and business model

Definition of your customers,

competitors, differentiation and brand touch points

Your brand name, Brand design standards,

and key touch point concepts

Communication

Internal

External

Living the brand

Marketing plan

Product/service design,Systems and procedures andbrand culture maintenance

Website, Collateral, Packaging, PR,

Advertising, Environments,

Interactive, Media, etc.

Operations

Marketing

CoreBrand

CoreBrand

53Brand Strategy and Marketing Strategy

Brand Strategy is separate from the 4P’s. It guides and inform decisions about every aspect of the marketing mix.

I. Corporate Objectives & Brand Portfolio

II. Marketing Objectives

III. Brand Strategy

Communications Strategy

Product and Pricing Strategy

Channel and Distribution Strategy

IV. Marketing Execution & Monitoring

Strategic Marketing Process

Brand Strategy is an integral part of the overall strategic marketing process. It helps to bridge the gap between business strategy and marketing strategy.

Brand Strategy Process

Target & Insight

Brand Execution Brand Execution

Brand Elements

Competitive Assessment

Brand Inventory

Equity Pyramid

Positioning

Objectives & Metrics

Personality

CommunicationsStrategy

Brand Experience Map

Brand StrategyBrand Strategy

Brand AuditBrand Audit

CRM &Community

Building

Points of Parity and Difference

The process of creating a brand strategy begins with a brand audit and ends with a plan for executing the brand across all touch points. It can be generally thought of as having three stages..

Insights Examples

Mastercard “Priceless” campaign “What we found was that people buy things because of how those

things make them feel… So the idea is that the item allows you to get to some other place in your life that makes you feel good.”

National Youth Anti-Drug Program “Above the Influence” campaign “We wanted to elevate the conversation to make it more ‘pro-me’

than anti-drug. We know teens are very sensitive to influences, positive and negative, from peers and the media. That’s why we positioned it so teens would see influence as the enemy and marijuana as one of the influences that gets in their way. It’s a way of empowering them so they can stand on their own at a key moment of choice – seeing that they could be above the influence.”

Points of Parity and Difference

Brand

Consumers

Competition

Our

PODs

Potential Brand Differences

POPs• Points of Parity (Category

Benefits)

Competitive Brand Differences

Their PODs

Wants and Needs

The purpose of a POD’s analysis is to identify what ideas from our brand and competitive brands are most meaningful and potentially differentiating.

The purpose of a POP’s analysis is to identify which category benefits are critical for establishing credibility.

Brand Pyramid

Resonance

Consumer Judgments

Consumer Feelings

Brand ImageryBrand Performance

Salience

The purpose of the brand equity pyramid is to outline the basic building blocks of a what the brand should stand for in order to guide the process of building brand equity. It is the basis for determining key elements of the brand strategy – brand vision, brand positioning, and brand personality and brand measurement.

IdentityIdentity

RelationshipRelationship

ResponseResponse

MeaningMeaning

Brand Equity Pyramid Brand Equity Pyramid The model was developed by Kevin Keller, professor of brand strategy at Dartmouth, based on his ‘Customer Based Brand Equity Model’ (CBBE). Keller is the author of two definitive texts on brand building. The pyramid is just one of 4-5 leading representations of the components of brand equity. Other models include Y&R’s Brand Asset Valuator, Millward Brown’s BrandDynamics model, etc. While each model has its adherents, upon closer scrutiny, they are all very similar in their content and purpose. Whichever is selected, what is important is that it provide a shared basis for understanding what is meant by ‘brand equity’ and how this construct applies to your brand.

Brand Positioning

The purpose of brand positioning is to explain how the brand will create a sustainable competitive advantage in the minds of prospects & customers in order to win loyal customers and ensure revenue and profits.

For (Target), (Brand/Company) is the only/best (consumer frame of reference) that (statement of key benefit or guiding value), because/by

(reason to believe, key credibility point).

Evaluation Criteria: Brand Fit, Customer Relevance, Uniqueness, Sustainability, Credibility

Positioning Building Blocks

SUPPORT

TARG

ET

FRAM

E O

F

REFEREN

CEBENEFIT

Category definition Need state or problem

Product quality or value Most Reputable Company Service or delivery

difference

Homeowners/Business owners Adults 35+; HHI $50,000+ Aware of ------ Experiencing -----

Branding stage

Vision

Brand Strate

gy

Conception

Design

Production

Launch

Branding and Stage Gate Process

Your logo

Ideation Preliminary investigation

Detailed investigatio

n

Development Testing and validation

Full product and market

launchPIR

Gate1

Gate2

Gate3

Gate4

Gate5

Postimplementation review

Initial screen

Second screen

Decision on business

case

Postdevelopment review

Precommunication business analysis

4. Design brand

strategy

2. Map existing brand

culture

Advertising public relations

corporate communication

s pricing promotions

personal selling

channels/ retail

1. Identify goals that

branding can address

3. Analyze competition

and environment to identify branding

opportunity

5. Preliminary evaluation of

brand

6. Full evaluation of

brand

Branding and Stage Gate Process

Your logo

Ideation Preliminary investigation

Detailed investigatio

n

Development Testing and validation

Full product and market

launchPIR

Gate1

Gate2

Gate3

Gate4

Gate5

Postimplementation review

Initial screen

Second screen

Decision on business

case

Postdevelopment review

Precommunication business analysis

Advertising public relations

corporate communication

s pricing promotions

personal selling

channels/ retail

5. Preliminary evaluation of

brand

4. Design brand

strategy

3. Analyze competition

and environment to identify branding

opportunity

1. Identify goals that

branding can address

6. Full evaluation of

brand

2. Map existing brand

culture

Strategic Brand Assessment

An “Inside Out” Look At Brand

Opportunities and Vulnerabilities

Most marketers have a good “Outside In” perspective on their brands.

All important measures of marketing effectiveness.

But…

Increasingly, the success of a brand is not just the result of well crafted marketing programs.Strong brands are those that have achieved alignment of values with both internal and external audiences.

Think: Starbucks, Southwest Airlines, Google, Nordtrom’s.

A strong brand is the result of effective marketing plus:

The Strategic Brand Assessment delivers an “Inside Out” perspective by providing insights and perceptions

An “Inside Out” Perspective

From three critical audiences:Executives, Employees, Channel Partners

A brand is a name or symbol used to identity the source of the product. The brand can add significant value when it is well recognized and has positive associations in the mind of the consumer. This concept is known as brand equity.

BRAND EQUITY

NEED FOR BRAND EQUITY

Values of brand equity ?

Value to the customer ?

Value to the firm ?

PERSPECTIVES OF BRAND EQUITY

Financial

Brand extension

Consumer based

Brand is an intangible asset that produces added benefits for the business. This is the domain of strategic brand management : how to create value with brand management.

• Loyalty (price premium, satisfaction).

• Perceived quality (popularity).

• Association (brand personality, organizational

association).

• Awareness (brand awareness).

• Market behavior (market share).

Brand equity is

a set of brand assets and liabilities linked to a brand

Earning wealth and recognized through the power of brand name or symbol.

A brand is a name or symbol used to identity the source of the product. The brand can add significant value when it is well recognized and has positive associations in the mind of the consumer. This concept is known as brand equity.

NEED FOR BRAND EQUITY

Values of brand equity ?

Value to the customer ?

Value to the firm ?

PERSPECTIVES OF BRAND EQUITY

Financial

Brand extension

Consumer based

Elements of Brand Equity:Elements of Brand Equity:

Brand Loyalty

Brand Awareness

Perceived Quality

Brand Associations

Measuring Brand Loyalty

• Purchase Behavior Patterns

• Switching Cost Analysis

• Satisfaction MeasurementStrategic Value of Brand Loyalty• Reduce marketing cost• Trade (channel distribution)

leverage• Attracting new customers

Brand Brand StrategyStrategy

Developing Brand Vision


Fulfilling Brand Contract

Communicating Brand Position

ASPECTS OF BRAND EQUITY

MEASURING BRAND EQUITY

What does the brand stand for? (brand essence)

• Health, vitality, enhanced water, enhanced lifestyle, trendy

• “Not your ordinary bottled water” “Hydration for every occasion” – tagline

What are the respective brand images?

Healthy, rejuvenating “miracle elixir”, for people on the go, status symbol (you want to be seen with Vitamin Water)

What perceptions does the brand seek to establish?

There is a new kid on the block – a delicious, nutritious, flavoured water – one for every “need”

Brand Equity Concept

Brand Equity

Customer-based

Market - based

Brand Equity is the value, both tangible and intangible, that a brand adds to a product/service; the added value a brand name identity brings to a product or service beyond the functional benefits provided.

The customer – based brand equity focuses exclusively on the relationship customers have with the brand

The market – based brand equity aims at producing measures in dollars, euros or yen.

The concept of brand equity is measured in two terms:


Companies must take care of its brands so

that the brand equity is not diluted or

dissipated.

A few examples of products with excellent

brand equity include Google, Nike and

Starbucks.

Let us now look at the process of building

brands.

Measuring Brand Equity

Brand AuditsBrand Audits

Brand TrackingBrand Tracking

Brand ValuationBrand Valuation

Steps in Calculating Brand Equity

WHAT IS BRAND EQUITY

Building a Strong Brand

a great product


a great product

brand image


a great product

brand image customer experience


a great product

brand image customer experience

GREAT PRODUCT

BRANDIMAGE

CUSTOMEREXPERIENCE


CUSTOMER-CENTRIC MARKET STUDY

BRANDIMAGE

CUSTOMEREXPERIENCE

GREAT PRODUCTS



BRANDIMAGE

CUSTOMEREXPERIENCE

MARKETING SUPPORT AND PEOPLE DEVELOPMENT

GREAT PRODUCTS

High Brand Equity


BRANDIMAGE

CUSTOMEREXPERIENCE

MARKETING SUPPORT AND PEOPLE DEVELOPMENT

GREAT PRODUCTS

#1

BRAND BUILDING PRINCIPALS

1. Brand Asset Valuator

Differentiation

Energy

Relevance

Esteem

Knowledge

2. Brandz

Presence

Relative

Performance

Advantage

Bonding

High Loyalty

Low Loyalty

Building brand equity

Marketing communication

programs

Adv

Sales prom

Event Experience

PR

Direct Marketing

Word of mouse

Personnel selling

Brand equity

Brand awareness

Brand Image

Brand responses

Brand relationship

s


The Brand's unique

points of difference relates to premium margins

How appropriate the brand to you relates to market

penetration

Differentiation Relevance

Strength

How well regarded the

brand is relates to its delivery on

promise

A deep understandin

g of the brand

relates to overall

customer experience

Esteem Knowledge

Strength

What makes a Brand Strong?

A strong brand is a major driver of shareholder value.

A strong brand is like an asset. It can be used as collateral for financial loans , buying and selling as an asset.

A strong brand has strong attributes, values and personality that the consumers associate with the brand.

A strong brand is a means of attaining higher customer loyalty.

It is important that in order to make a strong impact, a brand should be strong. There are a few characteristics that make a ‘strong’ brand, which are as follows:

A strong brand always delivers the benefits that customers truly desire.

A strong brand makes use of and coordinates full range of marketing activities to build equity.A strong brand has the right blend of product quality, design, features, costs and prices.A strong brand is properly positioned and occupies a particular niche in consumers' minds.A strong brand compels consumers to willingly pay a substantial and consistent premium price for the brand versus a competing product and service.

Gillette as a Strong Brand

Gillette is one of the strongest brands in the market of men’s personal care products. It has tied the actual quality of its products to various intangible factors such as:

The type of person who uses Gillette, the type of situations in which the brand is used, the type of personality Gillette portrays etc.

User Imagery

Its razor blades are as technologically advanced as possible through continuously spending millions of dollars in R&D.

Technology

It has developed several sub brands such as Trac II, Altra, Sensor, Mach3 to remain on top of its competitors.

Sub-branding

It makes constant improvements with modifiers like Altra Plus, Sensor Excel.

Enhancements

Insight about branding

DisneyWal – Mart

FedexMcDonalds

AppleGoogleToyota

Family Fun EntertainmentLow Prices and Good ValuesGuaranteed Overnight DeliveryFood and FunInnovationSimplicityReliability

Some Metrics to Measure Return Some Metrics to Measure Return

on Brand Investment:on Brand Investment:

• Brand name knowledge, Brand name knowledge,

awareness, recognition, awareness, recognition,

recallrecall: measures strength of the brand as reflected by customer's ability to identify the brand under varying conditions

• Contract fulfillmentContract fulfillment: measures the degree to which your brand is upholding its Brand Contract

Some Metrics to Measure Some Metrics to Measure

Return on Brand Investment:Return on Brand Investment:

Definition The Marketing Communications

Mix The specific mix of

advertising, personal selling, sales promotion, and public relations a company uses to pursue its advertising and marketing objectives.

Introduction to Marketing Communications (Marcom)

Business-to-Consumer(B2C)

Business-to-Business(B2B)

Integrated MarcomB2C&B

Integrated Marketing Communication (IMC)

Programs

The Tools of Marketing CommunicationsTable 1.1

1.1. Media AdvertisingMedia Advertising

• • TVTV

• • RadioRadio

• • MagazinesMagazines

• • NewspapersNewspapers

2.2. Direct Response and Interactive Direct Response and Interactive AdvertisingAdvertising

• • Direct mailDirect mail

• • Telephone solicitationTelephone solicitation

• • Online advertisingOnline advertising

3.3. Place AdvertisingPlace Advertising

• • Billboards and bulletinsBillboards and bulletins

• • PostersPosters

• • Transit adsTransit ads

• • Cinema adsCinema ads

4.4. Store Signage and Point-of-Store Signage and Point-of-Purchase AdvertisingPurchase Advertising

• • External store signsExternal store signs

• • In-store shelf signsIn-store shelf signs

• • Shopping cart adsShopping cart ads

• • In-store radio and TVIn-store radio and TV

5.5. Trade- and Consumer-Oriented Trade- and Consumer-Oriented PromotionsPromotions

• • Trade deals and buying Trade deals and buying allowancesallowances

• • Display and advertising Display and advertising allowancesallowances

• • Trade showsTrade shows

• • Cooperative advertisingCooperative advertising

• • SamplesSamples

• • CouponsCoupons

• • PremiumsPremiums

• • Refunds/rebatesRefunds/rebates

• • Contests/sweepstakesContests/sweepstakes

• • Promotional gamesPromotional games

• • Bonus packsBonus packs

• • Price-off dealsPrice-off deals

6.6. Event Marketing and Event Marketing and SponsorshipsSponsorships

• • Sponsorship of sporting eventsSponsorship of sporting events

• • Sponsorship of arts, fairs, and Sponsorship of arts, fairs, and festivalsfestivals

• • Sponsorship of causesSponsorship of causes

7.7. Marketing-Oriented Public Marketing-Oriented Public Relations and PublicityRelations and Publicity

8.8. Personal SellingPersonal Selling

Marketing Communications Mix

Advertising

Public Relations and Publicity Sales

Force

Direct and Interactive Marketing

Word-of-Mouth

Events and Experiences

Sales Promotion

Integrated Marketing Communications

Advertising

Direct Response

Sales Force

Events and Experiences

ClarityConsistencyMaximum Impact

Integrated Marketing Communications

A planning process designed to assure that all brand contacts received by a customer or prospect for a product, service or organization are relevant to that person and consistent over time.

Marketing Communication Effects

“Outdoors”

“Active”

“Rugged”

SUBARU

TV Ads Sponsorship

Communications Process Models

Macromodel Micromodel

Sender Receiver Consumers’ Response

Precondition for promotion: communication

Encoding Process

Decoding Process

SourceMediumofTrans-mission

Receiveror Audience

NOISE NOISE

Feedback

Source/SenderAd agencyIntends to share meaning

translating meaning of message into some form (Got Milk?)

Means of reaching target (print ad, T.V., salesperson)

Target makes sense of message

anything decreases clarity

(different markets see same message differently

Fragility of Communication Process

Awareness

Knowledge

Conviction

Purchase

Preference

Liking

50%

50%

50%

50%

50%

50%

Probability

.5 X .5 X .5 X .5 X .5 X .5 = 1.56%

Developing Effective Communications

Identify target audience

Determine objectives

Design communications

Select channelsEstablish budget

The Basics

Identify the Target Audience

Potential Buyers

Current Users

Deciders or InfluencersDetermine Objectives

Brand Purchase Intention

Category Needs

Positive

Negative

Brand Awareness

Brand Attitude

Design Communications

How to say it? (Creative Strategy)

What to say?(Message Strategy)

Who should say it? (Message source)

Select Channels

Personal Communications

NonPersonal (Mass) Communications

Establish Budget

Affordable Method

Percentage-of-Sales

Competitive-Parity

Objective-and-Task

Marketing Communications Mix

Characteristics

Factors

Measuring

Factors in Setting the Mix

Type of Product Market

Buyer-Readiness Stage

Product Life-Cycle Stage

Figu

re 1

7.4

Cost-Effectiveness / Buyer-Readiness

Measuring Communication Results

Attitudes

FrequencyReach

Awareness

Figu

re 1

7.5

Consumer States for Two Brands

Promotion Mix Over The PLC

Time

IndustryIndustry SalesSales

Dollars

Introduction Growth Maturity DeclineIntroduction Growth Maturity Decline

0

PublicityAdvertising

AdvertisingPR; Selling;Promotions

AdvertisingPR; Selling

AdvertisingPromotions;Selling

Objectives of communication

PROVIDE INFORMATION

• Goal is informing the market about the availability of a product.

INCREASE DEMAND

• May increase primary demand, or desire for a particular product category.

• May increase selective demand, or desire for a specific brand.

ACCENTUATE THE PRODUCT’S VALUE

• Greater value helps justify a higher price in the marketplace.

• Marketers advise staying away from these words—quality, value, service, caring, and integrity—because they are overused and vague.

DIFFERENTIATE THE PRODUCT

• Differentiation allows firms more control over marketing variables such as price.

STABILIZE SALES

• Can help make demand more consistent throughout the year.

Making Brand-Level Marcom Decisions and Achieving Desired Outcomes

Steps in Developing Communication Program

Promotional Program Situation Analysis

Analysis of the Communications Process

Budget Determination

Develop Integrated Marketing Communications Programs

Review of Marketing Plan

AdvertisingSales

PromotionPR/

PublicityPersonalSelling

DirectMarketing

AdvertisingObjectives

SalesPromotionObjectives

PR/Publicity

Objectives

PersonalSelling

Objectives

DirectMarketingObjectives

MessageStrategy

SalesPromotionStrategy

PR/PublicityStrategy

PersonalSelling

Strategy

DirectMarketingStrategy

Integration & Implementation of Marketing Communications Strategies

Monitor, Evaluate & Control Promotional Program

Internet/Interactive

Internet/InteractiveObjectives

Internet/InteractiveStrategy

Integrated Marketing Communications Planning Model

IMC Program Situation AnalysisExternal Factors

Environmental analysis– Technological Political/Legal– Demographic Socio/Cultural– Economic

Competitive Analysis– Direct and indirect competitors– Position relative to competitors– Size of competitors’ advertising/

promotional budgets– IMC strategies being used by competitors

Analyze best combination of source,

message and channel factors for

communicating with target audience.

Establish communication goals and objectives.

Potential Communications Objectives

Sales

Customer loyalty

Company image

Brand image

Store patronage

Service contract

An inquiryA visit by a prospectProduct trialRecommendationAdoption of the product

AIDA: Attention? Attention-> Interest-> Desire ->ACTION!!! It gets harder as you go….

Attention (e.g., sign-flippers, clowns) Headline (New York Post; only part read) Visuals (sex) Layout Colors Size (Times Square) Electronic: sound; music; animation Gross images (this nasty eyeball gets your

attention!)

AIDA: Interest? Keep Interest – difficult in “our ADD

world” Tactics:

Drama/story (Dos Equiss ) Cartoons (M&Ms) Dialog (it’s a Diet Coke Thing;

Wusssssup?)

AIDA: Desire?

Arouse desire Tactics:

USP: Unique selling proposition (Gillette razor; clear deodorant, clear soda)

Provide a rationale (“I’m worth it”) Address “you” with their

needs/problems (“Do you want to make more $?”; “Have you been injured in an

accident?”)

Federal Express: When it absolutely, positively has to be there overnight.

AIDA: Action? Action – if consumers’ desire, hope action is natural

(and realistic for them): Ask consumers to do something (log on to…; call..) Imperative: “Drink Coke,” “Fly the Friendly Skies” Facilitate: 1-800 or web Direct competitive: supplies are limited!!

Do you view ads after purchasing that product?: Why?

Marketing - Communication InstrumentsComparisson of the classical (above the line) and the “non-classical”

(below the line) communication instruments

Classical marketing- recognizable for everybody

Above The Line (ATL)

Below The Line (BTL)Alternative marketing- mainly visible only for targeted groups

Classical advertisementPrint mediaRadio / TV / MoviesOutdoor advertisement / Billboard advertisement Public relations

SponsoringEvent marketingExhibitions / Trade fairProduct placementPromotionsDirect marketingMobile marketingOnline marketing / Search enginesViral marketing / Guerilla marketing

Word of Mouth Communication HOW TO USE WORD-OF-MOUTH MARKETING (WOMM) TECHNIQUES AND SOCIAL MEDIA TO DRIVE GROWTH BY CREATING A POSITIOVE BUZZ AROUND YOUR PRODUCT OR SERVICE.

ONLY 18% OF TV ADS GENERATE POSITIVE ROI

84% OF B2B CAMPAIGNSRESULTED IN LOWER SALES

100% INCREASE IN AD SPENDING

JUST TO ADD 1% - 2% IN SALES

ONLY 14% TRUST ADS…the JESUS PHONE rocks!

…the JESUS PHONE rocks!

..I got to have an phone

..I got to have an phone

LAW OF FEW10% INFLUENCE PURCHASING

BEHAVIOR OF OTHER 90%

91% LIKELY TO BUY ON RECOMMENDATION

BRAND ADVOCATES

AVERAGECUSTOMERS,CLIENTS,CONSUMERS

WOMM = C2C CONVERSATION

Consumer-to-consumer conversation

76% of consumers don’t believe that companies tell the truth in

advertisementsYankelowich,2006

Multi-Channel-Marketing Display of different marketing channels

Personal Sales

Database Marketing

Direct Mail Marketing

Telemarketing

Social Media

E-Mail Marketing

Search Engine Marketing

Online Advertising

Mapping Customer experience

Customer experienc

e elements

Getting to know

Buying Activating

Using Paying Contacti

ng

Customer expectatio

ns

Functional areas

•Brand awareness•Offer availability•What ? And where

•MAKT•Sales •Customer service

•Offer Availability •Value of money •Acquisition

•MAKT•Logistic •Sales •Customer service •IT

•Usability •Coverage•Reliability • Quality •Roaming

•Speed•Convinced•Getting started

•MAKT•Sales •Customer service •Network •IT•Portals

•Network •IT•Customer service

•Accuracy• Control•Choice •Convinced

•Sales •IT•Customer service

Leaving

•Responsiveness •Friendly Consistency•Helpfulness•Resource fullness •Customer service•Sales •IT •Portals

•Flexibility •Loyalty

•MAKT•Sales •Customer service•IT

Branded Customer experience

Brand essence Translates into

Brand promise Translates into

Branded Customer experience (BCE)

•What you communicate to the marketplace

•The value you commit to deliver to customers

•Delivery of your brand promise through every interaction your customer have with your people , processes and products

Tow routes to create branded customer experience

Experiencing the brand Branding the experience

Different in starting point

Experiencing the brand

Market Opportuni

ty

Conceived customer

VP

Create customer experienc

e

Develop the route to market

Design the brand to

communicate

Customer realization of the

BCE

Branded Customer experience

Branded customer experience

Translates into

Brand value Translates into

Brand image

•Creating a unique experience through every interaction your customers have with your people , processes and product

•The value your customers come to expect and rely on

•What you become known for in the marketplace

Branding the experience

Is powerful driver of customer loyalty

5steps

To Customer Centric Retail Innovation

1. Take the Customer Perspective2. Get the Customer Heartbeat3. Focus Your Efforts4. Make Sure your People Are With You5. Start Swimming

#5 START SWIMMING

YOU

CUSTOMER PERSPECTIVE

Flipchart TimeWhich are the steps in the customer journey when booking a holiday?

How could you innovate on them?

THE CUSTOMER JOURNEY

1. I dream of going on holiday2. I research my holiday3. I plan my holiday4. I select my holiday5. I purchase my holiday6. I receive travel documents &

tickets7. I anticipate departure8. I prepare my trip9. I travel to my destination10.I discover my destination11.I experience my destination12.I record my memories13.I share my experience14.I travel back home15.I share my memories

CUSTOMER PERSPECTIVETHE CUSTOMER JOURNEY

How Can You Innovate Now?

GET THE CUSTOMER HEARTBEAT

WHICH EMOTIONS ?

ARE ALL EMOTIONS EQUALLY STRONG?

WHAT DO YOUR CUSTOMERS REALLY CARE ABOUT?

1. I dream of going on holiday2. I research my holiday3. I plan my holiday4. I select my holiday5. I purchase my holiday6. I receive travel documents &

tickets7. I anticipate departure8. I prepare my trip9. I travel to my destination10.I discover my destination11.I experience my destination12.I record my memories13.I share my experience14.I travel back home15.I share my memories

Customer Relationship Management

Your Logo

Get Quot

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1211

10

1

9

23

87 6

54

2

Prospect• Advanced• Forecastin

g

Quality• Product Catalog• Service Catalog

Quote• Integrated

Quotes/Proposals• Document Management• Document Publishing

Suspect• Mass Email• Website Hosting• Search Engine

Optimization

Lead• Lead

Dashboard• Intranet Sales

&• Marketing

Tools

Meet• Group Calendaring• Resource Availability

Order• Integrated Order

Mgmt.• Bookings Dashboard• Incentive

Management

Service Delivery• Customer Portal

• Project Tracking• Time & Expense

Repurchase• Upsell/ Cross-

sell

End of the training

building and managing brands

Business

persons gut

lower riskless

products featuressatisfied

choosing brand

distinctive

implementing

build brand

building brand