hed 460 everyone brands manufacturers retailers private store wholesalers services malls
TRANSCRIPT
HED 460
What is a brand? A name A symbol A product A store A promise the consumer can trust A key asset
HED 460
What is a brand? (Tangibles)
AMA – American Marketing Association “A name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other seller’s.”
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What is a brand? Cow fits definition – is it a brand? What if Mercedes becomes Dolores
– will it no longer be a brand? If Pentium becomes Intellect
(rejected candidate name), will it sell less?
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What is a brand?
Cow is not a brand, but a product class Guernsey or Holstein might represent
product forms Symbol burned into cow’s hide to
identify the cows of a particular owner is a brand
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Why Consumers use Brands
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Reasons
Facilitate
Quality
Image
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Brand as asset – (Intangibles)
Brands have equity perceived to have value beyond what
the products/services/stores they are attached to produce in sales and profits
Brands can be more lasting than assets of factories, warehouses, stores
Brands may appreciate rather than depreciate
Brands are portable
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Measuring brand equity Value stockholders place on a brand
Market share, customer loyalty, market penetration, lifetime value of a customer
Consistently deliver on their promise The Gap Home Depot Amazon.com
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What threatens brand equity?
Low or inconsistent quality Michelob (Where you’re going, it’s
Michelob) Extending into inappropriate channels Lack of innovation Not differentiating Not meeting consumer expectations
“every point of customer contact”
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Planning Brand Strategy
Know your core business Develop 3 interrelated strategies
Positioning Personality Affiliation
Communicate brand strategies
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Company performance
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Sales Profit Stock
All Retail
The Gap
Home Depot
Amazon
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1. Positioning strategy The niche a brand occupies in
consumers’ minds Maintain parity with competitors AND
differentiate Must define 3 things
target audience competitive frame of reference meaningful differentiation point
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Motel 6 positioning For frugal people, Motel 6 is a
comfortable night’s stay at the lowest price of any national chain. Target audience Competitive frame of reference Meaningful Differentiation point
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Develop positioning strategy
For (target audience), your brand is a (competitive frame of reference) that provides (meaningful differentiation point).
Is it a brand? Not just a store name.
Group members’ names – IC #5
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Positioning examples Product superiority, maintain service
Mercedes-Benz, Sony Excel in service, hold own in quality
Nordstrom, Saturn Superior use of user imagery,
adequate or strong performance Calvin Klein, Harley Davidson
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2. Create Brand Personality Strategy
Set of human traits brand portrays in its relationship with its customers
Character or personality that predicts what to expect
“that sounds like a __________ ad” Motel 6 personality strategy Deliver brand personality at every point
of contact
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3. Manage Brand Affiliation How you think others will perceive you if
they know you use a particular brand? Prevent negative or limiting perception Motel 6 example Bic example
ballpoint pens - 1950’s disposable cigarette lighters - 1970’s disposable razors - 1980’s Perfume - 1989 - “Paris in your pocket”
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For Global Against Homogenous
tastes Economies of scale Small markets get
their share Brand
effectiveness can be improved
Local market tastes/pref. ignored
Choices and effectiveness diluted for global appeal
Local regulations and restrictions
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Cyberbranding Strong brand can provide powerful
advantages, esp. initially Branding is more complex
creating an experience that potential buyers interact with
Reach and interactivity are increased
Victoria’s Secret example
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Brand Extension New products
Williams-Sonoma’s Pottery Barn catalog launched Pottery Barn Kids
L.L. Bean launched L.L. Home New customers
Abercrombie & Fitch launched abercrombie New formats
Avon to Avon.com, mall-based kiosks, Avon spa
Delia’s direct marketer, stores, Internet
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Brand Extension
New Channels Starbucks, license with Kraft for
supermarkets New Businesses
Tesco now offers natural gas to customers Nordstrom is into financial services
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Rational Branding
Something of value is given in exchange for information
Build your own…...