Week 2

Part 2

Developing Brand Strategy

● A thorough understanding of the company’s CUSTOMERS, competitors, and business strategy.

● It’s the customer that drives a brand’s VALUE.

● Brand strategies need to be based on a powerful segmentation strategy, as well as in-depth knowledge of customer motivations.

What Brand Identity Requires

Establishing Consumer Based Brand Equity

CBBE

● The differential effect that brand knowledge has on consumer response to the marketing of that product:● Customers might be more accepting of a new brand extension

for a brand with positive CBBE, less sensitive to price increases, and withdrawal of advertising support, or more willing to seek out the new product through new distribution channels.

● Brand equity as a BRIDGE: Consumer knowledge drives the differences that manifest themselves in terms of brand equity. Brand equity gives marketers a vital strategic bridge from their past to their future.

● Brands encompass past marketing efforts as collective investment in what consumers learned, felt, and experienced about their brands.

● Past brand efforts provide a map to the future.

The CBBE Model

● According to the CBBE model, the following four steps represent fundamental questions that customers will ask about your brand:

● Who are you? (brand identity)

● What are you? (brand meaning)

● What do I think/feel about you? (brand response)

● What kind of association and how much of a connection would I like to have with you? (brand relationships)

4 Steps to Building CBBE

● Key to creating brand equity is creating a difference between your products and your competitors in your customer's ANMM.

● ANMM is a GREAT model to show how your and your competitor's brands exist in your customer's memory.

● Associative Network Memory Model: network of nodes (stored information) in our brains and links representing the strength of/ association between the information.

Brand Knowledge - ANMM

●Brand image is the consumers’ perceptions about the brand, as reflected by the brand associations held in the consumer memory.

Brand Knowledge

Want to Buy a Motorcycle?

• Short phrases that communicate descriptive or persuasive information about the brand.

• Powerful branding devices…

Slogans

“To protect and to serve.”

“Be all that you can be.”

“The greatest showon earth.”

“Don’t leave homewithout it.”

“Think different.”

“Melts in your mouth,not in your hands.”

Sample Marketing Campaign: The

Creative & Implementation

You’re Not YOU

When You’re Hungry

Mazda SkyActiv Brand

Mazda SkyActiv Brand

Mazda SkyActiv Brand

• Create unique aspects of the brand on one or more dimensions important to the customer (convenience, price, variety)

Building a Brand

B2B Branding

• Where does your firm’s USP, what is its target market, position in value chain strategy for delivering superior value?

• How does your brand fit in the organizational buying process?

• Emphasize your corporate brand.

• Build your brand around intangibles (expertise, trustworthiness, credibility.)

• Distinguish your brand strategy from corporate communications.

B2B Branding

• Apply segmentation analysis.

• Build your brand using multiple media (trade shows, professional journals.)

• Top-down and bottom-up.

• Educate entire organization on your brand strategy.

B2B Branding

People Are Brands

People Brand

People Brand

Cause Based Marketing

Cause Based Marketing

Organizations Brand

• Savvy customers

• Brand proliferation

• Media fragmentation

– Cost

– Clutter: 10-15 second spots join :30 & :60 spots

– Fragmentation: Growth of independent stations & cable

– Technology: VCRs, Remote controls, TiVo

• Increased competition

• Increased costs

• Greater accountability by marketers to hit short-term profit goals

Today’s Branding Challenges

Brand Equity

• You achieve different outcomes from the “added value” attributed to a product as a result of marketing the brand.

• You can create value for the brand in many different ways.

• Brand equity provides a common denominator for interpreting marketing strategies and assessing the value of a brand.

• There are many different ways in which the value of a brand can be exhibited or exploited to benefit the firm.

Brand Equity

“…it is not factories that make profits, but relationships with customers,

and it is company and brand names which secure those relationships.”

• Designing and implementing marketing programs and activities to build, measure and manage brand equity. Four MAIN steps:

– Identity and establish brand positioning

– Plan and implement brand marketing programs

– Measure and interpret brand performance

– Grow and sustain your brand equity

Strategic Brand Management

The 4-Step StrategicBrand Management

Process

• Identify & establish the brand’s position:

– The act of designing the company’s offer + image so that it occupies a distinct and valued place in the customer’s mind such that the potential benefit to the firm is maximized.

– Determine what it is going to “REPRESENT.”

STEP 1

– Decide how to position it to consumers.

– Create your brand’s superiority in the minds of consumers.

– Convince consumers of the advantages or points of difference your brand has over the competition.

– Remove any potential customer concerns @ possible product disadvantages (points of parity.)

STEP 1

Plan & implement brand mktg programs:

– Create your product (brand) that consumers are aware of and which they have strong, favorable, and unique brand associations. Depends on 3 factors:

• How you choose brand elements/identities that make up the brand and how they get mixed & matched

• All of the marketing efforts and supporting programs and how the brand is built into them

• All of the other connections indirectly transferred to or leveraged by the brand as a result of linking it to some other entity (like the company, country of origin, methods of distribution, or other brands)

STEP 2

Measure & interpret brand performance:

– Best accomplished by using a brand audit: an examination of the brand to gauge its health, uncover sources of equity, and suggest ways to improve/leverage that equity.

– Leverage a tool called the brand value chain, to trace the value creation process for brands, to better understand the financial impact of brand marketing expenditures and investments.

– Design and implement a brand equity measurement system of research procedures designed to provide timely, accurate and actionable information for marketers to make the best tactical decisions.

STEP 3

Grow and sustain your brand equity:

– Define the branding strategy to create guidelines about which brand elements to apply to its products/services:

• Brand-product matrix

• Brand hierarchy

– Manage your brand equity over time: demands that you take a long-term view of all your marketing decisions by maximizing all your SHORT-TERM marketing mix actions (5Ps)

– Manage brand equity across geographic boundaries, cultures and market segments

• Factor into your brand different types of consumers in developing your branding and marketing programs.

STEP 4

For Discussion

How does technology

change the way marketers

engage customers?

The 7Cs to Building

WORLD-CLASS

Websites

• The interface (website) is the visual and virtual representation to communicate the firm’s value proposition.

• Provides significant information to existing and prospective clients.

• Successful design is critical to answer questions, engage visitors, and create compelling online experiences.

• Should attract target segment customers AND deter non-targeted visitors.

The 7Cs

• CONTEXT: Captures the aesthetics and functional “look and feel” of the website.

• CONTENT: All the subject matter contained on the site.

• COMMUNITY: A set of interwoven relationships built upon shared interests. Can create content or services that attract consumers to the website.

• CUSTOMIZATION: a site’s ability to modify itself to– or be modified by– each user.

The 7Cs

• COMMUNICATION: the dialog that unfolds between the site and visitors takes 3 forms:

– Firm to user (ex. email messages)

– User to firm (ex. customer service request)

– User-to-user (ex. instant messaging)

• CONNECTION: All of the links between the website and other sites.

• COMMERCE: the transactional capacity of the site. The selling of products, shipping, payment options, check out and order confirmation.

The 7Cs

IS Your Website Worth Visiting?

64

• Every Page Needs a Link to a Lead Form

• Banner Advertising (Cost per Click vs. Cost per Acquisition?)

• Multiple Languages

• Success Stories, Testimonials, Case Studies

• Custom Landing Page For Ea. Promotion

• How Easy To Navigate?

• Update Product Information Continuously

The Chazin GroupYour Website

74

Hunter Or Farmer?

The Chazin Group

76

Are you a TAKER or a GIVER?

The Chazin Group

79

The Chazin GroupSeek New Markets

80

Be Focused, Set Goals, Hold Yourself Accountable, “Own”

Your Career

The Chazin Group

81

• How Long Does It Take to Follow Up on a Lead? Set a Company Policy

• Ask All Leads: How Did You Hear About Us?

• Use Campaign Specific Reference Codes

• Apply Unique Tel #s For Each Campaign to Track Results

• Utilize a Lead Capture/Management System

The Chazin GroupProspecting

82

• Develop a Strategic Networking Plan For Identifying, Engaging and Converting Prospects

• Create a BEST Customer Profile

• The ABC’s of Selling (Always Be closing) Versus Relationship-Building

• USP or UVP?

• Launch a “Give to Get” Referral Strategy

The Chazin GroupSeek New Markets

83

Where Are Your Referrals?

The Chazin Group

84

• For Small Businesses New Business Comes One of 3 Ways: 50% Existing Relationships

35% Referrals 15% Advertising

The Chazin GroupThe Power of Referrals

85

Expand Your Offerings

The Chazin Group

• Create Action Plan to Develop Apostles– Conduct needs assessment

– Develop set of CUSTOMIZED solutions

– Convince client to implement your recommendations

– Review annually

– Target of 12

Gaining Apostles

• Three Steps to Gain Apostles:– Write down the names of your apostles

– Write down what it takes to keep them

– Write a list of clients to convert to apostles:• 2X the Actual # Current Apostles

• Follow Actions From Previous Step

• Convert 50% Per Year Until Magic 12

Gaining Apostles

• Learn Your Prospect/Client’s Top Pain Points

• What Challenges Do They Face

• Deliver Value at Every Stage of the 4-Step Sales Process

• Exceed Their Wildest Expectations

• Empower Every Employee to do the Same

• Account Penetration Strategy

• Create Policy of “Standards of Care”

Selling Best Practices

• Follow Customer Conversations Online

• Align Sales, Marketing, & Product Management

• Touch Them Several Ways

• Focus Your Presentations in Their Problems

• Become More Visible:– Attend Shows & Conferences

– Write Articles

– Facilitate Roundtables

Selling Best Practices

90

Negotiate for Success

• Control Your Emotions and Ego

• What’s Really Important Here

• Weigh ALL Your Options

• Are Your Being Fair & Reasonable

• Focus on the Merits, not Conflicting Positions

• Use OBJECTIVE Criteria, Not SUBJECTIVE

Negotiate for Success

• Objective Criteria Includes:– Precedent

– Traditions

– Cost

– Market Value

– Professional Standards

– 3rd Party Opinions

Negotiate for Success

• Be Flexible, Adjust Your Tactics to the Other’s Tactics

• Confront the Other Side When You Think They’re Playing a Game

• Silence is GOLDEN$$$

• Never Threaten Unless The Threat’s REAL

• Be Prepared to Walk Away

Negotiate for Success

94

Partnerships Revisited

95

• Re-assess Your Relationship Terms

• Investigate Your Partner’s Credit Worthiness

• Identify/Execute M&A Opportunities Quickly

• Pursue More Equitable Revenue Splits

• Find New Sales Channels With Agents & Resellers

• Learn All You Can About Your Partners

• Barter For Service In Lieu of Payments

The Chazin GroupPartnerships Revisited