week2 branding

8/13/2019 Week2 Branding

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Chapter 3

Brands and Stakeholder Relationships

Key Points:

What does it mean to say that a brand is more thana product?

Explain the three steps in building a brand.

What are the key factors in creating brandrelationships?

What is brand equity and how is it affected by

brand relationships?


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Marketing evolved from Economics

During 20th century, focus on exchange through

manipulating the price, promotion, distribution of

ideas, goods and services to satisfy customers and

organisational objectives Rational Consumer not swayed by image or

intangibles

Must constantly innovate, improve product quality

Brands = identification to distinguish your product

from competitors


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But now..

70% of tangible (physical) innovations

are copied by competitors within 1year

Physical attributes get you in to a marketbut are not sustainable competitive

advantage


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What brand means

A perception resulting from experiences with,

and information about, a company or a line of

products

Exists only in peoples hearts and minds

Differentiates products from competitors

Makes a promise to customers


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Brand value

Nike versus New Balance

Coke versus Cott

Laurier versus Laurentian
http://www.wlu.ca/~wwwsbe/sbe2000/index.htmlhttp://localhost/var/www/apps/conversion/tmp/scratch_9/http://www.newbalance.com/aboutus/nbindex.html


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Brand value

You believe one brand performs better

You trust the performance claims

You buy benefits not products


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Branding

Process of creating a brand image that

engages the hearts and minds of customers


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Branding

Really, at its core, branding is simply marking

something and saying, This is from me.Karl-Heinz Kalbfell, Global Head of Brand

and Product Strategy, BMW Group


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Intangible Attributes

Intangibles are important in brand building:

Harder for competitors to copy

More likely to involve consumers emotionally

Emotion triggers brain 3000x faster than rational

thought

More consistent with how consumers choose


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Brand more than a logo

Not just a name (McDonalds)

Not just symbol (golden arches)

More than identificationHow you feel and what you think when

you see the name/symbol

No brand = commodity


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New Brand definitions...

A perception of an integrated bundle of

information and experiences that distinguishes

a company and/or its product offerings from

the competition.

The sum of a customers experiences with a

product and/or company.

Tom Duncan


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New Brand definitions...

The visual, emotional and cultural image

that surrounds your association or

organization and its products and services.


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Where does a Brand come from?

Customers form perceptions from:

Cues

Signals

Other types of communication messages

Experiences

Both products and companies areconsidered brands


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Cues

Attributes provide cues to supportperceptions you want to create


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What Does a Brand Do?

Saves consumers time

Creates trust or level of expectation

Provides psychological attributes


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Brand Loyalty

What loyalty cards do you use?

What role do they play in the MC program?


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Brand Building

Building a brand is all about conveying

proof points that whatever product you pitch

is worth my attention and my hard-earned dollar

as a consumer and as a business owner.Steven Cody, Managing Partner, PepperCom


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The Brand Promise

Essence of a brand is a promise

Brand management = managing customerexpectations

Dont make promises you cant deliver


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The Coca-Cola Promise

The Coca-Cola company exists to benefit andrefresh everyone it touches.

The basic proposition of our business is simple, solid andtimeless. When we bring refreshment, value, joy and fun toour stakeholders, then we successfully nurture and protectour brands, particularly Coca-Cola. That is the key tofulfilling our ultimate obligation to provide consistently

attractive returns to the owners of our business.

http://www2.coca-cola.com/ourcompany/ourpromise.html


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Employee Marketing

Employees ultimately deliver the brand

promise every day

If corporate culture is the brand.

Then employee marketing is the branding


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Brand Equity

Two basic components determine a company ora brands value:

Physical net assets, e.g. plants, equipment,and land

Brand equitythe intangible value of a

company beyond its physical net assets


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Interbrands

Most Valuable Brands

July 28, 2006 Rankings

1. Coca-Cola $67,000

2. Microsoft 56,927

3. IBM 56,201

4. GE 48,907

5. Intel 32,319

6. Nokia 30,131

7. Toyota 27,941

8. Disney 27,8489. McDonalds 27,501

10. Mercedes 21,795

Source: www.interbrand.com/best_brands


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Canadas Most Valuable Brands

1 RBC $3,989.6

2 TD Canada Trust 3,167.9

3 Petro-Canada 3,064.0

4 Bell 2,914.9

5 Shoppers Drug Mart 2,830.6

6 Tim Hortons 1,878.2

7 BMO 1,854.6

8 Canadian Tire 1,634.2

9 Scotiabank 1,378.7

10 Telus 1,079.3

Source: www.interbrand.com/best_canadian_brands_06.asp

Rank Brand 2006 Brand Value CAD$M


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How are Brands Evaluated?

Calculate overall brand sales

Project net earnings

Deduct projected earnings from tangible assets

Use market research to isolate brand fromremaining intangible assets (e.g.patents, customerlists, etc.)


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Testing Brand Value

Conjoint Analysis

Statistical method that captures trade-offs:

service vs. price vs. features vs. brand name

Dollarmetric Scale

AMC unidentified modelasked what would

customers pay for it Identical TV sets examined by consumers

Vs.


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Five Elements of Brand Equity

Brand-name awareness

Brand associations

Perceived quality

Proprietary brand assets

Brand loyalty


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Steps in Building a Brand (V1)

1. Select a name and symbol

2. Create awareness and brand identity

3. Position the brand

4. Create a brand image

5. Create trust/build a relationshipfrom Duncan first edition


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Steps in Building a Brand (V2)

1. Select desired brand position

2. Develop brand identification

3. Create a brand imagefrom Duncan second edition


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1. Positioning

Defined by consumers

on important attributes

Place in mind relativeto competing products

Position happens -

planned or not


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Positioning

G

Against a

Competitor

Usage

Occasions

Away from

Competitors

ProductAttributes

ProductClass

Benefits

Offered

Users

BD

C

G

F

A

E


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Positioning MapLuxury Automobile Market

High Price

BMW750iL

ToyotaSupra

Nissan

300ZX

MercedesBenz 400EPorsche

Audi 325iCabriolet

Low Price

SedanSports Car

Jaguar XJSAudi Quattro

NissanInfiniti

ToyotaLexus

CadillacAllante

Ferrari

LotusTurbo Esprit


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2. Develop Brand Identification

Choose brand name

Has to be memorable

How to do this?

Benefit description

Association

Distinctive

Pronounceable


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2. Develop Brand Identification

Choose brand symbol

An effective logo:

Communicates brand image and positioning

Is simple, distinctive, and relevant

Often legally protected as trademarks


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3. Create Brand Image

An impression created by brand messages

and experiences and assimilated into a

perception or impression of the brand

E.g. Marlboro Man


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Brand Icons of the 20thCentury

1. The Marlboro Man2. Ronald McDonald

3. The Green Giant

4. Betty Crocker5. The Energizer Bunny

6. The Pillsbury Doughboy

7. Aunt Jemima

8. The Michelin Man

9. Tony the Tiger

10. Elsie the Cow

Rankings based on an Advertising Age survey


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Branding Strategies

Ways of maximizing the communication

impact of brands

Critical elements include:

Brand Extensions

Multi-tier branding

Co-branding

Ingredient branding


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Brand Personality

Anthropomorphism - giving humancharacteristics to inanimate objects

If the brand were a person, what kind of

person would it be?E.g. Mercedes vs Miata Male or Female?

Young or Old?

How would it dress?

What music would it listen to?

Where would you see it?


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Y&R Brand Asset Valuator

Proprietary 2-part model

part 1 - strength of the brand image

part 2 - brand personality scale


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Y&R Brand Asset Valuator

Differentiation

Relevance

Esteem

Knowledge

Brand

Strength

BrandStatus

BRAND

IMAGE


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Brand Personality Scale

Sincerity

Excitement

Sophistication

Competence

Ruggedness

Brand

Personality


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Is it on Brand?

Would our brand say that?Would our brand do that?

Is it consistent with our brand image and

personality?


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Communication Style Guide

Graphic Standards Manual

Gives direction for the appropriate use of the brand

or corporate identity symbols such as the logo, color

palette, and other stylistic details


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Consumers modify your brands

In the old days, the successful communication of apersonality through advertising gave the brandstable meaning. Now consumers are more proactive

in reshaping brands.Michael Solomon (Auburn)


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Successful Brands

are visiblehave clarity

are relevant

have longevity


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Brand mantra

3 words that capture the brands essence

Nike: Authentic athletic performance.

Disney: Fun family entertainment.

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