Strategic Brand Management

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Strategic Brand Management

• Chapter 1

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What is a Brand?

• Old Norse word brandr to burn.
• AMA Name, term, sign, symbol, or design, or a
  combination of them, intended to identify the
  goods and services of one seller or group of
  sellers and to differentiate them from those of
  the competition.
• Branding basis people, place, animal or bird,
  scientific term, and things or objects.
• Branding contain inherent product meaning, and
  attributes or benefits.
• Branding could be done for product (physical
  good, retail store, person, organization, place,
  or an idea.
• Brand product other differentiating
  dimensions (physiological and psychological)

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Product Levels?

• Core benefits fundamental need or want.
• Generic product basic offering.
• Expected product normal expectation from a
  product in the market.
• Augmented product differentiating and
  distinguishing attributes, benefits, or related
  service.
• Potential product ideal and in future.

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Branding - benefits?
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Branding is Universal (anything can be branded)

• Commodity Chicken, Coffee, salt, fruits,
  vegetables, water, etc.
• Physical good - Consumer products Business to
  Business High-tech products.
• Services KPMG, Citi, Airlines, Energy firms,
  etc.
• Retailers and distributors Sears, Wal-Mart,
  private or store brands.
• On-line product and services google, e-bay,
  etc.
• People and Organizations Paul Newman.
• Sports, Arts, and Entertainment Cowboys?
• Geographic Locations Australia, Alaska.
• Ideas and Causes Red Cross, NRA.

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Determinants of Brand Longevity

• Vision of the mass market?
• Managerial persistence?
• Financial commitment?
• Relentless Innovation?
• Asset leveraging.

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Some Challenges

• Savvy consumers, maturing market, decreasing
  brand loyalty.
• Brand proliferation, complex brand families, .
• Media fragmentation, eroding traditional media,
  new options, changes in advertising and
  promotional expenditures.
• Increased competition, difficulty
  differentiating, private labels.
• Increased cost, increasing trade power.
• Increased accountability, job turn-over.

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Next?

• Brand Equity financial value, intangible value,
  loyalty, consumer perception, consistent
  behavior???

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Why Brand Equity?

• Positive brand equity leads to
• Loyalty
• Larger Margins
• Greater Trade Support
• More Efficient Communications / Marketing
• Resiliency to Crises
• Licensing Opportunities
• Brand Extension Opportunities
• Reduced Vulnerability to Competition
• Greater financial returns

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The Value of Brand Equity
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Brand Equity

• Sources of Brand Knowledge
• Associative node model of memory
• Brand awareness
• Brand image
• Strength of brand associations
• Favorability of brand associations
• Uniqueness of brand associations

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Corporate Awareness
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Brand Associations

• Stolichnaya
• Experienced
• Self-assured
• Successful
• Male
• Lexus
• Not-trendy

• Absolut
• Young
• Contemporary
• Flashy
• Male
• Bars
• Advertising or arts

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Evolution of Brand Elements, GE

• 1876-1960s electronics
• 1900 trademarks logo
• 1900 slogan Better Living Electronically
• 1960s General Electric -gt GE
• 1970s slogan Progress for People
• 1979 slogan We Bring Good Things to Life

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Brand Equity

• But how does one develop brand equity?
• The goal of this course is to learn how to manage
  brands (via marketing programs) in order to
  create brand equity - that is, create an enduring
  advantage for your brands.
• Strategic Brand Management Process
• Identifying and Establishing brand position and
  values.
• Planning and Implementing brand marketing
  programs.
• Measuring and interpreting brand performance.
• Growing and sustaining brand equity.

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Building Customer-Based Brand Equity
TOOLS AND OBJECTIVES
KNOWLEDGE EFFECTS
BENEFITS
Choosing Brand Elements (4)
Possible Outcome
Brand name Logo
Memorability Symbol
Meaningfulness Character
Transferability Packaging
Adaptability Slogan Protectability

Greater loyalty Less vulnerability to
competitive marketing actions and
crises Larger margins More elastic response to
price increases More inelastic response to
price increases Increased marketing communica-
tion efficiency and effectiveness Possible
licensing opportunities More favorable brand
extension evaluations
Brand Awareness (2)
Depth Recall
Recognition Breadth Purchase Consumption
Developing Marketing Programs (5 6)
Product Functional symbolic benefits Price Val
ue perceptions Distribution channels Integrate
Push Pull Communications Mix and match
options
Brand Associations (23)
Strong Relevance Consistency Favorable Desirable
Deliverable Unique Point of parity Point of
difference
Leverage of Secondary Associations (7)

Company Country of origin Channel of
distribution Awareness Other brands Meaningfulnes
s Endorsor Transferability Event
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Building Equity

• Determine brand knowledge structures
• Breadth of awareness (brand salience)
• Positioning (points of parity/difference)
• Image (strong favorable brand associations)
• Develop marketing programs
• Integrate across product lines and geographies
• Measure and control
• Feelings/judgments/loyalty

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Brand Value Brand Hierarchy Pyramid
Very meaningful in differentiating our Brand but
very difficult to deliver consistently to our
consumers
The emotional beliefs and values that consumers
feel are being addressed by our brand (CENTRAL)
Beliefs Core Values
The functional and emotional benefits that our
product/services provides to the consumer
(EXPRESSIVE)
Benefits
Easy to deliver and explain to consumers but also
easy to imitate
Features Attributes
Product/Service features and/or attributes that
must be addressed (FUNCTIONAL)
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Brand Management

• Brand management is the act of designing and
  implementing marketing programs to build and
  maintain brand equity.
• Product
• Price
• Distribution
• Communications

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The Role of a Brand or Product Manager

• Prepare Marketing Plan
• Develop Copy, Programs, and Campaigns
• Stimulate Sales and Distribution
• Market Intelligence
• Product Improvements

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The Role of a Brand or Product Manager

• Pluses
• - Cost effective mix, quick market reaction,
  attention for small brands, good training for
  executives
• Minuses
• - Conflict and frustration (responsibility and
  no authority), administrative work with executive
  expectations, learns products not functions,
  short horizon, costs of associates and assistants
  

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A Product Manager -Computer Software Firm

• Typical day
• Meetings - new product line, marketing mix,
  marketing staff, organizational design and
  integration
• E-mail/Phone - 3rd party developers, sales force,
  product support
• Marketing planning - drafting the marketing plan

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A Product ManagerComputer Software Firm

• Marketing mix - recommends price to corporate
  committee, manages advertising, conducts focus
  groups for product positioning and development,
  decides on channels

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A Product Manager -Consumer Packaged Goods Firm

• Typical day
• 75 fighting fires, 25 planning
• Marketing planning - key is volume forecasting
  since unsold inventory is perishable
• Mix - 1/3 on pricing issues (list trade), 20
  on consumer promotions, president handles ads,
  15 on distribution, little on sales and service

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A Product ManagerPackaged Goods Firm

• Marketing mix - recommends price to corporate
  committee, manages advertising, conducts focus
  groups for product positioning and development,
  decides on channels.

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Brand Management Issues
Media
Purchasing
Packaging
Promotion Services
Salesforce
Product Manager
Distribution
RD
Fiscal
Manufacturing
Legal
Publicity
Market Research
Advertising Agency
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The Nature of the Job
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Project

• Staring Point
• Brand perception about
• Brand features and attributes - awareness?
• Brand benefits needs expectations?
• Brand values - associations?

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PRODUCT LEVEL