MARKETING MANAGEMENT

Ateneo Standard MBA Program

S33 SPMARKMA. SAT 9:00am - 12:00nn.
 Session #5: Building Strong Brands

Chapter 9: Creating Brand Equity

Chapter 10: Creating the Brand Positioning

BUILDING GREAT BRANDS
By: Emilio C. Macasaet III
IN ONE WORD…
BUT WHAT’S THE BIG DEAL?
★ clarity
★ clear, clean and simple message
★ no clutter
CRYSTAL CLEAR IDENTITY

BRAND: ___________

1. Who are you?

2. What do you do?

3. Why does it matter?

TRY THIS! - BRAND MESSAGE
➤ what do we want our ➤ what do most of our
consumers to think and say consumers today say about
about (name of brand)? (name of brand)?
WHAT’S A BRAND?

it’s not a company’s logo or advertising.

those things are controlled by the company.
Note: logo is short for LOGOTYPE, a trademark made from a custom-
lettered word (LOGOS is Greek for WORD).

What people really mean is a trademark, whether a logo, symbol,

monogram, emblem, or other graphic device.
A BRAND IS NOT A LOGO

symbol

monogram

Both are trademarks but neither are logos. A logo,

or any other kind of trademark, is not the brand
itself. It’s merely a symbol for it.
WHAT’S A BRAND?

a brand is a customer’s gut feeling

about a product, service, or company.

people create brands to bring order out of clutter.

NO BRAND?
BRAND: ___________

1. Who are you?

2. What do you do?

3. Why does it matter?

You haven't got a brand if you don't have

compelling answers to all three questions.
JOHN DEERE
1. Who are you? “We’re John Deere.”

2. What do you do? “We make farm tractors and related

equipment.”

3. Why does it matter? “Generations of farmers have

trusted our equipment.”

trademark

Tagline: Nothing runs like a Deere.

BRAND MANAGEMENT: MANAGING DIFFERENCES

is a management of differences as they

exist in the minds of people.
BRAND MANAGEMENT

Our old method of judging

products - by comparing
features and benefits - no
longer works.
BRAND MANAGEMENT

what it has - features

what it does - benefits
what it makes me feel - experience
who I am - unique buying state
TODAY WE BASE OUR CHOICES MORE ON SYMBOLIC ATTRIBUTES

✴ what does the product look like?

✴ where is it being sold?
✴ what kind of people buy it?
✴ which ‘tribe’ will I be joining if I buy it?
✴ what does the cost say about its desirability?
✴ what are other people saying about it?
✴ who makes it?
TODAY WE BASE OUR CHOICES MORE ON SYMBOLIC ATTRIBUTES

the degree of trust I feel

towards the product,
rather than an assessment
of its features and
benefits, will determine
whether I’ll buy this
product or that product.
WHAT’S A BRAND?
like your personal reputation, it’s what they say it is, not
what you say it is.

the best you can do is influence it.

WHAT’S B R A N D I N G ?

branding is a company’s
effort to build lasting value
by delighting customers.
WHAT’S B R A N D I N G ?

its goal is simple:

To delight customers so that MORE

people buy MORE things for MORE
years at a HIGHER price.
WHAT’S B R A N D I N G ? brand equity

branding is a company’s
effort to build lasting value
by delighting customers.
WHAT’S B R A N D E Q U I T Y ?

brand equity is a set of assets (and

liabilities) linked to a brand’s name and
symbol that adds to (or subtracts from) the
value provided by a product or service to a
firm and/or that firm’s customers.
WHAT’S B R A N D E Q U I T Y ?

the major asset categories are:

1. brand name awareness
2. perceived quality
3. brand loyalty
4. brand associations
5. proprietary assets: e.g. channel relationships,
and patents that are attached to the brand.
WHAT’S B R A N D E Q U I T Y ?
the major asset categories are:

1. brand name awareness

2. perceived quality
3. brand loyalty
4. brand associations
WHAT’S B R A N D E Q U I T Y ?

brand awareness
refers to the strength of a brand’s presence in the
target consumer’s mind.
WHAT’S B R A N D E Q U I T Y ?
brand awareness
What are the different ways
consumers remember a brand?
DIFFERENT WAYS CONSUMERS REMEMBER A BRAND:
1. recognition - have you been exposed to this brand before?
2. recall - what brands of this product class can you recall?
3. top of mind - the first brand recalled
4. dominant - the only brand recalled
DIFFERENT WAYS CONSUMERS REMEMBER A BRAND:

1. recognition - have you been exposed to this brand before?

2. recall - what brands of this product class can you recall?
3. top of mind - the first brand recalled
4. dominant - the only brand recalled
BRAND RECOGNITION
★ recognition is remembering a past exposure to the
brand.
★ consumers instinctively prefer an item they have
previously seen to one that is new to them. When a
brand choice is made - the familiar brand will have
an edge.
★ if your brand has familiarity liability, awareness-
building is necessary.
BRAND RECOGNITION
Different ways consumers remember a brand:
1. recognition - have you been exposed to this brand before?
2. recall - what brands of this product class can you recall?
3. top of mind - the first brand recalled
4. dominant - the only brand recalled
BRAND RECALL
★ a brand (e.g. iPhone) is said to have recall if it
comes to consumer’s minds when its product class
(e.g. Smart Phone) is mentioned.
BRAND RECALL AND RECOGNITION

name 3 instant coffee brands

BRAND RECALL AND RECOGNITION
RECOGNITION VERSUS RECALL: THE GRAVEYARD MODEL
High
—————— Brand———————
Graveyard
RECOGNITION

Niche Brand

Low High

RECALL
DIFFERENT WAYS CONSUMERS REMEMBER A BRAND:
1. recognition - have you been exposed to this brand before?
2. recall - what brands of this product class can you recall?
3. top of mind - the first brand recalled
4. dominant - the only brand recalled
BRAND NAME DOMINANCE
the ultimate awareness level is a brand name
dominance where, in a recall task, most customers
can only provide the name of a single brand.
WHAT’S B R A N D E Q U I T Y ?

the major asset categories are:

1. brand name awareness
2. perceived quality
3. brand loyalty
4. brand associations
CREATING PERCEPTIONS OF QUALITY
quality products and
services are not
enough…

…perceptions must be
created as well.
CONSUMER CUES
WHAT’S B R A N D E Q U I T Y ?

the major asset categories are:

1. brand name awareness
2. perceived quality
3. brand loyalty
4. brand associations
BRAND LOYALTY
★ a brand’s value to a firm is largely
created by the customer loyalty it
commands.
★ considering loyalty as an asset encourages
and justifies loyalty-building programs
which then help create and enhance brand
equity.
BRAND VALUE (FORBES 2016)

$154.1B
$82.5B

$75.2B

$58.5B

$52.16B
THE BRAND IDENTITY SYSTEM

“Customers must recognize that you

stand for something.” - Howard Schultz
THE BRAND IDENTITY SYSTEM
★ what are my core values?
★ what do I stand for?
★ how do I want to be perceived?
★ what personality traits do I want to project?
★ what are the important relationships in my life?
THE BRAND IDENTITY SYSTEM
a brand identity similarly provides
direction, purpose and meaning
for the brand.
WHAT IS BRAND IDENTITY?
Brand identity is a unique set of brand
associations that the brand aspires to create
or maintain. These associations represent
what the brand stands for and imply a promise
to customers from the organization members.
WHAT IS BRAND IDENTITY?

Brand identity should help establish a

relationship between the brand and
the customer by generating a value
proposition involving functional,
emotional or self-expressive
benefits.
 THE GOAL OF FUNCTIONAL BENEFITS
1. Select functional benefits that have the greatest
impact with customers
2. Support a strong position relative to competitors.
However, functional benefits often fail to differentiate,
can be easy to copy and may reduce strategic
flexibility.
VALUE-PROPOSITION: EMOTIONAL
Emotional benefits provide customers with a
positive feeling when they purchase or use
a particular brand.

VALUE-PROPOSITION: EMOTIONAL

They add richness and depth

to the experience of owning
and using the brand.

VALUE-PROPOSITION: SELF-EXPRESSION
Self-expressive benefits
provide an opportunity for
someone to communicate his
or her self-image.

They heighten the connection

between the brand and the
customer by focusing on
something linked to his or her
personality.
VALUE-PROPOSITION: SELF-EXPRESSION

Self-expressive benefits focus on the

act of using the product, as opposed to
the emotional benefits associated with
the result of using the product.

SELF-EXPRESSION: FEELING COOL

SELF-EXPRESSION: RAW MASCULINITY
SELF-EXPRESSION: DISPLAY OF LUXURY
VALUE-PROPOSITION: SELF-EXPRESSION
DISTINCTION BETWEEN 3 CONSTRUCTS

Brand Image Brand Identity Brand Position

The part of the

brand identity and
How strategists
How the brand is value proposition
want the brand to
now perceived to be actively
be perceived
communicated to
a target audience
4 BRAND IDENTITY PERSPECTIVES
to ensure that the brand identity has texture and
depth, a firm should consider its brand as:

1. a PRODUCT

2. an ORGANIZATION

3. a PERSON

4. a SYMBOL
WITH WHAT PRODUCT IS THE BRAND ASSOCIATED?

a strong link to a product class means that the brand will easily
be recalled
 The Heart of the MARKETING PLAN

POSITIONING
 Components of POSITIONING

1. Primary Target Market (PTM). Identifying

characteristics (demographics, psychographics).
2. Frame of Reference (FOR). Either category
membership or competitor.
3. Point of Difference (POD). An assertion WHY the
brand is superior to alternatives in the frame of
reference.
4. Reasons To Believe (RTB). Concrete (verifiable)
claims related to the FOR and POD.
Components of POSITIONING
Components of POSITIONING
 Example: Positioning Statement

To the tradesman who uses his power tools to

make a living and cannot afford downtime on the
job (target), DeWalt professional power tools (frame
of reference) are more dependable than other
brands of professional power tools (point of
difference) because they are engineered to the
brand’s historic high-quality standards and are
backed by Black & Decker’s extensive service
network and guarantee to repair or replace any tool
within 48 hours (reasons to believe).
 Example: Positioning Statement

To the Do-It-Yourself who takes pride in

achieving a professional result when doing
home improvement projects (target), DeWalt
power tools (frame of reference) are superior
to other power tools in helping you create a
high-quality finish (point of difference) because
they are engineered for and chosen by
tradesmen, who depend on their tools to
make a living (reasons to believe).