BRANDMANAGEMENT

WEEK22

IntheNEWS

Vs.
Appleawardwinningadver>sements>>> MicrosoDsfailedresponse>>> MicrosoDswinningresponse?>>>

Building BRAND EQUITY

SUSTAINING BRAND EQUITY

BRAND EQUITY
MEASURING BRAND EQUITY

Todayslearningobjec>ves
Understandtheimportanceofbrand posi>oning Understandhowbrandelementscontribute tobuildingbrandequity Beabletomakeinformedchoicesonhowto combineelementsofabrand

1.BRANDPOSITIONING 2.CHOOSINGBRANDELEMENTS

BrandPosi>oning
Theheartofthemarke>ngstrategy ...theactofdesigningthecompanysoer andimagesothatitoccupiesadis>nctand valuedplaceinthetargetcustomersminds. PhilipKotler

Determiningaframeofreference
Whataretheidealpointsofparityandpoints ofdierencebrandassocia>onsvisvisthe compe>>on? Marketersneedtoknow:
Whothetargetconsumeris Whothemaincompe>torsare Howthebrandissimilartothesecompe>tors Howthebrandisdierentfromthem

Awardwinningbrandposi>oning

TargetMarket
Amarketisthesetofallactualandpoten>albuyers whohavesucientinterestin,incomefor,and accesstoaproduct. Marketsegmenta>ondividesthemarketintodis>nct groupsofhomogeneousconsumerswhohavesimilar needsandconsumerbehavior,andwhothusrequire similarmarke>ngmixes.

Exampleofthetoothpastemarket
Fourmainsegments:
Sensory:Seekingavorandproductappearance Sociables:Seekingbrightnessofteeth Worriers:Seekingdecaypreven>on Independent:Seekinglowprice

CriteriaforSegmenta>on
IdenAability:Canweeasilyiden>fythesegment? Size:Isthereadequatesalespoten>alinthesegment? Accessibility:Arespecializeddistribu>onoutletsand communica>onmediaavailabletoreachthesegment? Responsiveness:Howfavorablywillthesegmentrespondtoa tailoredmarke>ngprogram?

PointsofParityandPointsofDierence
Pointsofdierence(PODs)area_ributesorbenetsthat consumersstronglyassociatewithabrand,posi>vely evaluate,andbelievethattheycouldnotndtothesame extentwithacompe>>vebrand(cf.USP) PointsofparityassociaAons(POPs),ontheotherhand,are notnecessarilyuniquetothebrandbutmayinfactbeshared withotherbrands.

BrandPosi>oningGuidelines
Twokeyissuesinarrivingattheop>mal compe>>vebrandposi>oningare:
Deningandcommunica>ngthecompe>>ve frameofreference Choosingandestablishingpointsofparityand pointsofdierence

ChoosingPOPs&PODs
Desirabilitycriteria(consumerperspecAve)
Personallyrelevant Dis>nc>veandsuperior Believableandcredible

Deliverabilitycriteria(rmperspecAve)
Feasible Protable Preemp>ve,defensible,anddiculttoa_ack

A_ributeandBenetTradeos
Priceandquality Convenienceandquality Tasteandlowcalories Ubiquityandpres>ge Strengthandrenement

BrandMantras
Anar>cula>onoftheheartandsoulofthebrand similartobrandessenceorcorebrandpromise Shortthreetovewordphrasesthatcapturethe irrefutableessenceorspiritofthebrandposi>oning andbrandvalues Considera>ons
Communicate Simplify Inspire

DesigningtheBrandMantra
EmoAonal Modier DescripAve Modier
AthleAc

Brand FuncAons
Performance

Nike

AuthenAc

Disney

Fun

Family

Entertainment

Fun

Folks

Food

BrandElements
Toolsforbuildingbrandequity

BuildingCustomerBasedBrandEquity
Brandknowledgestructuresdependonthe ini>alchoicesforthebrandelements: Brandnames,logos,URLs,symbols, characters,spokespeople,slogans, jingles,packages,andsignage.

CriteriaforChoosingBrandElements
Memorability Meaningfulness Likability Transferability Adaptability Protectability
Marketersoensivestrategy andbuildbrandequity

Defensiveroleforleveraging andmaintainingbrandequity

Memorability
Brandelementsshouldinherentlybe memorableanda_en>ongefng,and thereforefacilitaterecallorrecogniAon.

Memorability

Shell Designedby Raymond Loewy,in 1971.

WWF Designedby SirPeter Sco_,in 1961.

Apple Designedby Regis McKenna Adver>sing, in1977.

Bayer Designedby Bayer,in 1904.

Mitsubishi Motors Designedby Yataro Iwasaki,in 1870.

Meaningfulness
Brandelementsmaytakeonallkindsofmeaning, witheitherdescrip>veorpersuasivecontent. Twopar>cularlyimportantcriteria
Generalinforma>onaboutthenatureoftheproduct category Specicinforma>onaboutpar>culara_ributesand benetsofthebrand

Therstdimensionisanimportantdeterminantof brandawarenessandsalience;thesecond,ofbrand imageandposi>oning.

Meaningfulness

Meaning

Xerox
Old

New

Olympics2012
London

China

400,000

AnimalPlanet
New

Old

ThenameLexushasbeena_ributedtothewordsluxuryandelegance

Likeability
Docustomersndthebrandelement aesthe>callyappealing? Descrip>veandpersuasiveelementsreduce theburdenonmarke>ngcommunica>onsto buildawareness.

Likability

CherryGarcia ChunkyMonkey HalfBaked PhishFood

Transferability
Howusefulisthebrandelementforlineor categoryextensions?

Transferability
Towhatextentdoesthebrandelementadd tobrandequityacrossgeographicboundaries andmarketsegments?
NoVameans ItDoesntGoinSpanish

ChevyNova

Adaptability
Themoreadaptableandexiblethebrand element,theeasieritistoupdateitto changesinconsumervaluesandopinions. Forexample,logosandcharacterscanbe givenanewlookoranewdesigntomake themappearmoremodernandrelevant.

Adaptability

Protectability
Marketersshould:
Choosebrandelementsthatcanbelegally protectedinterna>onally. Formallyregisterchosenbrandelementswiththe appropriatelegalbodies. Vigorouslydefendtrademarksfromunauthorized compe>>veinfringement.

Protectability

BrandNames
Likeanybrandelement,brandnamesmust bechosenwiththesixgeneralcriteriaof memorability,meaningfulness,likability, transferability,adaptability,andprotectability inmind.

BrandNaming
FionasFlowerShop FlowerBucket FlowerMetro FlowerCart FlowerStop KaBloom!

GoodNames
Nintendo Nickelodeon Fritos Nike

TryingtoEscape

HowtoNames
ShakenPour FastShake PournFlip

Excep>ons

URLs
.com.auURLsmustbeotherwise substanAallyandcloselyconnectedto"your registeredbusinessname,companyname, bodyname,ortrademark E.g.,BarnesandNobel

www.bn.com.au
www.australiaslargestonlinebookstore.com.au

LogosandSymbols
Playacri>calroleinbuildingbrandequityand especiallybrandawareness Logosrangefromcorporatenamesor trademarks(wordmarkswithtextonly) wri_eninadis>nc>veform,toen>rely abstractdesignsthatmaybecompletely unrelatedtothewordmark,corporatename, orcorporateac>vi>es

LogosandSymbols
Literal

LogosandSymbols
Font,nologo

LogosandSymbols
Monogramdesigns

CanadianNaAonalRailway

LondonSymphonyOrchestra

Logosfollowtrends
Supernova

Logosfollowtrends
Foldover

Logosfollowtrends
Globalexpansion

Logosfollowtrends
Loops

Characters
Aspecialtypeofbrandsymbolonethat takesonhumanorreallifecharacteris>cs

Slogans
Slogansareshortphrasesthatcommunicate descrip>veorpersuasiveinforma>onabout thebrand. Slogansarepowerfulbrandingdevices because,likebrandnames,theyarean extremelyecient,shorthandmeanstobuild brandequity

ClassicSlogans
Meltsinyourmouth,notinyour hands(M&Ms) Justdoit(Nike) ThatwaseasyStaples

CleverSlogans
"Ifyoudon'tseewhatyou'relookingfor,you've cometotherightplace."

"7dayswithout pizzamakesone weak." "Werepairwhat yourhusband xed."

Jingles
Jinglesaremusicalmessageswri_enaround thebrand.Typicallycomposedbyprofessional songwriters,theyoDenhaveenoughcatchy hooksandchorusestobecomealmost permanentlyregisteredinthemindsof listenerssome>meswhethertheywant themtoornot! Jinglesareperhapsmostvaluablein enhancingbrandawareness.

Jingles

DFlat,DFlat,GFlat,DFlat,andAFlat.

Therstnoteisactuallyamixof16dierentsounds, includingtambourineandhammerhifngabrasspipe

Packaging
Fromtheperspec>veofboththermand consumers,packagingmustachieveanumber ofobjec>ves:
Iden>fythebrand Conveydescrip>veandpersuasiveinforma>on Facilitateproducttransporta>onandprotec>on Assistathomestorage Aidproductconsump>on

Packaging:DoubleSales
Goal:Improvefreshnessand convenience Backstory:ADermonthsofinhome research,KraDdiscoveredthatits customersoDentransferredChips Ahoycookiestojarsforeasyaccess andtoavoidstaleness.Thecompany solvedbothproblemsbycrea>nga patentedresealableopeningonthe topofthebag. Bo]omLine:SincelaunchinginJuly 2005,it'srakedinmorethan$44 millioninsales,accordingtoresearch rmIRI,nearlydoublingsalesofthe olderpackaging.

Packaging:DoubleSales
Goal:Makeacommonhousehold productunique Backstory:Americansspendmoreon homedecorduringtheholidaysthan atanyother>me,solastseason KimberlyClarkintroducedanoval shapedKleenexboxthatwasaclear departurefromitsusualrectangular shapes.Thegoalwastoposi>onthe productasamusthaveaccessory ratherthanafunc>onalitem. Bo]omLine:Itwasthecompany's bestsellingholidaylineinhistory,with salestwicethoseofthe2004season. KimberlyClarkfolloweditwith seasonaldesignsforspring>me.

Packaging:DoubleSales
Goal:Standoutonstoreshelves Backstory:WhenProcter&Gamble's Crestsetouttodevelopapremium whiteningproductin2003,designers avoidedcrea>ngyetanother horizontal,graphicsheavytoothpaste box.Instead,theyturnedtothe beautyaisleforinspira>on."Wedrew uponthever>calpackagingandthe deepmetallicblueusedtoconvey 'premium,'"saysdesignmanagerGreg Zimmer. Bo]omLine:Cresttoothpastesales roseby5percentin2005,while compe>torColgate'ssalesfell6 percent,accordingtoIRI.

Packaging:DoubleSales

MazolaPurebo_le Goal:Communicateabrandiden>ty Backstory:LastAugust,Mazolashook upthe47yearoldpanspraymarket withthedebutofitsalcoholfreeoil, whichaimedtoprotfromthe growingtrendinorganiccooking.But thecompanyknewthatshoppers wouldn'tdiscoverthehealthconscious brandifitencasedtheproductin anothersteelcylinder.ADer consideringhairsprayanddeodorant bo_les,Mazola'sdesignersse_ledon acurvyplas>ccontainerwithaneye catchingiridescentnish. Bo]omLine:Theitemovertook establishedbrandstobecometheNo. 2spray.

Packaging:DoubleSales

HeinzKetchupupsidedownbo_le Goal:Increasefunc>onality Backstory:Heinzrevolu>onizedthe 170yearoldindustryin2002whenit introduceditsinvertedbo_le (consumershadcomplainedforyears abouthowharditwastosqueezeout thatlastbitofketchup).The Pi_sburghbasedcompanyspentthree yearsdesigningtheconvenient container,whichisequippedwitha vacuumcapthatstopsirrita>ng crus>nessfromformingaroundthelid. "Companiesmakealotofmoneyby makingthingslessannoying,"Panjabi says. Bo]omLine:AyearaDerthebo_le's debut,Heinzketchupsalesrose6 percent,whiletheoverallketchup industryincreasedonly2percent.

PackagingCanInuenceTaste
Oursenseoftasteandtouchisvery sugges>ble,andwhatweseeonapackage canleadustotastewhatwethinkweare goingtotaste.

PackagingCanInuenceConsump>on Studiesof48dierenttypesoffoodsand personalcareproductshaveshownthat peoplepourandconsumebetween18%and 32%moreofaproductasthesizeofthe containerdoubles.

PufngItAllTogether
Theen>resetofbrandelementsmakesup thebrandiden,ty,thecontribu>onofall brandelementstoawarenessandimage. Thecohesivenessofthebrandiden>ty dependsontheextenttowhichthebrand elementsareconsistent.

SUMMARY
Throughtheselec>onofaposi>oningstrategy,marketerscan inuencetheknowledgestructuresconsumershavefora brand. Posi>oningabrandinvolveschoiceofatargetmarket,a compe>>vearena,andthesetsoffeaturesandassocia>ons inwhichabrandisgoingtobesimilartoanddierentfrom itsrivals. Brandelementsshouldbememorable,meaningful, transferable,adaptableandprotectable. Thebrandbuildingpoten>alofbrandelementscanbe gaugedbyaskingconsumerswhattheywouldthinkaboutthe productiftheyknewonlyitsname,logo,andotheriden>ty characteris>cs.

Building BRAND EQUITY 35

NEXTWEEK: Designing Marke>ng ProgramstoBuild BrandEquity Integra>ng Marke>ng Communica>ons andLeveraging SecondaryBrand KnowledgetoBuild Brand Equity

SUSTAINING BRAND EQUITY 710

BRAND EQUITY
MEASURING BRAND EQUITY 6