Customer and International Market Analysis

MBA

Brands and Brand Values

 Customer and International Market Analysis
MBA

Re-cap on the product

element of the marketing mix
and an introduction to brands
 What is a Brand?
Definition:
“A name, term, sign, symbol, design, or
combination of them which is intended to
identify the goods and services on one seller or
group of sellers and to differentiate them from
those of competitors.” (Kotler et al. 1999)

 Types of Brands – manufacturer’s brand, own brand,

licensed brand, co-brand
 Brand strategies – individual branding, line branding, brand
extensions, new brands, brand re-positioning

A Brand is more than a logo

Reasons for Branding (for consumers, manufacturers and retailers)
Sign of ownership (legal device)
Supports product differentiation and creation of
competitive advantage
Supports higher margin
Facilitates self-selection (shorthand device)
Encourages brand loyalty
Allows for a brand extension strategy
 A brand is a seller’s promise, it can confer:
Attributes - the brand brings to mind attributes
of the product (quality, design etc.)
Benefits - attributes are translated into
functional and emotional benefits (feel good or
right choice issues)
Values - the brand says something about the
producer’s values (quality, green)
Culture - the brand may reflect a certain culture
Personality - the brand projects a certain
personality (the boss, friendly etc)
For B2B Marketing the company is the brand – the
company image and reputation are pivotal for success
 Effective Brand Names
The brand name should be:
Simple – short names easy to read and understand
Distinctive – unique sound, novelty value to generate
attention e.g. Kodak
Meaningful – communicate consumer benefits e.g.
Lean Cuisine. Support the positioning strategy and be
creative
Compatible with the product – re-inforces
meaningfulness e.g. Timex
Emotion provoking (works for some products) e.g.
perfume “Poison” & “Opium”
Legally protected
Customer and International Market Analysis
MBA

The meaning of brands

and brand value
 How (we think) Branding Works

• Advertising must communicate what the brand does and what it means
What sort of person uses each of the
following brands?
Brand Name Typical Brand User Image
Volvo
Starbucks
Lidl
Apple ipad
Calvin Klein
Nike
Rolex

Compare and contrast the typical band user’s image

 Group Exercise -
• See the two branding clips below and discuss;
• What contributes to creating a successful brand?
• Are the requirements of a successful brand
different for different sized companies?

Virgin Branding

Branding for Small Businesses

Customer and International Market Analysis
MBA

Benefits of branding and

brand equity
 Brand Equity
Definition - “A set of brand assets & liabilities linked to a
brand, its name and symbol, that add or subtract from
the value provided by a product or service to a firm and/
or that firm’s customers.” (Aaker 1991)
Everything the firm says and does affects brand equity !

Brand Equity Factors

* Brand Loyalty * Name Awareness * Other Assets
* Perceived Quality * Brand Associations
• Strategic benefits – higher customer satisfaction, reduced
consumer defection, higher margins, “halo” platform for
brand extensions and NPD, competitve edge, barrier to entry,
lower promotional costs
The Power of Brand Equity
Brand Preference
Blind Brand
Tests Revealed
Diet Pepsi51 % 23 %
Diet Coke44 % 65 %
Same/ Not sure 5 % 12 %
100% 100%

 Brand equity is a central construct in the strategic

management of brands.
Brand Equity: Financial perspective
Companies can sell for 20:1 of firms earnings

Strong brands = less risk

Greater likelihood of a solid income stream
Higher market share leading to higher price/lower costs
and less price elasticity
 Better margins higher ROI
More effective distribution
Shelf space
Pulled through the chain by consumers leading to
retailer and wholesaler demand
Customer and International Market Analysis
MBA

Brand management in a
digital world
 Brand Management
Branding is a major component of strategy
The ability to develop and nurture effective
brands is probably the single most important
skill set within the marketer’s professional
toolkit
Brand management established in many
consumer goods companies as way to manage
all aspects of the marketing mix.
 Branding management in the digital age
Connectivity
Social media
Service and value in use

Branding and the CEO Customer

 Summary
Strategic Brand Management not only requires
understanding of brand costs and profits but also
consumer perceptions of brand meaning, image and value
Tactical decisions must never be attempted without a
clear understanding of the perceptual implications of
those decisions
 The company that regularly assesses its brand equity will be
in a better position to maintain its relevance with its target
markets and ensure not only its long-term brand survival, but
also its profitability and market leadership
 A successful Brand - “adds value”, has a unique positioning
concept (differentiated), is consistent and reliable over time, is
often innovative, lives its brand values and delivers on
promises.
Source; West et al 2006