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Brand Management 1
Brand Management 1
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Buildings age & become dilapidated. Machines wear out. Cars rust. But what lives on are Brands
Sir Hector Laing
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Brand value is the extra worth engendered in customers, whose loyalty is made more secure.
The Economist (Dec.,1988)
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What you show is more important than what you say. One Brand. One Voice
David Ogilvy
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What Is a Brand?
A service
A packaging
A product
A logo
A country
A shop A person
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More than just the product or the service Add the intangible images that come to mind Add the usage occasions that come to mind Add the user imagery that comes to mind
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A brand is a promise
a sellers promise to deliver consistently a specific set of features, benefits and services to buyers. A short-hand that communicates powerfully and reduces uncertainty Differentiates goods or services from competing offerings
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Promise
If the promise is strong enough, the brand speaks for itself
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Improved perceptions of product performance Greater loyalty Less vulnerable to competition Less vulnerable to crises Larger margins Inelastic consumer response to price increases
Elastic consumer response to price decreases Greater trade cooperation Increase in effectiveness of IMC Licensing opportunities Brand extension opportunities
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Brand Management
Advantages of Branding (see also Fig.7-1, p. 286)
Consumers viewpoint 1. Product quality 2. Increased shopper efficiency 3. Calls attention to new products 4. Reduces psychological risk Sellers viewpoint 1. Handling orders, tracking down problems 2. Trademark legal protection 3. Brand loyalty 4. Reduces need for in-store contact 5. Facilitates segmentation, promotion, and pricing
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Brand Names
Brand attributes
Name
Logo
Colors
Essence Statement
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Brand attributes
Name
Logo
Colors
Essence Statement
Distinctive: Lexus/Lexis
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Brand attributes
Name
Logo
Colors
Essence Statement
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Brand attributes
Name
Logo
Changing your name will not overcome a bad strategy Consignia (Royal Mail) Monday (PricewaterhouseCoopers Consulting)
Colors
Essence Statement
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This product has been discontinued. Using the latest advancements in skin care, Olay has replaced Oil Free Active Hydrating Cream with new Olay Sensitive Moisture Therapy Cream.
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Sound or jingle
Brand attributes
Logo
Colors
Sound (jingle)
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Brand attributes
Name
Logo
Colors
Consistency Creativity
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Brand attributes
Name
Logo
Colors
Essence Statement
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Types of Brands
Generic product: item characterized by plain label, with no advertising and no brand name Manufacturers brand or National Brand: brand name owned by a manufacturer or other producer Private brands: brand name placed on products marketed by wholesalers and retailers
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Captive brands: national brands that are sold exclusively by a retail chain Family brand: brand name that identifies several related products Individual brand: unique brand name that identifies a specific offering within a firms product line and that is not grouped under a family brand
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Brand equity: added value that a respected, well-known brand name gives to a product in the marketplace. Brand equity increases the likelihood that consumers will recognize the firms product when they make purchase decisions A strong brand equity can contribute to buyers perceptions of product quality Branding can also reinforce customer loyalty and repeat purchases
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The Role of Category and Brand Managers Brand manager: Marketing professional charged with planning and implementing marketing strategies and tactics for a brand
Category management: Product management system in which a category managerwith profit and loss responsibilityoversees a product line.
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Price
Package User Situation Uses Situation
Brand Awareness
Product related Brand Recall Attribute Functional Types of Brand Associations Strength of Brand Associations Favorability of Brand Associations Uniqueness of Brand Associations Benefit Attitude
Brand Knowledge
Experience baseed
Symbolic
Brand Image
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Brand as Product Brand as Organization Brand as Person Brand as Symbol Value Proposition (Emotional/Rational/Self-expressive) Credibility (Support / Proof / Story )
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Brands are part of a strategy aimed at differentiating supply. Companies do so by consistently and repeatedly providing an ideal combination of attributes -- both tangible and intangible, practical and symbolic, visible and invisible. Strategic Brand Management : New Approaches to Creating & Evaluating Brand Equity Jean Noel Kapferer
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EXTERNALISATION Relationship
INTERNALISATION Culture
Reflection
Self-Image
PICTURE OF RECIPIENT
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Brand Essence:
Taste
Milk
Quality Variety Food
Indian
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Relationship : Sociable
AMUL
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Brand Management
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Product Identification
Brand name: part of a brand consisting of words or letters that form a name that identifies and distinguishes a firms offering from those of its competitors Brand mark: symbol or pictorial design that identifies a product Generic name: branded name that has become a generically descriptive term for a class of products (e.g., nylon, aspirin, kerosene, and zipper)
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Trademark: legal protection which confers the exclusive right to user brand name, trade mark, and any slogan or product name abbreviation Trade Dress: visual cues used in branding to create an overall look The distinctive shape of Philips light bulbs and the McDonalds arches provide an example of trade dress
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Brand extension: application of a popular brand name to a new product in an unrelated product category Line extensions refers to new sizes, styles, or related products Brand licensing: practice allowing other companies to use a brand name in exchange for a payment
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Brand Management
Brand equity: The goodwill (equity) that an established brand has built up over its existence. DREK -- differentiation, relevance (strength) -- esteem, knowledge (stature) Brand concept: specific meaning that brand managers create and communicate to the target market. Brand concept management: the analysis, planning, implementation, and control of a brand concept throughout the life of the brand.
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Understanding Brand
Brand A promise to customers
Brand attributes
Brand Management
Name
Co-brand
Firm
Logo
Stealth brand
House of Brands
Colors
Fighting brand
Endorsed Brands
Essence Statement
Sound
Multi-brand
Subbrands
Hidden brand
Branded House
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Jean-Noel Kapferer
Line Brand : Extend a concept across different Range Brand : Use same name and promise in
Source Brand : Support sub-brand names as above Endorsing Brand : Approve/garanty wide variety
of product brands, line and range brands GE
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Brand extension/stretching
Why extend ? What is Brand stretching ? Where to extend ? Risks Keys to success Fitting why NOT extend ?
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Comfort, liberty
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Brand identity
Fit
Relevance
Brand extension
Added value
Markets values
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Fitting
Perceived brand typicality, ie product categories which go well with the mother brand Emotional agreement with the potential extension product categories tested transferability of the brands intangibles and of the brands vision, brands identity & brand project.
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Brand Management
Everything the firm does either adds or subtracts to the brand equity
Positive interactions reinforce the promise Negative experiences reduce the value of the brand
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1. Line extension (e.g. Mercedes A Class) 2. Brand extension (using Mercedes on sunglasses) 3. Should we do private label goods?
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Brand Management
Examples: Kelloggs Pop-tarts with Smuckers Jam The Eddie Bauer Ford Explorer Turns out to be very big on the Internet: NYTimes gives Amazon credibility, and Amazon makes NYT look modern.
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Brand Management
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Brand Management
Fighting Brand is a pricing strategy as a competitive response: Example: Smirnov (market leader, owned by Heublein) Wolfschnidt -- $1 less Heublein raised the price of Smirnov Introduced Reiska = Wschmidt (the fighting brand) then added Popov lower than both
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Brand Management
Multi-brand strategy lets us sell to customers in any way they want to buy
Chrysler, Dodge Having several brands can be useful
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Carnival Cruise mid-price, mass market, fun Cunard Trans-Atlantic, old-world European Seabourne High-end, exclusive, exotic travel Windstar Youth and adventure Holland America Package tours
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Brand Management
It may make sense to hide our brand (the OEM game) Examples: Yahoo Travel is really Travelocity Follett runs university bookstores The visible brand gives a reason to buy, the hidden brand is the B2B reason to contract
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Brand Management
Private Label manufacturing is forced on the manufacturer when there is excess capacity in the industry In contrast, Hidden Brand is a strategy the producer chooses when it wants to reach new market segments
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