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B®ANDING
™
Session 5
measuring brand value
& international branding
last week
• brand strategy & brand extensions
• brand architecture & brand hierarchy
• the perfect brand portfolio
• changing consumer & environment
• brand activation
• experience marketing
Unconscious
Brain
Processes
Conscious
Brain
Processes
Conscious
Buying
Behavior
don’t underestimate
the power of the
brand!
strategic brand management
process
1. identify and establish brand
positioning and values
2. plan and implement brand
marketing programs
3. measure and interpret brand
performance
4. grow and sustain brand equity
Brand value & entertainment
1.00 min
what is brand value?
known vs. unknown
strong vs. weak
valuable vs. worthless
Kevin Lane Keller on
brand value
brand measurement
“ I’m putting all this effort
into my brand, working on the image,
giving it the right colors, the right look,
the right communication-tools. But is it
working? Does this ‘brand building’-
thing have any result at all?”
Measuring brand value:
the Interbrand methodology
best global brands
•Which dutch brands are in the top 100?
•Which sector is most present in the top 100?
•Which brand takes the biggest positive step?
Why measure brands?
• to measure how strong the brand is in
comparison to competitors
• to review marketing campaigns (return on
marketing investment)
• to value brands in order to put it in the
annual financial overview
“ …what is not measured
is not managed…”
(well-known saying)
brand equity
the monetary value of a brand
brand equity
measurement system
“...a set of research procedures
designed to provide timely, accurate and
actionable information for marketeers so that
they can make the best possible tactical
decisions in the short run and the best
strategic decisions in the
long run...”
source: Kevin L. Keller
Building, measuring and managing brand equity
different ways to measure
1. Brand value chain
2. Brand following
3. Brand asset valuator (BAV)
1. brand value chain
Creating brand value starts with investing in
marketing campaigns.
The value of a brand is determined by
consumers.
So the success of a brand can be found
looking at the stock value of the company.
1. brand value chain
Phases brand value chain
2. brand following
• Periodically
• Numeric
• A small amount of crucial dimensions
– Brand image, awareness, strength of
associations, etc.
• Helping to predict future consumer behavior
and reactions of consumer to brands
3. Brand asset valuator (BAV)
“…the Brand Asset Valuator (BAV) is the
world’s largest research about brand
value and brand perception. This
research has led tot the biggest
database when it comes to brands. The
data is bases upon more than 400.000
respondents from over 40 countries…”
3. the brand asset valuator
Brand Asset (bezit)
Brand stature (reputatie) Brand strength
Esteem (waardering)
Knowledge
Relevance
Energized differentiation
3. the brand asset valuator
BAVconsulting.com  explore your brand
Brand stature
Brandstrength
Low
HighLow
High
Fatigue
Leadership
Unfocused
Mass market
New
Curiosity
international branding
Regions (local) vs.
The world (global)
• Increasing amount of niche markets
• Increasing amount of consumer data
• Increasing amount of 1-to-1 marketing
Why brands go abroad?
• Home market is saturated
• Heavy competition on the home market
• Extra growth possible abroad
• Overcapacity
• Spreading risk
•
Going abroad?
• Global marketing program
or?
• Regionally fitting global marketing
program
of?
• Something in between
Advantages global marketing
program
• Economies of scale
• Lower marketing costs
– Packaging, advertising, promotion
• Power and reach
– Increasing credibility
• More consistent brand image
• Fundamental differences:
– Between countries
– Between cultures
• Which leads to boring and ineffective strategies
Disadvantages global marketing
program
example
• McDonald’s calls its hamburgers “big
macs” that’s nice, especially in Canada
where it means having big breasts.
example
• Mitsubishi Motors had to adjust the name
of its model Pajero in Spain, this because
Pajero means ‘wanker’ in Spanish.
example
• In The Netherlands a few decades ago
Fiat introduced it’s new car: Fiat Croma
Hofstede’s 5 dimensions
• Social psychologist
• Cultural differences between countries are
often more profound than expected
• Example: KLM – Alitalia, KLM - Airfrance
Hofstede’s 5 dimensions
• Power distance and acceptance
• Individualism
• Uncertainty avoidance
• Masculinity (emotional roleplaying)
• Long term orientation
• Indulgence vs. restraint (to control desires)
example
A company that sells babyfood, sold its
product in cans picturing nice chubby
baby’s. In African countries no one bought
a box, this because the analphabetic
population thought it contained pulverized
baby..
Differences between
countries & cultures:
• Consumer needs / usage
• Reactions on marketing mix elements
• Competitive environment
• Legal environment
• Marketing infrastructure
• Bureaucratic procedures
Consumer needs / usage
• Wine consumption
(Netherlands vs. Italia vs. Poland vs. Belarus)
• Garlic consumption
Reactions on marketing mix
elements
• Use of colours (in Japan white is the color
of mourning)
• Image (C&A, Heineken)
• Brand names (Croma, Pajero, Mist)
• Price perception (hamburgerindex)
Competitive environment
• Difference in phase of the product life
cycle (mobile telephone in Europe, China
and Africa)
• Level of competition
• Political situation
• Legislation on tobacco, alcohol, gambling,
medicine etc.
Legal environment
Marketing infrastructure
Bureaucratic procedures
• Availability distribution channels
(flagstores versus retail, Erke)
• Availability of media
Think global, act local
Standardizing vs. marketing mix adjustment
• Mac Croquet
• Sauce
• Frites
• Mac Royal (Fr)
• Beer / wine
To go abroad!
• Country selection
• Distribution selection (b.v. Erke flagstore
naar Nederland, G-sus naar China)
• Alternation of international marketing mix
Country selection
• Neighbor method (closest, little differences
between cultures (?))
• Filter model (based upon all kinds of
dimensions)
• AH voor beginners in België
• Ter gelegenheid van zijn entree op de Belgische
markt heeft Albert Heijn een Vlaams-
Nederlands boodschappenlijstje gemaakt. Wie
'sojascheuten' wil, zoeke 'taugé'.
• croque monsieur = tosti
• dubbele room = crème fraîche
• kotelet = karbonade
• pompelmoes = grapefruit
• pudding = vla
• stoemp = stampot
• tournedos = kogelbiefstuk
• verse kaas = kwark
• vol-au-vent = kippenragout
• zwarte pensen = bloedworst
questions? /comments
thank you!

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Session 5, brand measurement & international branding

  • 2. Session 5 measuring brand value & international branding
  • 3. last week • brand strategy & brand extensions • brand architecture & brand hierarchy • the perfect brand portfolio • changing consumer & environment • brand activation • experience marketing
  • 6. strategic brand management process 1. identify and establish brand positioning and values 2. plan and implement brand marketing programs 3. measure and interpret brand performance 4. grow and sustain brand equity
  • 7. Brand value & entertainment 1.00 min
  • 8. what is brand value?
  • 9. known vs. unknown strong vs. weak valuable vs. worthless
  • 10. Kevin Lane Keller on brand value
  • 11. brand measurement “ I’m putting all this effort into my brand, working on the image, giving it the right colors, the right look, the right communication-tools. But is it working? Does this ‘brand building’- thing have any result at all?”
  • 12. Measuring brand value: the Interbrand methodology
  • 13. best global brands •Which dutch brands are in the top 100? •Which sector is most present in the top 100? •Which brand takes the biggest positive step?
  • 14. Why measure brands? • to measure how strong the brand is in comparison to competitors • to review marketing campaigns (return on marketing investment) • to value brands in order to put it in the annual financial overview
  • 15. “ …what is not measured is not managed…” (well-known saying)
  • 16. brand equity the monetary value of a brand
  • 17. brand equity measurement system “...a set of research procedures designed to provide timely, accurate and actionable information for marketeers so that they can make the best possible tactical decisions in the short run and the best strategic decisions in the long run...” source: Kevin L. Keller Building, measuring and managing brand equity
  • 18. different ways to measure 1. Brand value chain 2. Brand following 3. Brand asset valuator (BAV)
  • 19. 1. brand value chain Creating brand value starts with investing in marketing campaigns. The value of a brand is determined by consumers. So the success of a brand can be found looking at the stock value of the company.
  • 20. 1. brand value chain Phases brand value chain
  • 21. 2. brand following • Periodically • Numeric • A small amount of crucial dimensions – Brand image, awareness, strength of associations, etc. • Helping to predict future consumer behavior and reactions of consumer to brands
  • 22. 3. Brand asset valuator (BAV) “…the Brand Asset Valuator (BAV) is the world’s largest research about brand value and brand perception. This research has led tot the biggest database when it comes to brands. The data is bases upon more than 400.000 respondents from over 40 countries…”
  • 23. 3. the brand asset valuator Brand Asset (bezit) Brand stature (reputatie) Brand strength Esteem (waardering) Knowledge Relevance Energized differentiation
  • 24. 3. the brand asset valuator BAVconsulting.com  explore your brand
  • 27. Regions (local) vs. The world (global) • Increasing amount of niche markets • Increasing amount of consumer data • Increasing amount of 1-to-1 marketing
  • 28.
  • 29. Why brands go abroad? • Home market is saturated • Heavy competition on the home market • Extra growth possible abroad • Overcapacity • Spreading risk
  • 30.
  • 31.
  • 32. Going abroad? • Global marketing program or? • Regionally fitting global marketing program of? • Something in between
  • 33. Advantages global marketing program • Economies of scale • Lower marketing costs – Packaging, advertising, promotion • Power and reach – Increasing credibility • More consistent brand image
  • 34. • Fundamental differences: – Between countries – Between cultures • Which leads to boring and ineffective strategies Disadvantages global marketing program
  • 35. example • McDonald’s calls its hamburgers “big macs” that’s nice, especially in Canada where it means having big breasts.
  • 36. example • Mitsubishi Motors had to adjust the name of its model Pajero in Spain, this because Pajero means ‘wanker’ in Spanish.
  • 37. example • In The Netherlands a few decades ago Fiat introduced it’s new car: Fiat Croma
  • 38. Hofstede’s 5 dimensions • Social psychologist • Cultural differences between countries are often more profound than expected • Example: KLM – Alitalia, KLM - Airfrance
  • 39. Hofstede’s 5 dimensions • Power distance and acceptance • Individualism • Uncertainty avoidance • Masculinity (emotional roleplaying) • Long term orientation • Indulgence vs. restraint (to control desires)
  • 40. example A company that sells babyfood, sold its product in cans picturing nice chubby baby’s. In African countries no one bought a box, this because the analphabetic population thought it contained pulverized baby..
  • 41. Differences between countries & cultures: • Consumer needs / usage • Reactions on marketing mix elements • Competitive environment • Legal environment • Marketing infrastructure • Bureaucratic procedures
  • 42. Consumer needs / usage • Wine consumption (Netherlands vs. Italia vs. Poland vs. Belarus) • Garlic consumption
  • 43. Reactions on marketing mix elements • Use of colours (in Japan white is the color of mourning) • Image (C&A, Heineken) • Brand names (Croma, Pajero, Mist) • Price perception (hamburgerindex)
  • 44. Competitive environment • Difference in phase of the product life cycle (mobile telephone in Europe, China and Africa) • Level of competition • Political situation
  • 45. • Legislation on tobacco, alcohol, gambling, medicine etc. Legal environment
  • 46. Marketing infrastructure Bureaucratic procedures • Availability distribution channels (flagstores versus retail, Erke) • Availability of media
  • 47. Think global, act local Standardizing vs. marketing mix adjustment
  • 48. • Mac Croquet • Sauce • Frites • Mac Royal (Fr) • Beer / wine
  • 49. To go abroad! • Country selection • Distribution selection (b.v. Erke flagstore naar Nederland, G-sus naar China) • Alternation of international marketing mix
  • 50. Country selection • Neighbor method (closest, little differences between cultures (?)) • Filter model (based upon all kinds of dimensions)
  • 51. • AH voor beginners in België • Ter gelegenheid van zijn entree op de Belgische markt heeft Albert Heijn een Vlaams- Nederlands boodschappenlijstje gemaakt. Wie 'sojascheuten' wil, zoeke 'taugé'. • croque monsieur = tosti • dubbele room = crème fraîche • kotelet = karbonade • pompelmoes = grapefruit • pudding = vla • stoemp = stampot • tournedos = kogelbiefstuk • verse kaas = kwark • vol-au-vent = kippenragout • zwarte pensen = bloedworst