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Branding. the mystery

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Branding. the mystery …

Branding. the mystery

What is branding
What makes a strong brand
Brand vs product
The Brand Equity measurement:
Brand Name Awareness
Brand Loyalty
Perceived Quality
Brand Associations
Brand building obstacles and challenges
Brand Identity system





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  • To Mention at the end, that we now use the terminology Kleenex in general when we need a tissue!
  • According to the results of a survey by research firm ClickFox Apple Inc. (NASDAQ: AAPL) was named by 80% of people already owning an apple product would continue buying apple products.
    20% of respondents as “the brand they couldn’t live without” and Coca-Cola Co. (NYSE: KO), Google Inc. (NASDAQ: GOOG), and Amazon.com Inc. (NASDAQ: AMZN) were the next-highest finishers, with other brands like Starbucks Corp. (NASDAQ: SBUX), Target Corp. (NYSE: TGT), and Microsoft Corp. (NASDAQ: MSFT) also called out among a “slew” of other companies and brands.
    88% overwhelmingly listed quality as the main driver of brand loyalty. Followed by 72% who named customer service
  • BMW
    Not everybody knows that BMW started as a manufacturer of aircraft engines. In Ocotber 1913 Karl Friedrich Rapp establishes "Rapp-Motorenwerke" in a former bicycle factory near Munich. Rapp was an engineer who arise through thr Daimler system and "Rapp-Motorenwerke" was set up asa a subsidiary of "Flugwerk", an airplane maker. He starts manufacturing his own aircraft engines but unfortunately they suffered form problems with vibrations.
    Close to Rapp´s factory, Gustav Otto, the son of the inventor of the four-stroke internal combustion engine, sets up a business building small aircrafts. Otto enjoys great success with "Gustav Flugmaschinefabrik".
    1919
    After the armistice was signed, the Allies prohibited German military to produce aircraft engines. Therefor BMW turned to boat and truck engines and farming equipment. Meanwhile, in secret, Popp continued to work with his engineering director Friz on aircraft engines.
    A successor for the Type IIIa engine is born. It is named naturally Type IV. With this engine, Franz Zeno Diemer sets an altitude record of 9,760 metres (32,013 ft)
    1920
    The tough business climate at the end of WW1 made Castiglioni to sell his holdings for 28 million Reichsmarks to the chief executive of Knorr Bremsen AG. With only a few aircraft engines on order, BMW was struggling and started to manufacture brake systems for railway cars, office furniture, and workbenches, as well as cut-down aviation engines for marine and industrial use. sometimes, perception doesn’t equal reality
    The current BMW logo, introduced in the early 1920, was believed to be based on the circular design of an aircraft propeller.


    Brand Perception in terms of Performance 28% in the latest reseach in 2011, where it comes number 1 in the car market, and has emphasized that in advertising with its “ultimate driving machine” tagline
    When it comes to design/style Luxury brands dominate the car-buyer’s awareness for design and styling, probably buoyed by the associated prestige of those marqueswhere BMW comes forth after Mercedes-Benz, Lexus & Cadillac.
    Technology & innovation: BMW has consistently been a technological innovator, but with mixed results. Like Lexus and Cadillac, its cars are loaded with advanced electronic systems. But its efforts at reinventing the automotive control system, as exemplified by the complicated iDrive system, only added complexity and distraction to the driving experience now it comes 5th in the market.

    Conclusion: that a few brands rank high in consumer perception, with several proving to be leaders in more than one category. But sometimes, perception doesn’t equal reality. In many cases, consumers’ view does not accurately reflect the automaker’s recent track record.
  • price: etisalat vs Mobinil and VF
    Several competitors and their proliferation
    Targeted custoemrs in the different channels
    Cherry coke, Coke zero, diet coke, free caffiene diet coke
    Marlboro, Volvo,
    Sink in daily operations instead of innovation
    Sins of complacency and greed (Xeerox, diverted resources into office of the future… 100% market share), savin kodak and canon won market share from Xerox…
    Short term benefits vs the long term strategic positioning


  • Most of the brand strategists position the brand identity creation as an entirely external oriented process, something that gets the customers to buy. The external perspective trap occurs when firms fail to realize the role that a brand identity can play in helping an organization understand its basic values and purpose.t is hard to expect employees to make a vision happen if they do not understand and buy into that vision.
  • Most of the brand strategists position the brand identity creation as an entirely external oriented process, something that gets the customers to buy. The external perspective trap occurs when firms fail to realize the role that a brand identity can play in helping an organization understand its basic values and purpose.t is hard to expect employees to make a vision happen if they do not understand and buy into that vision.
  • Basic Human needs/ Maslow pyramid:


  • Transcript

    • 1. OUTLINE • What is branding • What makes a strong brand • Brand vs product • The Brand Equity measurement: • Brand Name Awareness • Brand Loyalty • Perceived Quality • Brand Associations • Brand building obstacles and challenges • Brand Identity system
    • 2. WHAT IS BRANDING? Describe yourself by: • Kind of food • Home appliance • Car • Sport • Country
    • 3. BRANDING DEFINITION • Is the marketing practice of creating a name, symbol or design that identifies and differentiates a product from other products
    • 4. WHAT MAKES A STRONG BRAND??
    • 5. BRAND EQUITY 1. Brand Name Awareness 2. Brand Loyalty 3. Perceived Quality 4. Brand Associations
    • 6. BRAND NAME AWARENESS Brand recognition: Recognition reflects familiarity and linking acquired from past exposure. Remembering as such, one brand among others is a manner of aided recall Brand recall: Recall reflects awareness of a brand when it comes in mind as soon as its product class is mentioned. A manner of unaided recall Brand Dominance: The highest awareness level, the brand dominates the mind and pops up as first when ever applicable Creating awareness: The Strongest brands are managed not for general awareness, but for strategic awareness. It is one thing to be remembered; it is quite another to be remembered for the right reasons.
    • 7. GRAVEYARD MODEL developed by Young and Rubicam Europe
    • 8. BRAND NAME AWARENESS Brand recognition: Recognition reflects familiarity and linking acquired from past exposure. Remembering as such, one brand among others is a manner of aided recall Brand recall: Recall reflects awareness of a brand when it comes in mind as soon as its product class is mentioned. A manner of unaided recall Brand Dominance: The highest awareness level, the brand dominates the mind and pops up as first when ever applicable Creating awareness: The Strongest brands are managed not for general awareness, but for strategic awareness. It is one thing to be remembered; it is quite another to be remembered for the right reasons.
    • 9. BRAND NAME AWARENESS
    • 10. Kleenex® Tissue travelled from a laboratory to every household in America
    • 11. BRAND NAME AWARENESS In the early 1920s, Kimberly-Clark developed creped wadding for its first ever consumer product, Kotex®. At this time, the feminine hygiene product was not immediately welcomed in the marketplace. In 1925, the first Kleenex® tissue ad appeared in the Ladies Home Journal as "the new secret of keeping a pretty skin as used by famous movie stars. Kimberly-Clark's head researcher started using the tissues in place of a handkerchief to help with his hay fever symptoms.
    • 12. BRAND NAME AWARENESS The concept struck and in 1930, the idea of Kleenex® tissue as a handkerchief substitute was launched. Sales of Kleenex® tissues doubled the first year as it now served men, women and children, too. It has been the No. 1 brand of facial tissue in the world and today is a global icon. For a product originally made of excess material, it certainly exceeded everyone's expectations!
    • 13. BRAND EQUITY 1. Brand Name Awareness 2. Brand Loyalty 3. Perceived Quality 4. Brand Associations
    • 14. 2. BRAND LOYALTY Definition: Brand loyalty is a twofold concept consisting of actual brand loyalty and repeat purchase behavior. When measuring / defining the level of brand loyalty, one should therefore not merely look at customers’ purchase behavior, but also chart psychological drivers behind that behavior.
    • 15. Committed buyer Likes the brand/considers it a friend Satisfied buyer with switching costs Satisfied/habitual buyer, no reason to change Switchers, price sensitive, no brand loyalty 2. Brand Loyalty (Consumer Behavior) Aaker’s Brand Loyalty pyramid (Consumer Behavior)
    • 16. 2. BRAND LOYALTY (CONSUMER BEHAVIOR) 1. Switchers: Customers who tend to buy brand in sale. Targeting these customers will be effective by raising the brand name awareness. This is a precondition of moving up on the pyramid. A brand will have to be known to people first before they even start considering buying it.
    • 17. 2. Satisfied/habitual buyer: Customers who buy a brand out of habit. When such a customer has to go to some troubles to get his usual brand he/she relatively easily buy another brand (instead of going to another shop to get his usual satisfying brand) Targeting these customers will have to raise the thresholds vs other brands to keep customers more and more loyal 2. BRAND LOYALTY (CONSUMER BEHAVIOR)
    • 18. 3. Satisfied buyer with switching costs: Satisfied customers who are reluctant to switch to a competing brands due to existing thresholds (switching costs) Thresholds can be as of:  Time to move to other shop to get the brand  Financial expenses (switching costs money)  Quality measures Targeting these customers should offer major benefits to compensate the switching costs 2. BRAND LOYALTY (CONSUMER BEHAVIOR)
    • 19. 4. Brand likers: True brand enthusiasts their brand preference is mostly engendered by an experience of emotional benefits, alongside more rational benefits (Time, Price and Quality) Emotional benefits:  It can be pursued by linking certain associations (through TV ads) and/or Experience (such as shopping experience) to a brand. 2. BRAND LOYALTY (CONSUMER BEHAVIOR)
    • 20. 80% Of people owning an Apple product would continue buying Apple products
    • 21. APPLE BRAND LOYALTY According to the results of a survey by research firm ClickFox: 20% of apple products users named apple as “the brand they couldn’t live without.” Customers listed quality & customer services as the main driver of brand loyalty. 87% said they would pay higher prices or make some other accommodation to support their favourite brands. Nearly half of respondents said that brand loyalty begins at the time of purchase.
    • 22. BRAND EQUITY 1. Brand Name Awareness 2. Brand Loyalty 3. Perceived Quality 4. Brand Associations
    • 23. 3. PERCEIVED QUALITY Definition: Perceived quality is a perception by the customers, how they perceive the overall quality or superiority of a product or service with respect to its intended purpose, relative to alternates. Values of Perceived quality: Reason to buy Differentiate/position A price premium Channel member interest Brand extensions
    • 24. 3. PERCEIVED QUALITY 1. What influences perceived quality of products: Performance Features Conformance with specifications Reliability Durability Serviceability Fit and finish
    • 25. 3. PERCEIVED QUALITY 2. What influences perceived quality of services: Appearance Reliability Competence Responsiveness Empathy
    • 26. Sometimes, perception doesn’t equal reality
    • 27. BMW PERCEIVED QUALITY  BMW started as a manufacturer of aircraft engines.  The current BMW logo, introduced in the early 1920, was believed to be based on the circular design of an aircraft propeller.  turned to boat and truck engines and farming equipment.  BMW comes first in the market when it has to do with the brand perception in terms of Performance
    • 28. BRAND EQUITY 1. Brand Name Awareness 2. Brand Loyalty 3. Perceived Quality 4. Brand Associations
    • 29. 4. BRAND ASSOCIATIONS Definition: Brand association is, anything linked in memory to a Brand (character, slogan, color, symbol..) Some types of associations:  Product attributes  Customer benefits  Relative price  Lifestyle/ personality  Celebrity/ person  Use/ applications
    • 30. 4. BRAND ASSOCIATIONS Value of Brand Associations:  Help process/ Retrieve information  Differentiate/ position  Reason to buy  Create positive attitude/ Feelings  Basis of Extensions Maintaining Brand Associations:  Be consistent over time  Be consistent over elements of the marketing program  Manage disasters in order to minimize their damage
    • 31. WHY IS IT HARD TO BUILD BRANDS? Building Brands 1. Pressure to compete on price 2. Proliferati on of competit ors 3. Fragmenti ng Markets & Media 4. Complex brand strategies & relationsh ips 5. Bias toward changing strategies 6. Bias against innovatio n 7. Pressure to invest elsewher e 8. Short term pressure
    • 32. QUESTIONS TO CONSIDER…
    • 33. • What is the level of recognition and recall for your brand? Is it moving toward or away from the graveyard? What can be done to improve awareness? What are others doing? • Evaluate the perceived quality for your brand and for its major competitor brands. Are you satisfied with the actual quality levels? What are the important quality cues? • What are the brand loyalty levels of your customers by segment/ how could loyalty be enhanced? What are competitors doing to improve loyalty? • How are the major competitors perceived by customers? What associations is each trying to create? What is the desired image of your brand? Is the brand and communication effort consistent with that image? • Are there internal pressure that work against brand building pressures against true innovation and toward short term results, diversification, and frequent changes in brand identity/execution? Assess each. What organizational device can combat those pressures? Is the brand environment hostile how can brand building proceed in such a context?
    • 34. THE BRAND IDENTITY SYSTEM
    • 35. BRAND IDENTITY SYSTEM 1. What’s Brand Identity 2. Brand Identity traps 3. Brand Identity perspectives 4. The Identity structure 5. Value proposition 6. Credibility 7. Brand customer relationship
    • 36. BRAND IDENTITY SYSTEM 1. What’s Brand Identity 2. Brand Identity traps 3. Brand Identity perspectives 4. The Identity structure 5. Value proposition 6. Credibility 7. Brand customer relationship
    • 37. 1. BRAND IDENTITY DEFINITION “A unique set of brand associations that the brand strategist aspires to create or maintain. These associations represent what the brand stands for and imply a promise to customers from the organization members. 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”
    • 38. 1. BRAND IDENTITY DEFINITION Source: Identity and image (Kapferer)
    • 39. BRAND IDENTITY SYSTEM 1. What’s Brand Identity 2. Brand Identity traps 3. Brand Identity perspectives 4. The Identity structure 5. Value proposition 6. Credibility 7. Brand customer relationship
    • 40. 2. BRAND IDENTITY TRAPS Brand Identity traps Brand Image Trap Brand Position Trap Product attribute s fixation trap External Perspecti ve Trap
    • 41. 2.1. BRAND IMAGE TRAP Definition: how customers and others perceive the brand Brand image trap is that lets the customer dictates what you’re Creating a brand identity is more than finding out what customers say they want. It must also reflect the soul and vision of the brand, what it hopes to achieve Brand Identity traps Brand Image Trap Brand Position Trap Product attributes fixation trap External Perspective Trap
    • 42. 2.2. BRAND POSITION TRAP The brand position trap occurs:  When the search for a brand identity becomes a search for a brand position, stimulated by a practical need to provide objectives to those developing the communication programs.  It’s the part of the brand identity and value proposition to be actively communicated to a target audience. And demonstrates an advantage over competing brands. Brand Identity traps Brand Image Trap Brand Position Trap Product attributes fixation trap External Perspective Trap
    • 43. 2.3. EXTERNAL PERSPECTIVE TRAP Most of brand strategies position the brand identity creation as an entirely external oriented process. Something that gets the customers to buy The external perspective trap occurs:  when firms fail to realize the role that a brand identity can play in helping an organization understand its basic values and purpose is hard to expect employees to make a vision happen if they do not understand and buy into that vision. Brand Identity traps Brand Image Trap Brand Position Trap Product attributes fixation trap External Perspective Trap
    • 44. 2.4. PRODUCT ATTRIBUTE FIXATION TRAP A brand is clearly more than a product or a service. Focusing your entire strategy and brand identity on the attributes of your product is an erroneous strategy, especially on a long- term. Brand Identity traps Brand Image Trap Brand Position Trap Product attributes fixation trap External Perspective Trap
    • 45. Product Scope Attributes Quality Uses Symbols Brand -customer relationships Brand Personality Emotional Benefit Organizational association Country of origin User imagery BRAND A BRAND IS MORE THAN A PRODUCT
    • 46. BRAND IDENTITY SYSTEM 1. What’s Brand Identity 2. Brand Identity traps 3. Brand Identity perspectives 4. The Identity structure 5. Value proposition 6. Credibility 7. Brand customer relationship
    • 47. BRAND IDENTITY SYSTEM 1. What’s Brand Identity 2. Brand Identity traps 3. Brand Identity perspectives 4. The Identity structure 5. Value proposition 6. Credibility 7. Brand customer relationship
    • 48. BRAND IDENTITY SYSTEM Core Extended Brand as product 1.Product scope 2.Product attributes 3.Quality/value 4.Uses 5.Users 6.Country of origin Brand as organization 7.Organization attributes (innovation, consumer concern, trustworthiness) 8. Local vs Global Brand as Person 9.Personality (genuine, energetic, rugged) 10.Brand-customer relationships (Friend, Advisor) Brand as symbol 9.Visual Imagery and Metaphors 10.Brand Heritage
    • 49. BRAND IDENTITY SYSTEM Core Extended Brand as product 1.Product scope 2.Product attributes 3.Quality/value 4.Uses 5.Users 6.Country of origin Brand as organization 7.Organization attributes (innovation, consumer concern, trustworthiness) 8. Local vs Global Brand as Person 9.Personality (genuine, energetic, rugged) 10.Brand-customer relationships (Friend, Advisor) Brand as symbol 9.Visual Imagery and Metaphors 10.Brand Heritage
    • 50. BRAND AS A PRODUCT (PRODUCT RELATED ASSOCIATIONS): • Product scope: Associations with product class: • With what product(s) the brand is associated? • Baskin Robbins  Ice Cream • Buick  Automobiles • Compaq  Computers • HP Jet line  Printers (ink jet, laser jet) It’s not to gain recall when the brand is mentioned, but to be mentioned with the product or service is needed • Product related attributes: Benefits directly related to purchase or use of product can provide functional benefits and sometimes emotional benefits for customers. A product related attribute can create a value proposition by offering something extra (like features or services) or better
    • 51. BRAND AS A PRODUCT (PRODUCT RELATED ASSOCIATIONS): • Product Quality/Value: Value is closely related to quality; it enriches the concept by adding the price dimension. • Occasions with use occasions : Clorox bleach has become strongly associated with the whitening of clothing even though bleach can be used for cleaning and disinfecting a wide variety of thing. • Associations with users: The Brand can be positioned also by a type of users (Gerber: Babies, Mobacco: Men’s wear –Classic--, Avon: female elegant)
    • 52. BRAND AS A PRODUCT (PRODUCT RELATED ASSOCIATIONS): • Link to a country of origin: One of the strategic options is to associate the brand with a country or region that will add credibility to it (Swatch Watches: Swiss)
    • 53. BRAND IDENTITY SYSTEM Core Extended Brand as product 1.Product scope 2.Product attributes 3.Quality/value 4.Uses 5.Users 6.Country of origin Brand as organization 7.Organization attributes (innovation, consumer concern, trustworthiness) 8. Local vs Global Brand as Person 9.Personality (genuine, energetic, rugged) 10.Brand-customer relationships (Friend, Advisor) Brand as symbol 9.Visual Imagery and Metaphors 10.Brand Heritage
    • 54. BRAND IDENTITY SYSTEM Core Extended Brand as product 1.Product scope 2.Product attributes 3.Quality/value 4.Uses 5.Users 6.Country of origin Brand as organization 7.Organization attributes (innovation, consumer concern, trustworthiness) 8. Local vs Global Brand as Person 9.Personality (genuine, energetic, rugged) 10.Brand-customer relationships (Friend, Advisor) Brand as symbol 9.Visual Imagery and Metaphors 10.Brand Heritage
    • 55. BRAND AS AN ORGANIZATION • It focuses on attributes of the organization rather than those of the product or the service such as: • Innovation • Drive for quality • Concern for the environment • Culture • Values • Programs of the company • vision Organizational attributes usually apply to set of products not only one product, so that if any competitor can compete to one product will not be able to compete to the organizational attributes
    • 56. BRAND IDENTITY SYSTEM Core Extended Brand as product 1.Product scope 2.Product attributes 3.Quality/value 4.Uses 5.Users 6.Country of origin Brand as organization 7.Organization attributes (innovation, consumer concern, trustworthiness) 8. Local vs Global Brand as Person 9.Personality (genuine, energetic, rugged) 10.Brand-customer relationships (Friend, Advisor) Brand as symbol 9.Visual Imagery and Metaphors 10.Brand Heritage
    • 57. BRAND IDENTITY SYSTEM Core Extended Brand as product 1.Product scope 2.Product attributes 3.Quality/value 4.Uses 5.Users 6.Country of origin Brand as organization 7.Organization attributes (innovation, consumer concern, trustworthiness) 8. Local vs Global Brand as Person 9.Personality (genuine, energetic, rugged) 10.Brand-customer relationships (Friend, Advisor) Brand as symbol 9.Visual Imagery and Metaphors 10.Brand Heritage
    • 58. BRAND AS A PERSON: BRAND PERSONALITY A brand can be perceived as being competent, impressive, trustworthy, fun, active, humorous, casual, formal, youthful or intellectual. Brand personality:  Can help create self-expressive benefit that the customer can express his/her own personality through this brand  Brand personality can be the basis of a relationship between the customer and the brand  May help communicate a product attribute and thus contribute to a functional benefit (Michelin man’s strong personality)
    • 59. BRAND IDENTITY SYSTEM Core Extended Brand as product 1.Product scope 2.Product attributes 3.Quality/value 4.Uses 5.Users 6.Country of origin Brand as organization 7.Organization attributes (innovation, consumer concern, trustworthiness) 8. Local vs Global Brand as Person 9.Personality (genuine, energetic, rugged) 10.Brand-customer relationships (Friend, Advisor) Brand as symbol 9.Visual Imagery and Metaphors 10.Brand Heritage
    • 60. BRAND IDENTITY SYSTEM Core Extended Brand as product 1.Product scope 2.Product attributes 3.Quality/value 4.Uses 5.Users 6.Country of origin Brand as organization 7.Organization attributes (innovation, consumer concern, trustworthiness) 8. Local vs Global Brand as Person 9.Personality (genuine, energetic, rugged) 10.Brand-customer relationships (Friend, Advisor) Brand as symbol 9.Visual Imagery and Metaphors 10.Brand Heritage
    • 61. BRAND AS A SYMBOL Anything that represents the brand can be a symbol, including programs such as the Ronald McDonald House for McDonald’s . Symbols involving visual imagery can be memorable and powerful:  Nike’s “Swoosh”  McDonald’s golden Arches  Kodak Yellow  Coke Classic can or bottle Each strong visual image captures much of its respective brand’s identity because connections between the symbol and the identity elements have been built up over time.
    • 62. BRAND IDENTITY SYSTEM 1. What’s Brand Identity 2. Brand Identity traps 3. Brand Identity perspectives 4. The Identity structure 5. Value proposition 6. Credibility 7. Brand customer relationship
    • 63. BRAND IDENTITY SYSTEM 1. What’s Brand Identity 2. Brand Identity traps 3. Brand Identity perspectives 4. The Identity structure 5. Value proposition 6. Credibility 7. Brand customer relationship
    • 64. IDENTITY STRUCTURE EXTENDED IDENTITY CORE IDENTITY
    • 65. IDENTITY STRUCTURE (CORE IDENTITY) The timeless essence of the brand, it’s the center that remains after you peel away the layers of an onion, like: • Michelin: advanced technology tires for the driver who is knowledgeable about tires • Johnson & Johnson: trust and quality in over the center medicines • Saturn: world class quality; treating customers with respect and as a friend It includes the elements that make the brand unique and valuable, so it contributes to the value proposition and credibility EXTENDED IDENTITY CORE IDENTITY
    • 66. IDENTITY STRUCTURE (EXTENDED IDENTITY) It’s the elements that provide texture and completeness A larger extended identity means a stronger brand, one that is more memorable, interesting and connected to your life. A person whom you find uninteresting and bland and who plays only a small role in your life can be described in a few words. And interesting person with whom you are involved personally or professionally would require a much more complex description. EXTENDED IDENTITY CORE IDENTITY
    • 67. BRAND IDENTITY SYSTEM 1. What’s Brand Identity 2. Brand Identity traps 3. Brand Identity perspectives 4. The Identity structure 5. Value proposition 6. Credibility 7. Brand customer relationship
    • 68. CASE STUDIES
    • 69. THANK YOU Ahmed.a.abdelrazik@gmail.com References:

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