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Keller sbm3 11

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Keller sbm3 11 Keller sbm3 11 Presentation Transcript

  • 11.1CHAPTER 11:CHAPTER 11:DESIGNING AND IMPLEMENTINGDESIGNING AND IMPLEMENTINGBRANDING STRATEGIESBRANDING STRATEGIESKevin Lane KellerKevin Lane KellerTuck School of BusinessTuck School of BusinessDartmouth CollegeDartmouth College
  • 11.2Branding strategyBranding strategy Branding strategy is critical because it is theBranding strategy is critical because it is themeans by which the firm can help consumersmeans by which the firm can help consumersunderstand its products and services andunderstand its products and services andorganize them in their minds.organize them in their minds. Two important strategic tools: TheTwo important strategic tools: The brand-productbrand-productmatrixmatrix and theand the brand hierarchybrand hierarchy help to characterizehelp to characterizeand formulate branding strategies by definingand formulate branding strategies by definingvarious relationships among brands andvarious relationships among brands andproducts.products.
  • 11.3Branding Strategy or BrandBranding Strategy or BrandArchitectureArchitecture TheThe branding strategybranding strategy for a firm reflects thefor a firm reflects thenumber and nature of common or distinctivenumber and nature of common or distinctivebrand elements applied to the different productsbrand elements applied to the different productssold by the firm.sold by the firm. Which brand elements can be applied to whichWhich brand elements can be applied to whichproducts and the nature of new and existing brandproducts and the nature of new and existing brandelements to be applied to new productselements to be applied to new products
  • 11.4The role of Brand ArchitectureThe role of Brand Architecture Clarify: brand awarenessClarify: brand awareness Improve consumer understanding and communicateImprove consumer understanding and communicatesimilarity and differences between individualsimilarity and differences between individualproductsproducts Motivate: brand imageMotivate: brand image Maximize transfer of equity to/from the brand toMaximize transfer of equity to/from the brand toindividual products to improve trial and repeatindividual products to improve trial and repeatpurchasepurchase
  • 11.5Brand-Product MatrixBrand-Product Matrix Must define:Must define: Brand-Product relationships (rows)Brand-Product relationships (rows) Line and category extensionsLine and category extensions Product-Brand relationships (columns)Product-Brand relationships (columns) Brand portfolioBrand portfolio1 2 3 4ABCProductsBrands
  • 11.6Important DefinitionsImportant Definitions Product lineProduct line A group pf products within a product category thatA group pf products within a product category thatare closely relatedare closely related Product mix (product assortment)Product mix (product assortment) The set of all product lines and items that aThe set of all product lines and items that aparticular seller makes available to buyersparticular seller makes available to buyers Brand mix (brand assortment)Brand mix (brand assortment) The set of all brand lines that a particular sellerThe set of all brand lines that a particular sellermakes available to buyersmakes available to buyers
  • 11.7Breadth of a Branding StrategyBreadth of a Branding Strategy Breadth of product mixBreadth of product mix Aggregate market factorsAggregate market factors Category factorsCategory factors Environmental factorsEnvironmental factors Depth of product mixDepth of product mix Examining the percentage of sales and profitsExamining the percentage of sales and profitscontributed by each item in the product linecontributed by each item in the product line Deciding to increase the length of the product lineDeciding to increase the length of the product lineby adding new variants or items typically expandsby adding new variants or items typically expandsmarket coverage and therefore market share but alsomarket coverage and therefore market share but alsoincreases costsincreases costs
  • 11.8Depth of a Branding StrategyDepth of a Branding Strategy The number and nature of different brandsThe number and nature of different brandsmarketed in the product class sold by a firmmarketed in the product class sold by a firm Referred to asReferred to as brand portfoliobrand portfolio The reason is to pursue different marketThe reason is to pursue different marketsegments, different channels of distribution, orsegments, different channels of distribution, ordifferent geographic boundariesdifferent geographic boundaries Maximize market coverage and minimize brandMaximize market coverage and minimize brandoverlapoverlap
  • 11.9Ford Brand PortfolioFord Brand Portfolio
  • 11.10Designing a Brand PortfolioDesigning a Brand Portfolio Basic principles:Basic principles: Maximize market coverageMaximize market coverage so that no potentialso that no potentialcustomers are being ignoredcustomers are being ignored Minimize brand overlapMinimize brand overlap so that brands aren’tso that brands aren’tcompeting among themselves to gain the samecompeting among themselves to gain the samecustomer’s approvalcustomer’s approval
  • 11.11Brand Roles in the PortfolioBrand Roles in the Portfolio FlankersFlankers Cash cowsCash cows Low-end entry-levelLow-end entry-level High-end prestige brandsHigh-end prestige brands
  • 11.12Brand HierarchyBrand Hierarchy A means of summarizing the branding strategyA means of summarizing the branding strategyby displaying the number and nature ofby displaying the number and nature ofcommon and distinctive brand elements acrosscommon and distinctive brand elements acrossthe firm’s products, revealing the explicitthe firm’s products, revealing the explicitordering of brand elementsordering of brand elements A useful means of graphically portraying aA useful means of graphically portraying afirm’s branding strategyfirm’s branding strategy
  • 11.13Brand Hierarchy Tree: ToyotaBrand Hierarchy Tree: ToyotaToyotaCorporationToyota(Trucks)Toyota(SUV/vans)LexusToyotaFinancialServicesToyota(Cars)Corolla PriusAvalon Celica ECHO MatrixMR2SpyderCamryCESLESELEXLEPlatinumEditionXLXLSSESLE
  • 11.14Brand Hierarchy LevelsBrand Hierarchy LevelsFamily Brand (Buick)Corporate Brand (General Motors)Modifier: Item or Model (Ultra)Individual Brand (Park Avenue)
  • 11.15Corporate Brand EquityCorporate Brand Equity Occurs when relevant constituents hold strong,Occurs when relevant constituents hold strong,favorable, and unique associations about thefavorable, and unique associations about thecorporate brand in memorycorporate brand in memory Encompasses a much wider range ofEncompasses a much wider range ofassociations than a product brandassociations than a product brand
  • 11.16Family BrandsFamily Brands Brands applied across a range of productBrands applied across a range of productcategoriescategories An efficient means to link common associationsAn efficient means to link common associationsto multiple but distinct productsto multiple but distinct products
  • 11.17Individual BrandsIndividual Brands Restricted to essentially one product categoryRestricted to essentially one product category There may be multiple product types offered onThere may be multiple product types offered onthe basis of different models, package sizes,the basis of different models, package sizes,flavors, etc.flavors, etc.
  • 11.18ModifiersModifiers Signals refinements or differences in the brandSignals refinements or differences in the brandrelated to factors such as quality levels,related to factors such as quality levels,attributes, functions, etc.attributes, functions, etc. Plays an important organizing role inPlays an important organizing role incommunicating how different products within acommunicating how different products within acategory that share the same brand name arecategory that share the same brand name are
  • 11.19Corporate Image DimensionsCorporate Image Dimensions Corporate product attributes, benefits or attitudesCorporate product attributes, benefits or attitudes QualityQuality InnovativenessInnovativeness People and relationshipsPeople and relationships Customer orientationCustomer orientation Values and programsValues and programs Concern with the environmentConcern with the environment Social responsibilitySocial responsibility Corporate credibilityCorporate credibility ExpertiseExpertise TrustworthinessTrustworthiness LikabilityLikability
  • 11.20Brand Hierarchy DecisionsBrand Hierarchy Decisions The number of levels of the hierarchy to useThe number of levels of the hierarchy to usein generalin general How brand elements from different levels ofHow brand elements from different levels ofthe hierarchy are combined, if at all, for anythe hierarchy are combined, if at all, for anyone particular productone particular product How any one brand element is linked, if at all,How any one brand element is linked, if at all,to multiple productsto multiple products Desired brand awareness and image at eachDesired brand awareness and image at eachlevellevel
  • 11.21Number of Hierarchy LevelsNumber of Hierarchy Levels Principle of simplicityPrinciple of simplicity Employ as few levels as possibleEmploy as few levels as possible Principle of clarityPrinciple of clarity Logic and relationship of all brand elementsLogic and relationship of all brand elementsemployed must be obvious and transparentemployed must be obvious and transparent
  • 11.22Levels of Awareness and AssociationsLevels of Awareness and Associations Principle of relevancePrinciple of relevance Create global associations that are relevant across asCreate global associations that are relevant across asmany individual items as possiblemany individual items as possible Principle of differentiationPrinciple of differentiation Differentiate individual items and brandsDifferentiate individual items and brands
  • 11.23Linking Brands at Different LevelsLinking Brands at Different Levels Principle of prominencePrinciple of prominence The relative prominence of brand elements affectsThe relative prominence of brand elements affectsperceptions of product distance and the type ofperceptions of product distance and the type ofimage created for new productsimage created for new products
  • 11.24Linking Brands Across ProductsLinking Brands Across Products Principle of commonalityPrinciple of commonality The more common elements shared by products,The more common elements shared by products,the stronger the linkagesthe stronger the linkages
  • 11.25Brand Architecture GuidelinesBrand Architecture Guidelines Adopt a strong customer focusAdopt a strong customer focus Avoid over-brandingAvoid over-branding Establish rules and conventions and beEstablish rules and conventions and bedisciplineddisciplined Create broad, robust brand platformsCreate broad, robust brand platforms Selectively employ sub-brands as means ofSelectively employ sub-brands as means ofcomplementing and strengthening brandscomplementing and strengthening brands Selectively extend brands to establish newSelectively extend brands to establish newbrand equity and enhance existing brand equitybrand equity and enhance existing brand equity
  • 11.26Corporate Brand CampaignCorporate Brand Campaign Different objectives are possible:Different objectives are possible: Build awareness of the company and the nature of itsBuild awareness of the company and the nature of itsbusinessbusiness Create favorable attitudes and perceptions of companyCreate favorable attitudes and perceptions of companycredibilitycredibility Link beliefs that can be leveraged by product-specificLink beliefs that can be leveraged by product-specificmarketingmarketing Make a favorable impression on the financial communityMake a favorable impression on the financial community Motivate present employees and attract better recruitsMotivate present employees and attract better recruits Influence public opinion on issuesInfluence public opinion on issues
  • 11.27Using Cause Marketing to BuildUsing Cause Marketing to BuildBrand EquityBrand Equity The process of formulating and implementingThe process of formulating and implementingmarketing activities that are characterized by anmarketing activities that are characterized by anoffer from the firm to contribute a specifiedoffer from the firm to contribute a specifiedamount to a designated cause when customersamount to a designated cause when customersengage in revenue-providing exchanges thatengage in revenue-providing exchanges thatsatisfy organizational and individual objectivessatisfy organizational and individual objectives
  • 11.28Advantages of Cause MarketingAdvantages of Cause Marketing Building brand awarenessBuilding brand awareness Enhancing brand imageEnhancing brand image Establishing brand credibilityEstablishing brand credibility Evoking brand feelingsEvoking brand feelings Creating a sense of brand communityCreating a sense of brand community Eliciting brand engagementEliciting brand engagement
  • 11.29Green MarketingGreen Marketing A special case of cause marketing that isA special case of cause marketing that isparticularly concerned with the environmentparticularly concerned with the environment Explosion of environmentally friendly productsExplosion of environmentally friendly productsand marketing programsand marketing programs
  • 11.30Crisis Marketing GuidelinesCrisis Marketing Guidelines The two keys to effectively managing a crisis areThe two keys to effectively managing a crisis arethat the firm’s response should be swift and thatthat the firm’s response should be swift and thatit should be sincere.it should be sincere.