Welcome to<br />MKT 100-021Week 9 – Brand management<br />Anthony<br />Francescucci<br />Assistant Professor, Marketing<br...
Agenda<br />2<br />
Brand Management<br />3<br />
What Comes to mind when you see this brand?<br />Honda – reliability, smooth engines<br />4<br />
What Comes to mind when you see this brand?<br />Coach -  high quality, great style bags<br />5<br />
What Comes to mind when you see this brand?<br />Rolex  -  status, high quality watch, cool, simple<br />6<br />
What Comes to mind when you see this brand?<br />Apple  -  cool, simple, useful design<br />7<br />
What Comes to mind when you see this brand?<br />Wal-Mart – every-day-low-prices<br />8<br />
What is a Brand?<br />9<br />
How is a Brand Reputation Created?<br />10<br />
Example of brand reputation<br />11<br />
Types of Brand Loyalty<br />12<br />
Brand Extension: Leveraging Reputation<br />13<br />
Keys to Successful Brand Extension <br />14<br />
Examples of Brand Extensions<br />15<br />
Brand Name Logo and Trademark  <br /><ul><li>It should attract attention</li></ul>16<br />
brand Name Logo and Trademark<br /><ul><li>It should be memorable</li></ul>17<br />
Brand Name Logo and Trademark <br /><ul><li>It should help communicate the benefit of the product (Easy-Off oven cleaner)<...
<ul><li>It should distinguish the product from competing brands</li></ul>Insert product, ad, logo, maybe competing brands<...
Changing Brand Name Logo  <br />20<br />
Any Questions<br />21<br />
Metric Mastery 7<br />Break-Even<br />22<br />
Break Even Analysis<br />23<br />Revenues<br />Total Costs<br />(when VC Stacked<br />onto FC  = Total Costs)<br />Break-E...
BREAK EVEN point / Break Even Sales<br />24<br />How many units of Product X do I need to sell before I start making money...
REMEMBER ACME COACH<br />25<br />Contribution<br />Margin<br />Revenue<br />COGS or<br />Variable Costs<br />$150<br />$45...
Consider this scenario<br />26<br />Contribution<br />Margin<br />Revenue<br />COGS or<br />Variable Costs<br />$200<br />...
Suppose further<br />27<br />Contribution<br />Margin<br />Revenue<br />COGS or<br />Variable Costs<br />$200<br />$350<br...
Any Questions<br />28<br />
Let’s complete worksheet<br />29<br />
Metrics Mastery 8<br />Marking Return On Investment (MROI)<br />OR<br />Return On Marketing Investment (ROMI)<br />30<br />
CONSIDER THIS SCENARIO<br />31<br />A farm equipment company was considering a direct mail campaign to remind Customers to...
Marketing ROI - is a metric used to measure the overall effectiveness of a marketing campaign by considering the increment...
MROI Example 1<br />A farm equipment company was considering a direct mail campaign to remind <br />Customers to have trac...
MROI Example 2<br />34<br />Revenue <br />Attributable <br />to Marketing<br />Contribution <br />Percent<br />Marketing <...
MROI Example 3<br />35<br />Revenue <br />Attributable <br />to Marketing<br />Contribution <br />Percent<br />Marketing <...
Any Questions<br />36<br />
Let’s complete worksheet<br />37<br />
Groups of 2 or 3<br />No more, no less<br />Assignment #2<br />Bell Internet-based Video Streaming<br />Due March 29th, 20...
Essay Assignment #2<br />39<br />
Assume Bell Has decided to proceed to market<br />Focus of this assignment is on STP<br />40<br />
Essay Assignment components<br />41<br />
Market Strategy<br />42<br />
Financial Analysis<br />43<br />
Recommendations<br />44<br />Be specific<br />
Formatting<br />45<br />
Don’t Forget<br />46<br />
Before you leave today<br />Hand In:<br />47<br />
See you next Week<br />48<br />
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Mkt 100 021 - week 9 - brand management

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  • The break-even level represents the sales amount – in either unit or revenue terms – that is required to cover total costs (both fixed and variable). Profit at break-even is zero. Break-even is only possible if a firm’s prices are higher than its variable costs per unit Break-even analysis is useful in a variety of situations to marketers It is often used to evaluate the likely profitability of marketing actions that affect fixed costs, prices, or variable costs per unit
  • The break-even point for any business activity is defined as the level of sales at which neither a profit nor a loss is made on that activity That is where Total Revenues = Total Costs
  • Transcript of "Mkt 100 021 - week 9 - brand management"

    1. 1. Welcome to<br />MKT 100-021Week 9 – Brand management<br />Anthony<br />Francescucci<br />Assistant Professor, Marketing<br />Please ensure all electronic devices are in “silent mode”, “vibrate mode” or “turned off”<br />1<br />
    2. 2. Agenda<br />2<br />
    3. 3. Brand Management<br />3<br />
    4. 4. What Comes to mind when you see this brand?<br />Honda – reliability, smooth engines<br />4<br />
    5. 5. What Comes to mind when you see this brand?<br />Coach - high quality, great style bags<br />5<br />
    6. 6. What Comes to mind when you see this brand?<br />Rolex - status, high quality watch, cool, simple<br />6<br />
    7. 7. What Comes to mind when you see this brand?<br />Apple - cool, simple, useful design<br />7<br />
    8. 8. What Comes to mind when you see this brand?<br />Wal-Mart – every-day-low-prices<br />8<br />
    9. 9. What is a Brand?<br />9<br />
    10. 10. How is a Brand Reputation Created?<br />10<br />
    11. 11. Example of brand reputation<br />11<br />
    12. 12. Types of Brand Loyalty<br />12<br />
    13. 13. Brand Extension: Leveraging Reputation<br />13<br />
    14. 14. Keys to Successful Brand Extension <br />14<br />
    15. 15. Examples of Brand Extensions<br />15<br />
    16. 16. Brand Name Logo and Trademark <br /><ul><li>It should attract attention</li></ul>16<br />
    17. 17. brand Name Logo and Trademark<br /><ul><li>It should be memorable</li></ul>17<br />
    18. 18. Brand Name Logo and Trademark <br /><ul><li>It should help communicate the benefit of the product (Easy-Off oven cleaner)</li></ul>18<br />
    19. 19. <ul><li>It should distinguish the product from competing brands</li></ul>Insert product, ad, logo, maybe competing brands<br />if they look inferior. <br />Brand Name Logo and Trademark <br />19<br />
    20. 20. Changing Brand Name Logo <br />20<br />
    21. 21. Any Questions<br />21<br />
    22. 22. Metric Mastery 7<br />Break-Even<br />22<br />
    23. 23. Break Even Analysis<br />23<br />Revenues<br />Total Costs<br />(when VC Stacked<br />onto FC = Total Costs)<br />Break-Even<br />Point<br />Profit<br />Fixed Costs<br />Loss<br />
    24. 24. BREAK EVEN point / Break Even Sales<br />24<br />How many units of Product X do I need to sell before I start making money?<br />How many units of Product X do I need to sell to cover fixed / overhead costs? To cover a specific profit goal?<br />Fixed Costs<br />Break-Even<br />Point (Sales)<br />Contribution<br />Margin /unit<br />
    25. 25. REMEMBER ACME COACH<br />25<br />Contribution<br />Margin<br />Revenue<br />COGS or<br />Variable Costs<br />$150<br />$450<br />$300<br />$15,500<br />Break-Even<br />Point (Sales)<br />Fixed Costs<br />103.3 units<br />Contribution<br />Margin /unit<br />$150<br />
    26. 26. Consider this scenario<br />26<br />Contribution<br />Margin<br />Revenue<br />COGS or<br />Variable Costs<br />$200<br />$350<br />$100 + $50<br />$30,000<br />Break-Even<br />Point (Sales)<br />Fixed Costs<br />150 units<br />Contribution<br />Margin /unit<br />$200<br />
    27. 27. Suppose further<br />27<br />Contribution<br />Margin<br />Revenue<br />COGS or<br />Variable Costs<br />$200<br />$350<br />$100 + $50<br />$55,000<br />Break-Even<br />Point (Sales)<br />Fixed Costs<br />275 units<br />Contribution<br />Margin /unit<br />$200<br />
    28. 28. Any Questions<br />28<br />
    29. 29. Let’s complete worksheet<br />29<br />
    30. 30. Metrics Mastery 8<br />Marking Return On Investment (MROI)<br />OR<br />Return On Marketing Investment (ROMI)<br />30<br />
    31. 31. CONSIDER THIS SCENARIO<br />31<br />A farm equipment company was considering a direct mail campaign to remind Customers to have tractors serviced before spring planting. The campaign is expected to cost $7000 and to increase revenue from $25,000 to $50,000. The contribution margin on tractor servicing revenues (after parts and labour) averages 60%<br />How do we determine if this is a good marketing investment decision?<br />
    32. 32. Marketing ROI - is a metric used to measure the overall effectiveness of a marketing campaign by considering the incremental contribution over the cost of the campaign.<br />marketing Return on Investment<br />32<br />Contribution Margin $<br />Attributable to Marketing<br />Revenue <br />Attributable <br />to Marketing<br />Contribution <br />Margin <br />Percent<br />Marketing <br />Costs<br />_<br />X<br />Return <br />On <br />Marketing <br />Investment<br />(ROMI)%<br />x 100<br />=<br />Marketing <br />Costs<br />(Source: Farris, Bendle, Pfeifer, Reibstein, 2008)<br />
    33. 33. MROI Example 1<br />A farm equipment company was considering a direct mail campaign to remind <br />Customers to have tractors serviced before spring planting. The campaign is expected to cost $7000 and to increase revenue from $25,000 to $50,000. The contribution on tractor servicing revenues (after parts and labour) averages 60%<br />Revenue <br />Attributable <br />to Marketing<br />Contribution <br />Percent<br />Marketing <br />Costs<br />_<br />X<br />Return <br />On <br />Marketing <br />Investment<br />(ROMI)<br />=<br />$8,000<br />$15,000<br />Marketing <br />Costs<br />60%<br />$7,000<br />$25,000<br />114.3%<br />x 100<br />$7,000<br />(Source: Farris et. al, 2008)<br />33<br />
    34. 34. MROI Example 2<br />34<br />Revenue <br />Attributable <br />to Marketing<br />Contribution <br />Percent<br />Marketing <br />Costs<br />_<br />X<br />Return <br />On <br />Marketing <br />Investment<br />(ROMI)<br />=<br />$3,000<br />$4,500<br />Marketing <br />Costs<br />($10-$1)/$10<br />= 90%<br />$1000 + <br />500 X $1<br />= $1,500<br />500 X $10<br />= $5,000<br />200%<br />x 100<br />$1,500<br />
    35. 35. MROI Example 3<br />35<br />Revenue <br />Attributable <br />to Marketing<br />Contribution <br />Percent<br />Marketing <br />Costs<br />_<br />X<br />Return <br />On <br />Marketing <br />Investment<br />(ROMI)<br />=<br />$200<br />$1,600<br />Marketing <br />Costs<br />($10-$2)/$10<br />= 80%<br />$1000 + <br />200 X $2<br />= $1,400<br />200 X $10<br />= $2,000<br />14%<br />x 100<br />$1,400<br />
    36. 36. Any Questions<br />36<br />
    37. 37. Let’s complete worksheet<br />37<br />
    38. 38. Groups of 2 or 3<br />No more, no less<br />Assignment #2<br />Bell Internet-based Video Streaming<br />Due March 29th, 2011 <br />at 11:59 pm<br />38<br />
    39. 39. Essay Assignment #2<br />39<br />
    40. 40. Assume Bell Has decided to proceed to market<br />Focus of this assignment is on STP<br />40<br />
    41. 41. Essay Assignment components<br />41<br />
    42. 42. Market Strategy<br />42<br />
    43. 43. Financial Analysis<br />43<br />
    44. 44. Recommendations<br />44<br />Be specific<br />
    45. 45. Formatting<br />45<br />
    46. 46. Don’t Forget<br />46<br />
    47. 47. Before you leave today<br />Hand In:<br />47<br />
    48. 48. See you next Week<br />48<br />
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