WHAT IS A BRAND ?Brand is a consumer’s perception about the product thatgives a unique identity to the company’s products andcreate emotional associations with consumers.Al and Laura rise in “The 22 immutable laws of branding”says:“Branding “presells” the product or service to the user it issimply more efficient way to sell things”.
Coke vs. Pepsi In blind taste tests, people prefer the taste of Pepsi over the taste of Coke. However, if the test is not blind and the tasters know which beverage is which, they prefer the taste of Coke over Pepsi! That is the emotional power of a brand. The Coca-Cola brand has the power to actually change an individuals taste!
WHAT A BRAND MEANS TO COMMON PERSON ?A set of product perceptions by the consumer.It is a personality developed over time.A brand signifies a relationship with the customer.It is the company’s most valuable asset. It’s also the main differentiator, the best defense against price competition, and the key to customer loyalty.Competitors can copy your features and benefits, but they can’t steal your brand.It’s a promise.
Oldsmobile• American car brand launched earlier than any other in existence today• 1988 ad campaign featuring the slogan, "This is not your fathers Oidsmobile.“• 1990, ad campaign a new generation of olds.• 2000, Oldsmobiles market share had sputtered to 1.6%, from 6.9% in 1985. And in December 2000, General Motors announced that the Oldsmobile brand would be phased out.
ITS OK, IM WITH THE BRAND• Courtesy of songwriter and performer George Clinton. • Clinton in the 1970s sought the attention of two different segments of record buyers-mainstream listeners, who liked vocal soul music with horns, and progressive listeners, who liked harder-edged funk.• He made 2 different band names: • Parliament, when the music was aimed at popular tastes. • Funkadelic, when it was edgier.• Both bands were very successful, even though some Parliament fans would never listen to Funkadelic and vice versa
ECONOMIES OF SCALE• Shift to narrower and more numerous brands is difficult for even the most astute marketers to accept.• Unilever, for example, fought against market fragmentation by instituting a brand consolidation program in 1999. Its management eliminated hundreds of brands in search of economies of scale.• Among the discarded were such successful brands as Elizabeth Arden cosmetics and the Diversey cleaning and hygiene business.• Five years later, Unilevers sales have stagnated, while primary competitor Procter & Gamble, with its niche branding strategy, has enjoyed healthy gains.
CUSTOMER EQUITY IS THE POINT • Companies geared today to aggrandising their brand assuming Sales will follow. • Firms to be successful over time, should maximize Customer Lifetime Value • Companies must focus on Customer Equity rather than Brand Equity. • Our Attitude should be that Brands come & go but Customers must remain.
THE VALUE OF A BRAND DEPENDS ON THE CUSTOMER• Brand Value of a Brand is highly individualized.• Most Marketing Managers measure Brand Equity with a summary metric of brand strength. • A perfect example of “Flaw of Averages”.• Assigning an Average value to Brand Equity is Dangerous.• Managers believe that Brand Value is Intrinsic.
PUT YOUR BRANDS IN THEIR PLACE “IF U ACCEPT THAT THE GOAL OF MANAGEMENT IS TO GROW CUSTOMER EQUITY, NOT BRAND VALUE, THEN YOU WILL LIKELY T MANAGE YOUR BRANDS IN A DIFFERENT WAY.” There are seven directives that go against the grain of current practice, They are:
1. Make brand decisions subservient to decisions about customer relationship. Strengthening the role of customer segment manager. Assigning managers to specific customers.2. Build brands around customer segments, not the other way around. Focus on the needs and requirements of a particular customer segment.
3. Make your brand as narrow as possible. The purpose of a brand here is to satisfy a small customer segment as it is economically feasible.4. Plan brand extensions based on customer needs, not component similarities. It works well when customers are similar.
5. Develop the capability and the mind-set to hand off customers to other brands in the company. Future profits are driven not by repeat purchases of particular product but by customer’s purchases across all brands.6. Take no heroic measures. If brand managers control the resources they will persist too long with a brand that has lost its punch. Retiring ineffective brands is easier to do if the marketing resources of the firm are controlled by customer segment managers.
7. Change how you measure brand equity. Brand Equity is defined as the overall strength of the brand in the market place and its value to the company that owns it. Brand equity varies from customer to customer. The focus should be on : Brand awareness (advertisement in terms of recognition & recall) Attitude towards the brand Brand ethics
BRAND EQUITY IN SCHEME OF THINGS Brand managers have long struggled to find the right formula for measuring brand equity.To measure brand equity, First, we must put it in the context of customer equity. Second, we must recognize that it varies by individual.Lets start with the bottom line, which is customer equity, the sum of the lifetime values of the firms customers. As we know, a customers lifetime value is driven by choices, and those choices are driven by three considerations i.e.I. Quality,II. Price,III. Convenience
Once the relative importance of brand equity is established, the next challenge is to figure out what drives brand equity in a particular company. These drivers include elements like consumer’s awareness of the brand, their attitudes toward the brand, and their perceptions of the companys ethics and corporate citizenship. The final step is to statistically link the customer equity drivers to customer lifetime value-at the level of the individual customer.
When the companys mindsets change to consumersThen the question arisesHOW BIG SHOULD THE BRAND BE?
• Customers taste and preferences changes from time to time• Customers as a individual has unique taste and desires• Customers loot at brands to provide safety. Buying a popular brands not only increases the customer’s trust that the offering will perform but also contributes to the customer social needs• Like in the magazine industry ,first there was only general magazines but nowadays there is a separate magazine for each thing like life, health and fitness.
• People learning to drive quickly realize that they have a vulnerable area where there vision is hindered• In same way for many organizations, brand is one those blind spots• Marketing Executives must begin looking at the problem of brand management more deliberately and from customer from point of view.• In customer centered organization, brands are important, but its not all• Therefore companies cant be structured, staffed and motivated to grow brand.
Develop a competent cadre of customer First Step segment managersSecond step Hand them the purse strings Track and reward their progress using reliableThird Step metrics for customer and brand equity