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  • 1. Brands, Brand Portfolios and Loyalty MKT4007
  • 2. What makes a brand a brand?
    • Differentiated from competitors
    • Offers some “ added-vale ”
    • Consistent integrated communications
    • Multi-sensory emotional expression of identity (smell, touch, feel, hear, taste)
    • “ Virtual Monopoly” (Oligopoly?)
  • 3. Main Benefits of Brands
    • Customers:
    • Easily identify “trusted” products/services
    • Reduces risk of purchases/time spent
    • Identifies product associated values
    • Brand-owners:
    • Possible premium pricing
    • Differentiate the products/services
    • Enhances loyalty
    • Possibility of brand extensions etc.
  • 4. Choice Brand Brand A Brand B Brand C Brand D Brand E
  • 5. Product for each market? Target Market A Target Market B Target Market C Target Market D Brand Owner target specific Product target specific Product target specific Product
  • 6. Brand for each market Owner Brand A Target Market A Brand B Brand C Brand D Target Market B Target Market C Target Market D
  • 7. Brand for each market Rezidor Radisson SAS Modern Business Park Inn Country Inn Regent Budget Business Family Classic Luxury
  • 8. Brand Regard & Recognition Brand Recognition Brand Regard Reputation Differentiation Momentum Affinity Krish, et al, 2001
  • 9. Regard Recognition Low High High Regard Opportunity New or Unfocused Brand Brand Leaders Unrealised Potential
  • 10. Lifestyle Brands
    • Quicksilver, Apple, Abercombie & Fitch, Zara, Porsche etc
    • Segmented by “Lifestyle”-reflection rather than product category
    • Often luxury or premium brands
    • Many failed attempts, e.g.: McDonalds
  • 11. Mechanisms used
    • Co-Branding
    • Geographical branding
    • Ingredient branding
    • Support services
    • Award symbols
  • 12. Loyalty
    • Brands promote loyalty (=monopoly in the consumers mind)
    • Measured by Guadagni-Little Index or: ρ t : = αρ t − 1 + (1 − α) Xt 0 = Non Loyal Customer 1 = Totally Loyal Customer
  • 13. GLI= 0 Switcher Shifting Soft Core Loyal GLI= 1 Hard Core Loyal
  • 14. CRM Model of Brand Loyalty Brand Loyalty
    • Relationship with Brand - Ability to meet needs
    • Superiority on what is important
    • Opinion about alternatives
    • nterest in seeking alternatives
    Potential - Expected change in category use - Expected change in brand use - Propensity to switch Customers: Dynamic Stable Challenging Reluctant Prospects: Dynamic Stable Challenging Reluctant Customer Lifetime Value Value Simulator Attrition Models/Churn Campbell-Ewald
  • 15. Relationship Potential Weak Stable Reluctant Dynamic Challenging