Session 13  MG 220 MBA - 4 Oct 10
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Session 13 MG 220 MBA - 4 Oct 10

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Session 13

Session 13
MG 220 Marketing Management
MBA 10

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Session 13  MG 220 MBA - 4 Oct 10 Session 13 MG 220 MBA - 4 Oct 10 Presentation Transcript

  • Part 4: Building Strong Brands
    > What is Brand Equity?
    > Building Brand Equity
    > Measuring Brand Equity
    > Discussion on Assignment
    > Discussion on Term Project
    Class Presentation | Session 14 | 5 Oct 2010
  • BRANDS!!!!ALL AROUND US….
    Class Discussion on what brands are:
    MG 220 Marketing Management
    2
  • What is Brand EquityDefining Brands & Role of Brands
    What is a brand?
    AMA definition:
    “a name, term, sign, symbol ,or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competitors”
    Brands identify source
    Consumer identify products through brands as to which satisfy their needs and which don’t
    For Companies:
    Brands simplify product handling | inventory management
    Legal Protection
    Brands signal a certain level of quality => predictability of demand for firm
    Competitors can duplicate manufacturing process, but cannot match impressions created from years of marketing
    MG 220 Marketing Management
    3
  • What is Brand EquityThe scope of Branding
    Branding is all about creating differences. To brand a product, it is necessary to teach consumers:
    Who the product is
    What the product does
    Why consumers should care
    Consumers must be convinced that there are meaningful differences among products in a category
    Branding can be applied virtually anywhere where there is choice. Consider branding:
    Goods
    Services
    Stores
    Person
    Place
    Organization
    Ideas and so on…
    MG 220 Marketing Management
    4
  • What is Brand EquityDefining Brand Equity
    Brand Equity is added value endowed to product or service
    Most important is to see what the brand is for customers
    Thus the concept of Customer-based brand equity: Differential effect that brand knowledge has on consumer response to the marketing of that brand
    It can be either positive or negative based on customers reaction
    Three key components of brand equity:
    Differences in customer response
    Brand Knowledge
    Perceptions, preferences and behavior related
    Brand Equity as a Bridge
    Marketing investments in brand-building need to be carefully evaluated
    Brand knowledge created in this process acts dictates future direction of brand
    MG 220 Marketing Management
    5
  • What is Brand EquityBrand Equity Models
    1. Brand Asset Valuator (BAV)
    Developed by Young & Rubicam (Y&R) ad agency
    Four key pillars of brand equity:
    Differentiation (how much it is seen different from others)
    Relevance (breadth of brand’s appeal)
    Esteem (respect)
    Knowledge (familiarity of consumers)
    Differentiation & Relevance: Brand Strength – the future direction
    Esteem & Knowledge: Brand Stature – report of past performance
    A power grid is formed to identify brand development
    New brands (low on all DREK)
    Strong New brands (high on D than R, but low on EK)
    Leadership brands (high on all DREK)
    Declining brands (K highest, then E and low DR)
    Some examples for BAV model from local brands
    MG 220 Marketing Management
    6
  • What is Brand EquityBrand Equity Models
    2. Aaker Model
    Developed by David Aaker
    Five key categories of brand asset (or liability) are:
    Brand Loyalty
    Brand Awareness
    Perceived Quality
    Brand Associations
    Proprietary assets
    Brand identity is key to building brand equity. Its 4 perspectives are:
    Brand as product (prod scope, attributes, quality, uses, users, country of origin)
    Brand as organization (org. attributes, local vs global)
    Brand as person (brand personality, brand-customer relationships)
    Brand as symbol (visual imagery/metaphors and brand heritage)
    Brand identity includes:
    Core identity – central, timeless essence of brand
    Extended identity - combination of various brand identity elements organized into meaningful, cohesive groups
    Some examples for Aaker model
    MG 220 Marketing Management
    7
  • What is Brand EquityBrand Equity Models
    3. BRANDZ
    Developed by Market Research consultants Millward Brown and WPP
    Brand building is a process of sequential steps each completed after the other:
    Presence – Do I know about it?
    Relevance – Does it offer me something?
    Performance – Can it deliver?
    Advantage – Does it offer something different than others?
    Bonding – Nothing else beats it
    Bonded consumers are loyal and spend more but are less in numbers
    4. BRAND RESONANCE
    Also in sequential steps
    Identity: Ensuring brand’s identification with specific product/category
    Meaning: Firmly establishing totality of brand meaning in minds
    Response: eliciting proper customer response
    Relationships: converting responses into relationships
    Brand building blocks:
    Brand salience (how often and easily brand is though about in purchase)
    Brand performance (how brand meets customer needs)
    Brand imagery (how brand meets psych. and social needs)
    Brand judgments (consumer’s own personal opinion and judgments)
    Brand feelings (customer’s emotional responses and reaction)
    Brand resonance (extent to which customers are in synch)
    MG 220 Marketing Management
    8
  • What is Brand EquityBrand Equity Models
    Brand resonance pyramid helps identify psychological bond consumers have with the brand
    MG 220 Marketing Management
    9
  • What is Brand EquityBuilding Brand Equity
    Process of building brand equity is:
    Initial choices for brand elements or identities that make a brand
    Product and services and all accompanying marketing activities and supporting marketing programs
    Other associations by linking it to some other entity
    1. Choosing Brand Elements
    Trademark elements which are used to identify and differentiate brand
    Brand element choice criteria
    Developing Brand Elements – through strong research and understanding of consumer preferences and perceptions
    MG 220 Marketing Management
    10
  • What is Brand EquityBuilding Brand Equity
    2. Developing Holistic Marketing Activities
    Brands are not built by advertising alone
    Range of contacts and touchpoints are used
    Brand contact is an information-bearing experience a customer or prospect has with the brand, the product category or the market that relates to the marketer’s product or services
    Three important themes in marketing activities for brand development are:
    Personalization
    Making it as relevant to consumers
    Integration
    Mixing and matching marketing activities
    Brand awareness is consumers’ ability to identify brand under different circumstances
    Brand image is perception and belief held by consumer as reflected in associations held in memory
    Internalization
    Ensuring that employees also ‘live the brand’
    B2E – Business to Employees
    MG 220 Marketing Management
    11
  • What is Brand EquityBuilding Brand Equity
    3. Leveraging Secondary Associations
    Brands associations may be linked further to other entities having their own associations thus creating ‘secondary associations’
    This is an important way of building brand equity by ‘borrowing it’
    MG 220 Marketing Management
    12
  • What is Brand EquityMeasuring Brand Equity
    Indirect approach – assessing potential sources of brand equity by identifying consumer’s brand knowledge structures
    Direct approach – actual impact of brand knowledge on consumer’s response to different aspect of marketing
    Important for marketers:
    Identify sources of brand equity – Brand audits
    How these sources and outcomes change, if at all over time – Brand tracking
    Brand audits
    Consumer-focused exercise
    Involving series of procedures to assess health of brand and uncover its sources of brand equity and suggest ways to improve and leverage its equity
    Brand tracking
    Information collection to understand the performance of brands
    Generally use quantitative measures
    Brand Valuation
    Putting a financial value to brand
    May even be shown in balance sheet!
    MG 220 Marketing Management
    13
  • Part 4: Building Strong Brands
    > Managing Brand Equity
    > Devising a Branding Strategy
    > Developing & Communicating a Positioning Strategy
    > Differentiation Strategies
    > Product Life-Cycle Marketing Strategies
    > Quiz 4 (Part 3: Chap 7 & 8)
    Class Presentation | Session 14 | 7 Oct 2010