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Session 14  MG 220 BBA - 4 Oct 10
 

Session 14 MG 220 BBA - 4 Oct 10

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Session 14

Session 14
MG 220 Marketing Management
BBA Sec C

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    Session 14  MG 220 BBA - 4 Oct 10 Session 14 MG 220 BBA - 4 Oct 10 Presentation Transcript

    • Part 4: Building Strong Brands
      > What is Brand Equity?
      > Building Brand Equity
      > Measuring Brand Equity
      > Discussion on Results of Mid I
      Class Presentation | Session 14 | 4 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 15 | 6 Oct 2010