What is Brand building? Involves all the activities that are necessary to nurture a brand into a healthy cash flow stream for the company after launch
Advertising does a lot to help build brands
Every ad contributes to make the brand what it is in the minds of the consumer – David Ogilvy
A company’s brand is the primary source of its competitive advantage and is a very valuable strategic asset – David Aaker
When a commodity becomes a brand, it is said to have ‘equity’. It starts with a name and can go up or down depending on the marketing activity that is done by the marketer. A name becomes a brand when consumers associate it with a set of tangible and intangible benefits that they obtain from the product or service.
How to measure equity?
The premium a brand can command in the market
The difference between the intrinsic and perceived value of the product
Building Brand Equity
Distinguish product from others in the market – Value proposition
Align what it says about the brand in advertising with what it actually delivers – Creating the brand
Generates enormous profits
Expands future strategic opportunities
What do power brands have that others don’t?
A distinctive product
Delivering brand promise
Personality and presence
Emotional bond with the customer
Generates relationships measurably stronger than ordinary brands
Seem to be present everywhere, enforcing distinctiveness
Successful brand extensions
Multiple concept and channels
Brand managers of market-savvy companies need
Superior insight into customer needs
Ability to devise product/services that powerfully meet those needs
Agility to redefine its offering as those needs change
Creativity to produce exciting and compelling advertising
Tangibles of brand equity
Intangibles of brand equity
Slogan and its underlying associations
Trademarks and patents
Creating the brand
Choosing brand name
Developing rich associations and promises
Manage customer brand contacts to meet and exceed customer expectations
Porter’s strategic choices
Low cost leader
Should not be overpositioned
Should not be underpositioned
Should not be ambiguous
Should not promise irrelevant benefits
Promise should be credible
Choosing a brand name
What does it mean?
What performance/ expectations/ associations does it evoke?
What degree of preference does it create?
Brand names should denote
Be easy to pronounce/remember/recognise
Not have poor meanings in other countries or languages
‘ owned’ word
Symbols and logos
These are used to create the Brand personality, just like a human being. Therefore in some way the values and personality of the ambassador rubs off into the brand. Therfore the brand and choice of the ambassador must fit.
Brand Status Esteem Familiarity Troubled brand. Product upgradation required Product should be phased out Cash cow. Need to sustain brand building activities Step up advertising