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Brand management ppt

Brand management ppt bec bagalkot mba 2009

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Brand management ppt

  2. 2. What is a Brand? A brand is a name, term, sign, symbol, or design which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. 2
  3. 3. New Branding Challenges Brands are important as ever  Consumer need for simplification  Consumer need for risk reduction Brand management is as difficult as ever  Savvy consumers  Increased competition  Decreased effectiveness of traditional marketing tools and emergence of new marketing tools  Complex brand and product portfolios 3
  4. 4. The Customer/Brand Challenge In this difficult environment, marketers must have a keen understanding of:  customers  brands  the relationship between the two 4
  5. 5. The Concept of Brand Equity The brand equity concept stresses the importance of the brand in marketing strategies. Brand equity is defined in terms of the marketing effects uniquely attributable to the brand.  Brand equity relates to the fact that different outcomes result in the marketing of a product or service because of its brand name, as compared to if the same product or service did not have that name. 5
  6. 6. The Concept of Customer-Based Brand Equity Customer-based brand equity  Differential effect  Customer brand knowledge  Customer response to brand marketing 6
  7. 7. Determinants ofCustomer-Based Brand Equity Customer is aware of and familiar with the brand Customer holds some strong, favorable, and unique brand associations in memory 7
  8. 8. Building Customer-Based Brand Equity Brand knowledge structures depend on . . .  The initial choices for the brand elements  The supporting marketing program and the manner by which the brand is integrated into it  Other associations indirectly transferred to the brand by linking it to some other entities 8
  9. 9. Benefits of Customer-Based Brand Equity Enjoy greater brand loyalty, usage, and affinity Command larger price premiums Receive greater trade cooperation & support Increase marketing communication effectiveness Yield licensing opportunities Support brand extensions. 9
  10. 10. Customer-Based Brand Equity as a “Bridge” Customer-based brand equity represents the “added value” endowed to a product as a result of past investments in the marketing of a brand. Customer-based brand equity provides direction and focus to future marketing activities 10
  11. 11. The Key to Branding For branding strategies to be successful, consumers must be convinced that there are meaningful differences among brands in the product or service category. Consumer must not think that all brands in the category are the same. PERCEPTION = VALUE 11
  12. 12. Strategic Brand Management Strategic brand management involves the design and implementation of marketing programs and activities to build, measure, and manage brand equity. The strategic brand management process is defined as involving four main steps: 1) Identifying and establishing brand positioning and values 2) Planning and implementing brand marketing programs 3) Measuring and interpreting brand performance 4) Growing and sustaining brand equity 12
  13. 13. Strategic Brand Management Process STEPS KEY CONCEPTS Mental maps Identify and Establish Competitive frame of referenceBrand Positioning and Values Points-of-parity and points-of-difference Core brand values Brand mantra Plan and Implement Mixing and matching of brand elements Brand Marketing Programs Integrating brand marketing activities Leveraging of secondary associations Brand Value Chain Measure and Interpret Brand audits Brand Performance Brand tracking Brand equity management system Brand-product matrix Grow and Sustain Brand portfolios and hierarchies Brand Equity Brand expansion strategies Brand reinforcement and revitalization 13
  14. 14. Motivation for Customer-Based Brand Equity Model Marketers know strong brands are important but aren’t always sure how to build one. CBBE model was designed to be …  comprehensive  cohesive  well-grounded  up-to-date  actionable 14
  15. 15. Rationale of Customer-Based Brand Equity Model Basic premise: Power of a brand resides in the minds of customers Challenge is to ensure customers have the right types of experiences with products & services and their marketing programs to create the right brand knowledge structures:  Thoughts  Feelings  Images  Perceptions  Attitudes 15
  16. 16. Building Customer-Based Brand Equity Building a strong brand involves a series of steps as part of a “branding ladder” A strong brand is also characterized by a logically constructed set of brand “building blocks.”  Identifies areas of strength and weakness  Provides guidance to marketing activities 16
  18. 18. Salience Dimensions Depth of brand awareness  Ease of recognition & recall  Strength & clarity of category membership Breadth of brand awareness  Purchase consideration  Consumption consideration 18
  19. 19. Performance Dimensions Primary characteristics & supplementary features Product reliability, durability, and serviceability Service effectiveness, efficiency, and empathy Style and design Price 19
  20. 20. Imagery Dimensions User profiles  Demographic & psychographic characteristics  Actual or aspirational  Group perceptions -- popularity Purchase & usage situations  Type of channel, specific stores, ease of purchase  Time (day, week, month, year, etc.), location, and context of usage Personality & values  Sincerity, excitement, competence, sophistication, & ruggedness History, heritage, & experiences  Nostalgia 20  Memories
  21. 21. Judgment Dimensions Brand quality  Value  Satisfaction Brand credibility  Expertise  Trustworthiness  Likability Brand consideration  Relevance Brand superiority  Differentiation 21
  22. 22. Feelings Dimensions Warmth Fun Excitement Security Social approval Self-respect 22
  23. 23. Resonance Dimensions Behavioral loyalty  Frequency and amount of repeat purchases Attitudinal attachment  Love brand (favorite possessions; “a little pleasure”)  Proud of brand Sense of community  Kinship  Affiliation Active engagement  Seek information  Join club  Visit web site, chat rooms 23
  24. 24. Customer-Based Brand Equity Model Consumer- INTENSE, ACTIVE LOYALTY Brand Resonance RATIONAL & Consumer Consumer EMOTIONAL Judgments Feelings REACTIONS POINTS-OF- PARITY & Brand Brand POINTS-OF- Performance Imagery DIFFERENCE DEEP, BROAD Brand Salience BRAND AWARENESS 24
  25. 25. Brand Positioning Define competitive frame of reference  Target market  Nature of competition Define desired brand knowledge structures  Points-of-parity  necessary  competitive  Points-of-difference 25  strong, favorable, and unique brand associations
  26. 26. Issues in Implementing Brand Positioning Establishing Category Membership Identifying & Choosing POP’s & POD’s Communicating & Establishing POP’s & POD’s Sustaining & Evolving POD’s & POP’s 26
  27. 27. Establishing Category Membership Product descriptor Exemplar comparisons 27
  28. 28. Identifying & Choosing POP’s & POD’s Desirability criteria (consumer perspective)  Personally relevant  Distinctive & superior  Believable & credible Deliverability criteria (firm perspective)  Feasible  Profitable  Pre-emptive, defensible & difficult to attack 28
  29. 29. Major Challenges in Positioning Find compelling & impactful points- of-difference (MacMillan & McGrath, HBR, ‘97)  How do people become aware of their need for your product and service?  How do consumers find your offering?  How do consumers make their final selection?  How do consumers order and purchase your product or service?  What happens when your product or service is delivered?  How is your product installed? 29  How is your product or service paid for?
  30. 30. Major Challenges in Positioning Find compelling & impactful points- of-difference (cont.)  How is your product stored?  How is your product moved around?  What is the consumer really using your product for?  What do consumers need help with when they use your product?  What about returns or exchanges?  How is your product repaired or serviced?  What happens when your product is disposed of or no longer used? 30
  31. 31. Communicating & Establishing POP’s & POD’s Create POP’s and POD’s in the face of attribute & benefit trade-offs  Price & quality  Convenience & quality  Taste & low calories  Efficacy & mildness  Power & safety  Ubiquity & prestige  Comprehensiveness (variety) & simplicity  Strength & refinement 31
  32. 32. Strategies to Reconcile Attribute & Benefit Trade-Offs Establish separate marketing programs Leverage secondary association (e.g., co- brand) Re-define the relationship from negative to positive 32
  33. 33. Sustaining & Evolving POP’s & POD’s Core Brand Values & Core Brand Proposition 33
  34. 34. Core Brand Values Set of abstract concepts or phrases that characterize the 5-10 most important dimensions of the mental map of a brand. Relate to points-of-parity and points-of- difference Mental Map  Core Brand Values  Brand Mantra 34
  35. 35. Brand Mantras A brand mantra is an articulation of the “heart and soul” of the brand.  Brand mantras are short three to five word phrases that capture the irrefutable essence or spirit of the brand positioning and brand values. Nike  Authentic Athletic Performance Disney  Fun Family Entertainment 35
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  38. 38. Introdu ction to AdvertOutline ising The mandate for effectiveness What makes an ad effective? The world of advertising The five players of advertising The evolution of advertising
  39. 39.  Today advertising is in a bind The Mandate for Advertisers expect specific Effectiveness results that lead to sales Advertising must be effective 39
  40. 40. What Makes an Ad Effective? Effective ads work on two levels: with consumers and with advertisers Characteristics of effective ads:  Strategy 40  -
  41. 41. The World of AdvertisingDefining advertising • A paid form of communication • A sponsor is identified • Tries to persuade or influence the 41 consumer to do
  42. 42. Types of Advertising Brand advertising  Business-to- Retail/local business advertising advertising Political  Institutional advertising advertising Directory  Public service advertising advertising (PSA) Direct-response  Interactive 42 advertising
  43. 43. The Roles of Advertising Marketing role Communication role Economic role Societal role 43
  44. 44.  Functions of Advertising 44
  45. 45. The Five Players of Advertising Advertiser Advertising agency  The advertising department  The in-house agency Media 45 Vendors
  46. 46. The Evolution of Advertising Age of print Industrial revolution and emergence of consumer society Modern advertising: Agencies, science 46 and creativity
  47. 47. Current Advertising Issues Interactive advertising Globalization Niche marketing Integrated marketing communications (IMC) 47
  48. 48. How Brands Work Brand personalities Branding Trust Brand image Brand relationships Brand equity 48
  49. 49. MARKETING PLANNING PROCESS Complex, Varied Marketing ActivityDetailed, Comprehensive, Rich RobustMarketing Marketing Models Measures 49
  50. 50. Role of Integrated Marketing Communications Marketing communications …  are the “voice” of the brand and are a means by which it can establish a dialogue and build relationships with consumers.  allow marketers to inform, persuade, incent, and remind consumers directly or indirectly  can contribute to brand equity by establishing the brand in memory and linking strong, favorable, and unique associations to it. 50
  51. 51. Role of Integrated Marketing Communications (Cont.) Consumers can be told or shown how and why a product is used, by what kind of person, and where and when; Consumers can learn about who makes the product and what the company and brand stand for Consumers be given an incentive or reward for trial or usage Brands can be linked to other …  People  Places  Events  Brands  Experiences  Feelings 51  Things
  52. 52. Simple Test forMarketing Communications 1. 3. 2.Current Desired Brand BrandKnowledge Knowledge 52
  53. 53. Integrated Marketing Communications and Customer-Based Brand Equity One implications of the CBBE framework is that the manner in which brand associations are formed does not matter -- only the resulting strength, favorability, and uniqueness 53
  54. 54. Designing Integrated Marketing Communications Programs From the perspective of customer-based brand equity, marketers should evaluate all possible communication options available to create knowledge structures according to effectiveness criteria as well as cost considerations. Different communication options have different strengths and can accomplish different objectives. 54
  55. 55. Alternative Communication Options (Consumer) Media Advertising (TV, radio, newspapers, magazines) Direct Response Advertising Interactive (on-line) Advertising & Web Sites Outdoor Advertising (billboards, posters, cinema) Point-of-Purchase Advertising Trade Promotions Consumer Promotions Sponsorship of Event Marketing Publicity or Public Relations 55
  56. 56. Alternative Communication Options (Business-to-Business) Media Advertising (TV, radio, newspaper, magazines) Trade Journal Advertising Interactive (on-line) Advertising & Web Sites Directories Direct Mail Brochures & Sales Literature Audio-Visual Presentation Tapes Giveaways Sponsorship or Event Marketing Exhibitions, Trade Shows, Conventions Publicity or Public Relations 56
  57. 57. Print Ad Evaluation Criteria Is the message clear at a glance? Is the benefit in the headline? Does the illustration support the headline? Does the first line of the copy support or explain the headline and illustration? Is the ad easy to read and follow? Is the product easily identified? Is the brand or sponsor clearly identified?57
  58. 58. Ad Campaign Considerations Campaigns make brands -- not single ads Be creative and develop creative themes  Avoid slavishly sticking to executional formulas Brand communications should sing like a choir  Multiple voices  Multiple notes Find fresh consumer insights & compelling brand truths Productively conduct ad research 58
  59. 59. IMC Case Study CMPB Success Factors Smart strategy  Relative deprivation Imaginative creative  Funny but relevant Clever hook  “Got milk?” slogan Timely secondary media  In store Right partners 59
  60. 60. Common Mistakes in Developing Advertising Failure to distinguish ad positioning (what you say) from ad creative (how you say it) Mistaken assumptions about consumer knowledge Improperly positioned Failure to break through the clutter Distracting, overpowering creative in ads 60
  61. 61. Common Mistakes in Developing Advertising (cont.) Under-branded ads Failure to use supporting media Changing campaigns too frequently Substituting ad frequency for ad quality 61
  62. 62. Audience Communication Option OverlapCommunication CommunicationOption A Option B ie nceAud Communication Option C Note: Circles represent the market segments reached by various communication options. 62 Shaded portions represent areas of overlap in communication options.
  63. 63. Evaluating IMC Programs Coverage - what proportion of the target audience is reached by each communication option employed, as well as how much overlap exists among options Cost - what is the per capita expense 63
  64. 64. Evaluating IMC Programs (cont.) Contribution - the collective effect on brand equity in terms of  enhancing depth & breadth of awareness  improving strength, favorability, & uniqueness of brand associations Commonality - the extent to which information conveyed by different communication options share meaning 64
  65. 65. Evaluating IMC Programs (cont.) Complementarity - the extent to which different associations and linkages are emphasized across communication options Versatility - the extent to which information contained in a communication option works with different types of consumers  Different communications history  Different market segments 65
  66. 66. “Keller Be’s” Be analytical: Use frameworks of consumer behavior and managerial decision-making to develop well- reasoned communication programs Be curious: Fully understand consumers by using all forms of research and always be thinking of how you can create added value for consumers Be single-minded: Focus message on well-defined target markets (less can be more) Be integrative: reinforce your message through consistency and cuing across all communications 66
  67. 67. “Keller Be’s” Be creative: State your message in a unique fashion; use alternative promotions and media to create favorable, strong, and unique brand associations Be observant: Monitor competition, customers, channel members, and employees through tracking studies Be realistic: Understand the complexities involved in marketing communications Be patient: Take a long-term view of communication effectiveness to build and manage brand equity 67