13. managing brands


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managing brands

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13. managing brands

  1. 1. Developing Marketing Strategy Managing Products & Brands
  2. 2. The Product and the Product Mix • Brand decisions – What is a brand? • Attributes • Benefits • Values • Culture • Personality • User
  3. 3. Meaning of a brand • Commonly used research approaches to determine brand meaning: – Word associations…what comes to your mind – Personifying the brand…. what do you identify the brand with – Laddering up the brand essence • Brand essence…deeper reason for buying • Laddering up…. building further on the reasons
  4. 4. Building Brand Identity – Brand bonding • Brands are not built by advertising but by the brand experience • Everyone in the company lives the brand • Three ways to carry on internal branding – Employees must – Understand – Desire, and – Deliver on the brand promise
  5. 5. Clarify the corporation’s basic values and build the corporate brand. – Use brand managers to carry out the tactical work. – Develop a more comprehensive brand-building plan. – Define the brand’s basic essence to be delivered wherever it is sold. – Use the brand-value proposition as the key driver of the company’s strategy, operations, services, and product development. – Measure their brand-building effectiveness, not by the old measures of awareness, recognition, and recall, but by a more comprehensive set of measures including customer-perceived value, customer satisfaction, customer share of wallet, customer retention, and customer advocacy. Building Brands in the new economy
  6. 6. Brand Equity • Brand Equity – Brand awareness – Brand acceptability – Brand preference • Aaker’s five levels of customer attitude: – The customer will change brands, especially for price reasons. No brand loyalty. – Customer is satisfied. No reason to change brands. – Customer is satisfied and would incur cost by changing brand. – Customer values the brand and sees it as a friend. – Customer is devoted to the brand.
  7. 7. Brand Equity – Value of Brand Equity • Brand valuation • Competitive advantages of high brand equity: – The company will have more leverage in bargaining with distributors and retailers because customers expect them to carry the brand. – The company can charge a higher price than its competitors because the brand has higher perceived quality. – The company can more easily launch extensions because the brand name carries high credibility. – The brand offers some defense against price competition.
  8. 8. • Branding Challenges – Branding Decision: To Brand or Not to Brand? An Overview of Branding Decisions The Product and the Product Mix
  9. 9. Why branding ???? – Branding gives the seller several advantages: • Brand name makes it easier for the seller to process orders and track down problems • Seller’s brand name and trademark provide legal protection of unique product features • Branding gives the seller the opportunity to attract a loyal and profitable set of customers. • Branding helps the seller segment markets. • Strong brands help build corporate image, making it easier to launch new brands and gain acceptance by distributors and consumers.
  10. 10. Brand Sponsors – Brand-Sponsor Decisions • Manufacturer brand • Distributor brand • Licensed brand name
  11. 11. What’s in a name? – Desirable qualities for a brand name • It should suggest something about the product’s benefits • It should suggest the product or service category • It should suggest concrete, “high imagery” qualities • It should be easy to spell, pronounce, recognize, and remember • It should be distinctive • It should not carry poor meanings in other countries and languages
  12. 12. A Brand Must be More Than a Name • A brand must trigger words or associations (features and benefits). • A brand should depict a process (McDonald’s, Amazon). • A great brand triggers emotions (Harley-Davidson). • A great brand represents a promise of value (Sony). • The ultimate brand builders are your employees and operations, i.e., your performance, not your marketing communications.
  13. 13. Brand-Name Decision • Four available strategies: – Individual names…Dove, LUX – Blanket family names….Amul – Separate family names for all products in a category…Maggi – Corporate name combined with individual product names…Cadbury’s
  14. 14. Tools for Building Brands • Advertising (e.g.,Absolut Vodka) • Sponsorships (e.g., Kodak and Olympics) • Clubs (e.g. Nestle’s Maggi Club) • Company visits (e.g., Cadbury’s) • Trade shows • Traveling exhibits • Worldwide web casts of presentations, roundtables, entertainment • Distribution outlets (e.g., Haagen-Dazs) • Public facilities • Social causes ( Tata Memorial Hospital) • High value for the money ( Ikea.) • User community building ( Harley-Davidson) • Founder’s personality ( Colonel Saunders- KFC) • Celebrity spokespersons
  15. 15. Branding Components • Name – Short, suggestive, memorable, unique, pronounceable • Slogan • Logo and typeface • Colors • Music (Jingles) • Theme lines (Pure for Sure!) • Stationery and business cards • Offices • Trucks • Dress code
  16. 16. There is No Such Thing as a Commodity: Differentiate by Segments • Mobil conducted a study of 2,000 gasoline buyers and identified five segments: – Road Warriors (always driving) – True Blues (brand or dealer loyal) – Generation F3 (liked convenience store aspect) – Homebodies (fills up at nearest station) – Price Shoppers (20% of all the buyers) • Mobil rolled out Friendly Serve: cleaner property, bathrooms, better lighting, well-stocked stores, and friendlier personnel. • Mobil charged $.02 more and sales increased by 20- 25 percent.
  17. 17. Branding Strategy – Brand Strategy Decision – Functional brand...to satisfy a functional need – Image brand…to convey an image “Cross Pens” – Experiential brands…need to experience it “Barista” • Line Extensions – Introducing additional items in the same product category…Clinic, Clinic Plus • Brand extensions – Using existing brand to enter newer categories e.g Dettol soap, Dettol antiseptic lotion – Wills cigarettes & Wills lifestyle apparels
  18. 18. Don’t Overuse Advertising to Build a Brand • People don’t pay that much attention to ads anymore. • Some exceptional TV ads grab attention but do not provide motivation. e.g Ericsson ad • Advertising doesn’t have much credibility or believability. • The existence of so much advertising makes advertising less effective. Yet the cost of advertising keeps rising.
  19. 19. Multi-Branding • Multibranding--- New Brands, and Co-Brands – Multi-branding » Flanker Brands – Co-branding (Dual branding) » Ingredient co-branding » Same-company co-branding » Joint venture co-branding
  20. 20. Packaging & Labeling • Packaging and Labeling – Packaging – Package • Primary Package • Secondary Package • Shipping Package – Factors which have contributed to the growing use of packaging as a marketing tool • Self-Service • Consumer affluence • Company and brand image • Innovation opportunity
  21. 21. Packaging & Labeling – Labeling • Functions – Identification – Grading – Description • Consumerists have lobbied for: – Open dating – Unit pricing – Contents labeling
  22. 22. What Are the Most Frequent Causes of Brand Failure? • Failure to live up to the brand promise. • Failure to adequately support the brand. • Failure to adequately control the brand. • Failure to properly balance consistency and change with the brand. • Failure to do brand equity measurement and management.