™

B®ANDING
session 6
summary
Article ‘Philip Morris’
1. Can you tell me what the article is about?
2. What is the main research question of the article...
the book

ISBN: 978-90-430-1729-9
course outline
Week

Subject

Chapter Keller

1

Introduction in branding: brand management and
global course overview, Br...
Do you recognize it?
Do you know it?
Do you think it’s cool?
Do you like it?
Do you think it’s better?
Do you buy it?
Do y...
1.
2.
3.
4.
5.
6.
7.

Do you recognize it?: Brand awareness
Do you know it?: Brand knowledge
Do you think it’s cool?: Bran...
Why are brands important?
For consumers

For manufacturers

• Identification of source of
product
• Assignment of responsi...
A change of thoughts
How to companies approach their customers
• Production orientated: mass production, customers have no...
Marketing instruments
-

Product
Price
Place
Promotion
(People)

Marketing mix
Product
1.
2.
3.
4.
5.
6.
7.

Quality (materials, etc.)
Design (size, colour etc.)
Packaging (protection, storage, etc.)
B...
what is a brand?
definition (1)
“…a brand is a name, term,
symbol, or design, or a
combination of them, intended
to identify goods and serv...
definition (2)
“…a brand is a intangible but
critical component of what an
organization stands for…”
source: Brand Asset M...
the evolution of branding
1850 … Identification branding:

Products/services/quality

1950 … Benefit branding:

Product be...
“…branding is the blend of art and
science that manages associations
between a brand and memories in
the mind of the audie...
what can become a brand?
•
•
•
•
•
•
•
•

Goods (b-to-c / b-to-b)
Services
Retailers
Online products & services
People & o...
strategic brand
management process
1. Identifying and establishing brand positioning
2. Planning and implementing brand ma...
Brand equity
No brand

vs.

Brand X

Brand equity
‘…brand equity is built up from positive effects of
marketing that can o...
customer-based brand equity
(CBBE) Brand equity seen from the
consumer perspective
The power of a brand is a result of:
Wh...
brand knowledge
• Consists of:
– 1) brand awareness
– 2) brand image

• Knowledge about a brand:
The associative network m...
1. brand awareness
• Consists of:
– 1) brand recognition
– I’ve seen this before…

– 2) brand recollection
– I think you a...
2. brand image
• Building a good brand image: creating strong,
positive and unique brand associations
• Important:
– Perso...
Summary
building a strong brand
4. Brand relationships: What about us?
3. Brand responses: What I think of you?
2. Brand meaning: ...
building a strong brand

Brand resonance pyramid (Keller)
Brand designing vs. Brand building

Product

Core

Brand

Brand

Brand

Brand

Identity

Designing

Building

Relations

T...
“…brand design is the
creation (!) and
the visualization (!)
of brands..”
source: Brand design,
Ruud Boer
Functions of brand design
1.
2.
3.
4.
5.
6.
7.

Creating extra value
Creating difference
Communicating promises
Creating a...
Brand desigining:
the inner side:
A. creation of brands
(vormen van merken)
the outer side:
B. visualisation of brands
(vo...
‘Het merk-wijzer model’

Source: Brand design, Ruud Boer
brand positioning &
brand elements
brand positioning
“…finding the right location in
the mind of the consumer..”
brand positioning
What you need for brand positioning:
1. Overview of the target group
2. Overview of the most important
c...
Laddering
Attributes (product features)
Benefits (personal values and
advantages connected to
product features)
Values (pe...
“…brand laddering
involves progression from
attributes to benefits to
more abstract values.
Laddering involves
repeatedly ...
for instance
Attributes: nicotine
Benefits: relaxation, social
smoking, belonging to a group
Values: tough, relaxed,
masculin
Brand psychology
mental brand response (1)
association ownership
a brand ‘owns’ an association, if the
brand comes immediately to the mind
...
brand psychology
brand psychology
scientifically studies human
behavior related to brands in a
particular surrounding or
a...
neuromarketing
measuring brain response
to marketing ads and brands
by additional use of biometrics
including heart rate, ...
some neuromarketing tools
eye tracking:
measures where a subject is looking
EEG (Electroencephaolgraph):
measures brain wa...
1. The cocktailparty-effect: unconsciously a
human scans the surroundings, althought
you’re not aware of it
2. The mere ex...
brand strategy
brand
architecture
1. BRAND-PRODUCTMATRIX

This matrix gives an overview of all
the brands and products of the
organization.
In order to get ...
Products

1
Brands

2

3

N

1

Becel
bread

Becel
liquid

Becel
on bread

Etc.

2

Zwitsal
shampoo

Zwitsal
Baby tissues
...
BRAND PORTFOLIO:
the collection of all brands an
organization offers within a
specific product category
PERFECT
BRAND PORTFOLIO:
maximizing the market reach
with the number of different
brands without brand
cannibalization
Brand hierarchy
1.

Corporate / company (Unilever)

2.

Family (Unox)

3.

Individual (Cup-a-Soup)

4.

Modifier (differen...
What if a new product is
invented?
1. A new brand, especially for the new
product
2. Using an already existing brand
3. A ...
brand extentions
• line extensions:
The family brand (umbrella) is used on a new related
product group
• category extensio...
brand activation
Changing consumer
Consumers….
… have more power…
…can buy more products…
…can get a lof information… (!!!)
…can easily con...
To personalize marketing
Experience marketing
One to one marketing
Permission marketing
experience economy:
brand activation
“... when a consumer buys an
experience, he pays to spend time
enjoying series of memorable
events that a company stages –...
brand activation

1. Traditional media

2. New media
Or?

brand activation

1. (Brand)
paid media

2. (Brand)
owned media

3. (Brand)
earned Media
brand earned media??
Media
type

Definition

Examples

The role

Benefits

Challenges

(Brand)
paid
media

Brand pays to
use channels

•Display...
...a focus on quality of
communication, not on
quantity or reach
more focus on impact...
“...a brand is a perfect
tool for transferring
information, meanings and
feelings through media...”
community

brand

values
brand X

target group

band X

sub-target group
• young
• creative
• urban

community

tokio
hotel

• metro-sexual

values
a band gives input to
the meaning and value
of the brand:
“…if the band srews up,
so does the brand…”
Session 5
measuring brand value
& international branding
strategic brand management
process
1. identify and establish brand
positioning and values
2. plan and implement brand
mark...
brand measurement
“ I’m putting all this effort
into my brand, working on the image,
giving it the right colors, the right...
Why measure brands?
• to measure how strong the brand is in
comparison to competitors
• to review marketing campaigns (ret...
brand equity
measurement system
“...a set of research procedures
designed to provide timely, accurate and
actionable infor...
different ways to measure
1. Brand value chain
2. Brand following
3. Brand asset valuator (BAV)
international branding
Regions (local) vs.
The world (global)
• Increasing amount of niche markets
• Increasing amount of consumer data
• Increas...
Why brands go abroad?
•
•
•
•
•

Home market is saturated
Heavy competition on the home market
Extra growth possible abroa...
Hofstede’s 5 dimensions
•
•
•
•
•
•

Power distance and acceptance
Individualism
Uncertainty avoidance
Masculinity (emotio...
Differences between
countries & cultures:
•
•
•
•
•
•

Consumer needs / usage
Reactions on marketing mix elements
Competit...
good luck!!
Session 6, summary 2013 2014 -2
Session 6, summary 2013 2014 -2
Session 6, summary 2013 2014 -2
Session 6, summary 2013 2014 -2
Session 6, summary 2013 2014 -2
Session 6, summary 2013 2014 -2
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Session 6, summary 2013 2014 -2

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Session 6, summary 2013 2014 -2

  1. 1. ™ B®ANDING
  2. 2. session 6 summary
  3. 3. Article ‘Philip Morris’ 1. Can you tell me what the article is about? 2. What is the main research question of the article? 3. What methodology did the authors use? 4. Did Philip Morris use a global or local marketing strategy for Marlboro? 5. Are the authors pro / anti smoking?
  4. 4. the book ISBN: 978-90-430-1729-9
  5. 5. course outline Week Subject Chapter Keller 1 Introduction in branding: brand management and global course overview, Branding music, events and entertainment 1 2 Creating brand value, Brand positioning 2&3 3 Building brand equity, Brand associations 4&5 4 Future branding: brand activation 6&7 5 Brand research, Brand psychology, Neuromarketing, Measuring brand value 8, 9 & 10 6 Brand strategy, Brand extensions, International branding, Summary 11, 12, 13 & 14
  6. 6. Do you recognize it? Do you know it? Do you think it’s cool? Do you like it? Do you think it’s better? Do you buy it? Do you recommend it?
  7. 7. 1. 2. 3. 4. 5. 6. 7. Do you recognize it?: Brand awareness Do you know it?: Brand knowledge Do you think it’s cool?: Brand image Do you like it?: Brand attitude / brand value Do you think it’s better?: Brand preference Do you buy it?: Brand loyalty Do you recommend it?: Brand fan
  8. 8. Why are brands important? For consumers For manufacturers • Identification of source of product • Assignment of responsibility to product maker • Risk reducer • Search cost reducer • Promise, bond or pact with maker of product • Symbolic device • Signal of quality • Means of identification to simplify handling or tracing • Means of legally protecting unique features • Signal of quality level to satisfied customers • Means of endowing products with unique associations • Source of competitive advantage • Source of financial return
  9. 9. A change of thoughts How to companies approach their customers • Production orientated: mass production, customers have no choice, selling more by efficient production • Product orientation: selling more because the quality of products is better • Sales orientation: selling more because of a lot of communication and promotion • Marketing orientation: selling more by listening to the needs of customers and to adjust products to those needs • Societal marketing orientation: selling more by listening to the needs of customers and to adjust products to those needs, also these companies pay attention to the effects of their actions to our planet
  10. 10. Marketing instruments - Product Price Place Promotion (People) Marketing mix
  11. 11. Product 1. 2. 3. 4. 5. 6. 7. Quality (materials, etc.) Design (size, colour etc.) Packaging (protection, storage, etc.) Brand (logo, recognition, etc.) Accessories Assortment (width, depth, etc.) Service (installation, guarantees, instructions, etc.)
  12. 12. what is a brand?
  13. 13. definition (1) “…a brand is a name, term, symbol, or design, or a combination of them, intended to identify goods and services of one seller or group of sellers and to differentiate them from those of competition…” source: American Marketing Association
  14. 14. definition (2) “…a brand is a intangible but critical component of what an organization stands for…” source: Brand Asset Management, Scott M. Davis
  15. 15. the evolution of branding 1850 … Identification branding: Products/services/quality 1950 … Benefit branding: Product benefits/ What’s in it for me? 1970 … Symbolic branding: Personality/user image/ lifestyle 1990 … Experience branding: Consumer experience/ all senses 1995 … Societal branding: Ethics/contribution to society 2000 … Total branding: Integrated system of physical, psychological and social components of an ideology
  16. 16. “…branding is the blend of art and science that manages associations between a brand and memories in the mind of the audience. It involves focusing resources on selected tangible and intangible attributes to differentiate the brand in an attractive, meaningful and compelling way for the targeted audience. …” source: Brandchannel.com
  17. 17. what can become a brand? • • • • • • • • Goods (b-to-c / b-to-b) Services Retailers Online products & services People & organisations Sports & arts Regions (city marketing) Entertainment
  18. 18. strategic brand management process 1. Identifying and establishing brand positioning 2. Planning and implementing brand marketing campaigns 3. Measuring and interpreting brand performance 4. Growing and sustaining brand equity
  19. 19. Brand equity No brand vs. Brand X Brand equity ‘…brand equity is built up from positive effects of marketing that can only be directed to the brand…’
  20. 20. customer-based brand equity (CBBE) Brand equity seen from the consumer perspective The power of a brand is a result of: What has the consumer: learned about the brand felt when using the brand seen in combination with the brand heard about the brand
  21. 21. brand knowledge • Consists of: – 1) brand awareness – 2) brand image • Knowledge about a brand: The associative network memory model (the brain is a network of associations, links and nodes, more about this in session 3 and 5)
  22. 22. 1. brand awareness • Consists of: – 1) brand recognition – I’ve seen this before… – 2) brand recollection – I think you are referring to... • Advantages: – Influences the amount, speed and strength of associations to be made – Better chance to be part of the evoked set – Better chance to become the chosen brand
  23. 23. 2. brand image • Building a good brand image: creating strong, positive and unique brand associations • Important: – Personal relevance – Uniqueness – Consistency – Credibility
  24. 24. Summary
  25. 25. building a strong brand 4. Brand relationships: What about us? 3. Brand responses: What I think of you? 2. Brand meaning: What are you? 1. Brand identity: Who are you?
  26. 26. building a strong brand Brand resonance pyramid (Keller)
  27. 27. Brand designing vs. Brand building Product Core Brand Brand Brand Brand Identity Designing Building Relations Target Creation Building Result
  28. 28. “…brand design is the creation (!) and the visualization (!) of brands..” source: Brand design, Ruud Boer
  29. 29. Functions of brand design 1. 2. 3. 4. 5. 6. 7. Creating extra value Creating difference Communicating promises Creating awareness Creating recognition Communicating basic information Fulfilling other functions • For example ‘Living the brand’
  30. 30. Brand desigining: the inner side: A. creation of brands (vormen van merken) the outer side: B. visualisation of brands (vormgeven van merken)
  31. 31. ‘Het merk-wijzer model’ Source: Brand design, Ruud Boer
  32. 32. brand positioning & brand elements
  33. 33. brand positioning “…finding the right location in the mind of the consumer..”
  34. 34. brand positioning What you need for brand positioning: 1. Overview of the target group 2. Overview of the most important competitors 3. A) Points of parity regarding competition B) Points of difference regarding competition
  35. 35. Laddering Attributes (product features) Benefits (personal values and advantages connected to product features) Values (personal goals)
  36. 36. “…brand laddering involves progression from attributes to benefits to more abstract values. Laddering involves repeatedly asking what the implication of an attribute or benefit is for the customer…"
  37. 37. for instance
  38. 38. Attributes: nicotine Benefits: relaxation, social smoking, belonging to a group Values: tough, relaxed, masculin
  39. 39. Brand psychology
  40. 40. mental brand response (1) association ownership a brand ‘owns’ an association, if the brand comes immediately to the mind when the association is given as a cue when the brand itself is given as a cue, this association is among the first which are activated
  41. 41. brand psychology brand psychology scientifically studies human behavior related to brands in a particular surrounding or a particular context
  42. 42. neuromarketing measuring brain response to marketing ads and brands by additional use of biometrics including heart rate, breathing rate, eye and skin response
  43. 43. some neuromarketing tools eye tracking: measures where a subject is looking EEG (Electroencephaolgraph): measures brain waves to determine what parts of the brain are activated FMRI (Functional Magnetic Resonance Imaging): measures brain activity in real time. Much more expensive than EEG, but gives more accurate pictures of the brain
  44. 44. 1. The cocktailparty-effect: unconsciously a human scans the surroundings, althought you’re not aware of it 2. The mere exposure-effect: the more often someone is in contact with a negative stimulus the more positive it will be judged 3. The negativity-effect: negative and threatening stimuli will always be noticed quicker 4. Conditioning: when a neutral stimulus is connected to a positive or negative stimulus, the neutral stimulus also becomes positive or negative
  45. 45. brand strategy
  46. 46. brand architecture
  47. 47. 1. BRAND-PRODUCTMATRIX This matrix gives an overview of all the brands and products of the organization. In order to get more insight into the product and brand strategy of the organization
  48. 48. Products 1 Brands 2 3 N 1 Becel bread Becel liquid Becel on bread Etc. 2 Zwitsal shampoo Zwitsal Baby tissues Zwitsal Sun cream Etc. 3 Glorix bleach Glorix Cleaning tissues Glorix Toilet cleaner Etc. N Etc. Etc. Etc.
  49. 49. BRAND PORTFOLIO: the collection of all brands an organization offers within a specific product category
  50. 50. PERFECT BRAND PORTFOLIO: maximizing the market reach with the number of different brands without brand cannibalization
  51. 51. Brand hierarchy 1. Corporate / company (Unilever) 2. Family (Unox) 3. Individual (Cup-a-Soup) 4. Modifier (different flavours)
  52. 52. What if a new product is invented? 1. A new brand, especially for the new product 2. Using an already existing brand 3. A combination of both
  53. 53. brand extentions • line extensions: The family brand (umbrella) is used on a new related product group • category extensions: The family brand is used for a totally new product category
  54. 54. brand activation
  55. 55. Changing consumer Consumers…. … have more power… …can buy more products… …can get a lof information… (!!!) …can easily contact organizations… …can get in contact with other consumers very easily… (!!!)
  56. 56. To personalize marketing Experience marketing One to one marketing Permission marketing
  57. 57. experience economy: brand activation
  58. 58. “... when a consumer buys an experience, he pays to spend time enjoying series of memorable events that a company stages – as a theatrical play – to engage him in a personal way...” The Experience Economy (Pine & Gilmore, 1999)
  59. 59. brand activation 1. Traditional media 2. New media
  60. 60. Or? brand activation 1. (Brand) paid media 2. (Brand) owned media 3. (Brand) earned Media
  61. 61. brand earned media??
  62. 62. Media type Definition Examples The role Benefits Challenges (Brand) paid media Brand pays to use channels •Display ads •Paid search •Sponsorships Active role in enlarging brand knowledge •In demand •Immediacy •Control •Overload •Declining response rates •Poor credibility (Brand) owned media Channels a brand controls •Website •Mobile site •Blog •Twitter Build for longerterm relationship with existing potential customers •Control •Cost efficiency •Versatility •Niche audiences •Long term •No guarantees •Not trusted •Takes time to find segments (Brand) earned media When customers become the channel •Buzz •Viral •Experience Listen and respond. Interact. Create. Come alive •Most credible •Transparent and lives on •Strong ties with customer •Less control •Can be negative •Hard to measure
  63. 63. ...a focus on quality of communication, not on quantity or reach more focus on impact...
  64. 64. “...a brand is a perfect tool for transferring information, meanings and feelings through media...”
  65. 65. community brand values
  66. 66. brand X target group band X sub-target group
  67. 67. • young • creative • urban community tokio hotel • metro-sexual values
  68. 68. a band gives input to the meaning and value of the brand: “…if the band srews up, so does the brand…”
  69. 69. Session 5 measuring brand value & international branding
  70. 70. strategic brand management process 1. identify and establish brand positioning and values 2. plan and implement brand marketing programs 3. measure and interpret brand performance 4. grow and sustain brand equity
  71. 71. brand measurement “ I’m putting all this effort into my brand, working on the image, giving it the right colors, the right look, the right communication-tools. But is it working? Does this ‘brand building’thing have any result at all?”
  72. 72. Why measure brands? • to measure how strong the brand is in comparison to competitors • to review marketing campaigns (return on marketing investment) • to value brands in order to put it in the annual financial overview
  73. 73. brand equity measurement system “...a set of research procedures designed to provide timely, accurate and actionable information for marketeers so that they can make the best possible tactical decisions in the short run and the best strategic decisions in the long run...” source: Kevin L. Keller Building, measuring and managing brand equity
  74. 74. different ways to measure 1. Brand value chain 2. Brand following 3. Brand asset valuator (BAV)
  75. 75. international branding
  76. 76. Regions (local) vs. The world (global) • Increasing amount of niche markets • Increasing amount of consumer data • Increasing amount of 1-to-1 marketing
  77. 77. Why brands go abroad? • • • • • Home market is saturated Heavy competition on the home market Extra growth possible abroad Overcapacity Spreading risk
  78. 78. Hofstede’s 5 dimensions • • • • • • Power distance and acceptance Individualism Uncertainty avoidance Masculinity (emotional roleplaying) Long term orientation Indulgence vs. restraint (to control desires)
  79. 79. Differences between countries & cultures: • • • • • • Consumer needs / usage Reactions on marketing mix elements Competitive environment Legal environment Marketing infrastructure Bureaucratic procedures
  80. 80. good luck!!

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