What is Brand building? Involves all the activities that arenecessary to nurture a brand into a healthy cash flow stream for the company after launch
Advertising does a lot to help build brandsEvery ad contributes to make the brandwhat it is in the minds of the consumer –David OgilvyA company’s brand is the primary source ofits competitive advantage and is a veryvaluable strategic asset – David Aaker
Brand Equity• 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
Power Brands• 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
Personality• Emotional bond with the customer• Generates relationships measurably stronger than ordinary brands
Presence• Seem to be present everywhere, enforcing distinctiveness• National/international scale• 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
Positioning guards• 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• Product benefits• Product quality• Be easy to pronounce/remember/recognise• Be distinctive• Not have poor meanings in other countries or languages
Brand Associations• ‘owned’ word• Slogans• Colours• Symbols and logos
Brand Ambassadors• 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 Step up advertising Cash cow. Need to sustain brand building activitiesEsteem Product should be Troubled brand. phased out Product upgradation required Familiarity
Brand Vitality• Differentiation in consumer’s mind• Differentiation relevant to consumer’s need
Brand Pitfalls• Brand experience must match brand image• Calls for managing every brand contact