Introduction to strategic brand management


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Introduction to Strategic Brand Management
Developed for Sri Lanka Institute of Marketing - Diploma In Brand Management as course material

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Introduction to strategic brand management

  1. 1. Introduction to Strategic Brand Management Leroy J. Ebert DipM MCIM, Chartered Marketer, MSLIM Manager Marketing and Business Development – Logiwiz Ltd. Developed as course material for the SLIM Diploma in Brand Management
  2. 2. • Firms are realizing that one of their most valuable assets are the brand names associated with their products • In the present context all of us are always running short of time • Brands help us to simplify decision making, reduce risk and facilitate decision making • This chapter will help you get a deeper understanding of how to achieve those branding goals • To explore the important issues in planning, implementing, and evaluating brand strategies • To provide appropriate concepts, theories, models and other tools to make better branding decisions Preview
  3. 3. • Branding has been around for centuries as a mean to distinguish the goods of one producer from another • The word BRAND is derived from the Old Norse word brandr, which means “To Burn” • AMA definition – a brand, is a “name, term, sign, symbol, or design or a combination of them, intended to identify the goods and services of one seller of group of sellers and to differentiate them from those of competitors” • Practicing managers refer to the brand as something that has actually created a certain amount of awareness, reputation, prominence and so on in the market place • The key to creating a brand as per the AMA is to be able to choose a name, logo, symbol, package design, or other characteristic. These components are known as Brand Elements. Will see more in chapter 4 What is a BRAND?
  4. 4. • A product is anything we can offer to a market for attention, acquisition, use, or consumption that might satisfy a need or want • Thus a product may be a physical good, service, retail outlet, a person, an organization, or an idea • Lets discuss role of brands in these context in chapter 15 Brand versus Products
  5. 5. 5 Levels of a Product Potential product level Augmented product level Expected product level Generic product level Core benefit level Brand versus Product
  6. 6. • A Brand is therefore more than a product, because it can have dimensions that differentiate it in some way from another products designed to satisfy the same need. These differences may be rational and tangible related to the product performance of the brand or more symbolic, emotional and intangible. • Some brands create competitive advantage with product performance i.e. Gillette due to their focus on innovation and continuous investments in R&D • Other brands create competitive advantage through non product related means i.e. Coke, by understanding the consumer motivations and desires and creating relevant and appealing images surrounding their products • Brands especially the strong ones carry a number of different types of associations, and marketers must account for all of them in making marketing decisions • The marketers behind some brands have learnt this the hard way Brand versus Product
  7. 7. • Coca-Cola rebranding • Coca-Cola Super Bowl Advertisement • Feedback Coca-Cola Super Bowl Brand versus Product
  8. 8. Consumer Manufacturer Identification of source of product Means of identifying to simplify handling or tracing Assignment of responsibility to product maker Means of legally protecting unique features Risk reducer Signal of quality level to satisfied customers Search cost reducer Means of endowing products with unique associations Promise, bond, or pact with maker of the product Source of competitive advantage Symbolic device Source of financial returns Signal of quality Why Do Brands Matter
  9. 9. • Functional Risks – The product does not perform up to expectation • Physical Risks – The product poses a threat to the physical well being or health of the user or others • Financial Risks- The product is not worth the price paid • Social Risks – The product results in embarrassment from others • Time Risk – The failure of the product results in an opportunity cost of finding another satisfactory product Brand as a Risk reducer
  10. 10. • Savvy Customers – customers are becoming more experienced and demanding, Consulting firm Brand Keys conducted a survey and found out that consumers expectations of what they want from brands are on avg 13% higher than what they think brands will deliver to them and the gap is growing • Understanding market leadership – brands are more likely to loose market leadership over time, brands must become “trustmarks” and eventually “Lovemarks” Branding Challenges and Opportunities
  11. 11. • Brand Proliferation – marketers have the option of launching new brands and products especially in terms of line and brand extensions • Media Fragmentation – increase in media options and the emergence of interactive and non traditional media, promotion and other communication alternatives. Marketers are compelled to move away from TV due to cost, clutter, fragmentation and new technology, % of budgets allocated has increased significantly for new media in comparison to that of TV Branding Challenges and Opportunities
  12. 12. • Increased Competition – has resulted in so many financial incentives and discounts in the market place to remain competitive. On demand side the consumption for many products and services has flattened and hit maturity stage or even decline stage of the product life cycle. In order to grow marketers have to eat into the competitors market share. Competition has also increased due to the following reasons • • • • Globalization Low priced competitors (i.e. Kingsoft vs Microsoft office) Brand extensions Deregulation Branding Challenges and Opportunities
  13. 13. • Increased Costs – in addition to competition the cost of introducing new products or supporting existing products have increased significantly making it significantly difficult to match the level of investment and support that brands were able to receive in previous years. • Greater Accountability – Marketers are increasing been held responsible for the marketing decisions and investment they make. Increasingly companies want marketers to take decisions that generate short term profits with long term consequences. Due to this job turnover has become increasingly high and they do not anticipate to be in the present position for too long. One study found that the average tenure of a CMO is only 23 months. Branding Challenges and Opportunities
  14. 14. • Brand Equity refers to the value of the brand • It consists of the marketing effects uniquely attributable to a brand. That is, brand equity explains why different outcomes result from the marketing of a branded product or service that if it were not branded. The Brand Equity Concept
  15. 15. • SBM involves the design and implementation of marketing programs and activities to build, measure and manage brand equity • • • • Identifying and establishing brand positioning Planning and implementing brand marketing programs Measuring and interpreting brand performance Growing and sustaining brand equity • Brand positioning can be defined as the “act of designing the company's offer and image so that it occupies a distinct and valued place in the target customers mind” • Positioning convinces the consumers of the advantages or POD’s a brand has over competitors while at the same time alleviating concerns about any possible disadvantages (establishing points of parity) Strategic Brand Management Process
  16. 16. Strategic Brand Management Process
  17. 17. Content Extracted from “Strategic Brand Management” 3rd Edition Authors: Kevin Lane Keller M.G. Parameswaran Issac Jacob Presentation developed from SLIM Diploma In Brand Management Students Presentation developed by Leroy J. Ebert (27th Feb 2014)