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THE NEW BRANDING IMPERATIVES
Kevin Lane Keller
Tuck School of Business
Dartmouth College
1
MSCOM Excellence-in-
communicat...
2
My Textbooks
3
My Experience
The New Branding Imperatives
  Fully and accurately factor the consumer
into the branding equation
  Go beyond product p...
Branding Imperative #1
  Fully and accurately factor the
consumer into the branding equation
  Recognize what consumers ...
6
Nike
  Brand Mission: To bring inspiration and innovation
to every athlete in the world
  If you have a body, you re a...
Interactive Communications
  Web site
  Ratings, reviews &
feedback
  Company-generated
  Consumer-generated
  E-mail...
Interactive Communications
  Establish an active public voice and
presence on the Web
  Allow consumers to engage at a d...
Branding Imperative #2
  Go beyond product performance
and rational benefits
  Craft well-designed products and
services...
10
Apple
  Sustained product innovation from inception
  Macintosh personal computers
  PowerBook laptops
  iPod porta...
Dimensions of Brand Feelings
Brand feelings can be divided into two broad categories:
 Experiential – immediate, short-li...
Branding Imperative #3
  Make the whole of the
marketing program greater
than the sum of the parts
  Develop fully integ...
13
Red Bull
  Employs a full set of brand elements
and marketing activities
  Creative brand name, logo, packaging and
s...
Red Bull
Activities,
Events &
Experiences
Modern Communication
Programs
  Traditional, mass media communications
  Greater control
  Online interactive communica...
Traditional,
mass media
communications	

Real world,
experiential
communications	

Online,
interactive
communications
FUTU...
Communication
Option A
(e.g., TV)
Communication Option C (e.g., Event)
Communication
Option B
(e.g., Internet)
Audience Co...
18
Evaluating IMC Programs
  Coverage
  Cost
  Contribution
  Commonality
  Complementarity
  Versatility
Branding Imperative #4
  Understand where you can take a
brand (and how)
  Design and implement a new product
developmen...
Selected Brand Extension
Research Findings
1. Successful brand extensions occur when the parent brand is seen as having
fa...
7. High quality brands stretch farther than average quality brands, although
both types of brands have boundaries.
8. A br...
BRAND EXTENDIBILITY SCORECARD
Allocate points according to how well the new product concept rates on the specific dimensio...
23
Brand Stretch Successes
  Some of the world s
strongest brands have
been stretched across
multiple categories
24
But … Don t Forget the
Spandex Rule
  Just because you
can … doesn t
mean you should!
  Scott Bedbury, formerly
VP-ad...
Branding Imperative #5
  Do the right thing with brands
  Embrace corporate social
responsibility
  Develop point-of-vi...
26
Benefits of Cause Marketing
  Improving social welfare ( win-win )
  Creating differentiated brand positions
  Elici...
Branding Imperative #6
  Take a big picture view of
branding effects and know
what is working (and why)
  Achieve greate...
28
Three Models to
Facilitate Brand Planning
  To help guide these efforts,
three models of increasing
scope can be used:...
Customer
Mindset
Marketing
Activity
Market
Performance
Shareholder
Value
Points of
Difference
Points of
Parity
A Comprehen...
Conclusions
  Brands will survive and can thrive the
more they provide the basic functions
of branding
  Reduce risk; se...
Conclusions
  Building a powerful 21st century brand
will involve
  Tackling old problems
  Addressing new challenges
...
32
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The New Branding Imperatives, Kevin Lane Keller, 2011

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The New Branding Imperatives, Kevin Lane Keller, 2011

  1. 1. THE NEW BRANDING IMPERATIVES Kevin Lane Keller Tuck School of Business Dartmouth College 1 MSCOM Excellence-in- communications Lecture BMW, Dielsdorf
  2. 2. 2 My Textbooks
  3. 3. 3 My Experience
  4. 4. The New Branding Imperatives   Fully and accurately factor the consumer into the branding equation   Go beyond product performance and rational benefits   Make the whole of the marketing program greater than the sum of the parts   Understand where you can take a brand (and how)   Do the right thing with brands   Take a big picture view of branding effects and know what is working (and why) 4
  5. 5. Branding Imperative #1   Fully and accurately factor the consumer into the branding equation   Recognize what consumers know and don t know about brands   Recognize what consumers want and don t want from brands   Recognize how consumers actually make decisions   Recognize consumer diversity 5
  6. 6. 6 Nike   Brand Mission: To bring inspiration and innovation to every athlete in the world   If you have a body, you re an athlete   Brand Values   Inspire   Innovate   Focus   Connect   Care   Brand Mantra   Authentic Athletic Performance
  7. 7. Interactive Communications   Web site   Ratings, reviews & feedback   Company-generated   Consumer-generated   E-mails & texts   Banner, rich media, etc. ads   Search advertising   Social media   Communities & Forums   Bloggers (Individuals & Networks)   Facebook   Twitter   YouTube 7
  8. 8. Interactive Communications   Establish an active public voice and presence on the Web   Allow consumers to engage at a deep & broad level   Complement and reinforce other communications   Ensure innovation & relevance   But remember … not everyone participates actively in social media   Only some of the consumers want to get involved with   Only some of the brands they use   Only some of the time. 8
  9. 9. Branding Imperative #2   Go beyond product performance and rational benefits   Craft well-designed products and services that are functionally and aesthetically appealing   How they work, look, feel, etc.   Provide reinforcing rational and emotional benefits 9
  10. 10. 10 Apple   Sustained product innovation from inception   Macintosh personal computers   PowerBook laptops   iPod portable music player   iTunes music download website   iPhone mobile phone & apps   iPad tablet computer   Strong brand promise   Performance & design   How a product works, looks, & feels   Personality & character   Think Different Feed- back Expan- sion
  11. 11. Dimensions of Brand Feelings Brand feelings can be divided into two broad categories:  Experiential – immediate, short-lived during purchase/consumption  Enduring – private, possibly part of day-to-day life Brands should have one, or ideally both, types of feelings Experiential Feelings • Warm • Fun • Exciting Increasing level of intensity Enduring Feelings • Sense of Security (Inner-directed) • Social Approval (Outer-directed) • Self-Respect (Actualization) Self-Respect Sense of Security Social Approval Inner-Directed Outer-Directed Higher level of values & needs
  12. 12. Branding Imperative #3   Make the whole of the marketing program greater than the sum of the parts   Develop fully integrated channel and communication strategies   Mix & match to optimally blend strengths & weaknesses 12
  13. 13. 13 Red Bull   Employs a full set of brand elements and marketing activities   Creative brand name, logo, packaging and slogan ( Red Bull Gives You Wings )   Strong on-premise and in-store marketing   A variety of direct-to-consumer communications   Traditional media advertising & sponsorship   Non-traditional events & promotions
  14. 14. Red Bull Activities, Events & Experiences
  15. 15. Modern Communication Programs   Traditional, mass media communications   Greater control   Online interactive communications   Greater relevance   Real world experiential communications   Greater engagement   Mobile interactive communications   Greater timeliness 15
  16. 16. Traditional, mass media communications Real world, experiential communications Online, interactive communications FUTURE MARKETING COMMUNICATION INTEGRATION Mobile, interactive communications
  17. 17. Communication Option A (e.g., TV) Communication Option C (e.g., Event) Communication Option B (e.g., Internet) Audience Communication Option Overlap Note: Circles represent the market segments reached by various communication options. Shaded portions represent areas of overlap in communication options.
  18. 18. 18 Evaluating IMC Programs   Coverage   Cost   Contribution   Commonality   Complementarity   Versatility
  19. 19. Branding Imperative #4   Understand where you can take a brand (and how)   Design and implement a new product development and brand architecture strategy   Understand brand potential   Introduce appropriate brand extensions   Brand extensions properly   Maximize long-term growth across customer segments and geographical markets 19 Nivea caring and gentle cuts across many categories
  20. 20. Selected Brand Extension Research Findings 1. Successful brand extensions occur when the parent brand is seen as having favorable associations and there is a perception of fit between the parent brand and the extension product. 2. There are many bases of fit: product-related attributes and benefits, as well as non-product-related attributes such as common usage situations or user types. 3. Fit may also be based on technical or manufacturing commonalties or more surface considerations such as necessary or situational complementarity. 4. Knowledgeable experts are more likely to use technical or manufacturing commonalities to judge fit; less knowledgeable novice consumers are more likely to use superficial considerations. 5. Consumers may transfer associations that are positive in the original product class but become negative in the extension context. 6. Consumers may infer negative associations about an extension, perhaps even based on other inferred positive associations.
  21. 21. 7. High quality brands stretch farther than average quality brands, although both types of brands have boundaries. 8. A brand that is a product category prototype or exemplar can be difficult to extend. 9. It can be difficult to extend into a product class that is seen as easy-to- make. 10. A successful extension can contribute to the parent brand image and enable a brand to be extended even farther. 11. An unsuccessful extension does not prevent a firm from backtracking and introducing a more similar extension. 12. An unsuccessful extension hurts the parent brand only when there is a strong basis of fit between the two. 13. The most effective advertising strategy for an extension is one which emphasizes information about the extension (rather than reminders about the parent brand). Selected Brand Extension Research Findings
  22. 22. BRAND EXTENDIBILITY SCORECARD Allocate points according to how well the new product concept rates on the specific dimensions in the following areas: Consumer Perspectives: Desirability 10 pts. _____ Product category appeal (size, growth potential) 10 pts. _____ Equity transfer (perceived brand fit) 5 pts. _____ Perceived consumer target fit Company Perspectives: Deliverability 10 pts. _____ Asset leverage (product technology, organizational skills, marketing effectiveness via channels & communications) 10 pts. _____ Profit potential 5 pts. _____ Launch feasibility Competitive Perspectives: Differentiability 10 pts. _____ Comparative appeal (many advantages; few disadvantages) 10 pts. _____ Competitive response (likelihood; immunity or invulnerability from) 5 pts. _____ Legal/regulatory/institutional barriers Brand Perspectives: Equity Feedback 10 pts. _____ Strengthens parent brand equity 10 pts. _____ Facilitates additional brand extension opportunities 5 pts. _____ Improves asset base TOTAL _____ pts
  23. 23. 23 Brand Stretch Successes   Some of the world s strongest brands have been stretched across multiple categories
  24. 24. 24 But … Don t Forget the Spandex Rule   Just because you can … doesn t mean you should!   Scott Bedbury, formerly VP-advertising Nike & VP-marketing Starbucks   Especially a worry with luxury brands   Defined in part by lifestyle
  25. 25. Branding Imperative #5   Do the right thing with brands   Embrace corporate social responsibility   Develop point-of-view on societal, environmental and community issues   Create win-win cause marketing programs and activities   Manage brands for the long-run   Avoid over-exposing, over-extending, over- modernizing, over-discounting   Avoid death by 1000 cuts 25
  26. 26. 26 Benefits of Cause Marketing   Improving social welfare ( win-win )   Creating differentiated brand positions   Eliciting emotional responses from consumers   Building strong bonds with consumers   Enhance company s public image   Create reservoir of goodwill   Boost employee morale   Drive sales
  27. 27. Branding Imperative #6   Take a big picture view of branding effects and know what is working (and why)   Achieve greater accountability for marketing investments in brands   Adopt comprehensive, cohesive, and actionable models to help develop ROI insights and interpretations 27
  28. 28. 28 Three Models to Facilitate Brand Planning   To help guide these efforts, three models of increasing scope can be used: 1) Brand Positioning Model   How to guide integrated marketing to maximize competitive advantages; 2) Brand Resonance Model   How to create intense, activity loyalty relationships with customers; and 3) Brand Value Chain Model   How to trace the value creation process to better understand the financial impact of marketing investments.
  29. 29. Customer Mindset Marketing Activity Market Performance Shareholder Value Points of Difference Points of Parity A Comprehensive Set of Branding Metrics 3) Brand Value Chain Model 2) Brand Resonance Model 1) Brand Positioning Model Resonance Judgments Feelings Performance Imagery Salience
  30. 30. Conclusions   Brands will survive and can thrive the more they provide the basic functions of branding   Reduce risk; set expectations; deliver on promises; create differentiation   Successful branding requires doing a variety of different things well in an increasingly challenging environment   Six new branding imperatives 30
  31. 31. Conclusions   Building a powerful 21st century brand will involve   Tackling old problems   Addressing new challenges   By being ...   Analytical & systematic   Creative & inspired 31
  32. 32. 32 Thanks!

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