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Bmpspp1 1222230432698761-9


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Bmpspp1 1222230432698761-9

  1. 1. BRANDING ANDMARKETING PROMOTION STRATEGIES (Part I) Core Text: “Strategic Brand Management” by Kevin Lane Keller (2nd Edition) Presented by: PROF. HIMMAT ADISARE
  2. 2. BRANDS AND BRAND MANAGEMENT Ref: Chapter 1 of Core Text
  3. 3. What is a Brand?Definition: “A brand is a product thatadds other dimensions that differentiatesit in some way from other productsdesigned to satisfy the same need.”Ref: Chapter 1 of Core Text
  4. 4. Why Do Brands Matter? CONSUMERS:  Search cost Reducer Identification of Source of Product  Promise, Bond, or Pact with Maker of Assignment of Product Responsibility to Product Maker  Symbolic Device Risk Reducer  Signal of QualityRef: Chapter 1 of Core Text
  5. 5. Why Do Brands Matter? (2) MANUFACTURERS: Means of Identification to Simplify Handling or  Means of Endowing Tracing Products with Unique Means of Legally Associations Protecting Unique  Source of Competitive Features Advantage Signal of Quality Level  Source of Financial to Satisfied Customers ReturnsRef: Chapter 1 of Core Text
  6. 6. Can Anything Be Branded? Physical Goods  People and Services Organizations Retailers  Sports, Art and and Distributors Entertainment Online Products  Geographic and Services Locations  Ideas and CausesRef: Chapter 1 of Core Text
  7. 7. Branding Challenges And Opportunities Savvy Customers Brand Proliferation Media Fragmentation Increased Competition Increased Costs Greater AccountabilityRef: Chapter 1 of Core Text
  8. 8. The Brand Equity Concept Basic Principles of Branding and Brand Equity: Differences in outcomes arise from the “added value” endowed to a product as a result of past marketing activity for the brand. This value for a brand can be created in many different ways. Brand equity provides a common denominator for interpreting marketing strategies and assessing the value of a brand. There are many different ways in which the value of a brand can be manifested or exploited to benefit the firm.Ref: Chapter 1 of Core Text
  9. 9. Strategic Brand Management Process Identifyingand Establishing Brand Positioning and Values Planning and Implementing Brand Marketing Programs Measuring and Interpreting Brand Performance Growing and Sustaining Brand EquityRef: Chapter 1 of Core Text
  10. 10. CHAPTER 2CUSTOMER-BASED BRAND EQUITYRef: Chapter 2 of Core Text
  11. 11. Sources Of Brand Equity Brand Awareness  Brand Image Consequences of  Strength of Brand Brand Awareness Associations  Learning advantages  Favorability of  Consideration Brand Associations advantages  Uniqueness of Brand  Choice Advantages Associations Establishing Brand AwarenessRef: Chapter 2 of Core Text
  12. 12. Building A Strong Brand The Four Steps of Brand Building: 1. Identity (Who are you?) 2. Meaning (What are you?) 3. Response (What about you?) 4. Relationship (What about you & me?)Ref: Chapter 2 of Core Text
  13. 13. Customer-based Brand Equity Pyramid Relationship Resonance Response Judgments Feelings Meaning Performance Imagery Identity SalienceRef: Chapter 2 of Core Text
  14. 14. Customer-based Brand Equity Pyramid (2) Brand Salience: This  Brand Judgments: The relates to aspects of customers’ personal awareness of the brand opinions and evaluations Brand Performance: with regard to the brand This relates to ways in  Brand Feelings: The which product/ service customers’ emotional meets customers’ needs responses and reactions Brand Imagery: It’s how with respect to the brand customers visualize a  Brand Resonance: The brand abstractly, with ultimate relationship & no relevance to what the level of identification brand actually does that the customer has with the brandRef: Chapter 2 of Core Text
  15. 15. CHAPTER 3BRAND POSITIONING AND VALUESRef: Chapter 3 of Core Text
  16. 16. Identifying and Establishing Brand Positioning Basic Concepts Target Market Nature of Competition Points of Parity and Points of DifferenceRef: Chapter 3 of Core Text
  17. 17. Identifying and Establishing Brand Positioning (2) Basic Concepts: According to the CBBE model, it is necessary to decide:- 1. Who the target consumer is 2. Who the main competitors are 3. How the brand is similar to these competitors, and 4. How the brand is different from these competitors Ref: Chapter 3 of Core Text
  18. 18. Identifying and Establishing Brand Positioning (3)  Target Market:  Segmentation Bases: a) Behavioral b) Demographic c) Psychographic d) Geographic  Segmentation Criteria: a) Identifiability b) Size c) Accessibility d) ResponsivenessRef: Chapter 3 of Core Text
  19. 19. Identifying and Establishing Brand Positioning (4)  Nature of Competition:  Channels of Distribution  Competitors’ Resources  Competitors’ Capabilities  Competitors’ Likely Intentions  Other Competitive Factors (Porter’s 5- Force Model refers) Ref to Chapter 3 of Core Text
  20. 20. Identifying and Establishing Brand Positioning Points of Parity and Points of Difference: 1. Points of Difference Associations 2. Points of Parity Associations 3. Points of Parity versus Points of DifferenceRef: Chapter 3 of Core Text
  21. 21. Positioning Guidelines 1. Defining and Communicating the Competitive Frame of Reference 2. Choosing Points of Parity and Points of Difference 3. Establishing Points of Parity and Points of Difference 4. Updating Positioning Over Time Ref: Chapter 3 of Core Text
  22. 22. Positioning Guidelines (1) Defining and Communicating the Competitive Frame of Reference: A starting point in defining a competitive frame of reference for brand positioning is to determine Category Membership. Membership indicates the products or set of products with which a brand competes. Communicating category membership informs the consumer about the goals that they might achieve by using a product or service. Ref: Chapter 3 of Core Text
  23. 23. Positioning Guidelines (2) Choosing Points of Parity and Points of Difference: Points of Parity: These are driven by the needs of category membership and the necessity of negating competitors’ PODs. Points of Difference: These are based on the following criteria: 1. Desirability: In terms of a) Relevance b) Distinctiveness, and c) Believablity 2. Deliverability: In terms of a) Feasibility b) Communicability, and c) SustainabilityRef: Chapter 3 of Core Text
  24. 24. Positioning Guidelines (3) Establishing Points of Parity and Points of Difference: 1. Separate the attributes: Launch two marketing campaigns, each one devoted to a different brand attribute or benefit. 2. Leverage Equity of another Entity: Link the brand with a well-liked celebrity, cause or event. 3. Redefine the Relationship: Use attitude change strategies to convert negative perspectives about the brand to positive ones.Ref: Chapter 3 of Core Text
  25. 25. Positioning Guidelines (4) Updating Positioning Over Time: 1. Laddering: This strategy is to deepen the meaning of the brand to tap into core brand values or other more abstract considerations. 2. Reacting: This could imply no reaction to moderate or significant reactions depending on level of competitive threat.Ref: Chapter 3 of Core Text
  27. 27. Criteria for Choosing Brand Elements 1. Memorability 2. Meaningfulness 3. Likability 4. Transferability 5. Adaptability 6. Protectability Ref: Chapter 4 of Core Text
  28. 28. Options and Tactics for Brand Elements 1. Brand Names 2. URLs (Uniform Resource Locators) 3. Logos and Symbols 4. Characters 5. Slogans 6. Jingles 7. PackagingRef: Chapter 4 of Core Text
  30. 30. New Perspectives on Marketing Five Major Drivers of the New Economy: Philip Kotler identifies them as under: 1. Digitalization and connectivity 2. Disintermediation and Reintermediation 3. Customization and Customerization 4. Industry Convergence 5. New Customer and Company Capabilities (Remaining topic is for Self-study) Ref: Chapter 5 of Core Text
  31. 31. Product Strategy Perceived Quality and Value: 1. Brand Intangibles 2. TQM and Return on Quality 3. Value Chain Relationship Marketing: 1. Mass Customization 2. Aftermarketing 3. Loyalty ProgramsRef: Chapter 5 of Core Text
  32. 32. Pricing Strategy Consumer Price Perceptions: Price Band strategies Value-based Pricing Strategies Setting Prices to Build Brand Equity: Value Pricing based on: a) Product design and delivery b) Product costs, and c) Product prices Everyday Low Pricing (EDLP): A strategy based on low pricing as well as discounts and promotions to consumers at regular intervals.Ref: Chapter 5 of Core Text
  33. 33. Channel Strategy Channel Design: Broadly, channel types can be classified into Direct and Indirect channels. Direct Channels: a) Company-owned stores b) Leased/Rented shopping-space in larger department stores. Indirect Channels: a) Distributors and Dealers b) Retailers c) other middlemen Web Strategies: Today, these are extremely powerful channels if supported by efficient physical “brick & mortar” channels.Ref: Chapter 5 of Core Text
  35. 35. Conceptualizing the Leveraging Process Creation of New Brand Associations: By making a connection between the brand and another entity, consumers may form a mental association from the brand to this entity and, consequently, to any or all associations, judgments, feelings and the like linked to that entity Effects on Existing Brand Knowledge: Three factors are important in predicting the extent of leverage resulting from linking the brand to another entity: i) Awareness and knowledge of the entity ii) Meaningfulness of the knowledge of the entity, and iii) Transferability of the knowledge of the entityRef: Chapter 7 of Core Text
  36. 36. Company The branding strategies adopted by a company that makes a product or offers a service are an important determinant of the strength of association from the brand to the company and any other existing brands. Three main branding options exist for a new brand: 1. Create a new brand 2. Adapt or modify an existing brand 3. Combine an existing and new brandRef: Chapter 7 of Core Text
  37. 37. Country of OriginBesides the company that makes the product,the country or geographic location from whichit is seen as originating may also become linkedto the brand and generate secondaryassociations. Thus, a customer may choose towear Italian suits, exercise in American sportsshoes, drive a German car, and drink Englishbeer.Ref: Chapter 7 of Core Text
  38. 38. Channels of DistributionChannels of distribution can directlyaffect the equity of the brands they sellby the supporting actions that they take.Retail stores can indirectly affect thebrand equity of the products they sell byinfluencing the nature of associationsthat are inferred about these products onthe basis of the associations linked to theretail stores in the minds of consumers.Ref: Chapter 7 of Core Text
  39. 39. Co-Branding Co-branding: Also called brand bundling or brand alliances-occurs when two or more existing brands are combined into a joint product or are marketed together in some fashion. Ingredient branding: This is a special case of co- branding that involves creating brand equity for materials, components, or parts that are necessarily contained within other branded products.Ref: Chapter 7 of Core Text
  40. 40. LicensingLicensing involves contractualarrangements whereby firms can use thenames, logos, characters, and so forth ofother brands to market their own brandsfor some fixed fee. Because it can be ashortcut means of building brand equity,licensing has gained popularity in recentyears.Ref: Chapter 7 of Core Text
  41. 41. Celebrity Endorsement (1) Using well-known and admired people to promote products is a widespread phenomenon with a long marketing history. The rationale behind these strategies is that a famous person can: 1. Draw attention to a brand, and 2. Shape the perceptions of the brand by virtue of the inferences that consumers make based on the knowledge they have about the famous person.Ref: Chapter 7 of Core Text
  42. 42. Celebrity Endorsement (2) Potential Problems: 1. Celebrity endorsers can be overused by endorsing so many products that they lack any specific product meaning or are just seen as overly opportunistic or insincere. 2. There must be a reasonable match between the celebrity and the product. 3. Celebrity endorsers can lose popularity thus diminishing their market value to the brand. 4. Many consumers feel that celebrities are doing the endorsement only for money.Ref: Chapter 7 of Core Text
  43. 43. Sporting, Cultural, or Other Events 1. A brand may seem more likable or even trustworthy by becoming linked to an event. 2. Sponsored events can contribute to brand equity by becoming associated to the brand and improving brand awareness, adding new associations, or improving the strength, favorability, and uniqueness of associations.Ref: Chapter 7 of Core Text
  45. 45. The Brand Value Chain Value Stages: 1. Marketing Program Investment 2. Customer Mindset 3. Market Performance 4. Shareholder ValueRef: Chapter 8 of Core Text
  46. 46. Value Stages (1) Marketing Program Investment: The ability of a marketing program investment to transfer or multiply further down the chain will depend on qualitative aspects of the marketing program via the program multiplier. The Program Multiplier: Four factors are important: 1. Clarity 2. Relevance 3. Distinctiveness, and 4. ConsistencyRef: Chapter 8 of Core Text
  47. 47. Value Stages (2) Customer Mindset: Five dimensions have emerged from research as important measures of the customer mindset: 1. Brand Awareness 2. Brand Associations 3. Brand Attitudes 4. Brand Attachment 5. Brand Activity Customer Multiplier: Three essential factors are: 1. Competitive Superiority 2. Channel and other intermediary support 3. Customer size and profileRef: Chapter 8 of Core Text
  48. 48. Value Stages (3) Market Performance: Six dimensions need to be addressed: 1. Price Premiums 2. Price Elasticities 3. Market Share 4. Brand Expansion 5. Cost Structure 6. Brand Profitability Market Multiplier: Following factors need to be considered: 1. Market Dynamics 2. Growth Potential 3. Risk Profile 4. Brand Contributions Ref: Chapter 8 of Core Text
  49. 49. Value Stages (4) Stakeholder Value: Based on all available and forecasted information about a brand and many other considerations, the financial marketplace then formulates opinions and makes various assessments that have direct financial implications for the brand value. Three important indicators are: 1. Stock price 2. Price/earnings multiple, and 3. Overall market capitalization of the firmRef: Chapter 8 of Core Text
  50. 50. The Brand Value Chain Implications: 1. A necessary condition for value creation is a well-funded, well-designed, and well- implemented marketing program. 2. Value creation involves more than just the initial marketing investment. 3. Each of the three multipliers can increase or decrease market value from stage to stage. 4. The brand value chain provides a detailed roadmap for tracking value creation enabling market research and intelligence efforts.Ref: Chapter 8 of Core Text
  51. 51. Designing Brand Tracking Studies What to Track: 1. Product Brand Tracking 2. Corporate or Family Brand Tracking 3. Global Tracking How to Conduct Tracking Studies: 1. Who to track 2. When and where to track How to Interpret Tracking StudiesRef: Chapter 8 of Core Text
  52. 52. Designing Brand Tracking Studies (1) What to Track: Three distinct surveys can be conducted for: 1. Product-Brand Tracking: The six-block pyramid for brand-building can be used as a basis for design of the questionnaire. 2. Corporate or Family Brand Tracking: Some additional questions may be added to establish levels of corporate credibility and corporate brand associations. 3. Global Tracking: A broader set of background measures are needed to put brand development in those markets in the right perspective .Ref: Chapter 8 of Core Text
  53. 53. Designing Brand Tracking Studies (2) Who to Track: 1. Current Customers 2. Potential Customers 3. Channel Members 4. Frontline Employees (Services sector) When and Where to Track: Options are: Continuous Tracking Studies Based on Stage of Product Life Cycle Based on depth of Brand EquityRef: Chapter 8 of Core Text
  54. 54. Designing Brand Tracking Studies (3) How to Interpret Tracking Studies: For tracking measures to facilitate actionable insights and recommendations, they must be reliable and sensitive as possible. This may require framing of questions in a comparative or temporal manner. It is also necessary to decide on appropriate cutoffs. For example: What is a sufficiently high level of brand awareness? When are brand associations sufficiently strong, favorable, and unique? How positive should brand judgments and feelings be? What are reasonable expectations for the amount of brand resonance?Ref: Chapter 8 of Core Text
  55. 55. Establishing a Brand Equity Management System Brand Equity Charter Brand Equity Report Brand Equity Responsibilities: 1. Overseeing Brand Equity 2. Organizational Design and Structure 3. Managing Marketing PartnersRef: Chapter 8 of Core Text
  56. 56. Establishing a Brand Equity Management System (1) Brand Equity Charter: A formalized document should spell out the following: The firm’s view of the brand equity concept. The scope of the key brands of the firm. Specify the actual and desired equity for a brand at all relevant levels i.e. at individual product level and corporate level. Strategies for managing brand equity. Outline specific tactical guidelines for marketing programs. Trademark usage, packaging & communicationsRef: Chapter 8 of Core Text
  57. 57. Establishing a Brand Equity Management System (2) Brand Equity Report: Important market information that should be included: 1. Product shipments and movement through channels of distribution. 2. Relevant cost breakdowns 3. Price and discount schedules 4. Sales and market share information 5. Profit assessmentsRef: Chapter 8 of Core Text
  58. 58. Establishing a Brand Equity Management System (3) Brand Equity Responsibilities: 1. Overseeing Brand Equity: Aspects that are important: a) Review brand sensitive material b) Review the status of key brand initiatives c) Review brand sensitive projects d) Review new product and distribution strategies with respect to core brand values e) Resolve brand positioning conflicts Ref: Chapter 8 of Core Text
  59. 59. Establishing a Brand Equity Management System (3-contd) Brand Equity Responsibilities: 2. Organizational Structure & Design: The current market trends are redefining job requirements and duties. The traditional marketing department is disappearing from a number of companies that are exploring other ways to conduct their marketing functions through business groups, multidisciplinary teams and so on.Ref: Chapter 8 of Core Text
  60. 60. Establishing a Brand Equity Management System (3-contd) Brand Equity Responsibilities: 3. Managing Marketing Partners: The performance of a brand also depends on the actions taken by outside suppliers and marketing partners. Hence, these relationships must be managed carefully. Many leading global firms have been consolidating their marketing partnerships and reducing the number of outside suppliers. (Ex: Levi Strauss value chain)Ref: Chapter 8 of Core Text (END OF PART I)