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Lecture 3 Brand Management

Brand Positioning

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Lecture 3 Brand Management

  1. 1. Brand Management PT MBA I year Trimester – 3 Lecture - 3
  2. 2. Today’s Menu <ul><li>Customer-based brand equity (CBBE) pyramid </li></ul><ul><li>Brand positioning (as a part of 1.Building Brands) </li></ul><ul><ul><li>Target Market </li></ul></ul><ul><ul><li>Competitive scenario </li></ul></ul><ul><ul><li>Points of Parity and Differences </li></ul></ul><ul><ul><li>Updating Positioning </li></ul></ul><ul><li>Brand Values </li></ul><ul><ul><li>Core brand values </li></ul></ul><ul><ul><li>Brand mantras </li></ul></ul>
  3. 3. Customer-Based Brand Equity <ul><li>The differential effect of </li></ul><ul><li>brand knowledge on consumer response to the marketing of the brand </li></ul>
  4. 4. CBBE Pyramid Brand Salience Consumer- Brand Resonance Consumer Judgments Consumer Feelings Brand Performance Brand Imagery 4 Bond – Strong relationship 1 Broad Awareness 2 Differentiators 3 Emotional and Intellectual influence
  5. 5. Subdimensions of brand building blocks Salience Resonance Judgments Feelings Performance Imagery Loyalty Attachment Community Engagement Quality Credibility Consideration Superiority Warmth, Fun Excitement, Security, Social Approval, Self-Respect 4 Brand Relationships (WHAT About You AND ME?) 1 Brand Identity (WHO Are You?) 2 Brand Meaning (WHAT Are You?) 3 Brand Response (WHAT About You?) User Profiles Purchase and Usage Situations Personality & Values History, Heritage, & Experiences Brand Characteristics & Secondary Features Product Reliability, Durability & Serviceability Service Effectiveness, Efficiency, & Empathy Style and Design; Price Category Identification Needs Satisfied
  6. 6. Brand Positioning >> Basic Concepts <ul><li>Death of “one-size-fits-all” </li></ul><ul><li>Mass production >> Mass customization </li></ul><ul><li>“act of designing the company’s offer and image so that it occupies a distinct and valued space in the target customer’s mind </li></ul><ul><li>Key steps: </li></ul><ul><ul><li>Who is the target customer? </li></ul></ul><ul><ul><li>Who are the main competitors? </li></ul></ul><ul><ul><li>How is the brand similar to the competition? </li></ul></ul><ul><ul><li>How is the brand different from the competition? </li></ul></ul>
  7. 7. Brand Positioning >> Target Market <ul><li>Market – set of actual and potential buyers – motivation, ability and opportunity to buy your product </li></ul><ul><li>Market segmentation – Dividing into Homogenous consumer groups </li></ul><ul><li>Customization vs. Cost tradeoff – is “ Mera wala green” profitable </li></ul><ul><li>Segmentation base: </li></ul><ul><ul><li>Descriptive – Customer Oriented (who is the customer?) </li></ul></ul><ul><ul><li>Behavioral – Product oriented (customer’s product usage) </li></ul></ul>
  8. 8. Brand Positioning >> Target Market <ul><li>Behavioral </li></ul><ul><ul><li>User status </li></ul></ul><ul><ul><li>Usage rate </li></ul></ul><ul><ul><li>Usage occasion </li></ul></ul><ul><ul><li>Brand loyalty </li></ul></ul><ul><ul><li>Benefits sought </li></ul></ul><ul><li>Demographic </li></ul><ul><ul><li>Income </li></ul></ul><ul><ul><li>Age </li></ul></ul><ul><ul><li>Gender </li></ul></ul><ul><ul><li>Race </li></ul></ul><ul><ul><li>Family </li></ul></ul><ul><li>Psychographic </li></ul><ul><li>Values, opinions, attitudes, activities, lifestyle </li></ul><ul><li>Geographic </li></ul><ul><ul><li>International </li></ul></ul><ul><ul><li>Regional </li></ul></ul>Consumer Segmentation bases
  9. 9. Brand Positioning >> Target Market <ul><li>Nature of Good </li></ul><ul><ul><li>Specification </li></ul></ul><ul><ul><li>Kind </li></ul></ul><ul><ul><li>Where used </li></ul></ul><ul><ul><li>Type of buy </li></ul></ul><ul><li>Buying Condition </li></ul><ul><ul><li>Purchase location </li></ul></ul><ul><ul><li>Who buys </li></ul></ul><ul><ul><li>Type of buy </li></ul></ul>B2B Segmentation bases <ul><li>Demographics </li></ul><ul><ul><li>Financials </li></ul></ul><ul><ul><li>Number of employees </li></ul></ul><ul><ul><li>Size of production </li></ul></ul><ul><ul><li>Number of establishment </li></ul></ul>
  10. 10. Criteria for segmentation <ul><li>Identifiability: can the segment easily determined? </li></ul><ul><li>Size: I s it viable to target the size? </li></ul><ul><li>Accessibility: Can the product be made available easily to the segment? </li></ul><ul><li>Responsiveness: How will the segment respond to a targeted marketing initiative? </li></ul>
  11. 11. <ul><li>For the selected TG who are the other competitors? </li></ul><ul><li>What is their size and market share? </li></ul><ul><li>What is their positioning? </li></ul><ul><li>Is there a unique space that can be occupied by our brand? </li></ul>Brand Positioning >> Competitive Scenario
  12. 12. Brand Positioning >> Points of Difference <ul><li>Strong, favourable and UNIQUE associations for a brand </li></ul><ul><li>Functional – Performance related </li></ul><ul><li>Abstract – Imagery related </li></ul><ul><li>Similar to the notion of USP </li></ul><ul><li>Sustainable Competitive Advantage (SCA) </li></ul>
  13. 13. <ul><li>Not necessarily unique – may be shared with other brands </li></ul><ul><li>Category points of parity – legitimate and credible feature </li></ul><ul><ul><li>Makes your service at par with the category </li></ul></ul><ul><ul><li>Relevance in brand extensions within same category </li></ul></ul><ul><li>Competitive POPs – To negate POD’s of competition </li></ul><ul><li>Balanced use of POP and POD </li></ul><ul><li>POP to assure customers that you qualify very well for the category </li></ul><ul><li>POD to top it up and announce supremacy for one aspect of category </li></ul>Brand Positioning >> Points of Parity
  14. 14. Brand Positioning >> Points of Parity & Diff. <ul><li>Establish brand’s category membership </li></ul><ul><li>Choosing POP and POD </li></ul><ul><ul><li>Desirability </li></ul></ul><ul><ul><ul><li>Relevance </li></ul></ul></ul><ul><ul><ul><li>Distinctiveness </li></ul></ul></ul><ul><ul><ul><li>Believability </li></ul></ul></ul><ul><ul><li>Deliverability </li></ul></ul><ul><ul><ul><li>Feasibility </li></ul></ul></ul><ul><ul><ul><li>Communicability </li></ul></ul></ul><ul><ul><ul><li>Sustainability </li></ul></ul></ul>
  15. 15. Updating brand positioning <ul><li>Laddering – Product functions >>> core values </li></ul><ul><li>Reacting – Response to competitive changes </li></ul>
  16. 16. <ul><li>Laddering – Product functions >>> core values </li></ul><ul><li>Reacting – Response to competitive changes </li></ul>Updating brand positioning Abstract values Motivations Benefits Attributes
  17. 17. <ul><li>Laddering – Product functions >>> core values </li></ul><ul><li>Reacting – Response to competitive changes </li></ul><ul><ul><li>Do Nothing </li></ul></ul><ul><ul><li>Go on the defensive </li></ul></ul><ul><ul><li>Go on the offensive </li></ul></ul>Updating brand positioning
  18. 18. Core Brand Values <ul><li>Abstract associations (attributes and benefits) </li></ul><ul><li>5-10 most important aspects of a brand </li></ul><ul><li>Directly related to POP and POD </li></ul><ul><li>Measurable through TOM recall </li></ul>
  19. 19. Brand Mantra <ul><li>Expression of “Heart and soul” of brand </li></ul><ul><li>Short phrase that captures the spirit of positioning </li></ul><ul><li>Provides guidance to all the activities of the brand </li></ul><ul><li>Emotional modifier>> descriptive modifier>> Brand function </li></ul><ul><li>McD – “Food, folks and Fun </li></ul><ul><li>Nike – “Authentic Athletic Performance” </li></ul><ul><li>Disney – “Fun Family Entertainment” </li></ul><ul><li>Zee Cinema – “Movies Masti Magic” </li></ul><ul><li>Its should </li></ul><ul><ul><li>Communicate the category and boundaries </li></ul></ul><ul><ul><li>Simplify.. To make brand memorable </li></ul></ul><ul><ul><li>Inspire – Should stand out with a higher meaning </li></ul></ul>
  20. 20. Summary <ul><li>CBBE pyramid – from awareness to Strong relationship </li></ul><ul><li>Positioning – creating a distinct identity </li></ul>