What is brand equity & brand elements? What is the criteria for choosing brand elements.

1. ChoosingBrand elements to build Brand equity
&
Designing Marketing Programs to build Brand
Equity
Presented by
Omkar Pimpalkute

2. Learning Outcome
• How a brand’s identity is created
• How to choose brand elements
• How to optimize the marketing mix to build brand
equity
• Understand 4P’s from the perspective of brand
equity & effect of marketing mix actions on brand
knowledge structures

3. “Isko laga dala toh
life jingalala”

4. What is Brand element

5. • Brand elements are those trademarkable
devices that serve to identify and
differentiate the brand from others
• Brand elements are also known as brand
identities
• Brand elements contributes positively in
building brand equity

6. CRITERIA FOR CHOOSING BRAND
ELEMENTS
OFFENSIVE DEFENSIVE
Memorable Transferable
Meaningful Adaptable
Likable Protectable

7. Memorable
How easily do consumers recall and recognize the
brand element, and when—at both purchase and
consumption?
A necessary condition for building brand equity is
achieving a high level of brand awareness

8. Meaningfulness
Brand elements may have descriptive or persuasive meaning
Two important criteria that brand element should convey:
1. General information about the function of the product or
service
2. Specific information about particular attributes and
benefits of the brand
Eg:
The first dimension is an important determinant of brand
awareness and salience; the second, of brand image and
positioning

9. Likability
Marketers need to check :-
Do customers find the brand element aesthetically appealing ?
Is it likable visually, verbally, and in other ways?
The less concrete the possible product benefits
are, the more important is the creative potential
of the brand name and other brand elements to
capture intangible characteristics of a brand

10. Transferability
How useful is the brand element for line or category
extensions?
In general, the less specific the name, the more
easily it can be transferred across categories
To what extent does the brand element add to
brand equity across geographic boundaries and
market segments?
Vicks introduced its cough drops into the German market without
realizing that the German pronunciation of "v" is "f" making
"Vicks" slang for sexual intercourse

11. Adaptability
The more adaptable and flexible the brand
element, the easier it is to update it to changes
in consumer values and opinions
For example:
logos
and
characters

12. Counterfeit Business
Counterfeit products are fake replicas of the real
product
Counterfeit products are often produced with
the intent to take advantage of the superior
value of the imitated product

13. Protectability
Marketers should
• Choose brand elements that can be legally
protected internationally
• Formally register them with the appropriate legal
bodies
If a name, package, or other attribute is too easily
copied, much of the uniqueness of the brand may
disappear

14. OPTIONS AND TACTICS FOR
BRAND ELEMENTS
 Brand Names
 URLs
 Logos and Symbols
 Characters
 Slogans
 Jingles
 Packaging

15. Brand Names
A brand name would be
 easily remembered,
 highly suggestive of both the product class and the
particular benefits
 that served as the basis of its positioning,
 rich with creative potential,
 transferable to a wide variety of product and
geographic settings,
 enduring in meaning and relevant over time,
 and strongly protectable both legally and
competitively

16. Importance of BRAND NAME
• Often captures the central theme
• Key associations of a product in a very compact
and economical fashion
• Extremely effective means of communication
• Register its meaning or activate it in memory in
just a few seconds

17. Naming Guideline
• Brand Awareness : Brand names should be simple
and easy to pronounce or spell, familiar &
meaningful, different, distinctive, unusual
• Simplicity and Ease of Pronunciation and Spelling:
Simplicity reduces the effort consumers process
the brand name
Short names facilitate recall because they are easy
to encode and store in memory

18. Naming Guideline
• Familiarity and Meaningfulness : The brand name
should be familiar and meaningful so it can tap into
existing knowledge structures
• Differentiated, Distinctive and Unique : The
recognition depends on consumers’ ability to
discriminate between brands
• Brand Associations : The brand name can be chosen
to reinforce an important attribute or benefit
association that makes up its product positioning

19. Naming Procedure
1. Define objectives
• Define the ideal meaning the brand should convey
• Recognize the role of the brand within the
corporate branding hierarchy
• How it should relate to other brands and products

20. Naming Procedure
2.Generate names
• Generate as many names and concepts as possible
• Sources of names are valid: company management
and employees; existing or potential ad agencies,
professional name consultants
• Tens, hundreds, or even thousands of names may
result from this step

21. Naming Procedure
3.Screen initial candidates
Screen all the names against the branding objectives
and marketing considerations
Start by eliminating the following:
• Names that have unintentional double meaning
• Names that are unpronounceable, already in use,
or too close to an existing name
• Names that have obvious legal complications
• Names that represent an obvious contradiction of
the positioning

22. Naming Procedure
4. Study candidate names
• Collect more extensive information about each of
the final 5–10 names
• This step is expensive, marketers often search on
a sequential basis testing

23. Naming Procedure
5. Research the final candidates
• Conduct consumer research to confirm
management expectations about the recall and
meaningfulness of the remaining names
• Marketers may survey many consumers to capture
differences in opinion

24. Naming Procedure
6. Select the final name
• Based on all the information collected from the
previous step, management should choose the
name that maximizes the firm’s branding and
marketing objectives and then formally register it

25. Uniform Resource Locators (URL’s)
• Also known as domain names
• Anyone wishing to own a specific URL must
register and pay for the name
• As the world is going tech-savvy the number of
registered URLs increased dramatically
• A company can sue the current owner of the URL
for copyright infringement

26. Logos & Symbols
• Visual elements play a critical role in building
brand equity & brand awareness
• Logos have a long history as a means to indicate
origin, ownership, or association
• Logos range from corporate names or trademarks
(word marks with text only) written in a
distinctive form

27. Benefits of Logo & Symbol
• Easily recognized and can be a valuable way to
identify products
• Versatile because they are often nonverbal, logos
transfer well across cultures & over a range of
product categories
• Identification of the company

28. Characters
• Characters represent a special type of brand
symbol—one that takes on human or real-life
characteristics
• They are introduced through advertising
• can play a central role in ad campaigns and
package designs
• Some are animated characters like the Pillsbury
Doughboy, Ronald McDonald

30. Benefits of Characters
• Colorful and rich in imagery
• Tend to grab attention and useful in creating
brand awareness
• Help to brands break through marketplace clutter
as well as communicate a key product benefit
• The human element of brand characters can
enhance likeability and help create perceptions of
the brand as fun and interesting

31. Slogans
• Short phrases that communicate descriptive or
persuasive information about the brand
• Play an important role on packaging
• Powerful branding devices as they help to build brand
equity
• Function as useful “hooks” or “handles” to help
consumers grasp the meaning of a brand—what it is
and what makes it special
• Summarize and translate the aim of a marketing
program in a few short words or phrases

32. Benefits of Slogans
• Help build brand awareness
• Making strong links between the brand and the
corresponding product category
• Reinforce the brand positioning

33. Designing Slogans
• Interpreted in terms of product performance
• Superior product performance + aspiration
user imagery = powerful platform to build
brand image and equity

34. Updating Slogans
While changing the slogan, they must do the
following:
1. Recognize how the slogan is contributing to
brand equity
2. Decide how much of this equity enhancement is
still needed
3. Retain the needed or desired equities

35. Jingles
• Jingles as extended musical slogans.
• Musical messages written around the brand.
• Permanently registered in the minds of
listeners.
• Most valuable in enhancing brand awareness.
• Consumers are also likely to mentally rehearse
or repeat catchy jingles after the ad is over.
• This creates brand recall.

36. ..Recap
How a brand’s identity is created
Criteria – Memorable, Meaningful, Likable, Transferable, Adaptable,
Protectable
How to choose brand elements
Brand Names, URLs, Logos and Symbols, Characters, Slogans, Jingles ,
Packaging
Now..
How to optimize the marketing mix to build brand equity
Understand 4P’s from the perspective of brand equity & effect of
marketing mix actions on brand knowledge structures

37. What Is Packaging?
• Packaging is the activities of designing and
producing containers or wrappers for a product
• Product packaging is considered as the ultimate
opportunity for marketers to communicate the
brand’s message visually, positioning the same as
a better choice than any of its competitor

38. Benefits of Packaging
• Brand Association
• Provide Information
• Attract Customers
• Protect Products

39. Objectives of Packaging
• Identify the brand
• Convey descriptive and persuasive information
• Facilitate product transportation and protection
• Assist in at-home storage
• Aid product consumption

40. Packaging discourages shoplifting
packaging are excessively large compared to the
size of the actual product in order to make their
theft easier to notice

41. Packaging at
the Point of Purchase

42. Why Packaging matters

43. Packaging Innovations

45. Why Packaging Changes
• To signal a higher price
• When a significant product line expansion would
benefit from a common look
• To accompany a new product innovation to signal
changes to consumers
• When the old package just looks outdated

48. Psychology Of Packaging
• Packaging can influence taste
• Packaging can influence value
• Packaging can influence consumption
• Packaging can influence how a person uses a
product

49. Packaging can influence taste

50. Packaging can influence value

51. Packaging can influence how a person
uses a product

52. Designing Marketing Programs to
Build Brand Equity

54. New Perspective on Marketing
• Digitalization and connectivity(internet, mobile
devices)
• Disintermediation and reintermediation (middlemen)
• Customization and custormerization (providing
customers ingredients to make their own product)
• Industry convergence (blurring of industry
boundaries)
• New customer and company capabilities

56. Personalizing marketing
• Experiential marketing
• One-to-one marketing
• Permission marketing

57. Experiential Marketing
Consumers are far more likely to choose brands
with whom they’ve had a positive, real-life
experience.
“The idea is not to sell something, but to
demonstrate how a brand can enrich a customer’s
life”

58. One-to-one Marketing

59. One-to-one Marketing
• The Fundamental Strategies of One-to-One
Marketing:
• - Focus on individual consumers through
consumer databases
• - Respond to consumer dialogue via
interactivity
• - Customize products and services

60. Permission Marketing

61. Permission Marketing
Permission marketing is the practice of marketing
to consumers only after gaining their express
permission

62. Product Strategy
• Designing and delivering a product or service
that fully satisfies consumer needs and wants
• To create brand loyalty

63. Perceived Quality and Value
• Perceived quality is the customers perception of
the quality of the product or service
• General dimensions of product quality:
Performance
Features
Conformance quality
Reliability
Durability
Serviceability
Style and design

64. Brand Intangibles
• Product quality depends on functional
product performance as well as other broader
performance considerations
• Brand attitudes not necessarily depend on
product performance
• Consumer evaluation may not correspond to
perceived quality of the product
• Marketers must take a broad, holistic
approach to building brand equity

65. Total quality management
• Importance of product quality
• Concepts- QFD and TQM
• Increase in cost to maintain quality

66. Return on quality
• Improve quality on dimensions-tangible
customer benefits, lower costs or increased
sales
• Produces quality which consumers actually
want

67. Value chain
• Strategic tool for identifying ways to create
more customer value
• Primary Value creating activities-inbound
logistics, operations, outbound logistics,
marketing and sales, and services
• Support activities-firm infrastructure, human
resource management, technology
development, and procurement

68. • Competitive advantage can be achieved by
improving performance and reducing costs
• Partnering with other members of value chain

69. What is channel strategy ?
Marketing channels are
defined as “sets of
interdependent organizations
involved in the process of
making a product or service
available for use or
consumption.”
Producer
Channel
Customer

70. Channel Design
DESIGN CHANNEL CAN BE CLASSIFIED INTO TWO
CATEGORIES:
INDIRECT CHANNELS:
Indirect channels sell through third-party
intermediaries such as agents or broker
representatives, wholesalers or distributors, and
retailers or dealers

71. Push and Pull Strategies
•Push Strategy:
“Taking the product to the customer”
•Pull Strategy:
"Getting the customer to come to you"

72. Push and Pull Strategies

73. Channel support
Firms are increasingly providing some of the
services themselves through toll-free numbers
and Web sites, establishing a “marketing
partnership” with retailers may nevertheless be
critical to ensuring proper channel support and
the execution of these various services

74. DIRECT CHANNELS
DIRECT CHANNEL:
Direct channels mean selling through
personal contacts from the company to
prospective customers by mail, phone,
electronic means, in-person visits

75. Company Owned Stores
To gain control over the selling process and build
stronger relationships with customers, some
manufacturers are introducing their own retail
outlets, as well as selling their product directly to
customers through various means

76. Store-Within-a-Store
Attempting to create their own shops
within major department stores

77. WEB STRATEGIES
One lesson from the dot-com boom and bust is the
advantage of having both a physical channel as well
as virtual,online retail channel.
Advantage for multichannel retailers-
• They have market clout with suppliers.
• They have established distribution and fulfillment
systems.
• They can cross sell between Web sites and
stores.

78. HYBRID CHANNEL