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Branding & Brand Positioning

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A summary on products branding from a marketing management perspective, discussing topics such as creating brands, brand equity, brand positioning, product lifecycle and market evolution.

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Branding & Brand Positioning

  1. 1. Branding & Brand Positioning Prepared by: Samer Meqdad
  2. 2. Outline <ul><li>What is a Brand? </li></ul><ul><li>Brand Elements </li></ul><ul><li>Brand Role and Advantages </li></ul><ul><li>Brand Equity </li></ul><ul><li>Brand Portfolios </li></ul><ul><li>Strategic Brand Management </li></ul><ul><li>Brand Positioning </li></ul><ul><li>PODs & POPs </li></ul><ul><li>Product Lifecycle </li></ul><ul><li>Market Evolution </li></ul>
  3. 3. What is a Brand? <ul><li>A name , term , sign , symbol or design , or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. </li></ul>What is Branding? Providing goods and services with the power of the brand .
  4. 4. Brand Elements
  5. 5. Brand Element Choice Criteria – How to choose good elements? <ul><li>Memorable </li></ul><ul><li>Meaningful </li></ul><ul><li>Likeable </li></ul><ul><li>Transferable </li></ul><ul><li>Adaptable </li></ul><ul><li>Protectable </li></ul>
  6. 6. Brand Naming <ul><li>Individual names </li></ul><ul><li>Blanket family names </li></ul><ul><li>Separate family names </li></ul><ul><li>Corporate name/individual name combo </li></ul>
  7. 7. Slogans – Examples عندما تعشق الشوكولاتة
  8. 8. The Role of Brands
  9. 9. Advantages of Strong Brands <ul><li>Improved perceptions of product performance </li></ul><ul><li>Greater loyalty </li></ul><ul><li>Less vulnerability to competitive marketing actions </li></ul><ul><li>Less vulnerability to crises </li></ul><ul><li>Larger margins </li></ul><ul><li>More inelastic consumer response </li></ul><ul><li>Greater trade cooperation </li></ul><ul><li>Increased marketing communications effectiveness </li></ul><ul><li>Possible licensing opportunities </li></ul>
  10. 10. What is Brand Equity? <ul><li>The added value given to goods and services, through branding which may be reflected in the way consumers, think, feel, and act with respect to the brand. </li></ul>
  11. 11. The 10 Most Valuable Brands Brand 2006 Brand Value (Billions) Coca-Cola $67.00 Microsoft $56.93 IBM $56.20 GE $48.91 Intel $38.32 Nokia $30.13 Toyota $27.94 Disney $27.85 McDonald’s $27.50 Mercedes-Benz $22.13
  12. 12. Measuring Brand Equity <ul><li>Brand Audits </li></ul><ul><ul><li>Comprehensive examination of a brand to assess the health of the brand </li></ul></ul><ul><ul><li>Suggest ways to improve its equity. </li></ul></ul><ul><li>Brand Tracking </li></ul><ul><ul><li>Collecting information about the brand performance </li></ul></ul><ul><li>Brand valuation </li></ul><ul><ul><li>Determining financial value of the brand </li></ul></ul>
  13. 13. Managing Brand Equity <ul><li>Brand reinforcement </li></ul><ul><ul><li>Continuous product improvement and innovation. </li></ul></ul><ul><li>Brand revitalization </li></ul><ul><ul><li>Change in Positioning </li></ul></ul><ul><ul><li>Overhaul the brand image </li></ul></ul>
  14. 14. Brand Portfolios <ul><li>A set of brands a company offers </li></ul><ul><li>Advantages </li></ul><ul><ul><li>Increasing shelf presence and retailer dependence in the store </li></ul></ul><ul><ul><li>Attracting consumers seeking variety </li></ul></ul><ul><ul><li>Increasing internal competition within the firm </li></ul></ul><ul><ul><li>Yielding economies of scale in advertising, sales, merchandising, and distribution </li></ul></ul>
  15. 15. Brand Roles in a Brand Portfolio <ul><li>Flankers </li></ul><ul><li>Cash cows </li></ul><ul><li>Low-end, entry-level </li></ul><ul><li>High-end prestige </li></ul>
  16. 16. Strategic Brand Management <ul><li>Identifying & establishing brand positioning </li></ul><ul><li>Planning & implementing brand marketing </li></ul><ul><li>Measuring & interpreting brand performance </li></ul><ul><li>Growing & sustaining brand value </li></ul>
  17. 17. What is Positioning? <ul><li>The act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market. </li></ul><ul><ul><li>Value Proposition </li></ul></ul><ul><ul><li>A good hot pizza , delivered to your door within 30 minutes of ordering, at a moderate price </li></ul></ul>
  18. 18. Defining Associations Both are important!
  19. 19. PODs Success Criteria Deliverability Criteria Consumer Desirability Criteria
  20. 20. Examples of Negatively Correlated Attributes and Benefits <ul><li>Low-price vs. High quality </li></ul><ul><li>Taste vs. Low calories </li></ul><ul><li>Nutritious vs. Good tasting </li></ul><ul><li>Powerful vs. Safe </li></ul><ul><li>Ubiquitous vs. Exclusive </li></ul><ul><li>Varied vs. Simple </li></ul>
  21. 21. Differentiation Strategies <ul><li>Product </li></ul><ul><li>Distribution Channel </li></ul><ul><li>Personnel </li></ul><ul><li>Image </li></ul>
  22. 22. Product Differentiation <ul><li>Product form </li></ul><ul><li>Features </li></ul><ul><li>Performance </li></ul><ul><li>Conformance </li></ul><ul><li>Durability </li></ul><ul><li>Reliability </li></ul><ul><li>Reparability </li></ul><ul><li>Style </li></ul><ul><li>Design </li></ul><ul><li>Ordering ease </li></ul><ul><li>Delivery </li></ul><ul><li>Installation </li></ul><ul><li>Customer training </li></ul><ul><li>Customer consulting </li></ul><ul><li>Maintenance </li></ul>
  23. 23. Distribution Channel Differentiation <ul><li>Coverage </li></ul><ul><li>Expertise </li></ul><ul><li>Performance </li></ul>
  24. 24. Personnel Differentiation <ul><li>Better-trained staff </li></ul><ul><li>Competent (skill and knowledge) </li></ul><ul><li>Trustworthy </li></ul><ul><li>Friendly and respectful </li></ul><ul><li>Reliable (perform consistently & accurately) </li></ul><ul><li>Responsive </li></ul><ul><li>Good communicators (understand customer and communicate clearly) </li></ul>
  25. 25. Image Differentiation <ul><li>Establish character and value proposition </li></ul><ul><li>Convey in a distinctive way </li></ul><ul><li>Deliver emotional power </li></ul>عندما تعشق الشوكولاتة
  26. 26. Product Life Cycles
  27. 27. Claims of Product Life Cycles <ul><li>Products have a limited life </li></ul><ul><li>Product sales pass through distinct stages each with different challenges and opportunities </li></ul><ul><li>Profits rise and fall at different stages </li></ul><ul><li>Products require different strategies in each life cycle stage </li></ul>
  28. 28. Product Life Cycles Stages
  29. 29. Stages in the Maturity Stage Growth Stable Decaying Maturity
  30. 30. Strategies for Sustaining Rapid Market Growth <ul><li>Improve product quality , add new features , and improve styling </li></ul><ul><li>Add new models and flanker products </li></ul><ul><li>Enter new market segments </li></ul><ul><li>Increase distribution coverage </li></ul><ul><li>Shift from product-awareness advertising to product-preference advertising </li></ul><ul><li>Lower prices to attract the next layer of price-sensitive buyers </li></ul>
  31. 31. Ways to Increase Sales Volume <ul><li>Convert nonusers </li></ul><ul><li>Enter new market segments </li></ul><ul><li>Attract competitors’ customers </li></ul><ul><li>Have consumers use </li></ul><ul><ul><li>The product on more occasions </li></ul></ul><ul><ul><li>More of the product on each occasion </li></ul></ul><ul><ul><li>The product in new ways </li></ul></ul>
  32. 32. Market Evolution
  33. 33. Market Evolution Stages <ul><li>Latent </li></ul><ul><li>Single-niche </li></ul><ul><li>Multiple-niche </li></ul><ul><li>Mass-market </li></ul>New firms enter market Competition covers all major market segments Society needs decline or new technology replaces old
  34. 34. Maturity Strategies
  35. 35. References <ul><li>Philip Kotler, Marketing Management, 11 th Edition. Prentice Hall, 2002. </li></ul>

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