Bm 9 marketing element for be and csr

“ We can, We will ”
Brand Management 9
Marketing Elements for Brand Equity / CSR
Shim, Jae hak

Cold Call
2015-05-04 Shim, Jaehak (jaehak_shim@cambridgejbs.net)
Brand Equity?
C.B.B.E.?
2

Contents
1
Strategic Brand Management2
Marketing Elements for brand equity
What we will discuss and achieve today ?
3
Sustainability of Brand and CSR
4
3
Key Imperatives for CSR

I.M.C. and Brand
Integrated Marketing Communication
 Targeted
 Unified
 Consistent
 Coordinated
 Comprehensive
4

Thing
Experience
Prodices
Solution
Meaning
(performance)
(better performance)
(problem solving)
(feeling)
(Interpretation)
Heart
Mind
Soul
Marketing4PMixElement forBrandEquity
Product
 Emphasis on the product features
 which are based on brand personality
 That contribute to perceived product quality
 Quality : Features that compliment core attributes
 Conformance quality (Absence of defects)
 Reliability & Durability
 Prodice : Serviceability
 Aesthetics : Style and Design
2015-05-04 Shim, Jaehak (jaehak_shim@cambridgejbs.net) 5

 Based on perceptions of a brand‟s position
 Consumers‟ expectation
 Brand personality
 Price as quality assurance
 A communication tool for building brand equity
 Premium pricing (Prestige pricing)
• Consistently high price interlinked with value perceived from
product
• Ownership of high price products
signals „membership‟
 Low pricing (Value pricing)
• Minimize the price fluctuations
• Prevent to discount the brand value
directly
Price
6

 Communication tools
 Tradition 4 main media : TV, Radio, Print (newspaper,
magazine), and Out door
 Internet : Mutual communication
 Sales promotion : customer pm, trade pm
 Publicity : Public relations, sponsorship
 Personal communication : telemarketing, selling
 Key communication decision
 Media selection
 Message content depend on media
 Integrated Marketing Communication
Marketing4PMixElementsforBrandEquity
Promotion
7

 Select the channel strategy based on the
positioning, PLC and market environment
 Strategy options
 Direct channel strategy when the product information, product
customization, quality assurance is relatively important
 Indirect channel strategy when availability (distribution), low scale
of sales
 Consideration from current market environment
 Shift in balance of power between manufacturer and channel
 Reduced brand loyalty
 Splintered mass market & reduced media effectiveness
 The role of retailer image
Place
8

Tell me….

 The power of the 5th „P‟ (Gallup, William J. McEwen)
 The most important driver of brand loyalty
The 5th Element
10

The 5th P
The Moment of Truth
 „Moment De La Vardad‟
 So important not to accept mistake
 The short contact but it can change the
brand image and future of the company
(Jan Carzon, The moment of Truth)
 People as Brand Ambassador
 Different cultured
 Sometimes irrational and inconsistent
 Management customer experience
 Must be in the same Brand Identity

Integrated Marketing
Communications
 The “voice” of the brand
 A means by which it can establish a dialogue and build
relationships with consumers
 Allow marketers to inform, persuade, provide incentives,
and remind consumers directly or indirectly
 Can contribute to brand equity by establishing the brand
in memory and linking strong, favorable, and unique
associations to it

Developing IMC
Programs
 Mixing communication options
 Evaluate all possible communication options available to create
knowledge structures according to effectiveness criteria as well as
cost considerations.
 Different communication options have different strengths and can
accomplish different objectives.
 Determine the optimal mix
 And then Plan-Action-Evaluation Cycle

Evaluating IMC
Programs
 Coverage: What proportion of the target audience is
reached by each communication option employed?
 Frequency: How many times target audience are
exposure to IMC ?How much overlap exists among
options?
 Cost: What is the per capita expense?
 Contribution: The collective effect on brand equity in
terms of
 enhancing depth and breadth of awareness
 improving strength, favorability, and
uniqueness of brand associations
2015-05-04 14Shim, Jaehak (jaehak_shim@cambridgejbs.net)

Evaluating IMC
Programs (cont.)
 Commonality: The extent to which information conveyed
by different communication options share meaning
 Complementarities: The extent to which different associations
and linkages are emphasized across communication options
 Versatility: The extent to which information contained in a
communication option works with different types of
consumers
 Different communications history
 Different market segments

Brand Communication
Guidelines
 Be analytical : Use frameworks of consumer behavior
and managerial decision making to develop well-reasoned
communication programs
 Be curious : Fully understand consumers by using all
forms of research and always be thinking of how you
can create added value for consumers
 Be single-minded : Focus message on well-defined targe
t markets (less can be more)
 Be integrative : Reinforce your
message through consistency and
cuing across all communications

Marketing Communication
Guidelines (Cont.)
 Be creative : State your message in a unique fashion;
use alternative promotions and media to create favorable,
strong, and unique brand associations
 Be observant : Monitor competition, customers, channel
members, and employees through tracking studies
 Be realistic : Understand the complexities involved in
marketing communications
 Be patient : Take a long-term view of communication
effectiveness to build and manage brand equity

Complete
Brand Guide Line
 Dunhill

Strategic Brand
Management
 Strategic brand management involves the design and
implementation of marketing programs and activities
to build, measure, and manage brand equity.
 The strategic brand management process is defined as
involving four main steps
 Identifying and establishing brand positioning and values
 Planning and implementing brand marketing programs
 Measuring and interpreting brand performance
 Growing and sustaining brand equity

Strategic Brand
Management Process
• Mental maps
• Competitive frame of reference
• Points of parity and points of differences
• Core brand values
• Brand mantra
Identify and Establish
Brand Positioning and Values
• Mixing and matching of brand elements
• Integrating brand marketing activities
• Leverage of secondary associations
Plan and Implement
Brand Marketing Program
• Brand value chain
• Brand audits
• Brand tracking
• Brand equity management system
Measure and Interpret
Brand Performance
• Brand-product matrix
• Brand portfolios and hierarchies
• Brand expansion strategies
• Brand reinforcement and revitalization
Grow and Sustain
Brand Equity
Steps Key Concept

Managerial Assistance
for Brand Management
 Genuine top management commitment to, and
communication of, brand values not just lip service!!
 Build esprit de corps & socialize new people into the
brand
 Team building initiatives
 A „bottom-up‟ approach to brand building
 Decentralize market intelligence generation
 Market-based reward systems
 Avoid the “folly of rewarding A while hoping for B

Guide Lines for
Brand Management
1. Protect your brand
2. Honor your stakeholder
3. Treat your brand as an investment, not a cost
4. Exploit the financial potential of your brand
5. Understand that successful brand management
nowadays is a complex task
(Tom Blakett, The Economist)

“The world is unequal, unstable and unsustainable-
governments alone can’t move us where we need to
be”
Bill Clinton, 2006

Reality of the
Global Economy

Real World

What do you Want ?

What do you want
to be ?

Why be on the light
side ?

Answer is….
 Because we are good Christian ?
 Or we believe responsibility as a „Good Samaritan‟?
 Or due to the cost efficiency due to the tax reduction ?
However,
We are not charity non profit organization…..
The real justification is the fact that customers care
about social and environmental issues.
“ We want to make more sustainable profit in long
term “

Positive Ethical Behavior
over the World
‘ % agreeing “I make sure I regularly buy product or service from
companies that…’

Understanding
Ethical Behavior
 77% of CEOs and Marketing Directors believe CSR can
enhance corporate and brand reputation
 86% of consumers said that they would have a more
positive opinion of the company that is doing something
to make the world a better place regardless of the cause
or issue concerned
 (A Research International study in 1996, UK)

The Media Response

Corporate Social
Responsibility
“Perhaps we have the opportunity to be a different type of global
company, a global brand that can build a different mode, a
company that is a global business, that makes a profit, but at the
same time demonstrates, a social conscience and gives back to
the local market.” (Howard Schultz, CEO, Starbucks)

CSR &
Brand Management
 If you can prove that your business is making a positive
contribution to the societal challenge then you can create
ADVANTAGE
 If others can prove that your business is making our societal
challenge more difficult then you are exposed to
REPUTAION RISK
(Freud Communication 2007)
A company's reputation can quickly be tarnished if activists
target its policies and practices

Nike Case
 Background
 $18.6 Billion revenue in 2008 globally
 Focus on development of the product and marketing
 Manufactured all product through outsourcing over the world
 Issue
 Child abuse and labor exploitation in the 3rd world
 Pakistan case publicized by Life Magazine, 1996
 Similar Issues in China and Indonesia
 Result
 Lose share to Rebok and Addidas in 90s
 And then,….
• Marketing effort and New contact
• The criticism continues

Body shop Case
 Starting as a small cosmetic shop since 1992
 Strong Policy for sustainable business
 RRR campaign (Refill, Reuse, and Recycle )
 Against animal testing (AAT) but botany raw material
 Fair Community Trade
 Result
 Top ranked in „Ethical Reputation Index‟
 Average 9% growth rate in last 10 years

Sustainable
development
There is a lot wrong with our world. But it is not as bad as many
people think. It is worse… The lesson is that if we continue with
activities which destroy our environment and undermine the
conditions for our own survival, we are the virus. Making the
change needed to avoid that fate is perhaps the greatest challenge
we have ever faced.
Michael Meacher (UK Environment Minister),

Definitions of
sustainable development
“…development that meets the needs of the present without
compromising the ability of future generations to meet their
own needs.”
Source: G H Brundtland, 1987, Our common future, report of the World
Commission on environment and development, Oxford University Press.
“The goal of sustainable development is to enable all
people throughout the world to satisfy their basic needs
and enjoy a better quality of life, without compromising
the quality of life of future generations…
Source: UK Sustainable Development Commission,
http://www.sd-commission.org.uk/pages/principles/definitions.html

Sustainability ?

Social
• empowerment
• inclusion/consultation
• institutions/governance
Environmental
• resilience/biodiversity
• natural resources
• pollution
Economic
• inter-generational equity
• values/culture
Poverty
Equity
•growth
•efficiency
•stability
Source: M Munasinghe, 1992, Environmental Economics and Sustainable
Development, Rio Earth Summit, World Bank, Washington DC.
Three pillars of
sustainable development

Key Imperatives for
CSR
Don’tsDos
 Select a cause that is a good
fit both in terms of your core
business &value and your target
audience
Set out to develop a long term
partnership with the cause
Agree on joint activities,
events, areas within the cause
that you can own and grow
Develop local communication
plan that reach out all
stakeholders
 Create many touch point
possible
 Change causes frequently or
support too many non-related
causes
 Choose a cause that does not
resonate with your target
audience
 Create CSR initiatives as a
„PR exercise‟ (Take time)
Try to create campaign from
one department only
 Expect your charity partner to
adjust their cause to your
objectives and work
Source) Ogilby CSR Training 2006

Possible Global
Charity Partners

Wrap-up
 Marketing elements for brand equity
 4 P Mix & 5th P
 Strategic Brand Management
 Corporate Social Responsibility
 Concept
 Potential of CSR for Marketing
 The essence of CSR for Brand Management
 Sustainable Development
 Key imperatives for CSR activates


Bm 9 marketing element for be and csr

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