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Branding and Brand Positioning / Marketing Management By Kotler Keller

This document provides an outline on branding and brand positioning. It defines what a brand and branding are, and lists advantages of strong brands such as improved perceptions, loyalty, margins, and marketing effectiveness. It discusses key aspects of branding including brand elements, equity, strategies, and portfolios. It also covers brand positioning and differentiating a brand through points of parity and points of difference. The document aims to educate on developing and managing brands for optimal market performance and value.

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Branding and Brand Positioning
Lecture Outline  What is a Brand/Branding?  Brand Role and Advantages  Brand Elements/Brand Element Choice Criteria  Brand Equity ◦ Measuring Brand Equity/The Brand Value Chain ◦ Managing Brand Equity  Devising a Branding Strategy  Brand Portfolios  Brand Positioning /Requirements  PODs & POPs
What is a Brand? 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. What is Branding? Providing goods and services with the power of the brand. It’s all about creating differences between products.
The Role of Brands
Advantages of Strong Brands  Improved perceptions of product performance  Greater loyalty  Less vulnerability to competitive marketing actions  Less vulnerability to crises  Larger margins  Greater financial market returns  More inelastic consumer response to price increases  Greater trade cooperation  Increased marketing communications effectiveness  Possible licensing opportunities  Additional brand extension opportunities  Improved employee recruiting and retention
Brand elements are devices which can be trademarked, that identify and differentiate the brand. Most strong brands employ multiple brand elements. Nike has the distinctive “swoosh” logo, the empowering “Just Do It” slogan, and the “Nike” name from the Greek winged goddess of victory. Brand Elements
Brand Element Choice Criteria  Memorable—How easily do consumers recall and recognize the brand element both at purchase and consumption such as Tide, Crest, etc  Meaningful—Is the brand element credible? Does it suggest the corresponding category and a product ingredient or the type of person who might use the brand? Examples are Die Hard auto batteries, Mop & Glo floor wax  Likable—How aesthetically appealing is the brand element? Examples are Flickr photo sharing, Wikipedia and Motorola’s ROKR, etc
Brand Element Choice Criteria  Transferable—Can the brand element introduce new products in the same or different categories? The Amazon is famous as the world’s biggest river, and the name suggests the wide variety of goods that could be shipped  Adaptable—How adaptable and updatable is the brand element?  Protectable—How legally protectable is the brand element? How competitively protectable?
Brand Naming  Individual names  Blanket family names  Separate family names  Corporate name/individual name combo
What is Brand Equity?  Brand equity is the added value endowed on products and services. It may be reflected in the way consumers think, feel, and act with respect to the brand, as well as in the prices, market share, and profitability the brand commands.
Measuring Brand Equity  An indirect approach assesses potential sources of brand equity by identifying and tracking consumer brand knowledge structures.  A direct approach assesses the actual impact of brand knowledge on consumer response to different aspects of the marketing.  The “Brand Value Chain” links the two approaches
 The brand value chain is a structured approach to assessing the sources and outcomes of brand equity and the way marketing activities create brand value.It is based on following assumptions: ◦ First, brand value creation begins when the firm targets actual or potential customers by investing in a marketing program to develop the brand, including product research, development, and design; trade or intermediary support; and marketing communications. ◦ Next, we assume customers’ mind-sets, buying behavior, and response to price will change as a result of the marketing program; the question is how. ◦ Finally, the investment community will consider market performance, replacement cost, and purchase price in acquisitions (among other factors) to assess shareholder value in general and the value of a brand in particular. The Brand Value Chain
Managing Brand Equity  Brand Valuation Determining total financial value of the brand (Brand Value is the net present value(NPV) of the forecasted Brand Earnings).
Managing Brand Equity  Brand Valuation Determining total financial value of the brand (Brand Value is the net present value(NPV) of the forecasted Brand Earnings).  Brand Reinforcement Continuous product improvement. Innovation and marketing support.  Brand Revitalization ◦Change in Positioning (The place in the consumers mind that you want your brand to own. It is the benefit you want your consumer to perceive when they think of your brand) ◦Overhaul the Brand Image (The impression in the consumers' mind of a brand's total personality (real and imaginary qualities and shortcomings).
A firm’s branding strategy—often called the brand architecture—reflects the number and nature of both common and distinctive brand elements. A firm has three main choices: It can develop new brand elements for the new product. It can apply some of its existing brand elements. It can use a combination of new and existing brand elements. Devising a Branding Strategy
 Brand Extension. When a firm uses an established brand to introduce a new product, the product is called a brand extension.When marketers combine a new brand with an existing brand, the brand extension can also be called a sub-brand, such as Hershey Kisses candy, Adobe Acrobat software, Toyota Camry atomobiles.  In a Line Extension, the parent brand covers a new product within a product category it currently serves, such as with new flavors, forms, colors, ingredients, and package sizes. Devising a Branding Strategy
 In a Category Extension, marketers use the parent brand to enter a different product Honda has used its company name to cover such different products as automobiles, motorcycles ,etc  A Brand Line consists of all products—original as well as line and category extensions—sold under a particular brand.  A Brand Mix (or brand assortment) is the set of all brand lines that a particular seller makes. Devising a Branding Strategy
Brand Portfolios  The brand portfolio is the set of all brands and brand lines a particular firm offers for sale in a particular category or market segment.  Advantages ◦ Increasing shelf presence and retailer dependence in the store ◦ Attracting consumers seeking variety ◦ Increasing internal competition within the firm ◦ Yielding economies of scale in advertising, sales, merchandising, and distribution
Brand Positioning  The act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market. The result of positioning is the successful creation of a customer-focused value proposition, a logical reason why the target market should buy the product. Value Proposition A good hot pizza, delivered to your door within 30 minutes of ordering, at a moderate price
Requirements of Positioning Positioning requires that marketers define and communicate similarities and differences between their brand and its competitors. Deciding on a positioning requires: Determining a competitive frame of reference by identifying the target market and relevant competition Identifying the optimal points of parity and points of difference brand associations given that frame of reference, and Creating a brand mantra/slogan to summarize the positioning and essence of the brand
Defining Associations Points-of-difference (PODs) • Attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand • Attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand Points-of-parity (POPs) • Associations that are not necessarily unique to the brand but may be shared with other brands • Associations that are not necessarily unique to the brand but may be shared with other brands
PODs Success Criteria Three criteria determine whether a brand association can truly function as a point-of-difference—desirability, deliverability, and differentiability. •Desirable to consumer. Consumers must see the brand association as personally relevant to them. Consumers must also be given a compelling reason to believe and an understandable rationale for why the brand can deliver the desired benefit.
• Deliverable by the company. The company must have the internal resources and commitment to feasibly and profitably create and maintain the brand association in the minds of consumers.The product design and marketing offering must support the desired association • Differentiating from competitors. Consumers must see the brand association as distinctive and superior to relevant competitors PODs Success Criteria
Forms of POPs • Category points-of-parity are attributes or benefits that consumers view as essential to a legitimate and credible offering within a certain product or service category. • Competitive points-of-parity are associations designed to overcome perceived weaknesses of the brand. A competitive point-of-parity may be required to either • negate competitors’ perceived points-of-difference or • negate a perceived vulnerability of the brand as a
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