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Session 1
Branding & its impact upon
marketing decisions
Branding
• Name
• “Personality”
• Design, color, typography, quality
• Identity as the customer sees it
• Identity/something to associate with Source of competitive
advantage as a differentiator
A successful brand is an identifiable product, service, person or place,
augmented in such a way that the buyer or user perceives relevant,
unique, sustainable added values, which match their needs most
closely (De Chernatony and Mc Donald, 1998)
Beamish & Ashford, 2007
Typography
Measures of Brand equity
• Recognition: being known
• Reputation: being known for something
• Relevance: being known for something
which is relevant
• Relationship: depth of loyalty and
involvement
Net Promoter Score (NPS)
-It assesses to what degree someone would
recommend a certain company, product or service to
his friends, relatives or colleagues using a score of 0-10
-The customers can be divided according to this score
into 3 categories
• Promoters(rating 9-10) they will recommend
• Passive (rating 7-8) satisfied but unenthusiastic
• Detractors (rating 0-6) unwilling to recommend
Brand Perspective
Logo
Legal instrument
Company
Risk reducer
Positioning
Personality
Cluster of values
Vision
Value added
Identity
Image
Relationship
Evolving Entity
input
output
time
Beamish & Ashford, 2007
Brand Perspective
Logo
Legal instrument
Company
Risk reducer
Positioning
Personality
Cluster of values
Vision
Value added
Identity
Image
Relationship
Evolving Entity
input output
time
Beamish & Ashford, 2007
Characteristics of a Good Brand Name
• Short and simple
• Suggestive of product benefits
• Legally available
• Timeless rather than timely
• No negative imagery
• Easy to spell, read, and
pronounce
• Adaptable for international
markets
• Adaptable to
packaging/labeling needs
• Adaptable to any advertising
medium
A Good
Brand Name
Is...
Fantasie :
German Name of
Imagination
Korean Name of
Modernity
People’s Car in
German
All Day I Dream About
Sports XXXX
Adolf (Adi) Dassler.
Pro Vitamin of Vit B5
Panthenol
Niveus : Latin name of
Snow white ( Purity)
Branding
• Regarding the rivalry between Pepsi and Coca-
Cola and in blind taste tests most people prefer
the flavor of Pepsi but Coca-Cola outsells Pepsi in
every market
• This apparent discrepancy can only be explained
by the brand image which Coca-Cola has
Brand Loyalty
• Re-purchase is 5-8 less expensive to companies than new purchases.
• Stability of MS
• Price premiums
• Stimulus: Image advertising/ personalized marketing/ membership clubs
(loyalty cards)
• Degrees of loyalty:
1. Brand recognition
2. Brand preference
3. Brand insistence
Extent of the faithfulness of consumers to a particular brand, expressed through their repeat
purchases, irrespective of the marketing pressure generated by the competing brands
(BusinessDictionary.com)
Dibb, Simkin, Pride & Ferrell, 2001
Percentage of users of selected
products who are loyal!
71
61 58 56
47 46 44
36
33
27
0
10
20
30
40
50
60
70
80
C
i
g
a
r
e
t
t
e
s
T
o
o
t
h
p
a
s
t
e
C
o
f
f
e
e
p
a
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k
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l
l
e
r
C
a
r
P
e
r
f
u
m
e
S
o
f
t
d
r
i
n
k
U
n
d
e
r
w
e
a
r
B
l
u
e
j
e
a
n
s
A
t
h
e
l
e
t
i
c
s
h
o
e
s
Percent
Loyal
Dibb, Simkin, Pride & Ferrell, 2001
Customer Loyalty Ladder
Prospect
Customer
Client
Supporter
Advocate
Customer
catching
Customer
retention
• Brand Asset Evaluator (BAV) compares brand equity of thousands of brands
across hundreds of categories and these are its four pillars (Derek)
One comparative measure of brand equity is the
BAV
D
ifferentiation
E
nergy
E
steem
K
nowledge
R
elevance
Brand Equity
9-32
Interbrands classification 2014
Brand Equity
Dibb, Simkin, Pride & Ferrell, 2001
The marketing and financial value associated with a brand’s strength
in the market (Dibb et al, 2001)
Brand
Equity
Brand
Associations
Perceived
Brand Quality
Brand
Loyalty
Brand
Name Awareness
Brand Threats
• Competition
• Brand names
• Copyright
Beamish & Ashford, 2007
What is in common of those two brands in Egypt?
Managing a brand
• To create a successful brand companies must:
– Make quality a priority
– Offer superior service
– Get there first
– Differentiate its brand
– Develop a unique positioning concept
– Support the brand
– Deliver consistently
Beamish & Ashford, 2007
Brand personality
Advantages:
• Increases loyalty
• Can charge HIGHER PRICES
• Successful brand names CAN link
to product (e.g. a “Hoover”)
• Can Launch complimentary
products in same brand name –
e.g. shampoo; conditioner;
hairspray.
Drawbacks:
• Cost of developing and
establishing it
• Can be copied/ near copied
• Could get a bad name as well
as a good one if quality is not
kept up
Pros and Cons of Branding:
Brand strategy
Line Extension
Dannon Yogurt Flavors
Multi-brands
Arial & Tide
Brand Extension
Honda
New Brands
Pledge –Glade –Raid
Brand
Name
Existing New
Product Category
Existing
New
Four Brand Strategies
JOHNSON
Brand Strategy
• Line Extension
– Existing brand names extended to new forms, sizes, and flavors of
an existing product category.
• Brand Extension
– Existing brand names extended to new or modified product
categories.
• Multibrands
– New brand names introduced in the same product category.
• New Brands
– New brand names in new product categories.
Branding Equity for marketing management.pdf
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Branding Equity for marketing management.pdf

  • 1. Session 1 Branding & its impact upon marketing decisions
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9. Branding • Name • “Personality” • Design, color, typography, quality • Identity as the customer sees it • Identity/something to associate with Source of competitive advantage as a differentiator A successful brand is an identifiable product, service, person or place, augmented in such a way that the buyer or user perceives relevant, unique, sustainable added values, which match their needs most closely (De Chernatony and Mc Donald, 1998) Beamish & Ashford, 2007
  • 10.
  • 12.
  • 13.
  • 14.
  • 15. Measures of Brand equity • Recognition: being known • Reputation: being known for something • Relevance: being known for something which is relevant • Relationship: depth of loyalty and involvement
  • 16. Net Promoter Score (NPS) -It assesses to what degree someone would recommend a certain company, product or service to his friends, relatives or colleagues using a score of 0-10 -The customers can be divided according to this score into 3 categories • Promoters(rating 9-10) they will recommend • Passive (rating 7-8) satisfied but unenthusiastic • Detractors (rating 0-6) unwilling to recommend
  • 17. Brand Perspective Logo Legal instrument Company Risk reducer Positioning Personality Cluster of values Vision Value added Identity Image Relationship Evolving Entity input output time Beamish & Ashford, 2007
  • 18. Brand Perspective Logo Legal instrument Company Risk reducer Positioning Personality Cluster of values Vision Value added Identity Image Relationship Evolving Entity input output time Beamish & Ashford, 2007
  • 19.
  • 20. Characteristics of a Good Brand Name • Short and simple • Suggestive of product benefits • Legally available • Timeless rather than timely • No negative imagery • Easy to spell, read, and pronounce • Adaptable for international markets • Adaptable to packaging/labeling needs • Adaptable to any advertising medium A Good Brand Name Is...
  • 21.
  • 22.
  • 23.
  • 24. Fantasie : German Name of Imagination Korean Name of Modernity People’s Car in German All Day I Dream About Sports XXXX Adolf (Adi) Dassler. Pro Vitamin of Vit B5 Panthenol Niveus : Latin name of Snow white ( Purity)
  • 25. Branding • Regarding the rivalry between Pepsi and Coca- Cola and in blind taste tests most people prefer the flavor of Pepsi but Coca-Cola outsells Pepsi in every market • This apparent discrepancy can only be explained by the brand image which Coca-Cola has
  • 26. Brand Loyalty • Re-purchase is 5-8 less expensive to companies than new purchases. • Stability of MS • Price premiums • Stimulus: Image advertising/ personalized marketing/ membership clubs (loyalty cards) • Degrees of loyalty: 1. Brand recognition 2. Brand preference 3. Brand insistence Extent of the faithfulness of consumers to a particular brand, expressed through their repeat purchases, irrespective of the marketing pressure generated by the competing brands (BusinessDictionary.com) Dibb, Simkin, Pride & Ferrell, 2001
  • 27.
  • 28. Percentage of users of selected products who are loyal! 71 61 58 56 47 46 44 36 33 27 0 10 20 30 40 50 60 70 80 C i g a r e t t e s T o o t h p a s t e C o f f e e p a i n k i l l e r C a r P e r f u m e S o f t d r i n k U n d e r w e a r B l u e j e a n s A t h e l e t i c s h o e s Percent Loyal Dibb, Simkin, Pride & Ferrell, 2001
  • 29.
  • 31. • Brand Asset Evaluator (BAV) compares brand equity of thousands of brands across hundreds of categories and these are its four pillars (Derek) One comparative measure of brand equity is the BAV D ifferentiation E nergy E steem K nowledge R elevance Brand Equity
  • 32. 9-32
  • 33.
  • 35.
  • 36.
  • 37. Brand Equity Dibb, Simkin, Pride & Ferrell, 2001 The marketing and financial value associated with a brand’s strength in the market (Dibb et al, 2001) Brand Equity Brand Associations Perceived Brand Quality Brand Loyalty Brand Name Awareness
  • 38.
  • 39. Brand Threats • Competition • Brand names • Copyright Beamish & Ashford, 2007 What is in common of those two brands in Egypt?
  • 40. Managing a brand • To create a successful brand companies must: – Make quality a priority – Offer superior service – Get there first – Differentiate its brand – Develop a unique positioning concept – Support the brand – Deliver consistently Beamish & Ashford, 2007
  • 42. Advantages: • Increases loyalty • Can charge HIGHER PRICES • Successful brand names CAN link to product (e.g. a “Hoover”) • Can Launch complimentary products in same brand name – e.g. shampoo; conditioner; hairspray. Drawbacks: • Cost of developing and establishing it • Can be copied/ near copied • Could get a bad name as well as a good one if quality is not kept up Pros and Cons of Branding:
  • 44. Line Extension Dannon Yogurt Flavors Multi-brands Arial & Tide Brand Extension Honda New Brands Pledge –Glade –Raid Brand Name Existing New Product Category Existing New Four Brand Strategies JOHNSON
  • 45. Brand Strategy • Line Extension – Existing brand names extended to new forms, sizes, and flavors of an existing product category. • Brand Extension – Existing brand names extended to new or modified product categories. • Multibrands – New brand names introduced in the same product category. • New Brands – New brand names in new product categories.