Mkt4007 W5

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Mkt4007 W5

  1. 1. Brands, Brand Portfolios and Loyalty MKT4007
  2. 2. What makes a brand a brand? <ul><li>Differentiated from competitors </li></ul><ul><li>Offers some “ added-vale ” </li></ul><ul><li>Consistent integrated communications </li></ul><ul><li>Multi-sensory emotional expression of identity (smell, touch, feel, hear, taste) </li></ul><ul><li>“ Virtual Monopoly” (Oligopoly?) </li></ul>
  3. 3. Main Benefits of Brands <ul><li>Customers: </li></ul><ul><li>Easily identify “trusted” products/services </li></ul><ul><li>Reduces risk of purchases/time spent </li></ul><ul><li>Identifies product associated values </li></ul><ul><li>Brand-owners: </li></ul><ul><li>Possible premium pricing </li></ul><ul><li>Differentiate the products/services </li></ul><ul><li>Enhances loyalty </li></ul><ul><li>Possibility of brand extensions etc. </li></ul>
  4. 4. Choice Brand Brand A Brand B Brand C Brand D Brand E
  5. 5. Product for each market? Target Market A Target Market B Target Market C Target Market D Brand Owner target specific Product target specific Product target specific Product
  6. 6. Brand for each market Owner Brand A Target Market A Brand B Brand C Brand D Target Market B Target Market C Target Market D
  7. 7. Brand for each market Rezidor Radisson SAS Modern Business Park Inn Country Inn Regent Budget Business Family Classic Luxury
  8. 8. Brand Regard & Recognition Brand Recognition Brand Regard Reputation Differentiation Momentum Affinity Krish, et al, 2001
  9. 9. Regard Recognition Low High High Regard Opportunity New or Unfocused Brand Brand Leaders Unrealised Potential
  10. 10. Lifestyle Brands <ul><li>Quicksilver, Apple, Abercombie & Fitch, Zara, Porsche etc </li></ul><ul><li>Segmented by “Lifestyle”-reflection rather than product category </li></ul><ul><li>Often luxury or premium brands </li></ul><ul><li>Many failed attempts, e.g.: McDonalds </li></ul>
  11. 11. Mechanisms used <ul><li>Co-Branding </li></ul><ul><li>Geographical branding </li></ul><ul><li>Ingredient branding </li></ul><ul><li>Support services </li></ul><ul><li>Award symbols </li></ul>
  12. 12. Loyalty <ul><li>Brands promote loyalty (=monopoly in the consumers mind) </li></ul><ul><li>Measured by Guadagni-Little Index or: ρ t : = αρ t − 1 + (1 − α) Xt 0 = Non Loyal Customer 1 = Totally Loyal Customer </li></ul>
  13. 13. GLI= 0 Switcher Shifting Soft Core Loyal GLI= 1 Hard Core Loyal
  14. 14. CRM Model of Brand Loyalty Brand Loyalty <ul><li>Relationship with Brand - Ability to meet needs </li></ul><ul><li>Superiority on what is important </li></ul><ul><li>Opinion about alternatives </li></ul><ul><li>nterest in seeking alternatives </li></ul>Potential - Expected change in category use - Expected change in brand use - Propensity to switch Customers: Dynamic Stable Challenging Reluctant Prospects: Dynamic Stable Challenging Reluctant Customer Lifetime Value Value Simulator Attrition Models/Churn Campbell-Ewald
  15. 15. Relationship Potential Weak Stable Reluctant Dynamic Challenging

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