SlideShare a Scribd company logo
1 of 10
WHY BRANDING
IS IMPORTANT
And how to
take it to the
next level
WHY WE SHOULD LOVE
BRANDING
Branding forces management
to articulate, plan and manage
what they want the brand to
achieve for the organization
over the next 3-5 years, relative
to customer growth, revenue
and profit contributions.
(1 reason)
Brand Consumers
Company
Information
& input
Innovation
& execution
Value &
relation-
ship
Profits
WHY WE SHOULD LOVE
BRANDING
(the other, more
important, reason)
“Heuristics”
iPodvs.Zune
Maybank vs. CIMB
Toyotavs.Honda
RAM vs. processor speed
Firefoxvs.Safari
AirAsiavs.MAS
Bangsar vs. Damansara Heights
PAS vs. BN
Digital vs. traditional
Football vs. futsball
Bold vs. italic
Starbucks vs. Coffee Bean
Sales vs. profitability
Small wedding vs. exotic
honeymoon
Web 1.0 vs. Web
2.0
“Buyers make most decisions by relying on
their two-second first impressions based on
stored memories, images and feelings.”
Blink: The Power of Thinking Without Thinking
By Malcolm Gladwell
“Because brand-influenced heuristics impact
buyer decision-making, companies with strong
brands often have better financial perform-
ance. The heuristics used by potential buyers
lead to greater access, shorter sales cycles,
lower price sensitivity, better openness, and
more forgiveness for mistakes for well-branded
companies.”
Business Market Management: Understanding,
Creating, and Delivering Value
By James Anderson and James Narus
R
U
L
E
S
Baby
EMOTIONSome
Japanese
women
put off
having a
baby until
they can
buy a
Louis
Vuitton
handbag
SALE!
B = T + V + E
SALE!
1. Price is the only way to differentiate
from competition
2. During last phase of product cycle
3. New product is being introduced
SALE!
1. Price is the only way to differentiate
from competition
2. During last phase of product cycle
3. New product is being introduced

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Why Branding is Important - 2E

  • 1. WHY BRANDING IS IMPORTANT And how to take it to the next level
  • 2. WHY WE SHOULD LOVE BRANDING Branding forces management to articulate, plan and manage what they want the brand to achieve for the organization over the next 3-5 years, relative to customer growth, revenue and profit contributions. (1 reason)
  • 3. Brand Consumers Company Information & input Innovation & execution Value & relation- ship Profits
  • 4. WHY WE SHOULD LOVE BRANDING (the other, more important, reason) “Heuristics”
  • 5. iPodvs.Zune Maybank vs. CIMB Toyotavs.Honda RAM vs. processor speed Firefoxvs.Safari AirAsiavs.MAS Bangsar vs. Damansara Heights PAS vs. BN Digital vs. traditional Football vs. futsball Bold vs. italic Starbucks vs. Coffee Bean Sales vs. profitability Small wedding vs. exotic honeymoon Web 1.0 vs. Web 2.0
  • 6. “Buyers make most decisions by relying on their two-second first impressions based on stored memories, images and feelings.” Blink: The Power of Thinking Without Thinking By Malcolm Gladwell “Because brand-influenced heuristics impact buyer decision-making, companies with strong brands often have better financial perform- ance. The heuristics used by potential buyers lead to greater access, shorter sales cycles, lower price sensitivity, better openness, and more forgiveness for mistakes for well-branded companies.” Business Market Management: Understanding, Creating, and Delivering Value By James Anderson and James Narus R U L E S
  • 7. Baby EMOTIONSome Japanese women put off having a baby until they can buy a Louis Vuitton handbag
  • 8. SALE! B = T + V + E
  • 9. SALE! 1. Price is the only way to differentiate from competition 2. During last phase of product cycle 3. New product is being introduced
  • 10. SALE! 1. Price is the only way to differentiate from competition 2. During last phase of product cycle 3. New product is being introduced