Criteria for choosing brand elements Memorability ,Meaningfulness, Protectability.

Likability, Transferability, Adaptability,

Memorability: Memorability is a necessary condition for achieving high level of brand awareness. Must choose elements that are memorable Some names, symbols, tugos, and even visual properties are more attention getting and easy to remember. Meaningfulness Brand names could be based on people, places, animals, birds or other things or objects. When choosing a brand name, two important aspects that must be kept in mind are:

A) General information about the nature of the product category. In other words, is the content of the brand element consistent with what consumers would expect to see from a brand in that product category? B) Specific information about particular attributes and benefits of the brands. Does it suggest something about a product ingredient or the type of person who might use the brand. Likability Associations suggested by brand elements are not always related to the product. How much customers would like the brand element is also important. Sometimes, consumers do not examine info in making product decisions, easy to recognize brands will make the job of marketers easier.

Transferability How useful is the brand element for line or category extensions? In general, less specific is the name, the more easily it can be transferred across categories. Amazon- is a river- can sell anything using this name. Toys R us can only sell toys under this brand name.

Adaptability

Brand elements needs to be updated over time. More adaptable and flexible the brand elements, the easier it is to update it. Logos and characters can be given new look or a new design to make them appear modern.

Protectability Choose brand elements that can be legally protected and on international basis. Register them with appropriate legal bodies. Defend trademarks from unauthorized infringments. Name, package or other attribute should not be easy to copy. But light

Choosing Brand Elements to Build Brand Equity

Brand equity is the result of a process which leads to a creation of a unique and distinct brand identity. These brand identifiers are referred to as brand identifiers. Brand identification can be done through various ways; for example, Unique Selling Proposition (USP), Logo, Style, Brand Ambassador, Etc. Brand elements facilitate the process of consumer brain mapping and play a key role in building brand equity. Consumers over period of time are able to identify the brand through brand elements. The idea is to develop brand elements, which can properly communicate about brand and its point of difference from competing brands. There are various factors, which add to a good brand element. Brand element should be such that they can have a great recall power; for example, half eaten apple, it steadily identifies with brand Apple. These sort of logo stays in memory for long time. So the brand element should be such that it can be easily recalled. Another factor is significance and application, is brand element conveying either of this two for consumer? Significance here means that brand element should be suitable for that given product category. Consumer should not be left guessing about brand by looking at the element. Another factor for a good brand element is design and appearance, of course it depends on product category company is operating (industrial product v/s consumer products). For example, Apple products I-pod and Mac, design and appearance are such; anyone would be attracted towards them. Another factor is the application of brand element. For example, Virgin, this brand is applicable to airlines as much as to financial services, on other hand, Toys r us, this brand can only be valid to sell toys, games, etc. In this globalize world it is very important to respect diversity and culture. A word or symbol can have various meanings, for example, Swastika symbol is associated with Nazi's movement but in India symbol means luck. So the choice of word or symbol should not be without research. Another factor is flexibility; an openness to change. This flexibility could be in the form of demographic, society, etc., for example, TV

ads during the super bowl show Asian, African American, Hispanic drinking beer together, even though football is all American game. The reason been American society has a good mix of people from different race and culture but has a strong passion for the game. Ads15 years never showed this kind of mix of different race and culture. The last important factor is intellectual property rights, brand element should have a legal cover from piracy and copiers in which countries they operate. The most elementary part of brand element to achieve brand equity is the brand name. For example, in meeting a stranger, a formal introduction starts with name, so that next time you see person again you greet her by name. Similarly brand name can convey much about brand itself, example, Pepsi-cola or common name Pepsi. Brand name is easy to remember and recall making pronunciation easy for non-English speaker. Brand name could also be suggestive into what brand is offering, for example, Kentucky Fried Chicken. The brand name itself is sufficient in conveying that for fried chicken KFC is the brand. Another elementary part is the brand slogan because it can again convey the whole existence of brand. For example, Wal-Marts slogan is Save Money Live Better; it conveys lot about offering at brand stores. But again as time change slogan also have to evolve. Earlier WalMarts slogan was Always Low Price, but in tough economic times the new slogan is more relevant. Packaging also plays important part as brand element in building brand equity. For example Kelloggs cereals; its packaging as evolved responding to modern needs (healthy diet) to new technologies. It can be easily concluded from above the importance of brand element in creation of brand equity. Various elements like brand name, packaging, slogan symbol individually and collectively play important in creating long lasting impression and relation with consumer.

DESIGNING MARKETING PROGRAMMERS

New Perspectives on Marketing Product Strategy Pricing Strategy Channel Strategy

TO

BUILD BRAND EQUITY

New perspectives to marketing The four major drivers of this new economy are: Digitalization and connectivity (internet, intranet, mobile devices)

Disintermediation and reintermediation (middlemen) Customization and customerization ( tailored products and ingredients provided to customers to make their own products) Industry convergence (blurring of industry boundaries)

Customers:

- Have more power - Have a large variety of available goods and services - Can obtain more information - Can easily interact with marketers in placing and receiving orders - Can interact with other consumers and compare notes

Companies: - Can collect fuller and richer information about markets, customers, competition - Better communication technologies and transaction efficiency - Can use the internet and e-mail to send promotional messages to customers - Can customize their offerings to individual customers

Impact to Integrating marketing programs and activities

Personalizing Marketing Expression of individuality Consumer desire for personalization Experiential marketing One-to-One marketing Permission marketing

Experiential Marketing Experiential marketing connects a product to unique and interesting experiences The idea is not to sell something, but to demonstrate how a brand can enrich a customers life One-to-One Marketing Information Generate experience

Consumers ----------------------------Marketers---------------------------------Consumers

The Fundamental Strategies of One-to-One Marketing: - Focus on individual consumers through consumer databases

- Respond to consumer dialogue via interactivity - Customize products and services Permission Marketing Marketing to consumers only after gaining their express permission 1. Product Strategy

At the heart of a great brand is invariably a great product How do consumers form their opinions of the quality and value of a product? How can marketers use the relationship marketing perspective in formulating product strategy and offerings?

Perceived Quality and Value Dimensions of Quality: Performance: primary characteristics of product (low, medium, high or very high) Features: secondary elements of a product that complement primary characteristics Conformance: degree of the product meet specifications Reliability: consistency of performance over time Durability: expected economic life of product Serviceability: ease of servicing the product Style and design: appearance or feel of quality

Brand Intangibles: speed, accuracy, delivery and installation, courtesy, helpfulness of customer service and training Product or Service Benefit Dimensions: Brand attitude may also depend on more abstract product imagery. ex. Symbolism, personality 3-D Marketing (McKinsey Consulting) emphasizes 3 product benefit dimensions: 1. Functional benefits: product and performance attributes. Ex. quality

2. Process benefits: ease of access to product info., convenient transaction. 3. Relationship benefits: value based on personalized service, strong emotional relevance, differentiated loyalty rewards. By improving the fuller customer experience, companies can keep consumers happier and hold on to them longer

Relationship Marketing Relationship marketing: is based on the premise that current customers are the key to long term success. 3 important relationship marketing issues:

Mass Customization: Customization addresses the need for individuality NIKEiD After marketing: Activities that occur after customer purchase (User Manuals, Complimentary Products) & To achieve the desired brand image, product strategies should focus on both purchase and consumption

Loyalty Programs: Loyalty programs offer different mixtures of services, newsletters, premiums and incentives for a firms best customer, Co-branding arrangements: Discovery Ster-kinekor, Kulula, Pick n Pay. 3. Pricing Strategy Revenue generating element from of the mix Its belongs in the performance CBBE model( Chapter 2 ) Consumers willing to pay price premiums , when there is a perceived added value = Stronger brands Aspects of pricing Strategy : 1. Price perceptions 2. Setting prices Price Perceptions Consumers rank brand according to prices Price Bands = range of acceptable prices price product meaning - value and quality they received

 perception of value received < cost to the company Setting Prices to Build Brand Equity Choosing a pricing strategy to build brand equity means determining the following: Value Pricing The objective of value pricing is to uncover the right blend of product quality, product costs and product prices that satisfies needs and wants of consumers and the profit targets of the firm. Effective value-pricing strategy should strike the proper balance among the following: Product design and delivery Product costs Product prices A method for setting current prices A policy for choosing the depth and duration

Everyday Low Pricing Everyday low price (EDLP) has received increased attention as a means of determining price discounts and promotions over time. Pricing approach - - the nature of price discount and promotions over time that maintains consistently low Be careful!!! Creating a brand association to discount or dont pay full price diminished brand equity

8 steps to better Pricing 1. Asses what value the customer places on your brand 2. Look for variation in assessing customers value 3. Asses customers price sensitivity 4. Identify an optimal pricing structure 5. Consider competitors reactions 6. Monitor prices at a transaction level 7. Asses customer emotional response 8. Analyse if the returns are worth the cost

4. Channel Strategy Marketing channels = a set of interdependent organizations involved in the process of making a product / service available for use This involves designing a channel and managing intermediaries. Channel design : 1. Indirect - sell through third party intermediaries 2. Direct sell through personal contacts Try develop : integrated shopping experiences Channel Strategy Marketing channel are defined as set of interdependent organizations involved in the process of making a product or service available for use or consumption Channel strategy includes the design and management of intermediaries such as wholesalers, brokers, and retailers. Channel Design Direct channel: means selling through personal contacts from the company to prospective customers by mail, phone and etc. Indirect channel: sell through third-party intermediaries such as agents, wholesalers, retailers or dealers. Winning channel strategies integrated shopping experience that combines physical stores, internet, telephone and catalogs.

Example: Nike (sell its shoes, apparel, and equipment product) Retail: Nike products are sold in retail locations such as shoe stores, sporting goods stores, department stores, and clothing stores. Branded Nike Town Stores: Nike Town Stores, located in prime shopping avenues in metropolitan centers. Niketown.com: Nikes e-commerce site allows consumers to place internet orders for a range of products. Catalog retailers: Nikes product appear in numerous shoe, sporting goods, and clothing catalogs. Outlet Stores: outlet stores feature discounted Nike merchandise.

Specialty stores: Nike equipment from product lines such as Nike Golf, Nike Hockey.

Direct channels are preferable when Product information needs are high Product customization is high Product quality assurance is important Product lot size is important Logistics are important

Indirect channels are preferable when A broad assortment is essential Availability is crucial After-sales service is important

Indirect Channel Pull and Push Strategies Channel Support (Marketing Partnership) Retail segmentation Retailers are customers too. Different retailers may need different product mixes, special delivery system, or customized promotions.

Cooperative advertising Co-op advertising: a manufacturers pays for a portion of the advertising that a retailer runs to promote the manufacturers product.

Company-Owned Stores Show the product in the way that the company want Some company stores might lack of skills, or resources

Other means Department stores Via phone, mail, or email

Web Strategies

INDIRECT Broad assortment is essential Availability is critical After sales service is important DIRECT Product info is high Customisation Quality assurance is important Lot size is important Logistics are important

2. Channel support Services provided by channel members may help enhance the value to consumers and the brand. Establish Marketing partnership with retailers is critical to ensure channel support Two channel support strategies are: 1. Retail segmentation segmenting the retailers according to similar characteristics , as different retailers might need different product mixes , special delivery systems ,customised promotions or even their own branded version of the product( Branded variants) 2. Cooperative advertising- manufacturer pays for a portion of the advertising to promote the product and the availability at the retailer. Ideal situation would be to achieve synergy between the manufacturers own ad campaigns and the corresponding co-op ad campaign with the retailer. Must be balance between pushing the brand and advertising the retailer

At core of building brand equity is marketing programs or strategies. Marketing activities can facilitate in increasing brand awareness as well as in creating the right brand image. Marketing activities can be weaved around product, pricing and distribution channel. But the way these marketing activities are carried out has gone under revolutionary change owing to the modern technological driven world. Reason why modern world is different can be understood from consumer as well as companys perspective. Todays consumer is well informed about the product or service she is purchasing, reason been digital connectivity through internet, mobile etc. Product reviews are readily available forums or social networking sites, where in consumer can read

understand experience of other consumers. Consumer have more access to customized products, there are websites which lets you design your own t-shirts or hoodies. Many of consumer purchase decision are made online; internet along with technology has given convenience to consumer. From companies perspective new technology frontiers has improved the way they understand consumer. Companies maintain large database storing consumption behavior; analyze this database to create consumer expectation matching products and services. Marketing tactics can be implemented by emails, forums on social networking sites etc. Internet retailing has created new supply chain model for companies, which is a challenge as well convince, because traditional distributes and agents have made way to courier services. For example products ordered from Dell are design, assembled in companys warehouse and then sent to customers. Traditional marketing activities revolve around product, pricing and channel distribution. However, efforts are always on to make sure marketing activities truly reflect brand image and develop strong brand equity. One the marketing concept developed is called experiential marketing. This unique concept is associated with brands and experience consumer has with it. For example American Express, has been sponsor of US open for years, they have created marketing plan especially for their card holders. The card holders are part of daily draws, where winner are eligible to court side seats among many other freebies. Another marketing technique popular among markets is a form of direct marketing. Brands like Amway and Avon have followed this technique for some time now. In this form of marketing focus is on individual consumer and not a large group, their habits are recorded and on that basis other products are suggested. Flora 2000 is online florist who deliver flowers all around the globe, time to time they send reminders of important events like mothers day or valentine day with special deals to consumer, knowing consumer had previously made purchase around that period. Online retailer Amazon uses another marketing technique where they suggest a product to consumer after getting nod from them. Amazon takes permission from consumer before sending recommendation. This permission marketing enables companies to build unique brand image leading to strong brand equity. Product remains first frontier for consumer to create opinion for brand. Marketing strategy around product is to highlight not only core benefits but also process or easy by which purchase is done there by creating a long term relationship with consumer where periodical information exchange can occur. Pricing is crucial for brand image. To establish price, product cost should not be the only consideration. But consumer perception for potential product value and sensitivity to price is also of equal importance. Competitors price also cannot be ignored because price war will not benefit anyone in the market. An effort has to be made to educate the consumer about cost of serving them, for them to understand price of product. Products are sold either through direct marketing channels or indirect marketing channels. These channels also play an important role in building brand equity. Again channel choice is dependent on product. Industrial product preferred way would be direct channel. But there are various factors like product category, customization, price, complexity which play a role in deciding marketing channel. Marketers have to develop marketing programs keeping in mind above discuss points to build a strong consumer based brand equity.