Professional Documents
Culture Documents
Brand
Brand: derived from the old Norse word brandr which means to burn.
Brand Name
Brand mark
Trademark
Copyright
Symbol, design, color, letters Pillsbury doughboy, MGM Lion, K on Kodak box
Part of the brand given legal protection to brand name or brand mark
Legal right to reproduce, publish and sell the matter and form of a literary musical or artistic work
Brand Introductions and Growth The level of marketing effort supporting brand introduction depends on ...
Product quality Growth rate of the market Firm familiarity with the market
Firms resources
Managers should expect better results in terms of market share in markets where a limited number of brands hold a large share which renders such market more attractive to new brands A new brand should be supported with a larger effort when introduce into a fast growing market than when the market is mature The amount of communication effort used to introduce a brand depends on only one manufacturer characteristic--the availability of resources
High
Involvement in purchase
Low
brands are created because buyers crave information. They see a huge range of products that look the same and seem to perform similar . . . . . . brands offer a route through the confusion. Economist,1994
Summarize a set of facts/specifications that are difficult for the customer to process/access, and expensive to communicate
Differentiate
Image differentiation
Generates confidence in the product attributes, customer benefits, Reason to buy increases credibility & confidence
What does the consumer see as the significance of brand? Who should brand and own the brand?
Salience / strengths of the brand The reputation of the firm & Buyer image
What risks does the consumer see? What information does the consumer needs?
The risk could be high price , product failure, lack of after sales etc. Reputation , past sales, comparative brand price and service etc
Webers law effect on brand awareness and effect of sound brands JND for brand launch and building consumer acceptance
Weber's Law states that the stimulus change needed to reach the differential threshold (produce a just noticeable difference) is a constant proportion of the starting stimulus value for any brand to get noticed
Assume that through testing we found that; 1 ounce (ABSOLUTE STIMULUS = 1) had to be added to a 10-ounce container of liquid soap (STARTING value ~ 10) before consumers detected a change in its weight. This would yield a constant of proportionality of
Awareness level
Sub-optimal stimulus generation
.5 ounce
1 ounce
Stimulus weight
Stimulus gets noticed beyond 10% weight of starting value
Action
Desire Interest
Awareness
Low
Awareness is an Advertising based activity ... however, branding focuses on building Interest and Desire to try the product
Low
Transactional completeness
High
Memory
Top of the mind Unaided recall for the brand Aided recall for the brand
Product class choice criteria (critical product attributes) Beliefs and attitudes about product class Product class selection Brand class selection Brand choice criteria (critical brand attributes) Beliefs and attitudes about brand class
Terminal values
Instrumental values
Brand power
Brands Brands
Names Names
Local / Regional
National
Global
Market presence
Identity
Image
- The senders duty is to specify the meaning, intention and vocation of the brand.
- The image refers to the manner in which the public decodes all the signals emitted by the brand through its products, services and communication program
- It is a reception concept.
Sending
Media
Receiving
Brand Identity
Signals Transmitted
Brand Image
Brand Types
Generic product
item characterized by plain label, with no clear differentiation e.g. Xerox, Bisleri
Manufacturers brand
Private brand
brand name placed on products marketed by wholesalers & retailers e.g. Stop garments from Shoppers Stop
Family brand
brand name that identifies several related products e.g. Kissan Anapurna atta , jams , biscuits etc.. (Food category) unique brand name that identifies a specific offering within a firms product line and that is not grouped under a family brand e.g. Dove soap from HLL
Individual brand
Brand insistence stage of brand where the customer refuses to accept any other brand except the preferred brand
Brand preference stage of brand acceptance at which the consumer selects one brand over competing offerings based on previous experiences with that brand
Market universe
(All potential buyers of the product
Target buyers
(Buyers who (Buyers who start preferring start preferring a brand) a brand)
Brand recognition
Brand champions
Brand recognition stage of brand acceptance at which the consumer knows of a brand but does not prefer it to competing brands
Committed
Beliefs Trials
Attitudes
Expectations
Awareness
Unawareness
A Brand seeking to improve market position needs to rely heavily on customer retention efforts while increasing share of users.
If only a smaller fraction of customers attracted are retained as loyal customers, allocation efforts are likely to be more even between attraction and retention efforts
For Brands with smaller user shares the retained fraction of new customers has to be higher, which necessitates more marketing effort in retention
Research show that large market share business have lower advertising to sales ratio. It also implies that as number of brands increases, loyalty levels decline sharply at first and then begin to level off
Brand deserter
Brand champion
Target buyer
Does not buy the brand
Non Trier
Brand apostle
Brand Equity
Brand Equity is a set of assets (& liabilities) linked to the brand name & symbol that adds to Brand Equity is a set of assets (& liabilities) linked to the brand name & symbol that adds to (or subtracts from) the value provided by a product (or subtracts from) the value provided by a product
Brand Equity is a set of assets, Brand Equity is a set of assets, thus management of thus management of brand equity involves investment brand equity involves investment to create and enlarge these assets to create and enlarge these assets
Brand Equity adds value to the Brand Equity adds value to the consumer and the firm consumer and the firm
ConsumerBrand Resonance
Consumer Judgement
Consumer Feelings
Brand Performance
Brand Imagery
2 Points of Difference
Brand Salience
Resonance
Loyalty Attachment Community Engagement Warmth, Fun Excitement, Security, Social Approval, Self-Respect
Judgement
Feelings
3 Brand Response (WHAT About You?)
Performance
Brand Characteristics & Secondary Features Product Reliability, Durability & Serviceability Service Effectiveness, Efficiency & Empathy Style and Design; Price
User Profiles Purchase and Usage Situations Personality & Values History, Heritage, & Experiences
Imagery
2 Brand Meaning (WHAT Are You?)
Salience
How distinctive is the brand is in the market place? Is it meaningful to him or her ? Is it personally appropriate ? Is the brand held in high regard and considered the best in its class? Does the customer understand as to what a brand stands for?
Internal
makes me feel pampered
Origin
European / Japanese
External
en ef
tells others that I am successful
Reputation
Design and performance
In ib ng ta
its
Evolution
Will become the leader in highperformance machines
le
na l
Perceived value
very expensive, but worth it
A o ss
ot io
at ci
Em
ns io
Brand benefits
R io at l na n be
Brand identity
nc e
Pr es e
Process
Relationship
Has related affinity programs I like (Mercedes Clubs)
it s ef
Presentation
has distinct logo incorporated into select design elements (e.g.Wheels of the car)
The three variables in the brand anatomy (Young and Rubicam model)
>> Relevance comes next. Unless a brand is relevant to a significant segment, it will not attract a large customer base.
>> Knowledge indicates that the customer not only is aware of the brand but also understands what the brand stands for.
>> Conversely a brand may have high knowledge but low esteem.This means that more people know what the brand stands for, but relatively few hold it in high regard.
Swatch watches
Disney Sony
Starbucks coffee
Bayer Oldsmobile
500 brands were evaluated under these criteria and rated for maximum value under these criteria . . .
Leadership: A brand that leads its market sector is more stable and powerful than the second, third, & the fourth place brands
Stability: Long lived brands with identities that have become part of fabric of the market and even the culture are particularly powerful and valuable
Market : Brands are more valuable when they are in markets with growing or stable sales levels and a price structure in which successful firms can be profitable
International : Brands that are international are more valuable than national or regional brands, in part because of economies of scale
Trend : The overall long-term trend of the brand in terms of sales can be expected to reflect future prospects Support : Brands that have received consistent investment and focused support are regarded as stronger than those who have not
Protection : The strength and breadth of a brands legal trademark protection is critical to the brands strength.
Aakers Brand equity is based on understanding of the following critical areas ...
Price Premium The amount a customer will pay for the brand in comparison with another brand offering similar or fewer benefits. >> The price premium can be determined by simply asking customers how much more they would be willing to pay for the brand (This is called Dollar Metric)
Perceived Quality
Perceived Quality directly affects both Satisfaction (or liking) is a direct measure of how willing customers are to stick to a brand. ROI and Stock Return. >> Perceived Quality can be measured with scales such as following.
a ) High quality v/s Shoddy quality. b ) Best in category v/s Worst in category. c ) Consistent quality v/s Inconsistent Quality
Aakers Brand equity is based on understanding of the following critical areas ...
People want to be apart of the bandwagon and are uneasy against the flow A brand can move head technologically LG leader in Plasma TV
Aakers Brand equity is based on understanding of the following critical areas ...
Perceived value Perceived value is mentioned along the following dimensions ... Whether the brand proves good value for the money
No Yes
Winner brands
Loser brands
Aakers Brand equity is based on understanding of the following critical areas ...
Brand Personality
Brand Personality provides links to the brands emotional and self expressive benefits as well as a basis for brand-customer relationship and differentiation
I would be proud (or pleased) to do business with the brand TATAs as an organization
Aakers Brand equity is based on understanding of the following critical areas ...
Brand Awareness
Awareness reflects the presence of the brand in the mind of Customers
Recognition: Have you heard of the Buick Roadmaster. Recall: What brands of car can you recall ? Graveyard statistics: recall level of those who recognize the brand. How much do you recall? Fully or Partially. Top-of-Mind : the first named brand in a recall task. Brand dominance : the only brand recalled . Brand Familiarity : the brand is familiar . Brand knowledge or salience: you have an opinion about the brand .
Aakers Brand equity is based on understanding of the following critical areas ...
Market Share
Market share
Major brands in the category who have large equities usually tend to have large market shares
Brand Equity
Market Price And Distribution Coverage: Market share can be a particularly deceptive brand equity measure when it increases as a result of reduced prices or price promotions. Thus it is important to measure the relative market price at which the brand is being sold.
Brand Extensions
Products
Existing New
Existing
Brand Extensions
Brands
New
Multi brands
Single brands
The portfolio can leverage itself if it can extend the brand to other categories
Knorr is staple product from HLL It is a mother brand in the category that covers Atta, Soup etc..
Brand Extensions
Tatas leveraging their corporate brand equity in Chemicals, Salt, Cars etc..
Brand extensions represent an opportunity for firms to use the equity built up in the names of existing brands in order to enhance marketing productivity
Brand extensions can affect the brand and its equity in one of the three different ways: Certain brands exploit the brand capital. The product sells thanks to the brands contribution. This is the case when the concerned product scarcely differs from existing market competition. Certain extensions destroy the brands equity. If the new product introduced under an existing brand has no relationship with the core values of parent brand then the brand equity can get eroded. Certain extensions have a neutral effect. Here the brand simply falls in line with what is expected of the brand.
The affect associated with the parent brand is transferred to the brand extension only when The affect associated with the parent brand is transferred to the brand extension only when there is a fit between the parent and the extension categories. there is a fit between the parent and the extension categories.
Fit serves as a signal or cue that the consumers use to make inferences about a new product. Fit serves as a signal or cue that the consumers use to make inferences about a new product.
Attitude (Consumer opinion)towards the extension was higher when there was a fit between the Attitude (Consumer opinion)towards the extension was higher when there was a fit between the extension and the parent product classes along one of the dimensions extension and the parent product classes along one of the dimensions Transfer // Complementary products. Transfer Complementary products.
Brand has a positive impact on the success of an extension if the extension is in a similar Brand has a positive impact on the success of an extension if the extension is in a similar product category. product category. Extension evaluation was enhanced only when there was brand concept consistency and product feature similarity between extension and parent categories.
There are several factors that can affect the brand extensions timing of entry decision. Two reasons for brand extensions to enter late are 4the high-product failure rates in young markets will subject an extensions parent brand to risk, and 4extensions may have positioning difficulties in young markets. Two reasons for brand extensions to extend early are 4the possibility of gaining early mover advantages, and 4the extensions known brand name may reduce the new products chance of failing. The results indicate that early-entering brand extensions do not perform as well on average as either early-entering new-name products or late-entering brand extensions.
This conclusion is based on four findings. 1) the brand extensions were introduced later on average than the new-name products. 2) the early brand extensions had a lower probability of surviving than either the early-entering new-name products or late-entering brand extensions. 3) the brand extensions earned higher market shares on average than the new-name products, 4) the extensions obtained smaller market share from entering early than did new-name products.
Extensions are successful and unsuccessful in all categories Related (High Fit)
Brand extensions
Average brand
The use of established brand names to enter new product categories or classes can substantially reduce introductory marketing expenses and enhance the prospects of success by helping gain retailer and customer acceptance.
Findings: Findings: High quality brands stretch farther than average quality brands. High quality brands stretch farther than average quality brands. Successful intervening extensions improved evaluations of a proposed extension for an average quality Successful intervening extensions improved evaluations of a proposed extension for an average quality core brand: core brand: Unsuccessful intervening extensions decreased evaluations of a proposed extension for a high quality Unsuccessful intervening extensions decreased evaluations of a proposed extension for a high quality core brand. core brand. A successful intervening extension increased evaluations of an average quality core brand, but an A successful intervening extension increased evaluations of an average quality core brand, but an unsuccessful intervening extension did not affect evaluation of the core brand. unsuccessful intervening extension did not affect evaluation of the core brand.
Findings Findings Perceived company credibility and fit appear to mediate the effects of intervening extensions on Perceived company credibility and fit appear to mediate the effects of intervening extensions on evaluations of a proposed extension. evaluations of a proposed extension. The relative similarity of intervening extensions had little differential impact on evaluations of a The relative similarity of intervening extensions had little differential impact on evaluations of a proposed extension. proposed extension. Multiple intervening extensions can have different effects than a single intervening extension. Multiple intervening extensions can have different effects than a single intervening extension. Intervening extensions of mixed success have effects more like those of a single failed intervening Intervening extensions of mixed success have effects more like those of a single failed intervening extension than those of a single successful intervening extension. extension than those of a single successful intervening extension. An unsuccessful extension does not prevent the firm from backtracking. An unsuccessful extension does not prevent the firm from backtracking.
Brand Positioning applies to a process of emphasizing the brands distinctive and motivating attributes in the light of competition. It refers to what product segment does the brand belong and what is its specific difference. It is based on an analysis of response to the following 4 questions
Why?
For Whom?
When?
Against Whom?
1) Why or for what? What is the specific consumer benefit or exclusive motivating attribute justifying the brand. e.g. Sony - Innovation 2) For Whom? This indicates a target. e.g.- 7 Up- Teenagers, Canada DryAdults 3)When? Indicates the occasion on which to use the product. gift. 4) Opposed to Whom? Points to the main competition, those brands from one whom the one aspires to capture the clientele. e.g.- Pepsi Challenge and the Uncola campaign- 7Up e.g. Titan as
High
Find a defensible niche and decrease advertising for the brand Increase advertising and defend position for brand
Low
Low
High