Professional Documents
Culture Documents
Core Text:
Kevin Lane Keller (2nd Edition) Presented by: PROF. HIMMAT ADISARE
What is a Brand?
Definition: A brand is a product that adds other dimensions that differentiates it in some way from other products designed to satisfy the same need.
Ref: Chapter 1 of Core Text
Search cost Reducer Promise, Bond, or Pact with Maker of Product Symbolic Device Signal of Quality
MANUFACTURERS: Means of Identification to Simplify Handling or Tracing Means of Legally Protecting Unique Features Signal of Quality Level to Satisfied Customers
Means of Endowing Products with Unique Associations Source of Competitive Advantage Source of Financial Returns
Goods
People
and Organizations Sports, Art and Entertainment Geographic Locations Ideas and Causes
Customers Brand Proliferation Media Fragmentation Increased Competition Increased Costs Greater Accountability
Ref: Chapter 1 of Core Text
and Establishing Brand Positioning and Values Planning and Implementing Brand Marketing Programs Measuring and Interpreting Brand Performance Growing and Sustaining Brand Equity
Ref: Chapter 1 of Core Text
CHAPTER 2
Brand Image Strength of Brand Associations Favorability of Brand Associations Uniqueness of Brand Associations
1. 2. 3. 4.
Identity (Who are you?) Meaning (What are you?) Response (What about you?) Relationship (What about you & me?)
Brand Salience: This relates to aspects of awareness of the brand Brand Performance: This relates to ways in which product/ service meets customers needs Brand Imagery: Its how customers visualize a brand abstractly, with no relevance to what the brand actually does
Brand Judgments: The customers personal opinions and evaluations with regard to the brand Brand Feelings: The customers emotional responses and reactions with respect to the brand Brand Resonance: The ultimate relationship & level of identification that the customer has with the brand
CHAPTER 3
Concepts Target Market Nature of Competition Points of Parity and Points of Difference
Ref: Chapter 3 of Core Text
Concepts: According to the CBBE model, it is necessary to decide:1. Who the target consumer is 2. Who the main competitors are 3. How the brand is similar to these competitors, and 4. How the brand is different from these competitors
Market: Segmentation Bases: a) Behavioral b) Demographic c) Psychographic d) Geographic Segmentation Criteria: a) Identifiability b) Size c) Accessibility d) Responsiveness
Ref: Chapter 3 of Core Text
of Competition: Channels of Distribution Competitors Resources Competitors Capabilities Competitors Likely Intentions Other Competitive Factors (Porters 5Force Model refers)
Ref to Chapter 3 of Core Text
of Parity and Points of Difference: 1. Points of Difference Associations 2. Points of Parity Associations 3. Points of Parity versus Points of Difference
Ref: Chapter 3 of Core Text
Positioning Guidelines
1.
Defining and Communicating the Competitive Frame of Reference 2. Choosing Points of Parity and Points of Difference 3. Establishing Points of Parity and Points of Difference 4. Updating Positioning Over Time
Ref: Chapter 3 of Core Text
Choosing Points of Parity and Points of Difference: Points of Parity: These are driven by the needs of category membership and the necessity of negating competitors PODs. Points of Difference: These are based on the following criteria: 1. Desirability: In terms of a) Relevance b) Distinctiveness, and c) Believablity 2. Deliverability: In terms of a) Feasibility b) Communicability, and c) Sustainability
Positioning Over Time: 1. Laddering: This strategy is to deepen the meaning of the brand to tap into core brand values or other more abstract considerations. 2. Reacting: This could imply no reaction to moderate or significant reactions depending on level of competitive threat.
Ref: Chapter 3 of Core Text
CHAPTER 4
Brand Names 2. URLs (Uniform Resource Locators) 3. Logos and Symbols 4. Characters 5. Slogans 6. Jingles 7. Packaging
Ref: Chapter 4 of Core Text
CHAPTER 5
Five Major Drivers of the New Economy: Philip Kotler identifies them as under: 1. Digitalization and connectivity 2. Disintermediation and Reintermediation 3. Customization and Customerization 4. Industry Convergence 5. New Customer and Company Capabilities (Remaining topic is for Self-study)
Ref: Chapter 5 of Core Text
Product Strategy
Perceived Quality and Value: 1. Brand Intangibles 2. TQM and Return on Quality 3. Value Chain Relationship Marketing: 1. Mass Customization 2. Aftermarketing 3. Loyalty Programs
Pricing Strategy
Consumer Price Perceptions: Price Band strategies Value-based Pricing Strategies Setting Prices to Build Brand Equity: Value Pricing based on: a) Product design and delivery b) Product costs, and c) Product prices Everyday Low Pricing (EDLP): A strategy based on low pricing as well as discounts and promotions to consumers at regular intervals.
Channel Strategy
Channel Design: Broadly, channel types can be classified into Direct and Indirect channels. Direct Channels: a) Company-owned stores b) Leased/Rented shopping-space in larger department stores. Indirect Channels: a) Distributors and Dealers b) Retailers c) other middlemen Web Strategies: Today, these are extremely powerful channels if supported by efficient physical brick & mortar channels.
CHAPTER 7
Creation of New Brand Associations: By making a connection between the brand and another entity, consumers may form a mental association from the brand to this entity and, consequently, to any or all associations, judgments, feelings and the like linked to that entity Effects on Existing Brand Knowledge: Three factors are important in predicting the extent of leverage resulting from linking the brand to another entity: i) Awareness and knowledge of the entity ii) Meaningfulness of the knowledge of the entity, and iii) Transferability of the knowledge of the entity
Company
The branding strategies adopted by a company that makes a product or offers a service are an important determinant of the strength of association from the brand to the company and any other existing brands. Three main branding options exist for a new brand: 1. Create a new brand 2. Adapt or modify an existing brand 3. Combine an existing and new brand
Country of Origin
Besides the company that makes the product, the country or geographic location from which it is seen as originating may also become linked to the brand and generate secondary associations. Thus, a customer may choose to wear Italian suits, exercise in American sports shoes, drive a German car, and drink English beer.
Ref: Chapter 7 of Core Text
Channels of Distribution
Channels of distribution can directly affect the equity of the brands they sell by the supporting actions that they take. Retail stores can indirectly affect the brand equity of the products they sell by influencing the nature of associations that are inferred about these products on the basis of the associations linked to the retail stores in the minds of consumers.
Ref: Chapter 7 of Core Text
Co-Branding
Co-branding: Also called brand bundling or brand alliances-occurs when two or more existing brands are combined into a joint product or are marketed together in some fashion. Ingredient branding: This is a special case of cobranding that involves creating brand equity for materials, components, or parts that are necessarily contained within other branded products.
Licensing
Licensing involves contractual arrangements whereby firms can use the names, logos, characters, and so forth of other brands to market their own brands for some fixed fee. Because it can be a shortcut means of building brand equity, licensing has gained popularity in recent years.
Ref: Chapter 7 of Core Text
Using well-known and admired people to promote products is a widespread phenomenon with a long marketing history. The rationale behind these strategies is that a famous person can: 1. Draw attention to a brand, and 2. Shape the perceptions of the brand by virtue of the inferences that consumers make based on the knowledge they have about the famous person.
Potential Problems: 1. Celebrity endorsers can be overused by endorsing so many products that they lack any specific product meaning or are just seen as overly opportunistic or insincere. 2. There must be a reasonable match between the celebrity and the product. 3. Celebrity endorsers can lose popularity thus diminishing their market value to the brand. 4. Many consumers feel that celebrities are doing the endorsement only for money.
even trustworthy by becoming linked to an event. 2. Sponsored events can contribute to brand equity by becoming associated to the brand and improving brand awareness, adding new associations, or improving the strength, favorability, and uniqueness of associations.
Ref: Chapter 7 of Core Text
CHAPTER 8
Stages:
Customer Mindset: Five dimensions have emerged from research as important measures of the customer mindset: 1. Brand Awareness 2. Brand Associations 3. Brand Attitudes 4. Brand Attachment 5. Brand Activity Customer Multiplier: Three essential factors are: 1. Competitive Superiority 2. Channel and other intermediary support 3. Customer size and profile
Stakeholder Value: Based on all available and forecasted information about a brand and many other considerations, the financial marketplace then formulates opinions and makes various assessments that have direct financial implications for the brand value. Three important indicators are: 1. Stock price 2. Price/earnings multiple, and 3. Overall market capitalization of the firm
Implications: 1. A necessary condition for value creation is a well-funded, well-designed, and well-implemented marketing program. 2. Value creation involves more than just the initial marketing investment. 3. Each of the three multipliers can increase or decrease market value from stage to stage. 4. The brand value chain provides a detailed roadmap for tracking value creation enabling market research and intelligence efforts.
What to Track: Three distinct surveys can be conducted for: 1. Product-Brand Tracking: The six-block pyramid for brand-building can be used as a basis for design of the questionnaire. 2. Corporate or Family Brand Tracking: Some additional questions may be added to establish levels of corporate credibility and corporate brand associations. 3. Global Tracking: A broader set of background measures are needed to put brand development in those markets in the right perspective .
How to Interpret Tracking Studies: For tracking measures to facilitate actionable insights and recommendations, they must be reliable and sensitive as possible. This may require framing of questions in a comparative or temporal manner. It is also necessary to decide on appropriate cutoffs. For example: What is a sufficiently high level of brand awareness? When are brand associations sufficiently strong, favorable, and unique? How positive should brand judgments and feelings be? What are reasonable expectations for the amount of brand resonance?
Brand Equity Charter Brand Equity Report Brand Equity Responsibilities: 1. Overseeing Brand Equity 2. Organizational Design and Structure 3. Managing Marketing Partners
Equity Report: Important market information that should be included: 1. Product shipments and movement through channels of distribution. 2. Relevant cost breakdowns 3. Price and discount schedules 4. Sales and market share information 5. Profit assessments
Ref: Chapter 8 of Core Text
Brand Equity Responsibilities: 1. Overseeing Brand Equity: Aspects that are important: a) Review brand sensitive material b) Review the status of key brand initiatives c) Review brand sensitive projects d) Review new product and distribution strategies with respect to core brand values e) Resolve brand positioning conflicts
Ref: Chapter 8 of Core Text
Brand Equity Responsibilities: 2. Organizational Structure & Design: The current market trends are redefining job requirements and duties. The traditional marketing department is disappearing from a number of companies that are exploring other ways to conduct their marketing functions through business groups, multidisciplinary teams and so on.
Brand Equity Responsibilities: 3. Managing Marketing Partners: The performance of a brand also depends on the actions taken by outside suppliers and marketing partners. Hence, these relationships must be managed carefully. Many leading global firms have been consolidating their marketing partnerships and reducing the number of outside suppliers. (Ex: Levi Strauss value chain) (END OF PART I)