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What is Brand building?
Involves all the activities that are necessary to nurture a brand into a healthy cash flow stream for the company after launch
Advertising does a lot to help build brands Every ad contributes to make the brand what it is in the minds of the consumer – David Ogilvy A company’s brand is the primary source of its competitive advantage and is a very valuable strategic asset – David Aaker .
Brand Equity • When a commodity becomes a brand. It starts with a name and can go up or down depending on the marketing activity that is done by the marketer. it is said to have ‘equity’. . A name becomes a brand when consumers associate it with a set of tangible and intangible benefits that they obtain from the product or service.
How to measure equity? • The premium a brand can command in the market • The difference between the intrinsic and perceived value of the product .
Building Brand Equity • Distinguish product from others in the market – Value proposition • Align what it says about the brand in advertising with what it actually delivers – Creating the brand .
Power Brands • Generates enormous profits • Expands future strategic opportunities .
What do power brands have that others don’t? • A distinctive product • Delivering brand promise • Personality and presence .
Personality • Emotional bond with the customer • Generates relationships measurably stronger than ordinary brands .
enforcing distinctiveness • National/international scale • Successful brand extensions • Multiple concept and channels .Presence • Seem to be present everywhere.
Brand managers of market-savvy companies need • Superior insight into customer needs • Ability to devise product/services that powerfully meet those needs • Agility to redefine its offering as those needs change • Creativity to produce exciting and compelling advertising .
Tangibles of brand equity • • • • • • • Shape Colour Size Models Price Features Benefits • Grades .
Intangibles of brand equity • Company name • Brand name • Slogan and its underlying associations • Perceived quality • Brand awareness • Customer base • Trademarks and patents • Channel relationships • Customer loyalty • Customer confidence • Competitive advantage .
Value Proposition • Broad positioning • Specific positioning • Value positioning .
Creating the brand • Choosing brand name • Developing rich associations and promises • Manage customer brand contacts to meet and exceed customer expectations .
Porter’s strategic choices • Product differentiator • Low cost leader • ‘Nicher’ .
Positioning guards • • • • • Should not be overpositioned Should not be underpositioned Should not be ambiguous Should not promise irrelevant benefits Promise should be credible .
Choosing a brand name • What does it mean? • What performance/ expectations/ associations does it evoke? • What degree of preference does it create? .
Brand names should denote • • • • • Product benefits Product quality Be easy to pronounce/remember/recognise Be distinctive Not have poor meanings in other countries or languages .
Brand Associations • • • • ‘owned’ word Slogans Colours Symbols and logos .
. Therefore in some way the values and personality of the ambassador rubs off into the brand. just like a human being. Therfore the brand and choice of the ambassador must fit.Brand Ambassadors • These are used to create the Brand personality.
Product upgradation required Product should be phased out Familiarity . Need to sustain brand building activities Troubled brand.Brand Status Step up advertising Esteem Cash cow.
Brand Vitality • Differentiation in consumer’s mind • Differentiation relevant to consumer’s need .
Brand Pitfalls • Brand experience must match brand image • Calls for managing every brand contact .