BRAND PLANNING

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The Concept of Customer-Based Brand Equity

Customer-based brand equity
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Differential effect Customer brand knowledge Customer response to brand marketing

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Building Customer-Based Brand Equity

The initial choices for the brand elements

Brand name, logo, symbol, character, slogan….

Marketing and other activities and supporting marketing programs

Products, services, communications, channels ….

Other associations indirectly transferred to the brand by linking it to some other entities

Other companies, brands, places, people ….
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Benefits of Customer-Based Brand Equity

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Enjoy greater brand loyalty & be less vulnerable to competitive marketing actions Command larger margins & have more inelastic responses to price increases and elastic responses to price decreases Receive greater trade cooperation & support Increase marketing communication effectiveness Yield licensing opportunities Support brand extensions Bridge between past activities and future direction
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three models of increasing scope are presented: 1) brand positioning model describes how to guide integrated marketing to maximize competitive advantages. activity loyalty relationships with customers. 2) brand resonance model describes how to create intense. and 3) brand value chain model describes how to trace the value creation process to better understand the financial impact of marketing expenditures and investments. To help guide these efforts.Three Tools to Facilitate Brand Planning   Holistic marketing requires careful planning and implementation. 5 .

and Alice Tybout (2002). Brand Positioning Model  Kevin Lane Keller. 80 (9). 80-89. September.1. “Three Questions You Need to Ask About Your Brand.” Harvard Business Review. Brian Sternthal. 6 .

what the brand helps the customer achieve. and how it is unique in doing so  Everyone in the organization should understand the brand positioning and use it as context for making decisions 7 .Brand Positioning  Brand positioning is about how we want target  customers to think about a brand with respect to competitors A strong brand positioning helps guide organizational activities by clarifying the brand’s essence.

(Brand) Frame of Reference (Perceptual) Competing Mainly With ___________________________________________________ Frame of Reference (Competitive) that ___________________________________________________________________.Classic Brand Positioning Statement To ___________________________________________________________________. (Relevant Differentiating Benefit) because ______________________________________________________________. (Target Group/Need) _______________is the brand of __________________________________________. (Reason To Believe) The Brand Character is: ___________________________________________________ .

that gives you the perfect combination of convenience. service.com is the virtual cookie jar. competing mainly with all brick and mortar stores. Empowering 9 .com offers a truly global selection of products.com Positioning For the young at heart who value an infinite amount of choices. Brand Character: Simple. Amazon. Friendly. selection and price. because Amazon.Amazon.

Problems with Classical Positioning Statement  Ignores possibility of multiple points-of-difference  Assumes only 1 key point-of-difference   Ignores need for points-of-parity Doesn’t provide forward-looking growth platform 10 .

11  Develop unique brand points-of-difference (POD’s)     Establish shared brand points-of-parity (POP’s)    Brand mantras  .The Four Components of a Superior Competitive Positioning  Competitive frames of reference   Nature of competition Target market Desirable to consumer Deliverable by the brand Differentiating from competitors Negate competitor points-of-difference Demonstrate category credentials Short 3-to-5 word phrases that capture key POD’s & the irrefutable essence or spirit of the brand.

iconic symbolism & imagery Contemporary.Coca-Cola Positioning  Competitive frame of reference   Colas? Non-alcoholic? Distinctive taste profile Optimistic view of life Classic. up-to-date Refreshing flavor “Coke Side of Life” 12  Points-of-difference     Points-of-parity    Brand slogan  .

defensible & difficult to attack Distinctive & superior 13 .Identifying & Choosing POP’s & POD’s  Desirable? (consumer perspective)    Deliverable? (firm perspective)    Personally relevant Believable & credible  Differentiating? (competitive perspective)  Feasible Profitable Pre-emptive.

Identifying & Choosing POP’s & POD’s 14 .

Principles Reinforced By Miller Lite Launch     Both points-of-parity and points-of-difference are needed to be well-positioned Points-of-parity and points-of-difference are often negatively correlated Points-of-parity are NOT points-of-equality – there is a zone or range of indifference or tolerance Points-of-parity may even need to be the focus of marketing communications as the points-of-difference may be a “given” 15 .

Miller Lite Update   Miller Lite had experienced flagging sales. falling behind both Bud Lite and Coors Lite Management decides to create a powerful new position …   Reaffirm core duality and functional benefit of less filling & great tasting Reinforce strong user imagery and emotional appeal as to uncompromising character  By addressing inherent product trade-offs and linking performance & emotional equities …  Sales rise 10% during 2004-2005 16 .

McKinsey & IBM While simultaneously achieving points-of-difference  This strategy permits:   17 . vision. and thought leadership Information technology expertise in developing client solutions Points-of parity with its two main competitors.Accenture Straddle Positioning Strategy  Accenture is the company that combines:   Strategic insight.

Strategy & Vision Accenture Straddle Positioning (WHAT they do) Technology & Execution .

Accenture Straddle Positioning McKinsey Strategy & Vision Technology & Execution IBM POP POD POD POP .

Agile.Proactive. & Passionate Accenture Straddle Positioning (HOW they do it) Approachable & Collaborative .

Agile.Accenture Straddle Positioning McKinsey Proactive. & Passionate Approachable & Collaborative IBM POP POD POD POP .

Accenture High Performance. Delivered. 22 .

Communicating & Establishing POP’s & POD’s  Create POP’s and POD’s in the face of attribute & benefit trade-offs         Price & quality Convenience & quality Taste & low calories Efficacy & mildness Power & safety Ubiquity & prestige Comprehensiveness (variety) & simplicity Strength & refinement 23 .

Strategies to Reconcile Attribute & Benefit Trade-Offs     Design optimal product & services Establish separate marketing programs Leverage secondary association (e. co-brand) Re-define the relationship from negative to positive 24 .g..

  25 ..e.Brand Mantras  Short 3-to-5 word phrases that capture the irrefutable essence or spirit of the brand. what is unique about the brand. i. what it is not Brand mantras typically are designed to capture the brand’s points-of-difference. Brand mantra must clearly delineate what the brand is supposed to represent and therefore. at least implicitly.

Personal Recognition” 26  Disney   American Express  .Brand Mantra Examples  Nike  “Authentic Athletic Performance” “Fun Family Entertainment” “Worldclass Service.

and vivid in meaning.Brand Mantra Criteria  Communicate  A good brand mantra should define the category (or categories) of business for the brand and set the brand boundaries. 27  Simplify   Inspire  . the brand mantra would also stake out ground that is personally meaningful and relevant to as many employees as possible. It should also clarify what is unique about the brand. An effective brand mantra should be memorable. crisp. As a result. Ideally. it should be short.

A good positioning has … Evaluate POP & PODs according to: • • • Desirable (consumer) Deliverable (company) Differentiating (competition) • • A “foot in the present” & A “foot in the future” 3. Identify crucial POP’s • • • Role play competitor’s positioning Surface & resolve potential consumer trade-offs 4. Ensure duality • • Assess negative correlations & decision-making styles Rational (“Head”) Emotional (“Heart”) 28 .Some Positioning Guidelines 1. 2.

July/August.2.” Marketing Management. Brand Resonance Model  Kevin Lane Keller (2001). 15-19. “Building Customer-Based Brand Equity: A Blueprint for Creating Strong Brands. 29 .

” 30 .Create Brand Resonance with Customers    Challenge is to ensure customers have the right types of experiences to create the right brand knowledge Building a strong brand involves a series of steps as part of a “branding ladder” A strong brand is also characterized by a logically constructed set of brand “building blocks.

Active Loyalty 4 RELATIONSHIPS: What about you & me? Resonance 3 RESPONSE: What about you? Judgments Feelings Positive.BRAND RESONANCE PYRAMID Stages of Brand Development Building Blocks Branding Objective at Each Stage Intense. Broad Brand Awareness . Accessible Reactions 2 MEANING: What are you? Performance Imagery Points-of-Parity & Difference 1 IDENTITY: Who are you? Salience Deep.

 Brand imagery is thus more extrinsic properties of the brand. Type of user Brand personality History & heritage Experiences  Four important intangible dimensions are:     32 .  Brand performance refers to the intrinsic properties of the brand in terms of inherent product benefits.Brand Resonance Pyramid Terminology  Salience  Depth and breadth of brand awareness  Recognition and recall at purchase and consumption  Performance  What the brand does to meet customers' more functional needs.  Imagery  How people think about a brand abstractly rather than what they think the brand actually physically does.

Can also relate to the social currency evoked by the brand. 33 . or experiential or enduring in nature. positive or negative.Brand Resonance Pyramid Terminology  Judgments  Customers overall brand evaluations  How customers combine performance and imagery associations to form different kinds of brand opinions  Feelings  Customers emotional responses and reactions to the brand   Can be mild or intense.

short-lived during purchase/consumption  Enduring – private.Dimensions of Brand Feelings Brand feelings can be divided into two broad categories:  Experiential – immediate. or ideally both. possibly part of day-to-day life Brands should have one. types of feelings Experiential Feelings • Warm Increasing level of intensity Enduring Feelings • Sense of Security (Inner-directed) • Social Approval (Outer-directed) • Self-Respect (Actualization) Self-Respect Sense of Security Social Approval Inner-Directed Outer-Directed Higher level of values & needs • Fun • Exciting .

35 . events.Brand Resonance Pyramid Terminology  Resonance  The extent to which customers feel that they are “in synch” with the brand   Intensity or depth of the psychological bond that customers have with the brand Level of activity engendered by this loyalty    Repeat purchase rates The extent to which customers seek out brand information. or other loyal customers Etc.

HERITAGE.Sub-Dimensions of Brand Resonance Pyramid RESONANCE LOYALTY ATTACHMENT COMMUNITY ENGAGEMENT JUDGMENTS QUALITY CREDIBILITY CONSIDERATION SUPERIORITY FEELINGS WARMTH FUN EXCITEMENT SECURITY SOCIAL APPROVAL SELF-RESPECT IMAGERY USER PROFILES PURCHASE & USAGE SITUATIONS PERSONALITY & VALUES HISTORY. & EXPERIENCES PERFORMANCE PRIMARY CHARACTERISTICS & SECONDARY FEATURES PRODUCT RELIABILITY. & EMPATHY STYLE AND DESIGN PRICE SALIENCE CATEGORY IDENTIFICATION NEEDS SATISFIED . EFFICIENCY. DURABILITY & SERVICEABILITY SERVICE EFFECTIVENESS.

Brands should have a duality • • Performance & imagery Judgments & feelings 4. Brand resonance provides important focus 37 . Don’t take shortcuts with brands 3. Customers own brands 2.Brand Resonance Model: Brand Building Implications 1. Brand should have a richness 5.

May/June. 38 . 26-31. Brand Value Chain Model  Kevin Lane Keller and Don Lehmann (2003). “How Do Brands Create Value.3.” Marketing Management.

Activity Market Performance .Competitive reactions .P/E ratio .Product .Market dynamics .Other Customer Mindset .Associations .Relevance .Channel support .Customer size and profile .Price elasticities .Consistency .Brand contribution .Profitability Shareholder Value .Distinctiveness .Price premiums .Awareness .Cost savings .Market capitalization MULTIPLIERS Program Quality .Communications .Cohesiveness Marketplace Conditions Investor Sentiment .Brand Value Chain Marketing VALUE Program STAGES Investment .Risk profile .Attachment .Expansion success .Stock price .Attitudes .Market share .Trade .Growth potential .Employee .

& Resonance Value stages & multipliers  These models can be used …   Qualitatively to guide & interpret possible marketing actions Quantitatively to measure marketing effects 40 .Conclusions  Three helpful brand planning models are:  Competitive brand positioning model   Brand resonance model  Points-of-parity & points-of-difference  Brand Value Chain  Six building blocks: Salience. Performance. Feelings. Judgments. Imagery.

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