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“Strategic Brand Management”
Kevin Lane Keller (2nd Edition) Presented by: PROF. HIMMAT ADISARE
BRANDS AND BRAND MANAGEMENT
Ref: Chapter 1 of Core Text
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
Bond.Why Do Brands Matter? CONSUMERS: Identification of Source of Product Assignment of Responsibility to Product Maker Risk Reducer Search cost Reducer Promise. or Pact with Maker of Product Symbolic Device Signal of Quality Ref: Chapter 1 of Core Text .
Why Do Brands Matter? (2) MANUFACTURERS: Means of Identification to Simplify Handling or Tracing Means of Legally Protecting Unique Features Signal of Quality Level to Satisfied Customers Ref: Chapter 1 of Core Text Means of Endowing Products with Unique Associations Source of Competitive Advantage Source of Financial Returns .
Art and Entertainment Geographic Locations Ideas and Causes .Can Anything Be Branded? Physical Goods Services Retailers People and Distributors Online Products and Services Ref: Chapter 1 of Core Text and Organizations Sports.
Branding Challenges And Opportunities Savvy Customers Brand Proliferation Media Fragmentation Increased Competition Increased Costs Greater Accountability Ref: Chapter 1 of Core Text .
Ref: Chapter 1 of Core Text . This value for a brand can be created in many different ways.The Brand Equity Concept Basic Principles of Branding and Brand Equity: Differences in outcomes arise from the “added value” endowed to a product as a result of past marketing activity for the brand. Brand equity provides a common denominator for interpreting marketing strategies and assessing the value of a brand. There are many different ways in which the value of a brand can be manifested or exploited to benefit the firm.
Strategic Brand Management Process Identifying 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 CUSTOMER-BASED BRAND EQUITY Ref: Chapter 2 of Core Text .
Sources Of Brand Equity Brand Awareness Consequences of Brand Awareness Learning advantages Consideration advantages Choice Advantages Establishing Brand Awareness Brand Image Strength of Brand Associations Favorability of Brand Associations Uniqueness of Brand Associations Ref: Chapter 2 of Core Text .
2. Identity (Who are you?) Meaning (What are you?) Response (What about you?) Relationship (What about you & me?) Ref: Chapter 2 of Core Text . 4.Building A Strong Brand The Four Steps of Brand Building: 1. 3.
Customer-based Brand Equity Pyramid Relationship Resonance Judgments Performance Feelings Response Meaning Imagery Identity Salience Ref: Chapter 2 of Core Text .
with ultimate relationship & no relevance to what the level of identification brand actually does that the customer has with the brand Ref: Chapter 2 of Core Text .Customer-based Brand Equity Pyramid (2) Brand Salience: This Brand Judgments: The relates to aspects of customers’ personal awareness of the brand opinions and evaluations with regard to the brand Brand Performance: This relates to ways in Brand Feelings: The which product/ service customers’ emotional meets customers’ needs responses and reactions with respect to the brand Brand Imagery: It’s how customers visualize a Brand Resonance: The brand abstractly.
CHAPTER 3 BRAND POSITIONING AND VALUES Ref: Chapter 3 of Core Text .
Identifying and Establishing Brand Positioning Basic Concepts Target Market Nature of Competition Points of Parity and Points of Difference Ref: Chapter 3 of Core Text .
Identifying and Establishing Brand Positioning (2)
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
Ref: Chapter 3 of Core Text
Identifying and Establishing Brand Positioning (3)
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
Identifying and Establishing Brand Positioning (4)
of Competition: Channels of Distribution Competitors’ Resources Competitors’ Capabilities Competitors’ Likely Intentions Other Competitive Factors (Porter’s 5Force Model refers)
Ref to Chapter 3 of Core Text
Identifying and Establishing Brand Positioning Points of Parity and Points of Difference: 1. Points of Parity Associations 3. Points of Parity versus Points of Difference Ref: Chapter 3 of Core Text . Points of Difference Associations 2.
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 3. Defining and Communicating the Competitive Frame of Reference 2.Positioning Guidelines 1.
Communicating category membership informs the consumer about the goals that they might achieve by using a product or service.Positioning Guidelines (1) Defining and Communicating the Competitive Frame of Reference: A starting point in defining a competitive frame of reference for brand positioning is to determine Category Membership. Ref: Chapter 3 of Core Text . Membership indicates the products or set of products with which a brand competes.
and c) Sustainability Ref: Chapter 3 of Core Text . Points of Difference: These are based on the following criteria: 1.Positioning Guidelines (2) 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. Desirability: In terms of a) Relevance b) Distinctiveness. and c) Believablity 2. Deliverability: In terms of a) Feasibility b) Communicability.
Redefine the Relationship: Use attitude change strategies to convert negative perspectives about the brand to positive ones. cause or event. Leverage Equity of another Entity: Link the brand with a well-liked celebrity. 2. 3. each one devoted to a different brand attribute or benefit. Ref: Chapter 3 of Core Text .Positioning Guidelines (3) Establishing Points of Parity and Points of Difference: 1. Separate the attributes: Launch two marketing campaigns.
Reacting: This could imply no reaction to moderate or significant reactions depending on level of competitive threat.Positioning Guidelines (4) Updating Positioning Over Time: 1. 2. Ref: Chapter 3 of Core Text . Laddering: This strategy is to deepen the meaning of the brand to tap into core brand values or other more abstract considerations.
CHAPTER 4 CHOOSING BRAND ELEMENTS TO BUILD BRAND EQUITY Ref: Chapter 4 of Core Text .
Transferability 5. Protectability Ref: Chapter 4 of Core Text .Criteria for Choosing Brand Elements 1. Adaptability 6. Meaningfulness 3. Memorability 2. Likability 4.
Brand Names 2. Packaging Ref: Chapter 4 of Core Text . Jingles 7. Slogans 6. Logos and Symbols 4.Options and Tactics for Brand Elements 1. URLs (Uniform Resource Locators) 3. Characters 5.
CHAPTER 5 DESIGNING MARKETING PROGRAMS TO BUILD BRAND EQUITY Ref: Chapter 5 of Core Text .
Customization and Customerization 4. New Customer and Company Capabilities (Remaining topic is for Self-study) Ref: Chapter 5 of Core Text .New Perspectives on Marketing Five Major Drivers of the New Economy: Philip Kotler identifies them as under: 1. Digitalization and connectivity 2. Disintermediation and Reintermediation 3. Industry Convergence 5.
TQM and Return on Quality 3. Brand Intangibles 2. Loyalty Programs Ref: Chapter 5 of Core Text .Product Strategy Perceived Quality and Value: 1. Aftermarketing 3. Mass Customization 2. Value Chain Relationship Marketing: 1.
Ref: Chapter 5 of Core Text . 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.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.
channel types can be classified into Direct and Indirect channels. these are extremely powerful channels if supported by efficient physical “brick & mortar” channels. Indirect Channels: a) Distributors and Dealers b) Retailers c) other middlemen Web Strategies: Today. Ref: Chapter 5 of Core Text .Channel Strategy Channel Design: Broadly. Direct Channels: a) Company-owned stores b) Leased/Rented shopping-space in larger department stores.
CHAPTER 7 LEVERAGING SECONDARY BRAND KNOWLEDGE TO BUILD BRAND EQUITY Ref: Chapter 7 of Core Text .
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.Conceptualizing the Leveraging Process Creation of New Brand Associations: By making a connection between the brand and another entity. and iii) Transferability of the knowledge of the entity Ref: Chapter 7 of Core Text . judgments. consequently. consumers may form a mental association from the brand to this entity and. to any or all associations.
Create a new brand 2. Combine an existing and new brand Ref: Chapter 7 of Core Text .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. Adapt or modify an existing brand 3.
exercise in American sports shoes. the country or geographic location from which it is seen as originating may also become linked to the brand and generate secondary associations. drive a German car.Country of Origin Besides the company that makes the product. and drink English beer. Ref: Chapter 7 of Core Text . a customer may choose to wear Italian suits. Thus.
Ref: Chapter 7 of Core Text . 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.Channels of Distribution Channels of distribution can directly affect the equity of the brands they sell by the supporting actions that they take.
components. or parts that are necessarily contained within other branded products.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. Ref: Chapter 7 of Core Text . Ingredient branding: This is a special case of cobranding that involves creating brand equity for materials.
and so forth of other brands to market their own brands for some fixed fee.Licensing Licensing involves contractual arrangements whereby firms can use the names. Because it can be a shortcut means of building brand equity. characters. licensing has gained popularity in recent years. Ref: Chapter 7 of Core Text . logos.
Shape the perceptions of the brand by virtue of the inferences that consumers make based on the knowledge they have about the famous person. and 2. The rationale behind these strategies is that a famous person can: 1. Draw attention to a brand. Ref: Chapter 7 of Core Text .Celebrity Endorsement (1) Using well-known and admired people to promote products is a widespread phenomenon with a long marketing history.
4. Many consumers feel that celebrities are doing the endorsement only for money. Ref: Chapter 7 of Core Text . Celebrity endorsers can lose popularity thus diminishing their market value to the brand. There must be a reasonable match between the celebrity and the product.Celebrity Endorsement (2) 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. 3.
Ref: Chapter 7 of Core Text . or Other Events 1. Sponsored events can contribute to brand equity by becoming associated to the brand and improving brand awareness. adding new associations. 2.Sporting. and uniqueness of associations. favorability. Cultural. A brand may seem more likable or even trustworthy by becoming linked to an event. or improving the strength.
CHAPTER 8 DEVELOPING A BRAND EQUITY MEASUREMENT AND MANAGEMENT SYSTEM Ref: Chapter 8 of Core Text .
Marketing Program Investment 2. Customer Mindset 3.The Brand Value Chain Value Stages: 1. Shareholder Value Ref: Chapter 8 of Core Text . Market Performance 4.
Relevance 3. Distinctiveness. The Program Multiplier: Four factors are important: 1.Value Stages (1) Marketing Program Investment: The ability of a marketing program investment to transfer or multiply further down the chain will depend on qualitative aspects of the marketing program via the program multiplier. Clarity 2. Consistency Ref: Chapter 8 of Core Text . and 4.
Brand Activity Customer Multiplier: Three essential factors are: 1. Brand Associations 3. Brand Attitudes 4. Competitive Superiority 2. Channel and other intermediary support 3. Customer size and profile Ref: Chapter 8 of Core Text . Brand Attachment 5. Brand Awareness 2.Value Stages (2) Customer Mindset: Five dimensions have emerged from research as important measures of the customer mindset: 1.
Market Share 4. Brand Expansion 5. Price Elasticities 3. Cost Structure 6. Brand Profitability Market Multiplier: Following factors need to be considered: 1. Risk Profile 4. Growth Potential 3. Market Dynamics 2.Value Stages (3) Market Performance: Six dimensions need to be addressed: 1. Price Premiums 2. Brand Contributions Ref: Chapter 8 of Core Text .
the financial marketplace then formulates opinions and makes various assessments that have direct financial implications for the brand value. Stock price 2. Three important indicators are: 1.Value Stages (4) Stakeholder Value: Based on all available and forecasted information about a brand and many other considerations. and 3. Price/earnings multiple. Overall market capitalization of the firm Ref: Chapter 8 of Core Text .
A necessary condition for value creation is a well-funded. 2. well-designed. Each of the three multipliers can increase or decrease market value from stage to stage.The Brand Value Chain Implications: 1. 4. 3. Value creation involves more than just the initial marketing investment. and wellimplemented marketing program. Ref: Chapter 8 of Core Text . The brand value chain provides a detailed roadmap for tracking value creation enabling market research and intelligence efforts.
Corporate or Family Brand Tracking 3. Product Brand Tracking 2. When and where to track How to Interpret Tracking Studies Ref: Chapter 8 of Core Text . Who to track 2.Designing Brand Tracking Studies What to Track: 1. Global Tracking How to Conduct Tracking Studies: 1.
Global Tracking: A broader set of background measures are needed to put brand development in those markets in the right perspective . Ref: Chapter 8 of Core Text .Designing Brand Tracking Studies (1) What to Track: Three distinct surveys can be conducted for: 1. Corporate or Family Brand Tracking: Some additional questions may be added to establish levels of corporate credibility and corporate brand associations. 2. Product-Brand Tracking: The six-block pyramid for brand-building can be used as a basis for design of the questionnaire. 3.
Designing Brand Tracking Studies (2) Who to Track: 1. Channel Members 4. Current Customers 2. Frontline Employees (Services sector) When and Where to Track: Options are: Continuous Tracking Studies Based on Stage of Product Life Cycle Based on depth of Brand Equity Ref: Chapter 8 of Core Text . Potential Customers 3.
Designing Brand Tracking Studies (3) How to Interpret Tracking Studies: For tracking measures to facilitate actionable insights and recommendations. favorable. and unique? How positive should brand judgments and feelings be? What are reasonable expectations for the amount of brand resonance? Ref: Chapter 8 of Core Text . For example: What is a sufficiently high level of brand awareness? When are brand associations sufficiently strong. This may require framing of questions in a comparative or temporal manner. It is also necessary to decide on appropriate cutoffs. they must be reliable and sensitive as possible.
Establishing a Brand Equity Management System Brand Equity Charter Brand Equity Report Brand Equity Responsibilities: 1. Managing Marketing Partners Ref: Chapter 8 of Core Text . Organizational Design and Structure 3. Overseeing Brand Equity 2.
packaging & communications Ref: Chapter 8 of Core Text . Specify the actual and desired equity for a brand at all relevant levels i. at individual product level and corporate level. The scope of the key brands of the firm.Establishing a Brand Equity Management System (1) Brand Equity Charter: A formalized document should spell out the following: The firm’s view of the brand equity concept. Trademark usage. Outline specific tactical guidelines for marketing programs. Strategies for managing brand equity.e.
2. Price and discount schedules 4. Product shipments and movement through channels of distribution. Sales and market share information 5.Establishing a Brand Equity Management System (2) Brand Equity Report: Important market information that should be included: 1. Profit assessments Ref: Chapter 8 of Core Text . Relevant cost breakdowns 3.
Establishing a Brand Equity Management System (3) 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 .
multidisciplinary teams and so on. The traditional marketing department is disappearing from a number of companies that are exploring other ways to conduct their marketing functions through business groups. Organizational Structure & Design: The current market trends are redefining job requirements and duties. Ref: Chapter 8 of Core Text .Establishing a Brand Equity Management System (3-contd) Brand Equity Responsibilities: 2.
Hence. Managing Marketing Partners: The performance of a brand also depends on the actions taken by outside suppliers and marketing partners. these relationships must be managed carefully.Establishing a Brand Equity Management System (3-contd) Brand Equity Responsibilities: 3. (Ex: Levi Strauss value chain) (END OF PART I) Ref: Chapter 8 of Core Text . Many leading global firms have been consolidating their marketing partnerships and reducing the number of outside suppliers.
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