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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
or Pact with Maker of Product Symbolic Device Signal of Quality Ref: Chapter 1 of Core Text .Why Do Brands Matter? CONSUMERS: Identification of Source of Product Assignment of Responsibility to Product Maker Risk Reducer Search cost Reducer Promise. Bond.
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 .
Can Anything Be Branded? Physical Goods Services Retailers People and Distributors Online Products and Services Ref: Chapter 1 of Core Text and Organizations Sports. Art and Entertainment Geographic Locations Ideas and Causes .
Branding Challenges And Opportunities Savvy Customers Brand Proliferation Media Fragmentation Increased Competition Increased Costs Greater Accountability Ref: Chapter 1 of Core Text .
There are many different ways in which the value of a brand can be manifested or exploited to benefit the firm. Brand equity provides a common denominator for interpreting marketing strategies and assessing the value of a brand. Ref: Chapter 1 of Core Text .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. This value for a brand can be created in many different ways.
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 . 3.Building A Strong Brand The Four Steps of Brand Building: 1. 4.
Customer-based Brand Equity Pyramid Relationship Resonance Judgments Performance Feelings Response Meaning Imagery Identity Salience 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. 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 .
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
Points of Parity versus Points of Difference Ref: 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 Difference Associations 2.
Choosing Points of Parity and Points of Difference 3. Updating Positioning Over Time Ref: Chapter 3 of Core Text . Defining and Communicating the Competitive Frame of Reference 2.Positioning Guidelines 1. Establishing Points of Parity and Points of Difference 4.
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. Communicating category membership informs the consumer about the goals that they might achieve by using a product or service. Ref: Chapter 3 of Core Text . Membership indicates the products or set of products with which a brand competes.
Desirability: In terms of a) Relevance b) Distinctiveness. Deliverability: In terms of a) Feasibility b) Communicability. and c) Sustainability Ref: Chapter 3 of Core Text . and c) Believablity 2. 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.
Separate the attributes: Launch two marketing campaigns. 3. cause or event. Redefine the Relationship: Use attitude change strategies to convert negative perspectives about the brand to positive ones. each one devoted to a different brand attribute or benefit. Ref: Chapter 3 of Core Text . 2.Positioning Guidelines (3) Establishing Points of Parity and Points of Difference: 1. Leverage Equity of another Entity: Link the brand with a well-liked celebrity.
Reacting: This could imply no reaction to moderate or significant reactions depending on level of competitive threat. Ref: Chapter 3 of Core Text .Positioning Guidelines (4) Updating 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.
CHAPTER 4 CHOOSING BRAND ELEMENTS TO BUILD BRAND EQUITY Ref: Chapter 4 of Core Text .
Meaningfulness 3. Adaptability 6. Protectability Ref: Chapter 4 of Core Text . Memorability 2. Likability 4.Criteria for Choosing Brand Elements 1. Transferability 5.
URLs (Uniform Resource Locators) 3. Slogans 6.Options and Tactics for Brand Elements 1. Jingles 7. Packaging Ref: Chapter 4 of Core Text . Characters 5. Brand Names 2. Logos and Symbols 4.
CHAPTER 5 DESIGNING MARKETING PROGRAMS TO BUILD BRAND EQUITY Ref: Chapter 5 of Core Text .
New Customer and Company Capabilities (Remaining topic is for Self-study) Ref: Chapter 5 of Core Text . Industry Convergence 5. Digitalization and connectivity 2. Disintermediation and Reintermediation 3.New Perspectives on Marketing Five Major Drivers of the New Economy: Philip Kotler identifies them as under: 1. Customization and Customerization 4.
Brand Intangibles 2. TQM and Return on Quality 3.Product Strategy Perceived Quality and Value: 1. Value Chain Relationship Marketing: 1. Mass Customization 2. Aftermarketing 3. Loyalty Programs Ref: Chapter 5 of Core Text .
Ref: Chapter 5 of Core Text .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.
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. Ref: Chapter 5 of Core Text .Channel Strategy Channel Design: Broadly. channel types can be classified into Direct and Indirect channels. these are extremely powerful channels if supported by efficient physical “brick & mortar” channels.
CHAPTER 7 LEVERAGING SECONDARY BRAND KNOWLEDGE TO BUILD BRAND EQUITY Ref: Chapter 7 of Core Text .
and iii) Transferability of the knowledge of the entity Ref: Chapter 7 of Core Text .Conceptualizing the Leveraging Process 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. 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. to any or all associations.
Three main branding options exist for a new brand: 1.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. Adapt or modify an existing brand 3. Create a new brand 2. Combine an existing and new brand Ref: Chapter 7 of Core Text .
Country of Origin Besides the company that makes the product. a customer may choose to wear Italian suits. Ref: Chapter 7 of Core Text . the country or geographic location from which it is seen as originating may also become linked to the brand and generate secondary associations. exercise in American sports shoes. Thus. and drink English beer. drive a German car.
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 .
components. Ref: Chapter 7 of Core Text . Ingredient branding: This is a special case of cobranding that involves creating brand equity for materials.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. or parts that are necessarily contained within other branded products.
licensing has gained popularity in recent years.Licensing Licensing involves contractual arrangements whereby firms can use the names. characters. logos. Because it can be a shortcut means of building brand equity. and so forth of other brands to market their own brands for some fixed fee. Ref: Chapter 7 of Core Text .
The rationale behind these strategies is that a famous person can: 1. 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. 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. Draw attention to a brand.
Celebrity Endorsement (2) Potential Problems: 1. 3. There must be a reasonable match between the celebrity and the product. Ref: Chapter 7 of Core Text . Many consumers feel that celebrities are doing the endorsement only for money. 4. 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. Celebrity endorsers can lose popularity thus diminishing their market value to the brand.
2. or improving the strength. favorability. or Other Events 1.Sporting. adding new associations. A brand may seem more likable or even trustworthy by becoming linked to an event. and uniqueness of associations. Ref: Chapter 7 of Core Text . Sponsored events can contribute to brand equity by becoming associated to the brand and improving brand awareness. Cultural.
CHAPTER 8 DEVELOPING A BRAND EQUITY MEASUREMENT AND MANAGEMENT SYSTEM Ref: Chapter 8 of Core Text .
The Brand Value Chain Value Stages: 1. Customer Mindset 3. Shareholder Value Ref: Chapter 8 of Core Text . Market Performance 4. Marketing Program Investment 2.
Distinctiveness. and 4. Clarity 2.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. Consistency Ref: Chapter 8 of Core Text . The Program Multiplier: Four factors are important: 1. Relevance 3.
Customer size and profile Ref: Chapter 8 of Core Text . Competitive Superiority 2. Brand Awareness 2. Brand Activity Customer Multiplier: Three essential factors are: 1. Brand Attitudes 4. Brand Associations 3. Brand Attachment 5. Channel and other intermediary support 3.Value Stages (2) Customer Mindset: Five dimensions have emerged from research as important measures of the customer mindset: 1.
Market Share 4. Market Dynamics 2. Brand Profitability Market Multiplier: Following factors need to be considered: 1. Price Elasticities 3. Brand Contributions Ref: Chapter 8 of Core Text . Growth Potential 3.Value Stages (3) Market Performance: Six dimensions need to be addressed: 1. Price Premiums 2. Risk Profile 4. Brand Expansion 5. Cost Structure 6.
Value Stages (4) Stakeholder Value: Based on all available and forecasted information about a brand and many other considerations. Three important indicators are: 1. the financial marketplace then formulates opinions and makes various assessments that have direct financial implications for the brand value. Price/earnings multiple. Stock price 2. Overall market capitalization of the firm Ref: Chapter 8 of Core Text . and 3.
2. The brand value chain provides a detailed roadmap for tracking value creation enabling market research and intelligence efforts. 4. Each of the three multipliers can increase or decrease market value from stage to stage. 3.The Brand Value Chain Implications: 1. Value creation involves more than just the initial marketing investment. well-designed. and wellimplemented marketing program. Ref: Chapter 8 of Core Text . A necessary condition for value creation is a well-funded.
Global Tracking How to Conduct Tracking Studies: 1. Product Brand Tracking 2. Who to track 2.Designing Brand Tracking Studies What to Track: 1. When and where to track How to Interpret Tracking Studies Ref: Chapter 8 of Core Text . Corporate or Family Brand Tracking 3.
Ref: Chapter 8 of Core Text . 2. 3. Corporate or Family Brand Tracking: Some additional questions may be added to establish levels of corporate credibility and corporate brand associations. Product-Brand Tracking: The six-block pyramid for brand-building can be used as a basis for design of the questionnaire. Global Tracking: A broader set of background measures are needed to put brand development in those markets in the right perspective .Designing Brand Tracking Studies (1) What to Track: Three distinct surveys can be conducted for: 1.
Potential Customers 3. Current Customers 2. Channel Members 4.Designing Brand Tracking Studies (2) Who to Track: 1. 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 .
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 . they must be reliable and sensitive as possible. favorable.Designing Brand Tracking Studies (3) How to Interpret Tracking Studies: For tracking measures to facilitate actionable insights and recommendations. This may require framing of questions in a comparative or temporal manner. For example: What is a sufficiently high level of brand awareness? When are brand associations sufficiently strong. It is also necessary to decide on appropriate cutoffs.
Managing Marketing Partners Ref: Chapter 8 of Core Text . Overseeing Brand Equity 2.Establishing a Brand Equity Management System Brand Equity Charter Brand Equity Report Brand Equity Responsibilities: 1. Organizational Design and Structure 3.
Trademark usage. The scope of the key brands of the firm. at individual product level and corporate level.e. Outline specific tactical guidelines for marketing programs. Specify the actual and desired equity for a brand at all relevant levels i.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. packaging & communications Ref: Chapter 8 of Core Text . Strategies for managing brand equity.
Sales and market share information 5. Profit assessments Ref: Chapter 8 of Core Text .Establishing a Brand Equity Management System (2) Brand Equity Report: Important market information that should be included: 1. Product shipments and movement through channels of distribution. 2. Price and discount schedules 4. 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 .
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. 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.
Hence. (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. Managing Marketing Partners: The performance of a brand also depends on the actions taken by outside suppliers and marketing partners.Establishing a Brand Equity Management System (3-contd) Brand Equity Responsibilities: 3. these relationships must be managed carefully.