BRAND MANAGEMENT

22HT-1FE697
Business Administration II
Integrated Marketing Communication and Brand
Management 7.5 credits

LECTURE 2
Clarinda Rodrigues, Ph.D.

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AGENDA FOR TODAY
1. BRAND POSITIONING
2. BRAND IDENTITY
3. BRAND STRATEGIES – FUNCTIONAL BRANDS
4. BRAND STRATEGIES – SYMBOLIC BRANDS
Positioning a brand in consumers´minds
Apple is innovation
Ikea is
Mercedes is
Red Bull is
(Re)Positioning a brand in consumers´minds
Our culture fosters a sense of We thrive on a youthful spirit, open-
empowerment and minded and progressive, to lead
entrepreneurialism and places continuous change through culture,
value on health, well-being and innovation and sustainability for a
social responsibility. These tomorrow – and a planet – that is
elements can only be defined by fulfilling to everyone.
one phrase: Live Young. ®
 Positioning a brand Kapferer (2012)
For
Brand promise For Target
whom?
Benefits what? consumers
Factual or subjective Why? Against
Elements supporting Competitors
the claimed benefit
whom?
Positioning a brand
 Brand Identity Prism
PART III:
Kapferer (2012)
Consumer-Based Brand Equity
Externalisation vs Internationalisation: A brand has social aspects that define its external
expression (externalisation: physique, relationship and reflection) and aspects that are incorporate
into the brand itself (internalisation: personality, culture and self-image)
Kapferer´s Brand Identity Prism
PART III:
Consumer-Based Brand Equity
Kapferer´s Brand Identity Prism
PART III:
Consumer-Based Brand Equity
Kapferer´s Brand Identity Prism
PART III:
Consumer-Based Brand Equity
Kapferer´s Brand Identity Prism
PART III:
Consumer-Based Brand Equity
Kapferer´s Brand Identity Prism
PART III:
Consumer-Based Brand Equity
Kapferer´s Brand Identity Prism
PART III:
Consumer-Based Brand Equity
Class discussion: Is this correct?
PART III:
Consumer-Based Brand Equity
Common Mistakes about Brand Identity
PART III:
Consumer-Based Brand Equity
q Some companies choose to imitate
competitors (marketing communications
and products)
q Some companies are obsessed by
building an appealing image that will be
favourably perceived by all.
q Some companies fantasize their identity:
the brand as one would like to see it,
but not as actually is.
Kapferer (2012)
Brand Elements Choice Criteria (Kapferer, 2012)
PART III:
Consumer-Based Brand Equity
• Enhance Brand Awareness
• Facilitate the formation of strong, favorable and unique brand
associations
• Brand Names • Slogans
• Logos • Jingles
• Symbols • Packaging
• Characters
Brand Names (Kapferer, 2012)
BRAND AWARENESS
§ Simple and easy to pronounce: Ford
§ Familiar and meaningful: Mastercard
§ Different, distinctive, and Unique: Apple, Nike
BRAND ASSOCIATIONS
§ The explicit and implicit meanings consumers extract from them are
important
§ The brand name can reinforce an important attribute or benefit association
that makes the positioning
Brand Names
• Colgate launched toothpaste in France named "Cue" without
realizing that it's also the name of a French pornographic magazine.
• Electrolux at one time marketed its vacuum cleaners in the U.S. with
the tag line: "Nothing sucks like an Electrolux.”
• Ikea products were marketed in Thailand with Swedish names that in
the Thai language mean "sex" and "getting to third base."
• The American Dairy Association replicated its "Got Milk?" campaign
in Spanish-speaking countries where it was translated into "Are You
Lactating?"
• Pepsi's slogan "Pepsi Brings You Back to Life" was debuted in China
as "Pepsi Brings You Back from the Grave."
• Mercedes-Benz entered the Chinese market under the brand name
"Bensi," which means "rush to die.”
Symbols and Logos Kapferer (2012)
PART III:
Consumer-Based
§ Strong Brand
word marks (with no separate logo): Exs:Equity
Coca-Cola, Kit-
Kat
§ Non-word mark logos (Symbols): Mercedes star, Nike swoosh,
Olympic rings
§ Versatile: can be updated and transferred. Useful to endorse sub-
brands
Characters (Kapferer, 2012)
PART III:
§ ReliesConsumer-Based Brand
on human or real-life characteristics: the Equity
Malboro
comboy, Ronald McDonald, Energizer´s drumming pink bunny
§ Colourful and rich in imagery: Brand Awareness
§ Relationship building
§ Transferable
§ Licensing opportunities
Slogans Kapferer (2012)
PART III:
Consumer-Based
§ Facilitate building brand awarenessBrand
by: Equity
• Playing off the brand name (Ex: There are some things money
can't buy. For everything else, there's MasterCard)
• Making strong links with the category (Ex: Nothing runs like a
Deere)
§ Reinforce brand positioning (Ex: Nike: Just Do It; Apple: Think
Different)
§ Relatively easier to change
Jingles Kapferer (2012)
PART III:
Consumer-Based Brand Equity
§ Musical messages written around the brand
§ Often convey product meaning in an abstract fashion
§ Most likely to relate to feelings and other intangibles
Packaging Kapferer (2012)
PART III:
Consumer-Based Brand Equity
OBJECTIVES
§ Identify the brand
§ Convey descriptive and persuasive information
§ Facilitate product transportation and protection
§ Assist at-home store
§ Aid product consumption
To sum up…
PART III:
Consumer-Based Brand Equity
§ The entire set up of brand elements is the brand identity, which
contributes to create brand knowledge (brand awareness
and brand image)
§ The cohesiveness of the brand identity depends on the extent
to which the brand elements are consistent.
To sum up…
PART III:
Consumer-Based Brand Equity
§ Brand Identity
• How brand strategists want the brand to be perceived
§ Brand Image
• How the brand is now perceived
§ Brand Positioning
• The part of the brand identity and value proposition to be
communicated to a target audience
MANAGING
BRAND
STRATEGIES IN
MINDSPACE
 Functional vs Symbolic
• Some consumers are mainly interested in the functional aspects
of products for filling their basic needs.
• Others have more emotional reasons for purchasing certain
products. They want products that build their self-esteem, help
them fit in with friends or elevate their status.
• Therefore we need to develop different strategies for
consumers who buy their brands for functional reasons than
those who have emotional wants.
Brand Strategy alternatives
High Involvement
Symbolic Brands
Cognition Emotion
Functional Brands
Low Involvement
Functional Brands
A functional brand is typically bought to satisfy
a functional need of a consumer.
Functional Brands
Consumers who buy food
products for functional
reasons are eating to sate
hunger.
They may not be be as
particular about certain
brands of cereals.
Some may be more price-
conscious.
Functional Brands
Consumer products such as
toothpaste must first identify the
functional needs for this product.
Consumers need toothpaste to fight
cavities.
They may want it for fresh breath and
a whiter smile to impress the opposite
sex, but the functional needs for
toothpaste are preventing tarter,
plaque buildup and tooth decay.
Functional Brands
Functional brands:
- are tied in the consumer’s mind to specific product categories
- share the user’s associations with other brands in the same
category.
- Ex: all automobiles share in their basic functionality; they are
designed to transport passengers from point A to point B and
they all do the same thing in essentially the same manner,
BUT…
Functional Brands
Stress either better performance or better economy to
differentiate functional brands from their competitor’s
brands
Functional Brands
PART III:
Consumer-Based Brand Equity
Choice Heuristics
Short-circuit the process into an almost instantaneous decision
“buy the cheapest brand”
“buy the brand I feel warm about”
“buy the brand my mother used to buy"
"buy the brand my friends buy most"
Functional Brands
PART III:
Consumer-Based Brand Equity
Choice Heuristics
Consumers also rely on package illustrations to infer attributes
Functional Brands
PART III:
Consumer-Based Brand Equity
“When in doubt, a well-know brand is a safe
choice"
Market
Beliefs "Bad brands don´t survive"
"hard-sell adver;sing is associated with low-
quality products"
Functional brands: how to build brand equity?
PART III:
Consumer-Based Brand Equity
q Brand salience (often called top-of-mind awareness) is important to
low-involvement brands
q A salient brand is likely to have (Ehrenberg et al., 1997)
• Wider distribution
• More shelf-space and display
• More promotions
• More advertising
• More WOM
• More media mentions
Functional brands: how to build brand equity?
PART III:
Consumer-Based Brand Equity
The brand should be
immediately associated with
the need for the product
when the need occurs.
Functional brands: how to build brand equity?
PART III:
Consumer-Based
Studies suggest that consumers Brand Equity
THROUGH MERE
do not remember seeing the EXPOSURE OF BRAND
brand, but they will be more likely AND LOGO
to prefer it to unknown brands to
which they have not been
exposed to.
WHICH STRATEGY?
GENERATE AN UNCOUNCIOUS
POSITIVE EMOTIONAL
CONGRUENCE WITH THE
BRAND THROUGH REPETITION
OF THE BRAND NAME
Functional brands: how to build brand equity?
PART III:
Consumer-Based Brand Equity
Managing consumer perceptions
Refreshing Extending
New Usage
favourable favourable
situations
perceptions perceptions
Encouraging Cause-
category Real Users related
substitution marketing
Functional brands: how to build brand equity?
PART III:
Consumer-Based Brand Equity
Building brand associations and meanings
Brand name
Sensory cues
suggestiveness
Celebrities
Functional brands: how to build brand equity?
PART III:
Consumer-Based Brand Equity
THROUGH CLASSICAL CONDITIONING
Pairing the brand/logo with a pleasant emotional stimulus
Knorr #LoveAtFirstTaste
Brand Strategy alternatives
High Involvement
Symbolic Brands
Cognition Emotion
Functional Brands
Low Involvement
Symbolic brand strategies
Strategies
Strategies
based on
based on social
personal
differentiation
meanings
Strategies
based on social
integration
(1) Personal meaning strategies
Brand-as-a-person
Human traits are associated with a brand directly through the real people
that consumers associate with a brand:
• Typical users
• Celebrity endorsers
• Chief executives
(1) Personal meaning strategies
Aaker (1997)
(1)Personal meaning strategies
Brand-as-a-friend
q Consumers can form sth similar to an interpersonal
relationship with brands: brands as active and
valuable partners
q Brands high on intimacy, commitment and love will
exhibit high degrees of loyalty and tolerance
towards failures
q Brands perceived as sincere were punished more
when a transgression occurred compared to
exciting brands (Aaker et al., 2004)
q Woman more easily interpret a brand which is close
to them as an active interacting partner and are
more prone to personify its signals (Monga, 2002).
(1)Personal meaning strategies
Brands and romance
Brand communications emphasizing romantic love may be more
effective if they depict love as part of a meaningful relationship rather
than one based primarily on sexual attraction
(1)Personal meaning strategies
Nostalgia
q Nostalgia feelings can determine
consumer preferences later in life, e.g.
need to belong
q Occurs primarily for products for which a
preference is formed at age 16-20,
accompanied by intense positive
emotional experiences
q Some examples of nostalgia expressions
• Sensory experiences
• Homeland brands
• Rites of passage
• Gifts of love
• Feeling of security
• Art and entertainment
• Performance and competence
• Creativity
(1) Personal meaning strategies
Instant Heritage
(1)Personal meaning strategies
Brand as an experience
(1)Personal meaning strategies
Brand as underdog
Other brand strategies
Social differen-a-on
• Brands enable consumers to be told apart
of a group (brands as differentiators)
Social integration
• Brands help others to assign themselves to
a group (brands as integrators)
(2) Social differentiation strategies
Fashionization
Water Bar Paris
(2)Social differentiation strategies
Strategic Cannibalization
It refers to scenarios where consumers are offered new products despite being within a
time frame in which the sales potential for old or current products and services is yet to
be exhausted
(2) Social differentiation strategies
Gender identity Evans et al. (2000)
q Women are more sensitive to details of relevant information and tend to favour
objective over subjective claims
q Women are better able to integrate emotional and rational factors, whereas men
are more prone to make emotional buying decisions
q Women take a broader view of life, whereas men tend to see life as more linear
q Status anxiety is prevalent for male consumers – brands can offer reassurance
(3)Social integration strategies
Brand Communities
• Community-integrated customers serve as brand missionaires
• Important to design events with a focus on socializing new and intending
brand owners while offering special recognition to those who are already
part of the BC.
(3)Social integration strategies
Neo-tribes
• Brands can inspire tribes and earn their respect by understanding their values and
standing back and letting them do most of the running (McDonald, 2001)
• Neo-tribes are unstable, small-scale, and involve shared experience
(3)Social integration strategies
Sub-cultures (based on geography, age, ethnicity, and class)
(2)Social integration strategies
Sub-cultures – Aikido brands
Aikido focuses not on punching or kicking opponents, but rather on using their
own energy to gain control of them or to throw them away from you
“No more drinking stupid,
drink with commitment”
(3)Social integration strategies
Brand mythologies
This concept is based on a brand representing the idea or set of ideas that
people can live by and embody and legitimize a new way of living in a
rapidly changing society (Grant, 1999)