You are on page 1of 53

CHOOSING BRAND ELEMENTS TO BUILD BRAND EQUITY

12/21/12

Building Customer-Based Brand Equity


Brand

knowledge structures depend on:

The initial choices for the brand elements The supporting marketing program and the manner by which the brand is integrated into it Other associations indirectly transferred to the brand by linking it to some other entities

24.2

12/21/12

12/21/12

12/21/12

12/21/12

12/21/12

12/21/12

12/21/12

Criteria for Choosing Brand Elements


Memorability Meaningfulness Likability Transferability Adaptability Protectability

Marketers offensive strategy and build brand equity

Defensive role for leveraging and maintaining brand equity

94.9

12/21/12

Memorability
Brand

elements should inherently be memorable and attention-getting, and therefore facilitate recall or recognition. For example, a brand of propane gas cylinders named Blue Rhino featuring a powder-blue animal mascot with a distinctive yellow flame is likely to stick in the minds of consumers.

104.10

12/21/12

Meaningfulness
Brand

elements may take on all kinds of meaning, with either descriptive or persuasive content. Two particularly important criteria

General information about the nature of the product category Specific information about particular attributes and benefits of the brand

The

first dimension is an important determinant of brand awareness and salience; the second, of brand image and positioning.
114.11 12/21/12

Likability
Do

customers find the brand element aesthetically appealing? Descriptive and persuasive elements reduce the burden on marketing communications to build awareness.

12/21/12

Transferability
How

useful is the brand element for line or category extensions? To what extent does the brand element add to brand equity across geographic boundaries and market segments?

134.13

12/21/12

Adaptability
The

more adaptable and flexible the brand element, the easier it is to update it to changes in consumer values and opinions. For example, logos and characters can be given a new look or a new design to make them appear more modern and relevant.

144.14

12/21/12

Protectability

1.

Marketers should:
Choose brand elements that can be legally protected internationally. Formally register chosen brand elements with the appropriate legal bodies. Vigorously defend trademarks from unauthorized competitive infringement.

2.

3.

154.15

12/21/12

Tactics for Brand Elements


A

variety of brand elements can be chosen that inherently enhance brand awareness or facilitate the formation of strong, favorable, and unique brand associations.

Brand names URLs Logos and symbols Characters Slogans Packaging

164.16

12/21/12

Brand Names
Like

any brand element, brand names must be chosen with the six general criteria of memorability, meaningfulness, likability, transferability, adaptability, and protectability in mind.

174.17

12/21/12

Brand Naming Guidelines


Brand

awareness

Simplicity and ease of pronunciation and spelling Familiarity and meaningfulness Differentiated, distinctive, and uniqueness

Brand

associations

The explicit and implicit meanings consumers extract from it are important. In particular, the brand name can reinforce an important attribute or benefit association that makes up its product positioning.

184.18

12/21/12

Brand Naming Procedures


Define

objectives Generate names Screen initial candidates Study candidate names Research the final candidates Select the final name

194.19

12/21/12

URLs
URLs

(uniform resource locators) specify locations of pages on the web and are also commonly referred to as domain names. A company can either sue the current owner of the URL for copyright violation, buy the name from the current owner, or register all conceivable variations of its brand as domain names ahead of time.

204.20

12/21/12

Logos and Symbols


Play

a critical role in building brand equity and especially brand awareness Logos range from corporate names or trademarks (word marks with text only) written in a distinctive form, to entirely abstract designs that may be completely unrelated to the word mark, corporate name, or corporate activities

214.21

12/21/12

Characters
A

special type of brand symbolone that takes on human or real-life characteristics Some are animated like Pillsburys Poppin Fresh Doughboy, Peter Pan peanut butters character, and numerous cereal characters such as Tony the Tiger, Capn Crunch, and Snap, Crackle & Pop. Others are live-action figures like Juan Valdez (Colombian coffee), the Maytag repairman, and Ronald McDonald. Notable newcomers include the AOL running man, the Budweiser frogs, and the AFLAC duck.
224.22 12/21/12

Slogans
Slogans

are short phrases that communicate descriptive or persuasive information about the brand. Slogans are powerful branding devices because, like brand names, they are an extremely efficient, shorthand means to build brand equity

234.23

12/21/12

Classic Slogans

Melts in your mouth, not in your hands (M&Ms) Sometimes you feel like a nut, sometimes you dont (Almond Joy/Mounds) Wheres the beef? (Wendys) A mind is a terrible thing to waste (United Negro College Fund) Can you hear me now? (Verizon)

Source: Monty Phan, Celebrating Their Sweet Success, Newsday, 21 September 2004, A43. 244.24 12/21/12

Jingles
Jingles

are musical messages written around the brand. Typically composed by professional songwriters, they often have enough catchy hooks and choruses to become almost permanently registered in the minds of listenerssometimes whether they want them to or not! Jingles are perhaps most valuable in enhancing brand awareness.

254.25

12/21/12

Packaging
From

the perspective of both the firm and consumers, packaging must achieve a number of objectives:

Identify the brand Convey descriptive and persuasive information Facilitate product transportation and protection Assist at-home storage Aid product consumption

Susan B. Bassin, Value-Added Packaging Cuts through Store Clutter, 264.26 12/21/12

Packaging Can Influence Taste


Our

sense of taste and touch is very suggestible, and what we see on a package can lead us to taste what we think we are going to taste.

274.27

12/21/12

Packaging Can Influence Value


Long

after we have bought a product, a package can still lead us to believe we bought it because it was a good value.

284.28

12/21/12

Packaging Can Influence Consumption


Studies

of 48 different types of foods and personal care products have shown that people pour and consume between 18% and 32% more of a product as the size of the container doubles.

Valerie Folkes, Ingrid Martin and Kamal Gupta, When to Say When: Effects of Supply on Usage, Journal of Consumer Research, 294.29 12/21/12

Packaging Can Influence How a Person Uses a Product to increase use of mature One strategy

products has been to encourage people to use the brand in new situations, like soup for breakfast, or new uses, like baking soda as a refrigerator deodorizer. An analysis of 26 products and 402 consumers showed that twice as many people learned about the new use from the package than from television ads.

304.30

12/21/12

Putting It All Together


The

entire set of brand elements makes up the brand identity, the contribution of all brand elements to awareness and image. The cohesiveness of the brand identity depends on the extent to which the brand elements are consistent.

314.31

12/21/12

DESIGNING MARKETING PROGRAMS TO BUILD BRAND EQUITY

12/21/12

Overview
How

do marketing activities in generaland product, pricing, and distribution strategies in particularbuild brand equity? How can marketers integrate these activities to enhance brand awareness, improve the brand image, elicit positive brand responses, and increase brand resonance?

12/21/12

33

New Perspectives on Marketing


The

strategy and tactics behind marketing programs have changed dramatically in recent years as firms have dealt with enormous shifts in their external marketing environments:

Digitalization and connectivity (through Internet, intranet, and mobile devices) Disintermediation and reintermediation (via new middlemen of various sorts) Customization and customerization (through tailored products and ingredients provided to customers to make products themselves) Industry convergence (through the blurring of industry boundaries)
12/21/12

34

Implications for the Practice of Brand Management of implications for the They have a number

practice of brand management. Marketers are increasingly abandoning the massmarket strategies that built brand powerhouses in the 1950s, 1960s, and 1970s to implement new approaches. Even marketers in slow-moving, traditional industries are rethinking their practices and not doing business as usual.

12/21/12

35

Integrating Marketing Programs and Activities


Creative

and original thinking is necessary to create fresh new marketing programs that break through the noise in the marketplace to connect with customers. Marketers are increasingly trying a host of unconventional means of building brand equity.

12/21/12

36

Personalizing Marketing
All

of these approaches are a means to create deeper, richer, and more favorable brand associations. Relationship marketing has become a powerful brand-building force.

Can slip through consumer radar May creatively create unique associations May reinforce brand imagery and feelings

Nevertheless,

there is still a need for the control and predictability of traditional marketing activities. Models of brand equity can help to provide direction and focus to the marketing programs.
12/21/12 37

Personalizing Marketing Concepts


Experiential

marketing One-to-one marketing Permission marketing

12/21/12

38

Reconciling the New Marketing Approaches


One-to-one,

permission, and experiential marketing are all potentially effective means of getting consumers more actively involved with a brand.

12/21/12

39

Experiential Marketing
Focuses

on customer experience Focuses on the consumption situation Views customers as rational and emotional elements Uses electric methods and tools

12/21/12

40

One-to-One Marketing: Competitive Rationale


Consumers

help to add value by providing information. Firm adds value by generating rewarding experiences with consumers.

Creates switching costs for consumers Reduces transaction costs for consumers Maximizes utility for consumers

12/21/12

41

One-to-One Marketing: Consumer Differentiation


Treat

different consumers differently

Different needs Different values to firm


Current Future (lifetime value)

Devote

more marketing effort on most valuable consumers (and customers)

12/21/12

42

One-to-One Marketing: Five Key Steps


Identify

consumers, individually and addressably Differentiate them by value and needs Interact with them more cost-efficiently and effectively Customize some aspect of the firms behavior Brand the relationship

12/21/12

43

Permission Marketing (Seth Godin)


Encourages

consumers to participate in a long-term interactive marketing campaign in which they are rewarded in some way for paying attention to increasingly relevant messages.

Anticipated Personal Relevant

Permission

marketing can be contrasted to interruption marketing.

12/21/12

44

Five Steps in Permission Marketing


1. 2.

3. 4. 5.

Offer the prospect an incentive to volunteer. Offer the interested prospect a curriculum over time, teaching consumers about the product. Reinforce the incentive to guarantee that prospect maintains the permission. Offer additional incentives to get more permission from the consumer. Over time, leverage the permission to change consumer behavior toward profits.
12/21/12 45

Integrating the Brand Into Supporting Marketing Programs

Supporting marketing mix should be designed to enhance awareness and establish desired brand image. Product strategy Pricing strategy Channel strategy

12/21/12

46

Product Strategy
Perceived

quality and value

Brand intangibles Total quality management and return on quality Value chain

Relationship

marketing

Mass customization Aftermarketing Loyalty programs

12/21/12

47

Pricing Strategy
Price

premiums are among the most important brand equity benefits of building a strong brand. Consumer price perceptions

Consumers often rank brands according to price tiers in a category.

Setting

prices to build brand equity

Value pricing Everyday low pricing

12/21/12

48

Channel Strategy
The

manner by which a product is sold or distributed can have a profound impact on the resulting equity and ultimate sales success of a brand. Channel strategy includes the design and management of intermediaries such as wholesalers, distributors, brokers, and retailers.

12/21/12

49

Channel Design
Direct

channels

Selling through personal contacts from the company to prospective customers by mail, phone, electronic means, in-person visits, and so forth

Indirect

channels

Selling through third-party intermediaries such as agents or broker representatives, wholesalers or distributors, and retailers or dealers Push and pull strategies

Web

strategies
12/21/12 50

Push and Pull Strategies


By

devoting marketing efforts to the end consumer, a manufacturer is said to employ a pull strategy. Alternatively, marketers can devote their selling efforts to the channel members themselves, providing direct incentives for them to stock and sell products to the end consumer. This approach is called a push strategy.

12/21/12

51

Channel Support
Two

such partnership strategies are retail segmentation activities and cooperative advertising programs. Retail segmentation

Retailers are customers too

Cooperative

advertising

A manufacturer pays for a portion of the advertising that a retailer runs to promote the manufacturers product and its availability in the retailers place of business.

12/21/12

52

Web Strategies
Advantage

of having both a physical brick and mortar channel and a virtual, online retail channel The Boston Consulting Group concluded that multichannel retailers were able to acquire customers at half the cost of Internet-only retailers, citing a number of advantages for the multichannel retailers.

12/21/12

53