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Just What is Brand?
• • It is 8:30 am and I am lacing up my Nike trainers ready for the morning jog. My Apple I-Pod is primed with a stash of Eminnem tracks and there’s a can of Pepsi at the ready for when the thirst hits. In half an hour I’ll be back. With my new Gillete shaver at the ready. I’ll shower and then head for airport. I have some shopping to do before I board the Jet airways Plane to take me to a holiday destination that I booked through makemytrip.com. I will grab a burger for lunch in Mcdonalds or maybe just a coffee in starbucks and eat later in Pizza hut.
Just What is Brand
• One things for certain: by the end of the day, I’ll be exposed to a multitude of companies and celebrities, each one vying for attention and yelling in my ear – “Choose me, not her, choose us, not them”. • What is it about these businesses that grabs my attention? Is it just the price of their goods or services? Is it the products themselves? The answer is a resounding “NO” on both counts. • Some of these companies command a much higher price than their rivals, yet still out shell them everyday. And the products are not always better quality – often it’s the same product with just a different label, glued or stitched in place when the factory bell rings and assembly line changes. Is there a massive difference between an I- pod and every other MP3 player on sale? Not if its just down to playing an MP3 track. How can starbucks charge so much for a coffee when if its thirst you’re looking to quench, you can buy a cup of tea or coffee at most small café’s
place. and attributes or benefits. •Branding could be done for product (physical good. animal or bird. •Branding contain – inherent product meaning. place. person. retail store. or an idea. and things or objects. organization. •Branding basis – people. •Brand = product + other differentiating dimensions (physiological and psychological) . scientific term.What is a Brand? •Old Norse word – brandr – to burn.
or related service. .Product Levels? Core benefits – fundamental need or want. benefits. Generic product – basic offering. Augmented product – differentiating and distinguishing attributes. Potential product – ideal and in future. Expected product – normal expectation from a product in the market.
Coffee. M F Hussain. fruits. etc. •Physical good . •Services – KPMG.Consumer products. private or store brands. and Entertainment – Cricket. switzerland. e-bay. Child Labour. •On-line product and services – flicker. Wal-Mart.Branding is Universal (anything can be branded) •Commodity – Chicken. Energy firms. Arts. salt. Banks. shows like Indian Idol •Geographic Locations – Australia. water. Alaska. etc . etc. Airlines. Incredible India •Ideas and Causes – Red Cross.myntra etc. •Retailers and distributors – Big Bazaar. •Sports. High-tech products. Business to Business. vegetables.
.Determinants of Brand Longevity •Vision of the mass market? •Managerial persistence? •Financial commitment? •Relentless Innovation? •Asset leveraging.
complex brand families. decreasing brand loyalty. Increased cost. eroding traditional media. . Increased accountability. Media fragmentation. changes in advertising and promotional expenditures. too many private labels. difficulty in differentiation. maturing market. job turn-over.Some Challenges… Savvy consumers. Brand proliferation. . new options. increasing trade power. Increased competition.
Types of Brands .
than big ticket items. CG products are bought much more frequently. • Frequency of purchase/use/experience. . as the name suggests. through the use of e-commerce many have started to sell direct to consumers. CG products are traditionally dependent on wide distribution networks.Differentiating features of brands • How purchased/used/experienced. However.
Differentiating features of brands • Amount of thought/research/comparison typically undertaken prior to purchase/experience. The consumer decision process will vary according to how much risk they perceive in buying a product or service – the risk will depend on price. which offer a wide variety but little customization. trust in the brand and other factors. • Degree of customization available. quality variance. . The intangibility of services makes them much more suited to customization than CG products.
.All brands have one goal – to enhance their perceived value.
Different types of brands • • • • • • • • • Product Brands Service Brands E-brands Media Brands Not-for-profit Brands Nation Brands Government Brands Global Brands Organization Brands .
• Balance of product to service Almost exclusively tangible product.Product brands: FMCG Characteristics: • Cost: Inexpensive. customercare lines). • How purchased Mainly through conventional FMCG distribution networks – supermarkets. relatively large volume outlets. . vending machines. although service component can be present (eg. other shops.
likely to be habitual.Product brands (FMCG: cont. • Degree of customisation Very little.) • Frequency of purchase : Frequent. • Degree of research/thought/search prior to purchase Typically none. Often wide range of variants but no real customisation for individual customers. . the brand is part of the consumer repertoire.
Product brands (Big Ticket Items) Characteristics: • Cost: Expensive. during and after purchase. • Balance of product to service Service is likely to take on a more important role. . before.
investment is more – emotional than financial. although with luxury goods. . • Degree of customization Can be considerable.Product brands (Big Ticket Items) • How purchased Traditionally through specialised outlets (luxury = high status outlets) but increasingly more widely distributed. research and comparison goes into the decision. Frequency of purchase: Infrequent. • Degree of research on purchase – A great deal of thought.
Although a product component may be involved. or even thousands of staff. These are more complex than product brands for two reasons: • because it is always harder to brand something you can’t touch • because they are delivered directly by employees.Service brands Service brands are characterized by the need to maintain a consistently high level of service delivery throughout hundreds. it is essentially the service that is the brand. .
Service Brands Characteristics: • Intangibility Service brands can seldom be tried out in advance. • Inseparability of production and consumption Services cannot generally be stockpiled in advance but are produced and consumed in real time. which requires the establishment of a greater degree of trust. . • Inconsistency Since humans are usually instrumental in delivering services.
hotels.Different categories of service brands: • • • • Classic service brands eg. Pure service providers eg. travel agents and estate agents. car rentals and banks. advisors of all kinds – accountancy. – Retail Brands are complex and multifaceted. fashion stores and restaurants. member associations Professional Service Brands eg. supermarkets. airlines. Agents eg.) Retail brands – eg. • . – Consumers have a much more involved and interactive experience with retail brands. The meanings of retail brands are more heavily – Derived from consumer’s direct experience rather than from advertising. (This category of a brand has become endangered by the rise of the Internet. management consultancy.
however. – The Internet is developing a more direct style of relationships between customers and brand owners.e-brands’ primary activity is to deliver physical products like Amazon. and all those interactions – give an opportunity for strengthening the brand identity.In both cases. .e-brands focus on delivering a service or experience . but the underlying principles of branding are unchanged.Brands from other spheres • E-brands – The Internet is a medium that presents new challenges for brand owners. • A distinction needs to be made between ‘e-tailers’. . it is the intangibles. the brand values that will attract online customers.com .
and promote it at every turn. • they don’t have the deep pockets of corporations who can afford to hire brand specialists • they don’t have staff whose job it is to protect the integrity of the brand. magazines. and on fund-raising . newspapers. television channels. • But successful branding can have a great effect on raising awareness of the charity and its mission.• Media brands eg. • Not-for-profit organization brands – Non-profits are often at a disadvantage when it comes to branding.
• Government brands – Governments and political parties often have strong brands as they are centerd on passionately held core values. However they were almost always marketed according to local conditions. . Branding is important in both securing votes and in international diplomacy. • Global brands – Companies have been marketing their products and brands in different countries for decades.• Nation brands – New ways of thinking lead to countries being positioned as tourist destinations. enhancing status of goods and services produced. and aiding under-developed countries.
recognition and sales all over the world • The products meet the same human needs world-wide. McDonald’s). German cars. its country of origin. even though the physical product may be adapted locally (eg. 1999] • Strong in home market – cash flow generated from domestic market enables the company to fund a global roll-out • At least minimum level of awareness. American jeans). • Consistent positioning • Consumers value the provenance of the brand. and even associate the country’s expertise with specific products (eg. .Features of Global Brands [Quelch. • Focus on a specific product category • Use single corporate brand name.
Nestle UK’s head of consumer insight and planning for beverages] . The brand’s core values can be global. It is the think global. act local strategy. they don’t have global consumers. To bring it to life you need to be flexible and re-enact the brand as appropriate.Act local. although the brand needs to have local relevance. think global “While there are global brands that have a global presence.” [Gavin Emsden.
especially in pharmaceuticals. . • The Internet allows adoption of a standardized global strategy without investing in distribution systems in each country. financial services and utilities. • The threat of parallel imports from low-price to high-price countries.The decision whether to standardize or localize? Several other factors may affect the decision: • Regulatory environments vary from country to country.
. • The organization brand represents the impression that people inside and outside the organization have. it is wider than both.It relates to all stakeholders and in many cases is rarely advertised. .Organization brands • What is an organization brand? – It is neither a product/service nor a corporate brand.
Strategic brand management process .
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 .
Brand Identity .
BRAND IDENTITY BRAND IDENTITY IS A UNIQUE SET OF BRAND ASSOCIATIONS THAT THE BRAND STRATEGIST ASPIRES TO CREATE OR MAINTAIN THESE ASSOCIATIONS REPRESENT WHAT THE BRAND STANDS FOR & IMPLY A PROMISE TO CUSTOMERS FROM THE ORGANIZATION MEMBERS .
BRAND IDENTITY( contd.)
BRAND IDENTITY SHOULD HELP ESTABLISH A RELATIONSHIP BETWEEN THE BRAND & THE CUSTOMER BY GENERATING A VALUE PROPOSITION INVOLVING FUNCTIONAL, EMOTIONAL, OR SELF-EXPRESSIVE BENEFITS
• Brand identity is a bundle of mental and functional associations with the brand. Associations are not “reasons-to-buy” but provide familiarity and differentiation that’s not replicable getting it. These associations can include :
– – – – signature tune (for example - Britannia “ting-ting-ta-ding”) trademark colors (for example - Blue color with Pepsi) logo (for example - Nike) tagline (for example - Apple’s tagline is “Think different”), etc.
Brand identity is the total promise that an organization makes to consumers. The brand can be perceived as a product, a personality, a set of values, and a position it occupies in consumer’s minds. Brand identity is all that an organization wants the brand to be considered as. It is a way of externally expressing a brand to the world.
BRAND IDENTITY (contd.)
CONSISTS OF 12 DIMENSIONS OF BRAND ORGANIZED AROUND 4 PERSPECTIVES (Also called Aekar Model of Brand Equity):
• As a product: product scope, product attributes, quality/value, uses, user, country of origin • As an organization: organizational attributes, local vs. global • As a person: brand personality, brand-customer relationships • As a symbol: visual imagery/metaphors, heritage CORE & EXTENDED IDENTITY: • Core identity: central timeless essence of the brand – remains constant as brand travels to new markets/products • Extended identity: includes various brand identity elements, organized into cohesive & meaningful groups
HAS ONE OF THE MOST SUCCESSFUL BRANDS. THE BRAND AS SYMBOLIZED BY THE GOLDEN ARCHES HAS A RICH IDENTITY THAT PROVIDES SEVERAL LINKS TO THE CUSTOMER . WHICH DOES ABOUT $26 BILLION OF BUSINESS IN 79 COUNTRIES.A McDonald’s Brand Identity MCDONALD’S. HOWEVER.
McDonald’s Core Identity • Value offering: McDonald’s provides value as defined by the product. good-tasting at any McDonald’s in the world • Service: fast. accurate. special offers. friendly. & buying experience given the price • Food quality: consistently hot. & hassle free • Cleanliness: operations are always spotless on both sides of the counter • User: families & kids are a focus. but serves a wide clientele .
time-saving service. fun Relationship: family/fun associations are inclusive. & gather. children’s entertainment Sub-brands: Big Mac. McDonald’s is part of the good times Ronald McDonald’s Children’s Charities engender respect. all-American. & admiration Logo: Golden Arche Characters: Ronald McDonald. hamburgers. work.McDonald’s Extended Identity • Convenience: Most convenient. cheerful. McDonald’s dolls & toys . features efficient. Extra Value Meals. genuine. & serves easy-to-eat food Product scope: fast food. Ronald McDonald House Brand personality: family oriented. Happy Meals. liking. quick-service restaurant – located close to where people live. Egg Mc Muffin. … • • • • • • • • Corporate citizenship: Ronald McDonald children’s Charities. wholesome.
premiums.McDonald’s Value Proposition • Functional benefits: good-tasting hamburgers. & feeling of special family times • Adults – warmth via link to family events & experiences reinforced by the McDonald’s emotional advertising . & drinks that provide value. extras such as play grounds. prizes. fries. & games • Emotional benefits: Kids – fun via excitement of birthday parties. relationship with Ronald McDonald & other characters.
Personality includes character and attitude. Reflection – What does the brand represent in the customers mind or rather the customer mindset as reflected on the brand Self image – How does the customer see himself when compared to the brand. It may include product features. . symbols and attributes. Personality – Personality defines what personality will the brand assume if it were a person. as the name suggests comes in the form a prism with 6 different traits at each end of the prism. These 6 traits are: Physique – Physique is the basis of the brand. Relationship – The strength of the relationship between the brand and the customer. its origins and the values it stands for. Example – A customer might see himself capable or incapable of buying a BMW car.Brand Identity Prism • • • • • • • The brand identity prism. Culture – Culture takes a holistic view of the organization. It may represent beliefs and associations in the human world.
trademark. • Its tagline in India “YEH HAI YOUNGISTAN MERI JAAN” exemplifies that essence. • The external and internal indicators of Brand Identity have been modified many times. etc have undergone many changes over time but the distinct identity of Pepsi has been maintained.Pepsi • Pepsi’s brand identity has transformed over the years. but primarily it has remained as a youthful brand which empowers people to enjoy their youth. • We also see a consistency in brand positioning for Pepsi as a Youth oriented brand.Eg. • Its logo. .
Kapferer’s Brand Identity Prism (Pepsi) .
M. a sphere with 3 different colors aids brand recall. The brand endorsers over the years. It’s logo. Sachin Tendulkar to Ranbir Kapoor. starting from Shahrukh khan.Sources of Brand Equity (Pepsi) • • • Pepsi’s primary sources of brand equity are derived from its unique name with an American connotation to it. Its innovative Campaigns are also a predominant source of Pepsi’s Brand Equity in India.S Dhoni have been a major source of equity for the brand The brand has always looked for young faces in order to relate with its youth target audience Huge consumer base of more than 200 million across the world. • • • .
. thus bringing the brand closer to its Customers • ‘The Game’. • Pepsi’s wide Product Portfolio helps in increasing the depth and Breadth of Brand Awareness. a series of five gaming-based television films developed specially for the ongoing IPL season • “Change the Game” and “First Ball ka Kaptan” considering the cricket world cup and T-20 world cup have been successful in leveraging the love for the game and reinforce the association of the game with Pepsi • The CSR activities of the company also generate a lot of Brand equity. It’s the only soft drink manufacturer with a positive water balance in India.Sources of Brand Equity (Pepsi) • Several campaigns like “Youngistaan ka Wow” targeted at Youth and celebrating their audacious self belief.
Brand Equity .
. • Brand Equity exists as a function of consumer choice in the market place. • It can also be defined as the differential impact of brand knowledge on consumers response to the Brand Marketing. • The concept of Brand Equity comes into existence when consumer makes a choice of a product or a service.Brand Equity • Brand Equity is the value and strength of the Brand that decides its worth. It occurs when the consumer is familiar with the brand and holds some favorable positive strong and distinctive brand associations in the memory.
– By evaluating the increased volume of sales created by the brand compared to other brands in the same class. – The price premium charged by the brand over non-branded products.Measures of Brand Equity • Brand Equity can be determined by measuring: – Returns to the Share-Holders. – From the prices of the shares that an organization commands in the market (specifically if the brand name is identical to the corporate name or the consumers can easily co-relate the performance of all the individual brands of the organization with the organizational financial performance) . – Evaluating the Brand’s earning potential in long run. – Evaluating the Brand Image for various parameters that are considered significant.
although some might be shifted to a new name and symbol .Brand Equity Assets and Liabilities • Brand equity has been defined as a set of brand assets and liabilities linked to a brand. its name. and its symbol that add to or subtract from the value provided by a product or service to a firm and/or to that firm's customers • If the brand's name or symbol should change. some or all of the assets or liabilities could be affected and even lost.
differ by context. they can be grouped into five categories: – Brand Loyalty – Brand Name Awareness – Perceived Quality – Brand Associations – Other Proprietary Brand Assets .Brand Equity Assets and Liabilities The assets and liabilities on which brand equity is based will. according to Aaker (1991). However.
it is expensive to gain new customers and relatively inexpensive to retain existing ones. since customers expect the brand to be always available. and this involves pronunciation and spelling . especially when the existing customers are satisfied or happy with the brand. • Brand Name Awareness: – People will often buy a familiar brand because they are comfortable with the familiarity or they assume that a brand that is familiar is probably reliable and of reasonable quality. they will avoid the product – and that translates into the loss of sales. – Competitors may even be discouraged from spending resources to attract already satisfied customers. – Brand names should be easy for customers to visualize. – Higher loyalty means greater trade leverage. – When consumers feel uneasy about a product's name.Brand Equity Assets and Liabilities • Brand Loyalty: – For any business.
– Perceived quality means something different for Compaq or IBM than for Coca-Cola or Pepsi. especially when a buyer is not motivated or able to conduct a detailed analysis. in turn. which is not necessarily based on knowledge of detailed specifications. – It can also support a premium price. . which.Brand Equity Assets and Liabilities • Perceived Quality: – A brand will have associated with it a perception of overall quality. – Perceived quality can be the basis for a brand extension. then the assumption will be that it will have high quality in a related context. can create gross margin that can be reinvested in brand equity. – The quality perception may take on somewhat different forms for different types of industries. – Perceived quality will directly influence purchase decisions and brand loyalty. If a brand is well-regarded in one context.
perhaps inferior. . basis for competition. of the car brand Jaguar may make the experience of owning and driving one "different". for example. an association can be a barrier for competitors. there will be a credibility issue. Thus. – The associations. – If they attempt a frontal assault by claiming superiority via that dimension.Brand Equity Assets and Liabilities • Brand Associations: – The underlying value of a brand name often is based upon specific associations linked to it. – If a brand is well positioned upon a key attribute in the product class (such as technological superiority). – They may be forced to find another. then competitors will find it hard to attack.
– A patent.Brand Equity Assets and Liabilities • Other Propriety based Assets: – This fifth category represents such other proprietary brand assets as patents. – These assets can take several forms. – Brand assets will be most valuable if they inhibit or prevent competitors from eroding a customer base and loyalty. . or package. trademarks. if strong and relevant to customer choice. and channel relationships. symbol. can prevent direct competition. a trademark will protect brand equity from competitors who might want to confuse customers by using a similar name. For example. A distribution channel can be controlled by a brand because of a history.
Designing marketing activities from a branding perspective .
4 major drivers of the new economy .
Digitalization & Connectivity (through internet. intranet. mobile devices) .
II Disintermediation & Reintermediation (via new middlemen of various sorts) .
III Customization & Customerization (through tailored products & ingredients provided to customers to make product themselves) .
Industry Convergence IV (through the blurring of industry boundaries) .
Impact to… Integrating marketing programs and activities .
Impact to… Personalizing Marketing • Experiential marketing • One-to-One marketing • Permission marketing .
Product Strategy .
Perceived Quality and Value • Perceived quality: is customers’ perception of the overall quality or superiority of a product or service compared to alternatives and with respect to its intended purpose • It is how consumers form their opinions of the quality and value of a product .
General dimensions of the product • Performance: primary characteristics of product (low. high or very high) • Features: secondary elements of a product that complement primary characteristics • • • • • Conformance: degree of the product meet specifications Reliability: consistency of performance over time Durability: expected economic life of product Service ability: ease of servicing the product Style and design: appearance or feel of quality . medium.
• Relationship benefits: value based on personalized service. Symbolism. quality • Process benefits: ease of access to product info. ex. convenient transaction. strong emotional relevance.. personality • 3-D Marketing (McKinsey Consulting) emphasizes 3 product benefit dimensions: • Functional benefits: product and performance attributes. . Ex. differentiated loyalty rewards.Brand Intangibles • Brand attitude may also depend on more abstract product imagery.
Relationship Marketing • Relationship marketing: is based on the premise that current customers are the key to long term success. • 3 important relationship marketing issues: • Mass Customization • After marketing • Loyalty Programs .
Pricing Strategy .
Consumer Price Perceptions • Price Bands: a range of acceptable prices that indicate the flexibility and breadth marketers can adopt in pricing their brands within a tier • In many categories. • Value-based pricing strategies: attempting to sell the right product at the right price to better meet consumer wishes . price may infer the product quality. And it becomes an important factor in purchase decisions.
product costs and product prices that satisfies needs and wants of consumers and the profit targets of the firm.Value Pricing • The objective of value pricing is to uncover the right blend of product quality. • Effective value-pricing strategy should strike the proper balance among the following: – Product design and delivery – Product costs – Product prices .
the nature of price discount and promotions over time that maintains consistently low • Be careful!!! Creating a brand association to “discount” or “don’t pay full price” diminished brand equity .Everyday Low Pricing • Everyday low price (EDLP) has received increased attention as a means of determining price discounts and promotions over time. • Pricing approach ..
Channel Strategy .
. and retailers.Channel Strategy • Marketing channel are defined as “set of interdependent organizations involved in the process of making a product or service available for use or consumption” • Channel strategy includes the design and management of intermediaries such as wholesellers. brokers.
internet. telephone and catalogs. phone and etc. retailers or dealers.Channel Design • Direct channel: means selling through personal contacts from the company to prospective customers by mail. wholesalers. • Winning channel strategies – “integrated shopping experience” that combines physical stores. . • Indirect channel: sell through third-party intermediaries such as agents.
and clothing stores. located in prime shopping avenues in metropolitan centers .Example: Nike (sells shoes. sporting goods stores. and clothing catalogs. Nike Hockey. • Niketown. • Outlet Stores: outlet stores feature discounted Nike merchandise. and equipment product) • Retail: Nike products are sold in retail locations such as shoe stores. sporting goods.com: Nike’s e-commerce site allows consumers to place internet orders for a range of products. • Catalog retailers: Nike’s product appear in numerous shoe. • Branded Nike Town Stores: Nike Town Stores. apparel. • Specialty stores: Nike equipment from product lines such as Nike Golf. . department stores.
Direct channels are preferable when… Product information needs are high Product customization is high Product quality assurance is important Product lot size is important Logistics are important .
Indirect channels are preferable when… A broad assortment is essential Availability is crucial After-sales service is important .
Indirect Channel • Pull and Push Strategies • Channel Support (Marketing Partnership) – Retail segmentation •Retailers are customers too. – Cooperative advertising •Co-op advertising: a manufacturers pays for a portion of the advertising that a retailer runs to promote the manufacturer’s product. . special delivery system. •Different retailers may need different product mixes. or customized promotions.
mail. or resources • Other means – Department stores – Via phone. or email • Web Strategies .Direct Channel • Company-Owned Stores – Show the product in the way that the company want – Some company stores might lack of skills.
Take a trip to a department store. Which categories or brands seem to be receiving the biggest in-store push? What unique instore merchandising effort do you see? (5 marks) 2. Take a trip to a supermarket. Evaluate the in-store marketing effort.1. Observe the extent of private label brands. In which categories do you think private labels might be successful? Why? (5 marks) .
Customer based Brand equity .
.Concept of Customer based Brand Equity • Customer-based brand equity – Differential effect (brand equity arises out of differences in consumer responses) – Customer brand knowledge – Customer response to brand marketing • A brand has positive customer based brand equity when consumers react more favorably to a product and the way it is marketed when the brand is identified than not.
Concept of Customer based Brand Equity • Customers will be more accepting of a new brand extension for a brand with positive customer based brand equity. • Less sensitive to price increases and withdrawal of advertising effort • And more willing to seek the brand in a new distribution channel. .
Concept of Customer based Brand Equity • A brand has negative customer based brand equity if consumers react less favorably to marketing activity for the brand compared with an unnamed or fictitiously named version of the product. .
• Brand equity ultimately depends on what resides on the minds of the consumers. felt. . • The difference in response are a result of consumer’s knowledge about the brand.Concept of Customer based Brand Equity • Differential effect : brand equity arises out of differences in consumer responses. what they have learned. seen and heard about the brand .
.Concept of Customer based Brand Equity Customer’s differential responses which makes brand equity are reflected on : • Perceptions • Preferences and behavior related to all aspects of brand marketing.
Customer based brand equity model .
the depth is that how likely it is for a brand element to come to mind and a breadth is the range of purchase and the situations in which the brand comes to mind of the consumers.brand recall (how easily customer recall the brand without showing a cue while making purchase decision or thinking the product category). We must consider both the breadth and depth of the brand awareness.It's means broad awareness of the brand. . A brand we easily recall has a deeper level of brand awareness and breadth is related to the product knowledge in the memory of the consumer. .The first step in building a brand equity is the brand awareness that contains two parts: brand recognition (how easily customer identify a brand after exposing some cue or a physical product) .Customer based brand equity model • Brand Salience: .
and serviceability Service effectiveness. efficiency. Durability. Reliability: measures consistency of performance over time and from purchase to purchase. durability. means the expected economic life of the product 3.1. as follows: – – – – – Primary ingredients and supplementary features Product reliability. Serviceability. the ease of repairing the product if needed. 2. and empathy Style and design Price • Customers view performance or measure performance in three ways: . Often. Brand performance is directly related with the features of the product that differentiates it from others. . Five important types of attributes and benefits often underlie brand performance.Customer based brand equity model • Brand performance: It is describes how well the product or service meets customers' more functional needs. the strongest brand positioning relies on performance advantages of the brand.
Demographics factors (gender. race. • Imagery refers to more intangible aspects of the brand. • It mainly depends on the intrinsic properties of the product or service. family) affect the first two types of aspects while psychographics affect on the personality and values. and customers can form imagery associations directly from their own experiences or through advertising or some other source of information indirectly. heritage and experiences . .Personality and values .Customer based brand equity model Brand Imagery: • It is the second part of brand meaning and also called the emotions part of brand meaning (Brand performance is the logic part). age. income. including the way how well the brand attempts to meet the customers' psychological or social needs.Purchase and usage situation . • Intangible aspects of the brand are as: .User profiles .History.
The company always consider customers' priorities in mind and create interest and fun so that customers enjoy while consuming the brand. which customers form by putting together all the different brand performance and imagery associations.Customer based brand equity model Brand judgments: • Brand judgments are customers' personal opinions about and evaluations of the brand. . • Customers usually make four types of judgments as: – Brand Quality: brand attitudes generally depend on specific attributes and benefits of the brand. innovative or market leader. – Brand Credibility: judgments about the company or organization behind the brand. Customers may see that whether the brand is competitive. – Brand Consideration: customers think or consider the brand while making purchase decisions. – Brand Superiority: customers view the brand as unique and better that other.
– Warmth: the brand makes consumers feel a sense of calm or peacefulness. The emotions evoked by a brand can become so strongly associated that they are accessible during product consumption or use. comfort. and self-assurance. – Social approval: consumers feel that others look favorably on their experience.Customer based brand equity model Brand Feelings: • These are customers' emotional responses and reactions to the brand. playful. – Fun: makes consumers feel amused. • The following are six important types of brand-building feelings. joyous. accomplishment. or fulfillment while using the product. behavior and so on. cheerful. – Self-respect: consumers feel a sense of pride. lighthearted. . and so on – Excitement: makes consumers feel energized. – Security: the brand produces a feeling of safety.
or willing to invest time. – Sense of community: customers feel kinship or affiliation with other people associated with the brand. – Attitudinal attachment: customers should go beyond having a positive attitude to viewing the brand as something special in a broader context. always use between two approaches or listen the brain (make the decision) in two ways: – Cognitive-based approach (logics) – Affective-based approach (feelings) . energy. • Consumers while making purchasing decisions or choosing the brand. – Behavior loyalty: in terms of repeat purchase and the amount or share of category volume attributed to the brand.Customer based brand equity model Brand Resonance: • The final step of the model focuses on the ultimate relationship and level of the identification that the customer has with the brand. – Active engagement: brand loyalty occurs when customers are engaged. Brand resonance describes the nature of the relationship. money or other resources in the brand beyond those expended during purchase or consumption of the brand.
Customer based brand equity model If we look the above fig. we have seen that there are two paths or ways from brand salience to brand resonance and consumer always choose one from them. CBBE pyramid. .
So marketers must consider the needs of customers who uses this approach while developing brands. Hightech products that must demonstrate features by the company . • Eg.Mobile brands. focus on attributes and features mainly.Customer based brand equity model • Cognitive-based approach Brand salience – Brand performance – Brand judgements – Brand resonance Consumers mainly focus on the performance of the brand and give importance to the features and benefits of the brand (tangible parts) while making decisions.
. excitement and ability to do things without worrying of clothes getting dirty.Customer based brand equity model Affective-based approach Brand salience – Brand imagery – Brand feelings – Brand resonance • Consumers more focus or interested in intangible aspects of the brand and attach the brand and develop feelings from their experiences. touchs the emotions of the customers by developing campaigns that contain fun. • Eg.Surf Excel (daag ache hain!!). Marketers must focus on intangible aspects of the brand if they plan to touch/play with the emotions of consumers. .Coca-Cola uses the emotional approach while attracting consumers and so successful that it has capture the first position in the top brands' ranking of the world and has brand equity about 67 billion dollars.Mountain Dew ( Darr ke aage jeet hai!!) creates excitement and courage to do things that you fear. .
Brand Knowledge .
• Brand knowledge consists of a brand node in memory with a variety of associations linked to it. (Associated network memory model) .Making a brand strong: Brand knowledge • Brand knowledge is the key to creating brand equity. because it creates the differential effect that drives brand equity.
Making a brand strong: Brand knowledge • 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 . . .
.Brand knowledge – making a brand strong • Brand knowledge consists of 2 components – Brand awareness and Brand image • Brand awareness : strength of the brand node or trace in memory which can be measured as the consumer’s ability to identify the brand under different conditions.
Brand knowledge – making a brand strong
Brand image : is consumer’s perceptions about a brand as reflected by the brand associations held in consumer memory. Brand associations for Apple computers “ User friendly, Creative” Eg : Mc Donald’s- Quality, service, cleanliness and value, convenience, Ronald Mc Donald for kids
Sources of brand equity
• Customer based brand equity occurs when the consumer has a high level of awareness and familiarity with the brand and holds some strong, favorable and unique associations in memory. Brand awareness consists of • Brand recognition • Brand recall
Sources of brand equity
• Brand recognition :is consumer’s ability to confirm prior exposure to the brand when given the brand as a cue. • Brand recall: is the consumer’s ability to retrieve the brand from memory when given the product category, the needs fulfilled by the product category or a purchase or usage situation as a cue.
Sources of brand equity
• If consumer decisions are made at the point of purchase, then brand recognition is more important. • If consumer decisions are mostly based on settings away from the point of purchase, then brand recall is more important. Eg : Services, Online brands. • Consumers must actively seek the brand and retrieve it from memory when appropriate.
Advantages of brand awareness
• Learning advantages: Brand awareness helps in the formation and strength of the associations that make up the brand image.
• Consideration advantages Raising brand awareness increases the likelihood that the brand will be a member of the consideration set.
. • Creating a positive brand image takes marketing programs that link strong. and unique associations to the brand in memory.Establishing Brand awareness • Creating brand awareness means increasing the familiarity of the brand through repeated exposure. favorable.
Establishing Brand awareness • Advertising. characters. sponsorship . . packaging aid recall. publicity and public relations and outdoor advertising – can increase familiarity and awareness of that brand element. Jingle. promotion . logos. • Brand recall requires linkages in memory to appropriate product categories. event marketing. • Repetition increases brand recognizabilty.
– Brand benefits : are the personal value and meaning that consumers attach to the product or service.Strength of brand associations • Depends on – Brand attributes : are those descriptive features that characterizes a product or service. .
Some Branding Strategies .
Branding Strategy • Leveraging the power of the brand name to cover the market more effectively – Brand associations • Why do we do it? – Phenomenally expensive to create and promote a new brand name (at least 100 – 150 million dollars) – Too many brands out there – Increase productivity of current marketing programs .
What do you do? – Address segment needs more precisely • How can you use the equity of the brand name to address segment needs even better? – Sub-branding / umbrella branding .Case 1 • Your brand has a respectable market share but you want it to grow.
Air Trigo.Sub-branding • Creating new brands which are part of the parent brand family – expressed as suffixes of the parent brand. Air Mohawk are sub-brands of Nike Air. • e. I-Pod Mini.g Nike Air Jordan is a sub-brand of Nike which is the parent brand. I-Pod Shuffle and now the I-Pod Nano . • Apple I-Pod.
Ford Expedition. Ford Taurus. .Umbrella branding • When you have many sub-brands. then the common brand is known as the umbrella brand • E. Ford Thunderbird. Ford Ranger. Ford Freestyle.g. Ford Explorer. Ford Five Hundred. each linked to a common brand. etc. Ford Focus.
What do you do? – Address that section of the market which does not buy your product • How can you attract customers who do not buy into your brand’s equity? – Flanker branding .Case 2 • Your brand has a respectable market share and you want to protect it from growing competition.
or type but still falls within the same category of products • E. The new product may be a different size.Flanker Brand • Different brand name – same product – Extension of an existing brand to create another product or brand with increased market share.g. Thumps Up and Coca Cola in India . flavor.
The market is saturated and you are looking to diversify.Case 3 • Your brand is strong in your current market. What do you do? – Identify another product and give it the same brand name • If the new product is in the same product line – Line Extension • If the new product is from a completely different product line – Brand Extension .
• The concept of congruence determines the success of a brand extension strategy. Johnson’s baby powder and Johnson’s baby oil – high congruence.g. Nike shoes and Nike casuals. But imagine Lysol toilet bowl cleaner and Lysol toothpaste!!! . E.g.Brand Extension • Same brand name. new product line e. Reebok shoes and Reebok water.
. different product in the same product line.Line Extension • Same brand name. – E. IBM PCs and IBM laptops – Line extensions are safer strategies than brand extensions since congruence is always higher.g. Ivory soap and Ivory shampoo.
Case 4 • Your brand is sold in the B2B market as a component of another product.g. You want the brand to get consumer recognition and equity. What do you do? – Tell consumers about your brand’s presence in the final product • Ingredient branding: Branding an ingredient of the main brand. Intel Inside is an ingredient brand on IBM. computers . Compaq. • E. etc. Dell. which is often manufactured by a different company.
Case 5 • You have a strong brand but want to penetrate the market even better.g. • E. Nike and Apple . What do you do? • Complementary Branding OR Co-branding – when two or more mutually reinforcing brands get together to jointly promote themselves (one is not an ingredient of another).
• Apple is also offering a Nike sport music section on its iTunes music store. . • At the same time. Nike developed a series of products called Nike+. distance. • Now people can easily find Apple's Nike+ chip in Nike's retail outlets and Nike is also selling iPod nano in some of its retail store (Temporal 2011). • The only thing that people need to do is insert the chip into Nike+ running shoes and turn on their iPod nano or iPhone's relevant function during the exercise. • Nike targeting people who loves sport especially running. and calorific burn rates. featuring lists of songs chosen by well-known athletes. • According to this. • The chip can even track your physical condition through the song you are listening. at the same time they enjoy music and also wants to track their physical condition during the exercise.Eg – Nike and Apple • Both Nike and Apple are mature in their own field. • It provides users with instant information on time. Apple developed a tracking chip that can perfectly fit Nike's running shoes (Temporal 2011). • The data will be transfered from the chip in the shoes to runner's iPod nano or iPhone. speed.
Product-Market Matrix Product NEW Market Development Brand extension Line extension Diversification Brand extension Market Penetration OLD Sub-branding Flanker brands Co-branding Product Development Co-branding Ingredient branding Market OLD NEW .
Product Line-Brand Matrix NEW Flanker Brand Diversification Brand Name EXISTING Line Extension Brand Extension EXISTING Product Line NEW .
Brand Image .
Brand Image Brand Identity – is what the brand managers think about the brand. • Ex: It is communicated to customers in many ways like advertising. after sales service. It is the effect. It is the essence of all the impressions or imprints about the brand that have got imposed on the consumer’s mind. • Ex: Head n’ Shoulders – Anti-Dandruff shampoo . performance of the brand. It is the cause. etc. Brand Image – is what the customers think about the brand. packaging.
Error – failure of the brand to deliver its promises. • Ex: Ineffective whitening cream. • Ex: The imagery of the user of ponds is an Indian woman who is an achiever and is confident to step out and take the world on. Ponds has a secular imagery since it goes against the tradition and gives a new dimension to the beauty and womanhood. word of mouth. . Thus. Imagery – is the customer seen from the perspective of the product. litigation filed against the brand expectations of the customer. emotional associations of the individual customer with the brand.
• Brand Networking Technique – a drawing of network diagram based on the consumers experiences about the brand. • Ex: . The name of the brand is written in a circle at the center and is connected with the other circles by lines which carry a ‘+’ or ’-‘ sign indicating their favorable and unfavorable experience with the brand.
Focus Groups/Focus Group Discussion – used to effectively identify images perceived by the consumers for the brand in focus. wherein customers are asked to chose photos that best represents the products/brands. • Ex: Photo Sort. .
• Ex: LG “Life’s Good” Sentence Completion – is a slight modification where consumers are given an open-ended statement. • Ex: Respondents may be shown a scene where a group of youngsters are chatting and sharing ‘Ruffles’ potato wafers. • Ex: “I use Nokia mobile because…” Scenario Projection – respondents are shown some scenarios and asked to sate their responses.Constructive Techniques Word association – the brand name or advertisement slogan is given and consumers are asked to state the things that come to their mind. They may then be asked to imagine themselves to be a part of the crowd and asked questions relating to the experience of having ‘Ruffles’ in that situation .
The factors which explain the maximum variability of the sample could be considered as those explaining the image of the brand. which indicates the perception of patients towards H-World. the chain of hospitals. • Ex: Hypothetical table. which influence the image of the brand. It is a data reduction technique and hence the initial set of variables in the questionnaire would be grouped into appropriate factors. (1-Partially Agree.• Factor Analysis – is then used to identify the primary factors. 5-Completely Agree) Variables Satisfactory timings for outpatients Prescribed medicines are satisfactory Consulting after surgery is done satisfactorily Rating 5 3 1 .
BRAND PERSONALITY .
.it is based on the premise than consumers prefer something that exhibits their characteristics or their ideal values.Introduction • Brand identity and brand image helps brand managers to formulate strategies to make consumers relate to the product in a much easier way • Brand Personality.
.Some Indian Examples of Brand Personality The devil of “Onida” represents high technology and proved to be one of the successful brand personalities in India.
The adverstisement. . nurturing. packaging.• Sunsilk in India Sunsilk has a caring. gentle feminine Personality. and nature of the product convey the same.
Brand Anatomy of Coke Essence:Youth Benefit: Joyous Environment Attribute: A Frizzy Drink (Vivaciousness) .
Brand Personality Analysis of Santro car Sensory Small Light Fresh Bubbly Emotional Light-Hearted Convenient Youthful Dependable Fun Car Rational Manoeuvrable Quick .
When it necessary to have a brand personality • Brand personality is important when the product is socially conspicious ( products like automobile. clothing) or when the availability scarce ( as in the case of luxury goods) or when it is complex product ( in case of hi-tech products. . consumers rely on image rather on the features of the product which is a bit difficult to comprehend) or when the target audience is highly self-concious.
. and ruggedness.Tools to Build/ Understand Brand Personality • Brand Personality Scale The five main personality factors as identified by Aaker are sincerity. excitement. competence. sophistication.
Clasic. Careful Technical. Aggresive Characteristics Family –oriented. Genuine. Adventurous. Athletic Glamorous. Ethical. Strong. Blue-collar. No-nonsense . Surprising. Humorous. Pretentious. Happy Tough Rugged. Western. Sexy. Lively. Fun Independent. Caring Original. Warm. Artistic. Serious Leader. Gentle Hard-working. Efficient. Young. Confident. Real. Smooth. Old-fashioned Sentimenteal. Friendly. Innovative. Thoughtful. Sophisticated Feminine. Small town. Provocative Cool. Outgoing Unique. Contemporary.Analysis using brand personality scale Sincerity Down to Earth Honest Wholesome Cheerful Excitement Daring Spririted Imaginative Up-To-Date Competence Reliable Intelligent Successful Sophistication Upper Class Charming Ruggedness Outdoorsy Masculine. Good Looking. Flashy. Active. Ageless. All American. Exciting. Offbeat. Corporate. Influential Trendy. Secure. Conventional Sincere. Trustworthy.
Self-expression Model -states that the consumer sees the brand as the kind of person he/she wishes to be Example: This is the case with Royal Enfield’s Bullet.• Three Models to Build Brand Personality Aakers states the 3 models namely as: 1. Bullet’s personality is one that represents a “macho” character. . The rider is considered to be very masculine when he rides the bike.
Relationship Basis Model . The consumer wants to establish friendship with the brand and the brand need not represent their characteristics or their aspirational values.is liking to associate with a personality exhibited by the brand drives the purchase.• Three Models to Build Brand Personality 2. Example: ‘Eureka Forbes’ is seen as a friend for life and would fit this explanation of brand personality .
• Three Models to Build Brand Personality 3. Functional Benefits Representation model -the brand personality is used as a vehicle to state the benefits of the brand. Example: Devil Onida .
product. price.• Building Brand Personality via the 4 P’s and Packaging The 4 p’s of mktg. Relationship between consumers and brand personality Brand / Product Related Activity Keeps repositioning its brand Same character kept unchanged High price and exclusive distribution Frequent Promotions Sponsors relevant shows Offers a lot of warranty Cues Obtained No stable personality Consumers get comfortable with the personality Sophisticated Uncultured and Cheap Helpful and Supportive Reliable and Dependable . place and promotion along with packaging needs to be effectively handled to build a personality.
rather it intacts what the consumers want from a brand of that category.• Building Brand Personality Bottom-up This method takes an entirely different route. want and like. build a consumer personality profile. It uses four-step processing defining the target audience. The personality here is not used to convey the identity. . finding out what they need. and creating the product personality to match that profile.
Direct elicitation techniques .the consumers are given a questionnaire. which contains statements describing the brand users along with the characteristics of the brand.• Building Brand Personality Bottom-up 1. .
personalit/uniqueness traits. photosor. Indirect elicitation techniques . collage and analogies and methapors used to find out what kind of personalities are generally asociated with the brand. obituary. sentence completion. personification. brand marriage. .techniques such as word association. scenario projection psychodrama.Building Brand Personality Bottom-up 2.
Any Questions? .