Overview of Course

:Overview of Course What is a Brand? What is Brand Equity? Sources of Brand Equity Introducing a new product - creating brand equity (Brand Elements and Mix) Brand Positioning (Customers, Competition) Managing a brand reinforcing and building brand equity (Extensions, Marketing Mix) Outcomes and Measurements of Brand Equity Slide 3:

 Marketing Strategies Brand Equity Outcomes Source of Brand Equity (knowledge) Brand Equity: Sources & Outcomes

all strategic decisions: Consider the 3Cs when analyzing the alternatives Consumer Analysis Competitive Analysis Company Analysis Evaluate Alternatiaves Using + and - Recommendation

4Ps :Marketing Strategy Approach3Cs and 4Ps

Program Development Design Marketing Strategy Implement And Manage Marketing Strategy

Slide 7:Customer Analysis Segmentation Competitor Analysis Company Analysis Strategic Situation Analysis

market, etc. Define segments Competitive Analysis - Evaluate and identify what companies and products compete in the market, their images and positioning strategies and their strengths/weaknesses. Company Analysis - Assess organizational strengths and weaknesses, understand existing brand image.

strengths, weaknesses, opportunities, and threats? What is their competitive advantage Anticipate competitor actions What are their reaction patterns to our moves?

does firm rank relative to key rivals on each important measure of competitive strength or industry success factor? Does firm have a sustainable competitive advantage or disadvantage?

Capabilities Superior to Competition Difficult to Duplicate Applicable to Multiple Competitive Situations

Portfolio

Threats Match Match Con vert Con vert

Positioning Strategies Designing Marketing Strategy Strategic Situation Analysis Building Marketing Relationships

segments. Find the best match between the value requirements of each segment and the organization s distinctive capabilities. Targeting guides the development of the positioning strategy

Implementation Price Strategy Target Market Positioning Strategy Promotion Strategy Product Strategy Distribution Strategy

Analysis Building Marketing Relationships Market Program Development Product Strategy Promotion Strategy Price Strategy Distribution Strategy

marketing mix (4Ps): product, price, promotion, distribution (place) The marketing mix strategies implement the positioning strategy

Relationships Market Program Development Implement and Manage Strategy Product Strategy Promotion Strategy Price Strategy Distribution Strategy Gap Analysis Marketing Plan Marketing Audit

control the strategy on an ongoing basis Marketing plan : guidelines for activities to be implemented, who does what, dates, costs and expected results (e.g., sales forecasts) Track performance, look for new opportunities and threats in the future Planning process ongoing activity

3) What is the competition offering? If 1 matches 2 better than 3 matches 2, we have a potential competitive advantage.

strongest brands were 19% higher than weakest brands in category) What makes a brand strong? ownership of a single, relevant benefit in the consumer s mind perceived superior quality Valuable Asset

What Is a Brand? :What Is a Brand? Formally A proprietary trademark for a specific product or service Conceptually A promise from the company to its customers; A promise of specific benefits, quality, and value. Is unique vs. competitors It is the integration of rational and emotional elements transmitted to consumers.

Dimension The Brand Product/Service Brand Equity Functional Dimensions Perceived, subjective associations

Attributes and Characteristics that buyers normally expect and agree to when they purchase a product Additional product attributes, benefits, or related services that distinguish the product from competitors Potential Product All the augmentations and transformations that a product might ultimately undergo in the future

a customer. A product can be copied by a competitor; a brand is unique. A product can be quickly outdated; a successful brand is timeless. (Aaker 1993, pg. 1)

Products/Services Have functional value Can be copied by competitors Can become outdated, need to be updated to be timely

customers minds Are unique and proprietary Have functional and emotional value Are timeless Source of equity

and experiences received by the consumer and customer resulting in a distinctive image in their mind set based on perceived emotional and functional benefits. Timothy D. Ennis, Ennis Associates, Inc

critical to keeping competition from the consumer s consideration. A brand s preference is primarily built through differentiation and relevance. Insulate product from competition. Timothy D. Ennis, Ennis Associates, Inc

Consistent delivery Consideration Loyalty Premium price Personality Presence Increased leverage opportunities Name Brand Power Brand (Sony, Xerox, Coke, Mercedes, Virgin, Disney)

Informs Consumer About Quality (consistency) Provides Symbolic and Emotional Benefits (prestige/status) Leads to Innovations; More Variety and Choice

Extensions Power to Negotiate with Channel Members Provides Legal Protection for Unique Features Allows for Market Segmentation (same product category) Creates Barriers to Entry

relationship not a series of transactions

strategies and tactics Common Denominator for assessing the value of a brand

the basic product functions due to past investments in marketing the Brand. Timothy D. Ennis, Ennis Associates, Inc

to the brand. i.e., what is the value of the product/service with and without the name? Represents the added (subtracted) value endowed to the product as the result of the investment in the brand.

Product Introduction and Support Proliferation of New Brands and Extensions Little Technological Differentiation

more costly Distribution Channels have a lot power Proliferation of private labels (store brands) Easy to imitate on products features

a loyal franchise Weak Brands Make vague promises that may change over time Very general equity and low emotional commitment Have inconsistent reputations Little loyalty, rely on pricing and promotional incentives Strong versus Weak Brands

defined personalities Develop affection & loyalty of the public Become parents to sub-brands and brand extension Brands = Powerful emotional tools

Across a Number of Products Attached to Consumers/ NOT Products POWER BRANDS

Highest Valued Brands

McDONALD'S 29.40 9 DISNEY 29.21 MERCEDES 23.57 Data: Interbrand Corp., J.P. Morgan Chase & Co / 2007 Interbrand s Assessment is of Brand Power the fullest possible view of each brand s strengths and potential as a marketing and financial asset.

associations Personality Are all parts of the organization consistently reinforcing the brand promise? Who will get the credit (or blame) for product or service quality?

The Value of Brand Equity :The Value of Brand Equity

Customer-based brand equity is defined as the differential effect that knowledge about the brand has on consumer response to the marketing of that brand. Note that this can be positive or negative

Equity (knowledge) Brand Equity: Sources & Outcomes

Equity :Dimensions of Consumer Brand Equity BRAND KNOWLEDGE

brand under different conditions. Brand Image What are the perceptions about the brand held in consumers memory? Reflected by the brand associations.

cue. Brand Recall: Ability to correctly retrieve the brand when given the category or some other non-brand cue.

brands of the category are known Top of Mind Evoked set The more aware, the more likely to be chosen. Familiar brands have an advantage over unknown brands.

Top of Mind Brand Recall Brand Recognition

Associations Can Be Attached Familiarity - Liking Signal of Market Presence Brand Consideration

Good performance/quality Distinctive benefits compared to competitors Good packaging Adequate display of the brand Cross advertising through other products

Slogan. Ex. Milo te hace grande. Symbol, visual image easy to learn and remember Ex. Apple for Apple. Generating news about the brand Sponsoring events or institutions Adequate distribution

you think of the following brands? Brand Exercise

Brand Image Associations Type (attributes, benefits, and overall attitudes) Favorability (bad to good) Strength (low to high) Uniqueness (shared with competing brands or not) The evaluation of brand associations may be context or situationdependent!

information. Differentiate position A reason for consumers to buy Create positive attitudes and feelings Basis for brand extensions Add value to the brand, in the case where they are: Favorable, Strong, and Unique

respect to its intended purpose, relative to alternatives. Among all brand associations, perceived quality is the one most directly related to financial performance.

profits or resources to reinvest in building the brand. Can permit the brand to extend. Creates channel member interest. A principal positioning characteristic of the brand that creates differentiation.

product) Country of Origin (where it is made) Channels of Distribution (where it is purchased) Spokesperson or Endorser Sporting or Cultural Event

offers two potential benefits Facilitates access to overall company attitudes Allows for the creation of specific brand beliefs Example: AOL Instant Messenger

Favorable, Strong, and Unique Brand Associations in Memory)

Equity (knowledge) Brand Equity: Sources & Outcomes

or Image Change (Strengthen or Expand) Attitude Changes (Favorability) Changes in Customers Responses to Marketing Initiatives

Proliferation/dilution Short-term view Market Internal Globalization Emergence of large middle-class in developing countries Changes in demographics Opportunities

associations differ across segments and over time. Knowledge of levels of brand awareness is lacking. There are no indicators of the brand being tied to long-term success of the business that are used to evaluate the brands marketing efforts.

and its managers are quarterly or yearly. There are no consistent measures that evaluate the impact of the marketing program upon the longterm equity of the brand. There is often no long-term strategy for the brand.

Proliferation of Competitors Bias Toward Changing Strategies Pressure to Invest Elsewhere Short-Term Pressures

remove transaction barriers (e.g. information availability) How do you use the mix to develop brand awareness and communicate brand image? Brand Concept Management

perceived. Brand Identity - How strategists want the brand to be perceived. Brand Position - The part of the brand identity and value proposition to be actively communicated to a target audiences.

CUSTOMERIMPRESSIONS Styles Themes

and Image Brand name Logo/Symbol Characters Slogans Product Packaging Price Distribution Promotion

Imagery Protectable Legally, Competitively Adaptable Flexible, Updatable Transferable Within and across categories and cultures

Bottom-Line? Difficult to Quantify, but In many product categories the leading brands in 1925 remain #1 or #2 today E.g., Coca-Cola, Ivory, Gillette, Lipton, Colgate, and so on.

commitment to the customer and brand. Brands must be managed and updated to remain relevant to constituencies and form relationships. Treat your brand as your only truly unique and sustainable competitive advantage.