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1
BRAND PLANNING
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The Concept of Customer-Based Brand Equity
Customer-based brand equity Differential effect Customer brand knowledge Customer response to brand
marketing
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Building Customer-Based Brand Equity
The initial choices for the brand elements
Brand name, logo, symbol, character, slogan….
Marketing and other activities and supporting marketing programs
Products, services, communications, channels ….
Other associations indirectly transferred to the brand by linking it to some other entities
Other companies, brands, places, people ….
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Benefits of Customer-Based Brand Equity
Enjoy greater brand loyalty & be less vulnerable to competitive marketing actions
Command larger margins & have more inelastic responses to price increases and elastic responses to price decreases
Receive greater trade cooperation & support
Increase marketing communication effectiveness
Yield licensing opportunities Support brand extensions Bridge between past activities and future
direction
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Three Tools to Facilitate Brand Planning Holistic marketing requires careful
planning and implementation. To help guide these efforts, three models
of increasing scope are presented: 1) brand positioning model describes how to guide
integrated marketing to maximize competitive advantages;
2) brand resonance model describes how to create intense, activity loyalty relationships with customers; and
3) brand value chain model describes how to trace the value creation process to better understand the financial impact of marketing expenditures and investments.
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1. Brand Positioning Model Kevin Lane Keller, Brian Sternthal, and Alice Tybout
(2002), “Three Questions You Need to Ask About Your Brand,” Harvard Business Review, September, 80 (9), 80-89.
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Brand Positioning Brand positioning is about how we want
target customers to think about a brand with respect to competitors
A strong brand positioning helps guide organizational activities by clarifying the brand’s essence, what the brand helps the customer achieve, and how it is unique in doing so
Everyone in the organization should understand the brand positioning and use it as context for making decisions
Classic Brand Positioning Statement
To ___________________________________________________________________,(Target Group/Need)
_______________is the brand of __________________________________________. (Brand) Frame of Reference (Perceptual)
Competing Mainly With ___________________________________________________Frame of Reference (Competitive)
that ___________________________________________________________________, (Relevant Differentiating Benefit)
because ______________________________________________________________.(Reason To Believe)
The Brand Character is: ___________________________________________________
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Amazon.com Positioning
For the young at heart who value an infinite amount of choices, Amazon.com is the virtual cookie jar, competing mainly with all brick and mortar stores, that gives you the perfect combination of convenience, service, selection and price, because Amazon.com offers a truly global selection of products.
Brand Character: Simple, Friendly, Empowering
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Problems with Classical Positioning Statement
Ignores possibility of multiple points-of-difference Assumes only 1 key point-of-
difference Ignores need for points-of-
parity Doesn’t provide forward-
looking growth platform
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The Four Components of a Superior Competitive Positioning
Competitive frames of reference Nature of competition Target market
Develop unique brand points-of-difference (POD’s) Desirable to consumer Deliverable by the brand Differentiating from competitors
Establish shared brand points-of-parity (POP’s) Negate competitor points-of-difference Demonstrate category credentials
Brand mantras Short 3-to-5 word phrases that capture key POD’s & the
irrefutable essence or spirit of the brand.
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Coca-Cola Positioning Competitive frame of
reference Colas? Non-alcoholic?
Points-of-difference Distinctive taste profile Optimistic view of life Classic, iconic symbolism &
imagery Points-of-parity
Contemporary, up-to-date Refreshing flavor
Brand slogan “Coke Side of Life”
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Identifying & Choosing POP’s & POD’s
Desirable? (consumer perspective) Personally relevant Believable & credible
Deliverable? (firm perspective) Feasible Profitable Pre-emptive, defensible & difficult to attack
Differentiating? (competitive perspective) Distinctive & superior
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Identifying & Choosing POP’s & POD’s
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Principles Reinforced By Miller Lite Launch
Both points-of-parity and points-of-difference are needed to be well-positioned
Points-of-parity and points-of-difference are often negatively correlated
Points-of-parity are NOT points-of-equality – there is a zone or range of indifference or tolerance
Points-of-parity may even need to be the focus of marketing communications as the points-of-difference may be a “given”
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Miller Lite Update Miller Lite had experienced flagging
sales, falling behind both Bud Lite and Coors Lite
Management decides to create a powerful new position …
Reaffirm core duality and functional benefit of less filling & great tasting
Reinforce strong user imagery and emotional appeal as to uncompromising character
By addressing inherent product trade-offs and linking performance & emotional equities …
Sales rise 10% during 2004-2005
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Accenture Straddle Positioning Strategy Accenture is the company that
combines: Strategic insight, vision, and thought leadership Information technology expertise in developing
client solutions This strategy permits:
Points-of parity with its two main competitors, McKinsey & IBM
While simultaneously achieving points-of-difference
Technology & Execution
Strategy & Vision
AccentureStraddle Positioning(WHAT they do)
McKinsey IBM
Strategy & Vision
Technology & Execution
POP
POD
POD
POP
Accenture Straddle Positioning
Proactive, Agile, & Passionate
Approachable & Collaborative
Accenture Straddle Positioning(HOW they do it)
McKinsey IBM
Proactive, Agile, & Passionate
Approachable & Collaborative
POP
POD
POD
POP
Accenture Straddle Positioning
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Accenture High Performance. Delivered.
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Communicating & EstablishingPOP’s & POD’s
Create POP’s and POD’s in the face of attribute & benefit trade-offs Price & quality Convenience & quality Taste & low calories Efficacy & mildness Power & safety Ubiquity & prestige Comprehensiveness (variety) & simplicity Strength & refinement
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Strategies to ReconcileAttribute & Benefit Trade-Offs
Design optimal product & services
Establish separate marketing programs
Leverage secondary association (e.g., co-brand)
Re-define the relationship from negative to positive
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Brand Mantras Short 3-to-5 word phrases that capture
the irrefutable essence or spirit of the brand.
Brand mantra must clearly delineate what the brand is supposed to represent and therefore, at least implicitly, what it is not
Brand mantras typically are designed to capture the brand’s points-of-difference, i.e., what is unique about the brand.
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Brand Mantra Examples
Nike “Authentic Athletic
Performance” Disney
“Fun Family Entertainment”
American Express “Worldclass Service,
Personal Recognition”
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Brand Mantra Criteria
Communicate A good brand mantra should define the category (or
categories) of business for the brand and set the brand boundaries. It should also clarify what is unique about the brand.
Simplify An effective brand mantra should be memorable. As
a result, it should be short, crisp, and vivid in meaning.
Inspire Ideally, the brand mantra would also stake out
ground that is personally meaningful and relevant to as many employees as possible.
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Some Positioning Guidelines
1. A good positioning has …•A “foot in the present” & •A “foot in the future”
2. Evaluate POP & PODs according to:•Desirable (consumer)•Deliverable (company)•Differentiating (competition)
3. Identify crucial POP’s•Role play competitor’s positioning•Surface & resolve potential consumer trade-offs
•Assess negative correlations & decision-making styles
4. Ensure duality•Rational (“Head”)•Emotional (“Heart”)
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2. Brand Resonance Model Kevin Lane Keller (2001), “Building Customer-Based
Brand Equity: A Blueprint for Creating Strong Brands,” Marketing Management, July/August, 15-19.
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Create Brand Resonance with Customers
Challenge is to ensure customers have the right types of experiences to create the right brand knowledge
Building a strong brand involves a series of steps as part of a “branding ladder”
A strong brand is also characterized by a logically constructed set of brand “building blocks.”
BRAND RESONANCE PYRAMID
RELATIONSHIPS:What about you &
me?
RESPONSE:What about you?
MEANING:What are you?
IDENTITY:Who are
you?
Intense,Active Loyalty
Positive,AccessibleReactions
Points-of-Parity& Difference
Deep, BroadBrand
Awareness
Resonance
Judgments Feelings
Performance Imagery
Salience
Stages of Brand Development
Branding Objective at Each Stage
1
2
3
4
Building Blocks
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Brand Resonance Pyramid Terminology
Salience Depth and breadth of brand awareness
Recognition and recall at purchase and consumption Performance
What the brand does to meet customers' more functional needs.
Brand performance refers to the intrinsic properties of the brand in terms of inherent product benefits.
Imagery How people think about a brand abstractly rather than
what they think the brand actually physically does. Brand imagery is thus more extrinsic properties of the brand.
Four important intangible dimensions are: Type of user Brand personality History & heritage Experiences
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Brand Resonance Pyramid Terminology
Judgments Customers overall brand evaluations
How customers combine performance and imagery associations to form different kinds of brand opinions
Feelings Customers emotional responses and
reactions to the brand Can be mild or intense; positive or negative; or
experiential or enduring in nature. Can also relate to the social currency evoked by
the brand.
Dimensions of Brand Feelings
Brand feelings can be divided into two broad categories: Experiential – immediate, short-lived during purchase/consumption Enduring – private, possibly part of day-to-day life
Brands should have one, or ideally both, types of feelings
Experiential Feelings
• Warm
• Fun
• Exciting
Increasing level of intensity
Enduring Feelings
• Sense of Security (Inner-directed)
• Social Approval (Outer-directed)
• Self-Respect (Actualization)
Self-Respect
Sense of Security Social Approval
Inner-Directed Outer-Directed
Higher level of values & needs
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Brand Resonance Pyramid Terminology
Resonance The extent to which customers feel
that they are “in synch” with the brand Intensity or depth of the psychological bond that
customers have with the brand Level of activity engendered by this loyalty
Repeat purchase rates The extent to which customers seek out brand
information, events, or other loyal customers Etc.
Sub-Dimensions of Brand Resonance Pyramid
RESONANCELOYALTYATTACHMENTCOMMUNITYENGAGEMENT
JUDGMENTSQUALITY CREDIBILITYCONSIDERATIONSUPERIORITY
FEELINGSWARMTHFUNEXCITEMENTSECURITYSOCIAL APPROVALSELF-RESPECT
SALIENCECATEGORY IDENTIFICATIONNEEDS SATISFIED
PERFORMANCEPRIMARY CHARACTERISTICS &
SECONDARY FEATURESPRODUCT RELIABILITY, DURABILITY
& SERVICEABILITYSERVICE EFFECTIVENESS,
EFFICIENCY, & EMPATHY STYLE AND DESIGN PRICE
IMAGERYUSER PROFILESPURCHASE & USAGE
SITUATIONSPERSONALITY &
VALUESHISTORY, HERITAGE, & EXPERIENCES
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Brand Resonance Model:Brand Building Implications
1. Customers own brands2. Don’t take shortcuts with
brands3. Brands should have a duality
• Performance & imagery• Judgments & feelings
4. Brand should have a richness5. Brand resonance provides
important focus
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3. Brand Value Chain Model Kevin Lane Keller and Don Lehmann (2003), “How Do
Brands Create Value,” Marketing Management, May/June, 26-31.
Brand Value Chain
ProgramQuality
MarketingProgram
Investment
CustomerMindset
MarketPerformance
ShareholderValueVALUE
STAGES
- Product- Communications- Trade- Employee- Other
- Awareness- Associations- Attitudes- Attachment- Activity
- Price premiums- Price elasticities- Market share- Expansion success- Cost savings- Profitability
- Stock price- P/E ratio- Market capitalization
MarketplaceConditions
MULTIPLIERS
- Relevance- Distinctiveness- Consistency - Cohesiveness
- Competitive reactions- Channel support- Customer size and profile
- Market dynamics- Growth potential- Risk profile- Brand contribution
InvestorSentiment
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Three helpful brand planning models are: Competitive brand positioning model
Points-of-parity & points-of-difference Brand resonance model
Six building blocks: Salience, Performance, Imagery, Judgments, Feelings, & Resonance
Brand Value Chain Value stages & multipliers
These models can be used … Qualitatively to guide & interpret possible
marketing actions Quantitatively to measure marketing effects
Conclusions