7-1

Marketing advantages of strong brands: OK, we need examples here

• Improved perceptions

• Greater loyalty• Less vulnerable to

competition• Less vulnerable to

crises• Larger margins• More inelastic

response to price increases

• More elastic response to price decreases

• Greater trade cooperation

• Increased marketing communications

• Possible licensing opportunities

• Brand extension opportunities

7-2

5 target market segments for the Toyota Tundra

• Fishers and outdoorsmen

• Home-improvement types

• Nascar fans

• Motorcycle enthusiasts

• Country music lovers

• Do we “build the brand” the same way for every segment?

7-3

Pick a brand your company markets

Building the brand to be• Memorable• Meaningful• Likeable

How do we spend money on “building”?

Defending the brand to be

• Transferable• Adaptable• Protectible

How do we spend money on “defending”?

7-4

Brand Extensions: Again, let’s talk examples

Advantages• Improved odds of success• Development of positive

consumer expectations• Access to retailer support• Leverage of current brand

awareness• Economies of scale

advertising, packaging, distribution

Disadvantages• Dilution of brand name• Risk to brand integrity • Risk of harm to parent

brand• Cannibalization of parent

brand• Lost opportunity to create

new brand

7-5

Brands gain associations from being linked to other brands

You have seen this before:

Write a memo to the brand manager for

V-8 vegetable drink suggesting two different ways to associate V-8 with Campbell’s soups from the same parent company.

7-6

Every piece of communication about the brand matters

• Write a memo to Latha Ramchand suggesting how the image of the Bauer MBA brand can be favorably or unfavorably affected by the actions of staff members. Offer one example of each, and explain how “internal branding” is relevant to this issue.