Brand Kotler Defines 5 Levels to a Product Marketing

7/30/2019 Brand Kotler Defines 5 Levels to a Product Marketing

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Kotler defines 5 levels to a Product

The case Benefit Level

The generic Product Level

The expected Product Level

The augmented Product Level

The potential Product Level


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Marketing AustrialiaRegion

/Country Asia United States Japan Europe

Austriialias Big nature Fun, diversity, Surprise, Activity,Attribute outdoors, active, undiscovered, relaxationcity life adventure,live it culture,lifestyle intriguing

enriching,diverse,powerful

memories

Campaign Let the Holiday Country of The soonermagic begin surprises you go the

longer thememories.

Message Excitement, Take a break Fast-paced, Emotional,shopping from work sophisticated, appealing,nightlife. and discover cosmopolitan, unique,

people and modern travel nowislands


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Brands can reduce the risks in Product decisions

Functional Risk : The product does not perform up to expectations.

Physical Risk : The product poses a threat to the physical well-

being or health of the user or others.

Financial Risk : The product is not worth the price paid

Social Risk : The product results in embarrassment from others.

Time Risk : The failure of the product results in an opportunity

cost of finding another satisfactory product.


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Brand Value of top 10 strongest Brands in USA

Rank Brand Name Value as at 2001

($ billions)1 Coca-Cola 68.95

2 Microsoft 65.07

3 IBM 5275

4 GE 42.40

5 NOKIA 35.04

6 INTEL 34.67

7 DISNEY 32.59

8 FORD 30.09

9 Mc DONALDS 2529

10 AT & T 22.83


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Strategic brand management involves the design andimplementation of marketing programmes and activitiesto build measure and manage brand equality.

1. Identifying and establishing brand positioning and values

2. Planning and implementing brand marketing programs.

3. Measuring and interpreting brand performance.

4. Growing and sustaining brand equity.


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Planning and Implementing Brand Marketing Programs

Initial choices for the brand elements or identities making upthe brand.

Marketing activities and supporting marketing program and themanner by which the brand is integrated into them.

Other associations indirectly transferred to the brand by linkingit to some other entity (e.g.the company, channel distribution /another brand.


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Steps Key concepts

Plan and Implement

Brand MarketingProgrammes

Identify and EstablishBrand Positioning and

values

Measure and InterpretBrand performance

Grow and SustainBrand Equity

Mental maps

Competitive frame of referencePoints of parity and points of differenceCore brand valuesBrand mantra

Mixing and matching of brand ElementsIntegrating brand marketing activities

Leverage of secondary associations

Brand Value chainBrand auditsBrand tracking

Brand equity management system

Brand Product MatrixBrand portfolios and hierarchiesBrand expansion strategiesBrand reinforcement and revitalization

Strategic Brand Management Process


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Building customer Based brand equityBrandBuildingTools & objectives

Consumer knowledgeeffects

Choosing Brand Elements

Brand name MemorabilityLogo MeaningfulnessSymbol LikabilityCharacter TransferabilityPackaging AdaptabilitySlogan Protectability

Developing Marketing ProgramsProduct Tangible & intangible benefitsPrice Value perceptionsDistribution Integrate push and pullChannels

Communications Mix and match options

Leverage of Secondary Associations

CompanyCountry of originChannel of distribution AwarenessOther brands Meaningfulness

Endorser TransferabilityEvent

Brand Awareness

Depth RecallRecognition

Breadth PurchaseConsumption

Possible customers

Greater loyalty

Less vulnerability tocompetitive marketing actionsand crises

Larger margins

More elastic response to pricedecreases

More inelastic response toprice Increases

Greater trade c-operation andsupport

Increased marketingcommunication efficiency andeffectiveness

Possible licensingopportunities.

More favorable brandextension evaluations.

Brand Associations

Strong Relevance

`Consistency

Favorable Desirable

Deliverable

Unique Points-of-parityPoints-of-difference

Branding Benefits


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Measuring & interpreting Brand Performance

1. Brand AuditA. Brand inventoryB Brand exploratory

3. Brand Equity Management SystemA.Brand equity charterB. Brand equity reportC. Brand equity responsibilities

2. Brand Value ChainA Brand equity sourcesB Brand equity outcomes


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Growing and Sustaining brand equity

1. Define Brand Hierarchy

A. Principle of simplicity Employ as few levels as possibleB. Principle of relevance Create abstract associations relevant

to as many products as possibleC Principle of differentiation Differentiate individual products and brandsD. Principle of prominence Adjust prominence to affect perceptions of product

distance

E. Principle of commonality Link common products through shared brandelements.

2. Define Brand-Product Matrix

A .Brand extensions Establish new equity and enhanceexisting equity.

B. Brand portfolio Maximize coverage and minimize overlap

Contd..


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3. Enhance Brand Equity over Time

A. Brand reinforcement Innovation in product design,Manufacturing and merchandising.Relevance in user and usage imagery

B. Brand revitalization Back to basics strategy

Reinvention strategy

4. Establish brand Equity over Market Segments

A Identify differences in consumer How they purchase and use productsbehavior What they know and feel about different

brands.B Adjust branding programme Choice of brand elements.

Nature of supporting marketing programmeLeverage of secondary associations.

Contd..


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Branding is all about creating Differences

Differences in outcomes arise from theAdded Valueendowedto a product as a result of the past marketing activity for theBrand.

The value can be created for a brand in many different ways.

Brand equity provides a common denominator for interpretingmarketing strategies, and assessing the value of a brand

These are many different ways in which the value of the brandcan be manifested or exploited to benefit the firm. (I.e. interms of greater proceeds or ever costs or both.)

Identifying and establishing Brand Positioning & Values.


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Breadth of Branding Strategy

1. Aggregate market Factors:

Market Size Market Growth

Stage in Product Life cycle

Sales cyclicity

Seasonality

Profits

Contd


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Contd..

2. Category Factors:

Threat to new enbank

Bargaining power of buyers

Bargaining power of suppliers

Current category rivalry

Pressures from substitutes

Category capacity

Contd


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Contd

3 Environmental Factors

Technological

Political

Economic

Regulatory

Social


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BRAND HIREARCHY

General MotorsGeneral Motors

Chevrolet Pontiac Oldsmobile Biick CadillacGMC

Trucks Cars

Silveradio PickupC1500 Extended cabpickup

K1500 Extended CabPickupC/K pickupTahoeVentureSuburbanAstroCargo Van 2500

SavanaSierraSuburbanSonomaJimmy

SevilleCateraDe Ville

CenturyRegal]LeSabrePark Avenue

AleroCutlassIntrigueEighty-eight

Aurora

Grand PrixGrand AmBonnevilleTrans SportFirebird/Trans AmSunfire

CorvetteCavalierCamaro

PrizmMalibuMonte CarloLuminaMetro


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Top 10 Admired Companies in USAfor Corporate Image

Rank Organization

1 General Electric

2 South West Airlines

3 Wal Mark Stores4 Microsoft

5 Berkshire Hathway

6 Home Depot

7 Johnson & Johnson

8 FEDEX

9 CITI GROUP

10 Intel

Determinants of Corporate Image


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Company

CompanyBusinessconduct

CorporateContributions

conduct

CorporateSocial

Conduct

Sales Force

Product

CorporateEmployeesConduct

Distributionchannels

Price

CommunicationSupportService

Determinants of Corporate Image


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CORPORATE BRAND: EG GENERAL MOTORS

Family Brand (eg. BUICK)

Individual Brand (eg. Park Avenue)

Modifier (Designing item or Model )(eg. Ultra)


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BUILD AWSARENESS OF THE COMPANYAND NATURE OF ITS BUSINESS

Create favouroable attitudes and perceptions ofCompany credibility

Link beliefs that can be leveraged by product specificmarketing

Make favourable impression on the financial community

Motivate present employees and attract better recruits

Influence public opinion on issues.

Documents

Brand Kotler Defines 5 Levels to a Product Marketing