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overview of the complex nature of branding, ways in which consumers attach meaning to brands, ways in which brand managers can streamline brand costs .various ways in which brand managers can strategically create relationships between their brands and consumers
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Branding strategies
Structure
A. INTRODUCTION
1. Overview and Strategy Blueprint
2. Marketing Strategy: Analysis &
perspectives
B. WHERE ARE WE NOW?
3. Environmental & Internal Analysis:
Market Information & Intelligence
C. WHERE DO WE WANT TO BE?
4. Strategic Marketing Decisions,
Choices & Mistakes
5. Segmentation, Targeting
& Positioning Strategies
6. Branding Strategies
7. Relational & Sustainability
Strategies
E. DID WE GET THERE?
14. Strategy Implementation, Control
& Metrics
D. HOW WILL WE GET THERE?
8. Product Innovation & Development
Strategies
9. Service Marketing Strategies
10. Pricing & Distribution
11. Marketing Communications
12. E-Marketing Strategies
13. Social and Ethical Strategies
Learning Objectives
Provide an overview of the complex nature of branding
Examine the ways in which consumers attach meaning to brands
Discuss ways in which brand managers can streamline brand costs
Identify the various ways in which brand managers can strategically create relationships between their brands and consumers
Present several strategic assessment tools that will aid the brand manager in assessing the nature of brand meaning and value
Introduction
Branding is a major component of product strategy
Brands communicate valuable information to the consumer
To the customer perception is reality
The ability to develop and nurture effective brands is probably the single most important skill set within the marketers professional toolkit
Strategic Brand Management
Two important questions: (1) How can we use brand strategy to
reduce our overall costs ?
(2) How can brand strategy differentiate our offerings and help us build a
meaningful relationship with our target consumer?
Branding and Functionality
American Marketing Association defines a brand as a name, symbol, word, sign design or combination that differentiates one or more offerings of a seller or group of sellers from the competition.
Brands perform a series of functions for both the buyer and seller. For the buyer brands help with product identification, signal
quality, provide social status
For the seller brands facilitate customer identification, breed customer familiarity, identify specific product offerings, differentiate offering, make the offering distinct, enhance brand loyalty
Brand Identity
Brand has a core identity, which is its essence.
Brand can also be imbued with organizational attributes (e.g., innovative, young, socially-responsible, etc.) and certain expectations in terms of geographic coverage (e.g., local vs. global).
Brand can become synonymous with a particular person. A brand is a complex entity, and it potentially means
different things to different people. Aaker (2004) emphasizes that successful brand companies
have a clear idea of their brand identity.
Corporate vs. Product Branding
There is an important difference between company or corporate branding and its effects versus the use of product brands or family branding.
When a company uses a distinctive corporate brand name, then everything that it does using that name must be consistent as the name will become synonymous with a certain set of expectations.
The use of different brand names for different quality levels is a good way to handle this kind of perceptual issue
Where corporate branding becomes particularly critical is when the company produces a great variety of products that are quite distinct from each other and wants to present itself as a good corporate citizen.
Brand Equity
David Aaker Model of Brand
Equity
Brand Loyalty
Brand Equity
Brand Awareness
Perceived Quality
Brand Associations
Other Proprietary
Assets
Create positive feelings and
attitudes
Trade secrets, Patents, IP
Reason to buy, point of
differentiation
Measures the Knowledge about
The brand
Attracting new customer is 5 times
Costlier than Retaining
Existing customer
Brand Architecture
A brand portfolio can contain a variety of different types of brand.
The brand relationship spectrum developed by Aaker & Joachimsthaler 2000b, helps with brand architectural analysis.
House of brands at one extreme to branded house at the other
P&G and Colgate Palmolive represent a house of brands Virgin , Himalayas represent Branded House
A house of brands allows the company to potentially:
Avoid incompatible brand associations Signal breakthrough advantages Own a new product class association Avoid channel conflict
Brand Architecture
The next category after house of brand is the
endorsed brand, which builds on its connection
to a known brand, this connection can be strong
or weak.
Sub-brands are strongly connected to the parent
brand and build additional associations. Sony
waio
Branded house: The corporate name has the
dominant driving position for a variety of product
offerings.
Brand Leveraging
leveraging attaching the name to other
company offerings
Co-branding
Bringing together two separate company brands to be marketed together to create a new joint offering and additional value for the customer.
Brand value calculation (interbrand
methodology)
Brand value is the net present value (NPV) of the
forecast brand earnings, discounted by the brand
discount rate. The NPV calculation comprises both
the forecast period and the period beyond,
reflecting the ability of brands to continue
generating future earnings.
New brand valuation mechanisms
Brand health Berg, Matthews and OHare (2007) suggest that the proper assessment of brand health involves the interrelating of five metrics:
- Brand leadership
- Brand liabilities
- Brand attractiveness
- Brand distinctiveness
- Brand satisfaction.
Brand audit: Comprehensive examination of the various sources of brand equity from the perspective of the company as well as the consumer.
Cost Reduction, Brand Efficiency and
Brand Health
Papasolomou and Vrontis (2006) found that when the company
treats its own employees as customers, it enhances the potential
for the creation of a service culture, which in turn will help to
create a stronger brand.
In order to create a service culture, a company should view
employees as internal customers, meet or exceed service
standard expectations, provide training and development for
employees to make service their first priority, and offer a series
of employee incentives to improve performance.
INTERNAL MARKETING
Brand Wheel (Ward ,1999)
Values : aspects of the firm in relation to its place in society
Personality: Personality trait that are associated with the brand
If this brand were a animal/bird, what it would it be?
If this brand were a person, how would you describe?
Table 6.1: Brands vs. Lovemarks
Brand Lovemark
stands for information focuses on relationship
recognized by consumers loved by people
is generic is personal
presents a narrative creates a love story
promises quality presents a touch of sensuality
is symbolic is iconic
is defined is infused
is a statement is a story
a set of defined attributes is wrapped in mystery
is a set of values is a spirit
is professional is passionately creative
needs an advertising agency needs an ideas company
Lovemarks, the latest brand thinking
LOVE MARKS (Pawle and Cooper (2006)
Conclusion
Strategic Brand management not only requires understanding of brand costs and profits but also consumer perceptions of brand meaning, image and value.
Tactical decisions must never be attempted without a clear understanding of the perceptual implications of those decisions.
The company that regularly assesses its brand equity will be in a better position to maintain its relevance with its target markets and ensure not only its long-term brand survival, but also its profitability and market leadership.