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Branding is increasingly important in today's world, especially in tourism. Building a strong brand has always been a challenge but the changing world of communication is making it even more difficult. This session will highlight why brands matter more than ever and the emerging challenges confronting people responsible for brands, and then provide recommendations for capitalizing on the power of brands.
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Branding Challenges 2011
Copyright © 2011 by Tim Calkins
May 5, 2011
Tim Calkins
Clinical Professor of Marketing
Kellogg School of Management
It has been quite a week for branding
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It has been quite a week for branding
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Branding Challenges 2011
Objective
Identify and help you overcome 2011 branding challenges
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Branding Challenges 2011
Agenda
• The Power of Brands
• Branding Challenges
• Building Strong Brands
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Branding Challenges 2011
Brands are associations
Kellogg School of Management Definition
A brand is the psycho-cultural associations linked to a name, mark or symbol associated with a product or
service.
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Branding Challenges 2011
Brands are associations
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Branding Challenges 2011
Brands are associations
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Branding Challenges 2011
Brands are associations
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Brands are associations
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Brands are associations
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Branding Challenges 2011
Three questions
1. Can anything be a brand?
2. Are brands always a positive?
3. Are brands becoming more important or less important?
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Branding Challenges 2011
Brands are much like reputations
Brands = Reputations
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Branding Challenges 2011
Brands shape customer perceptions
Brand
Product or Service Customer
Specifications Perceptions
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Branding Challenges 2011
Learning from earrings
Ladies diamond ear-rings. Good quality. Two small diamonds (0.3 carats each).
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Branding Challenges 2011
Learning from earrings
Ladies diamond ear-rings. Good quality. Two small diamonds (0.3 carats each).
From Tiffany.
TIFFANY & CO.
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Branding Challenges 2011
Learning from earrings
Ladies diamond ear-rings. Good quality. Two small diamonds (0.3 carats each).
From Wal-Mart.
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The power of branding
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The most valuable brands create customer advantage
• Customer advantage is critical if a company wants to avoid commoditization
Customer AdvantageCustomers value the benefit you provide, are willing to pay for it and see
you as best at providing it.
• One source of customer advantage is a strong brand. Building customer advantage is how brands add the greatest value
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Branding Challenges 2011
Agenda
• The Power of Brands
• Branding Challenges
• Building Strong Brands
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There are three core branding challenges
Challenges of Branding
1. Short-term financial constraints Cash
2. Media saturation Clutter
3. Alignment Consistency
Based on qualitative study including input from over three dozen branding professionals. Includes both company and agency contacts. Spans industries including CPG, financial services, technology, retailing, professional services, healthcare, B to B.
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Challenge 1: Cash
Observations from Marketing Executives
- “The biggest challenge is securing and maintaining management support, in terms of both budget and policy.”
- “A quarterly mindset is very difficult for building your brand.”
- “Getting the pointy heads in finance and operations to believe in the value.”
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A Question
Why are financials such a big challenge for branding efforts?
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Brands can last for centuries
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Challenge 2: Clutter
• Ad messages per day seen by the average consumer
1960 1,500
1990 3,000
2000 5,000
• Ads seen by average child by age of 16: 6 million
Source: A. McKinsey Quarterly B. Forrester Research
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Consumers are fundamentally skeptical of marketers
Ratings of Honesty and Ethical Standards
% rating high or very high Pharmacists 64% Clergy 59% Doctors 57% College teachers 53% Policemen 49% Bankers 30% Journalists 22% Business executives 21% Building contractors 19% Congressmen 17% Real estate agents 16% Lawyers 14% Insurance salesmen 11% Advertisers 10% Car salesmen 5% Source: Gallop, 1998
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Breaking through depends on understanding and focus
• Understanding the consumer is a critical step
– Need to be certain that your message resonates with the target group
– Shouting louder than the next brand doesn’t deliver success
• Focus is essential
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Challenge 3: Consistency
A Common Belief
Brands are created primarily by advertising campaigns
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The reality: brands are created by dozens of different touch-points
Slogans
Logos
Advertising
Experiences
Pricing
Word of Mouth Associations The Brand
Promotions
Partnerships
Newspaper Articles
Websites
Blogs
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Branding Challenges 2011
Creating a brand
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Creating a brand
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Branding Challenges 2011
Agenda
• The Power of Brands
• Branding Challenges
• Building Strong Brands
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Keys to Success
1. Understand your brand positioning and character
2. Engage
3. Track your progress
4. Move quickly
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Learning from MSI
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Contact Information
Tim Calkins
Kellogg School of Management
www.strongbrands.wordpress.com
www.timcalkins.com
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