BRANDING AND MARKETING PROMOTION STRATEGIES (Part I)

Core Text:

Strategic Brand Management

by

Kevin Lane Keller (2nd Edition) Presented by: PROF. HIMMAT ADISARE

BRANDS AND BRAND MANAGEMENT

Ref: Chapter 1 of Core Text

What is a Brand?
Definition: A brand is a product that adds other dimensions that differentiates it in some way from other products designed to satisfy the same need.
Ref: Chapter 1 of Core Text

Why Do Brands Matter?

CONSUMERS:

Identification of Source of Product Assignment of Responsibility to Product Maker Risk Reducer

Search cost Reducer Promise, Bond, or Pact with Maker of Product Symbolic Device Signal of Quality

Ref: Chapter 1 of Core Text

Why Do Brands Matter? (2)

MANUFACTURERS: Means of Identification to Simplify Handling or Tracing Means of Legally Protecting Unique Features Signal of Quality Level to Satisfied Customers
Ref: Chapter 1 of Core Text

Means of Endowing Products with Unique Associations Source of Competitive Advantage Source of Financial Returns

Can Anything Be Branded?

Physical Goods
Services Retailers

People

and Distributors Online Products and Services

Ref: Chapter 1 of Core Text

and Organizations Sports, Art and Entertainment Geographic Locations Ideas and Causes

Branding Challenges And Opportunities

Savvy

Customers Brand Proliferation Media Fragmentation Increased Competition Increased Costs Greater Accountability
Ref: Chapter 1 of Core Text

The Brand Equity Concept

Basic Principles of Branding and Brand Equity:

Differences in outcomes arise from the added value endowed to a product as a result of past marketing activity for the brand. This value for a brand can be created in many different ways. Brand equity provides a common denominator for interpreting marketing strategies and assessing the value of a brand. There are many different ways in which the value of a brand can be manifested or exploited to benefit the firm.

Ref: Chapter 1 of Core Text

Strategic Brand Management Process

Identifying

and Establishing Brand Positioning and Values Planning and Implementing Brand Marketing Programs Measuring and Interpreting Brand Performance Growing and Sustaining Brand Equity
Ref: Chapter 1 of Core Text

CHAPTER 2

CUSTOMER-BASED BRAND EQUITY

Ref: Chapter 2 of Core Text

Sources Of Brand Equity

Brand Awareness Consequences of Brand Awareness

Learning advantages
Consideration

advantages Choice Advantages

Establishing Brand Awareness

Brand Image Strength of Brand Associations Favorability of Brand Associations Uniqueness of Brand Associations

Ref: Chapter 2 of Core Text

Building A Strong Brand

The

Four Steps of Brand Building:

1. 2. 3. 4.

Identity (Who are you?) Meaning (What are you?) Response (What about you?) Relationship (What about you & me?)

Ref: Chapter 2 of Core Text

Customer-based Brand Equity Pyramid

Relationship

Resonance
Judgments Performance Feelings

Response Meaning

Imagery
Identity

Salience Ref: Chapter 2 of Core Text

Customer-based Brand Equity Pyramid (2)

Brand Salience: This Brand Judgments: The relates to aspects of customers personal awareness of the brand opinions and evaluations with regard to the brand Brand Performance: This relates to ways in Brand Feelings: The which product/ service customers emotional meets customers needs responses and reactions with respect to the brand Brand Imagery: Its how customers visualize a Brand Resonance: The brand abstractly, with ultimate relationship & no relevance to what the level of identification brand actually does that the customer has with the brand

Ref: Chapter 2 of Core Text

CHAPTER 3

BRAND POSITIONING AND VALUES

Ref: Chapter 3 of Core Text

Identifying and Establishing Brand Positioning

Basic

Concepts Target Market Nature of Competition Points of Parity and Points of Difference
Ref: Chapter 3 of Core Text

Identifying and Establishing Brand Positioning (2)

Basic

Concepts: According to the CBBE model, it is necessary to decide:1. Who the target consumer is 2. Who the main competitors are 3. How the brand is similar to these competitors, and 4. How the brand is different from these competitors

Ref: Chapter 3 of Core Text

Identifying and Establishing Brand Positioning (3)

Target

Market: Segmentation Bases: a) Behavioral b) Demographic c) Psychographic d) Geographic Segmentation Criteria: a) Identifiability b) Size c) Accessibility d) Responsiveness
Ref: Chapter 3 of Core Text

Identifying and Establishing Brand Positioning (4)

Nature

of Competition: Channels of Distribution Competitors Resources Competitors Capabilities Competitors Likely Intentions Other Competitive Factors (Porters 5Force Model refers)
Ref to Chapter 3 of Core Text

Identifying and Establishing Brand Positioning

Points

of Parity and Points of Difference: 1. Points of Difference Associations 2. Points of Parity Associations 3. Points of Parity versus Points of Difference
Ref: Chapter 3 of Core Text

Positioning Guidelines
1. Defining

and Communicating the Competitive Frame of Reference 2. Choosing Points of Parity and Points of Difference 3. Establishing Points of Parity and Points of Difference 4. Updating Positioning Over Time
Ref: Chapter 3 of Core Text

Positioning Guidelines (1)

Defining

and Communicating the Competitive Frame of Reference:

A starting point in defining a competitive frame of reference for brand positioning is to determine Category Membership. Membership indicates the products or set of products with which a brand competes. Communicating category membership informs the consumer about the goals that they might achieve by using a product or service.
Ref: Chapter 3 of Core Text

Positioning Guidelines (2)

Choosing Points of Parity and Points of Difference: Points of Parity: These are driven by the needs of category membership and the necessity of negating competitors PODs. Points of Difference: These are based on the following criteria: 1. Desirability: In terms of a) Relevance b) Distinctiveness, and c) Believablity 2. Deliverability: In terms of a) Feasibility b) Communicability, and c) Sustainability

Ref: Chapter 3 of Core Text

Positioning Guidelines (3)

Establishing Points of Parity and Points of Difference: 1. Separate the attributes: Launch two marketing campaigns, each one devoted to a different brand attribute or benefit. 2. Leverage Equity of another Entity: Link the brand with a well-liked celebrity, cause or event. 3. Redefine the Relationship: Use attitude change strategies to convert negative perspectives about the brand to positive ones.
Ref: Chapter 3 of Core Text

Positioning Guidelines (4)

Updating

Positioning Over Time: 1. Laddering: This strategy is to deepen the meaning of the brand to tap into core brand values or other more abstract considerations. 2. Reacting: This could imply no reaction to moderate or significant reactions depending on level of competitive threat.
Ref: Chapter 3 of Core Text

CHAPTER 4

CHOOSING BRAND ELEMENTS TO BUILD BRAND EQUITY

Ref: Chapter 4 of Core Text

Criteria for Choosing Brand Elements

1. Memorability
2. Meaningfulness 3. Likability 4. Transferability

5. Adaptability 6. Protectability
Ref: Chapter 4 of Core Text

Options and Tactics for Brand Elements

1. Brand

Names 2. URLs (Uniform Resource Locators) 3. Logos and Symbols 4. Characters 5. Slogans 6. Jingles 7. Packaging
Ref: Chapter 4 of Core Text

CHAPTER 5

DESIGNING MARKETING PROGRAMS TO BUILD BRAND EQUITY

Ref: Chapter 5 of Core Text

New Perspectives on Marketing

Five Major Drivers of the New Economy: Philip Kotler identifies them as under: 1. Digitalization and connectivity 2. Disintermediation and Reintermediation 3. Customization and Customerization 4. Industry Convergence 5. New Customer and Company Capabilities (Remaining topic is for Self-study)
Ref: Chapter 5 of Core Text

Product Strategy

Perceived Quality and Value: 1. Brand Intangibles 2. TQM and Return on Quality 3. Value Chain Relationship Marketing: 1. Mass Customization 2. Aftermarketing 3. Loyalty Programs
Ref: Chapter 5 of Core Text

Pricing Strategy

Consumer Price Perceptions: Price Band strategies Value-based Pricing Strategies Setting Prices to Build Brand Equity: Value Pricing based on: a) Product design and delivery b) Product costs, and c) Product prices Everyday Low Pricing (EDLP): A strategy based on low pricing as well as discounts and promotions to consumers at regular intervals.
Ref: Chapter 5 of Core Text

Channel Strategy

Channel Design: Broadly, channel types can be classified into Direct and Indirect channels. Direct Channels: a) Company-owned stores b) Leased/Rented shopping-space in larger department stores. Indirect Channels: a) Distributors and Dealers b) Retailers c) other middlemen Web Strategies: Today, these are extremely powerful channels if supported by efficient physical brick & mortar channels.
Ref: Chapter 5 of Core Text

CHAPTER 7

LEVERAGING SECONDARY BRAND KNOWLEDGE TO BUILD BRAND EQUITY

Ref: Chapter 7 of Core Text

Conceptualizing the Leveraging Process

Creation of New Brand Associations: By making a connection between the brand and another entity, consumers may form a mental association from the brand to this entity and, consequently, to any or all associations, judgments, feelings and the like linked to that entity Effects on Existing Brand Knowledge: Three factors are important in predicting the extent of leverage resulting from linking the brand to another entity: i) Awareness and knowledge of the entity ii) Meaningfulness of the knowledge of the entity, and iii) Transferability of the knowledge of the entity

Ref: Chapter 7 of Core Text

Company

The branding strategies adopted by a company that makes a product or offers a service are an important determinant of the strength of association from the brand to the company and any other existing brands. Three main branding options exist for a new brand: 1. Create a new brand 2. Adapt or modify an existing brand 3. Combine an existing and new brand

Ref: Chapter 7 of Core Text

Country of Origin
Besides the company that makes the product, the country or geographic location from which it is seen as originating may also become linked to the brand and generate secondary associations. Thus, a customer may choose to wear Italian suits, exercise in American sports shoes, drive a German car, and drink English beer.
Ref: Chapter 7 of Core Text

Channels of Distribution
Channels of distribution can directly affect the equity of the brands they sell by the supporting actions that they take. Retail stores can indirectly affect the brand equity of the products they sell by influencing the nature of associations that are inferred about these products on the basis of the associations linked to the retail stores in the minds of consumers.
Ref: Chapter 7 of Core Text

Co-Branding

Co-branding: Also called brand bundling or brand alliances-occurs when two or more existing brands are combined into a joint product or are marketed together in some fashion. Ingredient branding: This is a special case of cobranding that involves creating brand equity for materials, components, or parts that are necessarily contained within other branded products.
Ref: Chapter 7 of Core Text

Licensing
Licensing involves contractual arrangements whereby firms can use the names, logos, characters, and so forth of other brands to market their own brands for some fixed fee. Because it can be a shortcut means of building brand equity, licensing has gained popularity in recent years.
Ref: Chapter 7 of Core Text

Celebrity Endorsement (1)

Using well-known and admired people to promote products is a widespread phenomenon with a long marketing history. The rationale behind these strategies is that a famous person can: 1. Draw attention to a brand, and 2. Shape the perceptions of the brand by virtue of the inferences that consumers make based on the knowledge they have about the famous person.

Ref: Chapter 7 of Core Text

Celebrity Endorsement (2)

Potential Problems: 1. Celebrity endorsers can be overused by endorsing so many products that they lack any specific product meaning or are just seen as overly opportunistic or insincere. 2. There must be a reasonable match between the celebrity and the product. 3. Celebrity endorsers can lose popularity thus diminishing their market value to the brand. 4. Many consumers feel that celebrities are doing the endorsement only for money.

Ref: Chapter 7 of Core Text

Sporting, Cultural, or Other Events

1. A brand may seem more likable or

even trustworthy by becoming linked to an event. 2. Sponsored events can contribute to brand equity by becoming associated to the brand and improving brand awareness, adding new associations, or improving the strength, favorability, and uniqueness of associations.
Ref: Chapter 7 of Core Text

CHAPTER 8

DEVELOPING A BRAND EQUITY MEASUREMENT AND MANAGEMENT SYSTEM

Ref: Chapter 8 of Core Text

The Brand Value Chain

Value

Stages:

1. Marketing

Program Investment 2. Customer Mindset 3. Market Performance 4. Shareholder Value

Ref: Chapter 8 of Core Text

Value Stages (1)

Marketing Program Investment: The ability of a marketing program investment to transfer or multiply further down the chain will depend on qualitative aspects of the marketing program via the program multiplier. The Program Multiplier: Four factors are important: 1. Clarity 2. Relevance 3. Distinctiveness, and 4. Consistency
Ref: Chapter 8 of Core Text

Value Stages (2)

Customer Mindset: Five dimensions have emerged from research as important measures of the customer mindset:
1. Brand Awareness 2. Brand Associations 3. Brand Attitudes 4. Brand Attachment

5. Brand Activity Customer Multiplier: Three essential factors are: 1. Competitive Superiority 2. Channel and other intermediary support 3. Customer size and profile

Ref: Chapter 8 of Core Text

Value Stages (3)

Market Performance: Six dimensions need to be addressed: 1. Price Premiums 2. Price Elasticities 3. Market Share 4. Brand Expansion 5. Cost Structure 6. Brand Profitability Market Multiplier: Following factors need to be considered: 1. Market Dynamics 2. Growth Potential 3. Risk Profile 4. Brand Contributions
Ref: Chapter 8 of Core Text

Value Stages (4)

Stakeholder Value: Based on all available and forecasted information about a brand and many other considerations, the financial marketplace then formulates opinions and makes various assessments that have direct financial implications for the brand value. Three important indicators are: 1. Stock price 2. Price/earnings multiple, and 3. Overall market capitalization of the firm

Ref: Chapter 8 of Core Text

The Brand Value Chain

Implications: 1. A necessary condition for value creation is a well-funded, well-designed, and wellimplemented marketing program. 2. Value creation involves more than just the initial marketing investment. 3. Each of the three multipliers can increase or decrease market value from stage to stage. 4. The brand value chain provides a detailed roadmap for tracking value creation enabling market research and intelligence efforts.

Ref: Chapter 8 of Core Text

Designing Brand Tracking Studies

What to Track: 1. Product Brand Tracking 2. Corporate or Family Brand Tracking 3. Global Tracking How to Conduct Tracking Studies: 1. Who to track 2. When and where to track How to Interpret Tracking Studies
Ref: Chapter 8 of Core Text

Designing Brand Tracking Studies (1)

What to Track: Three distinct surveys can be conducted for: 1. Product-Brand Tracking: The six-block pyramid for brand-building can be used as a basis for design of the questionnaire. 2. Corporate or Family Brand Tracking: Some additional questions may be added to establish levels of corporate credibility and corporate brand associations. 3. Global Tracking: A broader set of background measures are needed to put brand development in those markets in the right perspective .

Ref: Chapter 8 of Core Text

Designing Brand Tracking Studies (2)

Who to Track: 1. Current Customers 2. Potential Customers 3. Channel Members 4. Frontline Employees (Services sector) When and Where to Track: Options are: Continuous Tracking Studies Based on Stage of Product Life Cycle Based on depth of Brand Equity
Ref: Chapter 8 of Core Text

Designing Brand Tracking Studies (3)

How to Interpret Tracking Studies: For tracking measures to facilitate actionable insights and recommendations, they must be reliable and sensitive as possible. This may require framing of questions in a comparative or temporal manner. It is also necessary to decide on appropriate cutoffs. For example:

What is a sufficiently high level of brand awareness? When are brand associations sufficiently strong, favorable, and unique? How positive should brand judgments and feelings be? What are reasonable expectations for the amount of brand resonance?

Ref: Chapter 8 of Core Text

Establishing a Brand Equity Management System

Brand Equity Charter

Brand Equity Report

Brand Equity Responsibilities: 1. Overseeing Brand Equity 2. Organizational Design and Structure 3. Managing Marketing Partners

Ref: Chapter 8 of Core Text

Establishing a Brand Equity Management System (1)

Brand Equity Charter: A formalized document should spell out the following: The firms view of the brand equity concept. The scope of the key brands of the firm. Specify the actual and desired equity for a brand at all relevant levels i.e. at individual product level and corporate level. Strategies for managing brand equity. Outline specific tactical guidelines for marketing programs. Trademark usage, packaging & communications
Ref: Chapter 8 of Core Text

Establishing a Brand Equity Management System (2)

Brand Equity

Report: Important market information that should be included: 1. Product shipments and movement through channels of distribution. 2. Relevant cost breakdowns 3. Price and discount schedules 4. Sales and market share information 5. Profit assessments
Ref: Chapter 8 of Core Text

Establishing a Brand Equity Management System (3)

Brand Equity Responsibilities: 1. Overseeing Brand Equity: Aspects that are important: a) Review brand sensitive material b) Review the status of key brand initiatives c) Review brand sensitive projects d) Review new product and distribution strategies with respect to core brand values e) Resolve brand positioning conflicts
Ref: Chapter 8 of Core Text

Establishing a Brand Equity Management System (3-contd)

Brand Equity Responsibilities: 2. Organizational Structure & Design: The current market trends are redefining job requirements and duties. The traditional marketing department is disappearing from a number of companies that are exploring other ways to conduct their marketing functions through business groups, multidisciplinary teams and so on.

Ref: Chapter 8 of Core Text

Establishing a Brand Equity Management System (3-contd)

Brand Equity Responsibilities: 3. Managing Marketing Partners: The performance of a brand also depends on the actions taken by outside suppliers and marketing partners. Hence, these relationships must be managed carefully. Many leading global firms have been consolidating their marketing partnerships and reducing the number of outside suppliers. (Ex: Levi Strauss value chain) (END OF PART I)

Ref: Chapter 8 of Core Text