Brand Management

marketing or distribution channels
sets of interdependent organizations involved in the process of making a product or service available for use or consumption
direct channels
selling through personal contacts from the company to prospective customers by mail, phone, electronic means, in-person visits, etc.; preferable when product information needs are high; product customization is high; product quality assurance is important; purchase lot size is important; logistics are important
indirect channels
selling through third-party intermediaries such as agents or wholesalers, distributors, brokers, retailers, and dealers; preferable when: a broad assortment is essential; availability is critical; after-sales service is important
branded house
strongly normative structure to daughter brands; high degree of coherence, internal unity; dominance of corporate brands; corporate brand dominates; sub-brands unimportant
house of brands
basket of different brands where decisions made downstream; high degree of freedom for each brand; dominance of product brands; mono-brands; no linking umbrella brand
brand heirarchy
useful means of graphically portraying a firm’s branding strategy by displaying the number and nature of common and distinctive brand elements across the firm’s products, revealing the explicit ordering of brand elements
sub-brands
modification of corporate brand by sub-brands
endorsed brands
modification of corporate brand by sub-brands
product brands
high degree of freedom, one branding level
umbrella brand
between high degree of freedom and high degree of coherence, one branding level
masterbrand
high degree of coherence, one branding level
maker’s mark
high degree of freedom, two branding levels
endorsing brand
between high degree of freedom and high degree of coherence, two branding levels
source brand
high degree of coherence, two branding levels
product-brand strategy
involves assignment of particular name to one single product (line), thus each product receives its own brand name; each product has a precise, well-defined positioning; product can be an entire product category if it is so specific that there is no equivalent
the maker’s mark strategy
products are given a discrete corporate logo which is the “maker’s seal”; company tries to authenticate the product and to guarantee its provenance; mostly used for distributors as recognition sign identifying the industrial group that made it
endorsing brand strategy
company name is visible on each product and acts as base guarantor; brand endorsement can be indicated in a graphic manner by placing the emblem next to the brand name or by simply signing the endorser’s name; gives substance to the company name while each product has a power of recall for the customer
umbrella brand strategy
characterized by a single brand level, ie products are not given a daughter brand but the brand covers several product categories; every new product participates in goodwill of the umbrella which makes the introduction of new products quite easy
masterbrand strategy
clear domination of the parent brand which provides not just a name, but a frame of reference behind which everything should align; offers economies of scale linked to the variety of products that the brand can cover while creating a brand identity
source brand strategy
characterized by a double brand level (two-tier brand structure) where products all have their own brand name; parent brand is the driver of purchases whereas the sub-brands provide a two-tiered sense of difference and depth
advantages of the “branded house”
brands can easily distribute new products if consistent with the brands’ mission; cost of new launches is low; economies of scale linked to the variety of products that the brand can cover; new products participate in goodwill of family brands; exploitation opportunities of niche and submarkets; no long-lasting search for protectable brand names
disadvantages of the “branded house”
clear profiling and positioning of product program is difficult; in case of failure of one product, badwill transfer effects on brand and other products may occur; brand identity and brand kernel may restrict innovation possibilities; risk of dilution or overexpansion, especially in case of not-philosophy adequate new products
advantages of “house of brands”
clear profile and well-defined positioning of each product; allows concentration on particular segment of the market and on determined target group; avoidance of possibly badwill transfer effects and negative spillover on other products in case of failure; allows firms to take risk in new markets; more shelf space in stores which usually depends on the number of strong brands that a company has
disadvantages of the “house of brands”
product has to bear total brand expenditures which involves considerable investments in advertising and promotions, etc.; retailers only stock new products whose future is uncertain when reassured by heavy listing fees; due to increasingly shorter product life cycles, risk of not reaching break-even point; increasing problems to find suitable and protectable brand names
brand-product matrix
graphical representation of all brands and products sold by the firm; basic principle is to maximize market coverage and to minimize brand overlap so that brands aren’t competing among themselves
market development
a single brand is not able to develop a market in the long run on its own; additional brands are introduced to create a differentiated future demand
optimization of market coverage
no single brand can cover a market in the long run; a brand’s identity is not necessarily able to stand for different product categories
tactical flexibility
enables a company to limit a competitor’s field of extension
creation of barriers to entry
strong entry barrier can be created by offering a complete range of products, leaving little to no niche for potential new entrants
protection of reference brand
instead of endangering the main brand by, e.g. failed innovations, brand managers may choose a different brand name
serving different price segments
in order to avoid having to lower the prices of leading products, brand managers may create new brands in different price segments
flankers
certain brands act as protective flankers or fighter brands; fighter brand designed to combat and ideally eliminate, low-price competitors while protecting the flagship brand; ideally, fighter brand opens up new market; challenge is to design flankers in way that they do not take away market share from flagship product; at the same time cannot be designed cheaply and reflect poorly on other brands of portfolio
cash cows
may be kept in portfolio despite shrinking sales because they maintain profitability with little marketing support; withdrawing them might not necessarily affect customers switching to another brand in portfolio; marketers can effectively milk by capitalizing on their backbone of loyal customers
low-end/high-end brands
many introduce products that vary in price and quality to bring as many customer segments as possible in their brand franchise; low-priced products act as traffic builders and to trade them up to a higher priced brand later; role of high-priced brands is to add prestige & credibility to portfolio
brand extension
use of the current brand name in a completely different product
sub-brand
new brand is combined with an existing brand
parent brand
existing brand that gives birth to a brand extension
family brand
if brand is already associated with multiple products through brand extensions
types of brand extension
form of the product, distinctive taste, companion product, customer franchise, expertise, unique benefit, prestige
form of the product
same product is produced in a different form
distinctive taste
component of the current brand is used to make a new item
companion product
products lend themselves to brand extensions when they are used with others
customer franchise
different brands are developed to sell to loyal customers
expertise
extension into areas where consumers believe the brand has special knowledge
unique benefit
brand’s specific attribute is extended into a related field
prestige
introduction of products that capitalize on the distinctive image of the brand
advantages of brand extensions
improvement of brand image, risk reduction, gaining distribution and trial, higher efficiency of promotional expenditures, marketing cost reduction, development cost avoidance, packaging and labeling efficiencies, variety-seeking, clarification of brand meaning, enhancement of parent brand image, increase in market coverage, brand revitalization, subsequent extensions
disadvantages of brand extensions
confusion and frustration, retailer resistance, damage of parent brand image, cannibalization effect, dilution effect, opportunity costs
line extension
parent brand is applied to a new product that targets a new market within a product category the parent brand currently serves; introduced to better adapt the offer to the needs of consumers; targets the same customer group like the original product; captures the short-term tendencies of the market; deepens the problem-solving ability more or less to the same customers, for the same need and consumption situation
line extension multiplications
format and sizes, variety of tastes and flavors, type of ingredients, generic forms for medicine, physical forms, product add-ons corresponding to the same consumer need, versions having a specific application
growth through existing customers
building volume per capita, building volume by addressing the barriers to consumption, growth through new uses and situations
growth through innovation
creating desire in saturated markets, the virtuous cycle of innovation, the effect of innovation on sales
building volume per capita
instead of acquiring new customers (an expensive task), persuade your existing customers to use more of your product or more frequently; propose new ways of using the product, propose new occasions to use the product, match prices of one’s own product to other popular products
co-branding
occurs when two or more existing brands are combined into a joint product or are marketed together in some fashion; also called brand bundling or brand alliance; participating brands should be independent before, during and after offering; should be implemented on purpose and must be visible to potential buyers
vertical
integration of products by producers of different value chain steps
horizontal
joint product by producers at the same step in the value chain
product bundling
combined offer of two or more goods in a package with one total price
advertising alliance
simultaneous mention of different suppliers in one advertisement
joint sales promotion
timely, limited appearance of two independent brands in promotional activities
dual branding
common usage of a store location (shop in shop concept)
brand extension characteristics
extension of a brand to a new product in a new product category
advantages of co-branding
borrow needed expertise; leverage equity you don’t have; reduce cost of product introduction; expand brand meaning into related categories: broaden meaning, increase access points; source of additional revenue
disadvantages of co-branding
loss of control; risk of brand equity dilution; negative feedback effects; lack of brand focus and clarity; organizational distraction
ingredient branding
special case of co-branding that creates brand equity for materials, components, or parts that are necessarily contained within other branded products; consumers must recognize ingredient is important for performance and success of end product and must be convinced that ingredient brand has substantial advantage over existing alternatives; branded ingredients are often a signal of quality; attempt to create enough awareness and preference for their product that consumers will not buy a host product that does not contain the ingredient; can become a category point of parity
opportunities of ingredient branding for manufacturer of end product
positive image effects; differentiation; lower marketing costs; higher product quality; lower r&d cost
risks of ingredient branding for manufacturer of end product
image risk; dilution of the host brand; dependence on supplier
opportunities of ingredient branding for supplier of ingredient
increasing demand; higher price and volume premium; lower threat of substitution; creation of entry barriers; creation of brand equity
risks of ingredient branding for supplier of ingredient
conflict potential with manufacturer; limited access to end consumers; accountability in case of product failures
symptoms of aging brands
insufficient preparation for the future; insufficient dual management; insufficient capacity to capture growth pockets; insufficient meaningfulness; insufficient vitality at contact; insufficient self-stimulation; insufficient staffing
insufficient preparation for the future
insufficient rate of new products; low rate of patent registration; insufficient investment in r&D and trend spotting; insufficient knowledge about new uses
insufficient dual management
insufficient knowledge, about non-consumers, modern and tomorrow’s consumers; more sales to a reduced number of consumers
insufficient capacity to capture growth pockets
thinking the brand only through its historical product, without being ready to capture emerging trends
insufficient meaningfulness
weakening of the present positioning and values; lowering rate of repeat purchase; decrease in spontaneous awareness
insufficient vitality at contact
lack of regular updating of the quality of the logo; lack of regular facelifts for stores or for the packaging
insufficient self-stimulation
lack of curiosity; lack of desire to surprise; lack of PR events
insufficient staffing
lack of young managers
generalist brands
open and adaptive; offers a broad range under its one name, aimed at covering the needs of all segments of its market sector; capitalizes on customers’ durable values; promotes models with their own personality; needs a clear positioning, i.e., a clear personal brand imprint; all the products must be ruled by a common vision and conception, i.e. a leitmotif
specialist brands
excluding; it sets itself a particular market segment, of which people either are or are not part; builds its range according to that single market; promotes itself; highly typified, identifiable and exclusive by nature
brand salience
capacity of the brand to be evoked spontaneously in consumers’ minds as soon as the need to buy the product type appears
factors of decline
forgotten quality, non-significant differences, missing the trend, mono-product syndrome, unfulfilled expectations of a distribution channel, weak communication
strategies to counter decline phases
identifying new or additional usage opportunities; identifying new and completely different ways to use the brand; changing brand elements; entering new markets; product facelift; brand name facelift; reinvention; old product relaunch; altering product communication
causes of brand erosion
short-term sales orientation; inconsistency and discontinuity in brand management; lack of brand investment; lack of commitment of staff; outsourcing of key brand management tasks
causes of brand overlap
overstretching the brand; portfolio expansion through mergers and acquisitions; lack of positioning of individual brands; increasing diversification
step one of strategic brand consolidation process
develop the relevant brand set
step two of strategic brand consolidation process
develop brand assessment criteria
step three of strategic brand consolidation process
brand evaluation
step four of strategic brand consolidation process
prioritize brands
step five of strategic brand consolidation process
develop the revised brand portfolio strategy
step six of strategic brand consolidation process
design and implement the migration strategy
global objectives
brand contribution to business success
economic objectives
brand value
behavioral objectives
brand strength (e.g. brand awareness, brand image, brand trust, brand loyalty, etc.)
brand awareness pyramid of Aaker (bottom of pyramid to top)
unaware of brand -> brand recognition -> brand recall -> top of mind -> dominant brand
dominant brand
specific brand is the dominant brand of the respondent
top of mind
specific brand is the first to be mentioned by the respondent (top of mind awareness)
brand recall
the respondent mentions the brand without assistance (unaided brand awareness, active)
brand recognition
respondent recognizes the brand from a given list of brands (aided brand awareness, passive)
unaware of brand
respondent does not know the brand
types of brand knowledge (Keller’s dimensions of brand knowledge)
brand awareness and brand image
types of brand awareness (Keller’s dimensions of brand knowledge)
brand recall and brand recognition
types of brand image (Keller’s dimensions of brand knowledge)
types of brand association, favorability of brand associations, strength of brand associations, uniqueness of brand associations
types of brand associations (Keller’s dimensions of brand knowledge)
attributes, benefits, attitudes
types of attributes (Keller’s dimensions of brand knowledge)
non-product-related and product-related
types of benefits (Keller’s dimensions of brand knowledge)
functional, experiential, symbolic
types of non-product-related attributes (Keller’s dimensions of brand knowledge)
price, packaging, user imagery, usage imagery
brand value
contribution to the success of existing businesses (price premium and volume premium) + contribution to the success of new businesses
latent brand value
contribution to the success of new businesses (transfer potential: line extensions, brand extensions, co-branding, other countries, etc.)
types of brand evaluation providers
IP lawyers, intangible asset valuation, economic valuation specialist, market research agencies, “branding” companies, intellectual capital consultancies, academics with or without proprietary methods, “Big 4” and auditing companies
brand evaluation approaches
financial approaches, behavioral approaches, integrative approaches
types of financial approaches
cost approach, market approach, income approach, integrative approaches (in combination with behavioral approaches)
types of behavioral approaches
pure behavioral approaches, integrative approaches (in combination with financial approaches)
integrative approaches
combination of behavioral and financial approaches
types of integrative approaches
external perspective and internal perspective
cost approach
brand is valued by considering the cost of developing it: historical cost of creation; replacement cost; reproduction/recreation/replication cost
income approach
requires identification of future income, profits or cash flows attributable to the brand over its expected life, and discounting or capitalizing them to present value: price premium method, volume premium method, income split method, residual value method, incremental cash flow method, royalty relief method
market approach
considers recent transactions that have involved similar brands, and for which data regarding the transaction price is available; market price valuation based on comparable brands
Young & Rubicam (Y&R) Brand Asset Valuator (BAV)
marketing company focusing on advertising, sales promotion, communications and brand identity consulting; developed in 1993; signaling first signs of brand erosion; world’s largest brand database; “measure the value of a brand where it is created: in people’s hearts and minds”
four pillars of the Y&R BAV (top of pyramid to bottom)
knowledge, esteem, relevance, differentiation
knowledge as a pillar of the Y&R BAV
high quantities means consumers understand and have internalized what the brands stand for; result of all the marketing and communication efforts; how strong is the emotional bond with the brand?
esteem as a pillar of the Y&R BAV
extent to which consumers like a brand and hold it in high regard; relates to how well a brand fulfill its stated consumer promise; how much of this does the brand enjoy?
relevance as a pillar of the Y&R BAV
the second step in brand development; if a brand is not personally relevant for consumers, it is not going to attract and keep them; to what extent does the brand meet the consumer’s needs?
differentiation as a pillar of the Y&R BAV
basis for consumer choice and the first step to the other pillars; perceived distinctiveness of a brand; how strongly does the brand stand out from the competition?
brand strength
vital prerequisite for dynamic and successful brand building (leading indicator); composed of differentiation and relevance and its relationship, which depicts brand’s growth potential; strength/vitality
brand stature
captures a brand’s familiarity and the extent to which a brand has been successful in building a base of knowledge along with respect; develop after differentiation and relevance and keep it even after they have started losing their brand strength (lagging indicator); composed of esteem and knowledge; emotional capital
power grid of the Y&R BAV
plotting all four pillars, a brand’s strengths and weaknesses can be mapped out; defines several archetypes of brand performance; based on its findings, can be predicted whether a brand is able to establish itself as a strong power brand or whether erosion is causing it to lose ground; brand stature on x-axis, brand strength on y-axis
eroding brands
high brand stature, low brand strength
new/fading brands
low brand stature, low brand strength
aspiring brands
low brand stature, high brand strength
power brands
high brand stature, high brand strength
Interbrand brand valuation
global branding consultancy specializing in brand strategy, brand valuation, brand communication and digital brand management; represents a composite model, seeking to determine the brand value in both customer and financial terms; developed in 1988, revised in 1993 and 2011; “strong brands enhance business performance primarily through their influence on three key stakeholder groups: customers, employees, and investors”
five steps of Interbrand approach
segmentation-> financial analysis OR demand analysis OR strength analysis -> NPV calculation
segmentation in Interbrand approach
separate assessment of individual segments that present homogeneous group; segments typically defined by geography, business unit, product, service, or customer group; first step
financial analysis in Interbrand approach
valuation begins with an assessment of the company’s values and then determines value contributed by brand; analysis is based on five-year forecast of future revenues generated in brand segment being assessed; one of three options for second step
demand analysis in Interbrand approach
examination of factors that influence demand and motivate customers to purchase; measures the portion of purchase decision that is attributable to the brand, relative to other factors (e.g. price, product features); one of three options for second step
strength analysis in Interbrand approach
measures the ability of the brand to secure the delivery of expected future earnings based on 10 brand strength factors; proprietary formula is used to connect the Brand Strength Score to a brand-specific discount rate; one of three options for second step
NPV calculation in Interbrand approach
brand-specific discount rate used to discount brand earnings back to a present value; third step
Brand Strength Factors
clarity, commitment, protection, responsiveness, authenticity, relevance, differentiation, consistency, presence, understanding
internal brand strength factors
clarity, commitment, protection, responsiveness
external brand strength factors
authenticity, relevance, differentiation, consistency, presence, understanding
clarity as a brand strength factor
clarity about a brand’s values, positioning and proposition
commitment as a brand strength factor
belief internally in the brand; extent to which the brand receives support by managers/employees
protection as a brand strength factor
how secure the brand is across a number of dimensions; e.g. legal protection, proprietary ingredients or design
responsiveness as a brand strength factor
ability to respond to market changes and challenges; the brand’s desire and ability to constantly evolve and renew itself
authenticity as a brand strength factor
brand’s defined heritage and well-grounded value set; ability to deliver against consumers’ (high) expectations
relevance as a brand strength factor
fit with customer needs, desires and decision criteria
differentiation as a brand strength factor
degree to which customers perceive the brand to have a differentiated positioning distinctive from the competition
consistency as a brand strength factor
degree to which a brand is experienced without fail across all touchpoints or formats
presence as a brand strength factor
degree to which a brand feels omnipresent and is talked about positively
understanding as a brand strength factor
in-depth knowledge and understanding of a brand’s distinctive qualities and characteristics
requirements of brand evaluation system
connection between marketing and finance, comparability, practicability, traceability, acceptance among decision makers, comprehensibility, objectivity, transparency
brands and the own self
consumers transfer attributes of the brand on the own self
brands and the social self
consumers express social group membership and communicate via brand attributes to others
brand premium
volume premium x price premium; “a strong brand (strong brand equity) is a name that influences buyers through the value it offers and is backed by a profitable business model”
role of brands for 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
role of brands for firms
means of identification to simplify handling or tracing; means of legally protecting unique features; signal of quality level to satisfied customers; means of endowing products with unique associations; source of competitive advantage; source of financial returns
risk perception of consumers
functional risk, physical risk, financial risk, social risk, psychological risk, time risk
functional risk
product does not perform up to expectations
physical risk
product poses a threat to the physical well-being or health of the user or others
financial risk
product is not worth the price paid
social risk
product results in embarrassment from others
psychological risk
product affects the mental well-being of the user
time risk
failure of the product results in an opportunity cost of finding another satisfactory product
brand
represents a living system, relating a concept with inherent value to products and services that are identified by a name and set of proprietary signs; to gain market share and leadership, must be: embodied in products, services and places; enacted by people at contact points; activated by behaviors; communicated; distributed; branded output + meaning
halo effect
fact that knowing the name of the brand does influence consumers’ perceptions of the product advantages beyond the visible and tangible cues had themselves indicated
expected level of brand
design, features, packaging, price, efficacy, function; first ring from generic product of brand
augmented level of brand
after sales service, delivery, availability, advice, finance, add-ons, warranties, guarantees, during sales service, before sales service; second ring from generic product of brand
potential level of brand
other user recommendation, reputation, corporate image, brand name, organization, quality perception, value perception; third and outer ring from generic product of brand
company-oriented definition of a brand
product-oriented visual differentiation; product-oriented, visual and perceptional differentiation; promise-based
customer-oriented definition of a brand
effect-based; perception-based; value-based; promise-based
integrative definition of brand
combination of customer-oriented and company-oriented definitions of a brand; a brand is a mechanism for achieving competitive advantage for firms through differentiation (purpose), attributes that differentiate a brand provide the customer with satisfaction and benefits for which they are willing to pay (mechanism)
product-oriented, visual differentiation, company-oriented definition of a brand
name, term, sign, symbol, or design, or a combination of them, intended to identify goods or services of one seller or group of sellers and to differentiate them from those of competitors
product-oriented, visual and perceptional differentiation, company-oriented definition of a brand
name, term, sign, symbol, or design, or any other feature that identifies one seller’s good or service as distinct from those of other sellers
promise-based, company-oriented definition of a brand
seller’s promise to deliver a specific set of benefits and services consistently to the buyers
effect-based, customer-oriented definition of a brand
a brand is a name that influences buyers
perception-based, customer-oriented definition of a brand
nothing more or less than the sum of all the mental connections people have around it; a brand is a set of mental associations, held by the consumer, which add to the perceived value of a product or service
value-based, customer-oriented definition of a brand
brand is an identifiable product, service, person or place, augmented in such a way that the buyer or user perceives relevant, unique added values which match their needs most closely
promise-based, customer-oriented definition of a brand
recognizable and trustworthy badge of origin, and also as promise of performance; promise of the bundles of attributes that someone buys and provides satisfaction, attributes that make up a brand may be real or illusory, rational or emotional, tangible or invisible
challenges for brand managers
savvy customers, brand proliferation, media fragmentation, increased competition, increased costs, greater accountability
savvy customers as challenge for brand managers
better and more information about companies’ marketing activities accessible
brand proliferation as challenge for brand managers
more complex brand families and portfolios; difficult to differentiate brands and products
media fragmentation as challenge for brand managers
fragmenting media coverage; eroding traditional media effectiveness; emerging new communication options; increasing promotional expenditures; decreasing advertising expenditures
increased competition as challenge for brand managers
maturing markets; more sophisticated and increasing competition; growth of private labels; decreasing brand loyalty in many categories; increasing trade power
increased costs as challenge for brand managers
increasing cost of product introduction and support
greater accountability as challenge for brand managers
short-term performance orientation; increasing job turnover
brand management process
concept and relevance of the brand -> brand strategy and positioning -> planning and implementing brand management programs -> brand development -> brand evaluation
identity
means being your true self, driven by a personal goal that is both different from others and resistant to change
brand identity
specifies the permanent facets of brands’ uniqueness and value; on the sender’s side and specifies brand’s meaning and self-image
questions to define brand identity
What is brand’s particular vision
What makes it different?
What need is the brand fulfilling?
What is its permanent crusade?
What are its values?
What is its field of competence?
What are the signs which make the brand recognizable?
brand image
how the brand is perceived by the consumer; on the receiver’s side and refers to the way in which signals emanating from the brand’s products and services are perceived; both the result and the interpretation of the brand’s identity
image
synthesis made by the public of all the various brand messages and extraneous factors; results from decoding messages, extracting meaning and interpreting signs
positioning
battle for a place in the consumer’s mind; emphasizing the distinctive characteristics that make it different from its competitors and appealing to the public; shows the aspired direction for managing the brand; main of brand management
brand position
consumers’ attitude towards products and brands can be multidimensional and differentiated; if these attitudes are limited to a maximum of 3 attributes, it is possible to arrange these brands within a three-dimensional “attribute space”; complex brands with many attributes can not be displayed spatial any more; attributes very important for brands, but don’t necessarily result in the purchase (other factors like availability at POS, special offerings, etc. influence purchase decision also)
four perspectives of brand positioning
A brand for what benefit?
A brand for whom?
The brand why?
A brand against whom?
a brand for what benefit?
brand promise and consumer benefit aspect
a brand for whom?
target audience
the brand why?
elements that support the claimed benefit
a brand against whom?
definition of the main competitor
branding
contains all activities to build a brand which are appropriate to distinguish one offer from the mass of similar offers, and which makes it possible to assign various offers clearly to specific brands

two central objectives:
identification and differentiation of the brand
create image effects

achieved through a positioning formula and constitutes a concept which starts with customers, by putting oneself in their place:
For… (targeted consumers)
Brand X is… (frame of reference)
Which gives the most… (consumer benefit)
Because of… (reason to believe)

targeted consumers
nature and psychological profile of buyers or potential consumers
frame of reference
subjective definition of the category which will specify the nature of competition
consumer benefit
aspect of difference which creates the preference and the choice of a decisive competitive advantage
reason to believe
reinforcement of the promise or consumer benefit
points-of-parity (POP)
attributes that are not necessarily unique to the brand but may be shared with other brands; associations can refer to both positive and negative aspects; absence may be the reason to drop a brand; to achieve, consumers must feel that a brand does sufficiently well compared to its competitors
points-of-difference (POD)
attributes that consumers associate with a brand that they could not find with a competitive brand; associations refer to functional, performance-related or abstract attributes; PODs may be the reason for choosing a brand over other options; to achieve a POD, a brand has to be superior to its competitors on a particular attribute
present position of brand
current place of brand; characterized by brand features; present perception of the consumer
aspired or target position of brand
positioning goal; where the brand should be located; place how the brand should be seen
Jennifer Aaker’s components of brand personality
sincerity, excitement, competence, sophistication, ruggedness
sincerity according to Jennifer Aaker’s components of brand personality
down to earth, honest, wholesome, cheerful
excitement according to Jennifer Aaker’s components of brand personality
daring, spirited, imaginative, up to date
competence according to Jennifer Aaker’s components of brand personality
reliable, intelligent, successful
sophistication according to Jennifer Aaker’s components of brand personality
upper class, charming
ruggedness according to Jennifer Aaker’s components of brand personality
outdoors, tough
Geuens/Weijters/de Wulf’s dimensions of brand personality
responsibility, activity, aggressiveness, simplicity, emotionality
responsibility according to Geuens/Weijters/de Wulf’s dimensions of brand personality
down to earth, stable, responsible
activity according to Geuens/Weijters/de Wulf’s dimensions of brand personality
active, dynamic, innovative
aggressiveness according to Geuens/Weijters/de Wulf’s dimensions of brand personality
aggressive, bold
simplicity according to Geuens/Weijters/de Wulf’s dimensions of brand personality
ordinary, simple
emotionality according to Geuens/Weijters/de Wulf’s dimensions of brand personality
romantic, sentimental
brand mantra
short three-to-five phrase that captures the irrefutable essence or spirit of the brand positioning; used if brands span multiple product categories and have multiple distinct positionings; helps brand present a consistent image and what brand most fundamentally represents; captures usually the brand’s PODs; consists of brand function, descriptive modifier, and emotional modifier
brand function
describes the nature of the product
descriptive modifier
clarifies its nature
emotional modifier
describes how exactly the brand provides benefits
brand positioning approaches
brand identity structure of Aaker, brand diamond of McKinsey, brand steering wheel of Icon, brand positioning pyramid
brand identity structure of Aaker
consists of core identity & brand essence and extended identity
core identity of brand identity structure of Aaker
represents timeless essence of brand; should include elements that make brand both unique and valuable; contains associations that are most likely to remain constant as the brand travels to new markets and products; should be more resistant to change than the elements of the extended identity
extended identity of brand identity structure of Aaker
includes elements that provide texture and completeness; includes brand personality
brand diamond of McKinsey
intangible at top, tangible at bottom, brand attributes on right side (who or what is the brand?), brand benefits on left side (what does the brand provide?)
rational benefits in brand diamond of McKinsey
tangible and brand benefits (bottom-left corner); function/product, process, relationship
emotional benefits in brand diamond of McKinsey
intangible and brand benefits (top-left corner); external benefits and internal emotions
intangible attributes in brand diamond of McKinsey
intangible and brand attributes (top-right corner); heritage, origin, reputation, personality
tangible attributes in brand diamond of McKinsey
tangible and brand attributes (bottom-right corner); properties, characteristics, appearance
brand steering wheel of Icon
inner circle is competence
outer ring, upper-left quadrant is benefits
outer ring, upper-right quadrant is tonality
outer ring, lower-right quadrant is picture
outer ring, lower-left quadrant is attributes
competence in brand steering wheel of Icon
Who am I?
specific competence of the brand; history, tradition, origin
benefits in brand steering wheel of Icon
What do I offer?
rational benefits; emotional benefits
attributes in brand steering wheel of Icon
What attributes do I own?
attributes of the offers/products; attributes of the company
tonality in brand steering wheel of icon
How am I?
personal characteristics; relationship characteristics; adventures
picture in brand steering wheel of Icon
How do I appear?
corporate design characteristics; design; communication
brand positioning pyramid (bottom to top)
bottom-up approach
bottom: basic consumer insight
2nd level: benefits
3rd level: core brand values and personality
4th level: reason why/reason to believe
5th level: discriminator/USP
6th level: brand essence and core
basic consumer insight in brand positioning pyramid
What are the needs of the consumer when deals with the category?
benefits in brand positioning pyramid
Which rational and emotional benefit should the brand deliver?
core brand values and personality in brand positioning pyramid
Which brand personality should the brand have and convey?
reason why/reason to believe in brand positioning pyramid
How can the brand benefits and the brand personality be credibly communicated?
discriminator/USP in brand positioning pyramid
How is the brand separated from its competitors?
brand essence and core in brand positioning pyramid
What is the brand statement?
advantages of the brand positioning pyramid
understandable, solid and focused; framework that can work in cross-functional teams in the organization based on solid market research; by completing, visual reflection of the brand is available for everyone in the organization; can act as guideline for the whole organization and for agencies who launch the brand program; included as key dimension in brand building; focus is on brand’s loyal customers and therefore on the key target group of the brand
requirements of good positioning
visionary goal; focused; distinctive, sustainable, superior and credible; based on relevant customer needs; underlines rational benefits; underlines emotional benefits; based on the USP of a brand; drives and guides strategic initiatives and programs; express the values and culture of organization
brand behavior
refers to all forms of verbal and non-verbal behavior patterns of an employee that are in line with brand identity and which directly or indirectly contribute to the brand experience and thus helps to differentiate from competition and strengthening brand value and brand retention
roadmap to brand behavior
analyze and define the brand identity ->
analyze employee behavior ->
fix the strategy ->
choose and use instruments ->
brand behavior
steps of the behavioral branding funnel
knowledge, commitment, capabilities, behavior
knowledge in the behavioral branding funnel
refers to the cognitive representation of the brand in the mind of the employees and shows the existing associations and cognitions toward a brand; employees need to know and understand what the brand represents and how he/she can strengthen the brand by his/her behavior
commitment in the behavioral branding funnel
refers to a long-term bond of internal stakeholders to the company and the brand; manifests itself in the behavior of employees; employees have to be committed to represent and live the brand values
capabilities in the behavioral branding funnel
refer to the competence and skills of an employee to transform the guidelines given by the brand identity into a specific, perceivable and consistent behavior; employees need to have capabilities in order to deliver the brand values in the interaction with customers
behavior in the behavioral branding funnel
if employees fulfill the steps, an employee can behave congruently to the intended brand identity
knowledge
consists of four phases where three gaps need to be closed

Communication of brand positioning and values ->
Gap 1: brand positioning and values are not perceived by employees ->
Perception of the brand promise ->
Gap 2: Discrepancy between intended and received message ->
Understanding of the brand message ->
Gap 3: relevance of their own behavior to the brand is not recognized ->
Personal relevance of the brand message

employee buy-in
measured by commitment on x-axis and understanding on y-axis
weak links in employee buy-in
low commitment, low understanding; 39%; have switched off, have lack of understanding and commitment
bystanders in employee buy-in
low commitment, high understanding; 10%; know what they need to do but lack commitment to organizational goals
champions in employee buy-in
high commitment, high understanding; 37%; know what they need to do and are committed to delivering
loose cannons in employee buy-in
high commitment, low understanding; 14%; are committed to goals but lack the understanding necessary to deliver
types of commitment
rational commitment, normative commitment, affective commitment
source of rational commitment
commitment of the employee because of rational cost/benefit considerations
source of normative commitment
commitment of the employee because of perceived membership and/or due to social pressure
source of affective commitment
commitment of the employee because of inner conviction and identification
consequence of rational commitment
adaptation
consequence of normative commitment
acceptance
consequence of affective commitment
internalization
analysis of rational commitment
analysis of cost/benefit ratios of staff and identification of relevant incentives
analysis of normative commitment
analysis of the factors that promote a sense of belonging and a sense of us
analysis of affective commitment
analysis of the factors that promote the identification
types of capabilities for on-brand behavior
instrumental capability and socio-emotional capability
instrumental capability
problem solving and cognitive related underlying of the brand promise; identification and delivering of instrumental capabilities
socio-emotional capability
affective and relationship-supporting underlining of the brand promise; identification and delivering of socio-emotional capabilities
strategic decisions of behavioral branding
brand content, target segment, ambassadors, intensity of change
brand content in strategic decisions of behavioral branding
What do we want to communicate?
target segment in strategic decisions of behavioral branding
Who do we want to target?
ambassadors in strategic decisions of behavioral branding
Who should communicate?
intensity of change in strategic decisions of behavioral branding
How much can be achieved within how much time?
evolution vs. revolution
corporate architecture
commitment instrument; can strengthen the brand impact to the employees, i.e. Longaberger employees are proud of their brand and their building
learning maps
knowledge and commitment instrument; serve as internal information systems which can communicate complex structures to employees; corporate structures depicted graphically and pictures discussed and developed together with employees
storytelling
knowledge and commitment instrument; tells stories in order to promote brand ideals
creation/creator stories
stories about the founding of a company, founding fathers and mothers; statements on the direction, the values and beliefs of a company
classic brand stories
use of brand stories in advertising; external communication of brand image
inspiring stories
tell about successful behavior with happy ending (e.g. acquisition success), should inspire imitation
resurrection stories
stories of overcome crisis, e.g. defense against hostile acquisition and avoidance of bankruptcy
motives in storytelling
drive and determine the character; first step in storytelling
characters in storytelling
goes through and exemplifies the story; accompanying first step in storytelling
conflict in storytelling
does not allow realization of the motive; second step in storytelling
action in storytelling
characters acts to solve the conflict; third step in storytelling
solution and reward in storytelling
conflict is solved and character rewarded; fourth step in storytelling
morale in storytelling
reveals meaning and illustrates relevance of the motive; fifth step in storytelling
identification and differentiation of the brand
branding as formal design aspects to facilitate awareness and thus recognition and memorability of the brand
create image effects
branding as a means to transfer positioning of the brand
criteria to build brand equity
likable, meaningful, memorable
criteria to leverage and maintain brand equity
protectable, adaptable, transferrable
brand name
captures the central theme or key association of the product in a very compact and economical fashion
selective modification
searching for adequate adjectives/nouns/verbs that embody the desired position statement; the term is translated into the brand name
transfer of characteristics
searching for distinguishing attributes that are coherent with desired brand positioning
relational link
searching for facts that the brand wants to be linked with
redundant link
searching for a direct product link
typology of brand names
descriptive, suggestive, classical, arbitrary/evocative, fanciful/artificial, acronym, alliteration/rhymes, foreign words, founder’s name, geographical names, personification, compounds
descriptive
describes product benefit or function literally (Singapore Airlines, head&shoulders, TvToday)
suggestive
suggestive of a benefit or function (Superstay Lipstick, Nutella, Google)
classical
based on Latin, Greek, or Sanskrit (Lexus, Audi)
arbitrary/evocative
real words with no obvious tie-in to company that evoke relevant vivid images (Amazon, Apple, Shell)
fanciful/artificial
coined words with no obvious meaning (Exxon, Xerox)
acronym
made up of initials (IBM, UPS, BMW)
alliteration/rhymes
repetition of letters or rhymes (Reese’s Pieces, Dunkin’ Donuts)
foreign words
adoption of words from another language without translation (Samsung, Volkswagen, Katjes)
founder’s name
using the name of the founder(s) or associated people (McDonald’s, Rolls-Royce, Disney)
geographical names
named for regions or landmarks (Cisco, Fuji Film)
personification
symbols from myth or usage of brand characters (Nike, Hermes, Betty Crocker)
compounds
combination of (often unexpected) words (Compaq, Pixar)
kill-criteria for brand names
Names that are difficult to pronounce and write (Umckaloabo, Häagen Dazs)

Names that might draw on negative associations (Ford Probe in Germany, probe means “test”)

Names that are already used or similar to already existing ones (limited differentiation and thus memorability, replaceability) (TvMovie, TvToday, TvSpielfilm, TvDirekt, etc.)

Names that conflict with positioning

Names that have obvious legal complications (private label of Jane & Mary’s of Migros, relation to Ben & Jerry’s)

brand logo/symbol
visual element that indicates origin, ownership, and/or association
memory effect
How much cognitive effort is needed to memorize logo?
access effect
How strong is the support of the logo to access the associations linked to the brand?
differentiation of brand
shape, color, other features
conciseness of brand
simplicity, uniformity, contrast
information processing model
six steps
desirable outcomes include:
right consumer exposed to right message at right time and place, creative strategy causes the person to notice the ad without distracting him from the central message; ad addresses consumers understanding of brand and product; delivery towards POD and POP; ad persuades customer to purchase; ad gives instant recall to customer at point of purchase

step 1: exposure (seeing or hearing)
step 2: attention (noticing)
step 3: comprehension (understand the message)
step 4: attitude (favorable response)
step 5: intention (desire to act)
step 6: behavior (actual action)

pre-purchase experience
advertising, website, direct mail/samplings, deals/promotions
purchase experience
sales force, product/service assortment, PoP displays, packaging
post-purchase experience
loyalty programs, billing, customer service, product quality
brand communication
means by which firms attempt to inform, persuade, and remind consumers- directly or indirectly- about the brands they sell; happens when consumer meets the brand; “voice of the brand” and biggest evidence of brand after product itself

can contribute to brand equity by:
creating awareness of brand, linking points-of-parity and points-of-difference associations to the brand in consumers’ memory, eliciting positive brand judgments or feelings, facilitating a stronger consumer-brand connection and brand resonance

requirements for brand communication
strengthen the brand identity, place the brand at the center, communicative distinctively and conspicuously, ensure originality, make communication memorable, ensure favorable experience with the brand, consider and integrate consumers in communication, use multipliers and opinion leaders as communicators
social media
defined as “group of internet-based applications that build on ideological and technological foundations of Web 2.0 and that allow the creation and exchange of user-generated content”
nature of social media
digital, pro-active, visible, real-time and memory, fast, ubiquitous, networks, interactivity, direct and easy access
implications of social media for brand
better informed consumers; authenticity of brand its messages are rated faster, more direct, more context-sensitive and by broader audience; consumers become active partners; increasing influence of consumers on brand building; loss of power/control of brands; need for new competences within company
blueprint for building connected brands
articulate->
connect->
engage->
influence->
integrate->
rejuvenate
articulate in blueprint for building connected brands
define the brand’s social identity so you can communicate in a unique, compelling, and authentic voice
connect in blueprint for building connected brands
find your best and most likely customers and give them a reason to like or follow you in social channels
engage in blueprint for building connected brands
interact with people by making brand communication and content more personally relevant and participative
influence in blueprint for building connected brands
inspire and enable people to share stories and messages about your brand
integrate in blueprint for building connected brands
build social into the brand and product experience to make it more cohesive and useful
rejuvenate in blueprint for building connected brands
use insights from social channels to continuously monitor your brand’s health and improve the brand experience
5 guiding principles for facebook brand pages
build a strategy that is social by design->
create an authentic brand voice->
make it interactive->
nurture your relationships->
keep learning
opportunities of social media
direct customer interaction; market research, customer insights; brand development, branding; reputation management; customer retention and acquisition; improvement of internal cooperation; knowledge and innovation management; optimization of customer service
risks of social media
poor processing and integration of feedback; loss of control/power; negative branding effects; dysfunctional behavior of employees; intensification of negative information; internal conflicts
requirements of social media
top management commitment; availability of resources; competences and knowledge; changing roles and job profiles; quality of internal communication and cooperation; social media guidelines; legal requirements