Brand Management Midterm

Brand
“Name, term, symbol or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of the competition.”
Brand elements
Different components that identifies and differentiates a brand
(Name, logo, symbol, package design, or other characteristic)
Product
Anything available in the market for use or consumption, that may satisfy a need or want
Functions to Consumers
Identify the source or maker of the product

Simplify product decisions

Lower the search costs for products internally and externally

Helps set reasonable expectations about what consumers may not know about the brand

Signal product characteristics and attributes

Reduce risks in product decision

Functions to Firms
Simplify product handling and tracing

Help organizing inventory and accounting records

Offer the firm legal protection for unique features or aspects of the product

Provide predictability and security of demand for the firm and creates barriers of entry for competitors

Provide a powerful means to secure competitive advantage

Source of financial returns

Levels of product
Core benefit, generic product, expected product, augmented product
Core benefit
Fundamental need to be satisfied
Generic product
Basic version of product
Expected product
Attributes buyers normally expect
Augmented product
Distinguishes attributes
Branding challenges
Increased competition and costs, savvy customers, economic downturn, and brand proliferation
Strategic brand management process
Design and implementation of marketing programs to build measure, and manage brand equity
Brand positioning model
Describes how to guide integrated marketing to maximize competitive advantages
Brand resonance model
Describes how to create intense, activity loyalty relationships with customers
Brand value chain
Means to trace the value creation process for brands, to better understand the financial impact of brand marketing expenditures and investments
Brand audits
Comprehensive examination of a brand to, assess its health, uncover its sources of equity, and suggest ways to improve and leverage that equity
Brand tracking studies
Collect information from consumers on a routine basis over time, typically through quantitative measures of brand performance on a number of key dimensions marketers can identify in the brand audit or other means
Brand equity management system
Set of organizational processes designed to improve the understanding and use of the brand equity concept within a firm
Customer Based Brand Equity
Approaches brand equity from the perspective of the consumer

Stresses that the power of a brand lies in what resides in the minds and hearts of customers

Differential effect that brand knowledge has on consumer response to the marketing of that brand

Brand Knowledge
Key to create brand equity

Creates the differential effect that drives brand equity

Brand Image
Consumers’ perceptions about a brand based on strength, favorability, and uniqueness of brand assocaitions
Market segmentation
Divides the market into distinct groups of homogeneous consumers who have similar needs and consumer behavior
Brand positioning
Established through defining competitive framework, points of parity (POPs) and points of difference (PODs), determining brand’s mantra, and updating/changing a brand’s position
Steps of Brand Building
Brand salience, brand performance, brand imagery, brand judgment, brand feelings, brand resonance, and brand-building implications
Brand salience
Measures various aspects of the awareness of the brand:
To what extent is the brand top-of-mind and easily recalled or recognized.
What types of cues or reminders are necessary?
How pervasive is this brand awareness?
Brand performance
Attributes and benefits that underlie brand performance:
Primary ingredients and supplementary features.
Product reliability, durability, and serviceability.
Brand imagery
Based on user profile, purchase and usage situations, brand personality and values, brand history, heritage, and experiences
Brand judgment
Based on quality, credibility, consideration, and superiority
Brand feelings
Customers’ emotional responses and reactions to the brand
Relate to the social currency evoked by the brand
Feelings can be:
Experiential and immediate, increasing in level of intensity
Private and enduring, increasing in level of gravity
Brand resonance
Consisting of behavioral loyalty, attitudinal attachment, sense of community, and active engagement
Brand-building implications
Customers own the brand
Don’t take shortcuts with brands
Brands should have a duality
Brands should have richness
Brand resonance provides important focus
Types of brand elements
Brand names, URLs, logos and symbols, characters, slogans, jingles, and packaging
Brand names
Captures the central theme or key associations of a product in a very compact and economical fashion

Most difficult element for marketers to change

Closely tied to the product in the minds of consumers

Logos and symbols
Indicate origin, ownership, or association

Range from corporate names or trademarks written in a distinctive form, to abstract designs that may be completely unrelated to the corporate name or activities

Characters
Special type of brand symbol

One that takes on human or real-life characteristics

Introduced through advertising and can play a central role in ad campaigns and package designs

Slogans
Short phrases that communicate descriptive or persuasive information about the brand

Function as useful “hooks” or “handles” to help consumers grasp the meaning of a brand

Indispensable means of summarizing and translating the intent of a marketing program

Jingles
Musical messages written around the brand

Have catchy hooks and choruses that become permanently registered in the minds of listeners

Enhance brand awareness by repeating the brand name in clever and amusing ways

Packaging
Activity of designing and producing containers or wrappers

From the perspective of both the firm and consumers, packaging must:
-Identify the brand
-Convey descriptive and persuasive information
-Facilitate product transportation and protection
-Assist in at-home storage
-Aid product consumption

Criteria for choosing brand elements
Memorable, meaningful, likable, transferable, adaptable, protectable
Experimental marketing
Promotes a product by communicating a product’s features and benefits and connecting it with unique and interesting consumer experiences
Relationship marketing
Attempts to provide a more holistic, personalized brand experience to create stronger consumer ties
Mass customization
Making products to fit the customer’s exact specifications.

The advent of digital-age technology enables companies to offer customized products on a previously unheard-of scale.

One-to-one marketing
Consumers help add value by providing information to marketers.

Marketers add value by taking that information and generating rewarding experiences for consumers.

Permission marketing
The practice of marketing to consumers only after gaining their express permission.

An influential perspective on how companies can break through the clutter and build customer loyalty.

Perceived quality
Customers’ perception of the overall quality or superiority of a product or service compared to alternatives and with respect to its intended purpose
Aftermarketing
To achieve the desired brand image: Product strategies should focus on both purchase and consumption.
Value pricing
Objective is to uncover the right blend of product quality, product costs, and product prices that fully satisfies the needs and wants of consumers and the profit targets of the firm
Price segmentation
Sets and adjusts prices for appropriate market segments
Everyday low pricing (EDLP)
Has received increased attention as a means of determining price discounts and promotions over time
Marketing communication
Means by which firms attempt to inform, persuade, and remind consumers about the brands they sell
Brand communication
The firm wants current brand knowledge to equal desired brand knowledge. Sometimes, however, there is a gap between the two and the firm needs to close this gap by means of communications
Information processing model of communications
For a person to be persuaded by any form of communication the following steps must occur: exposure, attention, comprehension, yielding, intentions, and behavior
Exposure
Seeing or hearing communication/awareness
Attention
Noticing communication
Comprehension
Understanding the intended message
Yielding
Responding favorably to the message
Intentions
Planning to act in the desired manner of communication
Behavior
Actually acting in the desired manner
Types of communication
Primary and selective
Primary communication
Persuade consumers to use the product category
Selective communication
Persuade consumers to use a particular brand
Consumer promotions
Designed to change the choices, quantity, or timing of consumers’ product purchases.

Customer franchise building promotions like samples, demonstrations, and educational material.

Non-customer franchise building promotions such as price-off packs, premiums, sweepstakes, and refund offers.

Trade promotions
Financial incentives given to channel members to facilitate the sale of a product through slotting allowances, point-of-purchase displays, contests and dealer incentives, training programs, trade shows, and cooperative advertising.

Designed either to secure shelf space and distribution for a new brand, or to achieve more prominence on the shelf and in the store.

Promotion
Are short-term incentives to encourage trial or usage of a product or service.

Are designed to change the behavior of the trade or consumer

Online marketing communication
Advantages of marketing on the Web:

Low cost, greater level of detail and higher degree of customization.

Can accomplish almost any marketing communication objective .

Valuable in terms of solid relationship building.

Publicity
Non-personal communications such as press releases, media interviews, press conferences, films, and tapes
Public relations
Include annual reports, fund-raising and membership drives, lobbying, special event management, and public affairs feature articles, newsletters, photographs, films, and tapes
Buzz marketing
Various techniques marketers apply to get people notice and talk about the brand
Ways to optimize integrated marketing communications
Coverage, contribution, commonality, complementarity, versatility, and cost
Leveraging process
An indirect approach to building brand equity by linking the brand to other entities that have their own knowledge structures
Country of origin or geographic location
Can be linked to the brand to generate secondary associations

Can create strong points-of-difference

Channels of distribution
Retail stores can indirectly affect brand equity through an “image transfer” process

Retailers have their own brand images in consumers’ minds due to the following associations
-Product assortment
-Pricing
-Credit policy
-Quality of service

Customer base can be expanded by tapping into new channels of distribution

Co-branding
When two or more existing brands are combined into a joint product or are marketed together in some fashion

Example – Betty Crocker paired with Sunkist Growers to market a lemon chiffon cake mix

Ingredient branding
Creates brand equity for materials, components, or parts that are contained within other branded products

Branded ingredients are often a signal of quality

Uniformity and predictability of ingredient brands can reduce risks and reassure consumers

Licensing
Creates contractual arrangements whereby firms can use:
Names, logos, and characters of other brands to market their own brands for some fixed fee

Can also provide legal protection for trademarks

Celebrity endorsement
A famous person can:
-Draw attention to a brand
-Shape brand perceptions, by virtue of consumers perceptions of the famous person

Celebrity endorsers should have:
-A high level of visibility
-A rich set of potentially useful associations, judgments, and feelings

Sporting, cultural, or other events
Have their own set of associations that may become linked to a sponsoring brand under certain conditions

Contribute to brand equity by:
-Becoming associated to the brand and improving brand awareness
-Adding new associations
-Improving the strength, favorability, and uniqueness of existing associations