MidTerm Strategic Brand Management

Marketing
whenever an individual or organization has a choice to make
Brand
a “name, term, sign, symbol, design or a combination of them intended to identify the goods and services of one seller/s and differentiate them from those of competition
Brand Strategy
a combination of vision, objectives (marketing and business) and tactics
Product
anything that can be offered to a market for use, attention, acquisition, consumption that might satisfy a need or want
Brand (vs product)
a product/service, but one that adds other dimensions to differentiate it in some way from other products designed to satisfy the same need
Core Benefit Level
the fundamental need/want that consumers satisfy by consuming the product/service
Generic Product Level
a basic version of the product containing only those attributes/characteristics absolutely necessary for its functioning but with no distinguishing features. (Stripped-down, no-frills version)
Expected Product Level
a set of attributes/characteristics that buyers normally expect and agree to when they purchase a product
Augmented Product Level
includes additional product attributes, benefits, or related services that distinguish the product from competitors
Potential Product Level
includes all the augmentations and transformations that a product might ultimately undergo in the future
10 Commandments of Emotional Branding
1. From Consumers to People
2. From Product to Experience
3. From Honesty to Trust
4. From Quality to Preference
5. From Notoriety to Aspiration
6. From Identity to Personality
7. From Function to Feel
8. From Ubiquity to Presence
9. From Communication to Dialogue
10. From Service to Relationship
Brand Equity
Represents “added value” endowed to a product as a result of past marketing investments; Common denominator for interpreting marketing strategies and assessing value of a brand
Brand Audit
comprehensive exam to assess health of brand, sources of equity and improve/leverage that equity
Brand Tracking
monitor strength, favorability, and uniqueness
Brand Equity Management System
a set of organizational processes designed to improve the understanding and use of the brand equity concept within a firm. Three major steps: brand equity charter; brand equity report; brand equity director
Customer-based brand equity
the “differential effect” that brand knowledge has on consumer response to the marketing of the brand
Three key ingredients to customer-based brand equity
Differential Effect – if no differences occur, then the brand is a commodity; Brand Knowledge – marketing activity impacts what “resides in consumers brains”; Consumer Response to Marketing – perceptions, preferences and behavior related to all aspects of marketing a brand (I.e., recall of copy points, action to brand extension or promotion)
Brand Awareness
the Ability of a Potential Buyer to Recognize or Recall That a Brand Is a Member of a Certain Product Category
Brand recognition
consumers’ ability to confirm prior exposure to the brand when given the brand as a cue
Brand recall
consumers’ ability to retrieve the brand from memory when given the product category, the needs fulfilled by the category, or a purchase or usage situation as a cue
Brand loyalty
the measure of attachment a customer has to a brand
Brand salience
measures various aspects of the awareness of the brand and how easily and often the brand is evoked under various situations or circumstances. To what extent is the brand top-of-mind and easily recalled or recognized
Brand resonance
Extent to which consumers are in “sync” with the brand
Brand Positioning
What You Do in the Mind of the Customer / Prospect.
Brand Positioning Process
Must define and understand:
Target Audience
Competitive Frame of Reference
Benefits (rational/emotional)
Point-of-Difference/Point-of-Parity
Brand Values
Brand Personality
Brand Essence/Character
Market segmentation
divides the market into distinct groups of homogeneous consumers who have similar needs and consumer behavior, and who thus require similar marketing mixes
Key Target Market Selection Criteria
Identifiability —can it be easily determined?
Size —is it big enough?
Accessibility —can we reach this target (distribution and communication media)?
Responsiveness —how will the segment respond (favorably)?
Points of Parity
Minimum level to compete in your category
Points of Difference
Relevant benefits owned by you that provide you a SUSTAINABLE competitive advantage
Points of Difference Criteria
Desirability Criteria: Relevance; Distinctiveness; Believability
Deliverability Criteria: Feasibility; Communicability; Sustainability
Brand Core Values
Key values that capture the important dimensions of the brand’s meaning and what the brand represents.
Core Brand Values
Brand Mantras
Brand Elements
Components of a brand (name, logo, symbol, package design, etc) that identify and differentiate it. Core elements to build brand equity and enhance awareness and image. BRand name, URL Logo, Symbols, characters, Slogan, Jingles, Packaging
Criteria to Choose Brand Elements
first three are brand building
1. memorable- facilitates recall and recognition
2. meaningful-descriptive and persuasive
3. likable- fun and interesting, rich in visual and verbal imagery and aesthetically pleasing
Next 3 are defensive, how brand equity in a brand element can be leveraged or preserved
4. transferable- mobile within and across product categories, geographies and cultures
5. adaptable- flexible enough to be updated and made contemporary
6. protectable- legally secure and competitively well-guarded
Brand Naming options
name often captures the central theme or key associations of a product in a very compact and economical fashion. effective shorthand means of communication
descriptive- describes function
suggestive- of benefit or function
compounds-combo of two or more unexpected words
classical-based on latin, greek or sanskrit
arbitrary- real words with no obvious tie in to company
fanciful-words with no obvious meaning
Logos and Symbols
visual elements play a critical role in building brand equity and especially brand awareness
Characters
represent a special type of brand symbol, one that takes on human or real life characteristics. introduced through advertisements and play a central role in ad campaigns and package designs
Slogans
Short phrases that communicate descriptive or persuasive information about the brand. they often appear in advertising but can play an important role on packaging and in other aspects of the marketing program. efficient and shorthand means to build brand equity
Jingles
musical messages about the brand
Packaging
activities of designing and producing containers or wrappers for a product.
objective:
1. identify brand
2. convey descriptive and persuasive information
3. facilitate produc transportation and protection
4. assist at home storage
5. aid product consumption
Aesthetic considerations
Relate to a packages size and shape and material, color, text and graphics
Unique Characteristics of Marketing Uncertainty in Technology Markets
-customers are uncertain about technology’s potential uses and benefits
-customers are skeptical
-ability of a company to deliver new high tech product is uncertain
-short product life cycles
-market is turbulent
Factors affecting adoption rate of new tech
relative advantage, compatibility, complexity, triabability, observability, network externalities, all vs perceived risk-uncertainty about consequences
Visionaries
intuitive, support revolution, contratian, break away from the pack, non conformist
pragmatists
aalytical, support evolution, conformist, stay with the herd, consult with colleagues, manage risks
product centric business model
performance, price, marketing is necessary evil, slogan and ad campaign
promise centric business model
successful brand management attracts and keeps customers, customer needs, industry trends, understanding disruptive technologies, marketing and brand development are an investment, foster good communication among employees, better focus resources, need to figure out what promise of value is, refine that promise, determine functional roles to make good on promise, institute measures of brand performance
Brand competition
consumer brand resonance, consumer judgements, consumer feelings
Product Competition
Brand salience, brand performance, brand imagery
Chasm Model
gap between early and mainstream customers that can lead to product failure
Technology branding barriers and misconceptions
Brands/bran image is irrational and emothional not suited to technology-
Brand management is best left to marketing or sales dept, not central to the technical direction of the company
New environment (traditional marketing less effective)
rapid technological developments, greater customer empowerment, fragmentation of traditional media, growth of interactive and mobile marketing options, channel transformation and disintermediation, increased competition and industry convergence, globalization, new customer company capabilities, heightened environmental community and social concerns, economic recession
new capabilities for consumers
customer power example social media, purchase a greater variety of available goods and services, more information, ease at buying and interacting with marketers, compare experiences with strangers
New capabilities for companies
collect rich information-customers markets and competitors, improved transaction capabilities, two way communication with customers and consumers, customize offerings and services to individual customers, operate new sales channels to augment geographic reach
Personalized Marketing
increased consumer desire for personalization and marketers have embraced concepts such as experiential marketing and relationship marketing
Experiential marketing
promotes a product by not only communicating a products features and benefits, but also connecting it with unique and interesting consumer experiences.
-focuses on customer experience, consumption situation
-views consumers as rational and emotional
-uses eclectic methods and tools
5 Types of experiential marketing
1.sense- appeals to consumers senses
2. feel- appeals to customers inner feelings and emotions-from mildly positive moods linked to a brand to strong emotions of joy and pride
3. Think-appeals to intellect in order to deliver cognitive problem solving experiences that engage customers creatively
4. Act- targets physical behaviors, lifestyles, and interactions
5. Relate marketing- creates experiences by taking into account individuals desires to be part of a social context
Relationship Marketing
based on premise that current customers are the key to long term brand success. more holistic, personalized brand experience to create stronger consumer ties, cheaper to keep customer than acquire new.
3 Ways to implement relationship marketing
1. Mass customization- addresses need of individualization
2. ONe-to-one marketing- focuses on consumers via databases, respond to customer via interactivity, impact-create switching costs, reduce transaction cost, loyalty building, customize products and services
3. permission marketing- practice of marketing to consumers only after gaining their express permission, break through clutter and build customer loyalty- offer prospect an incentive to volunteer (sample), offer interested curriculum over time, reinforce incentive to guarantee prospect maintains his permission, offer additional incentives, over time leverage permission to change consumer behavior toward profits, build long term relationship
Heart of brand equity
the product, must meet or exceed consumer expectations
perceived quality
influences attitude, behavior and perceptions of product superiority 7 dimensions: performance, primary ingredients and supplementary features, conformance quality (no defects), reliability, durability, serviceability, style and deisgn
aftermarketing marketing
the “second moment of truth”, marketers need to enhance the consumer experience after purchase, during consumption
objective:drive not only trial but repeat, user manuals customer service programs, loyalty programs
Product strategy: perceived quality and value
Brand intangibles and value chain?
Brand Intangibles
speed, accuracy, care of delivery and installation, product care, promptness, courtesy, helpfulness, quality of repair
value chain
leverage 5 value creating activities or four support activities to create competitive advantage, improve performance and reduce costs
value chain creating elements
improve performance, and add points of difference they are: inbound logistics, operations, outbound logistics, marketing sales, service
Value chain support elements
reduce cost they are: firm infrastructure, HR management, technological development, procurement
Value pricing
price/value that meets customer needs, balances product design/delivery, product costs, and product prices (consumer perceptions)
Every Day Low Price
limited or no trade promotions, finds right price balance, addresses other issues, forward buying and diverting, goal-keep retailer margins whole, restore price integrity, build rational consumer expectations
skimming (pricing)
capture top consumers, high price
penetration (pricing)
leverage position as low cost supplier
Marketing channels
sets of interdependent organizations involved in the process of making a product or service available for use or consumption. strategy includes design and management of intermediaries such as wholdsalers, distributers, brokers, retailers
Direct Channels
mail, phone, in person, electronic, product information needs are high, product customization is high, product quality assurance is important logistics are important
indirect channels
brokers, retailers, dealers, a broad assortment is essential, availability is critical, after sales service is important.
Private Label Strategies
products marketing by retailers- store brands good quality lower price, generics- functional at lowest price.
private label products threaten brands that are overpriced, under supported and undifferentiated

branded Response to PL- decrease costs, cut prices, increase r&D, improvements, ad and promo budgets, track growth, supply private label makers

Evolved 4 Ps
product is still the underpinning of a strong brand, successful programs create strong favorable and uniqe brand associations, pricing now equals value, relationship marketing vs mass marketing, channel strategies should match brand and store image
Common mistakes when working with agencies
selecting the wrong agency for the job, dont understand real marketing reative needs or provide right objectives, dont know how to evaluate agencies, dont know how to provide strategic direction and comment on creative
what to expect from your agency
being a partner, value added thinking, making you think outside comfort zone, provide you best resources available, relentless commitment to excellence, understand business and customer, need to have acess to right level, educate on latest trends
What your agency expects from you
not treating them as a vendor, treating them as a partner, they want you to own the marketing and brand strategy, constructive feedback, provide deep orientation, pay on time
Agency Selection process
define marketing objectives, develop the brief, identify and invite agencies to participate, determine selection process (credentials, strategy, creative), evaluation criteria, compensation agreement before final selection, check references, final selection
information persuasion process
exposure-person sees hears communication
attention-person must notice the communication
comprehension-person must understand message
yielding-person must respond favorably
intentions-person must plan to act in desired manner
behavior- person must actually act
Creative strategy
informational- benefit driven
transformational- imagery portrayal-typical or aspirational usage situation or user, brand personality and values
motivational- humor, warmth, sex appeal
Creative Brief Key Elements
brand background and strategic framework summary, copy considerations-insights on customer, talk value, reasons to believe, creative considerations-brand personality, demographic and psychographic brand description
Television Advertising
mass coverage, impact of sign sound and motion, high absolute costs, high production costs

works better when there are changes or iterations of same ad

Radio Advertising
local coverage, flexible, audio only
Magazine Advertising
Segmented potential, high information content, quality reproduction, lacks flexibility, long lead time
newspaper advertising
short lead time, timely, coupons, but shorter life
Direct Response Advertising
high selectivity, high information content, poor image (junk mail)
interactive/mobile advertising
customized and personalized, often lacks emotionality
outdoor advertising
location specific, short exposure
Paid Media
all forms of paid advertising, tv, radio etc
Owned Media
media channels, websites, social media
Earned Media
Consumers communicate about brand themselves
Sales Promotiosn
Are short term incentives to encourage trial or usage of product or service, advertising is the reason to buy, promotion is incentive to buy
pros- change choice, timing of consumer choice, secure shelf space, secure distribution
cons- decreased brand loyalty, decreased quality perceptions

Objectives- pursuade new category users to try category and brand, persuade existing brand x users to continue purchasing and not swutch, persuase existing category users to try brand

Event and experience marketing
allows you to be relevant at a special moment in consumers lives
Developing Integrated marketing and communications programs
Old Approach- stage of brand life cycle, objectives and budget, size of budget, media strategy of competition

goal is to create most effective and efficient communications program

6 Relevant criteria
coverage-audience reach and overlap
Contribution- create desired response
Commonality- create consistant and cohesive brand association/image
complementary- communications are most effective when used in tandem
versatility- how versatile a communication is for different customer segments new vs unaware
cost