Brand Management

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Brand Management
Brand management is the application of marketing techniques to a specific product, product line, or brand. The discipline of brand management was started at Procter & Gamble as a result of a famous memo by Neil H. McElroy. The American Marketing Association defines a brand as a "name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers. The legal term for brand is trademark. A brand may identify one item, a family of items, or all items of that seller. If used for the firm as a whole, the preferred term is trade name." A brand can take many forms, including a name, sign, symbol, color combination or slogan. The word branding began simply as a way to tell one person's cattle from another by means of a hot iron stamp. The word brand has continued to evolve to encompass identity it affects the personality of a product, company or service. A concept brand is a brand that is associated with an abstract concept, like breast cancer awareness or environmentalism, rather than a specific product, service, or business. A commodity brand is a brand associated with a commodity. Got milk? is an example of a commodity brand. In the automotive industry, brands were originally called marques, and marque is still often used as a synonym for brand in reference to motor vehicles. The word "brand" is sometimes used as a metonym, referring to a company that is strongly identified with a brand. Concepts Brand is the personality that identifies a product, service or company (name, term, sign, symbol, or design, or combination of them) and how it relates to key constituencies: customers, staff, partners, investors etc. Some people distinguish the psychological aspect, brand associations like thoughts, feelings, perceptions, images, experiences, beliefs, attitudes, and so on that become linked to the brand, of a brand from the experiential aspect. The experiential aspect consists of the sum of all points of contact with the brand and is known as the brand experience. The Psychological aspect, sometimes referred to as the brand image, is a symbolic construct created within the minds of people, consisting of all the information and expectations associated with a product, service or the company(ies) providing them.
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2 People engaged in branding seek to develop or align the expectations behind the brand experience, creating the impression that a brand associated with a product or service has certain qualities or characteristics that make it special or unique. A brand is therefore one of the most valuable elements in an advertising theme, as it demonstrates what the brand owner is able to offer in the marketplace. The art of creating and maintaining a brand is called brand management. Orientation of the whole organization towards its brand is called brand orientation. Careful brand management seeks to make the product or services relevant to the target audience. Brands should be seen as more than the difference between the actual cost of a product and its selling price - they represent the sum of all valuable qualities of a product to the consumer. A brand which is widely known in the marketplace acquires brand recognition. When brand recognition builds up to a point where a brand enjoys a critical mass of positive sentiment in the marketplace, it is said to have achieved brand franchise. One goal in brand recognition is the identification of a brand without the name of the company present. For example, Disney has been successful at branding with their particular script font (originally created for Walt Disney's "signature" logo), which it used in the logo for go.com. Consumers may look on branding as an important value added aspect of products or services, as it often serves to denote a certain attractive quality or characteristic (see also brand promise). From the perspective of brand owners, branded products or services also command higher prices. Where two products resemble each other, but one of the products has no associated branding (such as a generic, store-branded product), people may often select the more expensive branded product on the basis of the quality of the brand or the reputation of the brand owner. Brand awareness Brand awareness refers to customers' ability to recall and recognize the brand under different conditions and link to the brand name, logo, jingles and so on to certain associations in memory. It helps the customers to understand to which product or service category the particular brand belongs and what products and services are sold under the brand name. It also ensures that customers know which of their needs are satisfied by the brand through its products (Keller). Brand awareness is of critical importance since customers will not consider your brand if they are not aware of it. 'Brand love', or love of a brand, is an emerging term encompassing the perceived value of the brand image. Brand love levels are measured through social media posts about a brand, or tweets on sites such as Twitter. Becoming a Facebook fan of a particular brand is also a measurement of the level of 'brand love'.. Brand promise The marketer and owner of the brand has a vision of what the brand must be and do for the consumers. Brand promise is what a particular brand stands for (and has stood for in the past). It has its roots from the identity that it gains over a period of time. Usually, brand promise is an attribute common to '
3 Parent ' brands. Herein, the brand may broadly stand for Quality, Performance, Trust, or False promises. However, the extensions, or the brands under the parent brand umbrella, may stand individually for a particular trait which it has delivered over the years, for example, 'the best sparkling teeth', or 'the trusted bank to bank with for centuries', et al. Global brand A global brand is one which is perceived to reflect the same set of values around the world. Global brands transcend their origins and create strong enduring relationships with consumers across countries and cultures. They are brands sold in international markets. Examples of global brands include Facebook, Apple, Pepsi, McDonald's, Mastercard, Gap, Sony and Nike. These brands are used to sell the same product across multiple markets and could be considered successful to the extent that the associated products are easily recognizable by the diverse set of consumers. Benefits of global branding In addition to taking advantage of the outstanding growth opportunities, the following drives the increasing interest in taking brands global: o o o o o o o o o Economies of scale (production and distribution) Lower marketing costs Laying the groundwork for future extensions worldwide Maintaining consistent brand imagery Quicker identification and integration of innovations (discovered worldwide) Preempting international competitors from entering domestic markets or locking you out of other geographic markets Increasing international media reach (especially with the explosion of the Internet) is an enabler Increases in international business and tourism are also enablers Global brand variables
The following elements may differ from country to country: o o o o o o o o o o Corporate slogan Products and services Product names Product features Positionings Marketing mixes (including pricing, distribution, media and advertising execution) These differences will depend upon: Language differences Different styles of communication Other cultural differences
4 o o o o o Differences in category and brand development Different consumption patterns Different competitive sets and marketplace conditions Different legal and regulatory environments Different national approaches to marketing (media, pricing, distribution, etc.)
Local brand A brand that is sold and marketed (distributed and promoted) in a relatively small and restricted geographical area. A local brand is a brand that can be found in only one country or region. It may be called a regional brand if the area encompasses more than one metropolitan market. It may also be a brand that is developed for a specific national market, however an interesting thing about local brand is that the local branding is more often done by consumers than by the producers. Examples of local brands in Sweden are Stomatol, Sknemejerier, etc. Ambient brand An ambient brand is a movement, where the brand is organized around values and social needs instead of promoting a specific product. It is a virtual space, defined by values and occupied by a community of like minded people. Whereas a traditional brand is entirely dependent on products and their parent corporations, an ambient brand is an independent social movement that companies can participate in. They are not selling products, they are allowing their company to participate in a social movement and allow their brand to be identified with this. It exists as a shared values space where consumers gather, converse and ultimately transact with organizations that appear to be in alignment with the values associated with that community. Corporations do not create ambient brands. They must qualify for inclusion within them by demonstrating that they share the values and will service the interests of their associated communities. The brands develop organically as a result of emerging social and cultural codes and are materialized through people's ability to organize around them through the use of mainly virtual communities on the web. The term as it is defined here was coined by Sara Batterby, a brand strategist in San Francisco and was used in an interview on the importance of successful destination branding with Bjrn Frode Moen Brand name Relationship between trade marks and brand The brand name is quite often used interchangeably with "brand", although it is more correctly used to specifically denote written or spoken linguistic elements of any product. In this context a "brand name" constitutes a type of trademark, if the brand name exclusively identifies the brand owner as the commercial source of products or services. A brand owner may seek to protect proprietary rights in relation to a brand name through trademark registration and such trademarks are called "Registered Trademarks". Advertising spokespersons have also become part of some brands, for example: Mr. Whipple of Charmin toilet tissue and Tony the Tiger of Kellogg's Frosted Flakes. Local branding is usually done by the consumers rather than the producers.
5 Types of brand names o o o o o o o o o o Brand names come in many styles. A few include: Acronym: A name made of initials such as UPS or IBM Descriptive: Names that describe a product benefit or function like Whole Foods or Airbus Alliteration and rhyme: Names that are fun to say and stick in the mind like Reese's Pieces or Dunkin' Donuts Evocative: Names that evoke a relevant vivid image like Amazon or Crest Neologisms: Completely made-up words like Wii or Kodak Foreign word: Adoption of a word from another language like Volvo or Samsung Founders' names: Using the names of real people,and founder's name like Hewlett-Packard or Disney Geography: Many brands are named for regions and landmarks like Cisco and Fuji Film Personification: Many brands take their names from myth like Nike or from the minds of ad execs like Betty Crocker
The act of associating a product or service with a brand has become part of pop culture. Most products have some kind of brand identity, from common table salt to designer jeans. A brandnomer is a brand name that has colloquially become a generic term for a product or service, such as Band-Aid or Kleenex, which are often used to describe any brand of adhesive bandage or ny brand of facial tissue respectively. Brand identity The outward expression of a brand, including its name, trademark, communications, and visual appearance. Because the identity is assembled by the brand owner, it reflects how the owner wants the consumer to perceive the brand - and by extension the branded company, organization, product or service. This is in contrast to the brand image, which is a customer's mental picture of a brand. The brand owner will seek to bridge the gap between the brand image and the brand identity. Effective brand names build a connection between the brand personality as it is perceived by the target audience and the actual product/service. The brand name should be conceptually on target with the product/service (what the company stands for). Furthermore, the brand name should be on target with the brand demographic. Typically, sustainable brand names are easy to remember, transcend trends and have positive connotations. Brand identity is fundamental to consumer recognition and symbolizes the brand's differentiation from competitors. Brand identity is what the owner wants to communicate to its potential consumers. However, over time, a product's brand identity may acquire (evolve), gaining new attributes from consumer perspective but not necessarily from the marketing communications an owner percolates to targeted consumers. Therefore, brand associations become handy to check the consumer's perception of the brand. Brand identity needs to focus on authentic qualities - real characteristics of the value and brand promise being provided and sustained by organizational and/or production characteristics.
6 Visual brand identity The visual brand identity manual for Mobil Oil (developed by Chermayeff & Geismar), one of the first visual identities to integrate logotype, icon, alphabet, color palette, and station architecture to create a comprehensive consumer brand experience. The recognition and perception of a brand is highly influenced by its visual presentation. A brands visual identity is the overall look of its communications. Effective visual brand identity is achieved by the consistent use of particular visual elements to create distinction, such as specific fonts, colors, and graphic elements. At the core of every brand identity is a brand mark, or logo. In the United States, brand identity and logo design naturally grew out of the Modernist movement in the 1950s and greatly drew on the principles of that movement simplicity (Mies van der Rohes principle of "Less is more" and geometric abstraction. These principles can be observed in the work of the pioneers of the practice of visual brand identity design, such as Paul Rand, Chermayeff & Geismar and Saul Bass. Brand parity Brand parity is the perception of the customers that some brands are equivalent. This means that shoppers will purchase within a group of accepted brands rather than choosing one specific brand. When brand parity is present, quality is often not a major concern because consumers believe that only minor quality differences exist. Expanding role of brand it was meant to make identifying and differentiating a product easier. Over time, brands came to embrace a performance or benefit promise, for the product, certainly, but eventually also for the company behind the brand. Today, brand plays a much bigger role. Brands have been co-opted as powerful symbols in larger debates about economics, social issues, and politics. The power of brands to communicate a complex message quickly and with emotional impact and the ability of brands to attract media attention, make them ideal tools in the hands of activists. Branding approaches Company name Often, especially in the ine of the most powerful statements of branding: saying just before the company's downgrading, "No one ever got fired for buying IBM"). This approach has not worked as well for General Motors, which recently overhauled how its corporate brand relates to the product brands. Exactly how the company name relates to product and services names is known as brand architecture. Decisions about company names and product names and their relationship depends on more than a dozen strategic considerations. In this case a strong brand name (or company name) is made the vehicle for a range of products (for example, Mercedes-Benz or Black & Decker) or a range of subsidiary brands (such as Cadbury Dairy Milk, Cadbury Flake or Cadbury Fingers in the United States).
7 Individual branding Each brand has a separate name (such as Seven-Up, Kool-Aid or Nivea Sun (Beiersdorf)), which may compete against other brands from the same company (for example, Persil, Omo, Surf and Lynx are all owned by Unilever). Attitude branding and iconic brands Attitude branding is the choice to represent a larger feeling, which is not necessarily connected with the product or consumption of the product at all. Marketing labeled as attitude branding include that of Nike, Starbucks, The Body Shop, Safeway, and Apple Inc.. In the 2000 book No Logo, Naomi Klein describes attitude branding as a "fetish strategy". "A great brand raises the bar -- it adds a greater sense of purpose to the experience, whether it's the challenge to do your best in sports and fitness, or the affirmation that the cup of coffee you're drinking really matters." - Howard Schultz (president, CEO, and chairman of Starbucks) The color, letter font and style of the Coca-Cola and Diet Coca-Cola logos in English were copied into matching Hebrew logos to maintain brand identity in Israel. Iconic brands are defined as having aspects that contribute to consumer's self-expression and personal identity. Brands whose value to consumers comes primarily from having identity value are said to be "identity brands". Some of these brands have such a strong identity that they become more or less cultural icons which makes them "iconic brands". Examples are: Apple, Nike and Harley Davidson. Many iconic brands include almost ritual-like behaviour in purchasing or consuming the products. There are four key elements to creating iconic brands (Holt 2004): "Necessary conditions" - The performance of the product must at least be acceptable, preferably with a reputation of having good quality. "Myth-making" - A meaningful storytelling fabricated by cultural insiders. These must be seen as legitimate and respected by consumers for stories to be accepted. "Cultural contradictions" - Some kind of mismatch between prevailing ideology and emergent undercurrents in society. In other words a difference with the way consumers are and how they wish they were. "The cultural brand management process" - Actively engaging in the myth-making process in making sure the brand maintains its position as an icon. "No-brand" branding
8 Recently a number of companies have successfully pursued "no-brand" strategies by creating packaging that imitates generic brand simplicity. Examples include the Japanese company Muji, which means "No label" in English (from "Mujirushi Ryohin" literally, "No brand quality goods"), and the Florida company No-Ad Sunscreen. Although there is a distinct Muji brand, Muji products are not branded. This no-brand strategy means that little is spent on advertisement or classical marketing and Muji's success is attributed to the word-of-mouth, a simple shopping experience and the anti-brand movement. "No brand" branding may be construed as a type of branding as the product is made conspicuous through the absence of a brand name. "Tapa Amarilla" or "Yellow Cap" in Venezuela during the 80s is another good example of no-brand strategy. It was simply recognized by the color of the cap of this cleaning products company. Derived brands In this case the supplier of a key component, used by a number of suppliers of the end-product, may wish to guarantee its own position by promoting that component as a brand in its own right. The most frequently quoted example is Intel, which positions itself in the PC market with the slogan (and sticker) "Intel Inside". Brand extension and brand dilution The existing strong brand name can be used as a vehicle for new or modified products; for example, many fashion and designer companies extended brands into fragrances, shoes and accessories, home textile, home decor, luggage, (sun-) glasses, furniture, hotels, etc. Mars extended its brand to ice cream, Caterpillar to shoes and watches, Michelin to a restaurant guide, Adidas and Puma to personal hygiene. Dunlop extended its brand from tires to other rubber products such as shoes, golf balls, tennis racquets and adhesives. There is a difference between brand extension and line extension. A line extension is when a current brand name is used to enter a new market segment in the existing product class, with new varieties or flavors or sizes. When Coca-Cola launched "Diet Coke" and "Cherry Coke" they stayed within the originating product category: non-alcoholic carbonated beverages.
Procter & Gamble (P&G) did likewise extending its strong lines (such as Fairy Soap) into neighboring products (Fairy Liquid and Fairy Automatic) within the same category, dish washing detergents. The risk of over-extension is brand dilution where the brand loses its brand associations with a market segment, product area, or quality, price or cachet.
9 Multi-brands Alternatively, in a market that is fragmented amongst a number of brands a supplier can choose deliberately to launch totally new brands in apparent competition with its own existing strong brand (and often with identical product characteristics); simply to soak up some of the share of the market which will in any case go to minor brands. The rationale is that having 3 out of 12 brands in such a market will give a greater overall share than having 1 out of 10 (even if much of the share of these new brands is taken from the existing one). In its most extreme manifestation, a supplier pioneering a new market which it believes will be particularly attractive may choose immediately to launch a second brand in competition with its first, in order to pre-empt others entering the market. Individual brand names naturally allow greater flexibility by permitting a variety of different products, of differing quality, to be sold without confusing the consumer's perception of what business the company is in or diluting higher quality products. Once again, Procter & Gamble is a leading exponent of this philosophy, running as many as ten detergent brands in the US market. This also increases the total number of "facings" it receives on supermarket shelves. Sara Lee, on the other hand, uses it to keep the very different parts of the business separate from Sara Lee cakes through Kiwi polishes to L'Eggs pantyhose. In the hotel business, Marriott uses the name Fairfield Inns for its budget chain (and Ramada uses Rodeway for its own cheaper hotels). Cannibalization is a particular problem of a "multibrand" approach, in which the new brand takes business away from an established one which the organization also owns. This may be acceptable (indeed to be expected) if there is a net gain overall. Alternatively, it may be the price the organization is willing to pay for shifting its position in the market; the new product being one stage in this process. Private labels With the emergence of strong retailers, private label brands, also called own brands, or store brands, also emerged as a major factor in the marketplace. Where the retailer has a particularly strong identity (such as Marks & Spencer in the UK clothing sector) this "own brand" may be able to compete against even the strongest brand leaders, and may outperform those products that are not otherwise strongly branded. Individual and organizational brands There are kinds of branding that treat individuals and organizations as the products to be branded. Personal branding treats persons and their careers as brands. The term is thought to have been first used in a 1997 article by Tom Peters. Faith branding treats religious figures and organizations as brands. Religious media expert Phil Cooke has written that faith branding handles the question of how to express faith in a media-dominated culture. Nation branding works with the perception and reputation of countries as brands.
10 Crowdsourcing Branding These are brands that are created by the people for the business, which is opposite to the traditional method where the business create a brand. This type of method minimizes the risk of brand failure, since the people that might reject the brand in the traditional method are the ones who are participating in the branding process. Nation Branding (Place Branding & Public diplomacy) Nation branding is a field of theory and practice which aims to measure, build and manage the reputation of countries (closely related to place branding). Some approaches applied, such as an increasing importance on the symbolic value of products, have led countries to emphasise their distinctive characteristics. The branding and image of a nation-state "and the successful transference of this image to its exports - is just as important as what they actually produce and sell." History The word "brand" is derived from the Old Norse brandr meaning "to burn." It refers to the practice of producers burning their mark (or brand) onto their products. Although connected with the history of trademarks and including earlier examples which could be deemed "protobrands" (such as the marketing puns of the "Vesuvinum" wine jars found at Pompeii), brands in the field of mass-marketing originated in the 19th century with the advent of packaged goods. Industrialization moved the production of many household items, such as soap, from local communities to centralized factories. When shipping their items, the factories would literally brand their logo or insignia on the barrels used, extending the meaning of "brand" to that of trademark. Bass & Company, the British brewery, claims their red triangle brand was the world's first trademark. Lyles Golden Syrup makes a similar claim, having been named as Britain's oldest brand, with its green and gold packaging having remained almost unchanged since 1885. Another example comes from Antiche Fornaci Giorgi in Italy, whose bricks are stamped or carved with the same proto-logo since 1731, as found in Saint Peter's Basilica in Vatican City. Cattle were branded long before this. The term "maverick," originally meaning an unbranded calf, comes from Texas rancher Samuel Augustus Maverick who, following the American Civil War, decided that since all other cattle were branded, his would be identified by having no markings at all. Even the signatures on paintings of famous artists like Leonardo Da Vinci can be viewed as an early branding tool. Factories established during the Industrial Revolution introduced mass-produced goods and needed to sell their products to a wider market, to customers previously familiar only with locally-produced goods. It quickly became apparent that a generic package of soap had difficulty competing with familiar, local products. The packaged goods manufacturers needed to convince the market that the public could place just as much trust in the non-local product. Campbell soup, Coca-Cola, Juicy Fruit gum, Aunt Jemima, and Quaker Oats were among the first products to be 'branded', in an effort to increase the consumer's familiarity with their products. Many brands of that era, such as Uncle Ben's rice and Kellogg's breakfast
11 cereal furnish illustrations of the problem. Around 1900, James Walter Thompson published a house ad explaining trademark advertising. This was an early commercial explanation of what we now know as branding. Companies soon adopted slogans, mascots, and jingles that began to appear on radio and early television. By the 1940s, manufacturers began to recognize the way in which consumers were developing relationships with their brands in a social/psychological/anthropological sense. From there, manufacturers quickly learned to build their brand's identity and personality (see brand identity and brand personality), such as youthfulness, fun or luxury. This began the practice we now know as "branding" today, where the consumers buy "the brand" instead of the product. This trend continued to the 1980s, and is now quantified in concepts such as brand value and brand equity. Naomi Klein has described this development as "brand equity mania". In 1988, for example, Philip Morris purchased Kraft for six times what the company was worth on paper; it was felt that what they really purchased was its brand name. Marlboro Friday: April 2, 1993 - marked by some as the death of the brand - the day Philip Morris declared that they were cutting the price of Marlboro cigarettes by 20% in order to compete with bargain cigarettes. Marlboro cigarettes were noted at the time for their heavy advertising campaigns and well-nuanced brand image. In response to the announcement Wall street stocks nose-dived for a large number of branded companies: Heinz, Coca Cola, Quaker Oats, PepsiCo. Many thought the event signalled the beginning of a trend towards "brand blindness" (Klein 13), questioning the power of "brand value." Brand architecture: Brand architecture is the structure of brands within an organizational entity. It is the way in which the brands within a companys portfolio are related to, and differentiated from, one another. The architecture should define the different leagues of branding within the organization; how the corporate brand and sub-brands relate to and support each other; and how the sub-brands reflect or reinforce the core purpose of the corporate brand to which they belong. According to Rajagopal and Sanchez Brand architecture may be defined as an integrated process of brand building through establishing brand relationships among branding options in the competitive environment. The brand architecture of an organization at any time is, in large measure, a legacy of past management decisions as well as the competitive realities it faces in the marketplace. Types of brand architecture There are three key levels of branding: Corporate brand, umbrella brand, and family brand - Examples include Virgin Group and Heinz. These are consumer-facing brands used across all the firm's activities, and this name is how they are known to
12 all their stakeholders consumers, employees, shareholders, partners, suppliers and other parties. These brands may also be used in conjunction with product descriptions or sub-brands: for example Heinz Cream of Tomato Soup, or Virgin Trains. Endorsed brands, and sub-brands - For example, Nestle KitKat, Cadbury Dairy Milk, Sony PlayStation or Polo by Ralph Lauren. These brands include a parent brand - which may be a corporate brand, an umbrella brand, or a family brand - as an endorsement to a sub-brand or an individual, product brand. The endorsement should add credibility to the endorsed sub-brand in the eyes of consumers. Individual product brand - For example, Procter & Gambles Pampers or Unilever's Dove. The individual brands are presented to consumers, and the parent company name is given little or no prominence. Other stakeholders, like shareholders or partners, will know the producer by its company name. A recent example of brand architecture in action is the reorganization of the General Motors brand portfolio to reflect its new strategy. Prior to bankruptcy, the company pursued a corporate-endorsed hybrid brand architecture structure, where GM underpinned every brand. The practice of putting the "GM Mark of Excellence" on every car, no matter what the brand, was discontinued in August, 2009. In the run-up to the IPO, the company adopted a multiple brand corporate invisible brand architecture structure. The company's familiar square blue "badge" has been removed from the Web site and advertising, in favor of a new, subtle all-text logo treatment. Strategic Considerations Deciding what strategy to pursue in structuring the company brand portfolio depends on the answer of a number of strategic issues. According to the article Brand Architecture: Strategic Considerations, the issues to consider include: Audience Diversity What are the target segments for your brand? Is the brand focused on just one audience or must it appeal to many? Brand Elasticity How far can each of the brands stretch to cover different products and markets? Harley Davidson made a classic blunder applying their brand to wine coolers. Product/Service Offerings How are other brands in the portfolio positioned and targeted? Are some of your brands complementary, competitive or incongruent? Competitive Context What are competitive branding practices? How do customers view the marketplace? Do your brands help you stand out and grab market share? Brand Equities Do you have brands with a particular following or a unique heritage or equity must be carried forward? Geographic Needs How consistent are needs/preferences across cultures and markets? Strong local brands might not work in other countries. Not every brand can travel. Organizational Structures Who is accountable for branding practices and standards? What are the political realities behind brands in your portfolio?
13 Ownership Does the organization have legal control over its brand? Youll have less leeway with licensed brands. Sources of Growth What businesses and brands are expected to drive future growth for your company? Are they helping you pursue your strategy? Purchase Criteria How do people buy your products? Do they ask for products by brand name or do they ask for a generic name or your company brand name? Do your brands make buying easier? How much do people want or need your brands? Brand Performance How do brands perform against desired attributes? Is their positioning clear and effective? Brand Role What is role of brand in fulfilling the business model? How important is the brand in driving awareness or creating loyalty? Channels What channels and distribution methods are available and how are they used across the brand portfolio? Company Specific Issues What considerations are specific to your company or industry? What might be technically correct might not be feasible in the reality of your company. Sometimes theory has to bow to practicality. Brand Engagement Brand Engagement is a term loosely used to describe the process of forming an attachment (emotional and rational) between a person and a brand. It comprises one aspect of brand management. What makes the topic complex is that brand engagement is partly created by institutions and organizations, but is equally created by the perceptions, attitudes, beliefs, and behaviors of those with whom these institutions and organizations are communicating or engaging with. As a relatively new addition to the marketing and communication mix, brand engagement sits in the space between marketing, advertising, media communication, social media, employer branding, organizational development, internal communications and human resource management. There is still lack of clarity and debate about whether this is a soft or hard measure, and whether it can be linked to any consumer or employee behavior change e.g. sales activity, trial, or recommendation. External Brand Engagement Brand engagement between a brand and its consumers/potential consumers is a key objective of a brand marketing effort. In general, the ways a brand connects to its consumer is via a range of "touchpoints" -- that is, a sequence or list of potential ways the brand makes contact with the individual. Examples include retail environments, advertising, word of mouth, online, and the product/service itself. Internal ("close stakeholder") brand engagement
14 There are two broad areas where brand engagement is relevant within an organization (employees and close stakeholders such as franchise staff, call centers, suppliers or intermediaries). The first area is ensuring that the employer brand promised to employees is delivered upon once employees join the firm. If the employee experience is not what is promised, this could result in increased employee turnover and/or decreased performance. The second area is ensuring employees and close stakeholders of an organization completely understand the organization's brand, and what it stands forand to make sure that their activities on a day to day basis are contributing to expressing that brand through the customer experience. In general, this requires an ongoing effort on the part of the organization to ensure that its employees and close stakeholders understand what the brand is promising to its customers, and to help all employees clearly understand how their actions and behaviors, on a day to day basis, either support or undermine the effort. This often raises the issue of the value of investment in "brand engagement." It is a discretionary expense on the part of the organization. Proponents of brand engagement would argue that this is an investmentthat is, the benefits to the organization outweigh the cost of the program. Within any organization there is competition for resources, so there is a significant need to demonstrate Return on Investment in employee engagement/internal communications. While it is generally accepted that it is important for internal communications professionals to demonstrate the value this function delivers to the organization, it is difficult to place a discrete figure on this contribution. Best practice in internal communications generally adheres to certain principles: o o o o o Understanding the stakeholder (audiences) Knowing what messages and information is appropriate for each audience Ensuring that there is a feedback mechanism in place so communication is a dialogue Measuring effectiveness Enhancing participation and collaboration.
An aspect of internal brand engagement is Brand orientation which refers to "the degree to which the organization values brands and its practices are oriented towards building brand capabilities." Thought leaders are increasingly placing employee engagement at the forefront of the fight for greater authenticity in the workplace, increased employee satisfaction and ultimately greater retention and improved customer service. They are passionate about the link to bottom line benefits and strongly advocate working on brands from the inside out. There are a range of experts and service providers who have created offers to bring the brand to lifeall agree that the employee side of the equation is far more important than has been historically acknowledged.
15 The measurement angle Much internal communication and employee engagement practice is based on measurement of effectiveness or business contribution. The key elements in creating a model of employee engagement is the measurement of "engagement drivers" -- that is, what are the factors or combinations of factors which have an impact on productivity and commitment and can be monitored and addressed through people, process or technology changes? Many of the engagement drivers currently in use internally are HR focused, and in many cases do not delve deeply into the employees role in delivering the brand/customer experience as a distinct element. Example Probably the most compelling example of this is the service-profit chain. The first real case study of this appeared in "The Service Profit Chain" (the so-called Sears Model, Harvard Business Review, 1997). This statistical model tracks increases in employee engagement drivers to correlated increases in customer satisfaction and loyalty, and then correlates this to increases in Total Shareholder Return (TSR), revenue and other financial performance measures. Since the service-profit chain emerged, its been developed, and criticized, but the general consensus is that employee engagement can contribute roughly 20% to an organizations TSR (various Vivaldi, Watson Wyatt, Towers Perrin studies 2004, 2005, 2006). Collaboration and connectivity vs. content management While some organizations are realizing the benefits of collaboration and work flow online, there appears to be significant focus on publishing and managing content, generally via Content Management Systems. There is an emerging school of thought that organizational perspectives on technology are frequently misaligned with the actual requirements and desires of the users of the technology. That is, the nature (or intention) of a technology may not always determine the nature of its use the telephone, for example, was originally intended as a broadcast medium. Its designers were focused on delivering content, while its users sought and still value connectivity. The social media phenomenon presents emerging evidence that this quest for connectivity is rapidly becoming a core focus of communication technology within organizations. This potentially creates a disconnect with more traditional content-driven models of internal communicationdelivering (or making easily available) the right content at the right time to the right people using the right media. Therefore, there could be a great deal of potential within organisations, using their existing technologies, to derivecultural and performance benefits from re-thinking how they communicate, make decisions and work virtually.
16 Brand equity Brand equity is strategically crucial, but famously difficult to quantify. Many experts have developed tools to analyze this asset, but there is no universally accepted way to measure it. In a survey of nearly 200 senior marketing managers, only 26 percent responded that they found the "brand equity" metric very useful. Brand equity is the marketing effects and outcomes that accrue to a product with its brand name compared with those that would accrue if the same product did not have the brand name. Fact of the well-known brand name is that, the company can sometimes charge premium prices from the consumer. And, at the root of these marketing effects is consumers' knowledge. In other words, consumers' knowledge about a brand makes manufacturers and advertisers respond differently or adopt appropriately adept measures for the marketing of the brand. The study of brand equity is increasingly popular as some marketing researchers have concluded that brands are one of the most valuable assets a company has. Brand equity is one of the factors which can increase the financial value of a brand to the brand owner, although not the only one. Elements that can be included in the valuation of brand equity include (but not limited to): changing market share, profit margins, consumer recognition of logos and other visual elements, brand language associations made by consumers, consumers' perceptions of quality and other relevant brand values. Purpose The purpose of brand equity metrics is to measure the value of a brand. A brand encompasses the name, logo, image, and perceptions that identify a product, service, or provider in the minds of customers. It takes shape in advertising, packaging, and other marketing communications, and becomes a focus of the relationship with consumers. In time, a brand comes to embody a promise about the goods it identifiesa promise about quality, performance, or other dimensions of value, which can influence consumers' choices among competing products. When consumers trust a brand and find it relevant, they may select the offerings associated with that brand over those of competitors, even at a premium price. When a brand's promise extends beyond a particular product, its owner may leverage it to enter new markets. For all these reasons, a brand can hold tremendous value, known as brand equity. Construction In practice, brand equity is difficult to measure. Because brands are crucial assets, however, both marketers and academic researchers have devised means to contemplate their value. Some of these techniques are described in the "Methodologies" section below. Methodologies Brand Equity Ten (Aaker): David Aaker, a marketing professor and brand consultant, highlights ten attributes of a brand that can be used to assess its strength. These include Differentiation, Satisfaction or Loyalty, Perceived Quality, Leadership or Popularity, Perceived Value, Brand Personality, Organizational Associations, Brand Awareness, Market Share, and Market Price and Distribution Coverage. Aaker doesn't weight the attributes or combine them in an overall score, as he believes any
17 weighting would be arbitrary and would vary among brands and categories. Rather he recommends tracking each attribute separately. Brand Equity Index (Moran): Marketing executive Bill Moran has derived an index of brand equity as the product of three factors: Effective Market Share is a weighted average. It represents the sum of a brand's market shares in all segments in which it competes, weighted by each segment's proportion of that brand's total sales. Relative Price is a ratio. It represents the price of goods sold under a given brand, divided by the average price of comparable goods in the market. Durability is a measure of customer retention or loyalty. It represents the percentage of a brand's customers who will continue to buy goods under that brand in the following year. Brand Asset Valuator (Young & Rubicam): Young & Rubicam, a marketing communications agency, has developed the Brand Asset Valuator, a tool to diagnose the power and value of a brand. In using it, the agency surveys consumers' perspectives along four dimensions: o o o o Differentiation: The defining characteristics of the brand and its distinctiveness relative to competitors. Relevance: The appropriateness and connection of the brand to a given consumer. Esteem: Consumers' respect for and attraction to the brand. Knowledge: Consumers' awareness of the brand and understanding of what it represents.
Brand Valuation Model (Interbrand): Interbrand, a brand strategy agency, draws upon financial results and projections in its own model for brand valuation. It reviews a company's financial statements, analyzes its market dynamics and the role of brand in income generation, and separates those earnings attributable to tangible assets (capital, product, packaging, and so on) from the residual that can be ascribed to a brand. It then forecasts future earnings and discounts these on the basis of brand strength and risk. The agency estimates brand value on this basis and tabulates a yearly list of the 100 most valuable global brands. Conjoint Analysis: Marketers use conjoint analysis to measure consumers' preference for various attributes of a product, service, or provider, such as features, design, price, or location. By including brand and price as two of the attributes under consideration, they can gain insight into consumers' valuation of a brandthat is, their willingness to pay a premium for it. Note: These customer satisfaction methodologies have not been independently audited by the Marketing Accountability Standards
18 Board (MASB) according to MMAP (Marketing Metric Audit Protocol). Measurement: There are many ways to measure a brand. Some measurements approaches are at the firm level, some at the product level, and still others are at the consumer level. Firm Level: Firm level approaches measure the brand as a financial asset. In short, a calculation is made regarding how much the brand is worth as an intangible asset. For example, if you were to take the value of the firm, as derived by its market capitalizationand then subtract tangible assets and "measurable" intangible assetsthe residual would be the brand equity. One high-profile firm level approach is by the consulting firm Interbrand. To do its calculation, Interbrand estimates brand value on the basis of projected profits discounted to a present value. The discount rate is a subjective rate determined by Interbrand and Wall Street equity specialists and reflects the risk profile, market leadership, stability and global reach of the brand. Product Level: The classic product level brand measurement example is to compare the price of a noname or private label product to an "equivalent" branded product. The difference in price, assuming all things equal, is due to the brand. More recently a revenue premium approach has been advocated. Consumer Level: This approach seeks to map the mind of the consumer to find out what associations with the brand the consumer has. This approach seeks to measure the awareness (recall and recognition) and brand image (the overall associations that the brand has). Free association tests and projective techniques are commonly used to uncover the tangible and intangible attributes, attitudes, and intentions about a brand. Brands with high levels of awareness and strong, favorable and unique associations are high equity brands. All of these calculations are, at best, approximations. A more complete understanding of the brand can occur if multiple measures are used. Positive brand equity vs. negative brand equity Brand equity is the positive effect of the brand on the difference between the prices that the consumer accepts to pay when the brand known compared to the value of the benefit received. There are two schools of thought regarding the existence of negative brand equity. One perspective states brand equity cannot be negative, hypothesizing only positive brand equity is created by marketing activities such as advertising, PR, and promotion. A second perspective is that negative equity can exist, due to catastrophic events to the brand, such as a wide product recall or continued negative press attention (Blackwater or Halliburton, for example). Colloquially, the term "negative brand equity" may be used to describe a product or service where a brand has a negligible effect on a product level when compared to a no-name or private label product.
19 Family branding vs. individual branding strategies The greater a company's brand equity, the greater the probability that the company will use a family branding strategy rather than an individual branding strategy. This is because family branding allows them to leverage the equity accumulated in the core brand. Aspects of brand equity include: brand loyalty, awareness, association (read more here), and perception of quality . Examples In the early 2000s in North America, the Ford Motor Company made a strategic decision to brand all new or redesigned cars with names starting with "F." This aligned with the previous tradition of naming all sport utility vehicles since the Ford Explorer with the letter "E." The Toronto Star quoted an analyst who warned that changing the name of the well known Windstar to the Freestar would cause confusion and discard brand equity built up, while a marketing manager believed that a name change would highlight the new redesign. The aging Taurus, which became one of the most significant cars in American auto history, would be abandoned in favor of three entirely new names, all starting with "F," the Five Hundred, Freestar, and Fusion. By 2007, the Freestar was discontinued without a replacement. The Five Hundred name was thrown out and Taurus was brought back for the next generation of that car in a surprise move by Alan Mulally. Brand loyalty The situation in which a consumer generally buys the same manufacturer-originated product or service repeatedly over time rather than buying from multiple suppliers within the category (sales promotion definition).The degree to which a consumer consistently purchases the same brand within a product class (consumer behavior definition). Otherwise stated, brand loyalty, in marketing, consists of a consumer's commitment to repurchase or otherwise continue using the brand and can be demonstrated by repeated buying of a product or service, or other positive behaviors such as word of mouth advocacy. In a survey of nearly 200 senior marketing managers, 69 percent responded that they found the "loyalty" metric very useful. Brand loyalty is more than simple repurchasing, however. Customers may repurchase a brand due to situational constraints (such as vendor lock-in), a lack of viable alternatives, or out of convenience. Such loyalty is referred to as "spurious loyalty". True brand loyalty exists when customers have a high relative attitude toward the brand which is then exhibited through repurchase behavior.This type of loyalty can be a great asset to the firm: customers are willing to pay higher prices, they may cost less to serve, and can bring new customers to the firm. For example, if Joe has brand loyalty to Company A he will purchase Company A's products even if Company B's are cheaper and/or of a higher quality. From the point of view of many marketers, loyalty to the brand in terms of consumer usage is a key factor.
20 Usage rate Most important of all, in this context, is usually the 'rate' of usage, to which the Pareto 80-20 Rule applies. Kotler's 'heavy users' are likely to be disproportionately important to the brand (typically, 20 percent of users accounting for 80 percent of usage and of suppliers' profit). As a result, suppliers often segment their customers into 'heavy', 'medium' and 'light' users; as far as they can, they target 'heavy users'. Loyalty A second dimension, however, is whether the customer is committed to the brand. Philip Kotler, again, defines four patterns of behaviour: Hard-core Loyals - who buy the brand all the time. Split Loyals - loyal to two or three brands. Shifting Loyals - moving from one brand to another. Switchers - with no loyalty (possibly 'deal-prone', constantly looking for bargains or 'vanity prone', looking for something different). Factors influencing brand loyalty It has been suggested that loyalty includes some degree of pre-dispositional commitment toward a brand. Brand loyalty is viewed as multidimensional construct. It is determined by several distinct psychological processes and it entails multivariate measurements. Customers' perceived value, brand trust, customers' satisfaction, repeat purchase behaviour, and commitment are found to be the key influencing factors of brand loyalty. Commitment and repeated purchase behaviour are considered as necessary conditions for brand loyalty followed by perceived value, satisfaction, and brand trust. Fred Reichheld, one of the most influential writers on brand loyalty, claimed that enhancing customer loyalty could have dramatic effects on profitability. Among the benefits from brand loyalty specifically, longer tenure or staying as a customer for longer was said to be lower sensitivity to price. This claim had not been empirically tested until recently. Recent research found evidence that longer-term customers were indeed less sensitive to price increases. Industrial markets In industrial markets, organizations regard the 'heavy users' as 'major accounts' to be handled by senior sales personnel and even managers; whereas the 'light users' may be handled by the general salesforce or by a dealer. Portfolios of brands Andrew Ehrenberg, then of the London Business School said that consumers buy 'portfolios of brands'. They switch regularly between brands, often because they simply want a change. Thus, 'brand
21 penetration' or 'brand share' reflects only a statistical chance that the majority of customers will buy that brand next time as part of a portfolio of brands they favour. It does not guarantee that they will stay loyal. Influencing the statistical probabilities facing a consumer choosing from a portfolio of preferred brands, which is required in this context, is a very different role for a brand manager; compared with the much simpler one traditionally described of recruiting and holding dedicated customers. The concept also emphasises the need for managing continuity. Market inertia One of the most prominent features of many markets is their overall stability or inertia. Thus, in their essential characteristics they change very slowly, often over decades sometimes centuries rather than over months. This stability has two very important implications. The first is that those who are clear brand leaders are especially well placed in relation to their competitors and should want to further the inertia which lies behind that stable position. This, however, still demands a continuing pattern of minor changes to keep up with the marginal changes in consumer taste (which may be minor to the theorist but will still be crucial in terms of those consumers' purchasing patterns as markets do not favour the overcomplacent). These minor investments are a small price to pay for the long term profits which brand leaders usually enjoy. The second, and more important, is that someone who wishes to overturn this stability and change the market (or significantly change one's position in it), massive investments must be expected to be made in order to succeed. Even though stability is the natural state of markets, sudden changes can still occur, and the environment must be constantly scanned for signs of these. Green brands Green brands are those brands that consumers associate with environmental conservation and sustainable business practices. Such brands appeal to consumers who are becoming more aware of the need to protect the environment. A green brand can add a unique selling point to a product and can boost corporate image. However, if a company is found or perceived to overstate its green practices its green brand may be criticised as greenwash. Increase in green brands Ethical consumerism has led to an increase in green brands. In the food and drinks industry only 5 green brand products were launched in 2002, increasing to 328 in 2007 (Mintel global database).
22 Packaging In the case of consumer brands packaging can be a key element in communicating a green brand. This is because packaging communicates information to the consumer at the point-of-sale, and because of the environmental impact of the packaging itself. Companies may claim sustainable packaging, recycled and/or recyclable material, or reduce excess packaging. Packaging is of especially high brand importance when the packaging is part of the aesthetic appeal of the product and brand, as in the case of the cosmetics and toiletries sector. Packaging material may have to not only reinforce environmental credentials, but also communicate the high-quality and luxury image of the brand. Advertisement and marketing standards concerns In Europe concerns have been raised that consumers might be confused or mislead as a result of a recent increase in green brands. Because green brands can add a unique selling point there is little consistency from brand to brand. In the food and drinks industry it has been observed that companies are reluctant to use existing and widely recognised green logos, such as the mobius loop, because using their own makes the brand more easily distinguishable for the consumer. In Britain, the Advertising Standards Authority (ASA) has warned consumers in mid 2007, that some "green" claims might not be authentic. The ASA stated that green claims have become noticeably more prevalent in advertisement, and has investigated and upheld several complaints regarding "unsubstantiated environmental claims". The ASA Director General has stated that "the ASA needs to see robust evidence to back up any eco-friendly claims". The ASA in Britain has also raised concerns that as awareness about climate change increase among consumers, the cases of unsubstantiated carbon claims (e.g. carbon emissions and carbon neutral claims) rises. The ASA has upheld a number of complaints against energy companies, including Scottish and Southern Energy car manufacturers, including Toyota, Lexus and Volkswagen, and airlines, including EasyJet, for misleading claims regarding carbon emissions and carbon neutrality. Recent cases before the British ASA involved environmental claims such as "local". In December 2006 for example the ASA upheld a complaint against Tesco, where the company advertised British products as "local", which the ASA ruled to be misleading because in this particular case the consumers were likely to interpret local as referring to their immediate surrounding region. In August 2008 the British ASA ruled that Shell had misled the public in an advertisement which claimed that a $10bn oil sands project in Alberta, northern Canada, was a "sustainable energy source". The ASA upheld a complaint by the World Wide Fund for Nature about Shell's advert in the Financial Times. Explaining the ruling the ASA stated that "We considered that the Department for Environment, Food and Rural Affairs (Defra) best practice guidance on environmental claims stated that green claims should not 'be vague or ambiguous, for instance by simply trying to give a good impression about general
23 concern for the environment. Claims should always avoid the vague use of terms such as 'sustainable', 'green', 'non-polluting' and so on." Furthermore the ASA ruling stated "Defra had made that recommendation because, although 'sustainable' was a widely used term, the lack of a universally agreed definition meant that it was likely to be ambiguous and unclear to consumers. Because we had not seen data that showed how Shell was effectively managing carbon emissions from its oil sands projects in order to limit climate change, we concluded that the ad was misleading" In the US the Federal Trade Commission issues the "Green Guides" (last updated 1998) - environmental marketing guidelines. The guidelines give advice on the types of substantiation needed to support environmental claims, and give examples of claims that are to be avoided. The Federal Trade Commission has recognised that these guidelines need updating, as for example they currently contain no guidance on carbon neutrality, or the terms sustainable or renewable. The Green Guides do contain guidance on the term recyclable, recycled and biodegradable. The marketing and brand building experiences of many American green brands was documented in the book The Gort Cloud by Richard Seireeni, 2009. The gort cloud refers to the green community that provides support and a market to green brands. Brand tribalism A brand tribe can be defined as a network of varied persons -who are linked by a shared belief around a brand; its members are not simple consumers, they are also believers and promoters. A brand tribe is capable of collective action and therefore has implications for post-modern business. Origins The concept of tribal consumption revolves around the research and writings of numerous academic researchers who have expressed Tribal Based Views of brand. Michel Maffesoli (1996), Cova (1997), Veloutsou and Moutinho (2007), Cova and Cova (2001, 2002), Kozinets, Shankar et al. (2007), DAlessandro describes the tribes we belong to as "determined even less by geography, pedigree, race or religion. Instead, our tribes are determined largely by education and accomplishment, and they are manifested by the things we consume. More and more, they are brand tribes." Much of the research on brand tribalism depicts 21st Century society as a network of micro-cultures or tribes. A key element of brand tribes is that they are organically and voluntarily formed through individual identification with a brand. Factors that contribute to the formation of a brand tribe are perceived brand authenticity, experiences felt through interaction with the brand and a collective sense of belonging within a group.Central to the fabric of brand tribes is a deep conviction as to the notion of truth or rightness (Belief)
24 Potential red flags Much in this area is still under-theorised. Academics have explored and discussed the degree of connectedness between consumers and brands and the implications for post-modern organisations and consumption. Kozinets and Handelman have been amongst those to call for further conceptualisations (Kozinets and Handelman, 2004). Branding agency A branding agency is a type of marketing agency which specialises in creating and launching brands as well as rebranding. Branding agencies create, plan and manage branding strategies, independent of their clients. Branding agencies may also handle advertising and other forms of promotion. As with advertising agencies, typical branding agency clients come from all sectors including businesses and corporations, non-profit organisations and government agencies. Branding agencies may be hired to produce a brand strategy or, more commonly, a brand identity, which can then be output via a branding campaign, which is a type of marketing campaign. Co-branding Co-branding refers to several different marketing arrangements: Co-branding, also called brand partnership, is when two companies form an alliance to work together, creating marketing synergy. As described in Co-Branding: The Science of Alliance: the term 'co-branding' is relatively new to the business vocabulary and is used to encompass a wide range of marketing activity involving the use of two (and sometimes more) brands. Thus co-branding could be considered to include sponsorships, where Marlboro lends it name to Ferrari or accountants Ernst and Young support the Monet exhibition. Co-branding is an arrangement that associates a single product or service with more than one brand name, or otherwise associates a product with someone other than the principal producer. The typical co-branding agreement involves two or more companies acting in cooperation to associate any of various logos, color schemes, or brand identifiers to a specific product that is contractually designated for this purpose. The object for this is to combine the strength of two brands, in order to increase the premium consumers are willing to pay, make the product or service more resistant to copying by private label manufacturers, or to combine the different perceived properties associated with these brands with a single product. Intent According to Chang, from the Journal of American Academy of Business, Cambridge, states there are three levels of co-branding: market share, brand extension, and global branding. Level 1 includes joining with another company to penetrate the market
25 Level 2 is working to extend the brand based on the company's current market share Level 3 tries to achieve a global strategy by combining the two brands Forms There are many different sub-sections of co-branding. Companies can work with other companies to combine resources and leverage individual core competencies, or they can use current resources within one company to promote multiple products at once. The forms of co-branding include: ingredient cobranding, same-company co-branding, joint venture co-branding, and multiple sponsor co-branding. No matter which form a company chooses to use, the purpose is to respond to the changing marketplace, build ones own core competencies, and work to increase product revenues. One form of co-branding is ingredient co-branding. This involves creating brand equity for materials, components or parts that are contained within other products. Examples: Betty Crockers brownie mix includes Hersheys chocolate syrup Pillsbury Brownies with Nestle Chocolate Dell Computers with Intel Processors Kellogg Pop-tarts with Smuckers fruit Another form of co-branding is same-company co-branding. This is when a company with more than one product promotes their own brands together simultaneously. Examples Kraft Lunchables and Oscar Mayer meats Joint venture co-branding is another form of co-branding defined as two or more companies going for a strategic alliance to present a product to the target audience. Example: British Airways and Citibank formed a partnership offering a credit card where the card owner will automatically become a member of the British Airways Executive club Finally, there is multiple sponsor co-branding. This form of co-branding involves two or more companies working together to form a strategic alliance in technology, promotions, sales, etc. Example: Citibank/American Airlines/Visa credit card partnership
26 Examples An early instance of co-branding occurred in 1956 when Renault had Jacques Arpels of jewelers Van Cleef and Arpels turn the dashboard of one of their newly introduced Dauphine's into a work of art. A successful example of co-branding is the Senseo coffeemaker, which associates the Philips made appliances with specific coffee brand of Douwe Egberts. Other examples include the marketing of Gillette M3 Power shaving equipment (which require batteries) with Duracell batteries (both brands owned by Procter & Gamble). Co-branding can be between an organization and a product also. An example of co-branding between a charity and a manufacturer is the association of Sephora and Operation Smile: Sephora markets a product carrying the logo of the charity, the consumer is encouraged to associate the two brands, and a portion of the proceeds benefit the charity. Content marketing Content marketing is an umbrella term encompassing all marketing formats that involve the creation or sharing of content for the purpose of engaging current and potential consumer bases. Content marketing subscribes to the notion that delivering high-quality, relevant and valuable information to prospects and customers drives profitable consumer action. Content marketing has benefits in terms of retaining reader attention and improving brand loyalty. The idea of sharing content as a means of persuading decision-making has driven content marketers to make their once-proprietary informational assets available to selected audiences. Alternatively, many content marketers choose to create new information and share it via any and all media. Content marketing products frequently take the form of custom magazines, print or online newsletters, digital content, websites or microsites, white papers, webcasts/webinars, podcasts, video portals or series, inperson roadshows, roundtables, interactive online, email, events. The purpose of this information is not to spout the virtues of the marketers own products or services, but to inform target customers and prospects about key industry issues, sometimes involving the marketers products. The motivation behind content marketing is the belief that educating the customer results in the brands recognition as a thought leader and industry expert. Marketers may use content marketing as a means of achieving a variety of business goals. These may include: thought leadership, lead generation, increasing direct sales, introducing specific brand language and improving customer retention. The term content engineer is being used to describe a new breed of marketer who creates, optimizes, and distributes the different types of content required to engage customers on the social web, based on the data of many analysis tools. Content marketing is the underlying philosophy driving techniques such as custom media, custom publishing, database marketing, brand marketing, branded entertainment and branded content.
27 Integrated Marketing Communications (IMC) Integrated Marketing Communications (IMC) is the coordination and integration of all marketing communication tools, avenues, functions and sources within a company into a seamless program that maximizes the impact on consumers and other end users at a minimal cost. What is IMC? Integrated marketing communications (IMC) is a process for managing customer relationships that drive brand value primarily through communication efforts. Such efforts often include cross-functional processes that create and nourish profitable relationships with customers and other stakeholders by strategically controlling or influencing all messages sent to these groups and encouraging data-driven, purposeful dialog with them. IMC includes the coordination and integration of all marketing communication tools, avenues, and sources within a company into a seamless program in order to maximize the impact on end users at a minimal cost. This integration affects all firm's business-tobusiness, marketing channel, customer-focused, and internally directed communications. IMC Components The Foundation - corporate image and brand management; buyer behavior; promotions opportunity analysis. Advertising Tools - advertising management, advertising design: theoretical frameworks and types of appeals; advertising design: message strategies and executional frameworks; advertising media selection. Advertising also reinforces brand and firm image. Promotional Tools - trade promotions; consumer promotions; personal selling, database marketing, and customer relations management; public relations and sponsorship programs. Integration Tools - Internet Marketing; IMC for small business and entrepreneurial ventures; evaluating and integrated marketing program. Marketing mix component The Internet has changed the way business is done in the current world. The variables of segmentation, targeting and positioning are addressed differently. The way new products and services are marketed have changed even though the aim of business in bringing economic and social values remain unchanged. Indeed, the bottom line of increasing revenue and profit are still the same. Marketing has evolved to more of connectedness, due to the new characteristics brought in by the Internet. Marketing was once seen as a one way, with firms broadcasting their offerings and value proposition. Now it is seen more and more as a conversation between marketers and customers. Marketing efforts incorporate the "marketing mix". Promotion is one element of marketing mix. Promotional activities include advertising (by using different media), sales promotion (sales and trades promotion), and personal selling activities. It also includes Internet marketing, sponsorship marketing, direct marketing,
28 database marketing and public relations. Integration of all these promotional tools, along with other components of marketing mix, is a way to gain an edge over a competitor. The starting point of the IMC process is the marketing mix that includes different types of marketing, advertising, and sales efforts. Without a complete IMC plan there is no integration or harmony between client and customers. The goal of an organization is to create and maintain communication throughout its own employees and throughout its customers. Integrated marketing is based on a master marketing plan. This plan should coordinate efforts in all components of the marketing mix. A marketing plan consists on the following steps: o o o Situation analysis Marketing objectives Marketing budget
Integrated marketing communications aims to ensure consistency of message and the complementary use of media. The concept includes online and offline marketing channels. Online marketing channels include any e-marketing campaigns or programs, from search engine optimization (SEO), pay-per-click, affiliate, email, banner to latest web related channels for webinar, blog, micro-blogging, RSS, podcast, Internet Radio, and Internet TV. Offline marketing channels are traditional print (newspaper, magazine), mail order, public relations, industry relations, billboard, traditional radio, and television. A company develops its integrated marketing communication program using all the elements of the marketing mix (product, price, place, and promotion). Integrated marketing communications plans are vital to achieving success. The reasons for their importance begin with the explosion of information technologies. Channel power has shifted from manufacturers to retailers to consumers. Using outside-in thinking, Integrated Marketing Communications is a data-driven approach that focuses on identifying consumer insights and developing a strategy with the right (online and offline combination) channels to forge a stronger brand-consumer relationship. This involves knowing the right touch points to use to reach consumers and understanding how and where they consume different types of media. Regression analysis and customer lifetime value are key data elements in this approach. Importance of IMC Several shifts in the advertising and media industry have caused IMC to develop into a primary strategy for marketers: o o o o From media advertising to multiple forms of communication. From mass media to more specialized (niche) media, which are centered on specific target audiences. From a manufacturer-dominated market to a retailer-dominated, consumer-controlled market. From general-focus advertising and marketing to data-based marketing.
29 o o o From low agency accountability to greater agency accountability, particularly in advertising. From traditional compensation to performance-based compensation (increased sales or benefits to the company). From limited Internet access to 24/7 Internet availability and access to goods and services.
4 P's vs. 4 C's Not PRODUCT, but CONSUMER You have to understand what consumer's wants and needs are. Times have changed and you can no longer sell whatever you can make. The product characteristics have to match the specifics of what someone wants to buy. And part of what the consumer is buying is the personal "buying experience." Not PRICE, but COST Understand the consumer's cost to satisfy the want or need. The product price may be only one part of the consumer's cost structure. Often it is the cost of time to drive somewhere, the cost of conscience of what you buy, the cost of guilt for not treating the kids, the investment a consumer is willing to make to avoid risk, etc. Not PLACE, but CONVENIENCE As above, turn the standard logic around. Think convenience of the buying experience and then relate that to a delivery mechanism. Consider all possible definitions of "convenience" as it relates to satisfying the consumer's wants and needs. Convenience may include aspects of the physical or virtual location, access ease, transaction service time, and hours of availability. Not PROMOTION, but COMMUNICATION Communicate,many mediums working together to present a unified message with a feedback mechanism to make the communication two-way. And be sure to include an understanding of nontraditional mediums, such as word of mouth and how it can influence your position in the consumer's mind. How many ways can a customer hear (or see) the same message through the course of the day, each message reinforcing the earlier images? Effective communications elements The goal of selecting the elements of proposed integrated marketing communications is to create a campaign that is effective and consistent across media platforms. Some marketers may want only ads with greatest breadth of appeal: the executions that, when combined, provide the greatest number of attention-getting, branded, and motivational moments.
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Others may only want ads with the greatest depth of appeal: the ads with the greatest number of attention-getting, branded, and motivational points within each. Although integrated marketing communications is more than just an advertising campaign, the bulk of marketing dollars is spent on the creation and distribution of advertisements. Hence, the bulk of the research budget is also spent on these elements of the campaign. Once the key marketing pieces have been tested, the researched elements can then be applied to other contact points: letterhead, packaging, logistics, customer service training, and more, to complete the IMC cycle. One common type of integrated marketing communication is personal selling. Personal selling can be defined as "face to face selling in which a seller attempts to persuade a buyer to make a purchase." Promotions Opportunity Analysis A major task that guides the way in creating an effective Integrated Marketing Communications plan is the promotions opportunity analysis. A promotions opportunity analysis is the process marketers use to identify target audiences for a companys goods and services and the communication strategies needed to reach these audiences. A message sent by a marketer has a greater likelihood of achieving the intended results if the marketer has performed a good analysis and possesses accurate information pertaining to the target audience. There are five steps in developing a promotions opportunity analysis: o o o o o o o o o o o o o o o o Conduct a communication market analysis Competitors Opportunities Target markets Customers Product positioning Establish communication objectives Develop brand awareness Increase category demand Change customer belief or attitude Enhance purchase actions Encourage repeat purchases Build customer traffic Enhance firm image Increase market share Increase sales
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Reinforce purchase decisions Create communications budget Several factors influence the relationship between expenditures on promotions and sales: The goal of the promotion Threshold effects Carryover effects Wear-out effects Decay effects Random events Prepare promotional strategies Match tactics with strategies Throughout these steps, marketers should consistently review and analyze the actions and tools that major competitors are utilizing.
Visual brand language Visual brand language is branding terminology for a unique "alphabet" of design elements such as shape, color, materials, finish, typography and composition which directly and subliminally communicate a company's values and personality through compelling imagery and design style. This "alphabet", properly designed, results in an emotional connection between the brand and the consumer. Visual brand language is a key ingredient necessary to make an authentic and convincing brand strategy that can be applied uniquely and creatively in all forms of brand communications to both employees and customers. Successful Visual Brand Language creates a memorable experience for the consumer, encouraging repeat business and boosting the company's economic health. It is a long-term creative solution that can be leveraged by an executive team to showcase their brand's unique personality. For example, as shown, a Starbucks constant, main design ingredient was black and white icons. The icons represent elements of the "alphabet". Each year, the promotional campaigns would use the same icons but the color palette and the featured icons would change. Another distinguishing iconic design element is the BMW 'split grill' continually employed to represent the brand. While the grill size and design details evolve over time, the underlying idea is constant and memorable. The use of color is also a powerful associative element for consistent imagery, as exemplified by the comprehensive application of orange by The Home Depot across all its brand materials.

Brand Management

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Brand Management www.viplavkambli.com

Brand Management www.viplavkambli.com

Brand Management www.viplavkambli.com

Brand Management www.viplavkambli.com

Brand Management www.viplavkambli.com

Brand Management www.viplavkambli.com

Brand Management www.viplavkambli.com

Brand Management www.viplavkambli.com

Brand Management www.viplavkambli.com

Brand Management www.viplavkambli.com

Brand Management www.viplavkambli.com

Brand Management www.viplavkambli.com

Brand Management www.viplavkambli.com

Brand Management www.viplavkambli.com

Brand Management www.viplavkambli.com

Brand Management www.viplavkambli.com

Brand Management www.viplavkambli.com

Brand Management www.viplavkambli.com

Brand Management www.viplavkambli.com

Brand Management www.viplavkambli.com

Brand Management www.viplavkambli.com

Brand Management www.viplavkambli.com

Brand Management www.viplavkambli.com

Brand Management www.viplavkambli.com

Brand Management www.viplavkambli.com

Brand Management www.viplavkambli.com

Brand Management www.viplavkambli.com

Brand Management www.viplavkambli.com

Brand Management www.viplavkambli.com

Brand Management www.viplavkambli.com

Brand Management www.viplavkambli.com

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