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Strategic Brand Management

Dr.Soumya Padhi

What is a Brand?
Old Norse word brandr to burn. AMA Name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of the competition. Branding basis people, place, animal or bird, scientific term, and things or objects. Branding contain inherent product meaning, and attributes or benefits. Branding could be done for product (physical good, retail store, person, organization, place, or an idea. Brand = product + other differentiating dimensions (physiological and psychological)

Brand Definition
the reason consumers flock to some brands and ignore others is that behind the brand stands an unspoken promise of value. That is why brands are becoming even more important drivers of growth. That is also why Unilever wants Knorr, Skippy, Hellmanns, SlimFast and Ben & Jerry on its plate. Mukul Pandya, WSJ.

Key trends affecting brand management & marketing


Consumption, societal & cultural multifragmentation & globalisition Less loyal / more intelligent (?) buyer Self value-building consumption Search for emotions Multiplication of offers & chanels Interactive marketing technologies Markets saturation Multiplication of touchpoints/contacts Loss of credibility of traditional media contacts

From USP to HSP


USP = Unique Selling Proposition ESP = Emotional Selling Proposition OSP = Organizational Selling Proposition BSP = Brand Selling Proposition MSP= Me Selling Proposition HSP =Holistic Selling Proposition
(Martin Lindstrom)

A Brand builds its Own world


And that is a fantastic power ! In this brand (!) new world, What IS a Brand and What DOES a Brand do?

Think of Brands in your own life


1 - Think of how you became aware of them, why you bought them, why you prefer them, how you feel about them ... 2 - List them as they come to your mind 3 - Chose one brand you are very familiar with : . What does this Brand do for you? . What does it MEAN to you? . How do you relate to it ? 4 Main characteristics of a world without Brands ?

What is the best


Who makes the best . Automobile ? Do you own one ? Have you ever owned one ? Have you ever driven one ? Do you know anybody who owns one ? How do you know .. It is the best ?

Brand is an experience
A brand is essentially a container for a costumers complete experience with the offer and the company. (Sergio Zyman)

What is a Brand

User

Culture Personality

Attributes Benefits

Values

The Brand as an Open System.


Chanels, contacts
Organizations associations Relationships with customers Emotional benefits .Scope .Attributes .Uses .Quality/ Value .Functional Benefits

Corporation Economy

Competition
Skills Origin

Personality
Symbols User Imagery

(Core) Offer
(Tangible Products & Services)

Name User Imagery

Tribes Cultures Groups

Self-expressive benefits

This Brand System interacts

AS ...

1) .. A SOCIO-ECONOMIC AGENT 2) .. A CORPORATE ASSET

3) .. A STRATEGIC MARKETING TOOL 4) .. A COMMUNICATING & SELLING AGENT

THE BRAND AS A SOCIO-ECONOMIC AGENT

PART OF EACH INDIVIDUALS AND


SOCIETAL GROUPS SET OF REFERENCES

A POWERFUL SOCIAL DRIVER A GLOBAL CIMENT


A VALUE ADDING ECONOMIC AGENT

Brand Strategic Role


Brand Equity

Cash flow booster

Consumer Response Booster

THE BRAND AS A CORPORATE ASSET


A PROTECTED PROPERTY (owner's right to use) BOOK VALUE, GOODWILL. ASSET that can be sold and bought MARKETING NON TANGIBLE ASSET precisely measurable and valuable (when brand is on sale) : STRENGTH , LEADERSHIP & EQUITY, ie capacity to justify price.

Brand Asset Value

THE BRAND AS A KEY STRATEGIC MARKETING TOOL


- BRAND LIFE CYCLE vs. PRODUCT LIFE CYCLE

Adaptable to changing environments and technologies

* SUPPORT OF LONG-TERM TIES WITH PEOPLE * ALLOWS LOWER COST for NEW ENTRIES * UNIQUE SPOKESMAN TO ALL PUBLICS

* JUSTIFIES HIGHER PRICE & MARGINS

Product Levels?
Core benefits fundamental need or want. Generic product basic offering. Expected product normal expectation from a product in the market. Augmented product differentiating and distinguishing attributes, benefits, or related service. Potential product ideal and in future.

Branding - benefits?
Consumers Identification of source Assignment of responsibility Risk reducer functional, physical, financial, social, psychological, and time Search cost reducer Promise, bond, or pact Symbolic, cultural Signal of quality Manufacturers Means of identification for handling or tracing Legal protection Signal of quality to consumers

Endowing product with unique association Competitive advantage Source of financial return

Branding is Universal (anything can be branded)


Commodity Chicken, Coffee, salt, fruits, vegetables, water, etc. Physical good - Consumer products; Business to Business; High-tech products.

Services KPMG, Citi, Airlines, Energy firms, etc.


Retailers and distributors Sears, Wal-Mart, private or store brands. On-line product and services google, e-bay, etc.

People and Organizations Paul Newman.


Sports, Arts, and Entertainment Cowboys?
Geographic Locations Australia, Alaska. Ideas and Causes Red Cross, NRA.

Determinants of Brand Longevity Vision of the mass market? Managerial persistence? Financial commitment?

Relentless Innovation?
Asset leveraging.

Some Challenges Savvy consumers, maturing market, decreasing brand loyalty. Brand proliferation, complex brand families, . Media fragmentation, eroding traditional media, new options, changes in advertising and promotional expenditures.

Increased competition, difficulty differentiating, private


labels. Increased cost, increasing trade power. Increased accountability, job turn-over.

Next?

Brand Equity financial value, intangible value, loyalty,


consumer perception, consistent behavior???

Why Brand Equity?


Positive brand equity leads to:
Loyalty Larger Margins Greater Trade Support More Efficient Communications / Marketing Resiliency to Crises Licensing Opportunities Brand Extension Opportunities Reduced Vulnerability to Competition Greater financial returns

The Value of Brand Equity

Brand Equity
Sources of Brand Knowledge
Associative node model of memory Brand awareness Brand image
Strength of brand associations Favorability of brand associations Uniqueness of brand associations

Corporate Awareness

Brand Associations
Stolichnaya
Experienced Self-assured Successful Male Lexus Not-trendy

Absolut
Young Contemporary Flashy Male Bars Advertising or arts

Evolution of Brand Elements, GE


1876-1960s electronics 1900 trademarks logo 1900 slogan Better Living Electronically 1960s General Electric -> GE 1970s slogan Progress for People 1979 slogan We Bring Good Things to Life

Brand Equity
But how does one develop brand equity? The goal of this course is to learn how to manage brands (via marketing programs) in order to create brand equity - that is, create an enduring advantage for your brands.
Strategic Brand Management Process:
1. Identifying and Establishing brand position and values. 2. Planning and Implementing brand marketing programs.

3. Measuring and interpreting brand performance.


4. Growing and sustaining brand equity.

Building Customer-Based Brand Equity


TOOLS AND OBJECTIVES Choosing Brand Elements (4) Brand name Logo Symbol Character Packaging Slogan KNOWLEDGE EFFECTS BENEFITS

Possible Outcome
Brand Awareness (2)
Depth Recall Recognition Purchase Consumption

Memorability Meaningfulness Transferability Adaptability Protectability

Greater loyalty Less vulnerability to competitive marketing actions and crises Larger margins More elastic response to price increases

Breadth

Developing Marketing Programs (5 & 6) Product Price Distribution channels Communications Functional & symbolic benefits Value perceptions Integrate Push & Pull Mix and match options

Brand Associations (2&3) Strong Relevance Consistency

More inelastic response to price increases Increased marketing communication efficiency and effectiveness Possible licensing opportunities More favorable brand extension evaluations

Leverage of Secondary Associations (7)


Company Country of origin Channel of distribution Other brands Endorsor Event

Favorable

Desirable Deliverable
Point of parity Point of difference

Awareness Meaningfulness Transferability

Unique

Building Equity
1. Determine brand knowledge structures
a. Breadth of awareness (brand salience) b. Positioning (points of parity/difference) c. Image (strong & favorable brand associations)

2. Develop marketing programs 3. Integrate across product lines and geographies 4. Measure and control
a. Feelings/judgments/loyalty

Brand Value: Brand Hierarchy Pyramid


The emotional beliefs and values that consumers feel are being addressed by our brand (CENTRAL) Very meaningful in differentiating our Brand but very difficult to deliver consistently to our consumers

The functional and emotional benefits that our product/services provides to the consumer (EXPRESSIVE)

Beliefs & Core Values

Benefits

Product/Service features and/or attributes that must be addressed (FUNCTIONAL)

Features & Attributes

Easy to deliver and explain to consumers but also easy to imitate

Brand Management
Brand management is the act of designing and implementing marketing programs to build and maintain brand equity.
Product Price Distribution Communications

The Role of a Brand or Product Manager


Prepare Marketing Plan
Develop Copy, Programs, and Campaigns Stimulate Sales and Distribution Market Intelligence Product Improvements

The Role of a Brand or Product Manager


Pluses
- Cost effective mix, quick market reaction,

attention for small brands, good training for executives

Minuses
- Conflict and frustration (responsibility and no

authority), administrative work with executive expectations, learns products not functions, short horizon, costs of associates and assistants

A Product Manager Computer Software Firm


Typical day
Meetings - new product line, marketing mix, marketing staff, organizational design and integration E-mail/Phone - 3rd party developers, sales force, product support

Marketing planning - drafting the marketing plan

A Product Manager Computer Software Firm


Marketing mix - recommends price to corporate committee, manages advertising, conducts focus groups for product positioning and development, decides on channels

A Product Manager Consumer Packaged Goods Firm

Typical day
75% fighting fires, 25% planning

Marketing planning - key is volume forecasting since unsold inventory is perishable Mix - 1/3 on pricing issues (list & trade), 20% on consumer promotions, president handles ads, 15% on distribution, little on sales and service

A Product Manager Packaged Goods Firm


Marketing mix - recommends price to corporate committee, manages advertising, conducts focus groups for product positioning and development, decides on channels.

Brand Management Issues


Purchasing Promotion Services R&D Manufacturing Legal
Market Research Advertising Agency

Media
Packaging Salesforce

Product Manager

Distribution Fiscal Publicity

The Nature of the Job

Project

Staring Point: Brand perception about: Brand features and attributes - awareness? Brand benefits needs & expectations? Brand values - associations?

PRODUCT LEVEL
LEVEL
BRAND Name/Positioning Potential Product Augmented Product Expected Product Generic Product Core Benefit
Paswan

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