Unit II

BRAND STRATEGIES
 Strategic Brand Management
 It involves the design and implementation of
marketing programs and activities to build,
measure, and manage brand equity.
 The Strategic Brand Management Process is defined as
involving four main steps:
1. Identifying and establishing brand positioning and values
2. Planning and implementing brand marketing programs
3. Measuring and interpreting brand performance
4. Growing and sustaining brand equity
Strategic Brand Management Process

Steps Key Concepts

Mental maps
Identify and establish Points-of-parity and points-of-difference
brand positioning and values Core brand values
Brand mantra

Plan and implement Mixing and matching of brand elements

brand marketing programs Integrating brand marketing activities
Leveraging of secondary associations

Brand value chain

Measure and interpret Brand audits
brand performance Brand tracking
Brand equity measurement system

Brand-product matrix
Grow and sustain Brand portfolios and hierarchies
brand equity Brand expansion strategies
Brand reinforcement and revitalization
 Making a Brand Strong:
Brand Knowledge
 Brand knowledge is the key to creating brand
equity.
 Brand knowledge consists of a brand node in
memory with a variety of associations linked to
it.
 Brand knowledge has two components: brand
awareness and brand image.
 Sources of Brand Equity
 Brand awareness
 Brand recognition
 Brand recall

 Brand image
 Strong, favorable, and unique brand associations
 Establishing Brand Awareness
 Increasing the familiarity of the brand through
repeated exposure (for brand recognition)
 Forging strong associations with the appropriate
product category or other relevant purchase or
consumption cues (for brand recall)
Creating a Positive Brand Image
 Public Relations
 Social Media
 SEO
 The Four Steps of Brand Building
1. Ensure identification of the brand with customers and
an association of the brand in customers’ minds –
Brand Identity
2. Establish the totality of brand meaning in the minds of
consumers – Brand Meaning
3. Elicit the proper customer responses to the brand
identification and brand meaning – Brand Response
4. Convert brand response to create an intense, active
loyalty relationship between customers and the brand-
Brand Relationship
Four Questions Customers ask of Brands

1. Who are you? (brand identity)

2. What are you? (brand meaning)
3. What about you? What do I think or feel about
you? (brand responses)
4. What about you and me? What kind of
association and how much of a connection
would I like to have with you? (brand
relationships)
Customer-Based Brand Equity Pyramid

4. RELATIONSHIPS =
RESONANCE What about you and me?

3. RESPONSE =
JUDGMENTS FEELINGS
What about you?

2. MEANING =
PERFORMANCE IMAGERY What are you?

1. IDENTITY =
SALIENCE
Who are you?
 Salience Dimensions – Brand
Identity
 Depth of brand awareness
 Ease of recognition and recall
 Strength and clarity of category membership

 Breadth of brand awareness

 Purchase consideration
 Consumption consideration
 Performance Dimensions
 Primary characteristics and supplementary features
 Product reliability, durability, and serviceability
 Service effectiveness, efficiency, and empathy
 Style and design
 Price
 Imagery Dimensions
 User profiles
 Demographic and psychographic characteristics
 Actual or aspirational
 Group perceptions—popularity
 Purchase and usage situations
 Type of channel, specific stores, ease of purchase
 Time (day, week, month, year, etc.), location, and context of usage
 Personality and values
 Sincerity, excitement, competence, sophistication, and ruggedness
 History, heritage, and experiences
 Nostalgia
 Memories
 Judgment Dimensions
 Brand quality  Brand consideration
 Value  Relevance
 Satisfaction

 Brand credibility
 Brand superiority
 Expertise  Differentiation
 Trustworthiness
 Likeability
 Feelings Dimensions
 Warmth
 Fun
 Excitement
 Security
 Social Approval
 Self-respect
 Resonance Dimensions
 Behavioral loyalty
 Frequency and amount of repeat purchases
 Attitudinal attachment
 Love brand (favorite possessions; “a little pleasure”)
 Proud of brand
 Sense of community
 Kinship
 Affiliation
 Active engagement
 Seek information
 Join club
 Visit website, chat rooms
 Brand
Positioning
 Is at the heart of the marketing strategy

 “. . . the act of designing the company’s offer

and image so that it occupies a distinct and
valued place in the target customer’s minds.”
Philip Kotler
Determining a frame of reference
 What are the ideal points-of-parity and points-
of-difference brand associations vis-à-vis the
competition?
 Marketers need to know:
 Who the target consumer is
 Who the main competitors are

 How the brand is similar to these competitors

 How the brand is different from them

 Target Market
 A market is the set of all actual and potential
buyers who have sufficient interest in, income
for, and access to a product.
 Market segmentation divides the market into
distinct groups of homogeneous consumers
who have similar needs and consumer
behavior, and who thus require similar
marketing mixes.
 Market segmentation requires making
tradeoffs between costs and benefits.
Examples of Tooth Paste Product
 Four main segments
 The Sensory segment – Flavour and Taste
 The Sociable – White teeth

 The worriers – Stopping decay

 The independent segment – Seeking low price

 Criteria for Segmentation
 Identifiability: Can we easily identify the
segment?
 Size: Is there adequate sales potential in the
segment?
 Accessibility: Are specialized distribution
outlets and communication media available to
reach the segment?
 Responsiveness: How favorably will the
segment respond to a tailored marketing
program?
 Nature of Competition
 Deciding to target a certain type of consumer
often defines the nature of competition
 Do not define competition too narrowly
 Ex: a luxury good with a strong hedonic benefit
like stereo equipment may compete as much with
a vacation as with other durable goods like
furniture
 Points-of-Parity
and Points-of-Difference
 Points-of-difference (PODs) are attributes or
benefits that consumers strongly associate with a
brand, positively evaluate, and believe that they
could not find to the same extent with a
competitive brand.
 Points-of-parity associations (POPs), on the other
hand, are not necessarily unique to the brand but
may in fact be shared with other brands.
 Brand Positioning Guidelines
 Defining and communicating the competitive frame of reference

 Choosing and establishing points-of-parity and points-of-difference

 Desirability criteria

 Deliverability criteria

 Establishing POD & POP

 Separate the attribute

 Leverage Equity of another equity’

 Redefine the relationship

 Updating positioning over time