Lesson Three

Building the Brand

Marketing Defined (A.M.A.)

Old Definition The process of planning and executing the conception, pricing, promotion, and

distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives.

New Definition (2005) Marketing is an organizational function and a set of processes for creating,

communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

Short Marketing Definition….

The process of maximizing customer satisfaction for firms’ offerings (usually at a profit).

The Essence of Strategic Marketing

Aligning products and service offerings with one or more core competencies to create a competitive advantage with some target.

Creating loyalty with consumers through branding.

Maintaining competitive advantage through innovation

‘Branding’ Defined

The process of creating a “relative advantage” for your brand in the mind of the customer.

Brand and Brand Equity

Brand

A persuasive force which attracts or repels consumers to a firm’s offerings by augmenting or diminishing their perceived benefits

Brand Equity

The valence and strength of the brand force

Weak Brand Equity

- + Strong brand equity

Most Brands

The Impact of Brand Equity

Brand Equity

Before Purchase After Purchase

Breaks Ties Biases Evaluation

Brand Equity

Weak Brand Equity

- + Strong brand equity

Most Brands

Brand Equity

Weak Brand Equity

- + Strong brand equity

Most Brands

Measuring Brand Equity Method 1: Tapping Unobservable Elements

Excellent technique when consumers can evaluate the product with and without knowledge of the brand name.

Unobserved Evaluation of Brand – Evaluation of Brand

Brand Equity = (Brand Name Known) (Brand Name Not Known)

Total Brand No brand name

influence.

Brand Equity Example: Cola

Evaluation Evaluation Brand

Name Known Name not Known Equity

Coca-Cola 1.7 .1 1.6

Pepsi .1 -.3 .4

RC Cola -1.8 .2 -2.0

Measuring Brand Equity Method 2: Category Relative Brand Equity

Category Relative Evaluation of Brand – Evaluation of Category

Brand Equity = Wendy’s - Fast Food Hamburgers

Total Brand Total Category

Multiple Category Comparisons

Possible

Elements of Brand EquityBrand Identity:

The extent to which the brand is explicitly LINKED to a meaningful product category, consumption goal, need and/or want.

Brand Integrity: The extent to which the brand is perceived to meet the performance expectations of its

customers.

Brand Resonance: The extent to which the brand emotionally connects to the customer by embedding and

enhancing the lifestyle of its users

http://www.youtube.com/watch?v=-kYYwMLQ38E http://www.youtube.com/watch?v=ZyF5WsmXRaI http://www.youtube.com/watch?v=b0AGiq9j_Ak

Brand Identity is the foundation of the brand….It creates the context for all that follows

Identity

Integrity

Resonance

Identity (Philosophical)

What is it? The set of characteristics that makes something recognizable as a member of a group.

What isn’t it? Characteristics that sets it apart from others.

Identity Based Obstacles to Brand Equity

Category Membership: The inability to ‘understand’ the overall purpose of a brand because category membership is vague or confused

Brand Salience The inability for the brand to ‘come to mind’ prior

to other, potentially equally attractive, alternatives

Brand Position. The inability to ‘understand’ a brand’s unique benefits.

Identity Based Obstacles to Brand Equity

Category Membership?

Who are the Ford Fusion’s direct competitors?

Identity Based Obstacles to Brand Equity

Category Membership?

Red Bull, Monster, Amp. Rockstar, Full Throttle, Nos

Identity Based Obstacles to Brand Equity

Brand Salience: List fast food restaurants?

Identity Based Obstacles to Brand Equity

Brand Salience: How fast does Wendy’s come to mind?

Identity Based Obstacles to Brand Equity

‘Brand’ Uniqueness: What is different about United Airlines?

The Strength of Brand Identity

The brand is clearly linked to a category that

fits the benefits it delivers.

The brands unique benefits are understood.

The brand is tightly linked to this category.

Basic Brand Identity

Strong Brand Identity

The Difficulty of Building an Independent Brand Identity

Most people can tell you a lot of information about a product category, but…..

they can tell you very little about what’s different about each brand in the

category.

Athletic sneakers

Light beer

Laptop Computers

Brand Integrity (Philosophy)

Can the brand fulfill the promise of its identity?

Integrity is doing what you said you would do and how you said you would do it.

Integrity is refusal to engage in behavior that evades accountability.

Integrity is steadfast adherence to a moral or ethical code.

Brand Integrity

Category

Expectations

Brand Promises

Customer Respect

Basic Brand Integrity

Superior Brand

Integrity

Brand Integrity and Category Expectations

Performance

Customer service

Do you deliver the benefits that customers expect?

Do customers have confidence in your ability to deliver every time?

Do your innovations keep pace with competitors?

Integrity-Based ObstaclesCategory Integrity

How will this compete against Six Flags Magic Mountain on thrill rides?

Integrity Based Obstacles: Category Integrity

Category Integrity: Prior knowledge can harm Integrity

A lack of category integrity may be caused by identity incompatibility created by prior knowledge

Anheuser-Busch is not known as a high end beer) and/or actual poor performance (the beer is terrible.

Brand Integrity and Brand Promises

Is your brand position; is how you promise to be different, a slogan or a reality?

Is your brand position built around your core competency?

Do you stay one step ahead of competitors in delivering your position?

Integrity Based Obstacles: Brand Promises

Brand Integrity: Did the XFL Keep Its Better Brand of Football

Promise?

Integrity Based Obstacles: Brand Promises

Brand Integrity: Was it clean and pure?

Brand Integrity and Customer Respect

Is the company perceived to seek to satisfy or manipulate its customers?

Does the company make itself accountable to its mistakes?

Are the firm’s employee’s strong caretakers of the brand?

Integrity Based Obstacles:Customer Respect

Customer Respect: Do you believe the credit card company that

bombards you with sales offers is ‘better serving

you’ or manipulating you?

Integrity Based Obstacles:Customer Respect

Customer Respect: Four hours and counting…

Customer Respect: Beyond the Call of Duty

A bartender remembering your favorite beverage

An airline attendant going out of his/her way to entertain a child bored on a long flight

A hotel offering free homes to disaster victims

Resonance (Philosophy)

Embedded in one’s everyday life

Fit with one’s real values and lifestyles

Fit with one’s aspirational values and lifestyles

Causes of Brand Resonance

Resonance through shared embeddedness and life enhancement

Basic Brand Resonance

Strong Brand Resonance

Resonance through brand familiarity based fit with life

Brand Resonance through Brand Familiarity

Think of all the life experiences that have been associated to:

Coca-Cola

Tide

Oreos

McDonalds

Brand Resonance Through Shared Life Experiences

Identify with the brand because users share “tribal membership.

Hollister: Teenage Celebration

Brand Resonance Through Shared Life Experiences

Identify with the brand because users share “tribal membership.”

Under Armour: The Warrior

Brand Resonance Through Shared Life Experiences

Identify with the brand because users share “tribal membership,” etc. use the brand

Chevrolet: Rugged Individualism

The Brand Component Hierarchy

Brand Resonance

Brand Integrity

Brand Identity

Each Subsequent Brand Element Builds on the Previous Element

Failure at an Early Element Hinders Progress up the Hierarchy

Brand Equity and Relative Advantage

Perceptions Have Consequences

Marketing managers must strive to maximize each element of the brand:

Brand Identity

Brand Integrity

Brand Resonance

Brand DNA

Some marketing consultants attempt to summarize a brand vision with three or four words that should shape all three components of the brand

Starbucks: relax, intellectual, social

Nike: ‘performance, perseverance, winning’

San Diego State: ?????

Brand Image Brand Image is a top of mind reaction to a brand.

It can reflect elements of brand identity, brand integrity and brand Resonance.

It can help you diagnose which elements of the brand are driving brand equity

Brand Image

Identity

Integrity

Resonance

Brand Image

Brand Image What are the images of these companies?

What do the images reveal about each element of brand equity for each company?