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1
FUNDAMENTALS
OF BRAND
Presented by :
RAHIM JABBAR
JAKARTAAugust, 2005
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A Review of the Marketing ConceptsBasic Concepts of the Brand:
What is a Brand?Brief History of BrandsA Brand versus a Commodity
Benefits of Brands
The Components of A BrandProduct/Service as the BasisName as the Identifier and RelaterPackaging as the Presenter
Messages as the NarratorPrice as the Proxy of Value
A Brand will surely have a certain position
POINTS OF DISCUSSION
Session -1 & 2 (09:15 to 10:30): 75 minutes
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Positioning for a Brand:The Concept of PositioningFactors to be ConsideredThe Anchor of Brand CreationThe Promise, Attributes, Benefits and ValuesConsumer and Competitor Analysis to Explore Values
Brand Development for Target SegmentBrand Positioning Statement
Managing the BrandManaging Brand EquityReaching the End Consumers
Communications & AdvertisingComponents of A Winning OfferManaging the Process of Consumer-Brand LinkageOperational Aspects of Brand Equity
Key Points
POINTS OF DISCUSSION (2)
Session -3 & 4 (10:50 to 12:20): 90 minutes
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Participants & Learning Objectives
As a result of this overview, participants are
expected to be able to:
Explain: What a definition of a brand is What the components of a brand are The concept of positioning for a brand
Apply insights from knowledge on brand todevelop a competitive positioning for a brand
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A REVIEW OF
THE MARKETING CONCEPTS
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WHAT IS THE BUSINESS ?
TheOwners of
Capital/
Resources
The
Firms
INPUTS
Men
MoneyMaterials
Machine
Moments
(Time)
INVEST
THROUGHPUTS TARGETMARKET
The BusinessProcesses
THERETURNS
OUTPUTS
ProductsGoods
Services
The
Transaction/
Exchanges
RETURN
On
INVEST-
MENT
Copyright Rahim Jabbar /2002
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WHAT IS THE ESSENCE/NATURE OFTHE TRANSACTION PROCESS?
THEFIRM
CONSUMERS/
CUSTOMERSPRODUCTS/SERVICES
THAT PROVIDES VALUES TO THE
THE
OFFERING
S
SATISFACTION
THEMONEY
TRANSACTION
INCOME/
EARNING
THE EXCHANGE
PROCESS
Copyright Rahim Jabbar/1999
Marketing is taskedto manage the economictransactions with thecustomers/consumers
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MAIN POINTS OF THE MARKETING CONCEPTS (1)
1. Marketing is a major element of the core business processesof creating value added through inducing and stimulatingtransactions/exchanges
2. Business transaction can only be realized through offering
product/service (=the offer) as a means of exchangingvalues between the consumers/customers/clients and thefirms/companies.
3. Consumers/customers/clients will consider any offer (be itproduct or service) as bringing values to them if the offerhelps them achieve their goals , satisfy their wants and fulfilltheir needs
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MAIN POINTS OF THE MARKETING CONCEPTS (2)
4. Values, therefore can be seen as special meanings attached to aparticular consumption occasion of using or consuming aproduct or the event of receiving a particular service.(This is a pragmatic/utilitarian use of the word value)
5. At this point, marketers have two options: go with the product as a commoditywrap the values offered by the product through branding
6. Brandingis a strategic option for marketing a product orservice. Branding is a means of wrapping the valuessurrounding the product or service.
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MAIN POINTS OF THE MARKETING CONCEPTS (3)
7. The task of marketing function is to find and create consumers/customers/clients by transforming individual persons or groupsof people from being lay people in the streets into obtainingsome added values at consuming the offers/using the product or
becoming recipients of the services (
to become consumers/customers/clients).
8. After this transformation, the task is to manage the relationship(Customer/Consumer Relationship Management).
9. Managerially, the marketing process consists of development,creation, and activation of the marketing mix for the offer(product or service) destined for a specific target in mind.
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10. These days rarely do we find a single product for a singlemarket (a single product-market category). The overwhelmingmajority of categories comprise of multi-products targeted at a
variety of different groups of consumers/customers/clients.(Each group is conveniently called a segment of the market).
11. Due to the above reasons, the development of any offer (be itproduct or service) should go through the process of S.T.P.(Segmentation, Targeting and Positioning)
MAIN POINTS OF THE MARKETING CONCEPTS (4)
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12. Segmentation is the way you partition the market based oncertain approach. Segmenting the market would facilitate inchoosing the specific part of the market you want to target.
13. Targeting is the process matching your product/offer tospecific part of the market.
14. Positioning is the way you differentiate your product/offer
from same product category targeted to the same segment.
MAIN POINTS OF THE MARKETING CONCEPTS (5)
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BASIC CONCEPTSOF THE BRAND
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BRIEF HISTORY OF MARKS/TRADE MARKS / BRAND (1)
As far back as 4,000 years ago, there are ampleevidences that craftsmen from China, India andPersia used either their signature or symbols toidentify their products.
Roman pottery-makers used more than 100 differentmarks to distinguish their work, the famous beingthe Fortis (which means strong) mark.
Those craftsmen are believed to have used marks for:An advertisementA guarantee of quality
Source: WIPO Publication; Intellectual Property, A Power Tool for Economic Growth, (2000)
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BRIEF HISTORY OF MARKS/TRADE MARK/BRANDS (2)
In the Middle Ages, the use of marks becameassociated with skilled trades. Marks were used toshow that a product was made by a member of aguild known to have experience in the trade. (InFrench marque deposee = the mark was registered
with a trade guild).
In modern times, trademarks have become identifiersof products business assets.
As branding has become a pivotal marketing concept,today, trademark has become almost synonymouswith brand.
Source: WIPO Publication; Intellectual Property, A Power Tool for Economic Growth, (2000)
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WHAT IS A BRAND?
A name, term, sign, symbol or design or a
combination of these, that is intended to identifythe goods and services of one business or group ofbusinesses and to differentiate them from those ofcompetitors
Brand : a mixture of tangible and intangibleattributes symbolized in a trademark, which, ifproperly managed, creates influence andgenerates value (Interbrand, a leading brand consultancy)
A brand is a relationship that secures futureearnings by securing customer loyalty
(Interbrand, a leading brand consultancy)
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A BRAND VERSUS A COMMODITY
A brand starts with a name used to identify and differentiate anobject c. q. product/ commodity or service and ends up with
expected inflows of income, generated by values imparted.
Commodity Brand
Undifferentiated products Based on point of difference
High levels of substitutability almost zero switching costs
Can build up consumer loyalty higher switching costs
Competing on price basis Is able to command a premiumover average/normal price
Generally lower margin May gain higher profitability
Profits come from volume Profits are determined byeffective branding and efficient
marketing activities
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BENEFITS OF BRANDS (1)
Economic benefits for the consumers
Brands facilitate consumer decision making and choiceProvides informationReduces search costsReduces risks (psychological and financial)Simplifies decision making
Brands transform consumption experienceProvide predictable quality
Provides comfort of reassuranceProvides a badge with social impact
Sources : Excerpted from various
sources and business experiences
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BENEFITS OF BRANDS (2)
For the enterprises: Strategic business benefits:
An established brand benefits the business, because it canIncrease sales volumeCement consumer loyaltyAssist in response to competitors pressureIncrease revenues and profitability
Expand and maintain market shareHelp introduce new productsGain royalties through licensing programProvide foundation for franchisesSupport strategic partnership and marketing allianceJustify corporate valuation in financial transactions
Raise awareness of charitable causesSignal compliance with safety requirementsShow fulfillment of technical specificationsShow inter-operability of technical system
Source: WIPO Publication; Intellectual Property, A Power Tool for Economic Growth, (2000)
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OBJECT
NAME
MEANINGS &
ASSOCIATIONS
VALUE - ADDED
GENERATED BY BRAND
The value of
re - assurance
TRANSFORMATION EXPERIENCE
Subject experience of using a brand :promotive/de-motive effects -
of brand on physical product characteristics
Differentiation/ Brand Personality
A relevant emotional metaphor linked with social dimensions Outer Directed
Inner Directed
Badge of Origin
Authenticity
Promise of Performance
Replicability
ADDED VALUES GENERATED BY BRAND
Sources : Excerpted
from various sourcesand business experiences
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COMPONENTS OFA BRAND
THE BRANDS :
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THE BRANDS :COMPONENTS OF A BRAND
THE
BASIS
The Product/
Service
THE
IDENTIFIER/RELATOR
Brand Name/
Logo
THE
NARRATOR
The Message/
Communication/Advert.
THEPRESENTER
The
Packaging
Should be
matching to each
other
THE
PROXY OF
VALUE
The
Price
Should be
matching
Copyright Rahim Jabbar/1999
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THE BRANDS:PRODUCT/SERVICE AS THE BASIS
HABITS AND
USAGE DATA/INFO
USERS THE PRODUCTBenefits Attributes
Choice
Criteri
a
Overall
Performance
Measure
Dimensions of Product Performance
Specific
Positives/Negatives
Physical
attributes
Effect
attributes
Process
attributes Benefitattributes
Uses/
Usages
Copyright
Rahim Jabbar/1999
VALUES
Page 7
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THE BRANDS :NAME AS THE IDENTIFIER AND RELATOR
Meanings
Associations
Sound/
rhyming
Shape
of
Fonts Symbols
Socio-
cultural
context
The
BRAND
NAME
Commonality
of association -> CORE
AB
C
Page 7
Impacting
Affective
&
Cognitive
aspects of
human Impacting
consumerperceptionCopyright
Rahim Jabbar/1999
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THE BRANDS :PACKAGING AS THE PRESENTER
Colour
Associations
Shape
Logo/
Icon Symbols
Socio-
cultural
context
The
PACKAGINGMaterials
Attributes
Impacting
Human
Mood
Impacting
cognitive &
affective
aspects of
human
beings
Impacting
consumer
perceptio
n
Copyright Rahim Jabbar/1999
THE BRANDS :
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THE BRANDS :MESSAGES, COMMUNICATION & ADVERTISING
AS THE NARRATOR
What to say and How to say it to Whom with What Expected Effects
WHO WHATWHAT
EFFECTSSAYSIN
WHAT
CHANNELTO WHOM WITH
MARKETERS/
COMPANY
PRODUCING
THE PRODUCT/
PROVIDING
THE SERVICE
MESSAGE
S
ABOUT
THE
BRAND
ABOVE
THE
LINE
BELOW
THE
LINE
THE
TARGET
MARKET
OTHER-
WISE
PREFERENCE
Source: Adapted from Harold Laswell (1948)
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THE BRANDS :PRICE = VALUE PROXYPRICING OPTIONS BASED ON VALUE PERCEPTION
Source: The Strategy Clock: Bowmans Strategy Options
PerceivedAddedValue
P r i c e
High
High
Low
Low
6
7
8
1Low priceLow added value
2Lowprice
3Hybrid
4Differentiation
5 FocusedDifferentiation
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A BRAND WILL SURELYHAVE A CERTAIN POSITION
Currently, market for each product category is inundated withoverwhelming number of similar offerings. Differentiation interms of product functionality is so minimal in such a way thatthe consumers are faced with a sea of indiscernible offerings. As
such, the poor consumers are faced with almost insurmountablechoices.
Within such a market context, a brand is meant to name aproduct for the purpose of identification and differentiation.Therefore, it is vitally critical for a brand to be well-positionedin the consumer minds . This mind position will be eventuallyreflected in the market position in terms of unique identityand competitive differentiation.
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THE POSITIONING
FOR A BRAND
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Positioning : The Concept
Positioning is what you do to the mind of the prospects.That is how you position your product/brand in the mind of the prospect.
Therefore, to be effective,
Positioning has to be done with the target (consumers/market) in mind
The marketer should understand :What explains their behaviour (what motivates them; what benefits
are sought).
The degree to which his/her product/brand satisfy the targets needs
(Brand Health Indicator/Brand Equity Monitor)
The degree to which the competitors products/brands satisfy
the targets needs (Customer Satisfaction Monitor, CompetitiveBrand Mapping, etc.)
Source: Adapted from Al Ries & Jack Trout, Positioning, the Battle for Your Mind (1989)
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Positioning is to find a position of your offer ( in the mind of theprospect) that is THE BEST for it and THE MOST APPROPRIATEFOR THE TARGET MARKET
Factors to be considered, therefore, should be :
the product/service itself (What makes it so unique? What canmake it distinctive ?). The followings can be explored :
a. Technical innovation (GSM, G-4 )b. Improved Performance (Corolla Altis)
c. Perceived Superiority (Intel Computer Microchip)d. New benefits (Sony Walkman, G-4 Phone)
Source: Adapted from Al Ries & Jack Trout, Positioning, the Battle for Your Mind (1989)
Positioning :Factors to be Considered
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Positioning :Factors to be Considered (2)
Positioning is to find a position of your offer ( in the mind of theprospect) that is THE BEST for it and THE MOST APPROPRIATEFOR THE TARGET MARKET
Factors to be considered, therefore, should be :
the Company that makes it (What makes the Company so special?).Examples :Baygon --> Bayer guarantees Quality)
Consumer Preference : Citibank, the House of Money.The Competitive Environment. The followings can be explored :
a. Market segmentation (AMEX Card)
b. Re-classifying competitors (BMW vs. Mercedes)c. Price/Value (Promag vs. Mylanta)
Source: Adapted from Al Ries & Jack Trout, Positioning, the Battle for Your Mind (1989)
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Brand Positioning:The Anchor of Brand Creation
Brand positioning is the anchor of brand creation
Creation of a brand is based onthe concept of what it will stand forthe clues to its existencethe promise (that can be supported and reinforced)
Authenticity should become the foundation of a brand(It is the justification that the brand can deliver its promise)
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Brand Positioning:The Promise, Attributes, Benefits and Values
The mix of attributes that carry benefits (which constitutevalues to the target consumers) should be able to create astrong impact at the first point of contact.
The brands promise and its supporting benefits deliveredthrough the mix of attributes should be captured in attention-catching messages. Tag-line is a short phrase to help
communicate and support the brands positioning.
POSITIONING
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POSITIONING :
The Process of Developing Competitive Positioning
SEGMENTATION TARGETING POSITIONING
DEFINE MARKETPOTENTIALDefine the marketDefine the potential
(est. no. consumers &their consumption/
usage and their totalspending)DEVELOP CRITERIAFOR SEGMENTATIONBehavior basedNeeds basedProduct relatedMAP AVAILABLESEGMENTS
Quantify the sizes(volume & value)
Products/Brandsused by segment
ANALYZE EACHSEGMENT BYATTRACTIVENESSize (Volume/Value)GrowthFIND GAPS
IN THE SEGMENTNeeds vs. currentproducts
Under-servedsegment
MATCH GAPSWITH YOURPRODUCTDifferentiation
opportunitiesDEVELOP MOSTAPPROPRIATESTRATEGY:Differentiate massmarket
Niche marketGrowth market
PERCEPTUALPOSITIONINGIdentify relevant setof competitiveproducts
Identify the set of
determinantattributes /benefits
Research targetcustomers evaluationon relevant attributes/benefits about allproducts
Map productpositions (locations)
DETERMINECUSTOMERSSPREFERENCEMix /combinationof attributes/benefits
SELECT THE MOSTCOMPETITIVEPOSITIONING
POSITIONING
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POSITIONING :
Analysis of Target Consumers and Competitors to Explore Competitive Values
Source: Adapted from Kenichi Ohmae , The Mind of the Strategist (1982)
CONSUMERS:Need structure
Values & benefitsDemand dynamics
(Envisaged)COMPANYS BRAND :Key differentiated mix of
values that are competitiveSalient attributes required
(Current)COMPETITORS BRANDS :Key differentiated value
dimensionsSalient attributes
COST COMPARISON
DIFFERENTIATECOMPETITIVELY!!!
Comparative Advantages(based on efficiency standard)
Competitive Advantages(based on effectiveness standard)
Specific target segmentsVALUES: :
SPECIAL MEANINGS
ATTACHED TO SPECIFIC
CONSUMPTION OCCASIONS/
EVENTS. (PRAGMATIC &
SUBJECTIVE APPLICATION
OF VALUES)
ConsumerInsights
P iti i
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Positioning:An Example of Brand Position Map
ClassPrideDistinctive look
PracticalFuel EconomyAffordable
SportyFunYoung
ConservativeSomewhatolder
MercedesB.M.W.
Toyota.
Honda.Mitsubishi
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Positioning
All about identifying the optimal place of abrand, considering its competitors, in theconsumers mind
Maximizing company potential benefit
The compass that guides marketing strategy
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Positioning
THE POSITIONING STATEMENT SHOULD DRAWON THE STRONGEST ASPECTS OF BENEFITSOFFERED BY THE BRAND
Clarifies what brand is all about
Uniqueness/Point of Difference
Why consumers should BUY & USE (Addressestheir needs better than competition)
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Positioning
WHO are you going to give this positioning to?
WHO are you going to market your product to?
WHAT do they want and need
What CONSUMER INSIGHT is your positioning
based on?
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Positioning
State the thought you wish to implant inyour targets mind:
TO (core target audience), (Brand Name),
IS THE (frame of reference)THAT (owned benefit)
BECAUSE (support or reason to
believe)
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Positioning
An Example:
TO oral health concerned adults,XYZ IS THE only brand oftherapeutic toothpaste THATkills germs that cause bad breath,
plaque and gingivitis.
THE POSITIONING:
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THE POSITIONING:POSITIONING, BRAND DEVELOPMENT
AND TARGET SEGMENT
THE
BASIS
The Product/
Service
THE
IDENTIFIER/
RELATOR
Brand Name/
Logo
THE
NARRATOR
The Message/
Communication/
Advert.
THE
PRESENTER
The
Packaging
THE
PROXY OF
VALUE
The
Price
Copyright Rahim Jabbar/2002
Selected
POSITIONwithin
TARGET
SEGMENT
THE
SELECTED
POSITIONING
Correct forthe product
Direct the developmentof the offer
Correct for
the target
segment
BRANDCONCEPT
Brand Positioning Statement(1):
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Brand Positioning Statement(1):Basic Questions to Develop the Message Content
and Communication Strategy
1. Brand Vision :
What is the ultimate goal you have in mind for your brand?It is a dream supported by belief (that it can and will beachieved sometime in the future) and commitment (namelya pledge to achieve and realize).
Further questions revolve around: Who to serve? Where?How? What to expect? How to approach it in general terms.Vision will serve as an enabler to realize a quantum leap
(a dramatic improvement, without risking too much), whenit is further supported by persistence (i.e. refuse to surrender)and enthusiasm (i.e. strong interest consistently maintained)
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Brand Positioning Statement (2):Basic Questions to Develop the Message Content
and Communication Strategy
2. Brand Mission
It is a statement of conception on where the company/brand to be throughout time. Questions to ask: What rolewill it play in the market? (How many roles are there?What are they ?)
What role will it play in the Companys portfolio?. (Howmany roles are there? What are they ?)
Brand Positioning Statement (3):
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g ( )Basic Questions to Develop the Message Content
and Communication Strategy
3. Basic Positioning
How you want it to be seen comparatively among the offersclaiming the same/similar benefits? (targeted to the samesegment)
Acid tests are :* Is it clear ? (unmistakable v.s. the others?)* Is it correct ? (for the brand ? for the market? for the target
group?)
* Is it competitive ? (better than the others ? able tochallenge market leaders/major players in the category/segment/sub-segment ?)
Brand Positioning (4):
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g ( )Basic Questions to Develop the Message Content
and Communication Strategy
4. Consumer end benefitsWhat will it do for me ? (Functionally ? Emotionally ?Socially ? etc.)
5. Reasons why
What make/will make the consumers believe that it will givethe end benefits stated ?
6. ProofsWhy should your brand delivers its promise ?
7. Support benefitsWhat other benefits I get? (The consumer questions)
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MANAGINGTHE BRAND
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MANAGING THE BRAND
PRODUCT/
SERVICE
The Basis/
Foundation
NAME/
LOGO
The Identifier
& Relator
CORE
MESSAGES
The Narrator
PACKAGING
The Presenter
PRICE
Proxy of
Value
TARGETMARKET
Copyright: Rahim Jabbar, 2004
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MANAGING THE BRAND
Copyright: Rahim Jabbar, 2004
BRAND MANAGEMENT:
Managing brand covers developing, rejuvenating,extending, marketing the brand (that includesdistributing and advertising to the target market).
Managing a brand also means managing the process ofconsumer-brand linkage form being unaware to becomeloyal users (maximizing switchers-in and minimizingout-switchers
The objective of brand management is to develop, create
and strengthen equity of the brand. (Brand equity is theability of a brand to gain market share, through firsthaving a a reasonable share of heart and share of mind).
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MANAGING THE BRAND
REACHING THE END-CUSTOMERS
MANUFACTURER/SUPPLIER
DIRECT INDIRECT
DIRECT
SALES
TELE-
MARKETING
FACE-TO
FACE
DIRECT
MARKETING
SPECIALIZED
RETAIL
STORE
WHOLLY
OWNED
FRAN-
CHISE RETAILERS RETAILERS RETAILERS
WHOLESALER
DISTRIBUTORS
WHOLESALER
THE
INTERNET
E N D C U S T O M E R S
Source: Capon & Gilbert :Marketing Management for the 21st Century
MANAGING THE BRAND:
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* Hard-Sell : How does brand communication persuade people to buy ?
MessagesTransmission/
Transportation
Persuasion &
play - backTransformed
BehaviourBuying
* Soft-Sell : How does communication add values through symbols that carry specific meanings ?
Messages Myths/
Rituals
Modified
shared
culture
Attitudinal
change
Behavioural
changeBuying
Symbols
Meanings
Values
MANAGING THE BRAND:
BRAND COMMUNICATIONSoft-Sell vs Hard-Sell
MANAGING THE BRAND:COMMUNICATION & ADVERTISING
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COMMUNICATION & ADVERTISING
The Essence of Marketing Communication Process
WHO WHATWHAT
EFFECTSSAYSIN
WHAT
CHANNELTO WHOM WITH
MARKETERS
EXPOSES
THE
OFFER
PROMOTE
ADVERTISE
DISPLAY
ABOVE
THE
LINE
BELOW
THE
LINE
THE
TARGET
OTHER-
WISE
PREFERENCE
Copyright Rahim Jabbar/1999
MANAGING THE BRANDS:
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1.To create awareness of the product/brand
2.To create desire for the product/brand (Stress customer benefits &their values)
3.To influence customer attitudes to the product (e.g.caring,etc)
4.To create brand loyalty
5.To persuade customers to buy
6.To persuade the customers to visit the outlets, compared to others
7.To remind customers to buy
8.To inform the market about the product/brand
9.To provide re-assurance about the product/brand
10.To be always ethical
Source: Adapted from Brauns Mission Statement as quoted by Bruce & Jevnaker, Management of DesignAlliances,
Sustaining Competitive Advantage, Wiley, 1998 . (The two statements within brackets are the writers addition)
The Objectives of Advertising, Promotion and Merchandising (APM)
MANAGING THE BRANDS:
M i th P f C B d Li k
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Managing the Process of Consumer-Brand Linkage
Non-Usersof productor service
Users ofcompetitive
brand
Aware ofyour brand
Advertising
Interested
Rejectingthe
Brand
Trial
purchasers
Sporadic
purchasers
Stop aftertrial
Stop
Regular
users
Stop
TOPBRAND
STOPAFTER A PERIOD
OF LOYALTY
Habit formation:development of
preference
Reinforcementof preference
Inclusionin the
evoked set
Source; Adapted after Giep & Franzen
Loyalty
SWITCHERS AWAY
SWITCHERS IN
MANAGING THE BRAND:COMPONENTS OF A WINNING OFFER
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Winning
OFFER(BRAND/
PRODUCT)
Compet
itive
PREFE-
RENC
E
Compet
itivePREV
A-
LENCE
Compet
itive
PRICE/VALU
E
RATIOPRICE
Product
PERFORM
-ANCE
COMMUN
ICATION
APPEAL
COMPONENTS OF A WINNING OFFER
Perceived
PERFOR
MANCE
Actual
PERFORMANCE
Psycho-
logical
needs
Socialneeds
Cultura
l
needs
VISI-
BILIT
Y
AUDIB
-ILITY
AVAIL-
ABILITY
TARGET
CONSUMERS
Physio-
logicalneeds
VISUAL/
AESTHETI
C
APPEAL
SHARE OF
VISUAL
MATERIALSSHARE OF
SHELF
SPACE
SHARE OF
VOICE
LEVEL OF
EXPOSURE
DISTRIBUTION
PUS
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Copyright Rahim Jabbar/1999
MANAGING THE BRAND :Operational Aspects of Brand Equity(6%)
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Operational Aspects of Brand EquityAdvertising Quality
Advertising weight
Qualitative research results
Take out
Brand Support ExpenditureShare of voices (Spend)
Perceived Quality
Price
Actual Quality / CPT
Price differentials
Spontaneous Awareness
Aided Awareness
Advertising Awareness
Brand Awareness
Source of Awareness
Numeric Distribution
Weighted Distribution
Numeric Distribution
By channel
Sales per distribution points
Awareness Effects
Distribution Effects
Value
Advertising Effects
Consumer Pull
Operational Effects(Push)
Brand Equity
( )
(28%)
(72%)
(50%)
(50%)
(37%)
(63%)
(100%)
(94%)
(95%)
(5%)
(99%)
(1%)
(82%)
(18%)
Targets: Marketing
Consumer Profile
Volume &Share
Targets: FinancialsNTO and margins
Brand trial & re-purchaseSwitching in and out
Brand Performance
Volume growth
Share/share developmentLoyalty
Brand Image
Source: A study on a fast moving consumer product market in Malaysia (1985-1995)
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KEY POINTS
KEY POINTS
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KEY POINTS
THE ORIGIN OF BRANDS
Business is about creating value added through economictransactions.
Marketing is tasked to manage the economic transactionbetween a business with its consumers/customers/clients.
As far back as four millennia ago, craftsmen from Persia, Chinaand India in marketing their products used their signaturesor symbols as the marks to identify and differentiate theirproducts.
As marketing became a stronger now the strongest keydriver of business, trade-marks were gradually transformedto be synonymous with brands.
KEY POINTS (C ti d 1)
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KEY POINTS (Continued-1)
THE DEFINITION OF BRAND
Brand is defined as a name, symbol or design, or combination ofthose elements used to identify and differentiate a product orservice of a company and those of competitors. Brand is acompetitive weaponry.
THE BENEFITS OF BRANDS
Brands bring benefits to both the business and the consumers:Brands facilitate consumer decision making and choice. Brands
transform consumption experiences. For the business, brandscan cement consumer loyalty that will generate more sales andrevenues.
KEY POINTS (C ti d 2)
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KEY POINTS (Continued-2)
THE COMPONENTS OF A BRAND
A product or service is the basis for a brand. The secondcomponent of a brand is its name and logo that become theidentifiers of the brand. The third component is its packagingthat functions as its external presenter. The fourth component isthe messages or stories created around the brand that play theroles of its narrator or purveyor. The fifth component is its pricewhich is the proxy of its value. All components should be inharmony to each other.
THE POSITION FOR A BRANDAs a brand is the identifier and differentiator for a product, a
brand should be aimed to occupy certain territory in theconsumers minds. The particular/specific territory occupiedby a brand in the consumers minds is called the position of thebrand.
KEY POINTS (C ti d 3)
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KEY POINTS (Continued-3)
POSITIONING A BRAND
So, positioning a brand is what you do to the mind of theprospective consumers. Positioning is about finding the bestfor the product/service and the most appropriate for the targetmarket. (It is all in the consumers mind!)
The process of developing a competitive position for a brandstarts with the segmentation of the market, followed bytargeting ( selecting a particular segment) to whom a brand isto be positioned (positioning).
In order to explore competitive values to be wrapped in thebrand to be positioned, we should analyze the target consumers( consumer insights) and the competitors brands.(competitors mapping)
KEY POINTS (Continued 4)
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KEY POINTS (Continued-4)
POSITIONING A BRAND (Continued)
Therefore, positioning a brand is about identifying the optimalplace within the competitive set in the consumers minds. Thepositioning statement should draw on the strongest benefitsoffered by the brand.
Positioning statement should clarify what the brand is all about.It should clearly state the brands uniqueness and point-of-difference (P.O.D.) . The statement should also explain why theconsumers should BUY and USE the brand:
Who are you going to give this positioning to?
Who are you going to market your product to?What do they want and need?What consumer insights is your positioning based on?
KEY POINTS (Continued 5)
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KEY POINTS (Continued-5)
MANAGING THE BRAND
Managing a brand covers : developing, rejuvenating, extending,and marketing the brand (that includes distributing andadvertising it to the target market).
Managing a brand also means managing the process ofconsumer-brand linkage form being unaware to become loyalusers (maximizing switchers-in and minimizing out-switchers)
The objective of brand management is to develop, create andand strengthen the equity of the brand.
Brand equity is the ability of a brand to gain market share ,through first having a reasonable share of mind and share ofhearts.
References (1)
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f ( )
Capon, Noel and James M. Hulbert, Marketing Management
in the 21st Century, Prentice Hall, 2001Davidson, Hugh, Even More Offensive Marketing, Penguin
Books, 1997
Hiam, Alexander and Charles D. Schewe, The Portable MBA
inMarketing, John Wiley & Sons, Inc., 1992
Jabbar, Rahim, Approaches towards Segmentation,
Targeting & Positioning, 2002, (unpublished)
Business Week, 2001, The 100 Most Valuable Global Brands
WIPO, Intellectual Property, A Power Tool for Economic
Growth, 2002, internet edition, accessed 2nd August 2005 through:http://www.wipo/int/about_wipo/gen/wipo.dgo/wipo_pub_888/
html.
R f (2)
http://www.wipo/int/about_wipo/gen/wipo.dgo/wipo_pub_888/http://www.wipo/int/about_wipo/gen/wipo.dgo/wipo_pub_888/8/3/2019 Brand Fundamentals(1)
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References (2)
Kennedy,Carol, Managing with the Gurus, Top level
Guidance on 20 management techniques, Century BusinessBook, 1996
Cowley, Don, Ed. Understanding Brands, Kogan Page 1991
Aaker, David A. Managing Brand Equity The Free Press,1991
Temporal, Paul, Branding in Asia, 2001
Knapp, Duane E, The Brand Mindset, The Mc-Graw HillCompanies Inc., 2000
Upshaw, Lynn B., Building Brand Identity, John Wiley &
Sons Inc., 1995.
Arnold, David, The Handbook of Brand Management,Century Business, 1992.
Woodruff, Robert & Gardial, Sarah F., Understanding
Customer Values & Satisfaction, Blackwell Business, 2000.