Week 4 - Branding

8/7/2019 Week 4 - Branding

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W E E K 4

BRANDING


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Branding has been

around for centuries


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BRANDS perform valuable functions for both:

y - customers

y - firms


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THE SCOPE OF BRANDING

y Ultimately,

a brand

resides

in minds


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y Marketers can apply virtually anywhere.

It is even possible to brand an idea( free trade,freedom of speech, etc.)


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CUSTOMER BASED BRAND EQUITYMODELS

y Their premise is that the power of a brand lies in

what consumers have seen, read, heard, learned,thought, and felt about the brand over the time.


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y Customer-based brand equity can be:

- positive

- negative


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y BRANDS MUST CREATE UNIQUEASSOCIATIONS IN OURMINDS

Volvo safety

Harley-Davidson adventure


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APPLE COMPUTER

y - IS AMASTER IN BUILDING STRONG BRANDS

To create great things that change peoples lives


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y Inappropriate extensions for the brands can itreally happen?

YES

Ex., Crystal Pepsi, Levis Tailored Classic Suits


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BURGER KING

y The president for global marketing Russ Klein says:Its more important for us to be provocative thanpleasant


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BAV brand equity model

y Was developed by the advertising agency Young andRubicam and based on research with almost

500.000 consumers

in 44 countries.

There are 5 key pillars of brand equity:

1. Differentiation

2. Energy

3. Relevance4. Esteem

5. Knowledge


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BRANDZ brand equity model

y Was developed by marketing research consultantMillward Brown .

y At the heart of this model - the Brand Dynamics

Pyramid

BONDING

ADVANTAGE

PERFORMANCE

RELEVANCE

PRESENCE


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Aaker brand equity model

y Was developed by marketing professor David Aaker views brand equity as the brand awareness, brandloyalty and brand associations that combine to add

or subtract from the value provided by a product orservice.

y First of all, to develop brand identity, and then brandessence to communicate the brand identity in a

compact and inspiring way.y Credibility is also important.


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BRAND RESONANCE brand equity model

y According to this model, enacting the 4 steps meansestablishing a pyramid of six brand building blockswith customers.

y The model emphasizes the duality of brands: therational and emotional route to brand building.

y Master Card is an example of a brand with duality.

There are some things you cant buy; for everythingelse, theres Master Card


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Brand Resonance Pyramid

RESONANCE

FEELINGSJUDGMENTS

IMAGERYPERFORMANCE

SALIENCE


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y Most STRONG BRANDS employ

MULTIPLE

BRAND ELEMENTS


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y Brand names

Color Stay lipsticks

SnackWell

What consumers might expect?


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BRAND ELEMENT CHOICE CRITERIA

y 1. Memorable

y 2. Meaningful

y 3. Likable

y 4. Transferable

y 5. Adaptable

y 6. Protectible

Brand building criteria

Defensive criteria


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The Keebler Elveswww.keebler.com

The Keebler Companyis the second-largest cookieand cracker manufacturer in the United States.

The Keebler slogan reads "Uncommonly Good".


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AVIS GROUP HOLDING INC.

y Brand names arent the only important brandelement.

y Slogans are an extremely efficient means to build

brand equity, too.

We try harder


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Brands are not built by advertising alone.

By brand contact, too.

By personalizing marketing, too.


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Jones Sodahttp://www.jonessoda.com/

Turkey and GravyPineapple Upside Down

Purple CarrotLemon Drop Dead


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Permission Marketing

y Interruption marketing? - NO

y Respecting consumers? - YES


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The Olive Gardenhttp://www.olivegarden.com

WHEN YOURE HERE, YOUREFAMILY

The idealized Italian family mealcomplemented by a great glass of wine

Served by people who treat you like

family


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Identityand Image

Are they the same?

NO


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INTERNAL BRANDING

y To adopt internal perspective to be sure thatemployees and marketing partners understand andappreciate basic brand options and how they can

help or hurt brand equity.


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BRAND BONDING

y The brand promise will not be delivered unlesseveryone in the company lives for the brand

The most successful may be Disney company, becauseeven Disney Style seminars are held for employeesfrom other companies.


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Eli Lillywww.lilly.com

y Lilly makes medicines that help people live longer,healthier, more active lives.

SLOGAN Answers that matter


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Important principles for internal marketing

Choose the right moment

Link internal and external marketing


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Brand Audit and Brand tracking studies

y Procedures to assess the health of the brand

y To keep fingers on the pulse of their brands

y Collecting quantitative data from consumers on a

routine basisy Conducting on a regular basis, annually

y A means of understanding where, how much and inwhat ways brand value is being created


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BRAND VALUATION

y - ESTIMATING THE TOTAL FINANCIAL VALUEOF THE BRAND

y In well-known companies such as Coca-Cola,

Microsoft, IBM, Disney, Mc.Donalds, brand value istypically over half the total company marketcapitalization.


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y If this business were split up, I would give you theland and bricks and mortar, and I would take thebrands and trademarks, and I would fare better

than youy Jone Stuart (cofounder of

Quaker Oats)


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Is BRAND EQUITY listed on the balance sheets?

y USA

y UK

y HongKong

y Australia


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Brand Reinforcement

y As a company major asset brand needs to becarefully managed so that its value does notdepreciate.

y Wrigleysy Polaroid

y Levi Strauss

y Heinz

y Coca Cola

What brand failed to move foreward?


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y In an attempt to woo a different audience VOLVOdrifted away from safety in the late 1990-s to pushdriving fun, speed and performance.

y Purchased by FORD in 1999, the company droppedits reVOlVOlution themed add campaign for thebrand and went back to its roots.

y VOLVOssalesset records in 2003.


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Brand Revitalization

y Pepsi initially introduced Mountain Dew in 1969.

y By the 1990-s the brand got stuck on the storeshelves.

y The turned the brand around, updated the packagingand launched ads featuring a group of anonymousyoung males the Dew Dudes- participating inextreme sports while consuming Mountain Dew.

y Slogan was changed into DO THE DEW!


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Devising a Brand Strategy

y Brand extension

y Subbrand

y Parent brand

y Family brandy Line extension

y Category extension

y Brand line

y Brand mixy Branded variants

y Licensed product


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General Strategies to use brand names

1. Individual names

+ company does not tie its reputation to the product

2. Blanket family names (Heinz, GE)

+lower development costs, no need to run nameresearch and spend on advertising

3. Separate family names for all products (Sears useKenmore for appliances, Craftsman for tools andHomari for major home installations)

4. Company name combined with individual productnames (Kelloggs Rice Krispies, Kelloggs cornflakes,etc.)


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Advantages of brand extensions

y Renew interest for the brand

y Benefit the parent brand

y can serve as the basis for subsequent extensions


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Disadvantages of brand extension

y The brand name can be less strongly identified withany one product

BRAND DILUTION - Consumersthinklessofthe brand

Consumersno longer associate thebrand with

aspecific product


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Brand Portfolio

y THE SET OF ALL BRANDS AND BRAND LINES APARTICULAR FIRM OFFERS FOR SALE INA

PARTICULAR CATEGORY OR MARKETSEGMENT.


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QUIZ 1

Marketing Management byPh. Kotler

Ch.1 Defining Marketing for the 21st century

Ch.5 Creating Customer Value, Satisfaction and

LoyaltyCh.9 Creating Brand Equity

HospitalityMarketing Management

Ch. 3 HospitalityMarketing Mix

Ch. 4 Branding, Brand Equity and Brand Extension

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Week 4 - Branding

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