4. douglas - branding advantages and disadvantages.pdf

7/28/2019 4. Douglas - Branding Advantages and Disadvantages.pdf

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Branding: advantages andBranding: advantages anddisadvantages: Is there andisadvantages: Is there an

optimal solution?optimal solution?

Don DouglasDon Douglas

PDVIPDVI


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Branding definedBranding defined

A brand is an asset of differentiatingA brand is an asset of differentiating

promises that links a product to itspromises that links a product to itscustomerscustomersStuartStuartAgresAgres, Young & Rubicam, Young & Rubicam


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The dilemma of branding drugs andThe dilemma of branding drugs and

vaccines created with public fundsvaccines created with public funds

A brand represents a known, trusted quality forA brand represents a known, trusted quality for

people while generic products are less known,people while generic products are less known,

less trusted. However, brand building isless trusted. However, brand building isexpensive and needs longexpensive and needs long--term support.term support.


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The case for branding of socialThe case for branding of social

productsproducts Branding differentiates products and makesBranding differentiates products and makes

the product easily identifiable.the product easily identifiable. Branding allows users to form an opinion and aBranding allows users to form an opinion and a

preference for the product.preference for the product.

A brand creates real value in the eyes ofA brand creates real value in the eyes ofindustry partners, and perceived value in theindustry partners, and perceived value in theeyes of product users.eyes of product users.

Branding creates intellectual propertyBranding creates intellectual property(trademarks) that can increase the value(trademarks) that can increase the value

of the product to commercial partners, andof the product to commercial partners, andallow the PDP to retain control of how theallow the PDP to retain control of how theproduct isproduct is costedcosted and utilized.and utilized.


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The case against branding socialThe case against branding social

productsproducts Branding is expensive, and adds costs which mustBranding is expensive, and adds costs which must

be borne by the consumer or by the donor. i.e.be borne by the consumer or by the donor. i.e.value of Coca Cola is largely the value of the brandvalue of Coca Cola is largely the value of the brand

Branding requires longBranding requires long--term support, and donorsterm support, and donors

will not be willing to sustain support.will not be willing to sustain support. If social concerns start competing with commercialIf social concerns start competing with commercial

firms in marketing, theyfirms in marketing, theyunlevelunlevelthe playing fieldthe playing field

because they are playing with donor money.because they are playing with donor money. If social products knock commercial firms out ofIf social products knock commercial firms out of

the market, what happens when the donor supportthe market, what happens when the donor support

ends and revenues are not sufficient to maintainends and revenues are not sufficient to maintainthe product in the marketplace?the product in the marketplace?


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Why companies brand in the firstWhy companies brand in the first

place? What the private sector knowsplace? What the private sector knows

Brand Equity contributes to product value:Brand Equity contributes to product value:

AwarenessAwareness the strength of a brandthe strength of a brands presences presencein the targetin the targets minds mind

Perceived qualityPerceived quality

associated with a brand inassociated with a brand in

the mind of the target consumerthe mind of the target consumer

Brand loyaltyBrand loyalty repeat behavior determines longrepeat behavior determines long--

term successterm success Brand associationsBrand associations emotional bonds that tieemotional bonds that tie

the brand to the targetthe brand to the targets self image.s self image.


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Creating Brand IdentityCreating Brand Identity

Brand as productBrand as product the functional issues ofthe functional issues of

the brandthe brands attributes, quality and value;s attributes, quality and value; Brand as organizationBrand as organization the credibility ofthe credibility of

the organization behind the brand;the organization behind the brand;

Brand as personBrand as person brandbrand--customercustomerrelationshiprelationship creating a bond between thecreating a bond between the

person and the brand, andperson and the brand, and

Brand as symbolBrand as symbol provides cohesion toprovides cohesion to

brand identity.brand identity.


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Brand as ProductBrand as Producthelps establishhelps establish

the perception of quality and valuethe perception of quality and value

In the highIn the high--noise environment of productnoise environment of productadvertising, consumers need to know how toadvertising, consumers need to know how tochoose one product over another, and do so bychoose one product over another, and do so by

comparing product attributes. When the cannotcomparing product attributes. When the cannotdo this, or have too little time for comparison,do this, or have too little time for comparison,they tend to choose products by their perceptionthey tend to choose products by their perception

of the reputation of the brandof the reputation of the brand


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Brand as OrganizationBrand as Organizationestablishes theestablishes the

value (social value) of the productvalue (social value) of the product Company reputation enhances a productCompany reputation enhances a productss

perceived value, i.e.: Merck was for many yearsperceived value, i.e.: Merck was for many years

one of the most respected companies in the U.S.one of the most respected companies in the U.S.

To the extent that we in the public sector haveTo the extent that we in the public sector havesocial credibility, we can transfer that credibility tosocial credibility, we can transfer that credibility tothe products we have helped to create.the products we have helped to create.

i.e.: sociallyi.e.: socially--responsible investments, andresponsible investments, andenvironmentallyenvironmentally--responsible purchases,responsible purchases,consumers should be prepared to accept sociallyconsumers should be prepared to accept socially--

developed drugs and vaccines.developed drugs and vaccines.


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Brand as personBrand as personmay be mostmay be most

important in social marketingimportant in social marketing

The brandThe brand--customer relationship is importantcustomer relationship is important ititcreates a bond between the person and the brandcreates a bond between the person and the brand

It will be difficult to for us to increase marketIt will be difficult to for us to increase market

share if we cannot establish a strong meaning (inshare if we cannot establish a strong meaning (in

terms of our target consumerterms of our target consumers self image) for ours self image) for our

own brandown brand

David A. Aker, Building Strong BrandsDavid A. Aker, Building Strong Brands


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Brand as SymbolBrand as Symbol links thelinks the

product to the consumerproduct to the consumer

Branded products can serve as symbols of theBranded products can serve as symbols of theself image of the user.self image of the user.

A brand that captures your mind gainsA brand that captures your mind gainsbehavior. A brand that captures your heart gainsbehavior. A brand that captures your heart gains

commitmentcommitment

ScottScott TalgoTalgo, brand strategist, brand strategist


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Products resulting from ProductProducts resulting from Product

Development PartnershipsDevelopment Partnerships Product development partnerships are wellProduct development partnerships are well

positioned to take advantage of the strengths ofpositioned to take advantage of the strengths oftheir private, commercial partners in producttheir private, commercial partners in productdevelopment and marketing.development and marketing.

Even products sold in bulk into public sectorEven products sold in bulk into public sector

procurement needs to have an identity = brandprocurement needs to have an identity = brandname of some description, but do notname of some description, but do notnecessarily need to be heavily promoted asnecessarily need to be heavily promoted as

would a purely commercial product.would a purely commercial product. Vaccines and drugs sold through privateVaccines and drugs sold through private

channels need to be differentiated andchannels need to be differentiated andidentifiableidentifiable two characteristics of branding.two characteristics of branding.


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Overbranding of generic productsOverbranding of generic products

Increasingly, genericIncreasingly, generic OTC and consumerOTC and consumerhealthcare productshealthcare products are givenare givenstore brandsstore brandswhich carry with them the reputation of thewhich carry with them the reputation of thevendor.vendor.

PDPPDP--developed products have social value, anddeveloped products have social value, andthis can be conveyed through branding andthis can be conveyed through branding andidentification of the PDP and its social goalsidentification of the PDP and its social goals..

Even for generic prescription drugs, we canEven for generic prescription drugs, we cansometimes observe modest packaging andsometimes observe modest packaging andlabelinglabeling for something likefor something like flucticasoneflucticasone nosenose

spray (a generic prescription allergy drug).spray (a generic prescription allergy drug).


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Generic promotionGeneric promotion

Promote the behavior desiredPromote the behavior desired i.e.: protectioni.e.: protection

against disease through vaccinationagainst disease through vaccination

Promote the product categoryPromote the product category i.e.: the routinei.e.: the routine

use of antiuse of anti--parasite drugs.parasite drugs.

Support both the generic and the commercialSupport both the generic and the commercialforms of products on the marketplace since ourforms of products on the marketplace since ourgoal is greater health not greater market share.goal is greater health not greater market share.


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Overbranding and GenericOverbranding and Generic

promotion: An optimal solution?promotion: An optimal solution? Brand to enhance product value to commercialBrand to enhance product value to commercial

partners, and to impart social value to users.partners, and to impart social value to users. Support modest packaging and labeling forSupport modest packaging and labeling for

vaccines and drugs developed with public funds.vaccines and drugs developed with public funds.

Don't invest in extensive brand marketingDon't invest in extensive brand marketingcampaignscampaigns ---- keep the promotional supportkeep the promotional supportgeneric, which will also support commercialgeneric, which will also support commercial

brands of our privatebrands of our private--sector partners.sector partners. Harness the marketing power and expertise ofHarness the marketing power and expertise of

commercial partners to support both commercialcommercial partners to support both commercial

and nonand non--commercial versions of the products.commercial versions of the products.


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In SummaryIn Summary

Overbranding and generic promotion makes senseOverbranding and generic promotion makes sensebecause branding is expensive and requiresbecause branding is expensive and requiressustained support:sustained support:Limited budgets are lessLimited budgets are less

forgiving and call for bestforgiving and call for best--practice tactics.practice tactics.AakerAaker &&JoachimsthalerJoachimsthaler, 1997., 1997. The nature of the product will largely determineThe nature of the product will largely determine

how it is packaged and promoted, i.e.: ethicalhow it is packaged and promoted, i.e.: ethicalproductsproducts vaccines and prescription drugs arevaccines and prescription drugs aregenerally marketed to health professionals andgenerally marketed to health professionals andnot directly to consumers.not directly to consumers.

Develop a comprehensive relationship with yourDevelop a comprehensive relationship with yourprivateprivate--sector partners, beyond production only.sector partners, beyond production only.They have extensive experience in productThey have extensive experience in productmarketing and can provide expertise andmarketing and can provide expertise andsolutions.solutions.

4. douglas - branding advantages and disadvantages.pdf

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