1

BRAND MANAGEMENTCourtesy of:

Prof. Kevin L. KellerAmos Tuck School of Business

Dartmouth College, USA

Adrian Monoranumonoranu@gmail.com

www.monoranu.rohttp://twitter.com/monoranu

http://youtube.com/monoranuhttp://facebook.com/monoranu

2

What is a Brand?

• A brand is a name, term, sign, symbol, or design which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.

3

New Branding Challenges

• Brands are important as ever– Consumer need for simplification– Consumer need for risk reduction

• Brand management is as difficult as ever– Savvy consumers– Increased competition– Decreased effectiveness of traditional

marketing tools and emergence of new marketing tools

– Complex brand and product portfolios

4

The Customer/Brand Challenge

• In this difficult environment, marketers must have a keen understanding of:– customers– brands– the relationship between the two– creating brand equity*

*Brand equity refers to the marketing effects or outcomes that accrue to a product with its brand name compared with those that would accrue if the same product did not have the brand name – Kevin Lane Keller – 2003.

5

The Key to Branding

• For branding strategies to be successful, consumers must be convinced that there are meaningful differences among brands in the product or service category.

• Consumer must not think that all brands in the category are the same.

• PERCEPTION = VALUE

6

Strategic Brand Management

• Strategic brand management 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 values2)  Planning and implementing brand marketing programs3)  Measuring and interpreting brand performance4)  Growing and sustaining brand equity

7

Strategic Brand Management Process

Mental mapsCompetitive frame of referencePoints-of-parity and points-of-differenceCore brand valuesBrand mantra

Mixing and matching of brand elementsIntegrating brand marketing activitiesLeveraging of secondary associations

Brand Value ChainBrand auditsBrand trackingBrand equity management system

Brand-product matrixBrand portfolios and hierarchiesBrand expansion strategiesBrand reinforcement and revitalization

KEY CONCEPTSSTEPS

Grow and SustainBrand Equity

Identify and EstablishBrand Positioning and Values

Plan and Implement Brand Marketing Programs

Measure and InterpretBrand Performance

8

Bookmark, Read, Acknowledge!

http://darkmattermatters.com/brand-positioning-tips/

Chris Grams

9

The Concept of Brand Equity

• The brand equity concept stresses the importance of the brand in marketing strategies.

• Brand equity is defined in terms of the marketing effects uniquely attributable to the brand.– Brand equity relates to the fact that different outcomes

result in the marketing of a product or service because of its brand name, as compared to if the same product or service did not have that name.

10

The Concept of Customer-Based Brand

Equity• Customer-based brand equity

– Differential effect– Customer brand knowledge– Customer response to brand marketinghttp://mktg.uni-svishtov.bg/ivm/resources/CustomerBasedbrandEquityModel.pdf

11

Determinants of Customer-Based Brand

Equity

– Customer is aware of and familiar with the brand

– Customer holds some strong, favorable, and unique brand associations in memory

12

Building Customer-Based Brand Equity

• Brand knowledge structures depend on . . .

– The initial choices for the brand elements

– The supporting marketing program and the manner by which the brand is integrated into it

– Other associations indirectly transferred to the brand by linking it to some other entities

13

Brand Elements• A variety of brand elements can be chosen

that inherently enhance brand awareness or facilitate the formation of strong, favorable, and unique brand associations:

– Brand Name– Logo– Symbol

– Character

– Packaging

– Slogan

14

Brand Elements Choice Criteria:General Considerations

• Memorable– Easily Recognized– Easily Recalled

• Meaningful– Credible &

Suggestive– Rich Visual & Verbal

Imagery

• Appealing– Fun & Interesting– Aesthetics

• Adaptable– Flexible &

Updateable

• Protectable– Legally– Competitively

• Transferrable– Within & Across

Product Categories– Across Geographical

Boundaries & Cultures

15

Benefits of Customer-Based Brand

Equity• Enjoy greater brand loyalty, usage, and

affinity• Command larger price premiums• Receive greater trade cooperation &

support• Increase marketing communication

effectiveness• Yield licensing opportunities• Support brand extensions.

16

Customer-Based Brand Equity

as a “Bridge”• Customer-based brand equity

represents the “added value” endowed to a product as a result of past investments in the marketing of a brand.

• Customer-based brand equity provides direction and focus to future marketing activities

17

Motivation forCustomer-Based Brand Equity

Model

• Marketers know strong brands are important but aren’t always sure how to build one.

• CBBE model was designed to be …– comprehensive – cohesive – well-grounded – up-to-date– actionable

18

Rationale of Customer-Based Brand Equity

Model

• Basic premise: Power of a brand resides in the minds of customers

• Challenge is to ensure customers have the right types of experiences with products & services and their marketing programs to create the right brand knowledge structures:– Thoughts– Feelings– Images– Perceptions– Attitudes

19

Building Customer-Based Brand

Equity

• Building a strong brand involves a series of steps as part of a “branding ladder”

• A strong brand is also characterized by a logically constructed set of brand “building blocks.”– Identifies areas of strength and weakness– Provides guidance to marketing activities

20

Consumer-Based Brand Equity Framework

BrandKnowledge

BrandKnowledge

Brand Recognition

Brand Recognition

Brand Recall

Brand Recall

Non-Product-Related(e.g., Price, Packaging,

User and Usage Imagery)

Non-Product-Related(e.g., Price, Packaging,

User and Usage Imagery)

Product-Related(e.g., color, size, design features)

Product-Related(e.g., color, size, design features)

FunctionalFunctional

SymbolicSymbolic

ExperientialExperiential

AttributesAttributes

BenefitsBenefits

OverallEvaluation(Attitude)

OverallEvaluation(Attitude)

Types ofBrand Associations

Types ofBrand Associations

Favorability, Strength, and

Uniqueness of Brand Association

Favorability, Strength, and

Uniqueness of Brand Association

BrandAwareness

BrandAwareness

BrandImage

BrandImage

21

CUSTOMER-BASED BRAND EQUITY PYRAMID

RESONANCE

SALIENCE

JUDGMENTS FEELINGS

PERFORMANCE IMAGERY

4. RELATIONSHIPS =

What about you & me?

4. RELATIONSHIPS =

What about you & me?

3. RESPONSE =

What about you?

3. RESPONSE =

What about you?

2. MEANING =

What are you?

2. MEANING =

What are you?

1. IDENTITY =

Who are you?

1. IDENTITY =

Who are you?

22

Salience Dimensions

• Depth of brand awareness– Ease of recognition & recall– Strength & clarity of category

membership

• Breadth of brand awareness– Purchase consideration– Consumption consideration

23

Performance Dimensions

• Primary characteristics & supplementary features

• Product reliability, durability, and serviceability

• Service effectiveness, efficiency, and empathy

• Style and design

• Price

24

Imagery Dimensions

• User profiles– Demographic & psychographic characteristics– Actual or aspirational– Group perceptions -- popularity

• Purchase & usage situations– Type of channel, specific stores, ease of purchase– Time (day, week, month, year, etc.), location, and context of

usage

• Personality & values– Sincerity, excitement, competence, sophistication, &

ruggedness

• History, heritage, & experiences– Nostalgia– Memories

25

Judgment Dimensions

• Brand quality– Value– Satisfaction

• Brand credibility– Expertise– Trustworthiness– Likability

• Brand consideration– Relevance

• Brand superiority– Differentiation

26

Feelings Dimensions

• Warmth• Fun• Excitement• Security• Social approval• Self-respect

27

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 (the state of having common characteristics or a

common origin)– Affiliation

• Active engagement– Seek information– Join club– Visit web site, chat rooms

28

Customer-Based Brand Equity Model

Consumer-BrandResonance

Brand Salience

Consumer Judgments

Consumer Feelings

BrandPerformance

BrandImagery

INTENSE, ACTIVE LOYALTY

INTENSE, ACTIVE LOYALTY

RATIONAL & EMOTIONAL REACTIONS

RATIONAL & EMOTIONAL REACTIONS

POINTS-OF-PARITY &

POINTS-OF-DIFFERENCE

POINTS-OF-PARITY &

POINTS-OF-DIFFERENCE

DEEP, BROAD BRAND

AWARENESS

DEEP, BROAD BRAND

AWARENESS

29

Sub-Dimensions of CBBE Pyramid

LOYALTYATTACHMENTCOMMUNITYENGAGEMENT

QUALITY CREDIBILITYCONSIDERATIONSUPERIORITY

WARMTHFUNEXCITEMENTSECURITYSOCIAL APPROVALSELF-RESPECT

CATEGORY IDENTIFICATIONNEEDS SATISFIED

PRIMARY CHARACTERISTICS &SECONDARY FEATURES

PRODUCT RELIABILITY, DURABILITY & SERVICEABILITY

SERVICE EFFECTIVENESS, EFFICIENCY, & EMPATHY

STYLE AND DESIGN PRICE

USER PROFILESPURCHASE & USAGE

SITUATIONSPERSONALITY &

VALUESHISTORY, HERITAGE, & EXPERIENCES

30

Brand Positioning

• Define competitive frame of reference– Target market– Nature of competition

• Define desired brand knowledge structures– Points-of-parity

• necessary• competitive

– Points-of-difference• strong, favorable, and unique brand associations

31

Issues in Implementing Brand Positioning

• Establishing Category Membership• Identifying & Choosing POP’s & POD’s• Communicating & Establishing POP’s

& POD’s• Sustaining & Evolving POD’s & POP’s

32

Establishing Category Membership

• Product descriptor• Exemplar comparisons

33

Identifying & Choosing POP’s & POD’s

• Desirability criteria (consumer perspective)– Personally relevant– Distinctive & superior– Believable & credible

• Deliverability criteria (firm perspective)– Feasible – Profitable– Pre-emptive, defensible & difficult to

attack

34

Major Challenges in Positioning

• Find compelling & impactful points-of-difference (MacMillan & McGrath, HBR, ‘97)– How do people become aware of their need for

your product and service?– How do consumers find your offering?– How do consumers make their final selection?– How do consumers order and purchase your

product or service?– What happens when your product or service is

delivered?– How is your product installed?– How is your product or service paid for?

35

Major Challenges in Positioning

• Find compelling & impactful points-of-difference (cont.) – How is your product stored?– How is your product moved around?– What is the consumer really using your product

for?– What do consumers need help with when they use

your product?– What about returns or exchanges?– How is your product repaired or serviced?– What happens when your product is disposed of

or no longer used?

36

Communicating & Establishing

POP’s & POD’s• Create POP’s and POD’s in the

face of attribute & benefit trade-offs– Price & quality– Convenience & quality– Taste & low calories– Efficacy & mildness– Power & safety– Ubiquity & prestige– Comprehensiveness (variety) & simplicity– Strength & refinement

37

Strategies to Reconcile Attribute & Benefit Trade-

Offs• Establish separate marketing

programs• Leverage secondary association (e.g.,

co-brand)• Re-define the relationship from

negative to positive

38

Sustaining & EvolvingPOP’s & POD’s

• Core Brand Values &Core Brand Proposition

39

Core Brand Values

• Set of abstract concepts or phrases that characterize the 5-10 most important dimensions of the mental map of a brand.

• Relate to points-of-parity and points-of-difference

• Mental Map Core Brand Values Brand Mantra

40

Brand Mantras

• A brand mantra is an articulation of the “heart and soul” of the brand. – Brand mantras are short three to five word

phrases that capture the irrefutable essence or spirit of the brand positioning and brand values.

• Nike– Authentic Athletic Performance

• Disney– Fun Family Entertainment

41

Integrating the BrandInto Supporting Marketing

Programs

• Product Strategy• Deliver tangible and

intangible benefits• Add value through

customer information

• Pricing Strategy• Understand

perceptions of value• Balance price, cost, &

quality

• Communication Strategy• Mix & match

communication options

• Channel Strategy• Blend channel “push”

with consumer “pull”• Develop & brand direct

marketing options

Supporting marketing mix should be designed to enhance awareness and establish desired brand image.

42

Personalizing Marketing

• Relationship Marketing – provide more holistic, personalized brand experiences to create stronger consumer ties– Mass customization– CRM– After-marketing & loyalty programs

• Examples– Experiential Marketing– Permission Marketing– One-to-One Marketing

43

Experiential Marketing

• Employ multiple touch points & multiple senses

• Often involves special events, contests, promotions, sampling, on-line activities, etc.

• Combine brand education & entertainment

• Distinctive and relevant

44

Permission Marketing (Seth Godin)

• Permission marketing “encourages consumers to participate in a long-term interactive marketing campaign in which they are rewarded in some way for paying attention to increasingly relevant messages.”– Anticipated– Personal– Relevant

• Permission marketing can be contrasted to interruption marketing

45

5 Steps in Permission Marketing

• Must offer overt, obvious, and clearly delivered incentive to prospect to volunteer

• Must offer a curriculum over time, teaching the consumer about the product or service

• Must reinforce the incentive over time• Must increase the level of permission the

marketer receives from the customer• Must leverage permission to generate

profits

46

10 Questions to Evaluate Permission Marketing

Program• What’s the bait?• What does an incremental permission cost?• How deep is the permission that so granted?• How much does incremental frequency cost?• What’s the active response rate to communications?• What are the issues regarding compression?• Is the company treating the permission as an asset?• How is the permission being leveraged?• How is the permission level being increased?• What is the expected lifetime of one permission?

47

One-to-One Marketing:Competitive Rationale

• Consumers help to add value by providing information

• Firm adds value by generating rewarding experiences with consumers– Creates switching costs for consumers– Reduces transaction costs for consumers– Maximizes utility for consumers

48

One-to-One Marketing:Consumer Differentiation

• Treat different consumers differently– Different needs– Different values to firm

• current• future (life-time value)

• Devote more marketing effort on most valuable consumers (and customers)

49

One-to-One Marketing:Five Key Steps

• Identify consumers, individually and addressably

• Differentiate them, by value and needs

• Interact with them more cost-efficiently and effectively

• Customize some aspect of the firm’s behavior

• Brand the relationship

50

Buzz Marketing(Emanuel Rosen)

• Keep it simple – Simple messages spread across social networks more easily.

• Tell us what’s new – The message must be relevant and newsworthy for people to want to tell others about it.

• Don’t make claims you can’t support – Making false claims will kill buzz or, worse, lead to negative buzz.

• Ask your customers to articulate what’s special about your product or service – If customers can explain why they like the product or service, they can then communicate this to others.

• Start measuring buzz – This can help determine which strategies generate the most buzz.

• Listen to the buzz – Monitoring consumer reaction can yield insights such as how to improve the product or service.

51

Personalizing Marketing• All of these approaches are a means to create

deeper, richer, and more favorable brand associations

• Relationship marketing has become a powerful brand-building force – can slip through consumer radar– may creatively create unique associations– may reinforce brand imagery and feelings

• Nevertheless, there is still a need for the control and predictability of traditional marketing activities

• Models of brand equity can help to provide direction and focus to the marketing programs