MARKETING PRESENTATION•TOPIC:

BUILDING STRONG BRANDS

•Presented By: Group 5

BUILDING STRONG BRANDS• 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.

SOME IMPORTANT CONCEPTSBrand Name: The part of a brand that can be

spoken including letters, words and numbers.Brand Mark: The elements of a brand that cannot be spokenBrand Equity: The value of company and brands names.Master Brand: A brand so dominant that it comes to mind immediately when a product category, use, attributes or benefit is mentioned.

A LOOK AT MASTER BRANDS

Baking Soda

Adhesive Bandages

Rum

Gelatin

Soup

Cream Cheese

Crayons

Petroleum Jelly

Arm & Hammer

Band-Aid

Bacardi

Jell-O

Campbell’s

Philadelphia

Crayola

Vaseline

BRAND MARK

Logo/Name

BENEFITS OF BRANDINGBranding Distinguishes Products From

Competition

Product Identification

Aids In Repeat Sales

Aids In New Product Sales

Aids In Attracting Loyal Customers And Segments

It Is The Image

BUILDING BRAND IDENTITY

BRAND BONDINGo Brands Are Not Built By Advertising But By Brand

Experience.

o Everyone In The Company Lives The Brand.

o Three Ways To Carry Out Internal Branding- Employees Must

Understand,

Desire, And

Deliver On The Brand Promise.

BUILDING BRANDS IN THE NEW COMPANY

Heidi and Don Schultz urge companies to:

• Clarify the corporation’s basic values and build the corporate brand.

• Use brand managers to carry out the tactical work.

• Develop a more comprehensive brand-building plan.

• Define the brand’s basic essence to be delivered wherever it is sold.

• Use the brand value-proposition as the key driver of the company’s strategy, operations, services and product development.

• Measure their brand-building effectiveness, not by the old measures of awareness, recognition or recall, but by a more comprehensive set of measures including customer perceived value, customer-satisfaction, customer share of wallet, customer retention and customer advocacy.

•Branding gives seller several advantages Brand name makes it easier for sellers to process

orders and track down problems.

Seller’s brand name and trade mark provides legal protection of unique product features.

Branding gives the seller the opportunity to attract a loyal and profitable set of customers.

Branding helps the seller segment markets.

Strong brands help build market image, making it easier to launch new brands and gain acceptance by distributors and consumers.

FAITHFUL OR FICKLE?A LOOK AT BRAND

LOYALTY• Cigarettes 71%

• Mayonnaise 65%

• Toothpaste 61%

• Coffee 58%

• Athletic Shoes 27%

• Canned Veggies 25%

• Garbage Bags 23%

WHAT IS BRAND EQUITY??A set of assets and

liabilities linked to a brand’s nameand symbol that add or subtract

from the value provided by aproduct or service to a firm and/ or

that firm’s customers.

Aaker, David A. (1991), Managing Brand Equity: Capitalizing on the Value of a Brand Name, The Free Press, New York

BrandEquity

Awareness

Competitive

Advantage

Associations

Perceived

Quality

Loyalty

BUILDING BRANDING EQUITYBRAND AWARENESSBRAND ACCEPTABILITYBRAND PREFERENCE•AAKER’S FIVE LEVELS OF CUSTOMER ATTITUDE:The customer will change brand, especially for price reasons. No brand loyalty.Customer is satisfied. No reason to change brand. Customer is satisfied and would incur cost by changing brand.Customer values the brand and sees it as a friend.Customer is devoted to the brand.

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Customer-Based Brand Equityas 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

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CUSTOMER-BASED BRAND EQUITY PYRAMID

RESONANCE

SALIENCE

JUDGMENTS FEELINGS

PERFORMANCE IMAGERY

4. RELATIONSHIPS =

What about you & me?

3. RESPONSE =

What about you?

2. MEANING =

What are you?

1. IDENTITY =

Who are you?

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SALIENCE DIMENSIONS• Depth of brand awareness

–Ease of recognition & recall

–Strength & clarity of category membership

• Breadth of brand awareness

–Purchase consideration

–Consumption consideration

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PERFORMANCE DIMENSIONS • Primary characteristics & supplementary

features

• Product reliability, durability, and serviceability

• Service effectiveness, efficiency, and empathy

• Style and design

• Price

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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

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JUDGMENT DIMENSIONS• Brand quality

– Value

– Satisfaction

• Brand credibility

– Expertise

– Trustworthiness

– Likability

• Brand consideration

– Relevance

• Brand superiority

– Differentiation

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FEELINGS DIMENSIONS

• Warmth

• Fun

• Excitement

• Security

• Social approval

• Self-respect

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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– Affiliation

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

VALUE OF BRAND EQUITY

Brand valuationCompetitive advantage

of high brand equity:• The company will have more

leverage in bargaining with distributors and retailers because customers expect them to carry the brand.

• The company can charge a higher price than its competitors because the brand has higher perceived quality.

• The company can more easily launch extensions because the brand name carries high credibility.

• The brand offers some defense against price competition.

The World’s 10 Most Valuable BrandsRank Brand Value (billions)

1 Coca Cola $69.62 Microsoft $64.13 IBM $51.24 GE $41.35 Intel $30.96 Nokia $307 Disney $29.38 McDonald’s $26.49 Marlboro $24.210 Mercedes $21

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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

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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

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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.

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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

THANK YOU