Untitled Quiz

Marketing Mix Reminder

• Product/service/idea management
• Packaging
• Added services & warranties
• Branding
• New product development
• These are mostly strategic

Distribution Channels Management

• Location
• Physical distribution and logistics
• Merchandising
• These are largely strategic

Persona / Price / Promotion

• Pricing rules
• Financial services
• Discounts & rebates
• Price discrimination
• These rules must balance costs, consumer valuation, and competitor actions.
• They can be strategic, tactical, or operational.
• Communication with customers
• Advertising
• Direct marketing
• Sales promotion
• Sales force management
• Public relations (PR)
• These are more tactical, sometimes operational.

Brand Meaning

• Target market's perception of the brand in terms of brand image
• Emotions, beliefs, and intentions associated with the brand, along with purchase and usage behaviors for the brand.

Keller's CBBE Pyramids

• Should explain how target markets perceive a chosen brand.
• Stages of Brand Development
  • Identity - Who are you?
  • Meaning - What are you?
  • Response - What about you?
  • Relationships - What about you and me?

Evolution of Marketing

• 1930s - product orientation
• 1960s - consumer orientation
• 2010s - consumer as a driver
• Quicker access to info
• Increased competition
• Targeted & personalization
• Experience takes greater importance over product
• Globalization

Sales vs. Marketing

• Sales: Products → selling & promoting → profits through sales volume
• Marketing: Customer needs → integrated marketing → profits through loyalty & CS

Product vs. Customer Centric

• Product-centric: Deliver the best product/service; new product culture; searching for new technologies; developing new products/services; management of innovation
• Customer-centric: Deliver best solutions for the customer; consumer insights culture; searching for new needs; developing new solutions; management of customer experience

Customer Values

• Efficiency
• Convenience
• Friendly service
• Easy payment
• Knowledgeable service
• Human interaction
• Personalization

What is a Brand, What is Branding?

• Derived from "Brandr," meaning to burn oneself into or stigmatize
• Initially used on conquered people
• An essence, more than just a logo
• Founders, consumers, and employees see themselves represented in brands
• Ancient period: proto brands (origin marks)
• Before 1900s: trademarks (legal protection), literal authenticity
• Before 1950s: STP (Segmentation, Targeting, Positioning)
• After 1950s: Brand management systems
• General (1980+): Understanding the value and power of brands
• Concept Definition: A brand is a distinguishing name & symbol identifying goods/services from competitors

Brand management and influences

• Economics – efficiency
• Law – trademarks
• Psychology – individual behaviors
• Anthropology & sociology – social behaviors
• Business studies – firm brand issues
• Media studies – communication
• Creative practice – identity and experience

Brand Building Blocks

• Salience
• Performance
• Imagery
• Judgments
• Feelings
• Resonance

Strong Brands

• Brand qualities
  • Consistent Quality
  • Efficient choice/purchase
  • Signaling of Novelty
  • Engaging and interesting consumption
• Logo/Color Recognition
• Stability
• Brand Phenomenon (ex: Uber)

Brand Meaning

• Relevance in different situations
• Logo/Color recognition
• Brand stability

Who Shapes Brand Meaning?

• Firms
• Users
• Influencers
• Brand meaning is co-created
• Context matters
• Branding is about identity
• Brands are assets
• Co-creating serves latent needs

Brand Equity

• Value added to functional product/service
• Approaches:
  • Customer-based Brand Equity (CBBE)
  • Company (financial) BE
  • Employee BE
• Connectedness to customers via methods and theory and their financial value, along with employee and target customer connections
• The brand is the customer's mind
• "What do I know about it?"
• "What do I feel toward it?"
• "What was it like to use it?"

CBBE

• Buyers know brands from:
  • Brand elements (names, symbols, logos, slogans)
  • Marketing programs (features, designs, benefits, prices, outlets, communications)
  • Secondary elements (company name, country of origin, owner/user characteristics, endorsers)
  • Personal consumption experiences
• Associations depend on awareness and memory
• Associations should be strong, favorable, and unique
• Associations from marketing communications and from buyers' direct experiences

Brand Salience

• Top-of-Mind Awareness
• Brand Recall
• Brand Recognition
• Unaware

CBBE Model (4 Steps)

• Brand identity (who it is) - establishing brand awareness
• Brand meaning – associations (“what does it stand for”)
• Brand response – eliciting positive brand responses
• Loyalty – forming sustainable brand relationships

Brand Resonance (Ultimate Goal)

• Behavioral loyalty
• Attitudinal attachment
• Sense of community
• Active engagement

Brand Resonance - Active Engagement

• Consumers willing to invest time, energy, or resources beyond purchase Examples: club memberships, updates, website visits
• Consumers become brand ambassadors
• Requires a strong attitudinal attachment / sense of community

Brand Resonance – Behavioral Loyalty

• Repeat purchases
• How much and how often do consumers buy the product?
• In absolute vs. relative terms (vs competitors)

Brand Resonance – Attitudinal Attachment

• Strong positive attitude toward the brand
• Brand "love"
• Customers can become brand ambassadors

Brand Resonance - Sense of Community

• Identification with a brand community
• Feelings of belonging to other people associated with the brand

Company-based Brand Equity

• Differential effect of the brand on a company's balance sheet
• Brand equity = asset value of the brand (NPV) of cash flows related to the brand
• Calculates the net present value (NPV) of cash flows to determine a brand's worth

Employee Brand

• Rewards & benefits
• Fair payment
• Fair hours
• On-site services & extras
• Employee care

Employee Brand – Culture & Work Environment

• Diversity & inclusion
• Organizational culture
• Feedback for improvements
• Quality physical work environment

Employee Brand – Leadership & Development

• Flexibility
• Tailored career paths
• Performance management
• Quality of leadership
• Talent management
• Teamwork

Brand Equity Summary

• Brand equity measures the brand's value to an audience.
• Strong brand relationships predict higher brand value
• Brand equity is built over time through consistency and relevance
• Firms build brand equity for all their activities

Benefits of Brand Equity

• Greater customer loyalty
• Reduced harm from competitive actions
• Higher profit margins
• More inelastic responses to price increases
• More elastic responses to price decreases
• Increased marketing communication efficiency
• Increased possibility of successful brand extensions

Conclusion on Brand Equity and Business Performance

• Brand equity = company-based and customer-based concept
• Strong brands are exciting, motivating, and garner consumer attention
• Marketing/brand managers build and maintain brand image for brand equity as an asset

Keller's Criteria for Choosing Brand Elements

• Memorable
• Meaningful
• Likeable
• Transferable
• Adaptable
• Protectable
• Brand Names, URLs, Logos, Characters, Symbols, Slogans, Packaging & Signage

Brand Identity Prism

• Brand identification discussed in Europe in 1986
• Outward expression of a brand: name, trademark, communications, and visual appearance
• Differentiates a brand from competitors

Brand Identity vs. Brand Image

• Brand Identity: How a company wants a brand to be recognized and understood by customers
• Brand Image: How customers actually perceive and understand a brand
• Brand Position: The brand's distinct identity & value proposition communicated to a target audience

How To Build a Strong Brand

1. State core values/identity
2. Choose brand elements wisely (name, logo, character, slogan, jingle, package)
3. Implement a strong marketing strategy
4. Maintain consistent brand elements & value positions
5. Monitor brand progress
6. Audit all brands (new and old)
7. Ensure brand consistency & synergy
8. Leverage strong brands with extensions if core values are reinforced
9. Monitor brand health; measuring awareness, value position, loyalty, & associations (over time)

How to Signal Brand Images

• The company is the brand
• A character is the brand
• The product is the brand
• A person is the brand (ex. Elon Musk)

Creating Company/Brand Associations

• Company names should be matched to brand names
• Company image should be developed from society & community orientation
• Concern for customers
• Product/service quality
• Local vs. Global orientation

Example 2: Ben & Jerry's

• donates 7.5% profits to social causes
• markets "Rain Forest Crunch" products
• uses Brazilian nuts to promote environmental awareness
• uses low-income areas and employs homeless workers

Value Positioning

• Price, Quality, or Performance
• Relative quality, performance, or price

More-for-More Positioning

• Highest quality and price
• Example: Four Seasons hotels, Rolex watches, Mercedes-Benz

More-for-the-Same Positioning

• Offering similar quality at a lower price
• Example: Toyota Lexus

The Same-for-Less Positioning

• Offering the same products or services at a lower price
• Example: Walmart, Best Buy, PetSmart

Less-for-Much-Less Positioning

• Products with basic or low-quality features or benefits at a very low price
• Example: Motel 6, Holiday Inn, Ramada hotels

Segmentation and Targeting

• Divide the market into smaller segments
• Choose segments for market entry
• Value creation process for targeted customers
• Differentiating product offerings to create unique customer value
• Positioning products in the minds of target customers
• Market segmentation (geographic, demographic, behavioral, psychographic)

Brand Personality

• Set of human characteristics associated with a brand
• Measures:
  • Sincerity
  • Excitement
  • Competence
  • Sophistication
  • Ruggedness

Goals of Brand Personality

• Build long-term relationships with consumers via differentiated aspects.
• Brand personality that is difficult to copy.
• Create sustainable brand equity for the brand

Measurement of Brand Personality

• Use emotions and feelings (difficult to measure traditionally)
• Focus groups or scales

Balance Theory

• An attitude comprising 3 elements: a person, their perceptions of an attitude object, and another person using that object

Three Relationships

• User relation (attitude toward a product)
• Unit relation (product-model interaction)
• Sentiment relation (attitude toward another person)

Relations between Elements

• Should be consistent (balanced) for a state of equilibrium
• Unbalanced multiplies 3 signs of negative
• Balanced multiplies 3 signs of positive

Marketing Applications of Balance Theory

• Celebrity endorsements
• Brand associations that influence consumers

Sponsorships

• Brand partnerships for product visibility/recognition

Age and Brand Personality

• Newer brands often have younger personalities

Social Norms

• Informal, shared guides of behavior/attitudes (supported by social rewards)
• Types
  • Descriptive: what most people do
  • Injunctive: what one should do
• Implications
  • Use descriptive norms with thought processes
  • Support the idea of "right majority"
  • Use injunctive norms without thought processes (e.g., humor)
• WOM communication
• More reliable type of marketing
• Influence of 2/3 of sales
• Powerful in unfamiliar product categories
• Key takeaways:
  • Conform without noticing
  • Two kinds of social influence (informational and normative)
  • Public compliance and private acceptance
  • Six principles of influence

Different Ways of Identifying Profiles

• Geographic
• Demographic
• Behavioral
• Psychographic