Branding Chapter 1 PDF

PART I: OPENING PERSPECTIVES CHAPTER 1 BRANDS & BRAND MANAGEMENT OVERVIEW OF CHAPTER 1 LEARNING OBJECTIVES 1. What is a brand? 2. Why do brands matter? 3. Can anything be branded? 4. What are the strongest brands? 5. What are the main branding challenges? 6. What is the brand equity concept? B...

PART I: OPENING PERSPECTIVES CHAPTER 1 BRANDS & BRAND MANAGEMENT OVERVIEW OF CHAPTER 1 LEARNING OBJECTIVES 1. What is a brand? 2. Why do brands matter? 3. Can anything be branded? 4. What are the strongest brands? 5. What are the main branding challenges? 6. What is the brand equity concept? BRAND HISTORY ORIGIN OF BRANDS ▸ Derived from the Scandinavian word “brandr” ▸ The original concept of brand registration emerged from cattle brands in the USA BRAND HISTORY ORIGIN OF BRANDS ▸ Branding as we know it today started in the industrial revolution ▸ Emergence of mass markets and the rise of the department store BRAND HISTORY ORIGIN OF DEPARTMENT STORES IN SERIES BRAND HISTORY ORIGIN OF BRANDS ▸ Early stages of 20th Century ▸ Introduction of leisure time ▸ Rise of media consumption (newspaper, radio) ▸ Consolidation of marketing, advertising and PR BRAND HISTORY SOME MILESTONES IN BRAND HISTORY ▸ 1924 - General Motors ▸ Understood that people want choice ▸ “A car for every purse and purpose” ▸ 1924 - Procter & Gamble ▸ Market Research department ▸ Research & Development department ▸ 1933 - Ford ▸ Created an style department BRAND HISTORY P&G - HOME OF BRAND MANAGEMENT ▸ The concept of brand management was introduced in 1931 by Neil McElroy ▸ In the 60s over 80% of large manufactures of consumer goods in the US introduced brand managers BRAND HISTORY UBIQUITY OF BRANDS ▸ 1950s: brands became very common helped by an economic boom and the advent of TV advertising ▸ Mid-1990s: brands are everywhere and crossed into new areas like politics and charity ▸ The amount of product choice confuses consumers A strong brand is a means to stand out between highly similar products 1. WHAT IS A BRAND? DEFINITION BRAND ELEMENTS BRAND VS PRODUCTS 1. WHAT IS A BRAND? A BRAND IS A “NAME, TERM, SIGN, SYMBOL OR DESIGN INTENDED TO IDENTIFY THE GOODS AND SERVICES OF ONE SELLER AND TO DIFFERENTIATE THEM FROM THOSE OF THE COMPETITION.” Definition of AMA brand with a small b 1. WHAT IS A BRAND? A BRAND IS “THE PROMISE, THE BIG IDEA AND THE EXPECTATIONS THAT RESIDE IN EACH CUSTOMERS MIND ABOUT A PRODUCT, SERVICE OR COMPANY.” Definition by Alina Wheeler Brand with a capital B 1. WHAT IS A BRAND? BRAND ELEMENTS ‣ Different components that identifies and differentiates a brand ‣ Name, logo, symbol, package design, etc. ‣ Can be based on people, places, things, and abstract images 1. WHAT IS A BRAND? ANYTHING WE CAN OFFER TO A MARKET FOR ATTENTION, ACQUISITION, USE OR CONSUMPTION THAT SATISFIES A NEED OR WANT. Definition of Product 1. WHAT IS A BRAND? 3 LEVELS OF PRODUCT DIFFERENTIATION 1. WHAT IS A BRAND? COCA-COLA’S “NEW COKE” BRANDING LESSON 1. WHAT IS A BRAND? COCA-COLA’S BRANDING LESSON ▸ 1985: Coca Cola introduces the New Coke ▸ 190’000 taste tests ▸ Reception was very negative ▸ Need to understand the intangible associations to the brand 1. WHAT IS A BRAND? BRANDS VS PRODUCTS 1. COMPANIES MAKE PRODUCTS AND CONSUMERS MAKE BRANDS 2. PRODUCTS CAN BE COPIED BUT BRANDS ARE UNIQUE 3. PRODUCTS BECOME OBSOLETE BUT BRANDS ARE TIMELESS 4. PRODUCTS ARE INSTANTLY MEANINGFUL BUT BRANDS BECOME MEANINGFUL OVER TIME 1. WHAT IS A BRAND? SUM UP: THROUGH BRANDING 1. WHAT IS A BRAND? BRAND IS MORE THAN A PRODUCT Philips NGS 19 euros 19 euros “IF THIS COMPANY WERE TO SPLIT UP, I WOULD GIVE YOU THE PROPERTY, PLANT AND EQUIPMENT AND I WOULD TAKE THE BRANDS, AND I WOULD FARE BETTER THAN YOU” John Stuart CEO from 1922-1956 2. WHY DO BRANDS MATTER? FUNCTIONS PROVIDED TO CONSUMERS 1. Identify the maker of the product 2. Simplifies product decisions ‣ Lower the internal and external search costs for products ‣ Signal information about product attributes (especially for experience / credence goods) 3. Reduces risk 4. Symbolic value 2. WHY DO BRANDS MATTER? FUNCTIONS PROVIDED TO COMPANIES 1. Simplify product handling and tracing 2. Offer the firm legal protection 3. Provides security of demand and creates barriers of entry for competition 4. Can provide competitive advantage 5. Financial value: value of the brand, higher profits, brand expansions 2. WHY DO BRANDS MATTER? COMPETING AGAINST GIANTS 3. CAN ANYTHING BE BRANDED? MARKETERS CAN BENEFIT FROM BRANDING WHENEVER CONSUMERS ARE IN A CHOICE SITUATION 3. CAN ANYTHING BE BRANDED? BRANDING COMMODITIES 3. CAN ANYTHING BE BRANDED? PLACE BRANDING ▸ Some notable success stories VISIT DUBAI (2021) 3. CAN ANYTHING BE BRANDED? IN CONCLUSION ▸Branding is universal and pervasive ▸Applicable to tangible and intangible offerings ▸Companies reap financial benefits from positive brand images DO YOU THINK OF YOURSELF AS A BRAND? WHAT DO YOU DO TO “BRAND” YOURSELF? Discussion Question 1. WHAT ARE YOUR THOUGHTS ON THE BONFIRE EXPERIMENT? 2. EXPLAIN WHICH OF HIS VIEWPOINTS YOU SUPPORT AND WHICH YOU REFUTE AND WHY. 3. HOW IS YOUR OWN RELATIONSHIP WITH BRANDS? Diary Exercise 2 • • Due for today at 19.15 Minimum 200 words in total 4. WHAT ARE THE STRONGEST BRANDS? *Source: Kantar Brandz, 2023 most valuable global brands 4. WHAT ARE THE STRONGEST BRANDS? INTERBRAND BEST GLOBAL BRANDS 2022 *Source: Interbrand Reports are on ADI APPLE/GOOGLE/MICROSOFT/AMAZON/ MCDONALD’S/ VISA/TENCENT/LOUIS VUITTON/MASTERCARD/COCA-COLA/ ARAMCO/FACEBOOK/ORACLE/ALIBABA/ AT&T/ VERIZON/IBM/MOUTAI/HERMÈS/ THE HOME DEPOT/NIKE/ACCENTURE/ UPS/NVIDIA/TESLA/TELEKOM/T-MOBILE/ STARBUCKS/ WALMART/INSTAGRAM/ MARLBORO/CHANEL/QUALCOMM/ COSTCO/YOUTUBE/ADOBE/NETFLIX/ LINKEDIN/CISCO/DISNEY/XFINITY/ TIKTOK/TATA CONSULTANCY SERVICES/ TEXAS INSTRUMENTS/INTUIT/L’ORÉAL PARIS/SPECTRUM/AMERICAN EXPRESS/ SAP/SALESFORCE/AMD/RBC/INTEL/ WELLS FARGO/SAMSUNG/MEITUAN/ HDFC BANK/UNITEDHEALTHCARE/ HUAWEI/HAIER/XBOX/PAYPAL/TOYOTA/ VODAFONE/JD/GUCCI/INFOSYS/TD/ J.P. MORGAN/ICBC/SHEIN/MERCEDESBENZ/MERCADO LIBRE/CHINA MOBILE/ BCA/CHASE/AIRTEL/SIEMENS/COMMBANK/ EXXONMOBIL/KFC/NONGFU SPRING/ BANK OF AMERICA/LOWE’S/NTT/PING AN/ IKEA/BMW/BUDWEISER/LANCÔME/AIA/ PEPSI/DHL/RED BULL/ZARA/COLGATE/ UBER/FEDEX/SHELL/SONY/PAMPERS 4. WHAT ARE THE STRONGEST BRANDS? BRAND LEADERSHIP IS NOT A GIVEN ▸ Lack of innovation has been the downfall of many brands 4. WHAT ARE THE STRONGEST BRANDS? SOME KEYS TO ENDURING BRAND LEADERSHIP ▸ Vision of the mass market ▸ Relentless innovation ▸ Financial commitment / managerial persistence ▸ Asset leverage 5. WHAT ARE SOME OF THE MAIN BRANDING CHALLENGES? More challenges? DISCUSSION QUESTION ▸ In which product categories are you more loyal to brands? ▸ In which product categories do you rely more on private labels? ▸ Why? Brand Loyalty VS Private Labels 6. WHAT IS THE BRAND EQUITY CONCEPT? BRAND EQUITY: THE SUM OF THE BRAND VALUE ▸ Concept introduced in the 80s to actually try to measure the value of brands (common denominator) ▸ Positive side: signals the importance of brand management ▸ Negative side: no consensus on how to measure brand equity 6. WHAT IS THE BRAND EQUITY CONCEPT? BRAND EQUITY: THE SUM OF THE BRAND VALUE ▸ Most marketers agree that brand equity consist of the marketing effects uniquely associated to a brand ▸ the difference in outcome between a product that is branded and one that is not. ▸ Brands give “added value” 6. WHAT IS THE STRATEGIC BRAND MANAGEMENT PROCESS? STEPS OF THE SBM PROCESS Diary Exercise 3: 1. Explain the following critics on corporations & brands that lead to the “no logo” movement: No space No choice No jobs DOCUMENTARY 2. Do you agree or disagree with the critics of Naomi Klein? Please explain your own perspective. Due for today at 19:15 Minimum 200 words in total