Brand Management Part 1a PDF

Part 1a: Introduction to Brand Management 20 Marketing Studies I  Q: What is the role of brands for consumers? Marketing Studies I 21  https://app.wooclap.com/BRANDPROS ▪ What is the role...

Part 1a: Introduction to Brand Management 20 Marketing Studies I  Q: What is the role of brands for consumers? Marketing Studies I 21  https://app.wooclap.com/BRANDPROS ▪ What is the role of brands for consumers? ▪ Which of the following scenarios best illustrates the role of branding for customers? b) Role of Brands: For Consumers? …informs → provides an identity product’s purpose, benefits, features, and quality …simplifies choices → reduce effort to make decisions customers know what to expect …increases value → emotional, functional, or even social customers are willing to pay more …creates group identity → create bonds feel part of a community or a social group …guarantees / reduces risk → trust reputable brands automatically provide a level of reliability and quality Marketing Studies I 23  Brands: Why? How many brand encounters do consumers have per day on average? 24 Marketing Studies I  Breaking through the Clutter A Consumer is exposed to 300 to 600 messages per day on average (S)He effectively perceives between 30 and 80 Less than 10 messages will be memorized per day Source: Lendrevie et al., (2008) 25 Marketing Studies I Q: Who can identify the McDonald‘s logo? 26 Marketing Studies I Marketing Studies I https://www.youtube.com/watch?v=9_XWp5fnXKc WHY Brands ?  Q: Why are companies using brands? Marketing Studies I 28  https://app.wooclap.com/BRANDPROS ▪ Why are companies using brands? ▪ Which of the following is NOT a strategic reason companies invest in branding? Select 3 options b)  Brands: Why? „If you don‘t brand your business, someone else will – and take your customers“ (Robert Faletra) 30 Marketing Studies I  Q: How old is the concept of http://www.claudemariottini.com/blog/uploaded_images/oil-lamps-540x380-717857.jpg branding? Branding already used in the stone age, when hunters used weapons of a specific brand Other traces of branding found in Chinese porcelain, pottery jars from Greece and Rome, goods from India dating back to 1300 BC Ancient Oil Lamps found in Modena, ~43 BC Source: http://www.romanhideout.com/News/2008/20081127.asp Marketing Studies I 31 The Emergence of National Manufacturer Brands ▪ Branding as a result of mass marketing The oldest documented use of the Moon and Stars in P&G’s Archives this crude rendering on the price list from the late 1860’s The Moon and Stars had been refined to this point by 1882, and registered in the U.S. Patent Office By the late 1890’s, the trademark was still basically the same but displayed some of the decorations typical of the turn-of-the-century. In 1930, a sculptor was commissioned by P&G to refine the Moon and Stars trademark In 1991, the Moon and Stars trademark continued to evolve, with minor refinements to simplify its look Q: Who can see the logo? 32 Marketing Studies I  Role of Brands: For Business? …positions → build identity …differentiates → creates competitive advantage …increases the margin → justify higher prices …creates loyalty → builds bonds and connections …protects → legal protection (intellectual property rights) registers trademarks, patents, copyrights etc. Marketing Studies I 33 Brands: Why? For a Customer For a Business …informs …positions …simplifies …differentiates …increases value …increases the margin …creates group identity …creates loyalty …guarantees …protects 34 Marketing Studies I  Q: What is the difference between a product and a brand? Marketing Studies I 35 ▪What is a product? b) What is a Product? Anything we can offer to a market for attention, acquisition, use, or consumption that might satisfy a need or want. Physical Ideas & Good Causes Service Place PRODUCT Retail Outlet Sports People Organi- Source: Keller (2008) zation 37 Marketing Studies I  Participants were not able to recognize their usual beers in blind tasting whereas their loyalty toward their brands What is a Brand? increased with the presence of the labels In the labeled ratings, aroma, body, foam, and strength ▪ Blind Beer Test Experiment characteristics were greatly improved compared to the unlabeled phase ratings Conclusion: Labels can affect our taste perception of a beer A. DRINKER KNOWS WHAT HE IS B. DRINKER DOES NOT KNOW DRINKING WHAT HE IS DRINKING What influence would brand identification have on Source: Allison & Uhl (1964), JMR consumers’ evaluations 38 of specified beer characteristics? Marketing Studies I What is a Brand? “A brand is more than a product, because it can have dimensions that differentiate it in some way from other products designed to satisfy the same need.” Kevin Lane Keller (2008) Marketing Studies I 39 What is a Brand? ❑ Sign of recognition ❑ Identification ❑ Quality ❑ Risk & Search Cost Reducer ❑ Physical manifestation ❑ Brand sign vs. brand name ❑ Colors, typography ❑ Psychological product ❑ Symbolic device ❑ Image in the mind of people ❑ A set of values, shared by people 40 Marketing Studies I  Types of Brands National Retailer or Manufacturer Generics Private Brands Brands Also known as producer Known as private brand, brand, this is owned and store brand, dealer brand, initiated by a national A product that does not or private label, this is manufacturer or by a carry a company identity developed and owned by company that provides wholesalers and retailers. services 41 Marketing Studies I  https://app.wooclap.com/BRANDPROS ▪Which ofa)these is NOT a brand? What is a Brand? “Name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of seller and to differentiate them Brand Elements from those of competition.” (a brand’s physical manifestation) American Marketing Association “A brand is more than a product, because it can have dimensions that differentiate it in some way from other products designed to satisfy the same need.” Kevin Lane Keller (2008) 43 Marketing Studies I Brand Elements Brand Names & URLs Packaging & Logos & Signage Symbols Brand Elements Slogans and Characters Jingles Help marketers to increase brand awareness and create unique associations with a brand Marketing Studies I 44 Summary Why branding? – Customer vs. Company What is a brand? – Sign of Recogniton – Physical Manifestation – Psychological Product How to build a brand? – Brand Elements 45 Marketing Studies I  Part 1b: Why Branding? From Customer to Financial Value 46 Marketing Studies I  https://app.wooclap.com/BRANDPROS Why branding? Q: Which brand do you prefer? 47 Marketing Studies I  Blind Cola Taste Experiment vs ? OPEN BLIND Prefer Pepsi 23% 51% Prefer Coke 65% 44% Equal/Can‘t say 12% 5% Source: Woolfolk, Castellan, & Brooks, 1983 48 Marketing Studies I 49 Which one is your favourite? Marketing Studies I  Intro: Brand Equity 50 Marketing Studies I  Brand Equity Brand Brand Brand Image Strength Valuation Brand Equity Causal Customer Orientation Firm Orientation 51 Marketing Studies I  Financial Brand Equity Financial BRAND EQUITY is the monetary value of a brand in terms of net revenues the brand is expected to generate over time across all country markets. It represents the financial impact that a brand’s strength and reputation have on the company’s bottom line. 52 Marketing Studies I  Financial Brand Equity Calculation According to Interbrand Role of Brand: Brand Strength: Ability to Comparison of brand to secure the delivery of non-branded product expected future earnings The percentage of the brand’s ability to create loyalty, Balance sheet purchase decision attract customers, and sustain attributable to the brand financial performance over time Primary research, expert Score from 0 to 100 panel, historical role of Benchmarked within industry Source: Interbrand (2011) brand 53 | Marketing Studies I  https://app.wooclap.com/BRANDPROS ▪ Who are the world’s most valuable brands? a)  The World’s Most Valuable Brands 55 Source: Interbrand (2023) Marketing Studies I Marketing Studies I https://www.youtube.com/watch?v=9_XWp5fnXKc Interbrand Ranking  Q: How to become the world’s most valuable brand? Marketing Studies I 57  Brand Equity Brand Brand Brand Image Strength Valuation Brand Equity Causal Customer Orientation Firm Orientation 58 Marketing Studies I  Customer-Based Brand Equity Customer BRAND EQUITY focuses on the differential effect of a brand on consumer response. It contains behavioral (e.g., loyalty) and image (e.g., affect and cognition) components. It focuses on how consumers think and feel about the brand, and how this perception impacts their buying behavior. 59 Marketing Studies I Customer-Based According to Keller (2008) Brand Equity Stages of Brand Branding Objectives Development relationships Relationships intensive, active (what about you relationships consumer Consumer and me?) brand Brand resonance Resonance positive, responses Responses accessible (what about you?) responses consumer Consumer consumer Consumer judgments feelings Judgments Feelings strong, favorable meaning Meaning & unique brand brand Brand brand Brand associations (what are you?) performance Performance imagery Imagery identity deep, broad Identity brand awareness brand salience Brand Salience (who are you?) Source: Keller (2008) 60 | Marketing Studies I  Brand Salience consumer Consumer brand Brand resonance Resonance consumer Consumer consumer Consumer judgments Judgments feelings Feelings Brand awareness/salience is related to the strength of the brand in Brand Performance Brand Imagery consumer’s memory brand salience Depth of brand awareness = likelihood that a brand element comes to mind – Ease of recognition and recall – Strength and clarity of category membership Source: Keller (2008) 61 Marketing Studies I  https://app.wooclap.com/BRANDPROS ▪ Do you recognize the brand? a) b)  Q: Do You Recognize the Brand? Brand recognition: consumer’s ability to correctly discriminate the brand as having been seen or heard before 63 Marketing Studies I  Brand Recall Top of ✓ Which orange-juice brand Mind comes to your mind first? Unaided ✓ Which orange juice Recall brands do you know? ✓ Which brands out of the Aided Recall following do you know? Unaware ✓ I don‘t know that brand Brand recall: consumer’s ability to retrieve the brand form memory when given the product category, the needs fulfilled by the category, a purchase or consumption situation 64 Marketing Studies I  Exercise: Retail Alphabet Game One-Letter Logos (A-Z) Quiz (sporcle.com) 65 Marketing Studies I Exercise: Retail Alphabet Game ▪ Team up with a 2nd person ▪ Go to: https://www.sporcle.com/games/eon/one-letter-logos ▪ Take 5 minutes to play the game ▪ After 5 mins, discuss in your team: - How many trademarks could you identify? - What distinguishes these trademarks from the others you could not identify? 66 Marketing Studies I  Exercise: Retail Alphabet Game One-Letter Logos (A-Z) Quiz (sporcle.com) 67 Marketing Studies I  Brand Performance consumer Consumer brand Brand resonance Resonance consumer Consumer consumer Consumer Performance: “The way in which a product judgments Judgments feelings Feelings or service attempts to meet customer’s brand Brand performance Performance Brand Imagery functional needs” brand salience 1. Beliefs about ingredients & features 2. Reliability (consistency performance over time & from purchase to purchase), durability (expected economic life), serviceability (perceived ease of service when repair needed) 3. Service effectiveness (how completely the brand satisfies service requirements) efficiency (manner of service delivery: speed, responsiveness) empathy (extent service providers seen as trusting, caring and having customers’ interests in mind) 4. Style & design (evaluation size, shape, materials, colour, sound, smell…) 5. Pricing policy (price segment,price volatility) Source: Keller (2008) 68 Marketing Studies I Marketing Studies I https://www.youtube.com/watch?app=desktop&v=7ug8tHiR98w Coca Cola’s Secret Formula  Brand Imagery consumer Consumer brand Brand resonance Resonance consumer Consumer consumer Consumer judgments Judgments feelings Feelings Imagery: “The way in which a product or service attempts to meet customer’s Brand Performance Brand Imagery psychological or social needs” brand salience 1. User profiles (perceived type of person or organization that uses the brand) 2. Personality and values 3. Purchase and usage situations (under what conditions brand typically bought & used?) 4. History, heritage and experiences (links with events in (personal) brand history e.g. colour, country-of-origin, competitive challenge) Source: Keller (2008) 70 Marketing Studies I  Q: What type of car do they drive? John Peter 71 Marketing Studies I  Consumer Judgements consumer Consumer brand Brand resonance Resonance consumer Consumer consumer Consumer judgments Judgments feelings Feelings Judgements: “Customers’ personal opinions and Brand Brand evaluations of the brand, based on the different Performance Imagery performance and imagery associations.” Rational brand salience Responses 1. Brand quality 2. Brand credibility (the extent to which the brand is seen as credible in terms of perceived expertise (competent, innovative, market leader…), trustworthiness (dependable, keeping customer interests in mind) and likeability (fun, interesting, worth spending time with) 3. Brand consideration (likelihood that customers will include it in their choice set) 4. Brand superiority (extent to which customers view the brand as unique and better than others) Source: Keller (2008) 72 Marketing Studies I  Consumer Feelings consumer Consumer brand Brand resonance Resonance consumer Consumer consumer Consumer Feelings: “Emotional responses and reactions with respect judgments Judgments feelings Feelings to a brand … How does the brand affect customers’ Brand Performance Brand Imagery feelings about themselves and their relationships Emotional with others?” brand salience Responses 1. Warmth – soothing feelings (calm, peacefulness, sentimental, warm-warmhearted, affectionate) 2. Fun – upbeat feelings (amused, light-hearted, joyous, playful, cheerful) 3. Excitement – different upbeat feelings (energized, ‘experiencing sth. special’, cool sexy) 4. Security – safety, comfort, self-assurance 5. Social approval – positive feelings about the reactions of others 6. Self-respect –consumers feel better about themselves (pride, accomplishment, fulfillment) Source: Keller (2008) 73 Marketing Studies I  Consumer Resonance consumer Consumer brand Brand resonance Resonance Resonance: “extent to which customers consumer Consumer judgments Judgments consumer Consumer feelings Feelings feel ‘in sync’ with the brand.” Brand Brand Performance Imagery 1. Behavioral loyalty brand salience 2. Attitudinal attachment 3. Sense of community 4. Active engagement (ambassadorship, evangelism) Source: Keller (2008) 74 Marketing Studies I Exercise: Brand Equity of IKEA ▪ Team up with a 2nd person ▪ Imagine you are the newly appointed brand manager of IKEA ▪ How would you improve brand equity? - Formulate at least one question and/or measure for each element in the pyramid ▪ You have 10 minutes for the exercise 75 Marketing Studies I  Exercise: IKEA How does IKEA build brand equity? Give at least 1 example for each Branding Objectives element of the pyramid! intensive, active relationships positive, accessible responses strong, favorable & unique brand associations deep, broad brand awareness 76 Marketing Studies I