Brand Elements & Products PDF

Brand Elements The different components of a brand that identify and differentiate it are called brand elements. Some examples include: Brand name Logos and symbols Package design URLs Colors Music Characters Slogans and jingles 1 Brands vs. Products Five le...

Brand Elements The different components of a brand that identify and differentiate it are called brand elements. Some examples include: Brand name Logos and symbols Package design URLs Colors Music Characters Slogans and jingles 1 Brands vs. Products Five levels of meaning for a product: 1. Core benefit level Fundamental need or want that consumers satisfy by consuming the product or service 2. Generic product level Basic version of the product containing only those attributes or characteristics absolutely necessary for its functions, but with no distinguishing features 3. Expected product level Set of attributes or characteristics that buyers normally expect and agree to when they purchase a product. 4. Augmented product level Additional product attributes, benefits, or related services that distinguish the product from competitors. 5. Potential product level All the augmentations and transformations that a product might ultimately undergo in the future. 2  Brands Versus Products A product is anything we can offer to a market for attention, acquisition, use, or consumption: That might satisfy a need or want Physical good like a cereal, tennis racquet, or car A brand is more than a product since it can have dimensions that differentiate it from other products  Brands vs. Products Differences between a product and a brand may be: Rational and tangible: Related to product performance of a brand Or, more symbolic, emotional and intangible: Related to what the brand represents 4 Why do brands matter? What functions do they perform that make them so valuable to marketers? Consumers Firms Consumers Functions provided by brands to consumers: Identify the source or maker of the product Simplify product decisions Reduce the risks in product decisions Lower the search costs for products both internally (how much they think about it) and externally (how much time they spend looking around) Helps set reasonable expectations about brand quality Brands can reduce the risks in product decisions Functional Risk Product does not perform up to expectations Product poses a threat to the physical well-being or Physical Risk health of the user or others Financial Risk Product is not worth the price paid Social Risk Product results in embarrassment from others Psychological Risk Product affects the mental well-being of the user Failure of the product results in an opportunity cost Time Risk of finding another satisfactory product Firms Functions provided by brands to firms: Simplify product handling and tracing Help organizing inventory and accounting records Offer the firm legal protection for unique features or aspects of the product Provide predictability and security of demand for the firm and creates barriers of entry for competitors Provide a powerful means to secure competitive advantage Can Anything Be Branded? Physical goods (consumer goods) have a long history with branding. To brand a product, it is necessary to teach consumers “who” the product is: Giving it a name and using other brand elements to help identify it What the product does and why consumers should care Marketers must give consumers a label for the product and provide meaning for the brand Marketers can benefit from branding whenever consumers are in a choice situation The key to branding is that consumers perceive differences among brands in a product category Services Branding a service can be an effective way to signal to consumers that a firm has designed a particular service offering that is special and deserving of its name: Google Amazon United Parcel Service (UPS) Disney Alaska Airlines Ritz-Carlton Fidelity Retailers and Distributors For retailers and other channel members, brands provide important functions: Can generate consumer interest, patronage, and loyalty Create an image and establish positioning within an industry Yield higher price margins, increased sales volumes, and greater profits vs. Digital Brands Some of the strongest brands in recent years have been born online: Amazon Google Airbnb Brand building has become more important in recent years to online marketers: It is critical to create unique aspects of the brand Brand needs to perform satisfactorily as well on some dimension that is important to consumers, such as customer service People and Organizations A product category can be a person or an organization: Naming of this branding is usually straightforward Usually is accompanied by well-defined images that are easily understood by consumers The key to a person or organization as a brand is that people outside your industry know who you are and recognize your skills, talents, and attitude: Lady Gaga The American Red Cross Sierra Club Sports, Arts, and Entertainment Sports, arts, and entertainment industries all utilize branding in their marketing effort: Sports marketing has become highly sophisticated Branding plays, for example, has become an especially valuable function in the arts Movies have become famous for their marketing and branding: For years, some of the most valuable movie franchises have featured recurring characters and ongoing stories—a classic application of branding  Geographic Locations What has contributed to the rise in place marketing? Increased mobility of people Increased mobility of businesses Growth in tourism Cities, states, regions, and countries actively promote through advertising, direct mail, and other tools What are the Strongest Brands? Brands that are the “strongest” are the brands that are: Best known Most highly regarded Maintaining brand relevance and differentiation are important to the success of a brand Interbrand’s “Best Global Brands” report tracks brand ranking every year.  Defining Customer-Based Brand Equity CBBE: Approaches brand equity from the perspective of the consumer Stresses that the power of a brand lies in what resides in the minds and hearts of customers Differential effect that brand knowledge has on consumer response to the marketing of that brand – can be positive or negative Marketing Advantages of Strong Brands o Improved perceptions of product performance o Greater loyalty o Less vulnerability to competitive marketing actions o Less vulnerability to marketing crises o Larger margins o More inelastic consumer response to price increases o Greater trade cooperation and support o Increased marketing communication effectiveness o Possible licensing opportunities o Additional brand extension opportunities  Brand Equity as a Bridge Customer knowledge drives the differences that manifest themselves in terms of brand equity: Provides marketers with a vital strategic bridge from their past to their future The brand knowledge that marketers create over time dictates appropriate and inappropriate future directions for the brand  Making a Brand Strong: Brand Knowledge The associative network memory model: Views memory as a network of nodes and connecting links: Nodes—Represent stored information or concepts Links—Represent the strength of association between the nodes Brand associations are informational nodes linked to the brand node in memory Figure 2-2: Possible Associations with the Apple Brand Name  Sources of Brand Equity Brand Awareness Brand Image  Brand Awareness Brand awareness consists of brand recognition and brand recall performance: Brand recognition: Consumer’s ability to confirm prior exposure to the brand when given the brand as a cue Brand recall: Consumers’ ability to retrieve the brand from memory when given: The product category The needs fulfilled by the category, or A purchase or usage situation as a cue vs.  Brand Awareness Anything that causes consumers to experience one of a brand’s elements can increase familiarity and awareness of that brand element: Name, symbol, logo, character, packaging, or slogan, including advertising and promotion, sponsorship and event marketing, publicity and public relations, and outdoor advertising Repetition increases recognizability: But improving brand recall also requires linkages in memory to product aspects  Brand Image Once a sufficient level of brand awareness is created: Marketers can put more emphasis on crafting a brand image Creating a positive brand image: Takes marketing programs that link strong, favorable, and unique associations to the brand in memory Brand associations may be either brand attributes or benefits  Brand Image Strength of Brand Associations The more deeply a person thinks about product information and relates it to existing brand knowledge, the stronger the resulting brand association will be Favorability of Brand Associations Is higher when a brand possesses relevant attributes and benefits that satisfy consumer needs and wants Uniqueness of Brand Associations “Unique selling proposition” of the product Provides brands with sustainable competitive advantage  Basic Concepts Brand positioning: Act of designing the company’s offer and image so that it occupies a distinct and valued place in the target customers’ minds Finding the proper “location” in the minds of consumers or market segment Allows consumers to think about a product or service in the “right” perspective  Target Market Market segmentation: Divides the market into distinct groups of consumers who have similar needs and consumer behavior Involves identifying segmentation bases and criteria: Identifiability Size Accessibility Responsiveness Consumer Segmentation Bases Behavioral User status Psychographic Usage rate Values, opinions, and attitudes Activities and lifestyle Usage occasion Brand loyalty Benefits sought Demographic Income Age Geographic International Sex Regional Race Family  Points of Parity and Points of Difference A marketer must arrive at the proper positioning: This requires establishing the correct points-of-difference and points-of-parity associations: Points-of-difference (PODs): Attributes or benefits that consumers strongly associate with a brand and believe they could not find in a competitive brand Points-of-parity associations (POPs): Attributes or associations that are not unique to a brand – they are shared with competitive brands  Nature of Competition A competitive analysis considers an array of factors: Resources, capabilities, and likely intentions of various other firms This competitive analysis helps marketers to choose markets for their own products or services When choosing a market, marketers must consider: Indirect competition Even if a brand does not face direct competition in its product category, and thus does not share performance related attributes with other brands, it can still share more abstract associations and face indirect competition in a more broadly defined product category. For example, a luxury good might compete with a vacation. Multiple frames reference Result of broader category competition or the intended future growth of a brand (ex. QFC competes with other grocery stores, but also with restaurants for selling their prepared foods)  Positioning Considerations Defining and communicating the competitive frame of reference – who are you competing against? What are the Points-of-Difference? What are the Points-of-Parity? Straddle Positions? (more than one frame of reference) Updating positioning – positioning should not be updated frequently – can be confusing to consumers Be mindful of the past with an eye on the future Figure 3-1: Brand Resonance Pyramid Figure 3-2: Subdimensions of Brand Building Blocks  Brand Salience Achieving the right brand identity means creating brand salience with customers Brand salience: Measures various aspects of the awareness of the brand How easily and often the brand is evoked under various situations or circumstances  Brand Salience Strategic implications: Brand needs to be top-of-mind and have sufficient mind share: But also, must do so at the right times and places  Brand Performance Brand Performance: Describes how well the product or service: Meets customers’ functional needs Rates on objective assessments of quality Satisfies utilitarian, aesthetic, and economic customer needs and wants in the product or service category  Brand Imagery A main type of brand meaning is brand imagery Brand imagery depends on the extrinsic properties of a product or service Many kinds of intangibles can be linked to a brand; the four main ones are: User profiles Purchase and usage situations Personality and values History, heritage, and user experiences  Brand Imagery Brand personality and values: Through consumer experience or marketing activities, brands may take on personality traits or human values: A person Appear to be modern or old-fashioned, for example Five dimensions of brand personality: Sincerity Excitement Competence Sophistication Ruggedness  Brand Judgments Customers’ personal opinions about and evaluations of a brand: Brand quality: Defined by specific attributes and benefits of a brand Consumers can hold a host of attitudes toward a brand: Perceived quality is the most important Brand credibility: Judgments about the company or organization behind the brand  Brand Feelings Brand Feelings: Customers’ emotional responses and reactions to a brand Brand feelings relate to the social currency evoked by the brand Feelings can be: Experiential and immediate Private and enduring  Brand Feelings Six important types of brand-building feelings: 1. Warmth Soothing feelings that make consumers feel a sense of calm or peacefulness 2. Fun Upbeat feelings that make consumers feel amused, lighthearted, joyous, playful, and cheerful 3. Excitement Ability of the brand to make consumers feel energized and experience something special. 4. Security Ability of a brand to produce a feeling of safety, comfort, and self- assurance 5. Social approval Gives consumers a belief that others look favorably on their appearance and behavior 6. Self-respect Brand makes consumers feel better about themselves  Brand Resonance Brand Resonance: Ultimate relationship and level of identification that a customer has with a brand: Extent to which customers feel in sync with the brand Four categories of brand resonance: Behavioral loyalty Attitudinal attachment Sense of community Active engagement  The Brand Value Chain Structured approach to: Assessing the sources and outcomes of brand equity and how marketing activities can enhance brand value Figure 3-5: Brand Value Chain Criteria for Choosing Brand Elements Memorability Meaningfulness Likability Transferability Adaptability Protectability Figure 4-1: Criteria for Choosing Brand Elements 1. Memorability 2. Meaningfulness Easily recognized Descriptive Easily recalled Persuasive 3. Likability Fun and interesting Rich visual and verbal imagery Aesthetically pleasing Figure 4-1: Criteria for Choosing Brand Elements 4. Transferability Within and across product categories Across geographic boundaries and cultures 6. Protectability 5. Adaptability Legally Flexible Competitively Updatable  Brand Names The brand name is fundamentally important: Often captures the central theme or key associations of a product in a compact, economical fashion Most difficult element for marketers to change: Closely tied to the product in the minds of consumers Figure 4-3: Brand Name Taxonomy Descriptive Sleep Inn Evocative Quicken Loans Personality Snapple Synthetic Verizon Founder Dyson  Brand Names Brand awareness: Simple and easy to pronounce or spell Familiar Meaningful Brand associations: Implicit and explicit meanings of a name are important Brand names can reinforce an important attribute or benefit associated that makes up its product positioning  URLs URLs (uniform resource locators) specify locations of pages on the Web: Commonly referred to as domain names Owner of a URL must register and pay for the name Protects a brand from unauthorized use in other domain names Cybersquatting- Registering, trafficking in, or using a domain name with bad-faith to profit from the goodwill of a trademark belonging to someone else  Logos and Symbols Logos: Visual elements play a critical role in building brand equity and brand awareness: Indicate origin, ownership, or association Range from corporate names or trademarks (word marks with text only) written in a distinctive form, to abstract designs Symbols: Nonword mark logos  Characters Special type of brand symbol: One that takes on human or real-life characteristics Introduced through advertising: Can play a central role in ad campaigns and package designs  Slogans Short phrases that communicate descriptive or persuasive information about the brand Function as useful “hooks” or “handles” to help consumers grasp the meaning of a brand  Jingles Musical messages written around the brand Catchy hooks and choruses: Become permanently registered in the minds of listeners Enhance brand awareness by repeating the brand name in clever and amusing ways  Packaging Activity of designing and producing containers or wrappers From the perspective of both the firm and consumers, packaging must: Identify the brand Convey descriptive and persuasive information Facilitate product transportation and protection Assist in at-home storage  Putting It All Together Each brand element can play a different role in building brand equity: Marketers “mix and match” to maximize brand equity Brand identity: Entire set of brand elements Contribution of all brand elements to awareness and image  Changes in the marketing environment ▪Rapid technological developments ▪Greater customer empowerment ▪Fragmentation of traditional media ▪Growth of interactive and mobile marketing options ▪Channel transformation and disintermediation ▪Globalization and growth of developing markets ▪Heightened environmental and social concerns Capabilities of the New Economy Consumers ▪ Can wield substantially more customer power. ▪ Can purchase a greater variety of available goods and services. ▪ Can obtain a great amount of information about practically anything. ▪ Can more easily interact with marketers in placing and receiving orders. ▪ Can interact with other consumers and compare notes on products and services. Capabilities of the New Economy Companies ▪ Can collect fuller and richer information about their markets, customers, prospects, and competitors. ▪ Can facilitate two-way communication with their customers ▪ Can customize their offerings and services to individual customers.  Personalizing Marketing Rapid expansion of the internet and continued fragmentation of mass media have brought the need for personalized marketing. Modern economy celebrates the power of the individual consumer Marketers have embraced concepts such as experiential marketing and relationship marketing  Relationship Marketing Experiential marketing Promotes a product by communicating features and benefits and connecting it with unique and interesting consumer experiences Relationship marketing Transcend an actual product or service to create stronger bonds with consumer Maximize brand resonance  Relationship Marketing Mass customization Making products to fit customers’ exact specifications Digital-age technology enables customized products Permission marketing The practice of marketing to consumers only after gaining their express permission Five steps to effective permission marketing 1. Situational permission: Prospects permit the company to access their personal information. 2. Brand trust: Prospects allow the company to provide for their needs. 3. Personal relationship: Prospects offer information based on a personal relationship with the provider’s organization. 4. Incentive-based permission: Incentives such as points or free prizes are used to maintain permission to access customer data. 5. Intravenous permission: Customers become dependent on the company, and the supplier controls the supply of certain goods or services Product Strategy: Perceived Quality Customers’ perceptions of overall quality or superiority of a product or service Compared with alternative With respect to its intended purpose  Product Strategy: Managing Customers Post-Purchase Product strategies should focus on both purchase and post- purchase Particularly important in the context of e-commerce Processes or programs that can help with managing customers post-purchase: Customer service programs Loyalty programs  Pricing Strategy Price is the one revenue-generating element of the traditional marketing mix Price premiums and price insensitivity are among the most important benefits of building a strong brand  Consumer Price Perceptions Choosing a pricing strategy to build brand equity means determining A method for setting current prices, and A policy for choosing the depth and duration of promotions and discounts Firms are putting greater importance on consumer perceptions and preferences Setting Prices to Build Brand Equity Value pricing Objective is to uncover the right blend of product quality, product costs, and product prices That satisfies the needs and wants of consumers And serves the profit targets of the firm A successful value-pricing strategy should strike a balance among: Product design and delivery Product costs and product prices Setting Prices to Build Brand Equity Price segmentation Sets and adjusts prices for appropriate market segments Everyday low pricing Avoids the high-low pattern of alternating price increases and decreases Avoids discounts In favor of a more consistent set of “everyday” base prices on products  Channel Strategy Channel design: Direct channels Selling through personal contacts from the company to prospective customers Online, in-store, mail, phone, etc. Indirect channels Selling through third-party intermediaries Agents, broker representatives, wholesalers or distributors, or retailers or dealers  Indirect Channels Retailers tend to have the most visible and direct contact with customers Can have a big impact on brand equity Push and pull strategies Channel support Retail segmentation  Marketing Communication Means by which firms attempt to inform, persuade, and remind consumers about the brands they sell Can be paid, owned and earned Can contribute to brand equity by: Creating awareness of the brand Linking points-of-parity and points-of-difference associations to the brand in consumers’ memory Eliciting positive brand judgments or feelings Facilitating a stronger consumer-brand connection and brand resonance  Challenges The new media environment has dramatically changed Traditional advertising media have lost impact Consumers have a lot of control over their media exposure Digital revolution has changed the way consumers learn and talk about brands Changing media landscape has forced marketers to re-evaluate how they should communicate with consumers  Goal of marketing communication: Impact consumer brand knowledge in a positive direction Steps: 1 – Assess current brand knowledge 2 – Deliver communication campaign 3 – Measure impact of campaign on brand knowledge  Challenges in Designing Brand- Building Communications Skilfully designed and implemented marketing communications programs: Require careful planning and creativity Don’t underestimate the importance of creativity Should be efficient and effective  Challenges in Designing Brand- Building Communications For a person to be persuaded by any form of communication, the following steps must occur: 1. Exposure 2. Attention 3. Comprehension 4. Yielding 5. Intentions 6. Behavior  Common Communication Options Advertising and Sales Promotion Digital (online) Marketing Events and Experiences Mobile Marketing  Advertising Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor Powerful means of creating strong, favorable, and unique brand associations and eliciting positive judgments and feelings Specific effects are difficult to quantify and predict  Sales Promotion Consumer Promotions (B to C) Trade Promotions (B to B) Advantages Permit manufacturers to charge different prices to groups of consumers who vary in their price sensitivity Convey a sense of urgency to consumers Encourage the trade to maintain full stocks and support the manufacturer’s merchandising efforts Primary disadvantage – creates a price orientation  Digital Marketing Communication Twenty-first century created a rush of companies moving into the world of interactive, online marketing communications Primary advantage of digital marketing Low cost Level of detail Degree of customization Real-time metrics  Events and Experiences Focus on engaging the consumers’ senses and imagination as a part of brand building Event marketing: public sponsorship of events or activities related to sports, art, entertainment, or social causes Range from extravagant sponsorship events to a simple local in- store product demonstration  Brand Amplifiers Efforts made to engage consumers and the public via word-of- mouth and public relations and publicity Amplify the effects created by other marketing activities through: Public relations and publicity Word-of-mouth  Key Issues for Branding in the Digital Era 97% of consumers turn to a search engine like Google when they are buying a product 96% of consumers search for product information from their mobile device 89% of consumers do online research prior to purchasing in store Many consumers evaluate the quality of a brand relative to the quality of the brand’s online platforms Figure 7-3: Traditional Marketing: One-to-Many Communications Figure 7-4: New Media Environment: Two- Way and Many-to-Many Communications  Digital Personalization Targeting individual consumers with varying offers To try to ensure that they complete a purchase Digital tools have allowed for unprecedented personalization For products as well as messages Dynamic pricing The same product can become available at different prices to reflect supply and demand in real time Loss of Control over Brand Message and Co-Creation of Brand Meaning The digital age has created conditions such that brand meaning is primarily coproduced by three different forces: Firm-generated brand meaning Through their online and offline marketing activities and programs, and other means, firms attempt to shape the meaning of brands with consumers. Consumer-generated brand meaning In the digital age, consumer-to-consumer conversations are enabled through social media platforms—such as Facebook and Twitter—that supplement traditional offline word-of-mouth. These conversations taking place on various digital platforms on a large-scale can significantly shape brand meaning. Media and cultural influences A variety of new information intermediaries also play a significant role in co-creating brand meaning. Media channels may themselves contribute to brand meaning. Further, cultural influences are continually evolving and shaping customer conversations and contributing to brand meaning. User Experience is Key to Digital Brand Success A seamless user experience is crucial to a success of a digital brand Consumers need to be able to switch from one device to another  Brand Engagement Three levels of customer engagement: Low brand engagement Ex. Signing up to receive email message in exchange for a discount coupon. Moderate brand engagement Ex. Writing a positive review online. High brand engagement Actively engaging in a brand’s content marketing; joining a brand fan community; providing unsolicited positive word of mouth about a brand to friends and online followers. Figure 7-6: Brand Engagement Pyramid  Negative Brand Engagement Hatred and dissatisfaction with a brand Companies can redress customer grievances Brand ambassadors Boycotts or social movements Brands are more readily ridiculed and parodied due to the online nature of the communication Figure 7-7: Digital Marketing Communication Channels