Branding - All Slides PDF

What is Branding? Brands were (unremovable) markers of ownership the first uses in businesses. Brand creation Some of the world’s biggest brands are based on simple ideas, beatifully excuted. When a brand stands for something, it creates meaning for the product, service, or organ...

What is Branding? Brands were (unremovable) markers of ownership the first uses in businesses. Brand creation Some of the world’s biggest brands are based on simple ideas, beatifully excuted. When a brand stands for something, it creates meaning for the product, service, or organization What is a brand? Brands are (often still imprinted) markers for product origin that facilitates consumer choice. Brand are almost „magical“ devices for charging higher prices Brands are markers for social status and maybe even a clue for character. Brands are markers for consumers‘ status, attitudes, and lifestyles Brands are reasons and resources for consumers forming „consumer tribes Brand equity (financial assets) Why do customers value brands? ¡ Expression of who they are Slogan/ tagline ¡ Another part of a brand is a „tagline“, „slogan“, „strapline“, or „endline“ that expresses its core purpose and cultural proposition ¡ Short and appealing expression of the logo or the brand (the promise). The Definition of brand ¡ A brand is a collection of attributes measured by their mental, physical, emotional, and soulful engagement ¡ A brand is a name, term, symbol, design, or combination thereof that identifies a seller’s products and diHerentiates them from competitors’ products The benefits of branding 1. DiHerentiation è why this product is better than others 2. Connecting with peopleè emotionally 3. Added valueè emotional significance 4. Signify changeè brands make business strategy, ownership, directions visibile Why do we need a brand? Brand architecture ¡ Brand architecture is a strategic tool that communicates the structure of the organization and how the branded assets in its portfolio relate to each other and their audience. 1. Branded house (single brand model ): an individial approach to brand identity and positioning across every aspect of the enertprise and its operations (STC tv, STC Pay, STC play) 2. Sub-brands: portofolio of products or services linked to the parent brand 3. Endorsed brand model: a portofolio of independent brands, each endorsed by the organizational parent brands (Marriott) 4. House of brands: a portofolio of brands each with its own brand identity and positioning (P&G) Main Keys for Brand experience Brand- Identity- logo Brand: It is the brand personality Everything in the brand should reflect the business values The emotional attachment is what creates the brand not the product/service Identity: Smell , Touch , Color , Musical tone Logo: Symbol, Signature, Logo, Sign Brand Archetype & storytelling Brand Personality (Archetype: There are 12 personalities for brands Why do brands matter to companies? Disadvantages of brands Facts ¡ „Materialists believe that acquiring things will make them happier, and they tend to act on this belief by buying more (Watson 2003). In popular culture, however, materialists are viewed as being less happy than other people, and this perception  has been validated by the many empirical studies that show a negative relationship between materialism and well-being...“ ¡ What is meant when consumers have a „script“ for a brand in their minds? ¡ Discuss three ways in which consumers value brands Strategic Brand Management: Building, Measuring, and Managing Brand Equity Brand Elements The key to creating a brand: – Able to choose a name, logo, symbol, package design, or other characteristic that identifies a product – Distinguishes it from other products Components that identify and diHerentiate a brand are brand elements Brands Versus Products Five levels of meaning for a product: Core benefit level: Fundamental need or want that consumers satisfy by consuming the product or service. Generic product level: Basic version of the product containing only those attributes or characteristics absolutely necessary for its functioning but with no distinguishing features. Expected product level: Set of attributes or characteristics that buyers normally expect and agree to when they purchase a product. Augmented product level: Additional product attributes, benefits, or related services that distinguish the product from competitors. Potential product level: All the augmentations and transformations that a product might ultimately undergo in the future. Product A physical good: cereal, tennis racquet, or automobile A service: an airline, bank, or insurance company A retail outlet: department store, specialty store, or super market A person: political figure, professional entertainer, or athlete  A place: city or country An idea or a social cause Brand Is more than a product Can have dimensions that diHerentiate it in some way May be rational and tangible—related to product performance of the brand—or more symbolic, emotional, and intangible—related to what the brand represents A branded product may be: A physical good like Kellogg’s corn flakes cereal, Prince tennis racquets, or Ford Mustang automobiles A service such as Delta Airlines, Bank of America, or Allstate insurance DiTerences between a product and a brand may be: Rational and tangible: Related to product performance of the brand Or may be more symbolic, emotional, and intangible: Related to what the brand represents Why Do Brands Matter? Consumers, Firms Consumers: Functions provided by brands to consumers: Identify the source or maker of the product Simplify product decisions Lower the search costs for products internally and externally Helps set reasonable expectations about what consumers may not know about the brand. Products can be classified by their associated attributes or benefits Search goods: Evaluated on the basis of attributes such as sturdiness, size, color, style, design, weight, and ingredient composition by visual inspection. Example - Grocery Experience goods: Evaluated on the basis of features such as durability, service quality, safety, and ease of handling.  Example - Automobile tires Credence goods: Consumers may rarely learn attributes. Example - Insurance Brand can signal product characteristics and attributes: – On the basis of attributes products can be classified as: ▪ Search goods ▪ Experience goods ▪ Credence goods Brands can reduce risks in product decision: – These risk can be categorised as: ▪ Functional, physical, financial, social psychological, and time Risks: Functional risk—Product does not perform up to expectations. Physical risk—Product poses a threat to the physical well-being or 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 aHects the mental well-being of the user. Time risk—Failure of the product results in an opportunity cost of finding another satisfactory product. Firms Brands provide valuable functions to a firm: – Simplify product handling and tracing – Help organizing inventory and accounting records – OHer 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 Roles That Brands Play Consumers Identification of source of product Assignment of responsibility to product maker Risk reducer Search cost reducer Promise, bond, or pact with maker of product Symbolic device Signal of quality Manufacturers Means of identification to simplify handling or tracing Means of legally protecting unique features Signal of quality level to satisfied customers Means of endowing products with unique associations Source of competitive advantage Source of financial returns Can Anything Be Branded? Physical Goods, Services 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 Branding creates mental structures and helps consumers organize their knowledge about products and services in a way that clarifies their decision making and, in the process, provides value to the firm. The key to branding is that consumers perceive di6erences among brands in a product category. These diHerences can be related to attributes or benefits of the product or service itself, or they may be related to more intangible image considerations. Physical Goods Physical goods are what are traditionally associated with brands: – Mercedes-Benz – Nescafé – Sony Branding has been adopted in a variety of industries: – Industrial business-to-business (B2B) products – Technologically intensive “high-tech” products Business-to-business (B2B) products: Example of B2B brand: Caterpillar Guidelines for marketers of B2B brands: Ensure that entire organization supports branding and brand management. Adopt a corporate branding strategy if possible and create a well- defined brand hierarchy. Frame value perceptions. Link relevant non-product-related brand associations. Find relevant emotional associations for the brand. Segment customers carefully both within and across companies. High-tech products: Struggle with branding due to lack of branding strategy. Have realised that financial success is no longer driven by product innovation alone. Marketing skills play an important role in the adoption and success of high-tech products. Guidelines for high-tech branding: Understand your brand hierarchy and manage it appropriately over time. Know who your customer is and build an appropriate brand strategy.  Realize that building brand equity and selling products are two diHerent exercises. Brands are owned by customers, not engineers. Brand building on a small budget necessitates leveraging every possible positive association. Technology categories are created by customers and external forces, not by companies themselves. The rapidly changing environment demands that you stay in tune with your internal and external environment. Invest the time to understand the technology and value proposition and do not be afraid to ask questions. Services Branding a service can be an eHective way to signal to consumers that a firm has designed a particular service oHering that is special and deserving of its name: – American Express – British Airways – Ritz-Carlton – Merrill Lynch – Federal Express Role of branding with services: Challenges in marketing services: Less tangible than products and vary in quality. Depends on the particular person or people providing them. Branding addresses problems related to intangibility and variability. Brand symbols help make abstract nature of the services more concrete. Provides competitive edge to the services. Professional services: OHer specialized expertise and support to other businesses and organizations. Combination of B2B and traditional consumer services branding. Challenges: Greater variability  Harder to standardize Threat from greater equity of employees 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 Retailers can introduce their own brands by: – Using their store name – Creating new names – Some combination of the two Many distributors, especially in Europe, have introduced their own brands Products bearing these store brands or private label brands oHer another way for retailers to increase customer loyalty and generate higher margins and profits In 2016, store brand dollar sales volume amounted to about 118.1 billion U.S. dollars, which is about 15 percent of the overall consumer packaged goods sales in the United States. In Britain, five or six grocery chains selling their own brands account for roughly half the country’s food and packaged goods sales, led by Sainsbury and Tesco. Another top British retailer, Marks & Spencer, sells only its own-brand goods, under the label of St. Michael. Several U.S. retailers also emphasize their own brands. Digital Brands Some of the strongest brands in recent years have been born online: – Amazon – Google – Facebook – Twitter 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 Online products and services: To build successful brands, online marketers should:  Create unique aspects of the brand on dimensions that are important to consumers: Example: convenience, price, and variety Perform satisfactorily in areas, such as customer service, credibility, and personality. Find unique ways to satisfy consumers’ unmet needs. OHer unique features and services to consumers. OHer unique value propositions to geographically dispersed customer groups. 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 ▪ Amnesty International ▪ Sierra Club People and organizations: Product category is people or organization competing for public approval or acceptance. Have well-defined images that are easily understood and liked (or disliked) by others. The idea of brand in this category is not limited to famous and well known personalities, an individual who builds his name and reputation in a business context is essentially creating his own brand. Right awareness and image is invaluable in shaping the way people treat and interpret words, actions, and deeds. Sports, Arts, and Entertainment  A special case of marketing people and organizations as brands exists in the sports, arts, and entertainment industries: – 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 Sports, arts, and entertainment: Sports teams: Market themselves through a creative combination of advertising, promotions, sponsorship, direct mail, digital, and other forms of communication. Build awareness, image, and loyalty to meet ticket sales targets regardless of the team’s actual performance. Art and entertainment: An example of experience goods, that is, prospective buyers cannot judge quality by inspection and must use cues such as the particular people involved, the concept or rationale behind the project, and word-of-mouth and critical reviews. A strong brand is valuable in the entertainment industry because of the fervent feelings that names generate as a result of pleasurable past experiences. 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 Geographic locations:  Increased mobility of people and businesses and growth in the tourism industry have contributed to the rise of place marketing. Refers to actively promoting cities, states, and countries through advertising, direct mail, and other communication tools. Aim is to create awareness and a favorable image of a location that will entice temporary visits or permanent moves from individuals and businesses. Ideas and Causes Numerous ideas and causes have been branded: – Especially by nonprofit organizations May be captured in a phrase or slogan or represented by a symbol: – Such as AIDS ribbons Ideas and causes: Branding helps make ideas and causes more visible and concrete. Branding can provide much value to an organization. What are the Strongest Brands? Brands that are the “strongest” are the brands that are: – Best known – Most highly regarded Maintaining brand relevance and diHerentiation are important to the success of a brand As much as 50 percent of the value of a firm could be attributed to intangible assets such as brands. Many brands endure the test of time. For example, many brands that were number one in the United Kingdom in 1933 remain strong today: Hovis bread, Stork margarine, Kellogg’s Corn Flakes, Cadbury’s chocolates, Gillette razors, Schweppes mixers, Brooke Bond tea, Colgate toothpaste, and Hoover vacuum cleaners. Many of these brands have evolved over the years, however, and made a number of changes. Most of them barely resemble their original forms. At the same time, some seemingly invincible brands, including Montgomery Ward, Polaroid, and Xerox, have run into diHiculties and seen their market preeminence challenged or even lost. Branding Challenges and Opportunities Unparalleled access to information and new technologies  Downward pressure on prices Ubiquitous connectivity and the consumer backlash Sharing information and goods Unexpected sources of competition Disintermediation and reintermediation Alternative sources of information about product quality Winner-takes-all markets Media transformation The importance of customer-centricity Unparalleled Access to Information and New Technologies Technology has created vast amounts of information Over time, as technology becomes more standard, brand marketers may find opportunities: – Utilizing innovative features in designing better brand experiences for their customers Downward Pressure on Prices As search costs for information become lower, consumers can compare prices more easily: – Thus, they can switch to a diHerent brand more easily – This may cause more commodification of products and services – This creates challenges for brand marketers Ubiquitous Connectivity and the Consumer Backlash As digital and electronic connectivity becomes ubiquitous, consumers’ attention is lessened and are more vulnerable to intrusions: – Backlash may come as consumers become increasingly resistant to marketers attempts to gain access to them – Software may come available that thwarts marketers eHorts to reach consumers Sharing Information and Goods Technology has oHered two phenomena related to branding: – Social media platforms:  ▪ While they oHer a way for consumer to connect and communicate their preferences for goods or services, the platforms face increased scrutiny by regulatory agencies ▪ Many of the platforms have traditionally not had to obtain permissions for use of customer data – Peer-to-peer sharing: ▪ Napster, Airbnb, Zipcar Unexpected Sources of Competition The digital world allows easier entry into new markets: – Increased competition – When Amazon Movies began oHering streaming services, it faced competition from Netflix and Apple i Tunes Disintermediation and Reintermediation Disintermediation: – Reduction or elimination of intermediaries – The travel industry, for example, has experienced significant decline in the need for travel agencies: ▪ Once oHered advisory services and helped make bookings in return for a small fee or commission Reintermediation: – Introduction of new intermediaries that perform some of the same functions or have additional roles in the channel of distribution – Yelp, online consumer guides (Consumer Reports.com), and influential bloggers Alternative Sources of Information about Product Quality The Internet oHers consumers new ways to learn about new products and product quality: – This has reduced the reliance on brands as signals on quality – Brands now have to do more: ▪ Have to be translators of trends, acting on information about changing customer tastes and desires almost instantaneously Winner-Takes-All Markets  A winner-take-all market is likely to permeate other industries and categories outside of sports and entertainment: – Brands which are market leaders within categories are likely to be chosen at an even greater rate Media Transformation The erosion and fragmentation of traditional advertising media has coincided with: – The emergence of interactive and nontraditional media, promotion, and other communication alternatives Marketers are spending more on nontraditional forms of communication: – On new and emerging forms of communication – Social media – Paid influencers – Sponsored bloggers LaCroix is an example of this The Importance of Customer-Centricity Brand equity can be vulnerable to destruction if product and service claims are not verified by actual experience: – Review forums – Reviews from peers – Online word-of-mouth The Brand Equity Concept Principles of branding and brand equity: – DiHerences in outcomes arise from the “added value” endowed to a product – The added value can be created for a brand in many diHerent ways – Brand equity provides a common denominator for interpreting marketing strategies and assessing the value of a brand – There are many diHerent ways in which the value of a brand can be exploited to benefit the firm Strategic Brand Management Process Identifying and Developing Brand Plans Designing and Implementing Brand Marketing Programs  Measuring and Interpreting Brand Performance Growing and Sustaining Brand Equity The strategic brand management process as having four main steps: 1. Identifying and developing brand plans 2. Designing and implementing brand marketing programs 3. Measuring and interpreting brand performance 4. Growing and sustaining brand equity Strategic Brand Management Process Designing and Implementing Brand Marketing Programs Choosing Brand Elements Integrating the Brand into Marketing Activities and the Supporting Marketing Program Leveraging Secondary Associations Choosing brand elements: The best test of the brand-building contribution of a brand element is what consumers would think about the product or service if they knew only its brand name or its associated logo or other element. Integrating the brand into marketing activities and the supporting marketing program:  Although the judicious choice of brand elements can make some contribution to building brand equity, the biggest contribution comes from marketing activities related to the brand. Leveraging secondary associations: Because the brand becomes identified with another entity, even though this entity may not directly relate to the product or service performance, consumers may infer that the brand shares associations with that entity, thus producing indirect or secondary associations for the brand. Measuring and Interpreting Brand Performance To manage brands profitably, managers must implement a brand equity measurement system Brand equity measurement system involves: – Brand audits – Brand tracking studies – Brand equity management system Brand equity measurement system: A set of research procedures designed to provide timely, accurate, and actionable information for marketers so that they can make the best possible tactical decisions in the short run and the best strategic decisions in the long run: Brand audits: Comprehensive examination of a brand to assess its health, uncover its sources of equity, and suggest ways to improve and leverage that equity. Brand tracking studies: Collect information from consumers on a routine basis over time, typically through quantitative measures of brand performance on a number of key dimensions marketers can identify in the brand audit or other means. Brand equity management system: Set of organizational processes designed to improve the understanding and use of the brand equity concept within a firm. Three steps that help implement a brand equity management system are: Creating brand equity charters, Assembling brand equity reports, and Defining brand equity responsibilities. Growing and Sustaining Brand Equity Defining Brand Architecture Managing Brand Equity over Time Managing Brand Equity over Geographic Boundaries, Cultures, and Market Segments Defining brand architecture: Provides general guidelines about branding strategy and the brand elements to be applied across all the diHerent products sold by the firm. Two key concepts in defining brand architecture are: Brand portfolio: Set of diHerent brands that a particular firm oHers for sale to buyers in a particular category. Brand hierarchy: Displays the number and nature of common and distinctive brand components across the firm’s set of brands. Managing brand equity over time: A long-term perspective of brand management recognizes that any changes in the supporting marketing program for a brand may aHect the success of future marketing programs. Produces proactive strategies designed to enhance customer-based brand equity and reactive strategies to revitalize a brand that encounters problems. Managing brand equity over geographic boundaries, cultures, and market segments: In expanding a brand overseas, managers need to build equity by relying on specific knowledge about the experience and behaviors of those market segments. Brand strategy Why do brands exist? ¡ A bold brand strategy requires a combination of sound logic and a glimpse of inspired faith to take the brand where other brands have yet to venture ¡ Brand strategy can be achieved through planning and research Old Vs. New idea of brands Definition ¡ Brand strategy ¡ Is the plan for a brand’s delivery and it answers the big questions: who, where, why, what, and when? ¡ These questions are answered through the brand criteria: purpose, vision, values, mission statement, proposition, positioning, personality, and audience The benefits of brand startegy The brand criteria for the brand startegy 1- purpose The elements of successful brands Elaborations on brand startegy ¡ A sense of purpose is attractive to customers, employees, investors, and suppliers. ¡ Your customers have a role to play in the future of the brand. ¡ Some of the most progressive and dynamic brands share their sense of purpose with their audience. Consideration for the brand purpose  ¡ The brand purpose should be ¡ Authentic extension of who you are and your beliefs ¡ Much bigger than just delivering a profit- it can make the world a better place ¡ Stimulate high levels of employee engagement & creates a strong sense of community Vision Consideration for the brand vision ¡ The brand vision should be ¡ Easy to comprehend ¡ Focus on the destination not the journey ¡ Avoid words like “best”, ”leading”, ”first”, “number one” ¡ Measurable ¡ Require a level of accomplishment Tip ¡ A great vision can inspire and consolidate a community in a common goal. ¡ It is both emotional and passionate. ¡ Helping your audience to build a picture in their minds of what you are thinking makes it easier for them to imagine their place in fulfilling this ideal future. Values Brand values & employees  The value of “Trust” What does “trust” mean? Consideration for choosing brand values ¡ The values should be ¡ Sincere and memorable ¡ DiHerentiating the brand ¡ Relevant to the brand expeience ¡ Realistic to employees ¡ Provoking measurable behaviors to enhance the brand performance mission statement Consideration for mission statement ¡ The mission statement should: ¡ Summarize the key brand criteria  ¡ Be clear ¡ Leave movement for growth ¡ Provide a measure for achievement ¡ Short and to the point Mission statement ¡ Disney: To always deliver the most exceptional entertainment experiences for people of all ages ¡ Starbucks: To inspire and nurture the human spirit- one person, one cup and one neighborhood at a time ¡ Macdonalds: To be our customers’ favorate place and way to eat and drink. We are committed to continously improving our operations and enhancing our customers’ experience. ¡ H&M: All our operations are run in a way that is economically, socially and environmentally sustainable Proposition Proposition = the brand promise “A brand is a promise. A good brand is a promise kept” – Muhtar Kent Consideration for brand proposition ¡ Whether or not there is a barrier to market competitors ¡ Your brand should meet your customers need ¡ It has to be short ¡ It has to be relevant, distinctive, and truthful Proposition = the brand promise  Unique selling point (USP) ¡ It promotes itself by focusing on the innovation and user experience it delivers to its audience while conveying a unique thought-leader tone of voice in its messaging. These elements come together to create Apple’s brand proposition. Positioning ¡ Brand positioing enables your brand to visualize the position of your business, product, or services in compared to your competitors Brand positioning map  Personality Brand personality ¡ The brand’s personality influence communication ¡ It is a valuable diHerentiator that oHers a deeper relationship with the consumer ¡ The celecrity brand ambassador (the paid endorsement) ¡ George Clooney & Nespresso: Making sure that each touchpoint of the brand experience is delivered with consistent personality Audience Brand audience parties The audience’s Key points ¡ It is important to profile each audience sector before you take the brand to market ¡ Consider the lifestyle habits of these influencers and what’s important and relevant to them ¡ What car do they drive? ¡ What newspaper do they read? ¡ What level of education do they have? ¡ Where do they live, shop, eat, or holiday? ¡ A brand is a living business asset, brought to life across all touchpoints which, if properly managed, creates identification, diHerentiation and value.” Brand essence Co-Branding: The collaboration between two brands in one product Strategic Brand Management: Building, Measuring, and Managing Brand Equity Customer-Based Brand Equity and Brand Positioning Defining Customer-Based Brand Equity 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 DiHerential eHect that brand knowledge has on consumer response to the marketing of that brand Marketing Advantages of Strong Brands Improved perceptions of product performance Greater loyalty Less vulnerability to competitive marketing actions Less vulnerability to marketing crises Larger margins More inelastic consumer response to price increases More elastic consumer response to price decreases Greater trade cooperation and support Increased marketing communication eHectiveness Possible licensing opportunities Additional brand extension opportunities Brand Equity as a Bridge Customer knowledge drives the diHerences 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 From the perspective of the C B B E concept, brand knowledge is the key to creating brand equity: – It creates the diHerential eHect that drives brand equity Marketers need an insightful way to represent how brand knowledge exists in consumer memory 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 Brand knowledge has two components: Brand awareness: Related to the strength of the brand node or trace in memory Often a step in building brand equity Often come into play Brand image: Consumers’ perceptions about a brand, as reflected by the brand associations held in consumer memory Possible Associations with the Apple Brand Name Sources of Brand Equity 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 Brand Image Advantages of brand awareness: Learning advantages Consideration advantages Choice advantages: Consumer purchase motivation Consumer purchase ability Consumer purchase opportunity  Anything that causes consumers to experience one of a brand’s element 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 suHicient 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 Strength of Brand Associations – More deeply a person thinks about product information and relates it to existing brand knowledge, stronger is the resulting brand association 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 Identifying and Establishing Brand Positioning Basic Concepts Target Market Nature of Competition Points-of-Parity and Points-of-DiHerence Basic Concepts Brand positioning:  – Act of designing the company’s oHer 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 homogeneous consumers who have similar needs and consumer behavior Involves identifying segmentation bases and criteria: – Criteria: ▪ Identifiability ▪ Size ▪ Accessibility ▪ Responsiveness Consumer Segmentation Bases : Behavioral User status, Usage rate, Usage occasion, Brand loyalty, Benefits sought Demographic Income, Age, Sex, Race, Family Psychographic Values, opinions, and attitudes, Activities and lifestyle Geographic International, Regional Business-to-Business Segmentation Bases: Nature of Good Kind, Where used, Type of buy Buying Condition Purchase location, Who buys, Type of buy Demographic S I C code, Number of employees, Number of production workers, Annual sales volume, Number of establishments 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 – Multiple frames reference Points of Parity and Points of DiTerence A marketer must arrive at the proper positioning: – This requires establishing the correct points-of-diHerence and points-of- parity associations: ▪ Points-of-diHerence (P O Ds): – Formally defined as attributes or benefits that consumers strongly associate with a brand ▪ Points-of-parity associations: – Not necessarily unique to the brand but may be shared with other brands Examples of Negatively Correlated Attributes and Benefits Low price versus high quality Taste versus low calories Nutritious versus good tasting EHicacious versus mild Powerful versus safe Strong versus refined Ubiquitous versus exclusive Varied versus simple Positioning Guidelines  Defining and Communicating the Competitive Frame of Reference Choosing Points-of-DiHerence Establishing Points-of-Parity and Points-of-DiHerence Straddle Positions Updating Position Overtime Developing a Good Positioning Defining and Communicating the Competitive Frame of Reference Communicating category benefits: – Marketers use product benefits to announce category membership Exemplars: – Well-known, noteworthy brands in a category can also be used as exemplars to specify a brand’s category membership Product descriptor: – Product descriptor that follows a brand name is often a very compact means of conveying category origin Choosing Points-of-DiTerence A brand must oHer a compelling and credible reason for choosing it over the other options: – What attribute or benefit can serve as point-of-diHerence? ▪ Desirability criteria ▪ Deliverability criteria ▪ DiHerentiation criteria Establishing Points-of-Parity and Points-of-DiTerence The key to branding success is to establish both points-of-parity and points-of- diHerence At times, an inverse relationship between P O P and P O D may exist in the minds of consumers: – Approaches to address the problem of negatively correlated P O Ps and P O Ds include: ▪ Separating the attributes  ▪ Leveraging equity of another entity ▪ Redefining the relationship Straddle Positions Type of positioning where a company is able to straddle two frames of reference: – With one set of points-of-diHerence and points-of-parity – The points-of-diHerence in one category: ▪ Become points-of-parity in the other ▪ And vice-versa for points-of-parity Updating Positions over Time Generally, positioning should be fundamentally changed very infrequently: – And only when circumstances significantly reduce the eHectiveness of existing P O Ps and P O Ds Yet, positioning will evolve to better reflect market opportunities or challenges P O D or P O P may be refined, added, or dropped as situations dictate Laddering: – Deepening the meaning of a brand to permit further expansion – Often useful to explore underlying consumer motivations Reacting: – Responding to competitive actions that threaten an existing positioning – Competitive actions are often directed at eliminating points-of-diHerence to make them points-of-parity: Or to strengthen or establish new points-of-diHerence Developing a Good Positioning A good positioning: – Has a foot in the present and a foot in the future: ▪ Needs to be somewhat aspirational so that the brand has room to grow and improve – Is careful to identify all relevant points-of-parity: ▪ Don’t overlook or ignore crucial areas where the brand is potentially disadvantaged  – Should reflect a consumer point of view in terms of the benefits that consumers derive from the brand – Recognizes that a duality exists in the positioning of a brand: ▪ Rational and emotional components Defining a Brand Mantra Brand Mantra Short, three-to five-word phrase: – Captures the irrefutable essence or spirit of the brand positioning Provides guidance about: – What products to introduce under the brand – What ad campaigns to run – Where and how the brand should be sold