Chapter 9, 10, 11 Strong Brand PDF

**Chapter 9: Creating Brand Equity** **Brand** as a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. **Brands** today play a number of important roles tha...

**Chapter 9: Creating Brand Equity** **Brand** as a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. **Brands** today play a number of important roles that improve consumers' lives and enhance the financial value of firms. **Branding** has been around for centuries as a means to distinguish the goods of one producer from those of another. **Branding** is endowing services and products with the power of a brand. **Customer-based brand equity** the effect that brand knowledge has on consumer behaviour and attitude to the marketing of that brand. **Brand Loyalty** provides predictability and security of demand for the firm. **Loyalty** also can translate into *customer willingness to pay a higher price.* ***Brand equity** is the added value endowed on products and services.* ***Branding is a consumer-centric perception influenced by marketing efforts.*** ***Energized differentiation measures the degree to which a brand is seen as different from others, and its perceived momentum and leadership.*** ***Relevance measures the appropriateness and breadth of a brand's appeal.*** ***Esteem measures perceptions of quality and loyalty, or how well the brand is regarded and respected.*** ***Knowledge measures how aware and familiar consumers are with the brand.*** ***Esteem and knowledge together create brand stature, a "report card" on past performance and a current indicator of current value.*** ***Brandz model of brand strength, at the heart of which is the BrandDynamics pyramid.*** ***Presence. Active familiarity based on past trial, saliency, or knowledge of brand promise*** ***Relevance. Relevance to consumer's needs, in the right price range or in the consideration set*** ***Performance. Belief that it delivers acceptable product performance and is on the consumer's short-list*** ***Advantage. Belief that the brand has an emotional or rational advantage over other brands in the category*** ***Bonding. Rational and emotional attachments to the brand to the exclusion of most other brands*** ***Bonded consumers at the top of pyramid build stronger relationship with and spend more on the brand those at lower levels.*** *The **brand resonance model** also views brand building as an ascending series of steps, from bottom to top.* ***Brand salience** is how often and how easily customers think of the brand under various purchase or consumption situations.* ***Brand performance** is how well the product or service meets customers' functional needs.* ***Brand imagery** describes the extrinsic properties of the product or service, including the ways in which the brand attempts to meet customers' psychological or social needs.* ***Brand judgments*** focus on customers' own personal opinions and evaluations. ***Brand feelings*** are customers' emotional responses and reactions with respect to the brand. ***Brand resonance*** describes the relationship customers have with the brand and the extent to which they feel they're "in sync" with it. **Brand audit** assesses the health of the brand and assesses the sources of brand equity and suggests ways to improve its brand equity. **Brand valuation** should not be mistaken for bran equity. Brand valuation is the estimated financial value of the brand. **Brand elements** are devices, which can be trademarked, that identify and differentiate the brand. **Brand elements** can play a number of brand-building roles. ***Memorable***---How easily do consumers recall and recognize the *brand element*, and when---at both *purchase* and *consumption*? Short names such as Tide, Crest, and Puffs are memorable brand elements. ***Meaningful***---is the *brand element credible*? Does it suggest the corresponding *category* and a product ingredient or the type of person who might use the *brand*? Consider the inherent meaning in names such as DieHard auto batteries, Mop & Glo floor wax, and Lean Cuisine low-calorie frozen entrees. ***Likable***---How *aesthetically appealing* is the *brand element*? A recent trend is for *playful names* that also offer a readily available URL. ***Transferable***---Can the brand element introduce new products in the same or different categories? Does it add to brand equity across *geographic boundaries* and *market segments*? ***Adaptable***---How *adaptable* and *updatable* is the brand element?! ***Protectable***---How *legally protectable* is the brand element? How *competitively protectable*? Names that become synonymous with *product categories* should retain their trademark rights and not become generic. **Integrated marketing** is about mixing and matching these marketing activities to maximize their individual and collective effects. **Internal branding** consists of activities and processes that help inform and inspire employees about brands. **Brand community** is a specialized community of consumers and employees whose identification and activities focus around the brand. **Indirect approach-** assess potential sources of brand equity by identifying and tracking consumer brand knowledge. **Direct approach-** assesses the actual impact of brand knowledge on consumer response to different aspects of the marketing. **Brand Value Chain is a structured approach to assessing the sources and outcomes of brand equity and the way marketing activities create brand values.** **Program multiplier**- determines the marketing program's ability to affect the customer mind-set and is function of the quality of the program investment. **Customer multiplier-** determines the extent to which value created in the minds of customers affect market performance. **Market Multiplier-** determines the extent to which the value shown by the market performance of a brand is manifested in shareholder value. **Brand Audit-** consumer-focused series of procedures to assess the health of the brand, uncover its sources of brand equity, and suggest ways to improve and leverage its equity. **Brand-tracking studies**- collect quantitative data from consumers over time to provide consistent, baseline information about how brands and marketing programs are performing. **Market Segmentation**- first step is to divide the market(s) in which the brand is sold into mutually exclusive segments that help determine variances in the brand's different customer groups. **Financial Analysis-** interbrand assesses purchase price, volume, and frequency to help calculate accurate forecasts of future brand sales and revenues **Role of Branding**- Interbrand then estimates how much of the company's earnings are directly influenced by the brand in each segment. **Brand Strength-** refers to how Interbrand checks a brand\'s strength to see if it will meet its expected earnings. **Brand Value Calculation**- Brand Value is the net present value (NPV) of the forecasted Brand Earnings, discounted by the Brand Discount Rate **Brand Reinforcement** brand needs to be carefully managed so its value does not depreciate. **The process of strengthening or maintaining a brand\'s image and keeping it relevant in the minds of consumers.** **Brand Revitalization any new development in the marketing environment can affect a brand's fortunes. Process of refreshing or renewing a brand that has become outdated, lost its appeal, or isn\'t performing well in the market.** **Brand Strategy is often called the *brand architecture.*** **Brand Extension**- When a firm uses an established brand to introduce a new product. **Sub-brand**- When marketers combine a new brand with an existing brand. **Parent Brand-** if the parent brand is already associated with multiple products through brand extensions **Line Extension-** the parent brand covers a new product within a product category it currently serves, such as with new flavors, forms, colors, ingredients, and package sizes. **Category Extension-** marketers use the parent brand to enter a different product category **Brand Line-** consists of all products---original as well as line and category extensions---sold under a particular brand **Brand Mix-** set of all brand lines that a particular seller makes **Branded Variant-** brand lines supplied to specific retailers or distribution channels **Licensed product-** one whose brand name has been licensed to other manufacturers that actually make the product. **Brand Portfolios can only be stretched so far, and all the segments the firm would like to target my not view the same brand equally favourably. It is the set of all brands and brand lines a particular firms offers for sale in a particular category or market segment.** **Flankers- Flanker or "fighter" brands are positioned with respect to competitors' brands so that more important (and more profitable) flagship brands can retain their desired positioning.** **Cash Cows- brands may be kept around despite dwindling sales because they manage to maintain their profitability with virtually no marketing support.** **Low-End Entry Level- of a relatively low-priced brand in the portfolio often may be to attract customers to the brand franchise.** **High-End Prestige- role of a relatively high-priced brand often is to add prestige and credibility to the entire portfolio** **Brand Extension. Many firms have decided to leverage their most valuable asset by introducing a host of new products under their strongest brand names.** **Customer Equity is a complementary concept to brand equity that reflects the sum of lifetime values of all customers for a brand.** **Customer Lifetime Value is affected by the revenue and by the costs of customer acquisition, retention, and cross-selling.** **Acquisition depends on the number of prospects, the acquisition probability of a prospect, and acquisition spending per prospect.** **Retention is influenced by the retention rate and retention spending level.** **Add-on spending** is a function of the efficiency of add-on selling, the number of add-on selling offers given to existing customers, and the response rate to new offers. **Brand equity** and **customer equity** perspectives certainly share many common themes. Both brand equity and customer equity **matter.** **Brands** serve as the **"bait"** that retailers and other channel intermediaries use to attract customers from whom they extract value. **Positioning** is the act of designing a company's offering and image to occupy a distinctive place in the minds of the target market. **Competitive frame of reference** defines which other brands a brand competes with and therefore which brands should be the focus of competitive analysis. **Category membership** the products or sets of products with which a brand competes and which function as close substitues. **Points-of-difference (POD's)** are attributes or benefits that consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand. **Points-of-parity (POP's)** are attribute or benefit associations that are not necessarily unique to the brand but may in fact be shared with other brands. **Competitive points-of-parity** are associations designed to overcome perceived weakness of the brand. **Straddle positioning** a company will be able to straddle two frames of reference with one set of points-of-difference and points-of-parity. **Perceptual maps** are visual representations of consumer perceptions and preferences. ***Brand mantra*** is an articulation of the heart and soul of the brand and is closely related to other branding concepts like "brand essence" and "core brand promise. These are short, three- to five-word phrases that capture the irrefutable essence or spirit of the brand positioning **Brand mantras** are powerful devices. **Brand mantras** must economically communicate what the brand is and what it is *not*. **Brand mantras** are designed with internal purposes in mind. **Category membership** can be a special problem for high-tech products. **Brands** are sometimes affiliated with categories in which they do *not* hold membership. **Brand's heritage** could suggest experience, wisdom, and expertise. **Competitive advantage** is a company's ability to perform in one or more ways that competitors cannot or will not match. ***Leverageable advantage*** is one that a company can use as a springboard to new advantages. ***Mystery*** draws together stories, metaphors, dreams, and symbols. Mystery adds to the complexity of relationships and experiences because people are naturally drawn to what they don't know. ***Sensuality*** keeps the five senses of sight, hearing, smell, touch, and taste on constant alert for new textures, intriguing scents and tastes, wonderful music, and other sensory stimuli. ***Intimacy*** means empathy, commitment, and passion. The close connections that win intense loyalty as well as the small perfect gesture. ***Share of market***---The competitor's share of the target market. ***Share of mind***---The percentage of customers who named the competitor in responding to the statement, "Name the first company that comes to mind in this industry." ***Share of heart***---The percentage of customers who named the competitor in responding to the statement, "Name the company from which you would prefer to buy the product. **Brand Journalism** is a chronicle of the varied things that happen in our brand world, throughout our day, throughout the years. Building brands for a small business is a challenge because these firms have limited resources and budgets **Brands Narratives and Storytelling see narrative branding as based on deep metaphors that connect to people's memories, associations, and stories.** **Setting. The time, place, and context.** **Cast. The brand as a character, including its role in the life of the audience, its relationships and responsibilities, and its history or creation myth.** **Narrative arc. The way the narrative logic unfolds over time, including actions, desired experiences, defining events, and the moment of epiphany.** **Language. The authenticating voice, metaphors, symbols, themes, and leitmotifs.** **Market leader** has the largest market share and usually leads in price changes, new-product introductions, distribution coverage, and promotional intensity. **Position Defense**. Position defense means occupying the most desirable market space in consumers' minds, **Flank Defense.** The market leader should erect outposts to protect a weak front or support a possible counterattack. **Preemptive Defense.** A more aggressive maneuver is to attack first, perhaps with guerrilla action across the market---hitting one competitor here, another there---and keeping everyone off balance. **Counteroffensive Defense.** In a counteroffensive, the market leader can meet the attacker frontally and hit its flank, or launch a pincer movement so it will have to pull back to defend itself. **Mobile Defense.** In mobile defense, the leader stretches its domain over new territories through market broadening and market diversification. ***Market broadening shifts*** the company's focus from the current product to the underlying generic need. **Counterfeiter** duplicates the leader's product and packages and sells it on the black market or through disreputable dealers. **Cloner** emulates the leader's products, name, and packaging with slight variations. **Imitator** copies some things from the leader but differentiates on packaging, advertising, pricing or location. **Adapter** takes the leader's products and adapts or improves them. Choose to sell to different markets but often it grows into a future challenger. ***Creating niches* developing specialized market segments** ***Expanding niches* broadening the reach of a specialized market segment.** ***Protecting niches* safeguarding a specialized market segment from competitiors.** **4 Stages:** **Introduction** period slow sales of growth as the product is introduced in the market. Profits are non-existent because of the heavy expenses of product introduction. **Growth** period of rapid market acceptance and substantial profit improvement. **Maturity** profits stabilizer or decline because of *increased competition.* **Decline** sales show a downward drift and profits erode. **Style** basic distinctive mode of expression appearing in a field of human endeavour. **Fashion** currently accepted or popular style in a given field. **Fad** fashions that come quickly into public view, are adopted with great zeal, peak early, and decline very fast. **Growth** sales growth starts to slow. **Stable sales per capita** flatten because of market saturation. **Decaying maturity** absolute level of sales starts to decline, and customers begin switching to other products.