Class 3 - Brand Elements - UCD

d housekeeping 01 Brand audit project • • 02 Group info will be shared tomorrow (Sep 27, Wed) By next week (Oct 3, Tue), indicate a brand to audit for your project on Brightspace • Just the name would be enough • You can change the brand any time throughout the semester If you are new to the co...

d housekeeping 01 Brand audit project • • 02 Group info will be shared tomorrow (Sep 27, Wed) By next week (Oct 3, Tue), indicate a brand to audit for your project on Brightspace • Just the name would be enough • You can change the brand any time throughout the semester If you are new to the course • • Check the syllabus on Brightspace Check the slides from the first two classes and review – let me know if you need any help! ([email protected]) d housekeeping 03 Final exam • • December 8 (Fri) 9am – 11am Online, open-book exam based on cases CLASS 3-1 BRAND ELEMENTS SHAPING BRAND KNOWLEDGE Q What is brand knowledge? § review § § Brand knowledge is shaped by what consumers have learned, felt, seen, and heard (i.e., information acquired) about the brand over time § Brand elements (i.e., logo, symbol, slogan) § Marketing activities (e.g., promotion, price, product) Brand knowledge determines how positively consumers respond to new marketing information The source of brand equity Q What is brand equity? § Differential effect that brand knowledge has on consumer response to marketing activities of the particular brand Q Components of brand knowledge? § § review Awareness (Recall, Recognition) = strength of link Image (Attributes, Benefits) = node Q How is brand equity captured? § § Through a blind test Positive (Negative) brand equity: better (worse) response when knowing the brand vs. not knowing the brand Q What kinds of associations should be chosen? § § § Favorable associations Associations consistent with or relevant to preexisting associations Unique associations agenda f # Understand how different brand elements can build brand equity and maintain the pre-existing brand equity # Outline the ground rules of choosing brand elements for strategic brand management BRAND ELEMENTS § Trademarkable devices to help consumers identify a brand § Build consumers’ brand knowledge § Increase brand awareness and form associative network of a brand § Examples § Brand names § Slogans § URLs § Jingles § Logos (Symbols) § Packages § Characters CRITERIA FOR CHOOSING BRAND ELEMENTS Offensive strategies: to build brand equity § § § Memorable (increase brand awareness) § Easily recognizable and recalled § Should be unique to a brand Meaningful (clear brand image) § Descriptive of brand benefits and attributes § Should be consistent with other associations of the same brand Likable (positive brand image) § Fun, interesting, aesthetically pleasing, etc. § Necessary condition for consumers to attend to brand-related info CRITERIA FOR CHOOSING BRAND ELEMENTS Defensive strategies: to leverage and maintain brand equity in face of challenges § § § Transferable § Consistent across product categories § Consistent across geographic boundaries and cultures Adaptable § Flexible enough to update over time § Enduring in meaning and relevance Protectable § Can it be legally registered to protect one from counterfeits? § Can it be easily copied by competitors? BRAND NAME § Memorability: Enhance recall and recognition § Meaningfulness: Captures the central theme or key associations of a product in a compact, economical fashion § Likability: Can evoke verbal imagery § Transferability: Limited § Adaptability: Most difficult element to change § Protectability: Yes BRAND NAME How things can go wrong BRAND NAME Ground rules for naming a brand § Should be memorable: Different, distinctive, and unique § Familiar and meaningful name increase ease of processing § Simple and easy to pronounce or spell BRAND NAME Exception: phonetic elements of a name provide extra meanings § Phonetic elements determine how a word is experienced by human senses, and add meanings to the word § A word with a lower-frequency (i.e., hard-to-pronounce word; e.g., Taketa, Patrick) could convey aggressiveness, unpredictability, volatility § A word with higher frequency (i.e., easy-to-pronounce word; e.g., Maluma, Amy) could convey politeness and calmness BRAND NAME Exception: phonetic elements of name on risk assessment (1/2) -> stronger storm Hard-to-pronounce names Easy-to-pronounce names BRAND NAME Exception: phonetic elements of name on risk assessment (2/2) Hard-to-pronounce names Easy-to-pronounce names LOGO AND SYMBOL § Visual elements that identify a brand, indicating origin, ownership, or association (non-word logos = symbols) LOGO AND SYMBOL § Memorability: High, useful for recognition § Meaningfulness: Captures the key associations of a brand § Likability: Can evoke visual imagery, well-liked § Transferability: Excellent (non-verbal; across cultures/categories) § Adaptability: Excellent (Typically redesigned over time) § Protectability: Excellent LOGO AND SYMBOL How things can go wrong LOGO AND SYMBOL Example: the golden arches JINGLES § Musical messages written around the brand § Memorability: Most useful for recall and recognition § Meaningfulness: Captures any type of association § Likability: Can evoke verbal imagery, well-liked § Transferability: Limited § Adaptability: Can be modified § Protectability: Excellent JINGLES Example: McDonald’s - I‘m loving it https://www.youtube.com/watch?v=ojZuXGP7DUI&t=0s JINGLES Example: Apple Sounds https://www.youtube.com/watch?v=OxJpZtp2ItE URL § Commonly referred to as domain names § Usually straightforward § http://www.netflix.com § https://ucd.ie § http://shop.lululemon.com § Protects a brand from unauthorized use in other domain names URL Typosquatting § Registering a domain name with bad-faith intent to profit from the trademark belonging to someone else § Typosquatting of twitter.com § twiitter.com § twittr.com § twittor.com § twitter.cm § wwwtwitter.com CHARACTERS § Characters take on human or real-life characteristics § So well liked and easily memorable that characters often dominate other brand elements CHARACTERS § Memorability: Good, useful for recognition § Meaningfulness: Useful for non-product-related imagery § Likability: Generate human qualities, well-liked § Transferability: Limited across cultures, categories § Adaptability: Sometimes redesigned, should remain relevant § Protectability: Excellent CHARACTERS how to update your character (Example 1: m&m’s) https://www.youtube.com/watch?v=G9wyY-KvxnI&ab_channel=TheLateShowwithStephenColbert CHARACTERS how to update your character (Example 2-1: wendy’s) https://www.youtube.com/watch?v=_BiVc3nwDN8&ab_channel=AlonzoLerone CHARACTERS how to update your character (Example 2-2: wendy on fortnite) https://www.youtube.com/watch?v=DhdQmDKTBgI SLOGAN § A short phrase that communicates descriptive or persuasive information about a brand SLOGAN Caveat: reverse-priming (acting opposite to persuasive intents) PACKAGING § Activity of designing and producing containers or wrappers § Packaging changes can have immediate impact on customer shopping behavior and sales. PACKAGING Example: Fiat https://www.youtube.com/watch?v=uWLX94pzYVk PACKAGING § Memorability: More useful for recognition than recall § Meaningfulness: Captures any type of association § Likability: Can combine visual and verbal appeal § Transferability: Good § Adaptability: Can be redesigned § Protectability: Can be closely copied PACKAGING Example: Heinz Ketchup (1/2) https://www.youtube.com/watch?v=APoGHH1Ns2M&t=0s&ab_channel=HeinzKetchupCanada PACKAGING Example: Heinz Ketchup (2/2) https://youtu.be/LFmpVy6eGXs CLASS 3-2 THE (NOT-SO-OBVIOUS) EFFECTS OF COUNTERFEITS # Can tell different kinds of counterfeits agenda f # Explain why some products are not well protected from counterfeits legally # Describe the nuanced effects of counterfeits on the original brands EARLY EXAMPLE Albrecht Dürer WHAT IS A COUNTERFEIT § Product that uses someone else’s trademark (i.e., brand elements) without their permission § By making or selling a counterfeit, criminals seek to profit from the trademark owner’s brand equity unfairly. § Counterfeit goods are generally of lower quality and sold at lower prices. COUNTERFEIT MARKET Estimated market size § According to the World Customs Organization (2004), the global market for counterfeits is estimated to exceed $600 billion, accounting for approximately 7% of world trade. § According to the International Chamber of Commerce (2017), the market for counterfeits is projected to be valued at US$1.92.3 trillion by 2022 – a 100% increase from the last decade. COUNTERFEIT MARKET Seizures by product category in US toys computer 1% 1% optical 2% 2017 others 16% apparel 16% pharmaceuticals 6% watches/jewerly 13% handback/wallet 10% footwear 12% consumer products 11% consumer electronics 12% TYPES OF COUNTERFEIT GOODS Counterfeit § Fake goods that consumers CANNOT easily tell they’re fake § Often sold at the original price of the original product, look the same with the same logo § Illegal TYPES OF COUNTERFEIT GOODS Knock-off § Goods that consumers CAN tell they are not original § They are sold usually at a cheaper price than the original items that inspired them, and sold at a different distribution channel. § Not necessarily illegal TYPES OF COUNTERFEIT GOODS Imitation § Products that have a similar design of those of another brand, but are sold by a different brand with a different logo § Not necessarily illegal(!) THE LAW PROTECTS § Trademark § Patent § Copyright § Protected designation of origin (e.g., Scottish Whisky) THE LAW PROTECTS Trademark (1/2) § Recognizable logo, symbol, shape, or slogan which identifies products of a particular source from those of another § Examples of trademarks § Words: Apple, Starbucks § Logo: Tayto logo, Kerrygold logo § Shape: Hennessy’s bottle for brandies, Sony Mobile’s brand logo § Sound: Intel’s jingle THE LAW PROTECTS Trademark (2/2) § Protect manufacturer of new goods and encourage innovation § Right to exclude others from making, using, selling § Can be sold, licensed, mortgaged, given away, abandoned § Usually given for a period of time (20 years in US) § Maintenance fees (US no charge, EU – 30,000 euros/year) THE LAW PROTECTS Patent (1/2) § Protect a useful and novel invention § Biological patent § Business method patent (e.g., insurance, e-commerce) § Software patent § Design patent (e.g., Coke glass bottle) § Don’t work for fashion goods in many cases § By the time it’s patented, the design is out of fashion THE LAW PROTECTS Patent (2/2) § Controversies § Can hinder further innovation § May hurt consumers (e.g., medicine manufacturers’ pricing) § Profit vs. mass availability (the former usually wins) THE LAW PROTECTS Copyright § Right exclusively given to copy or to distribute an artistic or literary work that is original and exists in a tangible medium, such as paper, canvas, film, or digital format. § Examples: novels, music, movies, software code, photographs, and paintings § Fashion designs are typically thought of as useful goods (keep body warm, protect body), not creative or original creations THE LAW PROTECTS Copyright https://www.youtube.com/watch?v=5zx1aSY6k78 IMPACTS OF COUNTERFEIT GOODS On the society and consumers § Counterfeiting is often linked to criminal activities § The efforts spent by government can be put to better use § Health and safety IMPACTS OF COUNTERFEIT GOODS On original brands (1/3) § It’s complicated! § They have negative effects § Loss of sales § Dilution of brand image IMPACTS OF COUNTERFEIT GOODS On original brands (2/3) https://www.youtube.com/watch?v=7hwu3SncsfE&ab_channel=ADVexpressTV IMPACTS OF COUNTERFEIT GOODS On original brands (3/3) § They also seem to have positive effects § Imitation is the sincerest form of flattery (Oscar Wilde!) § Advertising effect – Increases brand awareness § Reduces scarcity of high-end fashion design: Forces customers of high-end fashion brand to get even more scarce goods that normal people can’t afford. d NEXT CLASS 01 Brand positioning 02 Oct 3: Pick a brand to audit for your group project!