MKM5955

Lecture 7

Branding
What is branding?
Creating brand value and equity
Brand elements
Brand marketing activities
Case study - CPA Australia re-invent its brand
for the global market



This lecture
Past Exam question
A brand has one strategic purpose and that is
to differentiate itself from competitors.
Discuss. (25 marks)


Brand

The power of
brands
Branding is everywhere.
Brand is not a logo, corporate identity,
advertising, marketing.
Brand is confidence, passion, belonging,
action, security, a set of unique values.
Brand
A brand is 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.

Branding is endowing products and services with the
power of the brand.
The role of brands
Identify the maker
Simplify product handling
Organise accounting
Offer legal protection
The Jamie Oliver brand print
Brand equity
Brand equity is the added value endowed on
products and services, which may be reflected in
the way consumers, think, feel, and act with respect
to the brand.
Arises from differences in customer response.
Differences in response from differences in
consumers brand knowledge.
Customer-based brand equity can be positive or
negative.
Brand equity
Advantages of strong brands
Improved perceptions of product
performance
Greater loyalty
Less vulnerability to competitive
marketing actions
Less vulnerability to crises

Larger margins
More inelastic consumer
response
Greater trade cooperation
Increased marketing
communications effectiveness
Possible licensing opportunities
The brand promise
A brand promise is the marketers vision of what the
brand must be and do for consumers.

Brand equity

Brand value
Brand equity models
Brand Asset Valuator (BAV)
Aaker Model
BRANDZ
Brand Resonance
BAV Key Components
Differentiation
Energy
Relevance
Esteem
Knowledge
Aaker model
Brand identity
Core identity elements
Extended identity elements
Brand essence
BrandDynamics pyramid
Brand resonance pyramid
Brand equity drivers
Brand elements
Marketing activities
Meaning transference
Measuring brand equity
Brand value chain
Brand audits
Brand tracking
Brand valuation
Brand value chain
The 10 most valuable brands
Managing brand equity
Brand reinforcement
E.g. Volvo
Brand revitalisation
E.g. Harley-Davidson
Interbrands brand equity valuation

Brand
elements

Resonate with
audience
Brand elements are
trademarkable devices that
identify and differentiate
the brand to encourage
choice.
Brand elements
Memorable
Meaningful
Likeable
Transferable
Adaptable
Protectable
Developing brand elements
Brand elements should be easy to recognise and
recall, and inherently descriptive and persuasive.
Should capture intangible characteristics (e.g.
Google, CPA logos).
Slogans help the consumer grasp what the brand is
and what makes it special.
Resonate with your target audience.
Brand contacts
Brand contacts are information-bearing customer
experiences (touch points) with the brand.

Positive or negative.


Brand
marketing


Personalisation
Integration
Internalisation
Designing holistic marketing activities
Personalised branding
Personalised branding involves making sure the
brand and its marketing are as relevant as possible
to as many customers as possible.

Experiential marketing
One-to-one marketing
Permission marketing
Integrated branding
Integrated branding involves mixing and matching
marketing activities to maximise their individual and
collective effects.
Brand identity
Brand image
Internal branding
Internal branding comprises activities and processes
that help to inform and inspire employees.
Choose the right moment
Link internal and external marketing
Bring the brand alive for employees

Leveraging secondary associations to
build brand equity
Understand what resonates with target audience
Develop new brand elements
Apply existing brand elements
Use a combination of old and new
Branding strategy for new products
Branding terms
Brand line
Brand mix
Brand extension
Sub-brand
Parent brand
Family brand

Line extension
Category extension
Branded variants
Licensed product
Brand dilution
Brand portfolio
Brand naming
Individual names
Blanket family names
Separate family names
Corporate name combined with individual product names
Brand extensions
Advantages
Improved odds of new-product success
Positive feedback effects
Disadvantages
Brand dilution
Brand cannibalisation
Success characteristics
Should fit in consumers minds

Reasons for brand portfolios
Increasing shelf presence and retailer dependence
in the store
Attracting consumers seeking variety
Increasing internal competition within the firm
Yielding economies of scale in advertising, sales,
merchandising, and distribution
Brand roles in a brand portfolio
Flankers
Cash cows
Low-end, entry-level
High-end prestige