Promotion Management (Marketing

BRAND MANAGEMENT
What is a brand?
Threats to brands in the New Economy
What makes a strong brand?
Elements of a brand
Brand equity
Brand chartering
Communications)

Brands and the organisation

Positioning the Brand
Brand identity
Communicating the Brand
Brand extensions
Brand loyalty
Global brands
Promotion Management (Marketing Brand: A Definition

ACCORDING TO MARKETING THEORY:

“…a name, term, symbol or design, or a combination of them, which is
intended to signify the goods of one seller or groups of sellers and to
differentiate them from those of competitors”
Kotler (1994), Marketing Management

RATHER DEFINE A BRAND IN RELATION TO THE CUSTOMER:

…is the means by which the company establishes a relationship with
the customer (because a brand has an identity and a personality and
a product not)…
Communications)

…A sum of all available information about the company, product or

service, gained from experience (functional and emotional),
differentiating it from another. The appeal is both rational and
emotional level; tangible and intangible…
…The space in consumers’ hearts and minds that belongs to you…
A/O

…The reason to choose you over the other guys…

Promotion Management (Marketing What is a Brand? Product vs Brand

A product is something that is made in a factory; a

brand is something that is bought by a customer. A
product can be copied by a competitor; a brand is
unique. A product can be quickly outdated; a successful
Communications)

brand is timeless.

Stephen King (WPP Group, London)

Promotion Management (Marketing Brands are under Treat

SOURCES OF THREATS ON BRANDS:

Educated consumers
Became marketing literate; brands had to offer real added
value; trend: loyal customers became loyal to group of brands
rather than to a single brand.

Powerful retailers
Communications)

Strong retailers dictate terms to manufacturers (e.g. Pick ‘n

Pay); retailer builds own brand (Woolworths) – customer loyal
to retailer rather than product; only 1 label sold (power of the
retail brand).

Both of the above leading to pressure on prices

No added value – consumer will not pay price premium; trend
– demand both low prices AND added value
Promotion Management (Marketing Brands are under Treat (cont)

The growth of own label

If the retailer represents some strong brand values itself, the way is clear
for own label products (Woolworths; Pick ‘n Pay) – e.g. own Colas

Brand extension instead of innovation

Brands which in the past were built through real technical innovation can
no longer keep pace, and may choose instead to extend an existing brand
into new areas or variants. Can enhance brand, but there is danger of
brand dilution or of confusing the customer (e.g. Pierre Cardin).
Communications)

New competition from outside the sector

Existing strong brands looking to extend their franchise into other areas
also pose a threat (e.g. Virgin). NB! New competitors like this are hard to
fight because they are playing a different game.

A/O
Promotion Management (Marketing What makes a Strong Brand?

It must work as a product or service – no fancy advertising or

clever logo will compensate
Must appeal on both the rational and emotional level –
products may all work well; price premium is justifid by
additional intagible, emotional benefits.
Must be integrated and coherent – tangible and intangible
benefits must be consistent with each other to present a
Communications)

coherent and believable “brand personality” (TAG-Heuer)

What it offers must be wanted by the customer and mean
something to him/her – what is relevant may change over
time: e.g. “environmentally friendly” is a relevant benefit
now for products from motor cars to holidays; 30 years ago –
no premium paid for these products.
Promotion Management (Marketing Examples of Successful Branding

“Ingredient” / Component branding – Lycra, Teflon

Corporate – Shell, Virgin, Old Mutual
Newspapers – Financial Mail, Financial Times (UK)
Supermarkets – Woolworths, Pick ‘n Pay
Convenience stores -- 7 Eleven, 8 to Late
Communications)

Speciality retailers – Cape Union Mart, The Body Shop

??
Promotion Management (Marketing Elements of a Brand

APPROACH: Separate the physical attributes from

emotional benefits. What lies at the core of the brand’s
identity?
Physical Attributes

Emotional benefits
Communications)

Essence
(CORE)

Arnold, D (1992), The Handbook of Brand Management)

Promotion Management (Marketing The Anatomy of a Brand

MARLBORO
Red & white
packaging

Boldness &
Marlboro Strength
independence
man Sense of and
(cowboy) freedom flavour
and of blend
strength
Communications)

Strength &
Strong
independence
flavour
American
imagery
Brown
Marlboro filter
Masculine Contemporary
country

Endorsement of male/
sports activities
Promotion Management (Marketing Brand Mapping (class exercise)

Break down a well-known brand that is familiar to everyone in

the group into its various elements (see Marlboro):
Nando’s
Castle Lager
Levi’s
Land Rover
Samsung
Communications)

VW
Waterman
Adidas
Harley-Davidson
Nokia
Promotion Management (Marketing Brand Equity

Strong brands can be assets to companies and

organisations

1980s: concept of brand equity – describe the sum of

Communications)

these assets

Brand equity needs to be nurtured and defended

Brand equity can be measured both internally and

externally
Promotion Management (Marketing Brand Equity Defined

Brand Equity can be defined as consisting of 5 asset

categories:

Brand awareness
Brand loyalty
Perceived quality
Communications)

Brand associations in addition to perceived quality

Other proprietary brand assets (patents, trademarks,
etc)

Aaker, D (1996), Building Strong Brands

Promotion Management (Marketing Brand Equity

Perceived quality
Brand
Name
associations
awareness
Other proprietary
brand assets
Brand Loyalty

BRAND EQUITY
Communications)

Provides Value to Firm

Provides value to Customer by Enhancing:
by enhancing Customer’s • Efficiency and
• Interpretation / Effectiveness of
Processing of Marketing Programmes
Information • Brand Loyalty
• Confidence in the • Prices/Margins
Purchase Decision • Trade Leverage
• Use satisfaction • Competitive Advantage
Promotion Management (Marketing Measuring Brand Equity

Interbrand – tracks leading brands on a number of

variables:

Sales
Market growth
Internationalisation
Communications)

Well protected in law, etc.

Good practice to measure your own and the

competition brands – part of broader evaluation of
strategic health of company.
 Brand Dimensions (according to
Promotion Management (Marketing Interbrand)

BRAND WEIGHT (dominance)

BRAND LENGTH (stretch)

BRAND BREADTH (franchise)

Communications)

BRAND DEPTH (commitment)

Promotion Management (Marketing Brand Weight

Dominance in category or market

Dominant market share (market leaders)

Standard setter

McDonald’s, Coca-Cola, Kodak, Gillette

Communications)
Promotion Management (Marketing Brand Length

Stretch and strechability into new categories and

markets

Wide “area of competence”

Disney, Johnson & Johnson, Harrods, Virgin, Sony

Communications)
Promotion Management (Marketing Brand Breadth

Breadth of franchise in terms of age spread, consumer

types and international appeal.

A “broad brand” can cross social, cultural and national

boundaries.

Coca-Cola, MaDonald’s, Kodak, Somy, Visa, Microsoft

Communications)
Promotion Management (Marketing Brand Depth

Degree of commitment the brand has achieved among

its customer base and the proximity, intimacy and
loyalty they feel to the brand.

Intimate relationship with customers, usually on the

Communications)

basis of shared “central” or “higher” values.

Apple Computer, Disney, Body Shop, Harley-Davidson,

Camel
Promotion Management (Marketing Brand Chartering

Recent development (concept)

Tough internal audit to charter the underlying strength
of their brands on a regular basis
Brand Chartering – probes the organisation (strategic
strengths) behind the brand
Brand Equity – strength of the brand in the marketplace
Communications)

How to do brand chartering:

Is there a common interpretation of the brand’s
essential meaning throughout the organisation?
What core competencies does the brand represent?
Would the people be proud to be called
manifestations of the brand?
Macrae, C (1996), The Brand Chartering Handbook
Promotion Management (Marketing Brand Identity

DEFINITION OF BRAND IDENTITY

Brand identity is how the company wants the brand to

be perceived.
Communications)

Aaker (1996), Building Strong Brands

Promotion Management (Marketing Brand Identity

Must be relevant to customer needs and wants

Must be clear and easy to understand
Is at the heart of the relationship between customer and
company
Heart of any brand strategy
Has a personality of its own
Has human qualities which appeal to customers
Communications)

See brand as a person and ask:

If this brand were a person, what sort of car would it
drive?
What is its favourite drink?
What would it say to you?
If answer is not obvious, the brand personality and also brand
identity is not clear
Promotion Management (Marketing Brand Extension

A way of strengthening a brand’s positioning

Recent example of classic line extension: McGraw-Hill
--publisher of textbooks and educational materials into
children’s educational software. They started with the brand’s
long-standing reputation for educational excellence. Virgin
Today’s definition of brand extension:
Globalisation
Demographic shifts – new classes of consumers
Communications)

Technology – new channels of marketing (Internet,

Satellite TV)
Industry consolidations – fewer brand choices; likely to
become loyal to one
Increasing emphasis on relationships – customers want
brands to be accountable for their products and promises.
Promotion Management (Marketing Brand Extension (cont)

4 WAYS TO EXTEND:

Licensing
Pierre Cardin – to a variety of marginal products –
brand weakened
Co-branding
Disney and McDonald’s – there has to be a fit
Communications)

Sponsorships
E.g. Olympic Games – linking up with big events
Brand agents
Individuals that are not only celebrities, but stir
emotions that support the brand in a meaningful
way (e.g. Tiger Woods & Nike)
Promotion Management (Marketing Brand Loyalty

Customers become loyal if brand identity is communicated

effectively and positioned positively in their minds
However, this does not mean they will never buy any other brand
Customers tend to use “repertoires” of brands rather than single
brands
The specific brand they buy on any one occasion will depend on
Communications)

other factors such as availability, special price offers, recent

advertising campaigns, point of sale factors.
Highly educated and affluent groups are found to be less loyal! (not
willing to pay a price premium for branded products)
Promotion Management (Marketing Brand Loyalty

Reduced Marketing Costs

Trade Leverage

Attracting New Customers:

Communications)

Brand Loyalty
• Brand awareness created
• Reassurance to new customers

Time to respond to competitive

threats
Promotion Management (Marketing How to Maintain Brand Loyalty

Treat the Customer right

Stay close to the Customer

Measure / Manage
Communications)

Customer Satisfaction Brand Loyalty

Create a solution for a

Customer Problem /
Reward loyalty

Provide Extras
Promotion Management (Marketing Brand Awareness

Top of
Mind

Brand Recall
Communications)

Brand Recognition

Unaware of Brand
Promotion Management (Marketing Global Brands

Global brands can reap benefits of economies of scale in

production, marketing and distribution. They must stay
responsive of customer wants – may vary from one
country or region to another. The issue is how to balance
global economies of scale with local responsiveness.
Country specific?
Communications)

Other factors (youth, luxury?) – not country specific

Different type of channels?
Competition local or international?
Communication will have to be different even for global
brands (Coke has more than 20 different advertisement
versions)
Promotion Management (Marketing Positioning the Brand (Definition)

DEFINITION OF BRAND POSITIONING:

A company’s attempts to influence the customer’s (target

market’s) perception of its brand by presenting (communicating)
it in a certain way through:

Advertising
Point of sale material
Communications)

Direct mail
PR
Etc

NB! The brand is actually positioned by the consumer – all the

company can do is send “positioning prompts” to influence.
Promotion Management (Marketing Positioning: How to Build a Brand that Sells

Focus
Choose one distinctive thing that will give you the edge
Halo effect
Invest in one positive image that will impact on the whole
portfolio
Start with current position
Turn current customer perceptions into benefits (if gap
between perception and reality is too big, they won’t make
Communications)

the leap)
Be different
Positioning is about clear, positive difference
Be distinctive
Message need to be unique, hard-hitting, sensory, creative
Promotion Management (Marketing Developing a Brand Positioning

3 ESSENTIAL COMPONENTS FOR DEVELOPING A

CLEAR BRAND DEFINITION:

Clear vision – why are you in business?; where are

you going? (3M: “to solve unsolved problems
innovatively”)
Concise meaning – what your brand represents to
the marketplace
Communications)

Understand parameters of relevance – what

your brand is and what it is not (limits to which you
can extend your brand beyond its core meaning
without compromising your credibility)

Examples – Disney (clear vision – “to make people

happy”); Microsoft (vision – “a computer on every
desk in every home”)
Promotion Management (Marketing Positioning – Organisational Alignment

ORGANISATIONAL ALIGNMENT PROGRAMME

Use “tagline” or theme – can make or break brand

building
Identify a few words that communicate the full weight
and force of brand message
All activities get their energy from this positioning
Communications)

device.
Tagline must:
Provide clear and recognisable differentiation
Respond to customer’s most pressing needs in a
believable manner
Provide guidance for management decision-making,
hiring, training and resource allocation
Promotion Management (Marketing Positioning the Brand – Key Factors

Successful brands are not created overnight – result of

careful positioning, supported by long term strategies
and consistent investment
Frequent change in brand positioning – customer
becomes confused
Communications)

Considerable time and effort must be spent in

understanding how the customer perceives the brand,
before thought can be given to changing that
perception
Changes in customer perception – only achieved in
small steps over long periods of time
Promotion Management (Marketing Positioning & Communication Process

3 steps:

Choose brand identity

Begin positioning
Communicate (marketing mix):
Product / service (together with packaging, logo,
design)
Communications)

Price (including discounts, etc)

Place (where and how it is distributed)
Promotion (advertising above and below the line,
PR, sponsorship, etc)
Promotion Management (Marketing Positioning & Communication

Positioning is the development and communication of a

differential advantage that makes the organisation’s product
or service superior and distinctive in the perception of target
customers.
Communications)

Positioning should be meaningful to the target market

segment, believable and unique (biggest, most reliable, etc).
Positioning involves giving the target market segment the
reason for buying your product.
 Promotion Management (Marketing
Communications)

Price

Low

Quality
Low
High
Positioning Map

High
Promotion Management (Marketing Communicating the Brand (cont)

Recently, experts have stressed the inadequacy of

relying on mass media to communicate a brand:

Cost of mass media is increasing

Poorly targeted for today’s increasingly fragmented
markets
Communications)

Use the “new media” -- direct marketing, database

marketing and building relationships (vouchers, free
samples, advice booklets – build relationship with
customer). Rather rely on these to communicate
brands successfully
Promotion Management (Marketing Communicating the Brand (cont)

INTERACTIVE BRAND COMMUNICATION

New phenomenon brought on by:

Reduced effectiveness of mass media advertising
Emergence of the new media
Emphasis on relationship and database marketing
Communications)

Other
Free telephone numbers
Care lines
Eliciting feedback (not just complaints) from
customers
Loyalty cards and clubs (e.g. Voyager)
Promotion Management (Marketing Brand Management in the New Economy

Brand used to guide all activities surrounding it

Coordinate these activities
Manage relationships with external partners and agencies
(research companies, advertising agencies, and channels)
Whole organisation must understand brand
Integrated approach to brand management – key issues:
Cross functional working
Company culture
Communications)

Internal communication
CEOs important role to personify the brand (e.g. Richard
Branson, Bill Gates, Raymond Ackerman)
The corporate brand is of increasing importance (e.g. Virgin) –
the corporate brand sells the product!
New corporate identities created if parent company has
inappropriate or unclear associations (Flora Food Co, Unilever)
Promotion Management (Marketing New Keys to Brand Building

Use of marketing communications (mass-market

advertising-agency model) as primary driver of corporate
brand management is fast becoming obsolete.
Replaced by an array of communications channels that
can target increasingly narrow customer segments.
All experiences affect brand image. Customer experience
is key to brand building (e.g. Harley Davidson – owner
groups, rallies)
Communications)

Align communication of brand to all 4 main audiences –

customers, investors, employees and regulators (media,
public interest organisations). Align -- key to building
brand equity.
Communication messages need to line up with
experiences of customers.
Ensure that entire business deliver the promise implicit in
the brand (favourable advertising versus negative
service experience – the latter will be remembered)
Promotion Management (Marketing Class Discussion

BMW

“BMW cannot afford to allow the emotional appeal of

the brand to be displaced by purely technical
dimensions.”

How can BMW build new emotional and intangible

Communications)

hooks?

What do you think BMW’s branding strategy should

be?
Promotion Management (Marketing Class Discussion

Canon

What makes the Canon story special?

Discuss / evaluate the Canon communication
strategy
Communications)
Promotion Management (Marketing Websites on Positioning

http://www.aniota.com/~jwhite/success0.html
Communications)