BRANDING AND MARKETING PROMOTION STRATEGIES (Part I)

Core Text:

Strategic Brand Management

by

Kevin Lane Keller (2nd Edition) Presented by: Dr. Shanthi Venkatesh, LIBA - 2007

BRANDS AND BRAND MANAGEMENT

Ref: Chapter 1 of Core Text

What is a Brand?
Definition: A brand is a product that adds other dimensions that differentiates it in some way from other products designed to satisfy the same need.
Ref: Chapter 1 of Core Text

Why Do Brands Matter?

 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

Ref: Chapter 1 of Core Text

Why Do Brands Matter? (2)

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


Ref: Chapter 1 of Core Text

Can Anything Be Branded? Branded?

 Physical Goods  Services  People and

and Distributors  Online Products and Services

 Retailers
Ref: Chapter 1 of Core Text

Organizations  Sports, Art and Entertainment  Geographic Locations  Ideas and Causes

Branding Challenges And Opportunities

 Savvy

Customers  Brand Proliferation  Media Fragmentation  Increased Competition  Increased Costs  Greater Accountability
Ref: Chapter 1 of Core Text

The Brand Equity Concept




Basic Principles of Branding and Brand Equity:

Differences in outcomes arise from the added value endowed to a product as a result of past marketing activity for the brand.  This value for a brand can be created in many different ways.  Brand equity provides a common denominator for interpreting marketing strategies and assessing the value of a brand.  There are many different ways in which the value of a brand can be manifested or exploited to benefit the firm.
Ref: Chapter 1 of Core Text

Strategic Brand Management Process

 Identifying

and Establishing Brand Positioning and Values  Planning and Implementing Brand Marketing Programs  Measuring and Interpreting Brand Performance  Growing and Sustaining Brand Equity
Ref: Chapter 1 of Core Text

CHAPTER 2

CUSTOMERCUSTOMER-BASED BRAND EQUITY

Ref: Chapter 2 of Core Text

Sources Of Brand Equity

Brand Awareness Consequences of Brand Awareness
 Learning advantages  Consideration

  

advantages  Choice Advantages



Establishing Brand Awareness

Brand Image Strength of Brand Associations Favorability of Brand Associations Uniqueness of Brand Associations

Ref: Chapter 2 of Core Text

Building A Strong Brand

The Four Steps of Brand Building:
   

1. 2. 3. 4.

Identity (Who are you?) Meaning (What are you?) Response (What about you?) Relationship (What about you & me?)

Ref: Chapter 2 of Core Text

CustomerCustomer-based Brand Equity Pyramid

Relationship Resonance Judgments Performance Feelings Meaning Imagery Identity Salience Ref: Chapter 2 of Core Text Response

CustomerCustomer-based Brand Equity Pyramid (2)

  Brand Judgments: The Brand Salience: This relates to aspects of customers personal awareness of the brand opinions and evaluations with regard to the brand  Brand Performance: This relates to ways in  Brand Feelings: The which product/ service customers emotional meets customers needs responses and reactions with respect to the brand  Brand Imagery: Its how customers visualize a  Brand Resonance: The brand abstractly, with ultimate relationship & no relevance to what the level of identification brand actually does that the customer has with the brand

Ref: Chapter 2 of Core Text

CHAPTER 3

BRAND POSITIONING AND VALUES

Ref: Chapter 3 of Core Text

Identifying and Establishing Brand Positioning

 Basic

Concepts  Target Market  Nature of Competition  Points of Parity and Points of Difference
Ref: Chapter 3 of Core Text

Identifying and Establishing Brand Positioning (2)

Basic Concepts: According to the CBBE model, it is necessary to decide:   

1. Who the target consumer is 2. Who the main competitors are 3. How the brand is similar to these competitors, and 4. How the brand is different from these competitors

Ref: Chapter 3 of Core Text

Identifying and Establishing Brand Positioning (3)

Target Market:  Segmentation Bases: a) Behavioral b) Demographic c) Psychographic d) Geographic  Segmentation Criteria: a) Identifiability b) Size c) Accessibility d) Responsiveness
Ref: Chapter 3 of Core Text

Identifying and Establishing Brand Positioning (4)

Nature of Competition:  Channels of Distribution  Competitors Resources  Competitors Capabilities  Competitors Likely Intentions  Other Competitive Factors (Porters 5Force Model refers)
Ref to Chapter 3 of Core Text

Identifying and Establishing Brand Positioning

Points of Parity and Points of Difference:  1. Points of Difference Associations  2. Points of Parity Associations  3. Points of Parity versus Points of Difference
Ref: Chapter 3 of Core Text

Positioning Guidelines
Defining and Communicating the Competitive Frame of Reference  2. Choosing Points of Parity and Points of Difference  3. Establishing Points of Parity and Points of Difference  4. Updating Positioning Over Time
Ref: Chapter 3 of Core Text

 1.

Positioning Guidelines (1)

Defining and Communicating the Competitive Frame of Reference:
A starting point in defining a competitive frame of reference for brand positioning is to determine Category Membership. Membership indicates the products or set of products with which a brand competes. Communicating category membership informs the consumer about the goals that they might achieve by using a product or service.
Ref: Chapter 3 of Core Text

Positioning Guidelines (2)



Choosing Points of Parity and Points of Difference: Points of Parity: These are driven by the needs of category membership and the necessity of negating competitors PODs. Points of Difference: These are based on the following criteria: 1. Desirability: In terms of a) Relevance b) Distinctiveness, and c) Believablity 2. Deliverability: In terms of a) Feasibility b) Communicability, and c) Sustainability

Ref: Chapter 3 of Core Text

Positioning Guidelines (3)

Establishing Points of Parity and Points of Difference:  1. Separate the attributes: Launch two marketing campaigns, each one devoted to a different brand attribute or benefit.  2. Leverage Equity of another Entity: Link the brand with a well-liked celebrity, cause or event.  3. Redefine the Relationship: Use attitude change strategies to convert negative perspectives about the brand to positive ones.
Ref: Chapter 3 of Core Text

Positioning Guidelines (4)

Updating Positioning Over Time:  1. Laddering: This strategy is to deepen the meaning of the brand to tap into core brand values or other more abstract considerations.  2. Reacting: This could imply no reaction to moderate or significant reactions depending on level of competitive threat.
Ref: Chapter 3 of Core Text

CHAPTER 4

CHOOSING BRAND ELEMENTS TO BUILD BRAND EQUITY

Ref: Chapter 4 of Core Text

Criteria for Choosing Brand Elements

 1.

Memorability  2. Meaningfulness  3. Likability  4. Transferability  5. Adaptability  6. Protectability

Ref: Chapter 4 of Core Text

Options and Tactics for Brand Elements

Brand Names  2. URLs (Uniform Resource Locators)  3. Logos and Symbols  4. Characters  5. Slogans  6. Jingles  7. Packaging
Ref: Chapter 4 of Core Text

 1.

CHAPTER 5

DESIGNING MARKETING PROGRAMS TO BUILD BRAND EQUITY

Ref: Chapter 5 of Core Text

New Perspectives on Marketing

     

Five Major Drivers of the New Economy: Philip Kotler identifies them as under: 1. Digitalization and connectivity 2. Disintermediation and Reintermediation 3. Customization and Customerization 4. Industry Convergence 5. New Customer and Company Capabilities (Remaining topic is for Self-study)
Ref: Chapter 5 of Core Text

Product Strategy
     

Perceived Quality and Value: 1. Brand Intangibles 2. TQM and Return on Quality 3. Value Chain Relationship Marketing: 1. Mass Customization 2. Aftermarketing 3. Loyalty Programs

Ref: Chapter 5 of Core Text

Pricing Strategy
   

Consumer Price Perceptions: Price Band strategies Value-based Pricing Strategies Setting Prices to Build Brand Equity: Value Pricing based on: a) Product design and delivery b) Product costs, and c) Product prices Everyday Low Pricing (EDLP): A strategy based on low pricing as well as discounts and promotions to consumers at regular intervals.

Ref: Chapter 5 of Core Text

Channel Strategy
Channel Design: Broadly, channel types can be classified into Direct and Indirect channels.  Direct Channels: a) Company-owned stores b) Leased/Rented shopping-space in larger department stores.  Indirect Channels: a) Distributors and Dealers b) Retailers c) other middlemen  Web Strategies: Today, these are extremely powerful channels if supported by efficient physical brick & mortar channels.
Ref: Chapter 5 of Core Text

CHAPTER 7

LEVERAGING SECONDARY BRAND KNOWLEDGE TO BUILD BRAND EQUITY

Ref: Chapter 7 of Core Text

Conceptualizing the Leveraging Process

Creation of New Brand Associations: By making a connection between the brand and another entity, consumers may form a mental association from the brand to this entity and, consequently, to any or all associations, judgments, feelings and the like linked to that entity Effects on Existing Brand Knowledge: Three factors are important in predicting the extent of leverage resulting from linking the brand to another entity: i) Awareness and knowledge of the entity ii) Meaningfulness of the knowledge of the entity, and iii) Transferability of the knowledge of the entity Ref: Chapter 7 of Core Text

Company
The branding strategies adopted by a company that makes a product or offers a service are an important determinant of the strength of association from the brand to the company and any other existing brands. Three main branding options exist for a new brand: 1. Create a new brand 2. Adapt or modify an existing brand 3. Combine an existing and new brand

  

Ref: Chapter 7 of Core Text

Country of Origin
Besides the company that makes the product, the country or geographic location from which it is seen as originating may also become linked to the brand and generate secondary associations. Thus, a customer may choose to wear Italian suits, exercise in American sports shoes, drive a German car, and drink English beer.
Ref: Chapter 7 of Core Text

Channels of Distribution
Channels of distribution can directly affect the equity of the brands they sell by the supporting actions that they take. Retail stores can indirectly affect the brand equity of the products they sell by influencing the nature of associations that are inferred about these products on the basis of the associations linked to the retail stores in the minds of consumers.
Ref: Chapter 7 of Core Text

CoCo-Branding
Co-branding: Also called brand bundling or brand alliances-occurs when two or more existing brands are combined into a joint product or are marketed together in some fashion. Ingredient branding: This is a special case of cobranding that involves creating brand equity for materials, components, or parts that are necessarily contained within other branded products.
Ref: Chapter 7 of Core Text

Licensing
Licensing involves contractual arrangements whereby firms can use the names, logos, characters, and so forth of other brands to market their own brands for some fixed fee. Because it can be a shortcut means of building brand equity, licensing has gained popularity in recent years.
Ref: Chapter 7 of Core Text

Celebrity Endorsement (1)

Using well-known and admired people to promote products is a widespread phenomenon with a long marketing history. The rationale behind these strategies is that a famous person can: 1. Draw attention to a brand, and 2. Shape the perceptions of the brand by virtue of the inferences that consumers make based on the knowledge they have about the famous person.

 

Ref: Chapter 7 of Core Text

Celebrity Endorsement (2)



  

Potential Problems: 1. Celebrity endorsers can be overused by endorsing so many products that they lack any specific product meaning or are just seen as overly opportunistic or insincere. 2. There must be a reasonable match between the celebrity and the product. 3. Celebrity endorsers can lose popularity thus diminishing their market value to the brand. 4. Many consumers feel that celebrities are doing the endorsement only for money.

Ref: Chapter 7 of Core Text

Sporting, Cultural, or Other Events



1. A brand may seem more likable or

even trustworthy by becoming linked to an event.  2. Sponsored events can contribute to brand equity by becoming associated to the brand and improving brand awareness, adding new associations, or improving the strength, favorability, and uniqueness of associations.
Ref: Chapter 7 of Core Text