Managing Brands for Competitive Advantage

Brand

Is a word, mark, symbol or a combination of them used to identify the marketers product or service.

Brand Name

Is something which can be vocalized or spoken.

Brand Equity

Brand Equity - Goodwill

The intangible value of a company beyond the value of its physical assets. Elements to brand equity:
Trust and Satisfaction Measures:
Brand awareness, levels perceived brand quality, percentage of purchases and repeat purchases.

Strategies for Brand Equity

Broadening Distribution
Not only available in their store but other retailer stores.

Brand Extensions
The application of an established brand name to new product offerings.
Ex. Food supplement (Glutathione)

Co-Branding
Like a multi-tier branding.

Brand Licensing
Company owning the brand

Brand Equity Added value that a certain brand name gives to a product in the marketplace. Gives high profits and stock returns. Also named: GLOBAL BRANDS

Coca Cola is the most valuable and most recognize brand in the world.

McDonalds created GLOBALIZATION. Through their global brand, service, and company strategy.

What makes a Global Brand POWERFUL?

Measures brand equity in dollar values. One that sells at least 20 percent outside its home country. Four dimensions:
Differentiations Relevance Esteem Knowledge

Differentiation
Brands ability to stand apart from competitors.

Stand out in consumers minds as symbols of unique product characteristics

Relevance
The real and perceived appropriateness of the brand to a big consumer segment.

Large number of consumers must feel a need for the benefits offered by the brand

Esteem
Combination of perceived quality and consumer perceptions about the growing or declining popularity of a brand.

A rise in perceived quality or in public opinion about a brand enhances a brands esteem.

Knowledge
Extent of customers awareness of the brand and understanding of what a good or service stands for.

Knowledge implies that customers feel an intimate relationship with a brand.

Product Identification

Trademark
A brand for which the owner claims exclusive legal protection. Should not be confused with a trade name.
Ex.
Coca-Cola Company = tradename

Coke = trademark

Trademark protection offers an exclusive legal right to use its brand name, mark, slogan, and others.

Trade Dress
Visual cues used in branding create an overall look. Related to color selections, sizes, package and label shapes, and similar factors.

Trade Name
Includes individual name and surnames, firm name, device or words used by a manufacturer and others to identify their business.
Ex.

Nestle Philippines, Inc. Coca-cola Bottlers Phils. Inc. Magnolia Phils. Inc. Jose Maria College of Davao Smart Communications Inc. Globe Telecom, Inc.

Trade Character
Is a brand mark that is personified.

Service Mark
A mark is used in the sale or advertising of services to identify the services of one person and distinguishes them from the marks, names, symbols titles, designation, slogans, character name and distinctive features of advertising.

Choosing a Brand Name

5 Potential sources to choose brand names:
Under brand extension, an existing name is used with a new product.
Sports Illustrated for Kids/ Smart Gold

For private brand, the reseller specifies the name.

Parisian shoes a shoe brand of SM Shoemart

 If a new name is sought, these alternatives are available. Initials = KFC Invented Name = Kleenex Numbers = 20th Century Fox Mythological = Samsonite Luggage Character Personal Name = Nenita Meatshop Geographical = Philippine Airlines Dictionary Word = Silver Swan Soy Sauce Foreign word = Nestl Combination = Head & Shoulder Shampoo

 With a licensing agreement to cover them from imitations, piracy, and copyright. In co-branding, two or more brand names are used with the same product to gain from the brand images of each.
Ex. SM-BDO Credit Card Ice Age 3 Happy Meal @ McDonalds Colgate-Palmolive Products

Creating a Brand Image

Brand Image Is an impression created by brand messages and experiences and assimilated into a perception or impression of the brand. Image Makes a statement about a brands personality. Adds value to a brand because the image can communicate something about the buyer to other people. Ex. Harley-Davidsons (image of an outlaw) motorbike ni Rudy Duterte

Look at how the names of these Universities are presented. How well do you think the look of each college logo matches up with the image you have of each school?

Brand Characteristics
Tangible
Design Performance Ingredients/ components Size/ Shape Price Marketing Communication

Intangible
Value Brand image Image of stores where sold Perceptions of users of brand

Brand Transform Products

How powerful is branding?
A brand and what it represents can affect what people are willing to pay for a product.
Ex. Panasonic against Sony

Store Brand
Is a brand used exclusively by one chain of stores for a line of products made to the chains specifications.
Ex. Gmall vs. JS Ilustre

Brands Make Promises

Brand is a promise
This promise sets expectations for what a person considers likely to occur when using a product. Its a contract between customer and brand

When a promise is strong and the product delivers, the promise becomes a platform for helping build a long-term relationship with satisfied customers.

Desired Brand Position

Brand Position
The standing of a brand in comparison with its competitors in the minds of customers, prospects, and other stakeholders. Ex. When people think of cars, they think of Volvo as the safest, Corvette as the sportiest, and Ford as the most practical. Challenge is to select a position that can be realistically supported by the product, the company, and the marketing that can be appreciated by customers. Ex. Assured Consistent Quality Education JMC

Managing a System of Brand

 As companies expand more of their product, they extend their brands.

Multi-tier branding
The use of two or more brands (all owned with the same company) in the identification of a product. Corporate brand name is the umbrella brand
Example PepsiCo. (Mountain Dew, 7UP, Mirinda, Pepsi, Diet Pepsi, Lays, Doritos, Ruffles, Cheetos

Multi-tier Branding Reasons to use:

1. Take advantage of the value of the corporate name. 2. Strengthen the corporate brand by connecting it with a successful product line. 3. A product brand helps differentiate the offering from other products sold by the company, as well as from competing products. 4. Combines two or more sets of brand perceptions with the idea that two or more brands are stronger and more attractive than a single brand.

Managing a System of Brand

The use of corporate brand is intended to communicate trust and quality. To communicate benefits as performance, reliability, and image. How much emphasis to give each brand.

How Brand Relationship created and Maintained

Regis Mckenna A successful brand is nothing more than a special relationship. Brand success:
Retaining customers Good customer relationships lead to retention
Builds long term effort to develop trust.

Customer bill of rights

Customer-centric philosophy that drives retention strategy.

Undesired Outcomes
Customers who were given over promised will ultimately be less satisfied than those who haven't been. Disappointed customers become negatives spokespersons for the grand Disappointed customers are less likely to buy again; sale is one time transaction.

Benefits of Brand Relationships

Impact on Cost
Selling to current customers costs less than attracting new customers Relationships spread the cost of acquisition Loyal customers are brand advocates Satisfied customers require less handholding.

Benefits of Brand Relationships

Impact on Sales/Profits
Loyal customers buy more Loyalty increases long-term customer value Fewer defections increase sales

Benefits of Brand Relationships

Benefits to the customer
Less risk Fewer decisions Fewer Switching costs Greater buying efficiency Increased association, self-identification