MKX2521 Brand Management – Flashcards
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Defining "Brand" #1
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De Chernatony and dall'Olmo Riley (1999): A multidimensional construct whereby managers augment product/service offerings with values and this facilitates the process by which consumers confidently recognize and appreciate those values
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Defining "Brand" #2
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Keller (2003): A brand is a name, term, sign, symbol, or design which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors
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"Brand" in practical terms
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• The identity of the branded product becomes clearer to both brand manager and consumer • ...a distinctive entity that differentiates a relevant, enduring and credible promise of value associated with a product and indicates the source of that promise
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Customer Based Brand Equity is
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the differential effect of brand knowledge on consumer response to marketing of the brand
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Brand Knowledge Framework
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Know the diagram
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Brand Knowledge leads to
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Brand knowledge leads to CBBE. -Customer is aware of and familiar with the brand -Customer holds some strong, favorable and unique brand associations in memory -Keller
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Building CBBE; Brand Knowledge Structures depend on
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-Initial Choices for the brand elements -The supporting Marketing program and the manny by which the brand is integrated into it -Other associations indirectly transferred to the brand by linking it to some other entities -Deliberately or accidentally
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Benefits of +ve CBBE
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-Greater Brand Loyalty -Larger price premiums -Greater trade support&co-op -Increased MarComm Effectiveness -Licensing Opportunities -Support Brand Extensions -Graduate jobs -Customers' lives are easier -Brand Managers' jobs are easier
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Disadvantages of CBBE
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-Difficult2change perceptns -Positioning Shifts -Volvo? Connex/Metro? -Inaccurate/unwelcome associations -Innumerate Marketers -Boring Academics -Ignorant Prejudice -Racism -Blonde Stereotypes -Fraud -Phishing
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Strategic Brand Management Process
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1.Identify & Establish Brand Positioning & Values 2.Plan & Implement Brand Marketing Programs 3.Measure & Interpret Brand Performance 4.Grow & Sustain Brand Equity
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1.Identify & Establish Brand Positioning & Values
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-Mental Maps -Competitive Frame of Reference -POPs & PODs -Core Brand Values
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2.Plan & Implement Brand Marketing Programs
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-Brand Matrix -Mixing & Matching of Brand Elements -Integrating Brand Marketing Activities -Leveraging of 2ndary assoc.s
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3.Measure & Interpret Brand Performance
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-Brand Value Chain -Brand Audits -Brand Tracking -Brand Equity Management System
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4.Grow & Sustain Brand Equity
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-Brand Product Matrix -Brand Portfolio & Hierarchy -Brand Expansion Strategies -Brand Reinforcement & Revitalization
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CBBE Pyramid:
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Know the Triangle: (Left side Rational, Right side Emotional) Consumer-Brand Resonance Consumer Consumer Judgements Feelings Brand Brand Performance Imagery Brand Salience
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Salience Dimensions
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Depth of Brand Awareness -Ease of recognition & recall -strength&clarity of category membership Breadth of brand awareness -purchase consideration -consumption consideration
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Performance Dimensions
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Primary characteristics & supplementary features -how to judge? Goods Characteristics -reliability, durability, serviceability Service Characteristics -effectiveness, efficiency, empathy Style,Design Price
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Imagery Dimensions
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User Profiles -Demog&psychol chars -actual/inspirational -group perceptions -- popularity Purchase&usage situations -type of channel, specific stores, ease of purchase -time, location, context of usage Personality & values -sincerity, excitement, competence, sophistication & ruggedness History, heritage & Experiences -Nostalgia, memories
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Judgement Dimensions
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Brand Quality -Value & Satisfaction Brand Credibility -Expertise, Trustworthiness, Likeability Brand Consideration -Relevance Brand Superiority -Differentiation
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Feelings Dimensions
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-Warmth -Fun -Excitement -Security -Social Approval -Self-respect -Of the brand itself, not peripherals -What is this for Monash? Coke? L'Oreal?
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Resonance Dimensions
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-Behavioral Loyalty -Frequency & amt of repeat purchases -Attitudinal Attachment -Love Brand/Proud of Brand -Sense of Community -Kinship -Affiliation -Active Engagement -Seek info -Join club -visit website, chatrooms
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Sub-Dimensions of CBBE pyramid
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Know the Pyramid
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Parts of the brand
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Functional: -Satisfying performance needs Representational: -Satisfying personal expression needs -Particularly important with intangible products In Both cases, perceived value exceeds cost: -Nash Equilibrium
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Components of the brand
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Legal Instrument: -Linoleum, Hoover, PC, Rollerblades, Bandaid, Kleenex Logo: -Bass, McDs, Coke -A surprisingly small part of branding Company Name: -Telecom -> Telstra -The virtuous cycle: McDs, Volvo, Monash -Jagermeister
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Components of the brand 2
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Shorthand: -7bits of info max -Champagne, Schapelle, Ferrari -Meaning can be unclear - Monash:"sustainable" Risk Reducer: -Performance, Financial, Time, Social, Psychological, Physical Positioning: -Happens in a customer's mind -Volvo, forever second?
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Components of the brand 3
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Personality: -Singapore girl, sports stars, politicians Cluster of Values: -Price/value, product, personality; eg. virgin Vision: -Inspirational leadership; shared values Added value: -Must be genuine value Identity & Reality
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Brand Positioning
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Act of designing the company's offer&image so that it occupies a distinct and valued place in the target customer's mind
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Brand Positioning
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Define competitive frame of reference: -target market -nature of competition Define desired brand knowledge structures -POP -necessary -competitive -POD -strong, favorable, unique
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POPs & PODs
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Points of parity -"the same as" Points of difference -"better than" On what criteria
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Identifying & Choosing POPs&PODs
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Desirability criteria (consumer perspective) -personal relevance -distinctive & superior -belivable & credible Deliverability criteria (org'n perspective) -Feasible -profitable -pre-emptive, defensible & difficult to attack
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Core Brand Values
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-Set of abstract concepts or phrases that characterize the 5-10 most impt dimensions of the mental map of a brand -relate to POP&POD Mental Map -> Core Brand Values -> Brand Mantra
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Brand Mantras
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A brand mantra is an articulation of the "heart & soul" of the brand: -brand mantras are short 3 to 5 word phrases that capture the irrefutable essence or spirit of the brand positioning & brand values Nike:-Authentic Athletic Performance Disney:-Fun Family Entertainment Bic:-???
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So how to put this into practice?
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-Resourcing -IMC -2ndary associations
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IMC & CBBE
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It doesn't matter HOW brand associations are formed, only the actual strength, favorability (or lack of), and uniqueness -Melb better cuz Nobel prize winner worked 60 yrs ago; older buildings -Monash better b/c of peter dixon, lawyers, IVF -Nonsense, of course -But.. Perception is reality Climate Change?
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Audience communication option overlap
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know the Venn diagram
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Leveraging 2ndary associations
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Brand assocs also link2other entities, creating 2ndary assocs: -Company (branding strategies) -Cty of origin (identification of product origin) -Chnls of distribution (thru chnls strategy) -Other Brands (co-branding) -Characters (thru licensing) -Celebrity (endorsement advertising) -Events (sponsorship) -Other 3rd party sources (awards & reviews)
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2ndary assoc.s may lead to a transfer of:
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-Response-type associations -Judgements (credibility) -Feelings -Meaning-type associations -Product/service performance -product/service imagery
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2ndary assoc Transfer depends on
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-Awareness & knowledge of entity -Perceived relevance of entity linkage -fit -cue overload -attributions -evaluative consistency with brand assoc.s
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Designing the Brand Hierarchy
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-No. of levels: -Principle of simplicity: least lvls possible; complexity of branding match product involvement -Principle of clarity: r/s of brand elements obvious&transparent -Lvls of awareness, types of assoc.s @ each lvl -Principle of relevance: create global assocs, relevant across as many indiv items as possible -Principle of differentiation: Differentiate individual items & brands as much as possible
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Designing the Brand Hierarchy
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-Decide how to link brands from diff lvls for a product -Principle of prominence: relative prominence of brand elements affects perceptions of product distance & e type of image created for new products -Decide how to link a brand across products -Principle of commonality: the more common elements shared by products, the stronger the linkages
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Brand Extension
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Use of existing brand name to enter a completely different product class -diff. to line extension (use of existing brand within existing product class/category -btw 60-70% of all new products are extensions; in some categories, up to 95% (US FMCG)
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Brand v line extension
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Product Category New Existing New Product Flanker Brand New brandname Brand Extension Line Extension Existing
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Adv. of extensions
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can potentially help new product acceptance: -reduce risk perceived by customers&distributors -decrease cost of gaining dist&trial -increase efficiency of promotional expenditures -avoid cost (&risk) of developing new names -allow for packaging & labelling efficiencies -permit consumer variety seeking
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adv. of extensions
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Can also provide "feedback" benefits to the parent brand & e company as a whole -enhance the parent brand image -improve strength, favourability & uniqueness of brand assocs -improve perceptions of company credibility -convey broader brand meaning to customers -clarify core benefit proposition & business definition of the company -bring new customers into the franchise & increase market coverage
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disadv. of extensions
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Risky Can potentially result in these costs: -cannibalize sales of parent brand -hurt image of parent brand -if extension fails -even if extension is successful -Opportunity cost Do great brands avoid extension?
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Model of Extension Evaluations
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Creating extension equity depends on 3 factors: 1. Salience of parent brand assocs in ext. context 2.Favorability of inferred assocs in ext. context 3.Uniqueness of inferred assocs in ext. context
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Brands have value
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A reservoir of future cash flow
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Methods of Measuring Brand Equity
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-Qualitative -Quantitative Pros&cons? When is each appropriate?
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Quantitative
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Consumer Surveys -brand recognition, recall, imgae, purchase, intentions, loyalty, brand r/s -google searches -twitter mentions, FB fans -experiments -eye tracking
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Brand Dynamics
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-Measures & explains a brand's consumer equity -for each brand the system has 2 key components -consumer value -the brand pyramid
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How they calculate brand value
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Intangibles * Brand Contribution * Brand Multiple
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WPP BRANDZ & Millward Brown Brand Dynamics Pyramid
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-Bonding -Advantage -Performance -Relevance -Presence
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Financial world valuation of Coke
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Sales $9b 30% oper. margin -->operating profit $2.7b GENERIC PRODUCT: 60c capital needed for $1 sales -->$5.4b capital assumed 5% RoC for non-branded 2.7-(5.4*0.05)=2.4b Profit due to brand Adj. for brand strength: up to 33.4b in 2001 brand value was up to $68.95b
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In Practice: Interbrand
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-projected future earnings for the brand -adj. for inflation & risk -brand earnings: 3yr weighted avg. of hist. profits -exclude things that do not relate to the brand identity
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Other proprietart brand measurement systems
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Brand Asset Valuator (BAV) Millward Brown's Brand Dynamics
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Right design depends on
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-context -industry -client needs
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brand vision
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-long-term -long-term objective -aggregation of ST objectives -must be pure & clear
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Who owns a brand?
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Shareholders? Managers? Customers? Non-customers? The Market? Like having a baby?
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Brand reinforcement strategies
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Brand Awareness -what products does the brand represent? -what benefits does it supply? -what needs does it satisfy? Brand Image -how does the brand convey superiority? -what strong, favorable & unique assocs exist?
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Continuity of brand meaning
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-Subtle gradual changes as the marketplace changes -Monash as radical new niche player 50 yrs ago; market leader now. -Holden from aussie icon to global contender
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Revitalizing a Fading Brand
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Reversing a brand's fortune involves -recapturing lost sources of brand equity (eg. Kodak) -Identifying & establishing new sources of brand equity (eg. Harley) More Revolutionary than evolutionary, generally -b/c you're reversing a trend
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Expanding Brand Awareness
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Increasing Usage -Increasing lvl or qty of consumption -increasing frequency of consumption Identifying new or additional usage opportunities -communicate appropriateness of more frequent use in current situations -reminders to use Identifying new & completely diff. ways to use the brand
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Effects of brand revitalization
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-retain vulnerable customers -recapture lost customers -identify neglected segments -attract new customers -identify additional opportunities to use brand in similar way -identify completely diff., new uses
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Brand mgmt continuum
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Evolutionary, reinforce, remind, refresh, revitalize, reposition, relaunch, Revolutionary
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Retiring Brands
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Decline stage of PLC -reduce range, reduce support, harvest profits Or merge/consolidate -to preserve shelf space -use mgmt time efficiently -unilever 1600 to 400 brands Consider exit barriers -Pharmaceuticals
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Disadv. of going global
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-Consumption patterns differ across countries -C responses 2 mktg stimuli diff. across coutries -is this a problem? -mkts diff. across countries -legal, infrastructure variations
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Standardization v. Customization
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"think global, act local" -greenies "think local, act local" -coke
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Do the research properly
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-Does existing mental map apply in new mkt? -what is lvl of awareness? -how valuable are assocs? -what changes need to be made 2 mental map? -how should changes be made?
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set usable rules and use them
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global brand charter -what the brand is & what it is not eg Disney -never ever license disney images for toilet paper -require permission from burbank to license -can license w/o permission (t-shirts) -with overriding rules
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measure it
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-track the brand -global brand equity measurement system -where possible -the brand mantra, soul, values
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Characteristics of Strong Brands
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-Understand brand meaning & mkt appropriate products -properly position brands -superior delivery of desired benefits -maintain innovation&relevance 4 e brand -establish credibility&create appropriate brand personality& imagery -communicate w a consistent voice -employ a full range of complementary brand elements&supporting mktg activities -strategically design&implement a brand hierarchy
