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What is a Brand?
Old Norse word brandr to burn. Branding basis people, place, animal or bird, scientific term, and things or objects. Branding contain inherent product meaning, and attributes or benefits.
Branding could be done for product (physical good, retail store, person, organization, place, or an idea.
Brand = product + other differentiating dimensions (physiological and psychological)
Product Levels?
Core benefits fundamental need or want. Generic product basic offering. Expected product normal expectation from a product in the market. Augmented product differentiating and distinguishing attributes, benefits, or related service. Potential product ideal and in future.
Sports, Arts, and Entertainment Cricket, M F Hussain, shows like Indian Idol
Geographic Locations Australia, Alaska, switzerland, Incredible India Ideas and Causes Red Cross, Child Labour, etc
Determinants of Brand Longevity Vision of the mass market? Managerial persistence? Financial commitment?
Relentless Innovation?
Asset leveraging.
Some Challenges Savvy consumers, maturing market, decreasing brand loyalty. Brand proliferation, complex brand families, . Media fragmentation, eroding traditional media, new options, changes in advertising and promotional expenditures.
Types of Brands
CG products are bought much more frequently, as the name suggests, than big ticket items.
Characteristics: Cost: Expensive. Balance of product to service Service is likely to take on a more important role, before, during and after purchase.
Service brands
Service brands are characterized by the need to maintain a consistently high level of service delivery throughout hundreds, or even thousands of staff. Although a product component may be involved, it is essentially the service that is the brand. These are more complex than product brands for two reasons: because it is always harder to brand something you cant touch because they are delivered directly by employees.
Service Brands
Characteristics: Intangibility
Service brands can seldom be tried out in advance, which requires the establishment of a greater degree of trust. Inseparability of production and consumption Services cannot generally be stockpiled in advance but are produced and consumed in real time. Inconsistency Since humans are usually instrumental in delivering services.
- In both cases, however, it is the intangibles, the brand values that will attract online customers.
Media brands eg, newspapers, magazines, television channels. Not-for-profit organization brands
Non-profits are often at a disadvantage when it comes to branding. they dont have the deep pockets of corporations who can afford to hire brand specialists they dont have staff whose job it is to protect the integrity of the brand, and promote it at every turn. But successful branding can have a great effect on raising awareness of the charity and its mission, and on fund-raising
Nation brands
New ways of thinking lead to countries being positioned as tourist destinations, enhancing status of goods and services produced, and aiding under-developed countries. Government brands Governments and political parties often have strong brands as they are centerd on passionately held core values, Branding is important in both securing votes and in international diplomacy. Global brands Companies have been marketing their products and brands in different countries for decades. However they were almost always marketed according to local conditions.
Strong in home market cash flow generated from domestic market enables the company to fund a global roll-out At least minimum level of awareness, recognition and sales all over the world The products meet the same human needs world-wide, even though the physical product may be adapted locally (eg, McDonalds). Consistent positioning Consumers value the provenance of the brand, its country of origin, and even associate the countrys expertise with specific products (eg, German cars, American jeans). Focus on a specific product category Use single corporate brand name.
The decision whether to standardize or localize? Several other factors may affect the decision:
Regulatory environments vary from country to country, especially in pharmaceuticals, financial services and utilities.
The Internet allows adoption of a standardized global strategy without investing in distribution systems in each country. The threat of parallel imports from low-price to high-price countries.
Organization brands
What is an organization brand?
It is neither a product/service nor a corporate brand, it is wider than both. - It relates to all stakeholders and in many cases is rarely advertised.
The organization brand represents the impression that people inside and outside the organization have.
Brand Identity
BRAND IDENTITY
BRAND IDENTITY IS A UNIQUE SET OF BRAND ASSOCIATIONS THAT THE BRAND STRATEGIST ASPIRES TO CREATE OR MAINTAIN THESE ASSOCIATIONS REPRESENT WHAT THE BRAND STANDS FOR & IMPLY A PROMISE TO CUSTOMERS FROM THE ORGANIZATION MEMBERS
BRAND IDENTITY
Brand identity is a bundle of mental and functional associations with the brand. Associations are not reasons-to-buy but provide familiarity and differentiation thats not replicable getting it. These associations can include :
signature tune (for example - Britannia ting-ting-ta-ding) trademark colors (for example - Blue color with Pepsi) logo (for example - Nike) tagline (for example - Apples tagline is Think different), etc.
Brand identity is the total promise that an organization makes to consumers. The brand can be perceived as a product, a personality, a set of values, and a position it occupies in consumers minds. Brand identity is all that an organization wants the brand to be considered as. It is a way of externally expressing a brand to the world.
As a product: product scope, product attributes, quality/value, uses, user, country of origin As an organization: organizational attributes, local vs. global As a person: brand personality, brand-customer relationships As a symbol: visual imagery/metaphors, heritage CORE & EXTENDED IDENTITY: Core identity: central timeless essence of the brand remains constant as brand travels to new markets/products Extended identity: includes various brand identity elements, organized into cohesive & meaningful groups
Eg- Pepsi
Pepsis brand identity has transformed over the years, but primarily it has remained as a youthful brand which empowers people to enjoy their youth. The external and internal indicators of Brand Identity have been modified many times. Its logo, trademark, etc have undergone many changes over time but the distinct identity of Pepsi has been maintained. We also see a consistency in brand positioning for Pepsi as a Youth oriented brand. Its tagline in India YEH HAI YOUNGISTAN MERI JAAN exemplifies that essence.
Change the Game and First Ball ka Kaptan considering the cricket world cup and T-20 world cup have been successful in leveraging the love for the game and reinforce the association of the game with Pepsi
The CSR activities of the company also generate a lot of Brand equity, Its the only soft drink manufacturer with a positive water balance in India. Pepsis wide Product Portfolio helps in increasing the depth and Breadth of Brand Awareness.
Brand Equity
Brand Equity
Brand Equity is the value and strength of the Brand that decides its worth. It can also be defined as the differential impact of brand knowledge on consumers response to the Brand Marketing.
4 major drivers of
the new economy
II
III
Industry Convergence
IV
Impact to
Integrating marketing programs and activities
Impact to
Personalizing Marketing
Experiential marketing One-to-One marketing Permission marketing
Product Strategy
Conformance: degree of the product meet specifications Reliability: consistency of performance over time Durability: expected economic life of product Service ability: ease of servicing the product Style and design: appearance or feel of quality
Brand Intangibles
Brand attitude may also depend on more abstract product imagery. ex. Symbolism, personality 3-D Marketing (McKinsey Consulting) emphasizes 3 product benefit dimensions:
Functional benefits: product and performance attributes. Ex. quality Process benefits: ease of access to product info., convenient transaction. Relationship benefits: value based on personalized service, strong emotional relevance, differentiated loyalty rewards.
Relationship Marketing
Relationship marketing: is based on the premise that current customers are the key to long term success. 3 important relationship marketing issues:
Mass Customization
After marketing Loyalty Programs
Pricing Strategy
Value Pricing
The objective of value pricing is to uncover the right blend of product quality, product costs and product prices that satisfies needs and wants of consumers and the profit targets of the firm. Effective value-pricing strategy should strike the proper balance among the following:
Channel Strategy
Channel Strategy
Marketing channel are defined as set of interdependent organizations involved in the process of making a product or service available for use or consumption Channel strategy includes the design and management of intermediaries such as wholesellers, brokers, and retailers.
Channel Design
Direct channel: means selling through personal contacts from the company to prospective customers by mail, phone and etc. Indirect channel: sell through third-party intermediaries such as agents, wholesalers, retailers or dealers. Winning channel strategies integrated shopping experience that combines physical stores, internet, telephone and catalogs.
Product information needs are high Product customization is high Product quality assurance is important Product lot size is important Logistics are important
Indirect Channel
Pull and Push Strategies Channel Support (Marketing Partnership) Retail segmentation
Retailers are customers too. Different retailers may need different product mixes, special delivery system, or customized promotions.
Cooperative advertising
Co-op advertising: a manufacturers pays for a portion of the advertising that a retailer runs to promote the manufacturers product.
Direct Channel
Company-Owned Stores
Show the product in the way that the company want Some company stores might lack of skills, or resources
Other means
Department stores Via phone, mail, or email
Web Strategies
1. Take a trip to a department store. Evaluate the in-store marketing effort. Which categories or brands seem to be receiving the biggest in-store push? What unique instore merchandising effort do you see? (5 marks) 2. Take a trip to a supermarket. Observe the extent of private label brands. In which categories do you think private labels might be successful? Why? (5 marks)
Customer brand knowledge Customer response to brand marketing A brand has positive customer based brand equity when consumers react more favorably to a product and the way it is marketed when the brand is identified than not.
We must consider both the breadth and depth of the brand awareness; the depth is that how likely it is for a brand element to come to mind and a breadth is the range of purchase and the situations in which the brand comes to mind of the consumers. A brand we easily recall has a deeper level of brand awareness and breadth is related to the product knowledge in the memory of the consumer.
Customers view performance or measure performance in three ways: - 1. Reliability: measures consistency of performance over time and from purchase to purchase, 2. Durability; means the expected economic life of the product 3. Serviceability; the ease of repairing the product if needed.
Consumers while making purchasing decisions or choosing the brand, always use between two approaches or listen the brain (make the decision) in two ways:
Cognitive-based approach (logics) Affective-based approach (feelings)
If we look the above fig. CBBE pyramid, we have seen that there are two paths or ways from brand salience to brand resonance and consumer always choose one from them.
Brand salience Brand performance Brand judgements Brand resonance Consumers mainly focus on the performance of the brand and give importance to the features and benefits of the brand (tangible parts) while making decisions. So marketers must consider the needs of customers who uses this approach while developing brands.
Eg- Mobile brands, focus on attributes and features mainly; Hightech products that must demonstrate features by the company
Brand Knowledge
Making a brand strong: Brand knowledge Brand knowledge is the key to creating brand equity, because it creates the differential effect that drives brand equity. Brand knowledge consists of a brand node in memory with a variety of associations linked to it. (Associated network memory model)
Brand awareness : strength of the brand node or trace in memory which can be measured as the consumers ability to identify the brand under different conditions.
Creating brand awareness means increasing the familiarity of the brand through repeated exposure. Creating a positive brand image takes marketing programs that link strong, favorable, and unique associations to the brand in memory.
Branding Strategy
Leveraging the power of the brand name to cover the market more effectively
Brand associations
Why do we do it?
Phenomenally expensive to create and promote a new brand name (at least 100 150 million dollars) Too many brands out there Increase productivity of current marketing programs
Case 1
Your brand has a respectable market share but you want it to grow. What do you do?
Address segment needs more precisely
How can you use the equity of the brand name to address segment needs even better?
Sub-branding / umbrella branding
Sub-branding
Creating new brands which are part of the parent brand family expressed as suffixes of the parent brand. e.g Nike Air Jordan is a sub-brand of Nike which is the parent brand. Air Trigo, Air Mohawk are sub-brands of Nike Air. Apple I-Pod, I-Pod Mini, I-Pod Shuffle and now the I-Pod Nano
Umbrella branding
When you have many sub-brands, each linked to a common brand, then the common brand is known as the umbrella brand E.g. Ford Taurus, Ford Explorer, Ford Focus, Ford Ranger, Ford Five Hundred, Ford Freestyle, Ford Expedition, Ford Thunderbird, etc.
Case 2
Your brand has a respectable market share and you want to protect it from growing competition. What do you do?
Address that section of the market which does not buy your product
How can you attract customers who do not buy into your brands equity?
Flanker branding
Flanker Brand
Different brand name same product
Extension of an existing brand to create another product or brand with increased market share. The new product may be a different size, flavor, or type but still falls within the same category of products
Case 3
Your brand is strong in your current market. The market is saturated and you are looking to diversify. What do you do?
Identify another product and give it the same brand name
If the new product is in the same product line Line Extension If the new product is from a completely different product line Brand Extension
Brand Extension
Same brand name, new product line e.g. Reebok shoes and Reebok water. Nike shoes and Nike casuals. The concept of congruence determines the success of a brand extension strategy. E.g. Johnsons baby powder and Johnsons baby oil high congruence. But imagine Lysol toilet bowl cleaner and Lysol toothpaste!!!
Line Extension
Same brand name, different product in the same product line.
E.g. Ivory soap and Ivory shampoo; IBM PCs and IBM laptops Line extensions are safer strategies than brand extensions since congruence is always higher.
Case 4
Your brand is sold in the B2B market as a component of another product. You want the brand to get consumer recognition and equity. What do you do?
Tell consumers about your brands presence in the final product
Ingredient branding: Branding an ingredient of the main brand, which is often manufactured by a different company. E.g. Intel Inside is an ingredient brand on IBM, Dell, Compaq, etc. computers
Case 5
You have a strong brand but want to penetrate the market even better. What do you do? Complementary Branding OR Co-branding when two or more mutually reinforcing brands get together to jointly promote themselves (one is not an ingredient of another). E.g. Nike and Apple
Product-Market Matrix
Product
NEW
Market Development
Brand extension Line extension
Diversification
Brand extension
Product Development
Co-branding Ingredient branding
Market
OLD
NEW
NEW
Flanker Brand
Diversification
Brand Name
EXISTING
Line Extension
Brand Extension
EXISTING
Product Line
NEW
Brand Image
Brand Image
Brand Identity is what the brand managers think about the brand. It is the cause. Ex: It is communicated to customers in many ways like advertising, packaging, performance of the brand, after sales service, etc. Brand Image is what the customers think about the brand. It is the effect. It is the essence of all the impressions or imprints about the brand that have got imposed on the consumers mind. Ex: Head n Shoulders Anti-Dandruff shampoo
Error failure of the brand to deliver its promises, word of mouth, litigation filed against the brand expectations of the customer, emotional associations of the individual customer with the brand. Ex: Ineffective whitening cream. Imagery is the customer seen from the perspective of the product. Ex: The imagery of the user of ponds is an Indian woman who is an achiever and is confident to step out and take the world on. Thus, Ponds has a secular imagery since it goes against the tradition and gives a new dimension to the beauty and womanhood.
Brand Networking Technique a drawing of network diagram based on the consumers experiences about the brand. The name of the brand is written in a circle at the center and is connected with the other circles by lines which carry a + or - sign indicating their favorable and unfavorable experience with the brand. Ex:
Focus Groups/Focus Group Discussion used to effectively identify images perceived by the consumers for the brand in focus. Ex: Photo Sort, wherein customers are asked to chose photos that best represents the products/brands.
Constructive Techniques
Word association the brand name or advertisement slogan is given and consumers are asked to state the things that come to their mind. Ex: LG Lifes Good Sentence Completion is a slight modification where consumers are given an open-ended statement. Ex: I use Nokia mobile because Scenario Projection respondents are shown some scenarios and asked to sate their responses. Ex: Respondents may be shown a scene where a group of youngsters are chatting and sharing Ruffles potato wafers. They may then be asked to imagine themselves to be a part of the crowd and asked questions relating to the experience of having Ruffles in that situation
Factor Analysis is then used to identify the primary factors, which influence the image of the brand. It is a data reduction technique and hence the initial set of variables in the questionnaire would be grouped into appropriate factors. The factors which explain the maximum variability of the sample could be considered as those explaining the image of the brand. Ex: Hypothetical table, which indicates the perception of patients towards H-World, the chain of hospitals. (1-Partially Agree, 5-Completely Agree)
Variables Satisfactory timings for outpatients Prescribed medicines are satisfactory Consulting after surgery is done satisfactorily Rating 5 3 1
BRAND PERSONALITY
Introduction
Brand identity and brand image helps brand managers to formulate strategies to make consumers relate to the product in a much easier way Brand Personality- it is based on the premise than consumers prefer something that exhibits their characteristics or their ideal values.
The devil of Onida represents high technology and proved to be one of the successful brand personalities in India.
Sunsilk in India
Sunsilk has a caring, nurturing, gentle feminine Personality. The adverstisement, packaging, and nature of the product convey the same.
Essence:Youth
Characteristics
Family oriented, Small town, Blue-collar, All American, Conventional Sincere, Real, Ethical, Thoughtful, Caring Original, Ageless, Clasic, Genuine, Old-fashioned Sentimenteal, Friendly, Warm, Happy
Tough
Three Models to Build Brand Personality Aakers states the 3 models namely as: 1. Self-expression Model
-states that the consumer sees the brand as the kind of person he/she wishes to be Example: This is the case with Royal Enfields Bullet. The rider is considered to be very masculine when he rides the bike. Bullets personality is one that represents a macho character.
Three Models to Build Brand Personality 2. Relationship Basis Model - is liking to associate with a personality exhibited by the brand drives the purchase. The consumer wants to establish friendship with the brand and the brand need not represent their characteristics or their aspirational values. Example: Eureka Forbes is seen as a friend for life and would fit this explanation of brand personality
Three Models to Build Brand Personality 3. Functional Benefits Representation model -the brand personality is used as a vehicle to state the benefits of the brand. Example: Devil Onida
Building Brand Personality via the 4 Ps and Packaging The 4 ps of mktg- product, price, place and promotion along with packaging needs to be effectively handled to build a personality.
Relationship between consumers and brand personality
Brand / Product Related Activity
Keeps repositioning its brand Same character kept unchanged High price and exclusive distribution Frequent Promotions Sponsors relevant shows Offers a lot of warranty
Cues Obtained
No stable personality Consumers get comfortable with the personality Sophisticated Uncultured and Cheap Helpful and Supportive Reliable and Dependable
Building Brand Personality Bottom-up This method takes an entirely different route. The personality here is not used to convey the identity, rather it intacts what the consumers want from a brand of that category. It uses four-step processing defining the target audience, finding out what they need, want and like, build a consumer personality profile, and creating the product personality to match that profile.
Any Questions?