branding and marketing promotion strategies
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BRANDING AND
MARKETING PROMOTIONSTRATEGIES (Part I)Core Text:
Strategic Brand Managementby
Kevin Lane Keller (2nd Edition)
Presented by:
PROF. HIMMAT ADISARE
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BRANDS AND BRANDMANAGEMENT
Ref: Chapter 1 of Core Text
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What is a Brand?
Definition: A brand is a product that
adds other dimensions that differentiatesit in some way from other products
designed to satisfy the same need.
Ref: Chapter 1 of Core Text
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Why Do Brands Matter?
CONSUMERS:
Identification of
Source of Product
Assignment of
Responsibility to
Product Maker
Risk Reducer
Search cost Reducer
Promise, Bond, orPact with Maker of
Product
Symbolic Device
Signal of Quality
Ref: Chapter 1 of Core Text
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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
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Can Anything Be Branded?
Physical Goods
Services
Retailers and
Distributors
Online Products
and Services
People and
Organizations
Sports, Art and
Entertainment
Geographic
Locations
Ideas and Causes
Ref: Chapter 1 of Core Text
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Branding Challenges And
OpportunitiesSavvy Customers
Brand Proliferation
Media Fragmentation
Increased Competition
Increased CostsGreater Accountability
Ref: Chapter 1 of Core Text
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The Brand Equity Concept
Basic Principles of Branding and BrandEquity:
Differences in outcomes arise from the added valueendowed 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 forinterpreting marketing strategies and assessing the value
of a brand.
There are many different ways in which the value of abrand can be manifested or exploited to benefit the firm.
Ref: Chapter 1 of Core Text
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Strategic Brand ManagementProcess
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
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CUSTOMER-BASED BRANDEQUITY
Ref: Chapter 2 of Core Text
CHAPTER 2
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Sources Of Brand Equity
Brand Awareness
Consequences of
Brand AwarenessLearning 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
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Building A Strong Brand
The Four Steps of Brand Building:
1. Identity (Who are you?)
2. Meaning (What are you?)
3. Response (What about you?) 4. Relationship (What about you & me?)
Ref: Chapter 2 of Core Text
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Customer-based Brand Equity
Pyramid
Resonance
Judgments Feelings
PerformanceImagery
Salience
Ref: Chapter 2 of Core Text
Identity
Meaning
Response
Relationship
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Customer-based Brand Equity Pyramid (2)
Brand Salience: Thisrelates to aspects ofawareness of the brand
Brand Performance:
This relates to ways inwhich product/ servicemeets customers needs
Brand Imagery: Its howcustomers visualize a
brand abstractly, withno relevance to what thebrand actually does
Brand Judgments: Thecustomers personalopinions and evaluationswith regard to the brand
Brand Feelings: Thecustomers emotionalresponses and reactionswith respect to the brand
Brand Resonance: The
ultimate relationship &level of identificationthat the customer haswith the brand
Ref: Chapter 2 of Core Text
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BRAND POSITIONING AND
VALUES
CHAPTER 3
Ref: Chapter 3 of Core Text
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Identifying and EstablishingBrand Positioning
Basic Concepts Target Market
Nature of Competition
Points of Parity and Points of Difference
Ref: Chapter 3 of Core Text
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Identifying and EstablishingBrand 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
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Identifying and EstablishingBrand Positioning (3)
Target Market:
Segmentation Bases:
a) Behavioral b) Demographicc) Psychographic d) Geographic
Segmentation Criteria:
a) Identifiability b) Size
c) Accessibility d) Responsiveness
Ref: Chapter 3 of Core Text
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Identifying and EstablishingBrand Positioning (4)
Nature of Competition:
Channels of Distribution
Competitors Resources
Competitors Capabilities
Competitors Likely Intentions
Other Competitive Factors (Porters 5-
Force Model refers)
Ref to Chapter 3 of Core Text
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Identifying and Establishing
Brand PositioningPoints 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
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Positioning Guidelines
1. 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
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Positioning Guidelines (1)
Defining and Communicating theCompetitive Frame of Reference:
A starting point in defining a competitive frame
of reference for brand positioning is todetermine Category Membership. Membershipindicates the products or set of products withwhich a brand competes. Communicatingcategory membership informs the consumerabout the goals that they might achieve byusing a product or service.
Ref: Chapter 3 of Core Text
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Positioning Guidelines (2)
Choosing Points of Parity and Points ofDifference:
Points of Parity: These are driven by the needs ofcategory membership and the necessity of
negating competitors PODs. Points of Difference: These are based on the
following criteria:
1. Desirability:In terms ofa) Relevance
b) Distinctiveness, and c) Believablity2. Deliverability:In terms of a) Feasibility
b) Communicability, and c) Sustainability
Ref: Chapter 3 of Core Text
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Positioning Guidelines (3)
Establishing Points of Parity and Points ofDifference:
1. Separate the attributes: Launch two marketingcampaigns, each one devoted to a different brandattribute or benefit.
2. Leverage Equity of another Entity: Link thebrand with a well-liked celebrity, cause or event.
3. Redefine the Relationship: Use attitudechange strategies to convert negative perspectivesabout the brand to positive ones.
Ref: Chapter 3 of Core Text
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Positioning Guidelines (4)
Updating Positioning Over Time:
1. Laddering: This strategy is to deepenthe meaning of the brand to tap into core
brand values or other more abstractconsiderations.
2. Reacting: This could imply no reaction
to moderate or significant reactionsdepending on level of competitive threat.
Ref: Chapter 3 of Core Text
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CHOOSING BRAND
ELEMENTS TO BUILDBRAND EQUITY
CHAPTER 4
Ref: Chapter 4 of Core Text
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Criteria for Choosing BrandElements
1. Memorability
2. Meaningfulness
3. Likability
4. Transferability
5. Adaptability
6. Protectability
Ref: Chapter 4 of Core Text
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Options and Tactics forBrand Elements
1. Brand Names
2. URLs (Uniform Resource Locators)
3. Logos and Symbols4. Characters
5. Slogans
6. Jingles
7. Packaging
Ref: Chapter 4 of Core Text
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DESIGNING MARKETING
PROGRAMS TO BUILDBRAND EQUITY
CHAPTER 5
Ref: Chapter 5 of Core Text
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New Perspectives onMarketing
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
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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
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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 andpromotions to consumers at regular intervals.
Ref: Chapter 5 of Core Text
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Channel Strategy
Channel Design: Broadly, channel types can beclassified intoDirect andIndirect 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 efficientphysical brick & mortar channels.
Ref: Chapter 5 of Core Text
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C li i h
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Conceptualizing theLeveraging Process
Creation of New Brand Associations:
By making a connection between the brand andanother entity, consumers may form a mentalassociation 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 factorsare important in predicting the extent of leverageresulting 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
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Company
The branding strategies adopted by a companythat makes a product or offers a service are animportant determinant of the strength ofassociation from the brand to the company and
any other existing brands. Three mainbranding 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
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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 secondaryassociations. 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
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Channels of Distribution
Channels of distribution can directlyaffect the equity of the brands they sell bythe supporting actions that they take.Retail stores can indirectly affect the
brand equity of the products they sell byinfluencing the nature of associations thatare inferred about these products on the
basis of the associations linked to theretail stores in the minds of consumers.
Ref: Chapter 7 of Core Text
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Co-Branding
Co-branding: Also calledbrand bundling orbrand alliances-occurs when two or moreexisting brands are combined into a jointproduct or are marketed together in some
fashion.Ingredient branding: This is a special case of co-
branding that involves creating brand equityfor materials, components, or parts that are
necessarily contained within other brandedproducts.
Ref: Chapter 7 of Core Text
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Licensing
Licensing involves contractualarrangements whereby firms can use the
names, logos, characters, and so forth of
other brands to market their own brandsfor some fixed fee. Because it can be a
shortcut means of building brand equity,
licensing has gained popularity in recentyears.
Ref: Chapter 7 of Core Text
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Celebrity Endorsement (1)
Using well-known and admired people topromote 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 onthe knowledge they have about the famous
person.
Ref: Chapter 7 of Core Text
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Celebrity Endorsement (2)
Potential Problems: 1. Celebrity endorsers can be overused by
endorsing so many products that they lack anyspecific 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
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Sporting, Cultural, or Other Events
1. A brand may seem more likable oreven trustworthy by becoming linked toan event.
2. Sponsored events can contribute tobrand equity by becoming associated tothe brand and improving brandawareness, adding new associations, orimproving the strength, favorability, anduniqueness of associations.
Ref: Chapter 7 of Core Text
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DEVELOPING A BRANDEQUITY MEASUREMENT
AND MANAGEMENTSYSTEM
CHAPTER 8
Ref: Chapter 8 of Core Text
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The Brand Value Chain
Value Stages:
1. Marketing Program Investment
2. Customer Mindset
3. Market Performance
4. Shareholder Value
Ref: Chapter 8 of Core Text
V l S ( )
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Value Stages (1)
Marketing Program Investment: The ability ofa marketing program investment to transfer ormultiply further down the chain will depend onqualitative aspects of the marketing program
via the program multiplier. The Program Multiplier: Four factors are
important:
1. Clarity 2. Relevance
3. Distinctiveness, and 4. Consistency
Ref: Chapter 8 of Core Text
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Value Stages (2)
Customer Mindset: Five dimensions have emergedfrom research as important measures of the customer
mindset:
1. Brand Awareness 2. Brand Associations
3. Brand Attitudes 4. Brand Attachment
5. Brand Activity
Customer Multiplier: Three essential factors are:
1. Competitive Superiority 2. Channel and otherintermediary support 3. Customer size and profile
Ref: Chapter 8 of Core Text
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V l S (4)
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Value Stages (4)
Stakeholder Value: Based on all available andforecasted information about a brand andmany other considerations, the financialmarketplace then formulates opinions andmakes various assessments that have direct
financial implications for the brand value.Three important indicators are:
1. Stock price
2. Price/earnings multiple, and
3. Overall market capitalization of the firm
Ref: Chapter 8 of Core Text
Th B d V l Ch i
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The Brand Value Chain
Implications:
1. A necessary condition for value creation is awell-funded, well-designed, and well-implemented marketing program.
2. Value creation involves more than just theinitial marketing investment.
3. Each of the three multipliers can increase ordecrease market value from stage to stage.
4. The brand value chain provides a detailedroadmap for tracking value creation enablingmarket research and intelligence efforts.
Ref: Chapter 8 of Core Text
Designing Brand Tracking
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Designing Brand TrackingStudies
What to Track:
1. Product Brand Tracking
2. Corporate or Family Brand Tracking
3. Global Tracking
How to Conduct Tracking Studies:
1. Who to track
2. When and where to track How to Interpret Tracking Studies
Ref: Chapter 8 of Core Text
D i i B d T ki S di ( )
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Designing Brand Tracking Studies (1)
What to Track: Three distinct surveys can be
conducted for: 1. Product-Brand Tracking: The six-block
pyramid for brand-building can be used as abasis for design of the questionnaire.
2. Corporate or Family Brand Tracking: Someadditional questions may be added to establishlevels of corporate credibility and corporate
brand associations.
3. Global Tracking: A broader set of backgroundmeasures are needed to put brand developmentin those markets in the right perspective .
Ref: Chapter 8 of Core Text
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Designing Brand Tracking Studies (2)
Who to Track: 1. Current Customers
2. Potential Customers
3. Channel Members4. Frontline Employees (Services sector)
When and Where to Track: Options are:
Continuous Tracking Studies
Based on Stage of Product Life Cycle
Based on depth of Brand Equity
Ref: Chapter 8 of Core Text
D i i B d T ki S di (3)
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Designing Brand Tracking Studies (3)
How to Interpret Tracking Studies: For tracking
measures to facilitate actionable insights andrecommendations, they must be reliable and sensitiveas possible. This may require framing of questions in acomparative or temporal manner. It is also necessary todecide on appropriate cutoffs. For example:
What is a sufficiently high level of brand awareness?
When are brand associations sufficiently strong,favorable, and unique?
How positive should brand judgments and feelings be? What are reasonable expectations for the amount of
brand resonance?
Ref: Chapter 8 of Core Text
Establishing a Brand Equity
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Establishing a Brand EquityManagement System
Brand Equity Charter
Brand Equity Report
Brand Equity Responsibilities:
1. Overseeing Brand Equity
2. Organizational Design and Structure
3. Managing Marketing Partners
Ref: Chapter 8 of Core Text
Establishing a Brand Equity
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Establishing a Brand EquityManagement System (1)
Brand Equity Charter: A formalized documentshould spell out the following:
The firms view of the brand equity concept.
The scope of the key brands of the firm.
Specify the actual and desired equity for a brandat all relevant levels i.e. at individual productlevel and corporate level.
Strategies for managing brand equity.
Outline specific tactical guidelines for marketingprograms.
Trademark usage, packaging & communications
Ref: Chapter 8 of Core Text
Establishing a Brand Equity
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Establishing a Brand EquityManagement System (2)
Brand Equity Report: Important marketinformation that should be included:
1. Product shipments and movement
through channels of distribution.2. Relevant cost breakdowns
3. Price and discount schedules
4. Sales and market share information5. Profit assessments
Ref: Chapter 8 of Core Text
E t bli hi B d E it
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Establishing a Brand EquityManagement System (3)
Brand Equity Responsibilities:
1. Overseeing Brand Equity: Aspects that areimportant:
a) Review brand sensitive materialb) Review the status of key brand initiatives
c) Review brand sensitive projects
d) Review new product and distribution strategies
with respect to core brand valuese) Resolve brand positioning conflicts
Ref: Chapter 8 of Core Text
E t bli hi B d E it
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Establishing a Brand EquityManagement System (3-contd)
Brand Equity Responsibilities:
2. Organizational Structure & Design: The
current market trends are redefining job
requirements and duties. The traditionalmarketing department is disappearing from a
number of companies that are exploring other
ways to conduct their marketing functions
through business groups, multidisciplinary teamsand so on.
Ref: Chapter 8 of Core Text
Establishing a Brand Equity
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g q yManagement System (3-contd)
Brand Equity Responsibilities:
3. Managing Marketing Partners: The
performance of a brand also depends on the
actions taken by outside suppliers and marketingpartners. Hence, these relationships must be
managed carefully. Many leading global firms
have been consolidating their marketing
partnerships and reducing the number of outsidesuppliers. (Ex: Levi Strauss value chain)
Ref: Chapter 8 of Core Text (END OF PART I)
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