brand development process

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THE PROCESS OFBRAND DEVELOPMENT

Presented by :

RAHIM JABBAR

JAKARTAAugust, 2005

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•A Review of Brand Fundamentals•Brand Development Process:

•General Stages•Consumer Insights Basis for Developing Brand •Consumer Values Brand Concept

•Understanding Consumers•Who are they?•Major models of thinking about consumers•Factors Determining Consumer Values •Behavior : Over and Covert Behavior•Covert Behavior: Values, Norms and Beliefs •Determinants of Behavior•Cultural Background of Behavior•Hierarchy of Human Needs •Fishbein’s Theory of Consumer Choice Process

POINTS OF DISCUSSIONSession -1 & 2 (09:15 to 10:30): 75 minutes

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•The Linkage Between A Brand and the Consumers:•Human Needs Brand•Consumer and Their Brand•Types of Relationship Between A Brand and Its Consumers•Brand as the Carrier of Values

•Creating the Brand•Brand Concept Architecture of the Brand•Brand Concept Designing the Brand•Culture Based Brand Design

•Developing Messages and Stories Around the Brand•Understanding the Communication Process •Developing messages for the Brand •Proposed Selling Idea/Unique Selling Proposition

•Key Points

POINTS OF DISCUSSION (2)Session -3 & 4 (10:50 to 12:20): 90 minutes

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Participants & Learning Objectives

•As a result of this overview, participants are expected to be able to:

– Explain:• The process of Brand Development • The factors affecting consumer behavior

– Apply insights from knowledge on brand development to develop messages and stories around the brand

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A REVIEW OF THE MARKETING CONCEPTS

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WHAT IS THE BUSINESS ?

TheOwners of

Capital/Resources

TheFirms

INPUTS•Men

•Money•Materials•Machine•Moments

(Time)

INVEST

THROUGHPUTS TARGETMARKET

The Business Processes

THE RETURNS

OUTPUTS•Products•Goods

•Services

The Transaction/Exchanges

RETURNOn

INVEST-MENT

Copyright Rahim Jabbar /2002

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WHAT IS THE ESSENCE/NATURE OFTHE TRANSACTION PROCESS?

THEFIRM

CONSUMERS/CUSTOMERS

PRODUCTS/

SERVICESTHAT PROVIDES VALUES TO THE

PRO

DU

CES/

PRO

VID

ES

THE

OFFERINGS

SATISFACTION

THEMONEY

TRANSACTION

INCOME/EARNING

THE EXCHANGEPROCESS

Copyright Rahim Jabbar/1999

Marketing is taskedto manage the economictransactions with the customers/consumers

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MAIN POINTS OF THE MARKETING CONCEPTS (1)

1. Marketing is a major element of the core business processes of creating value added through inducing and stimulating transactions/exchanges

2. Business transaction can only be realized through offering product/service (=the offer) as a means of exchanging values between the consumers/customers/clients and the

firms/companies.

3. Consumers/customers/clients will consider any offer (be it product or service) as bringing values to them if the offer helps them achieve their goals , satisfy their wants and fulfill their needs

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4. Values, therefore can be seen as special meanings attached to a particular consumption occasion of using or consuming a product or the event of receiving a particular service. (This is a pragmatic/utilitarian use of the word “value”)

5. At this point, marketers have two options: go with the product as a commodity wrap the values offered by the product through branding

6. Branding is a strategic option for marketing a product or service. Branding is a means of wrapping the values surrounding the product or service.

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7. The task of marketing function is to find and create consumers/ customers/clients by transforming individual persons or groups of people from being “lay people in the streets” into obtaining some added values at consuming the offers/using the product or becoming recipients of the services ( to become consumers/

customers/clients).

8. After this transformation, the task is to manage the relationship

(Customer/Consumer Relationship Management).

9. Managerially, the marketing process consists of development, creation, and activation of the marketing mix for the offer (product or service) destined for a specific target in mind.

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10. These days rarely do we find a single product for a single market (a single product-market category). The overwhelming majority of categories comprise of multi-products targeted at a variety of different groups of consumers/customers/clients. (Each group is conveniently called a segment of the market).

11. Due to the above reasons, the development of any offer (be it

product or service) should go through the process of S.T.P.

(Segmentation, Targeting and Positioning)


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12. Segmentation is the way you partition the market based on certain approach. Segmenting the market would facilitate in choosing the specific part of the market you want to target.

13. Targeting is the process matching your product/offer to specific part of the market.

14. Positioning is the way you differentiate your product/offer from same product category targeted to the same segment.


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A REVIEW OF BRAND FUNDAMENTALS

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KEY POINTS OF BRAND FUNDAMENTALS

THE ORIGIN OF BRANDS

•Business is about creating value added through economic transactions.

•Marketing is tasked to manage the economic transaction between a business with its consumers/customers/clients.

•As far back as four millennia ago, craftsmen from Persia, China and India – in marketing their products – used their signatures or symbols as the marks to identify and differentiate their products.

•As marketing became a stronger – now the strongest – key driver of business, trade-marks were gradually transformed to be synonymous with brands.

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KEY POINTS OF BRAND FUNDAMENTALS (Continued-1)

THE DEFINITION OF BRAND

•Brand is defined as a name, symbol or design, or combination of those elements used to identify and differentiate a product or service of a company and those of competitors. Brand is a competitive weaponry.

THE BENEFITS OF BRANDS

•Brands bring benefits to both the business and the consumers: Brands facilitate consumer decision making and choice. Brands transform consumption experiences. For the business, brands can cement consumer loyalty that will generate more sales and revenues.

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KEY POINTS OF BRAND FUNDAMENTALS(Continued-2)

THE COMPONENTS OF A BRAND•A product or service is the basis for a brand. The second component of a brand is its name and logo that become the identifiers of the brand. The third component is its packaging that functions as its external presenter. The fourth component is the messages or stories created around the brand that play the roles of its narrator or purveyor. The fifth component is its price which is the proxy of its value. All components should be in harmony to each other.

THE POSITION FOR A BRAND•As a brand is the identifier and differentiator for a product, a brand should be aimed to occupy certain territory in the consumers’ minds. The particular/specific territory occupied by a brand in the consumers’ minds is called ‘the position of the brand”.

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KEY POINTS OF BRAND FUNDAMENTALS

(Continued-3)POSITIONING A BRAND

•So, positioning a brand is what you do to the mind of the prospective consumers. Positioning is about finding the best for the product/service and the most appropriate for the target market. (It is all in the consumers’ mind!)

•The process of developing a competitive position for a brand starts with the segmentation of the market, followed by targeting ( selecting a particular segment) to whom a brand is to be positioned (positioning).

•In order to explore competitive values to be wrapped in the brand to be positioned, we should analyze the target consumers ( consumer insights) and the competitors’ brands.( competitors mapping)

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KEY POINTS OF BRAND FUNDAMENTALS (Continued-4)

POSITIONING A BRAND (Continued)

•Therefore, positioning a brand is about identifying the optimal place within the competitive set in the consumer minds. The positioning statement should draw on the strongest benefits offered by the brand.

•Positioning statement should clarify what the brand is all about. It should clearly state the brand’s uniqueness and point-of- difference (P.O.D.) . The statement should also explain why the consumers should BUY and USE the brand:

•Who are you going to give this positioning to?•Who are you going to market your product to?•What do they want and need?•What consumer insights is your positioning based on?

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KEY POINTS (Continued-5)

MANAGING THE BRAND•Managing a brand covers : developing, rejuvenating, extending, and marketing the brand (that includes distributing and advertising it to the target market).

•Managing a brand also means managing the process of consumer-brand linkage form being unaware to become loyal users (maximizing switchers-in and minimizing out-switchers)

•The objective of brand management is to develop, create and and strengthen the equity of the brand.

•Brand equity is the ability of a brand to gain market share , through first having a reasonable share of mind and share of hearts.

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BRAND DEVELOPMENTPROCESS

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Brand Development Process:General Stages

Insights on Consumer Values:

Singularly focused need,desire or want

Brand Concept:The “encapsulation of values”that comprises the complex

characters (i.e. attributes andbenefits) that constitute

the brand.

Subtantiating theBrand Design:

Giving substances tothe brand components

to make the branda reality

Designing the Brand:Working out the architecture of

the Brand structuring thefive components of the

brand

22Source: Adapted from Kenichi Ohmae , “The Mind of the Strategist” (1982)

CONSUMERS:•Need structure

•Values & benefits•Demand dynamics

(Envisaged) COMPANY’S BRAND :

•Key differentiated mix ofvalues that are competitive •Salient attributes required

(Current)COMPETITORS’ BRANDS :

•Key differentiated valuedimensions

•Salient attributes

COST COMPARISON

Values (

to b

e ) p

rovid

ed

at diff

erent t

ouch-p

oints

Values provided at

different touch-points

DIFFERENTIATECOMPETITIVELY!!!

Comparative Advantages(based on efficiency standard)

Competitive Advantages(based on effectiveness standard)

Specific target segments VALUES: :SPECIAL MEANINGSATTACHED TO SPECIFIC CONSUMPTION OCCASIONS/EVENTS. (PRAGMATIC & SUBJECTIVE APPLICATION OF VALUES)

“ConsumerInsights”

BRAND DEVELOPMENT PROCESS:CONSUMER INSIGHTS ON THE VALUES BRAND BASIS

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BRAND DEVELOPMENT PROCESS:CONSUMER INSIGHTS ON THE VALUES BRAND BASIS

GOALS

WANTS

NEEDS

VALUES : SPECIAL MEANINGS

ATTACHED TO SPECIFIC USAGE/CONSUMPTION

OCCASIONS/EVENTS BY CONSUMERS/CUSTOMERS/

CLIENTS WHEN:•Their goals are achieved•Their needs are fulfilled•Their wants are satisfied

CONSUMERS’/CUSTOMERS’/

CLIENTS’VALUES

Social/Cultural*)

Physiological/

Biological

Psychological

BENEFITS

BENEFITS

THATBRING

BENEFITSAND

SATISFYWANTS,

ETC.

ATTRIBUTES

Sensorial(Visual/

Tactile/Taste)

Physical

Process

Effects

BRAND

PRODUCT

SERVICES

IDEAS

EVENTS

ENTITIES

A W R A P P E R & C A R R I E R OF

To be achieved

To be fulfilled

COPYRIGHT Rahim Jabbar 2002

*)For organization (B-to-B) the group includes economic, technical and expertise benefits

To be satisfied

“Consumer Insights”

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BRAND CONCEPT:

Developing a brand should start from core values that uniquely define the essence of your offer (product or service).

The consumers/customers/clients (“market segment”) will happily buy and consume product or brand that is believed to help them achieve their goals, fulfill their needs and satisfy their wants.

In other words, they will surely consider anything that brings values to them.(“Beauty is in the eyes of the beholder”).


BRAND DEVELOPMENT PROCESS:CONSUMER VALUES BRAND CONCEPT

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BRAND CONCEPT (2):

For example, people use furniture to give comfort and convenience to their life (i.e. not having to always stand neither sit nor lay their body on the floor).

Furniture is the provider of values to the users, through giving the benefits of comfort (physiological need) and convenience (psychological needs).

The maker arranges the properties of certain materials and design that give the attributes which deliver the required benefits.

(“KALAU DUDUK LUPA BERDIRI’ – WHEN SITTING ON THIS, YOU WILL FORGET TO STAND UP) )


BRAND DEVELOPMENT PROCESS:CONSUMER VALUES BRAND CONCEPT

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UNDERSTANDINGCONSUMERS

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UNDERSTANDING CONSUMERS:WHO ARE THEY?

Individualspecificity

A particularSocio-cultural

millieu

The universalhumannature

HUMANBEINGS

Buying and using

a product/service(BRAND)

Individualspecificity

A particularSocio-cultural

millieu

The universalhumannature

CONSUMERS

•They are human beings (like us)

Copyrights: Rahim Jabbar (2003)

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UNDERSTANDING CONSUMERS:MAJOR MODELS OF THINKING ABOUT

CONSUMERS

•The marginalized consumers•Consumers are passive recipients of other people’s decision on what to consume. They are in sellers’ market. They are given the answer to ”what”.

•The “statistical consumers’ ( numbers in quantitative reports) •They are dehumanized people losing their individuality, since they are observed “objectively from a distance”. They are the answers to the question of “how many”

•The “secretive consumers” with “a bundle of motivations” •They are described through the lenses of psychoanalysis, sociology, semiotics, cultural anthropology, ethnography, etc. They are the answers to the questions of “why”. (“Consumer insights”)

Source: Valentine V., Gordon, W, “21st Century Consumers” (2000)

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UNDERSTANDING CONSUMERS:MAJOR MODELS OF THINKING ABOUT CONSUMERS

(2)•The sophisticated consumers•They are the people that consume “advertising commercials”. As such they also “consume experiences”. (An example: Young people patronize “Starbucks” not just for drinking coffee. They consume experiences from the ambience and related associations and imagery)

•The “satellite consumers’ (held in orbit by the brand) •They are the results of marketers’ modeling brand in human terms with personalities, values and characteristics. Like a planet in the sky, the “ gravitational pull” of the brand can be controlled (through well- crafted messages) so that the consumers “remain in orbit”.

•The “multi-headed consumers” with “a set of need states” •They are people who make different choices among different occasions. These people choose brands to fit particular context (can be environment - human, social, physical-, and individual physiological or emotional needs)


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UNDERSTANDING CONSUMERS:MAJOR MODELS OF THINKING ABOUT CONSUMERS

(3)

•The foregoing six models

•The marginalized consumers•The statistical consumers•The secretive consumers•The sophisticated consumers•The satellite consumers •The multi-headed consumers

HELP US TO UNDERSTAND THE CONSUMERS TO UNDERSTAND BRANDS


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UNDERSTANDING CONSUMERS:FACTORS DETERMINING CONSUMER VALUES

Internal Influences•Learning•Memory•Perception•Personality

- Emotions- Attitudes

Utilitarian Needs

HedonicNeeds

PleasureNeeds

AestheticNeeds

NEEDS, WANTS, GOALS

External Influences•Culture•Sub-Culture•Demographic•Social Status•Reference Group•Family

DesiredState

ActualState

Arousal DriveTo find, acquire, consume,

use

Benefits Attributes Product/ Services

“VALUES”FULFILLMENT

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OVERT BEHAVIOUR:•External/observable/visible

acts/actions/behavior

COVERT BEHAVIOUR:• Internal dispositions:

1. Values & Norms2. Beliefs

3. Attitudes

UNDERSTANDING CONSUMERS:OVER AND COVERT BEHAVIOUR

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Values are general central principles concerning the patterns of behavior within a particular culture or society which its members hold in high regards.

Values are related to being good or bad. Around those values, individual and social goals can be integrated.

Values are transmitted and adopted through socialization process.

UNDERSTANDING CONSUMERS Covert Behaviour : Values

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Norms are standard patterns of behavior that are considered normal within a particular culture or society.

Norms are related to right or wrong.

Norms and values are transmitted and adopted through socialization process.

UNDERSTANDING CONSUMERS Covert Behaviour : Norms

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Beliefs are emotional acceptance of some proposition, statement, or doctrines.

Beliefs are learned expectations about the values of people, events and objects in the environment and the roles they play with respect to one’s behavior.

UNDERSTANDING CONSUMERS Covert Behaviour : Beliefs

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Actions

Attitudes

Beliefs

Values & Norms

Emotion

The Self

Instigatingstimuli

Physiologicalcorrelates

Cognitiveappraisal

Motivationalproperties

Emotional acceptanceOf values & norms

“Evaluative component”(positive or negative)

“Cognitive component”(Consciously held beliefs)

“Affective component”

(EmotionalTone or feeling)

“Conative component”(disposition for action)

UNDERSTANDING CONSUMERS Determinants of Behaviour

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Values& Norms

Beliefs

Attitudes

Actions

The Society/Community

The Individual/Person

CULTURE BEHAVIOR

Perspectives &World Views

SocialPractices

Socialization process

Internalization process

SHARE D

UNDERSTANDING CONSUMERS: Cultural Background of Behaviour

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UNDERSTANDING CONSUMERS: HIERARCHY OF HUMAN NEEDS

(MASLOW PYRAMID)

Growth, Accomplishme

nt Personal Development

Self Respect, Status Achievement Recognition

Belonging , Acceptance,

Social Life, Friendship and Love

Security, Protection from danger

Hunger Thirst Sleep Sex

Self-actualization

Esteem

Social needs

Safety & security

Physiological needs

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Direct

Indirect

BrandExperience

Beliefabout the Act

Evaluation ofthe Belief

Needs and Motives

Attitude to the Act

Social/Cultural

Psychological/Emotional

Physiological

Peer

Family

SalientRelevantOthers

SocialNormative

Belief

Motivationto Comply

PersonalityTendency

SubjectiveNorm

“Drinking COCA COLA gives me the feeling of pride/belonging to my peers/ gives me a tasty thirst quenching”

“Drinking COCA COLA is good/ rewarding/beneficial to me”

“Feeling of pride/belonging to my peers/a tasty thirst quenching” is rewarding/ beneficial to me”

“My peers/family are important to me”

“I would say that my peers/family would approve of my drinking COKE”

“I always wish to fit in with what my peers/family might think I should do”

“I strongly feel that personally I should always drink COCA COLA”

Authority

Intention to do the Act

EnablingCondition

The Real/Actual Act

“I always want to drink COCA COLA”

“COCA COLA is my main thirst quencher”

Source : Adapted from Martin Fishbein,

UNDERSTANDING CONSUMERS: FISHBEINS’ THEORY OF CONSUMER CHOICE

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LINKING CONSUMERSAND THE BRAND

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LINKING CONSUMERS AND BRAND:

HUMAN NEEDS BRAND

Self-Actual-ization

Esteem

Social needs

Safety & security

Physiological needs

SOCIAL APPRECIATION

BRAND IMAGE

CONVENIENCE

SAFETY/CONSISTENCY

PERFORMANCE

DESIGN QUALITY

PRODUCT QUALITY

FUNCTIONALPERFORMANCE

Human needs RequirementsProvidedby the brand

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EmotionalCore

Rational layer

Socio-cultural layer:Values

Personality

Identity/Character

Symbols:Meanings

Socio-cultural link

Functional link

Psychological bonding

Layers of ConsumerConsciousness

Layers of the Brand


CONSUMER THEIR BRAND

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LINKING CONSUMERS AND BRAND: TYPES OF RELATIONSHIP BETWEEN A BRAND AND ITS

CONSUMERS

LOYALCONSUMERS

THE BRAND

•Love•Intimacy•Nostalgic attachment

•Self-concept communication•Brand-partner quality•Behavioral inter- dependency

NON-CONSUMERS

THE BRAND

•Rebellion•Promiscuity•Incompati- bility

•Alienation •Distrust•Feeling abandoned

Therelationshipis dynamic

Therelationshipis dynamic

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BRAND

Product/service

functionality

Interaction Between

Product/ Service and the

Consumers

Delivery ofFunctional

benefits

Presentation& communications:

•Design•Color•Shape•Tone•Style

•Ambience

Symbols Meanings

VALUES•Goals achieved•Objectives reached•Demands fulfilled•Requirements satisfied

Symbol: indirect representation of something intended to signify ideas or principles beyond that specific action, event, device, or utterance. The ideas or principles represented as such are meanings of the symbol.


BRAND AS THE CARRIER OF VALUES

“Touch-points”

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CREATING THE BRAND

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CREATING THE BRAND: Brand Concept and Architecture of The Brand

VALUES

Exploring,describing,defining

sought by the target market

In theforms of

GOALS/NEEDS/WANTSTo be achieved, realized, satisfied

Translatedinto BENEFITS

Specific

required

Translatedinto ATTRIBUTES

Specific

that bring BENEFITS

Thatsupport

PROPERTIES/CHARACTE-

RISTICS

PRODUCTS

SERVICES

IDEAS

EVENTS

BRAND CONCEPT

Positioning Opportunities

Ideas & Innovations

ANATOMY OF THE BRAND:A PARTICULAR

ARRANGEMENT OF BRAND COMPONENTS

TO PRODUCE A UNIQUE MIXOF VALUES

THE PROCESSOF SELECTINGAN EFFECTIVE& POWERFUL

BRAND

that represent VALUES

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BRAND DEVELOPMENT PROCESS:

•If you have a product already, start with the core values that constitute the essence of your offer. Then match this with the consumer segment that seek those essential values. The segment is your target.

•If you do not have a product yet, find what core values are sought by your target market. then develop and create a product/brand that possess properties and characteristics that bring benefits of offering the values they look for.

•The brand concept is the statement of encapsulation of essential values that your product offer to the target. The brand concept should be able to fill in the best position in the mind of the target, in order to create a powerful brand. As such, you need to combine and arrange the brand components (product/service characteristics, name, packaging, core messages , and price) within a harmonious, balanced and coherent architecture.

CREATING THE BRAND: Brand Concept Designing the Brand

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Cultural meanings*)available in the society

(e.g. Respectability is a valid goal in life”)

Symbolic elements **)to communicate the meanings(e.g. something exclusive, only

for a happy few)

Creative selection & Development:

(the way, the feel, the mood, etc)

Product, Packaging & Campaign communication

(color coding, verbal/visual cues, etc)at a Price

Primary meaning transfer***):(e.g.” BMW is the status symbol

a successful Yuppie”)

Secondary meaning transfer****)The product become the locus

of selected meanings, and the consumers use the product

to create notions of self andthe world

*) Meanings may include gender, status, age, lifestyle, etc.**) Symbolic elements may include objects, persons, contexts and motifs

(e.g.:” With my BMW, I belong to the Yuppie Club” “My BM is my status. It is me” )

***)Transfer of meanings from to total stimuli to the product/brand through repeated associative process ****) Transfer of meanings from the product to the users/consumers.

CREATING THE BRAND: Culture based Brand Design

1)

2)3)

4)

5)6)

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DEVELOPING MESSAGES/STORIES AROUND THE BRAND

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UNDERSTANDING COMMUNICATION The Major Principles of Communications:

1. Communication is a symbolic process• Symbols are arbitrary• People give meanings to symbols

convention• Symbols will vary and may change

2. Perception is the key to communication.3. Communication has got content and

relationship dimension. The communication content is aimed to help shape certain perception.

4. Communication takes place at different levels of intensity

5. Communication takes place within space and time contexts

6. Communication involves prediction and expectation of the communication participants. The ultimate aim

of communication is to help achieve communicators’

objective of informing and influencing the other (s).

Sources: Collected from a number of textbooks on Communications

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UNDERSTANDING COMMUNICATION

The Major Principles of Communications:

7. Communication is systemic in its nature:• Internal system

• Frame of reference• Field of experience• Cognitive structure• Thinking pattern• Internal moods

• External system • Choice of words• Tones• etc

8. Similarity of social and cultural background will facilitate communication

9. Communication is going through a series of internal and external processes; it is dynamic and transactional.

Sources: Collected from a number of textbooks on Communications

52Copyright Rahim Jabbar/1999

DEVELOPING MESSAGES FOR THE BRAND

WHAT(THE MESSAGES)

WHOSE(COMMUNICATION

TARGET)

WHAT ENDS(EXPECTEDOUTCOMES)

FACTS,IDEAS,

PERCEPTIONTO BE PUT INTO

MINDS AND

HEARTSFOR THEM

TO BELIEVE INAND TO DO

VALUES

BRAND(PRODUCT/SERVICE)

OFFERED TOTARGET

CONSUMERSWHO REQUIRE

TO ACHIEVE

GOALS

TO SATISFY WANTS

TO FULFILL

NEEDS

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BASIC QUESTIONS IN DEVELOPING BRAND MESSAGES (WHAT TO SAY) COPY STRATEGY

•WHO ARE YOU? (YOUR COMPANY)?

•WHAT DO YOU STAND FOR?

•WHAT DOES YOUR BRAND STAND FOR?

•WHOM ARE YOU SPEAKING TO?

•WHAT DO YOU WANT TO HELP THEM TO UNDERSTAND?

•WHAT DO YOU MANT THEM TO BELIEVE IN?

•WHAT DO YOU WANT THEM TO DO?

54Copyright Rahim Jabbar/1999


COPY STRATEGY CREATIVE STRATEGY

WHAT

BENEFITS ADVANTAGES

VALUES

TO CO

MM

UNICATE

ATTEMPTS ADVERTISING

TARGETCONSUMERS

COPY STRATEGY CREATIVE STRATEGY

PROPOSEDSELLING

IDEASCONVERSION INTO

THEIR OWNSELF-INTEREST

ProposedSelling Idea

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Proposed Selling Idea/Unique Selling Proposition

•It is a clear and simple statement that tells the target consumers why your product is different to make it stand out of the crowd.

•In a crowded market place you must be either BETTER or CHEAPER (or GIVING MORE VALUE) than your competitors. An example: OLYMPUS Camera: All the features of a professional camera without the fuss.

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Find, develop and ascertain that your product/service has something unique to offer. What can you offer that is different?

•only one: being the only one of its kind•better than the others: superior to all others•unusual: different from others in a way that makes something worthy of note •limited to somebody or something: limited to a specific place, situation, group, person, or thing

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Before developing a USP, it helps to know:

•The features of the product/service

•How and why the customers uses the product services

•Features of competitive products

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DEVELOPING MESSAGES FOR THE BRAND:

Proposed Selling Idea/Unique Selling Proposition (2)

Steps to develop a USP•List all main features of the product. (Features describe what the product/ service does). Features can be: quality, type and level of service, price, functional or technical characteristics.•Convert each feature into benefit. (A benefit describes what customer need it fulfils). Customer buy benefit, therefore obtaining value from that. An example:

• Feature of an industrial machine : reliability, which means available for more hours of the working day ( benefit for the buyer).

•Rank the benefits according to their relative importance to the customer•Group the benefits into standard ones, i.e. available to all competitive products or the different and special (unique) to your product/service) •If no anything special or different, you have to develop at least one unique benefit ( it is all in the mind/perception)

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DEVELOPING MESSAGES FOR THE BRAND:

THE BIG PICTUREWhat ?(THE

PROMISE)

How ?(The Way)

To Whom?(THE

TARGET)

CommunicationPsychology

(Symbology,tone, pitch,etc)

Creativity(Big Idea)

ConsumerPsychology

ADVERTISINGAND

COMMUNICATIONMATERIALS

(AUDIO/VISUALS, MUSICS,ARTS)

Why ?(THE

SUPPORTINGFACT

COPYSTRATEGY

SELECTEDPOSITIONING

Should be

CORRECT

Should be

CLEAR

Should be

COMPETITIVE

For the

PRODUCT

For the

MARKET

Should considerLONG-TERM

HEALTH OF THEBRAND

Copyright Rahim Jabbar/1999

Should be

CREDIBLE

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KEY POINTS

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KEY POINTS

THE STARTING POINT

•Developing a brand starts from deep consumer insights. Consumer insights pertain to penetrating understanding of the underlying dynamics of consumer perceptions, attitudes and behavior.

•Deep consumer insights will result in workable solutions to consumer’s problems/challenges (related to the product/service in hands) through configurational learning about consumer values.

•Configurational learning is gestalt learning. Gestalt = a set regarded as a whole: a set of elements such as a person’s thoughts and experiences considered as a whole and regarded as amounting to more than the sum of its parts.

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THE STARTING POINT (Continued)

•Consumer values are special meanings attached to specific usage/consumption occasion/event by consumers/customers/ clients when their goals are achieved, their needs are fulfilled and their wants are satisfied.

THE BRAND CONCEPT

•From deep and holistic understanding of consumer values, we then proceed to develop a concept for the brand (brand concept).

•A brand concept pertains to the complex characters (namely attributes and benefits) that constitute the brand.

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UNDERSTANDING THE CONSUMERS •Understanding the consumers is the basis for gaining deep insights on the consumers and their values. •Consumer’s needs, wants and goals are influenced by both internal and external factors. As such, consumers display both overt behavior (namely, external, observable, and visible acts and actions) as well as covert behavior ( namely internal dispositions comprising of values, norms, beliefs and attitudes)

•Consumer’s overt behavior is driven by his/her attitudes (or disposition to do certain kinds of acts). In its turn, attitudes are based on beliefs. Beliefs are emotional acceptance of values and norms.

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UNDERSTANDING THE CONSUMERS (Continued)

•Values (i.e. the principles of good or bad) and norms (the principles of right or wrong) are the principles shared by the people of the same culture. (Hence, the cultural basis of behavior)

•A brand (of a product or service) is aimed at satisfying consumer needs. Maslow proposed a theory on the pyramid of human needs which are arranged as below (from the base to the top or bottom up hierarchy):

•Physiological needs•Safety and security needs•Social needs•The need for esteem•The need for self-actualization

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LINKING THE BRAND WITH THE CONSUMERS

•Human needs for physiological satisfaction is fulfilled by the brand through functional performance of the product or service.

•The needs for safety and security drive the consumers to look for safety/consistency and convenience. The derived need for convenience is fulfilled by the brand through the attractiveness and quality of the product design. Whereas the derived need for safety and consistency is satisfied by the brand through product quality. •The needs for social acceptance, esteem and self actualization makes men/women to seek social appreciation. These needs are provided by the brand through the images portrayed.

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DEVELOPING MESSAGES AND STORIES AROUNG THE BRAND

•Communication is a symbolic process in which perception is the key. The communication content is aimed to help shape certain perception of the communicating participants. The ultimate goal of communication is to help achieve the communicating participants’ objectives of informing and influencing the others.

•The key elements to be considered in developing messages for the brand are as below:

•What to say ( copy strategy)•Whom the messages are aimed at (=the target consumers)•How to say it ( creative strategy) •What ends are expected (= communication objective)

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DEVELOPING MESSAGES AND STORIES AROUNG THE BRAND (Continued)

•Copy strategy should be based on the Proposed Selling Idea (PSI) or the Unique Selling Proposition (USP).

•The PSI/USP = what benefits and advantages (or specific values from the consumers’ viewpoints) the advertising attempts to communicate to the target consumers.

•The PSI/USP is a clear and simple statement that tells the target market on the reasons why your product or service is different or unique. It can be because of being:

•The only one•Better than the others•Unusual•Limited to something or somebody whilst the others are not

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DEVELOPING MESSAGES AND STORIES AROUNG THE BRAND (Continued)

•Steps to develop an IPS/USP:•List all main features of the product or service•Convert each feature into benefit (s)•Rank the benefits according to their relative importance to the customers.•Groups the benefits into

•The standard ones (available to all competing companies)•The different and special ones or the unique one

•If you do not find anything special or different, you have to develop at least one unique benefit (It is all in the mind It is a game of perception It is a mind game).

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References (1)

•Capon, Noel and James M. Hulbert, “Marketing Management in the 21st Century”, Prentice Hall, 2001•Davidson, Hugh, “Even More Offensive Marketing”, Penguin Books, 1997•Hiam, Alexander and Charles D. Schewe, “The Portable MBA in Marketing”, John Wiley & Sons, Inc., 1992•Jabbar, Rahim, ““Approaches towards Segmentation, Targeting & Positioning”, 2002, (unpublished)•Business Week, 2001,” The 100 Most Valuable Global Brands”•WIPO, “Intellectual Property, A Power Tool for Economic Growth”, 2002, internet edition, accessed through: http://www.wipo/int/about_wipo/gen/wipo.dgo/wipo_pub_888/ html

http://www.wipo/int/about_wipo/gen/wipo.dgo/wipo_pub_888/

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References (2)

•Kennedy,Carol, “Managing with the Gurus, Top level Guidance on 20 management techniques”, Century Business Book, 1996•Cowley, Don, Ed. “Understanding Brands”, Kogan Page 1991 •Aaker, David A. “Managing Brand Equity” The Free Press,1991•Temporal, Paul, “Branding in Asia”, 2001 •Knapp, Duane E,” The Brand Mindset“, The Mc-Graw Hill Companies Inc., 2000•Upshaw, Lynn B., “Building Brand Identity”, John Wiley & Sons Inc., 1995.•Arnold, David, “The Handbook of Brand Management”, Century Business, 1992.•Woodruff, Robert & Gardial, Sarah F., “Understanding Customer Values & Satisfaction”, Blackwell Business, 2000.

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