WEEK 2:

Brand Management&

Brand Leadership

Model

WHY SPEND $ ON ADVERTISING TO

FIX “BROKEN” BRANDS?

MANAGING BRANDS THROUGH CRISIS

SUCCESSFULLY

● Classic brand management dates back to the early 1900s-Neil McElry (1931) famous P&G memo on the importance of a brand-focused management system.

● As “American” as baseball, hot dogs, apple pie, and Chevrolet.

From CLASSIC brand management

to “brand leadership”

Branding’s LOOONG History

● Brand Category / Business Unit management.

● A brand’s ‘market scope’ stretches ACROSS markets.

● Today’s brand leader is a communications specialist due to media & market fragmentation.

● Branding has become strategic & visionary.

● Brand leadership role at the highest levels of today’s organizations.

Today’s Brand Leadership

Developing Brand Strategy

● A thorough understanding of the company’s CUSTOMERS, competitors, and business strategy.

● It’s the customer that drives a brand’s VALUE.

● Brand strategies need to be based on a powerful segmentation strategy, as well as in-depth knowledge of customer motivations.

What Brand Identity Requires

Establishing Consumer Based Brand Equity

CBBE

● The differential effect that brand knowledge has on consumer response to the marketing of that product:● Customers might be more accepting of a new brand extension

for a brand with positive CBBE, less sensitive to price increases, and withdrawal of advertising support, or more willing to seek out the new product through new distribution channels.

● Brand equity as a BRIDGE: Consumer knowledge drives the differences that manifest themselves in terms of brand equity. Brand equity gives marketers a vital strategic bridge from their past to their future.

● Brands encompass past marketing efforts as collective investment in what consumers learned, felt, and experienced about their brands.

● Past brand efforts provide a map to the future.

The CBBE Model

● According to the CBBE model, the following four steps represent fundamental questions that customers will ask about your brand:

● Who are you? (brand identity)

● What are you? (brand meaning)

● What do I think/feel about you? (brand response)

● What kind of association and how much of a connection would I like to have with you? (brand relationships)

4 Steps to Building CBBE

● Key to creating brand equity is creating a difference between your products and your competitors in your customer's ANMM.

● ANMM is a GREAT model to show how your and your competitor's brands exist in your customer's memory.

● Associative Network Memory Model: network of nodes (stored information) in our brains and links representing the strength of/ association between the information.

Brand Knowledge - ANMM

●Brand image is the consumers’ perceptions about the brand, as reflected by the brand associations held in the consumer memory.

Brand Knowledge

Want to Buy a Motorcycle?

What if you were at a party, wanted a beerand could ask for ANY

brand?

What Brand Do You Prefer?

● The most successful branding organizations (Apple, Volvo, McDonald’s, Coca-Cola) achieve a very strong and rich brand image made up of extremely deeply entrenched brand associations with loyal customers called APOSTLES or RAVING FANS.)

Brand Knowledge

● Occurs when the consumer has a high level of awareness and familiarity with the brand and holds a strong, favorable, unique brand association in memory.

Sources of Brand Equity

● Brand Awareness: brand recognition + brand recall performance.

● Brand Recognition is a consumer’s ability to confirm prior exposure to the brand when you’re given the brand as a cue.

● Brand Recall is the consumer’s ability o retrieve the brand from their memory when provided with the brand category, the needs fulfilled by the category, or purchase or usage situation as a clue.

Brand Awareness

WHAT CEREAL WOULD YOU HAVE FOR BREAKFAST?

● Learning Advantages

● Brand awareness influences the formation & strength of the associations that make up the brand image.

● Marketers first have to create a brand node in the consumer’s memory.

● Consideration Advantages

● Consumers HAVE to consider the brand whenever they are making a purchase for which it could be acceptable or fulfilling a need.

● Raising awareness of the brand increases the chance that it is remembered in the consideration set.

Advantages of Brand Awareness

Laptop Consideration Set?

● Choice Advantages

● Creating a high level of brand awareness will affect choices among brands in the consideration set.

Advantages of Brand Awareness

CREATING BRAND AWARENESS

● Increase the familiarity with the brand through repeated exposure.

● Repetition increases recognizability but improving brand recall also requires linkages in memory to appropriate product categories or other purchase consumption cues.

● Forging strong associations between a brand and its product category helps build a strong brand.

Establish Brand Awareness

If you were going to

buy:

Which brand would

you consider?

Car ?

Cell phone ?

Suit ?

Dress shoes ?

E-book reader ?

● Begins with a strategic marketing program.

● Outside sources contribute (Consumer Reports, peers, influencers, respected authorities.)

● Brand association to the individual’s personal relevance AND the consistency with which it is presented over time.

● Highlight the brand’s ATTRIBUTES and BENEFITS.

● Analyze the consumer and your competitors to determine the best associations to link to the brand.

Building a Brand’s Image

IMPORTANCE OF A BRAND’S U.V.P

● Brand positioning greatly influenced by the USP that gives a consumer a compelling reason to buy the product.

Building a Brand’s Image

Unique Selling Proposition

CAN-AM’s USP

❶ Ensure identification of the brand with

customers and an association of the brand in your target customer’s mind.

❷ Establish the totality of a brand’s meaning in

the minds of customers, by linking a host of tangible and intangible brand associations.

❸ Elicit the proper customer responses to this

brand identification and brand meaning.

❹ Convert brand response to create an intense,

active loyalty relationship between customers and the brand.

4 Steps to Brand Building

● How product categories are organized in the consumer’s memory.

● A powerful brand has both depth and breadth of brand awareness so that customers always make sufficient purchases and always think of the brand across a variety of settings.

● Creating a brand’s “meaning” includes establishing the brand.

● Brand performance describes how well the product/service meets the customer’s functional needs.

Product Category Structure

● One kind of brand meaning.

● Depends on the properties of the product including ways that the brand attempts to meet a customer’s social and/or psychological needs.

● Four (4) main intangibles to link to a brand:

● User profiles

● Purchase/usage situations

● Personality and values

● History, heritage, and experiences

Brand Imagery

WORLD’S MOST VALUABLE BRANDS

www.brandchannel.com/images/papers/What_Makes_Brands_great.pdf

CHAMPIONSOF BRAND IMAGERY

● Customer’s personal opinions about and evaluations of the brand.

● The four main types of customer judgments:

● Brand quality

● Brand credibility

● Brand consideration

● Brand superiority

Brand Judgements

● Customer emotional responses and reactions to the brand.

● What feelings are evoked by the marketing program for the brand.

● How does the brand affect a consumers’ feelings about themselves and their relationship with others?

● Transformational advertising is advertising designed to change a consumers’ perceptions of the actual usage experience with the product.

Brand Feelings

● Defines the extent to which a consumer feels they are “in sync” with the brand (Harley-Davidson, Apple, eBay.)

● Resonance defined in terms of intensity, or the depth of the psychological bond that consumers have with brands and the level of activity brought on by the consumers’ loyalty to the brand.

Brand Resonance

● Brand resonance can be broken down into four (4) categories:

● Behavioral loyalty

● Attitudinal attachment

● Sense of community

● Active engagement

Brand Resonance