branding management, sessions 6and7, bahman moghimi, professor at university of georgia, tbilisi
DESCRIPTION
1. Direct Branding: Brand Elements, Brand Awareness, Brand Resonance, Brand Positioning, Brand Knowledge, CBBE Model 2. Indirect Branding Leverages ...TRANSCRIPT
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Brand Elements
Brand Positioning
Brand Resonance
Brand Knowledge
Session 6Bahman Moghimi
I Want to Be in Your Heart…
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 in the
mind of customers.
Brand elementsBrands typically are made up of various elements, such as:[
• Name: The word or words used to identify a company, product, service, or concept.• Logo: The visual trademark that identifies the brand.• Tagline or Catchphrase: Ex: "The Quicker Picker Upper" for Bounty paper towels.• Graphics: The dynamic ribbon is a trademarked part of Coca-Cola's brand.• Shapes: The distinctive shapes of the Coca-Cola bottle and of the Volkswagen Beetle are
trademarked elements of those brands.• Colors: Owens-Corning is the only brand of fiberglass insulation that can be pink.• Sounds: A unique tune or set of notes can denote a brand. Ex: NBC's chimes• Scents: The rose-jasmine-musk scent of Chanel No. 5 is trademarked.• Tastes: Kentucky Fried Chicken has trademarked its special recipe of eleven herbs and
spices for fried chicken.• Movements: Lamborghini has trademarked the upward motion of its car doors.
• Customer relationship management
Brand awareness• Brand awareness is the extent to which a brand is recognized by potential
customers, and is correctly associated with a particular product. So it’s the extent to which the consumer associates the brand with the product that they wish to purchase. It is the brand recall and the brand recognition of the company to the consumers
Key Components of a Positioning Statement
• Definition of target market(s): Who is the brand being built for (i.e., the center of the targeting bulls-eye?
• Category frame of reference: What is the competitive context? What product category do you want the brand to be associated with
• Statement of the key point of difference: What benefits should the brand stand for and deliver on?
• Reason(s) to believe: What proof points need to be demonstrated?
Brand Positioning (1)
Positioning is built from what you know to be true about your customer. Positioning reflects the "place" a brand occupies in a market or segment
Steps:1. What is your current position?2. What position do you want to have? 3. How do you create a new positioning?
Brand Positioning (3)Even producers in the commodity world of meats, have
found ways to reposition themselves and thus create a unique selling proposition.
• Identify• Personify• Create a new generic (Diff…?)• Be Consistent But Flexible • Connect Emotionally • Benchmark
Brand Resonance
Brand Resonance refers to the extent to which customers feel “in sync” with
the brand. Just as we feel the vibe between ourselves and others, we also
experience a vibe that resonates between ourselves and brands. There are
four categories to brand resonance:
• Behavior - such as frequent purchase.
• Attitude – when we say we “love” the brand.
• Sense of Community – such as the Harley Owner's Group (HOG).
• Active Engagement – where people invest time and money beyond purchase or
consumption.
Adapted from: Kevin Lane Keller. Strategic Brand Management, 2 nd Ed, Prentice Hall 2003, p92-94.
What is brand-knowledge?
Kevin Keller defined brand knowledge as awareness of the brand
name and belief about the brand image. Valuable beliefs are
authentic beliefs – consistent and durable.
In addition to belief, consumer experience is an important part of brand knowledge.
Consumer experience includes emotions, sensations, and activity. Using the
terminology of philosophy, beliefs are “explicit” knowledge – meaning they
can be put in words, and experience is “tacit” knowledge – meaning it cannot
be put in words.
Where is brand-knowledge?• Brand-knowledge – both explicit and tacit brand-
knowledge – primarily is created by both the consumers and the marketer. Other players in brand-knowledge creation include researchers, advertising agencies, marketing consultants, distribution channel partners, and others. Brand- knowledge is created and held both by individual people and by groups.
So, brand-knowledge includes two dimensions:• beliefs (explicit) - experience (tacit) dimension• individual – group dimension
How to create brand-knowledge successfully?
• Creating brand-knowledge is a process of transforming
beliefs to experiences and experiences to beliefs. In
addition, creating brand- knowledge requires that
marketers exchange information with consumers and
that brand-knowledge is transferred between
individuals and groups within the organization.
Leveraging Secondary Brand Associations To Build Brand Equity
CONCEPTUALIZING THE LEVERAGING PROCESS
Bahman MoghimiSession 7
Brand “borrows” some brand knowledge and, depending on the nature of those associations and responses, perhaps some brandequity from other entities.
FIRST
Secondary brand knowledge may be quite important to creating strong, favorable, and unique associations or positive responses if existing brand associations or responses are deficient in some way.
SECOND
Secondary Brand Association
The indirect approach to building brandequity is LEVERAGING SECONDARYBRAND KNOWLEDGE for the brand.
Leveraging Secondary Associations
• Creation of new brand associations• Effects on existing brand knowledge
– Awareness and knowledge of the entity– Meaningfulness of the knowledge of the entity– Transferability of the knowledge of the entity
Leveraging Secondary Associations
• Brand associations may themselves be linked to other entities, creating secondary associations:– Company (through branding strategies) e.g. Aquifina by
Pepsi Co– Country of origin (through identification of product origin)
Sony from Japan – Channels of distribution (through channels strategy)– Other brands (through co-branding)
• Special case of co-branding is ingredient branding e.g. Intel Inside
– Characters (through licensing)– Celebrity spokesperson (through endorsement
advertising) Accenture and Tiger Woods– Events (through sponsorship) Coke and FIFA 2010– Other third-party sources (through awards and reviews)
Lux Style [email protected]
• These secondary associations may lead to a transfer of:– Response-type associations
• Judgments (especially credibility)• Feelings
– Meaning-type associations • Product or service performance• Product or service imagery
• Guidelines– Commonality (New Zealand and wool)– Complementarity (Buick and Tiger Woods)
Leveraging Secondary AssociationsLeveraging Secondary Associations
Company Create a new brand Adopt or modify an existing brand Combine an existing and a new brand
Channels of Distribution Customers might perceive a same brand
differently depending on where it is sold.
Co-Branding Also called brand bundling or brand allianceOccurs when two or more existing brands are
combined into a joint product or are marketed together in some fashion Examples: Sony Ericsson Acer Ferrari
Siemens and Porsche design which produce a range of kettles, toasters and coffee machines Star Alliance which includes 16 different airlines such as
Lufthansa, Singapore Airlines The Smart Car : Swatch and Mercedes Benz
Advantages of Co-Branding Borrow needed expertise Leverage equity you don’t have Reduce cost of product introduction Expand brand meaning into related categories Broaden meaning Increase access points
Source of additional revenue
Disadvantages of Co-Branding Loss of control Risk of brand equity dilution Negative feedback effects Lack of brand focus and clarity Organizational distractions
Ingredient Branding A special case of co-branding that involves
creating brand equity for materials, components, or parts that are necessarily contained within other branded products Examples: Intel inside
Licensing Involves contractual arrangements whereby
firms can use the names, logos, characters, and so forth of other brands for some fixed fee Examples: Entertainment (Star Wars, Spider Man, Shriek ,
Micky Mouse of Disney etc.) Television and cartoon characters (The Simpsons) Designer apparel and accessories (Calvin Klein,
Pierre Cardin, Ralph Lauren etc.) Corporate Trademark Licensing Standard & Poor’s and Dow Jones
Celebrity Endorsement Draws attention to the brand Shapes the perceptions of the brand Celebrity should have a high level of visibility
and a rich set of useful associations, judgments, and feelings Q-Ratings to evaluate celebrities
Celebrity Endorsement: Potential Problems Celebrity endorsers can be overused by endorsing
many products that are too varied. There must be a reasonable match between the
celebrity and the product. Celebrity endorsers can get in trouble or lose
popularity. Many consumers feel that celebrities are doing the
endorsement for money and do not necessarily believe in the endorsed brand. Celebrities may distract attention from the brand.
Sporting, Cultural, or Other Events
• Sponsored events can contribute to brand equity by becoming associated to the brand and improving brand awareness, adding new associations, or improving the strength, favorability, and uniqueness of existing associations.
• The main means by which an event can transfer associations is credibility.
Third-Party Sources
• Marketers can create secondary associations in a number of different ways by linking the brand to various third-party sources.
• Third-party sources can be especially credible sources.
• Marketers often feature them in advertising campaigns and selling efforts .– Example: J.D. Power and Associates’ well-publicized
Customer Satisfaction Index
Customer-Based Brand Equity (CBBE)
It is a way of assessing the value of a brand in customers' minds.
Branding can increase profitability in large and small-scale
businesses by filling in gaps in customers' knowledge and by
offering assurances. The CBBE model centers that value in the
minds of customers. It compels businesses to define their brands
according to a defined hierarchy of qualitative, or common-sense,
customer impressions. These impressions are often laid out in
pyramid-shaped levels; they consist of salience, performance,
imagery, meaning, judgments, feelings, and resonance.
Equity
Equity Can be considered the sum total of values associated with a brand. These might include awareness, loyalty, and recognition. The greater the equity, the more likely customers will trust and choose the company's product or service.
Additionally, equity capitalizes on normal psychological tendencies, such as the sometimes longer memory about negative experiences or the cognitive laziness that creates loyalty through a customer's unwillingness to choose unfamiliar products over familiar brand products.
Brand SalienceAchieving right brand identity involves creating right brand salience.
It relates to the aspects of consumer awareness/salience of the brand. It includes the place that is been occupied by brand in the minds of the consumers.
Key Points
1. Brands can “borrow” equity from their association with people, places, programs, and other non-product-based sources.
2. Secondary associations are strongest when consumers have awareness and strong, favorable, and unique perceptions of the external source.
3. Secondary associations are most likely to affect evaluations when consumers lack the ability or motivation to judge product attributes.
4. Leveraging secondary associations can be problematic because it requires marketers to give up some degree of control over the branding process.
