brands and stakeholder relationships. what does “brand” mean? how are brands created and...
TRANSCRIPT
Brands and Stakeholder Relationships
What does “brand” mean?
How are brands created and maintained?
How are brand relationships created and maintained?
What is brand equity and how is it created?
Chapter Outline
Building Brand Relationships With
Customers
Building Brand Relationships With
CustomersCreate CustomersCreate Customers
Reward: SalesReward: Sales Reward: More Sales and Profits
Reward: More Sales and ProfitsReward: SalesReward: Sales
Building Brand Relationships With
Customers
Building Brand Relationships With
CustomersCreate CustomersCreate Customers
Chapter Perspective: Changing World
TraditionalTraditionalProduct FocusProduct Focus Brand-FocusBrand-Focus
Opening Case: Siegel & Gale
IMC program developed by Siegel & Gale featuring:•New focus on benefits to customers in:
•Advertising•Brochures and newsletters•Sale presentations
IMC program developed by Siegel & Gale featuring:•New focus on benefits to customers in:
•Advertising•Brochures and newsletters•Sale presentations
Repositioning CaterpillarRepositioning Caterpillar
• Caterpillar sales stabilized and grew• Company culture began to change to
fit new identity
• Caterpillar sales stabilized and grew• Company culture began to change to
fit new identity
IMC program developed by Siegel & Gale featuring:•New focus on benefits to customers in:
•Advertising•Brochures and newsletters•Sale presentations
IMC program developed by Siegel & Gale featuring:•New focus on benefits to customers in:
•Advertising•Brochures and newsletters•Sale presentations
Repositioning CaterpillarRepositioning Caterpillar
Opening Case: Siegel & Gale
Challenge:Challenge:
Answer:Answer:
Results:Results:
What is a Brand?
A brand is a name, term, sign, symbol or design, or a combination of them,
intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of
competitors.
What is a Brand?
What Does “Brand” Mean?
Brand: A perception resulting from experiences with, and information about, a company or line of products
Branding: The process of creating a brand image that engages the hearts and minds of customers
The Role of Brands
• Identify the maker
• Simplify product handling
• Organize accounting
• Offer legal protection
• Signify quality
• Create barriers to entry
• Serve as a competitive advantage
• Secure price premium
Advantages of Strong Brands
• Improved perceptions of product performance
• Greater loyalty• Less vulnerability
to competitive marketing actions
• Less vulnerability to crises
• Larger margins• More inelastic
consumer response• Greater trade
cooperation• Increased marketing
communications effectiveness
• Possible licensing opportunities
What is a Brand Promise?
A brand promise is the marketer’s vision of what the brand must be and
do for consumers.
Brand Elements
These are those trademarkable devices that identify & differentiate the brand.
Types of Brand Elements
Brand Element Choice Criteria
Brand Names
• Captures the central theme or key associations of a product in a very compact and economical fashion
• Most difficult element for marketers to change– Closely tied to the product in the minds of
consumers
Brand Names (Examples)
Brand Names
• Naming guidelines–Simplicity and ease of pronunciation and spelling.
–Familiarity and meaningfulness.
–Differentiated, distinctive, and unique.
• Naming procedures–Define objectives
–Generate names
–Screen initial selection
–Study selected names
–Research the final name
–Select the final name
Uniform Resource Locators (URLs)
• Specify locations of pages on the Web
• Known as domain names
• Protect the brands from unauthorized use in other domain names
• Cybersquatting- Registering, trafficking in, or using a domain name with bad-faith to profit from: – The goodwill of a trademark belonging to
someone else.
Logos and Symbols
• Indicate origin, ownership, or association
• Range from corporate names or trademarks written in a distinctive form, to abstract designs that may:– Be completely unrelated to the corporate
name or activities
Brands are often represented by logos
Logos: Distinctive graphic designs used to communicate a product, company, or organization identity
Brand Symbols
Brand Characters
• Special type of brand symbol– One that takes on human or real-life
characteristics
• Introduced through advertising and can play a central role in ad campaigns and package designs
Brand Characters
Slogans
• Short phrases that communicate descriptive or persuasive information about the brand
• Function as useful “hooks” or “handles” to help consumers grasp the meaning of a brand
• Indispensable means of summarizing and translating the intent of a marketing program
Slogans (Examples)
• Like a good neighbor, State Farm is there
• Just do it
• Nothing runs like a Deere
• I’m lovin’ it
• We try harder
• Always low prices
Jingles
• Musical messages written around the brand
• Have catchy hooks and choruses that become permanently registered in the minds of listeners
• Enhance brand awareness by repeating the brand name in clever and amusing ways
Packaging
• Activity of designing and producing containers or wrappers
• From the perspective of both the firm and consumers, packaging must:– Identify the brand– Convey descriptive and persuasive
information– Facilitate product transportation and
protection– Assist in at-home storage– Aid product consumption
Packaging (Examples)
Differentiates a Product From Its Competitors
Differentiates a Product From Its Competitors
Makes a Promise to ConsumersMakes a Promise to ConsumersMakes a Promise to ConsumersMakes a Promise to Consumers
Differentiates a Product From Its Competitors
Differentiates a Product From Its Competitors
What Does “Brand” Mean?
What a Brand Does
What a Brand Does
Serves As the Driving, Unifying Force Directing All Functional
Areas, Including IMC
Serves As the Driving, Unifying Force Directing All Functional
Areas, Including IMC
Tales From the Real World
There is an tendency to think of most brands in terms of tangible product categories like soft drinks or breakfast cereal.
However, in the real world, there are many intangible brands. One example is the fact that every four years professionals from major MC agencies are enlisted in the U.S. presidential election campaigns—to help “brand” one of the candidates.
Each of These Universities Represents a Brand Image
The Power of a Brand
59% Chose Kellogg’s
59% Chose Kellogg’s
41% Chose No Brand
41% Chose No Brand
Consumers willing to pay $75 more for Hitachi than GEConsumers willing to pay $75 more for Hitachi than GE
Identical cereals tasted by consumers:Identical cereals tasted by consumers:
Vs.Vs.
Identical TV sets examined by consumers:Identical TV sets examined by consumers:
Vs.Vs.
Retailers are creating their own brands
Store Brands (a.k.a. house brand or private label): A brand used exclusively by one chain of stores for a line of products made to a store’s specification
Determining the Desired Brand Position
Determining the Desired Brand Position
Developing Brand IdentificationDeveloping Brand IdentificationDeveloping Brand IdentificationDeveloping Brand Identification
Determining the Desired Brand Position
Determining the Desired Brand Position
How Are Brands Created?
3 KeySteps
3 KeySteps
Creating Brand ImageCreating Brand Image
Figure 3-1: Determining the Desired Brand Position
IMC In Action: Dr. Scholl’s
An IMC program featuring:• Revamped, more fashionable product
line
• Product placement on Television
• New distribution in shoe stores
An IMC program featuring:• Revamped, more fashionable product
line
• Product placement on Television
• New distribution in shoe stores
Revitalize Dr. Scholl’s brandRevitalize Dr. Scholl’s brand
An IMC program featuring:• Revamped, more fashionable
product line
• Product placement on Television
• New distribution in shoe stores
An IMC program featuring:• Revamped, more fashionable
product line
• Product placement on Television
• New distribution in shoe stores
Revitalize Dr. Scholl’s brandRevitalize Dr. Scholl’s brand
Some Dr. Scholl’s shoes now sell for $169Some Dr. Scholl’s shoes now sell for $169
IMC In Action: Dr. Scholl’s
Challenge:Challenge:
Answer:Answer:
Results:Results:
Insight: Stakeholder Overlap
Organizations must assume that multiple stakeholder groups may be exposed to brand messages. In other words, stakeholders overlap. For example an IMC audit for a bank found that 95 percent of the bank’s employees were also bank customers and that 75 percent owned shares of the bank’s stock. Marketers must make sure that brand messages are acceptable to all stakeholders and that the presentation of the brand image and position is consistent for all of these groups.
Responsive-ness
Responsive-ness
ConsistencyConsistency AccessibilityAccessibility
CommitmentCommitment Responsive-ness
Responsive-ness
ConsistencyConsistency AccessibilityAccessibility
Aspects Fostered by the Company
Relationship Aspects
Relationship Aspects
LikingLiking SatisfactionSatisfactionTrustTrust LikingLikingTrustTrust
Aspects Arising from the Consumer
Relationship Aspects
Relationship Aspects
Loyal Word of Mouth Advocates Can Be Highly Persuasive With Other Consumers
Loyal Word of Mouth Advocates Can Be Highly Persuasive With Other Consumers
Current Heavy Users Typically Account for Most of a Brand’s Revenue
Current Heavy Users Typically Account for Most of a Brand’s Revenue
Selling to Existing Customers Is Much Less Costly Than Attracting New Customers
Selling to Existing Customers Is Much Less Costly Than Attracting New Customers
Existing Brands Account for Most of the Brand Communication With Consumers
Existing Brands Account for Most of the Brand Communication With Consumers
Current Heavy Users Typically Account for Most of a Brand’s Revenue
Current Heavy Users Typically Account for Most of a Brand’s Revenue
Existing Brands Account for Most of the Brand Communication With Consumers
Existing Brands Account for Most of the Brand Communication With Consumers
Selling to Existing Customers Is Much Less Costly Than Attracting New Customers
Selling to Existing Customers Is Much Less Costly Than Attracting New Customers
Maintaining Relationships Is Critical
Maintaining relationships is critical
Customer Relationship Management (CRM): The optimization of all customer contacts through the distribution and application of customer information. Simply stated, it is your promise, that no matter how your customers interact with you, you will always recognize who they are
Figure 3-5: Relative Importance of Different Stakeholder Groups
++
Brand licensingBrand licensing
Broadening distributionBroadening distribution
Brand extensionsBrand extensions
Co-brandingCo-brandingCo-brandingCo-branding
Brand extensionsBrand extensions
Broadening distributionBroadening distribution
What Is Brand Equity and How Is It Created?
Brand equity: The intangible value of a company beyond its physical net assets
4 Ways ofLeveraging4 Ways of
Leveraging
Final Note:
One of IMC’s most important contributions:
• Helping to build trust in brands…• …therefore enhancing consumer
relationships• Reason: An organization’s
communication with its stakeholders influences everything else it does
Bibliography
Principles of Advertising & IMC by Tom Duncan 2nd Edition, Published by McGraw-Hill Irwin.
Event Management For Tourism, Cultural, Business and Sporting Events by Lynn Van Der Wagen Brenda R. Carlos Published by Pearson Prentice Hall.
Advertising Principles and Practice by W. Wells, S. Moriarty and J. Burnett, Published by Prentice Hall International.
Integrated Marketing Communications by David Pickton & Amanda Broderick Published by Prentice Hall.
The End:
"The man who removes a mountain
Begins!
by carrying away small stones."
- Chinese Proverb