Download - Planning 1 - Branding
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CHAPTERSEVENTEEN
Strategic Launch Planning 1
Branding
March 13, 2007
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The Value of a Strong Brand
Brand equity has just as much
effecton stock price as do earnings.
DavidAaker
Professor of Marketing, EmeritusUniversityof California, Berkeley
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What is a Brand?
A product is something that is made in a factory; abrand is something that is bought by a customer. Aproduct can be copied by a competitor, a brand is
unique. A product can be quickly outdated; asuccessful brand is timeless.
Source: Stephen King, WPP Group, London
A brand is something that resides in the minds ofconsumer.
A brand is a name, term, sign, symbol, or design, ora combination of them intended to identify the goodsand services of one seller or group of sellers and to
differentiate them from those of competition. Source: American Marketing Association
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WhatisaBrand?
Name
Design
Identifiesproduct/service
of seller and
differentiates from
competitors
Keller, Kevin Lane. Strategic Brand Management:Building, Measuring, and Managing Brand Equity. 1998.
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Benefits of Brands
Consumers
Identification of the source of product
Assignment of responsibility to product maker
Risk reducer
Search cost reducer
Promise, bond, or pact with maker of product Symbolic device
Signal of quality
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Benefits of Brands (cont.) 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
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ABrand is More Than a Product
Product
Scope
Attributes
Uses
Quality/value
Functional
benefits
Organizational
associations
Brand
Personality
Symbols
Self-
expressive
benefitsEmotional
benefits
User
Imagery
Country oforigin
Brand
Brand/customer
relationships
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What is Brand Equity?
What distinguishes a brand from its unbranded
commodity counterpart and gives it equity is the sumtotal of consumers perceptions and feelings about
the products attributes and how they perform, about
the brand name and what it stands for, and about the
company associated with the brand.
Source: Alvin A. Achenbaum, The Mismanagement of Brand Equity, 1993
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Brand Equity as a Percent of Firm
Tangible AssetsIndustry Brand Equity
Apparel 61
Tobacco 46Food Products 37
Chemicals 34
Electric machinery 22Transportation 20
Primary metals 01
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Picking Stocks
Suppose that you will be given 0.1 percent of thestock on one of the following companies. Which
firms stock would you prefer, given the followinginformation?
General Motors $166B $229B $7B
Coca-Cola $19B $17B $4B
Sales Assets Profits
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Brand EquityBrand Equity
PerceivedBrand Quality
BrandAwareness Brand Name
Symbols
BrandLoyalty
OtherProprietaryBrand AssetsPatentsTrademarksChannel relationships
BrandAssociations Personality Benefits Attitudes
Provides Value to Customerby Enhancing: Interpretation/processing of information
Confidence in the Purchase Decision
Use Satisfaction
Provides Value to Firm by Enhancing: Efficiency and Effectiveness of Marketing Programs
Brand Loyalty
Prices/margins
Brand extensions
Trade Leverage
Competitive Advantage
What is Brand Equity?
Source: Aaker (1991) Managing Brand EquitySource: Aaker (1991) Managing Brand Equity
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Dimensions of Brand
Personality
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Brand personality
Describe the personality of thefollowing:
Arizona Iced Tea
Intel
Blockbuster Video Wal-Mart
Toyota
Dr. Pepper
Aquafina
Seiko
Texas Instruments
Nord
strom
s
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Brand personalityWhat personality characteristics come to mind for the
following:
Brand is repositioned several times or changes itsslogan repeatedly
Brand uses continuing character in its advertising
Brand charges a high price and uses exclusivedistribution
Brand frequently available on deal
Brand offers many line extensions
Brand sponsorsshow on PBS or uses recycled materials Brand features easy-to-use packaging or speaks at
consumers level in advertising
Brand offersseasonal clearance sale
Brand offers five-year warranty or free customer hot
line
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Brand Equity
Sources of Brand Knowledge
Brand Awareness
Brand Image
Strength of Brand Associations
Favorability of Brand Associations
Uniquene
ssof Brand
Association
s
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Why Extend a Brand?
Immediate brand awareness
Transfer exi
sting a
ssociation
s
Faster trial
Reinforce core brand
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Why Not Extend a Brand?
Boomerang potential
Dilution
Bad fit
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Questions and Guidelines in
Brand Name SelectionQuestion Guideline
What is the brand's role or purpose? If the brand is to aid in positioning, choose a brandname with meaning (DieHard, Holiday Inn). If
purely for identification, aneologism (made-upword) such as Kodak or Exxon will work.
Will this product be a bridgehead to a line ofproducts?
If so, choose carefully so as not to be a limitation inthe future (Western Hotels changed name toWestern International, then finally to Westin.)
Do you expect a long-term position in the market? If not, a dramatic, novelty name might be useful
(such as Screaming Yellow Zonkers).
Is the name irritating or insulting to any marketsegment?
Women found Bic's Fannyhose to be objectionable.
Figure 17.8
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Crapsy Fruit French cereal
Fduhy Sesane China Airlines snack food
Mukk Italian yogurt
Pschitt French lemonade
Atum Bom Portuguese tuna
Happy End German toilet paper
Pocari Sweat Japanese sport drink
Zit German lemonade
Creap Japanese coffee creamer
I'm Dripper Japanese instant coffeePolio Czech laundry detergent
Sit & Smile Thai toilet paper
Barf Iranian laundry detergent
Some Brand Names That Didnt WorkFigure 17-9
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How Brand Equity Provides Value
High
Brand
Loyalty
Other Brand
Assets
More/Better
Brand
Associations
High
Perceived
Quality
High
Brand
Awareness
Reduced
marketingcosts
Increased
trade
leverage
Patents or
trademarks
Strong
channel
relationships
Creates
positiveimage
Helps
customer
processinformation
Supports
qualitypositioning
Supports
higher-price
strategy
Easier to
makebrand
associations
Increased
liking andfamiliarity
Provides value to customer:Assists in customer information processing
Increases confidence in purchase
Increases satisfaction in product use
Provides value to firm:Increases effectiveness of marketing programs
Increases customer loyalty and trade leverage
Facilitates brand extensions
Is a source of competitive advantage
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Building Brand Equity
Getting awareness of the brand and themeaning.
Making brand associations -- even thefactory location in Saturns case.
Building perceived quality
Loyalty in repurchase -- locking them in
Getting reseller support