integrated marketing communicationdeveloping brands

8/9/2019 integrated marketing communicationDeveloping Brands

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Developing BrandsDeveloping Brands

Overcoming Brand ParityOvercoming Brand Parity

ProblemsProblems Different BrandsDifferent Brands


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To help establish strong

brand equity, the brand

parity problem should be

resolved.Brand parity occurs when there

are few tangible distinctions

between competing brands in

mature markets. Brand parity indicates that only minorproduct differences exist.

Brand equity on the other hand represents a set ofcharacteristics that are unique to a brand.


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Benefits of brandBenefits of brand

equityequity

1. Brand equity allows the firms to chargepremium prices.

2. Because of the differentiated image, brand equity mayenable the firm to retain higher market share.

3. It is a source of channel power for dealing withretailers and leads to an improved position in terms ofshelf space and displays.

4. It influences the wholesalers to stock more of these

brands and encourage their customers to purchase.5. Brand equity may dissuade customers to look for

cheaper products and special deals or incentives tobuy another brand


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Brand equity andBrand equity and

dominationdomination

Domination is a strongly held view

that the brand is number one in its

product category.

Domination can happen in a geographicregion, smaller product category, or

market niche.

To dominate, the brand must be seen

as No.1 in some way by the consumers.

Colgate may be seen as the No. 1 in

fighting cavity; Volvo in terms of safety,

and SBI as the largest bank in India


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Global BrandingGlobal Branding

Branding particularly in international

markets, is a complex affair.

Firms can follow an adaptation strategy or

standardization strategy in promoting brands. Standardization means the use of same brand

name in all countries.

In Adaptation, the brand is different in each

country or region


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Using a standardized global brand reducescosts instead of advertising for each localbrand with a separate communication strategy

Standardized global brands allow the transfer ofbest practices from one country to another.

The global brand may seem to have a higherperceived quality

As the world seems to shrink through advances

in telecommunications, consumers arebecoming more similar displaying similarconsumer characteristics and purchasebehaviors.


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But the global brands have failed in many

instances due to local idiosyncrasies,

sensitivities, or traditions. Global brands generally do well in high-

profile, high-involvement product

categories.

Local brands perform best in low-

involvement everyday products


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In a globally integrated marketing

communication (GIMC) strategy, the wise thing

to do is to think globally, but act locally. This is

very much applicable in all branding strategies.

Though the approach should be to develop

global brands, marketers will be well advised to

understand the unique features of local brands

and provide support to them


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Brands develop histories

Brands have personalities

Brands have strengths, weaknesses, and flaws

Brands have families a brand familyis one inwhich a company offers a series or groups ofproducts under one brand name

The goal of branding is to set a product apartfrom its competitors.

After brand recognition is achieved, the nextstep is to prolong its life by sticking to oneunique selling point


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Types of brandsTypes of brands

Family brands A group of relatedproducts sold under one name

Brand extension The use of anestablished brand name on products

or services not related to the corebrand

Flanker brand The development ofa new brand sold in the same categoryas another product

Co-branding The offering of twoor more brands in a single marketingoffer


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Ingredient branding The placement of one brand within another brand

Cooperative branding The joint venture of two or more brands into a new

product or service

Complementary branding The marketing of two brandstogether for co-consumption

Private brands Proprietarybrands marketed by anorganization and sold withinits own outlets


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Private BrandsPrivate Brands

Private brands, also known as Private Labels, areproprietary brands marketed by an organizationnormally distributed exclusively within the organizationsoutlets.

To many individuals, private brands mean lower pricesand inferior quality. That is because historically primarytargets for private labels are price-sensitive buyers. Butthis is no longer true because retailers are these daysinvesting a lot of money for developing private labels. In

the US and Canada private label sales are around 13%and 20% respectively. In India too this trend is gainingmore momentum.


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PositioningPositioning

Final element in corporate and image management isproduct positioning.

Positioning is the process of creating a perception inthe customers mind regarding the nature of a

company and its products relative to competitors.

Positioning is created by variables such as quality ofproducts, prices charged, methods of distribution,image, and other factors.

A products positioning is based on two elements: (1)the products standing relative to the competition and(2) how the product is perceived by consumers.


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The end result of positioning is the successful creation of acustomer-focused

Value proposition, a cogent reasonwhy the target market should buythe product.

Example of a value proposition: Company and product :

Volvo Station Wagon

Target customer: Safetyconscious upscale families

Benefits: Durability and safety

Price: 20% premium Value proposition: The safest, most durable wagon in which your

family can ride


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Another example

Company and Product: Dominos Pizza

Target customers: Convenience-minded Pizza

lovers

Benefits: Delivery speed and good quality

Price: 15% premium

Value proposition: A good hot pizza, delivered toyour door within 30 minutes of ordering, at a

moderate price


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Consumers ultimately determine the

position a product/brand holds. Marketing

programs are designed to position

effectively. To do so, marketing

communications must either reinforce

what consumers already believe about the

product and its brand name or shiftconsumer views toward a more desirable

position.


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Effective PositioningEffective Positioning

Effective positioning can be achieved in sevenways:

1. Attributes

2. Competitors3. Use or application

4. Price-quality relationship

5. Product user

6. Product class

7. Cultural symbol

integrated marketing communicationdeveloping brands

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