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Basics of Brand Management

What is a Brand?The clichd definition: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 I understood:

A brand offers consumers significant emotional and/or physical advantage over its competitors. It is a perception or gut feeling of what the consumer thinks of a product/service. It is something larger than the product, it is a product with a personality.

As Nike fan, the brand represents to me - athleticism, strength, good health, and fun.I have a gut feeling about it that this brand is superior over others in terms of performance.

Why is a brand important?A brand....Instils a recall factor for the product based on the past performance and marketing program and further creates loyalty. Offers legal protection to the product with distinct features.Simplifies product handling, inventory management and accounting records.Identifies the product and its source or maker.Is unique and so it develops a competitive advantage.What is Branding?The clichd definition:Branding is endowing products and services with the power of the brand.

What I understood:Marketers need to teach consumers who the product isby giving it a name and other brand elements to identify it what the product does and why consumers should care. And this process is called branding.

Advantages of Strong BrandsImproved perceptions of product performanceGreater loyaltyLess vulnerability to competitive marketing actionsLess vulnerability to crisesLarger marginsMore inelastic consumer responseGreater trade cooperationIncreased marketing communications effectivenessPossible licensing opportunities11What is brand equity?The clichd definition:Brand equity is the added value endowed on products and services, which may be reflected in the way consumers, think, feel, and act with respect to the brand.13What I understood:The intangible value of a company beyond its physical net assets is the brand equity.Brand loyalty is one of the major element of brand equity. Brand name awareness, its associations, perceived quality and proprietary brand assets determine brand loyalty.Measure of the attachment that a customer has to a brand is Brand loyalty

Starbucks can sell its coffee at a higher price than solid marketcompetitorsbecause consumers associate the brand with quality and value .

Building Brand equityChoosing Brand elementsDesigning Holistic Marketing activities Leveraging secondary associations16Choosing Brand elementsBrand namesSlogansCharactersSymbolsLogosURLs

MemorableMeaningfulLikeableTransferableAdaptableProtectableChoosing Brand elementsDesigning Holistic Marketing activities Leveraging secondary associations19Designing Holistic Marketing activitiesIntegrated Marketing20Choosing Brand elementsDesigning Holistic Marketing activities Leveraging secondary associations22 Leveraging secondary associationsInternal BrandingBrand communitiesSecondary associationsNewslettersBrand workshopsRewards & RecognitionVideos with messages demonstrating brand.

Harley owners GroupSunsilk Gang Of Girls

23Country or geographic location of originMany places enjoy a reputation of excellence in certain areas. Brands may highlight their area of origin to transfer such positive associations. Example, Swiss watches and BMW Germany.Secondary Associations

Sporting, cultural, or other eventsSponsored events can contribute to brand equity by becoming associated to brand and improving brand awareness. The main means by which an event can transfer associations is credibility. Example. Pepsi IPLCelebrity endorsementA famous person can: Draw attention to a brand, and Shape the perceptions of the brand by the image that consumers have about the famous person.Example. Boost and Sachin tendulkarCo-brandingIngredient brandingBrand Licensing Co-branding uses two brand names that are owned by two separate companies. It is contractual. Example. Nike and Apple came together to bring Music and exercise together in an sports kit first then in an app.Where a component or ingredient is branded in order to communicate the value of the product.Example. Intel chipsets and processors are branded for selling laptops and CPUs.Renting a brand to another company while the parent company still owns the brand. Example. Fisher price and Harley Davidson.Branding Terms26A brand line consists of all productsoriginal as well as line and category extensionssold under a particular brand. A brand mix (or brand assortment) is the set of all brand lines that a particular seller makes. When a firm uses an established brand to introduce a new product, the product is called a brand extension. When marketers combine a new brand with an existing brand, the brand extension can also be called a sub-brand, such as Hershey Kisses candy, Adobe Acrobat software, Toyota Camry automobiles, and American Express Blue cards. The existing brand that gives birth to a brand extension or sub-brand is the parent brand. If the parent brand is already associated with multiple products through brand extensions, it can also be called a master brand or family brand. Brand extensions fall into two general categories: In a line extension, the parent brand covers a new product within a product category it currently serves, such as with new flavors, forms, colors, ingredients, and package sizes. In a category extension, marketers use the parent brand to enter a different product category, such as Swiss Army watches. Many companies are introducing branded variants, which are specific brand lines supplied to specific retailers or distribution channels. A licensed product is one whose brand name has been licensed to other manufacturers that actually make the product.Sub Brand

Branded houseHouse of BrandsSURF EXCELDOVESUNSILKRINSurf excel easy washDove Soap Surf excel matic top loadDove soap with avocadoSurf excel quick washDove soap jojoba oilsSurf excel BarDove ShampooSurf excel Liquid Dove Face washBrand lineBrand mixLine extensionCategory extensionHouse of brandsHULAdvantages of extensionsThe question for marketers is to know when, where, and how to extend a brand. The following are the advantages of brand extensions:Improve brand image.Reduce risk perceived by customers.Enhance the parent brand image.Bring new customers into brand franchise and increase market coverage.

29Advantages (cont...)Clarify brand meaning.Permit subsequent extensions.Increase efficiency of promotional expenditures.Avoid cost of developing a new brand.Increase the probability of gaining distribution and trial.3031Caterpillar moved into shoes and clothing

reliable, resistant, masculineDisadvantages of brand extensions32Can confuse or frustrate consumers.Can encounter retailer resistance.Can succeed but cannibalise sales of parent brand.

Extensions of Tropicana

Disadvantages (cont)33Can fail and hurt parent brand image.Can succeed but hurt the image of the parent brand.Can dilute brand meaning.Can cause the company to forgo the chance to develop a new brand.