Creating Brand Equity,Brand positioning, Dealing with competition

Adhara JuwitaAdhi BhawikaAtsuko Ayu FDhea AnggastaDeang Arvina AjaniMagdalena Surida Ilona

What is a brand and how does branding work?What is a brand and how does branding work? What are the important decisions in developing a What are the important decisions in developing a

branding strategy?branding strategy?

Chapter QuestionsChapter Questions

BrandBrand

A name, term, sign, symbolor design, or a combination of them,

intended to identify the goodsor services of one seller or group

of sellers and to differentiatethem from those of competitors.

Attributes of Strong Attributes of Strong BrandsBrands

Excels at delivering Excels at delivering desired benefitsdesired benefits

Stays relevantStays relevant Priced to meet Priced to meet

perceptions of valueperceptions of value Positioned properlyPositioned properly Communicates consistent Communicates consistent

brand messagesbrand messages

Well-designed brand Well-designed brand hierarchyhierarchy

Uses multiple marketing Uses multiple marketing activitiesactivities

Understands consumer-Understands consumer-brand relationshipbrand relationship

Supported by Supported by organizationorganization

Monitors sources of brand Monitors sources of brand equityequity

The Role of BrandsThe Role of Brands

Identify the makerIdentify the maker Simplify product Simplify product

handlinghandling Organize accountingOrganize accounting Offer legal Offer legal

protectionprotection

Signify qualitySignify quality Create barriers to Create barriers to

entryentry Serve as a Serve as a

competitive competitive advantageadvantage

Secure price Secure price premiumpremium

BrandingBranding

Endowing products and serviceswith the power of a brand.

Brand EquityBrand Equity

The differential effect that brandknowledge has on consumer

response to the marketing of that brand.

StrongStrong UniqueUnique FavorableFavorable

Brand AssociationsBrand Associations

Marketing Advantages of Strong Marketing Advantages of Strong BrandsBrands Improved perceptions of Improved perceptions of

product performanceproduct performance Greater loyaltyGreater loyalty Less vulnerable to Less vulnerable to

competitioncompetition Less vulnerable to crisesLess vulnerable to crises Larger marginsLarger margins Inelastic consumer Inelastic consumer

response to price response to price increasesincreases

Elastic consumer Elastic consumer response to price response to price decreasesdecreases

Greater trade Greater trade cooperationcooperation

Increase in Increase in effectiveness of IMCeffectiveness of IMC

Licensing opportunitiesLicensing opportunities Brand extension Brand extension

opportunitiesopportunities

Brand PromiseBrand Promise

The marketer’s vision of whatthe brand must be and do for

Consumers.

Brand Element Choice Brand Element Choice CriteriaCriteria

MemorableMemorable MeaningfulMeaningful LikeabilityLikeability

TransferableTransferable AdaptableAdaptable ProtectibleProtectible

SlogansSlogans

Like a good neighbor, Like a good neighbor, State Farm is thereState Farm is there

Just do itJust do it Nothing runs like a DeereNothing runs like a Deere Help is just around the Help is just around the

cornercorner Save 15% or more in 15 Save 15% or more in 15

minutes or lessminutes or less

We try harderWe try harder WeWe’’ll pick you upll pick you up Nextel – DoneNextel – Done Zoom ZoomZoom Zoom II ’’m lovinm lovin’’ it it Innovation at workInnovation at work This BudThis Bud’’s for yous for you Always low pricesAlways low prices

How can a firm choose and communicate an effective How can a firm choose and communicate an effective positioning in the market?positioning in the market?

How are brands differentiated?How are brands differentiated?

SegmentationSegmentation TargetingTargeting PositioningPositioning

Marketing StrategyMarketing Strategy

PositioningPositioning

Act of designing the company’soffering and image to occupy

a distinctive place in the mind ofthe target market.

Product DifferentiationProduct Differentiation

Product formProduct form FeaturesFeatures PerformancePerformance ConformanceConformance DurabilityDurability ReliabilityReliability ReparabilityReparability

StyleStyle DesignDesign Ordering easeOrdering ease DeliveryDelivery InstallationInstallation Customer trainingCustomer training Customer consultingCustomer consulting MaintenanceMaintenance

Identity and ImageIdentity and Image

Identity:

The way a

company aims to

identify or

position itself

Image:

The way the

public perceives

the company or its

products

PricesPrices DistributionDistribution AdvertisingAdvertising Sales promotionSales promotion ServicesServices

Marketing Program Marketing Program ModificationsModifications

How do marketers identify primary How do marketers identify primary competitors?competitors?

How should we analyze competitorsHow should we analyze competitors’’ strategies, objectives, strengths, and strategies, objectives, strengths, and weaknesses?weaknesses?

Chapter QuestionsChapter Questions

New customersNew customers More usageMore usage

Expanding the Total Expanding the Total MarketMarket

Possibility of provoking antitrust actionPossibility of provoking antitrust action Economic costEconomic cost Pursuing the wrong marketing-mix strategyPursuing the wrong marketing-mix strategy The effect of increased market share on actual and The effect of increased market share on actual and

perceived qualityperceived quality

Factors Relevant to Factors Relevant to Pursuing Increased Market Pursuing Increased Market ShareShare

Competitor-centeredCompetitor-centered Customer-centeredCustomer-centered

Balancing OrientationsBalancing Orientations

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