session 6, summary 2013 2014 -2
DESCRIPTION
TRANSCRIPT
B®ANDING™
session 6summary
Article ‘Philip Morris’1. Can you tell me what the article is about?
2. What is the main research question of the article?
3. What methodology did the authors use?
4. Did Philip Morris use a global or local marketing strategy for Marlboro?
5. Are the authors pro / anti smoking?
the book
ISBN: 978-90-430-1729-9
course outlineWeek Subject Chapter Keller1 Introduction in branding: brand management and
global course overview, Branding music, events and entertainment
1
2 Creating brand value, Brand positioning 2 & 3
3 Building brand equity, Brand associations 4 & 5
4 Future branding: brand activation 6 & 7
5 Brand research, Brand psychology, Neuromarketing, Measuring brand value
8, 9 & 10
6 Brand strategy, Brand extensions, International branding, Summary
11, 12, 13 & 14
Do you recognize it?Do you know it?
Do you think it’s cool?Do you like it?
Do you think it’s better?Do you buy it?
Do you recommend it?
1. Do you recognize it?: Brand awareness2. Do you know it?: Brand knowledge3. Do you think it’s cool?: Brand image4. Do you like it?: Brand attitude / brand value5. Do you think it’s better?: Brand preference6. Do you buy it?: Brand loyalty7. Do you recommend it?: Brand fan
Why are brands important?For consumers
• Identification of 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
For 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 return
A change of thoughtsHow to companies approach their customers
• Production orientated: mass production, customers have no choice, selling more by efficient production
• Product orientation: selling more because the quality of products is better
• Sales orientation: selling more because of a lot of communication and promotion
• Marketing orientation: selling more by listening to the needs of customers and to adjust products to those needs
• Societal marketing orientation: selling more by listening to the needs of customers and to adjust products to those needs, also these companies pay attention to the effects of their actions to our planet
Marketing instruments- Product- Price- Place- Promotion- (People)
Marketing mix
Product1. Quality (materials, etc.) 2. Design (size, colour etc.) 3. Packaging (protection, storage, etc.)4. Brand (logo, recognition, etc.)5. Accessories 6. Assortment (width, depth, etc.)7. Service (installation, guarantees, instructions, etc.)
what is a brand?
“…a brand is a name, term, symbol, or design, or a
combination of them, intended to identify goods and services
of one seller or group of sellers and to differentiate them from
those of competition…”source: American Marketing Association
definition (1)
“…a brand is a intangible but critical component of what an
organization stands for…”
source: Brand Asset Management,Scott M. Davis
definition (2)
1850 … Identification branding: Products/services/quality
1950 … Benefit branding: Product benefits/What’s in it for me?
1970 … Symbolic branding: Personality/user image/ lifestyle
1990 … Experience branding: Consumer experience/ all senses
1995 … Societal branding: Ethics/contribution to society
2000 … Total branding: Integrated system of physical, psychological and social components of an
ideology
the evolution of branding
“…branding is the blend of art and science that manages associations between a brand and memories in
the mind of the audience. It involves focusing resources on selected
tangible and intangible attributes to differentiate the brand in an
attractive, meaningful and compelling way for the targeted audience. …”
source: Brandchannel.com
what can become a brand?• Goods (b-to-c / b-to-b)• Services• Retailers• Online products & services• People & organisations• Sports & arts• Regions (city marketing)• Entertainment
strategic brand management process
1. Identifying and establishing brand positioning
2. Planning and implementing brand marketing campaigns
3. Measuring and interpreting brand performance
4. Growing and sustaining brand equity
Brand equity
No brand vs. Brand X
Brand equity
‘…brand equity is built up from positive effects of marketing that can only be directed to the brand…’
customer-based brand equity(CBBE) Brand equity seen from the consumer perspective
The power of a brand is a result of: What has the consumer:
learned about the brandfelt when using the brandseen in combination with the brandheard about the brand
brand knowledge• Consists of:
– 1) brand awareness– 2) brand image
• Knowledge about a brand:The associative network memory model (the
brain is a network of associations, links and nodes, more about this in session 3 and 5)
1. brand awareness• Consists of:
– 1) brand recognition – I’ve seen this before…
– 2) brand recollection – I think you are referring to...
• Advantages:– Influences the amount, speed and strength of
associations to be made– Better chance to be part of the evoked set– Better chance to become the chosen brand
2. brand image
• Building a good brand image: creating strong, positive and unique brand associations
• Important:– Personal relevance– Uniqueness– Consistency– Credibility
Summary
building a strong brand4. Brand relationships: What about us?
3. Brand responses: What I think of you?
2. Brand meaning: What are you?
1. Brand identity: Who are you?
building a strong brand
Brand resonance pyramid (Keller)
Brand designing vs. Brand building
ProductBrand
Identity
Brand
Designing
Brand
Building
Brand
Relations
Core Target Creation Building Result
“…brand design is the creation (!) and
the visualization (!) of brands..”
source: Brand design, Ruud Boer
Functions of brand design
1. Creating extra value2. Creating difference 3. Communicating promises4. Creating awareness5. Creating recognition6. Communicating basic information7. Fulfilling other functions
• For example ‘Living the brand’
the inner side:A. creation of brands(vormen van merken)
the outer side:B. visualisation of brands(vormgeven van merken)
Brand desigining:
‘Het merk-wijzer model’
Source: Brand design, Ruud Boer
brand positioning & brand elements
brand positioning
“…finding the right location in the mind of the consumer..”
brand positioningWhat you need for brand positioning:
1. Overview of the target group2. Overview of the most important
competitors3. A) Points of parity regarding
competition B) Points of difference regarding competition
Laddering
Attributes (product features)
Benefits (personal values and advantages connected to product features)
Values (personal goals)
“…brand laddering involves progression from
attributes to benefits to more abstract values.
Laddering involves repeatedly asking what the implication of an attribute
or benefit is for the customer…"
for instance
Attributes: nicotine
Benefits: relaxation, social smoking, belonging to a group
Values: tough, relaxed, masculin
Brand psychology
mental brand response (1)
association ownershipa brand ‘owns’ an association, if the
brand comes immediately to the mindwhen the association is given as a cue
when the brand itself is given as a cue, this association is among the first
which are activated
brand psychology
brand psychology scientifically studies human
behavior related to brands in a particular surrounding or
a particular context
neuromarketing
measuring brain response to marketing ads and brands
by additional use of biometrics including heart rate, breathing rate,
eye and skin response
some neuromarketing toolseye tracking:
measures where a subject is looking
EEG (Electroencephaolgraph): measures brain waves to determine what parts of the brain are activated
FMRI (Functional Magnetic Resonance Imaging):measures brain activity in real time. Much moreexpensive than EEG, but gives more accurate pictures of the brain
1. The cocktailparty-effect: unconsciously a human scans the surroundings, althought you’re not aware of it
2. The mere exposure-effect: the more often someone is in contact with a negative stimulus the more positive it will be judged
3. The negativity-effect: negative and threatening stimuli will always be noticed quicker
4. Conditioning: when a neutral stimulus is connected to a positive or negative stimulus, the neutral stimulus also becomes positive or negative
brand strategy
brandarchitecture
1. BRAND-PRODUCTMATRIX
This matrix gives an overview of all the brands and products of the organization.
In order to get more insight into the product and brand strategy of the organization
Products
1 2 3 N
Brands 1 Becelbread
Becel liquid
Becelon bread
Etc.
2 Zwitsalshampoo
ZwitsalBaby tissues
ZwitsalSun cream
Etc.
3 Glorixbleach
GlorixCleaning tissues
GlorixToilet cleaner
Etc.
N Etc. Etc. Etc.
BRAND PORTFOLIO:
the collection of all brands an organization offers within a specific product category
PERFECT BRAND PORTFOLIO:
maximizing the market reach with the number of different
brands without brand cannibalization
Brand hierarchy
1. Corporate / company (Unilever)
2. Family (Unox)
3. Individual (Cup-a-Soup)
4. Modifier (different flavours)
What if a new product is invented?
1. A new brand, especially for the new product
2. Using an already existing brand3. A combination of both
brand extentions
• line extensions:The family brand (umbrella) is used on a new related
product group
• category extensions:The family brand is used for a totally new product
category
brand activation
Changing consumerConsumers….… have more power…
…can buy more products…
…can get a lof information… (!!!)
…can easily contact organizations…
…can get in contact with other consumers very easily… (!!!)
To personalize marketingExperience marketingOne to one marketingPermission marketing
experience economy:brand activation
“... when a consumer buys an experience, he pays to spend time
enjoying series of memorable events that a company stages – as a theatrical play – to engage him
in a personal way...”
The Experience Economy (Pine & Gilmore, 1999)
brand activation
1. Traditional media 2. New media
Or?brand activation
1. (Brand)paid media
2. (Brand)owned media
3. (Brand)earned Media
brand earned media??
Media type
Definition Examples The role Benefits Challenges
(Brand)paidmedia
Brand pays to use channels
•Display ads•Paid search•Sponsorships
Active role in enlarging brand knowledge
•In demand•Immediacy•Control
•Overload•Declining response rates•Poor credibility
(Brand)owned media
Channels a brand controls
•Website•Mobile site•Blog•Twitter
Build for longer-term relationship with existing potential customers
•Control•Cost efficiency•Versatility•Niche audiences•Long term
•No guarantees•Not trusted•Takes time to find segments
(Brand)earnedmedia
When customers become the channel
•Buzz•Viral•Experience
Listen and respond. Interact. Create. Come alive
•Most credible•Transparent and lives on•Strong ties with customer
•Less control•Can be negative•Hard to measure
...a focus on quality of communication, not on
quantity or reach
more focus on impact...
“...a brand is a perfect tool for transferring
information, meanings and feelings through media...”
values
brand
community
target group
sub-target group
brand X
band X
values
tokiohotel
community
• young
• creative
• urban
• metro-sexual
a band gives input to the meaning and value
of the brand:
“…if the band srews up, so does the brand…”
Session 5 measuring brand value
& international branding
strategic brand management process
1. identify and establish brand positioning and values
2. plan and implement brandmarketing programs
3. measure and interpret brandperformance
4. grow and sustain brand equity
brand measurement
“ I’m putting all this effort into my brand, working on the image, giving it the right colors, the right look, the right communication-tools. But is it
working? Does this ‘brand building’- thing have any result at all?”
Why measure brands?• to measure how strong the brand is in
comparison to competitors• to review marketing campaigns (return on
marketing investment)• to value brands in order to put it in the
annual financial overview
brand equity measurement system
“...a set of research procedures designed to provide timely, accurate and
actionable information for marketeers so that they can make the best possible tactical decisions in the short run and the best
strategic decisions in the long run...”
source: Kevin L. KellerBuilding, measuring and managing brand equity
different ways to measure1. Brand value chain
2. Brand following
3. Brand asset valuator (BAV)
international branding
Regions (local) vs. The world (global)
• Increasing amount of niche markets• Increasing amount of consumer data• Increasing amount of 1-to-1 marketing
Why brands go abroad?• Home market is saturated• Heavy competition on the home market• Extra growth possible abroad • Overcapacity• Spreading risk
Hofstede’s 5 dimensions
• Power distance and acceptance• Individualism• Uncertainty avoidance• Masculinity (emotional roleplaying)• Long term orientation• Indulgence vs. restraint (to control desires)
Differences between countries & cultures:
• Consumer needs / usage• Reactions on marketing mix elements• Competitive environment• Legal environment• Marketing infrastructure• Bureaucratic procedures
good luck!!