bm 9 marketing element for be and csr

“ We can, We will ”

Brand Management 9

Marketing Elements for Brand Equity / CSR

Shim, Jae hak

Cold Call

2015-05-04 Shim, Jaehak ([email protected])

Brand Equity?

C.B.B.E.?

2

Contents

1

Strategic Brand Management2

Marketing Elements for brand equity


What we will discuss and achieve today ?

3

Sustainability of Brand and CSR

4

3

Key Imperatives for CSR

I.M.C. and Brand


Integrated Marketing Communication

Targeted

Unified

Consistent

Coordinated

Comprehensive

4

Thing

Experience

Prodices

Solution

Meaning

(performance)

(better performance)

(problem solving)

(feeling)

(Interpretation)

Heart

Mind

Soul

Marketing 4 P Mix Element for Brand Equity

Product

Emphasis on the product features

which are based on brand personality

That contribute to perceived product quality

Quality : Features that compliment core attributes

Conformance quality (Absence of defects)

Reliability & Durability

Prodice : Serviceability

Aesthetics : Style and Design

2015-05-04 Shim, Jaehak ([email protected]) 5

Based on perceptions of a brand‟s position

Consumers‟ expectation

Brand personality

Price as quality assurance

A communication tool for building brand equity

Premium pricing (Prestige pricing)

• Consistently high price interlinked with value perceived from

product

• Ownership of high price products

signals „membership‟

Low pricing (Value pricing)

• Minimize the price fluctuations

• Prevent to discount the brand value

directly



Price

6

Communication tools

Tradition 4 main media : TV, Radio, Print (newspaper,

magazine), and Out door

Internet : Mutual communication

Sales promotion : customer pm, trade pm

Publicity : Public relations, sponsorship

Personal communication : telemarketing, selling

Key communication decision

Media selection

Message content depend on media

Integrated Marketing Communication


Marketing 4 P Mix Element s for Brand Equity

Promotion

7

Select the channel strategy based on the

positioning, PLC and market environment

Strategy options

Direct channel strategy when the product information, product

customization, quality assurance is relatively important

Indirect channel strategy when availability (distribution), low scale

of sales

Consideration from current market environment

Shift in balance of power between manufacturer and channel

Reduced brand loyalty

Splintered mass market & reduced media effectiveness

The role of retailer image



Place

8

Tell me….


The power of the 5th „P‟ (Gallup, William J. McEwen)

The most important driver of brand loyalty


The 5th Element

10

The 5th P The Moment of Truth

„Moment De La Vardad‟

So important not to accept mistake

The short contact but it can change the

brand image and future of the company

(Jan Carzon, The moment of Truth)

People as Brand Ambassador

Different cultured

Sometimes irrational and inconsistent

Management customer experience

Must be in the same Brand Identity


Integrated Marketing

Communications

The “voice” of the brand

A means by which it can establish a dialogue and build

relationships with consumers

Allow marketers to inform, persuade, provide incentives,

and remind consumers directly or indirectly

Can contribute to brand equity by establishing the brand

in memory and linking strong, favorable, and unique

associations to it


Developing IMC

Programs

Mixing communication options

Evaluate all possible communication options available to create

knowledge structures according to effectiveness criteria as well as

cost considerations.

Different communication options have different strengths and can

accomplish different objectives.

Determine the optimal mix

And then Plan-Action-Evaluation Cycle


Evaluating IMC

Programs

Coverage: What proportion of the target audience is

reached by each communication option employed?

Frequency: How many times target audience are

exposure to IMC ?How much overlap exists among

options?

Cost: What is the per capita expense?

Contribution: The collective effect on brand equity in

terms of enhancing depth and breadth of awareness

improving strength, favorability, and

uniqueness of brand associations

2015-05-04 14Shim, Jaehak ([email protected])

Evaluating IMC

Programs (cont.)

Commonality: The extent to which information conveyed

by different communication options share meaning

Complementarities: The extent to which different associations

and linkages are emphasized across communication options

Versatility: The extent to which information contained in a

communication option works with different types of

consumers

Different communications history

Different market segments


Brand Communication

Guidelines

Be analytical : Use frameworks of consumer behavior and managerial decision making to develop well-reasonedcommunication programs

Be curious : Fully understand consumers by using all forms of research and always be thinking of how you can create added value for consumers

Be single-minded : Focus message on well-defined target markets (less can be more)

Be integrative : Reinforce your message through consistency and cuing across all communications


Marketing Communication

Guidelines (Cont.)

Be creative : State your message in a unique fashion; use alternative promotions and media to create favorable, strong, and unique brand associations

Be observant : Monitor competition, customers, channel members, and employees through tracking studies

Be realistic : Understand the complexities involved in marketing communications

Be patient : Take a long-term view of communication effectiveness to build and manage brand equity


Complete

Brand Guide Line

Dunhill


..\hand out\Duhill guideline.pdf

Strategic Brand

Management

Strategic brand management involves the design and

implementation of marketing programs and activities

to build, measure, and manage brand equity.

The strategic brand management process is defined as

involving four main steps

Identifying and establishing brand positioning and values

Planning and implementing brand marketing programs

Measuring and interpreting brand performance

Growing and sustaining brand equity


Strategic Brand

Management Process

• Mental maps

• Competitive frame of reference

• Points of parity and points of differences

• Core brand values

• Brand mantra

Identify and Establish

Brand Positioning and Values

• Mixing and matching of brand elements

• Integrating brand marketing activities

• Leverage of secondary associations

Plan and Implement

Brand Marketing Program

• Brand value chain

• Brand audits

• Brand tracking

• Brand equity management system

Measure and Interpret

Brand Performance

• Brand-product matrix

• Brand portfolios and hierarchies

• Brand expansion strategies

• Brand reinforcement and revitalization

Grow and Sustain

Brand Equity

Steps Key Concept


Managerial Assistance

for Brand Management

Genuine top management commitment to, and

communication of, brand values not just lip service!!

Build esprit de corps & socialize new people into the

brand

Team building initiatives

A „bottom-up‟ approach to brand building

Decentralize market intelligence generation

Market-based reward systems

Avoid the “folly of rewarding A while hoping for B


Guide Lines for

Brand Management

1. Protect your brand

2. Honor your stakeholder

3. Treat your brand as an investment, not a cost

4. Exploit the financial potential of your brand

5. Understand that successful brand management

nowadays is a complex task

(Tom Blakett, The Economist)


“The world is unequal, unstable and unsustainable-

governments alone can’t move us where we need to

be”

Bill Clinton, 2006


Reality of the

Global Economy


Real World


What do you Want ?


What do you want

to be ?


Why be on the light

side ?


Answer is….

Because we are good Christian ?

Or we believe responsibility as a „Good Samaritan‟?

Or due to the cost efficiency due to the tax reduction ?

However,

We are not charity non profit organization…..

The real justification is the fact that customers care

about social and environmental issues.

“ We want to make more sustainable profit in long

term “


Positive Ethical Behavior

over the World‘ % agreeing “I make sure I regularly buy product or service from

companies that…’


Understanding

Ethical Behavior

77% of CEOs and Marketing Directors believe CSR can

enhance corporate and brand reputation

86% of consumers said that they would have a more

positive opinion of the company that is doing something

to make the world a better place regardless of the cause

or issue concerned

(A Research International study in 1996, UK)


The Media Response


Corporate Social

Responsibility

“Perhaps we have the opportunity to be a different type of global

company, a global brand that can build a different mode, a

company that is a global business, that makes a profit, but at the

same time demonstrates, a social conscience and gives back to

the local market.” (Howard Schultz, CEO, Starbucks)


CSR &

Brand Management

If you can prove that your business is making a positive

contribution to the societal challenge then you can create

ADVANTAGE

If others can prove that your business is making our societal

challenge more difficult then you are exposed to

REPUTAION RISK

(Freud Communication 2007)

A company's reputation can quickly be tarnished if activists target its policies and practices


Nike Case

Background

$18.6 Billion revenue in 2008 globally

Focus on development of the product and marketing

Manufactured all product through outsourcing over the world

Issue

Child abuse and labor exploitation in the 3rd world

Pakistan case publicized by Life Magazine, 1996

Similar Issues in China and Indonesia

Result

Lose share to Rebok and Addidas in 90s

And then,….

• Marketing effort and New contact

• The criticism continues


Body shop Case

Starting as a small cosmetic shop since 1992

Strong Policy for sustainable business

RRR campaign (Refill, Reuse, and Recycle )

Against animal testing (AAT) but botany raw material

Fair Community Trade

Result

Top ranked in „Ethical Reputation Index‟

Average 9% growth rate in last 10 years


Sustainable

developmentThere is a lot wrong with our world. But it is not as bad as many

people think. It is worse… The lesson is that if we continue with

activities which destroy our environment and undermine the

conditions for our own survival, we are the virus. Making the

change needed to avoid that fate is perhaps the greatest challenge

we have ever faced.

Michael Meacher (UK Environment Minister),


Definitions of

sustainable development

“…development that meets the needs of the present without

compromising the ability of future generations to meet their

own needs.”

Source: G H Brundtland, 1987, Our common future, report of the World

Commission on environment and development, Oxford University Press.

“The goal of sustainable development is to enable all

people throughout the world to satisfy their basic needs

and enjoy a better quality of life, without compromising

the quality of life of future generations…

Source: UK Sustainable Development Commission,

http://www.sd-commission.org.uk/pages/principles/definitions.html


Sustainability ?


Social• empowerment

• inclusion/consultation

• institutions/governance

Environmental• resilience/biodiversity

• natural resources

• pollution

Economic

• inter-generational equity• values/culture

Poverty

Equity

•growth

•efficiency

•stability

Source: M Munasinghe, 1992, Environmental Economics and Sustainable

Development, Rio Earth Summit, World Bank, Washington DC.

Three pillars of

sustainable development


Key Imperatives for

CSR

Don’tsDos

Select a cause that is a good

fit both in terms of your core

business &value and your target

audience

Set out to develop a long term

partnership with the cause

Agree on joint activities,

events, areas within the cause

that you can own and grow

Develop local communication

plan that reach out all

stakeholders

Create many touch point

possible

Change causes frequently or

support too many non-related

causes

Choose a cause that does not

resonate with your target

audience

Create CSR initiatives as a

„PR exercise‟ (Take time)

Try to create campaign from

one department only

Expect your charity partner to

adjust their cause to your

objectives and work


Source) Ogilby CSR Training 2006

Possible Global

Charity Partners


Wrap-up

Marketing elements for brand equity 4 P Mix & 5th P

Strategic Brand Management

Corporate Social Responsibility

Concept

Potential of CSR for Marketing

The essence of CSR for Brand Management

Sustainable Development

Key imperatives for CSR activates


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