brand and technology management

8/10/2019 Brand and Technology Management

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BRANDING

AND

TECHNOLOGY

MANAGEMENT

Presented by :-

AJAY KUMAR RATHORE (02MBA2013)

NATASHA THAKUR (27MBA2013)

SIDHARTH GUPTA (50MBA2013)

VISHAL GUPTA (57MBA2013)


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ABSTRACT

Globalization and the advance of technologies (particularly Internet) have

changed and will continue to change things like behaviors of customers as wellas the competition strategies of companies. The customers still ask for high-

quality and low-cost products/services.

Product life cycles are relentlessly shortened and the importance of new product

development has been recognized. The companies should response to these

changes in environment, should provide a suitable product variety in order to

survive and be competitive in the market.


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Thus "technology and its management" is considered to be the most valuable

competition weapon that adds value to the products. However, products arenowadays become homogeneous in the eyes of customers, so there is a still

need for differentiation of technology products.

Today, the companies producing technology products really need "branding"

as a key weapon in order to differentiate themselves from their globalchallengers.

One of the goals of the technology management is commercialization in

which inventions and innovations are converted into marketable products and

processes. Therefore, branding could be used as a reinforcing marketingelement in the technology management continuum.


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1) why technology companies need "branding"/"brand management";

2) how "technology management" continuum benefits from "branding"/"brandmanagement";

3) how brand management is synchronized with the "technology management";

4) effect of brand naming; and

5) Effect of technological advances on the brand names


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Technology

Branding

Brandmanagement

andtechnology

benefits

Technologyeffects

Brand name


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INTRODUCTION

Branding has become one of the most important aspects of a marketing strategy.

Profitability is directly linked with an organizations ability to differentiate and

brand its products.

Brands become one of the key sources of a Sustainable Competitive Advantage.

Brand Management is no more restricted to Fast Moving Consumer Goods. In

order to stay competitive new sectors such as Industrial Goods Companies,

Media, Software, Banks, Insurance, Telecommunication, Retail and other

service industries need to build and manage brands.


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Managing brand is an important issue and thus software applications are nowavailable that can help you manage your brand right from your desktop. It iseasy to dismiss brand asset management software as yet another expense your

business could do without, but the brand is one of the most importantresources that your business should protect at all costs. And once your brand

becomes more exposed as it penetrates more markets - often on aninternational scale - managing your brand's marketing becomes very importantindeed.

Mismanaging your brand can also have grave financial consequences. Forexample, General Motors marketed its Nova model in Spain and SouthAmerica without a name change. Unfortunately, 'No va' means 'doesn't go' inSpanish! A robust asset management system would have eliminated the risk ofthis kind of mistake being made.

As Clare Millar, head of marketing for Company Net, explains, assetmanagement is now more important than ever: "Brand asset managementsoftware - which uses technology to help organisations aggregate, store andshare information - can reduce costs and improve day-to-day marketingoperations.


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"Any marketer or brand manager understands the complexities and the time

involved in creating and managing assets such as graphics, images, audio,video files, documents and style guidelines. The problem is that these assets are

created more quickly than they can be managed, and this can lead to a messy

and unstructured method of storing and accessing them."

According to industry research by Gistics, an average marketing professionallooks after 5000 brand assets in more than 400 different formats and performs

around 10 asset searches a day. Of these, around 35 per cent fail, and wastes

around 10 per cent of the practitioner's day. And replacing assets that are lost or

misplaced costs organisations a huge amount of money, year-on-year. Asset

management systems are now recognised as a way of saving time and money,and with average return on investment of between seven and 15 times the costs

of the system, it's hugely appealing to brand-led organisations.


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Slow to catch on to the benefits of branding have been those companies thatare steeped in technology.

Even if they have been producing goods for public as opposed to business

consumption, they have showed some reticence in embarking on brand

investment.

Where it is commonplace to spend large amounts of money on plant and

capital equipment in technology-based industries, investing in brands has been

relatively ignored. As a result, there are few powerful technology brands, and

yet they would seem to be in desperate need of branding as a major tool inorder to differentiate themselves from all their competitors


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WORLD OF PARITY

Perhaps one of the reasons why technology companies have not given

branding a high priority, is that technology product and service markets have

not been very cluttered until the last decade of the twentieth century.

In1990's many consumer goods market reached the stage of maturity where

they were at bursting point with a proliferation of products, technology has

only recently become so.


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But now the world of parity has hit technology markets as well. And it is

technology itself that has hastened this adverse situation. In the twenty first

century, it is so much easier to copy a competitor's products, services,

systems and so on, that the name of the game has now become how to

stand out from the crowd.

Technology is becoming a commodity business, and the relatively

established hi-tech companies that find themselves being sucked in to the

commodity trap, such as Sun Microsystems, are now realizing the role

branding plays in staying out of it


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SHORTER LIFE CYCLE

Another factor that has awoken technology companies to the fact that branding

is important is the relentless decline of product life cycles, which have now

reduced to a matter of weeks from what used to be years.

In fact, some Japanese companies are now working on product life cycles of 6-

8 weeks. Faced with such frightening product change and with competitors

continuously bringing new products to market and enhancing others, brands are

literally the only thing that represents stability to both companies and

consumers.

In fact, there is a dawning realization now amongst technology companies thatbrands need not have life cycles - that they can last indefinitely. This is a

massive attraction.


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CONVERGING AND NEW TECHNOLOGY

As if product proliferation and life cycle decompression were not enough,technology companies now find themselves surrounded by collapsingmarket boundaries, driven by the convergence of technologies.

Companies can leap industries by simply acquiring the necessary

technology, and where companies thought they understood the nature of thecompetition, they can be astonished by how quickly things can change.

Ten years ago, companies such as Time Warner would never haveenvisaged merging with Internet-based companies such as AOL.

The Internet was just not in the public domain then. But it is the powerfulbrands that always win the battle for market dominance in this fastchanging world.


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RETURN ON INVESTMENT

Pouring money into technology can be the wrong move unless you have a

brand that really stands for something in the minds of consumers, and

technology investment demands high returns.

The powerful brands provide both consumer trust and high returns.

Consumers will not buy from companies that do not have a good brand image,

particularly in technology markets where the products are relatively complex

and often not fully understood and will only buy trusted brands.

Developing a brand is not cheap, but the returns can be spectacular.

Strong brands can command premium prices wherever they choose to go, and

can often be worth more than the net asset value of the business enterprise.


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BRANDING IS MORE IMPORTANT FOR HI-

TECH COMPANIES

Three problems are faced by tech- based companies nowadays :

Technology-based companies are faced with perpetual change, and this

seemingly goes against the whole basis of branding, which is consistency.

Secondly, there is product parity, any products physical form can be copied,

consequently traditional unique selling proposition fails.

Lastly, the cautious nature of consumer decision-making with regard to

technology products makes it more difficult when trying to persuade them to

buy.


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The approach and philosophy of communications is based on the premise

thatbuilding a technology brand is not same as building consumer

brand.

A techno-brand cannot be created without understanding of consumer's

approach. Therefore first step to be applied is understanding consumer's

perception. Consequently, producers should be technology driven but

focus should be kept on consumer perceived benefits.

Percieved

BenifitModel


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Technology companies are mostly technology driven and do not focus on

the most critical thing in marketing - "what the customers want". The

technology is meaningless if the consumers don't have real advantage out

of it.

MOTOROLA is one of the examples of violation of this rule. Motorola hadthe excellent technology in cellular phone segment but it made tactical

mistake staying with technology-driven brand figure when most of the new

customers cared less about that and more about fashion and reliability.

On the other hand, Nokia used the slogan of "Nokia, Connecting People",

that is emphasizing the product's ease of use. Nokia worked on designing,aesthetic aspects and other features like inbuilt games, directory, calendar,

and regional language interface.


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All this time Motorola was still busy for developing and hunting for newtechnology, while Nokia increased its touch with customers by heavy

advertising, movie tie-ins, sponsoring sports events.

With 50 to 60 software companies starting up each month in Silicon Valley

alone, and over 10 million web-sites out there in cyberspace, hi-techmarketplace is becoming a crowded road and Only a strong brand will help

hi-tech companies to survive through immediate and lasting

differentiation


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Philips : Brand That Matters

Philips was a major manufacturing presence by the turn of the century and a

clear innovator throughout Europes industrial revolution.

It is based in the Netherlands and boasting a 115,000+ multinational workforce

across 60 countries.

Its global reach to date includes sales of EUR 26 billion in 2008, a brand that

spans 100 countries, a base of 50,000 products, and a foundation of multilingual

product content available across 57 countries and translated in 35+ languages

Royal Philips Electronics has been regularly innovative and evolutionary,

resulting in a global brand foundation that has stood the test of

time and disruption in the form of economic, technological, and

consumer empowerment trends in the healthcare, lifestyle and

lighting industries


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Philips is a market leader in medical diagnostic imaging, patient monitoring

systems, energy efficient lighting solutions, and lifestyle solutions for personal

well-being.

Philips gets that brand matters and it takes the mission to a higher level by

understanding that people matter.

Thus, the belief that the consumers need relevant propositions and information

to obtain better healthcare, be energy efficient, and empower their own well-

being prevails.

Understanding the inherent relationship between content and brand enables

Philips to successfully position itself as a market-driven, people-centric company.

We empower people to benefit from innovation by delivering on our brand promise of

sense and simplicity. This brand promise encapsulates our commitment to deliver

solutions that are advanced, easy to use, and designed around the needs of all our users

~ Philips


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Content consistency is also an important aspect.

Producer's objectives, missions and visions should be considered for this

consistency. It must be ensured that every aspect of the organization, from

marketing materials and etc.

Factors considered for techno-branding steps are :-

A. Measure target consumer's perception of technology

B. Create a differentiating unique image

C. Think web technology as a part brand

D. Materialize the vision, mission and quality

E. Insert message into brand (avoid dictating and be consistent with existing

assets)

F. Construct a branding strategy for long horizon and then a plan for the

shorter terms

CONTINUED.


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G. Revise and reposition the brand according to the changes (to not

deviate that will create dilemmas)H. Materialize the vision, mission and quality

I. Insert message into brand (avoid dictating or being didactic and, be

consistent with existing assets)

J. Construct a branding strategy for long horizon and then a planfor theshorter terms

K. Revise and reposition the brand according to the changes (to not

deviate that will create dilemmas)


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Brand naming/Brand logo

Brand naming/ logo designng is a creative process, Some companiesprefer reflecting their technologies in their branding strategy.

An advanced automatic focusing camera introduced by Canon with thename of "Intelligent Focus or a

brand called Technanology givesus an idea about the products.

It is important to create brand namesand logos that make sense for averageconsumers. Technology emphasissometimes may not work becauseof lack of consumer's knowledgeabout the technology.


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Conclusion

Branding is so important to differentiate the products in the competitiveglobal environment even though Branding has a specific and special

meaning in technology products.

The accelerating and chaotic nature of technological change causes

problems for those trying to establish, develop and manage their brands.

Another issue making techno-brands such as critical is the realty of long

term existence of brands whenever compared to the product life cycles.

Thus, instead of the term "branding", "brand building" has been started to

be used, which is more than naming; it is being realized under a strategy.

Moreover, in techno-branding, technology management must be

synchronized with branding strategy.


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Perception of the consumers is one of the essential issues that should be

considered in branding. Therefore, analysis of the customer perception

should be studied.

The brand should define the producer uniquely and should distinguish itfrom others. Consistency of the message created must be constructed

upon the base of producer's long-term assets. As it can be concluded from

the case study, especially the national brands' message focusing on being

a global brand is going ahead from their competitors.


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THANK YOU

brand and technology management

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