branding
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how to brand a productTRANSCRIPT
Brands and Stakeholder Relationships
Key Points: What does it mean to say that a brand is more than
a product? Explain the three steps in building a brand. What are the key factors in creating brand
relationships? What is brand equity and how is it affected by
brand relationships?
Marketing evolved from Economics
During 20th century, focus on exchange through manipulating the price, promotion, distribution of ideas, goods and services to satisfy customers and organisational objectives
“Rational Consumer” not swayed by image or intangibles
Must constantly innovate, improve product quality Brands = identification to distinguish your product
from competitors
But now…..
70% of “tangible” (physical) innovations are copied by competitors within 1year
Physical attributes get you in to a market but are not sustainable competitive advantage
What “brand” means
A perception resulting from experiences with, and information about, a company or a line of products
Exists only in people’s hearts and minds Differentiates products from competitors Makes a promise to customers
Brand value
Nike versus New Balance
Coke versus Cott
Laurier versus Laurentian
Brand value
You “believe” one brand performs better You “trust” the performance claims You buy “benefits” not products
Branding
Process of creating a brand image that
engages the hearts and minds of customers
Branding
Really, at its core, branding is simply marking something and saying, “This is from me.”
Karl-Heinz Kalbfell, Global Head of Brand
and Product Strategy, BMW Group
Intangible Attributes
Intangibles are important in brand building: Harder for competitors to copy More likely to involve consumers emotionally
Emotion triggers brain 3000x faster than rational thought
More consistent with how consumers choose
Brand more than a logo
Not just a name (McDonalds) Not just symbol (golden arches) More than identification How you feel and what you think when
you see the name/symbol No brand = commodity
New Brand definitions...
“A perception of an integrated bundle of information and experiences that distinguishes a company and/or its product offerings from the competition.”
“The sum of a customer’s experiences with a product and/or company.”
Tom Duncan
New Brand definitions...
“The visual, emotional and cultural image
that surrounds your association or
organization and its products and services.”
Where does a “Brand” come from?
Customers form perceptions from: Cues Signals Other types of communication messages Experiences
Both products and companies are considered brands
Cues
Attributes provide cues to support perceptions you want to create
What Does a “Brand” Do?
Saves consumers time Creates trust or level of expectation Provides psychological attributes
Brand Loyalty
What loyalty cards do you use? What role do they play in the MC program?
Brand Building
“Building a brand is all about conveying
proof points that whatever product you pitch
is worth my attention and my hard-earned dollar as a consumer and as a business owner.”
Steven Cody, Managing Partner, PepperCom
The Brand Promise
Essence of a brand is a promise Brand management = managing customer
expectations Don’t make promises you can’t deliver
The Coca-Cola Promise
The Coca-Cola company exists to benefit and refresh everyone it touches.
The basic proposition of our business is simple, solid and timeless. When we bring refreshment, value, joy and fun to our stakeholders, then we successfully nurture and protect our brands, particularly Coca-Cola. That is the key to fulfilling our ultimate obligation to provide consistently attractive returns to the owners of our business.
http://www2.coca-cola.com/ourcompany/ourpromise.html
Employee Marketing
Employees ultimately deliver the brand promise every day
If corporate culture is the brand…. Then employee marketing is the branding
Brand Equity
Two basic components determine a company or a brand’s value:
Physical net assets, e.g. plants, equipment, and land
Brand equity – the intangible value of a company beyond its physical net assets
Interbrand’s Most Valuable Brands
July 28, 2006 Rankings
1. Coca-Cola $67,000
2. Microsoft 56,927
3. IBM 56,201
4. GE 48,907
5. Intel 32,319
6. Nokia 30,131
7. Toyota 27,941
8. Disney 27,848
9. McDonald’s 27,501
10. Mercedes 21,795Source: www.interbrand.com/best_brands
How are Brands Evaluated?
Calculate overall brand sales Project net earnings Deduct projected earnings from ‘tangible assets’ Use market research to isolate “brand” from
remaining intangible assets (e.g.patents, customer lists, etc.)
Testing Brand Value
Conjoint Analysis Statistical method that captures trade-offs: service vs. price vs. features vs. brand name
Dollarmetric Scale AMC unidentified model – asked what would
customers pay for it Identical TV sets examined by consumers
Vs.Vs.
Five Elements of Brand Equity
Brand-name awareness Brand associations Perceived quality Proprietary brand assets Brand loyalty
Steps in Building a Brand (V1)
1. Select a name and symbol
2. Create awareness and brand identity
3. Position the brand
4. Create a brand image
5. Create trust/build a relationshipfrom Duncan first edition
Steps in Building a Brand (V2)
1. Select desired brand position
2. Develop brand identification
3. Create a brand imagefrom Duncan second edition
1. Positioning
Defined by consumers on important attributes
Place in mind relative to competing products
Position happens - planned or not
Positioning
G
Against aCompetitor
Against aCompetitor
UsageOccasions
UsageOccasions
Away fromCompetitors
Away fromCompetitors
ProductAttributes
ProductAttributes
ProductClass
ProductClass
BenefitsOffered
BenefitsOffered
UsersUsers
B D
C
G
F
A
E
Positioning Map
Luxury Automobile MarketHigh Price
BMW750iL
ToyotaSupra
Nissan300ZX
MercedesBenz 400EPorsche
Audi 325iCabriolet
Low Price
SedanSports Car
Jaguar XJSAudi Quattro
Nissan Infiniti
Toyota Lexus
CadillacAllante
Ferrari
LotusTurbo Esprit
2. Develop Brand Identification
Choose brand name Has to be memorable
How to do this? Benefit description Association Distinctive Pronounceable
2. Develop Brand Identification
Choose brand symbol An effective logo:
Communicates brand image and positioning Is simple, distinctive, and relevant Often legally protected as trademarks
3. Create Brand Image
An impression created by brand messages and experiences and assimilated into a perception or impression of the brand
E.g. Marlboro Man
Brand Icons of the 20th Century
1. The Marlboro Man2. Ronald McDonald3. The Green Giant4. Betty Crocker5. The Energizer Bunny6. The Pillsbury Doughboy7. Aunt Jemima8. The Michelin Man9. Tony the Tiger10. Elsie the Cow
Rankings based on an Advertising Age survey
Branding Strategies
Ways of maximizing the communication impact of brands
Critical elements include: Brand Extensions Multi-tier branding Co-branding Ingredient branding
Brand “Personality”
Anthropomorphism - giving human characteristics to inanimate objects
If the brand were a person, what kind of person would it be?
E.g. Mercedes vs Miata Male or Female? Young or Old? How would it dress? What music would it listen to? Where would you see it?
Y&R Brand Asset Valuator
Proprietary 2-part model part 1 - strength of the brand image part 2 - brand personality scale
Y&R Brand Asset Valuator
Differentiation
Relevance
Esteem
Knowledge
Brand Strength
Brand Status
BRAND IMAGE
Brand Personality Scale
Sincerity
Excitement
Sophistication
Competence
Ruggedness
Brand Brand PersonalityPersonality
“Is it on Brand?”
Would our brand say that? Would our brand do that? Is it consistent with our brand image and
personality?
Communication Style Guide
Graphic Standards Manual Gives direction for the appropriate use of the brand
or corporate identity symbols such as the logo, color palette, and other stylistic details
Consumers modify your brands
“In the old days, the successful communication of a
personality through advertising gave the brand stable meaning. Now consumers are more proactive in reshaping brands.”
Michael Solomon (Auburn)
Successful Brands
are visible have clarity are relevant have longevity
Brand mantra
3 words that capture the brand’s essence Nike: “Authentic athletic performance.” Disney: “Fun family entertainment.”