brands & branding management presentation & discussion

8/2/2019 Brands & Branding Management Presentation & Discussion

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Brands and Brand

Management

Introduction and Discussion


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The Issue of Branding

Branding simplifies the complexity of

the offering via brand elements such as:

Brand names

Logos

Symbols

Package designs

Branding helps in the thought processes of

consumers when they are considering

purchasing or purchasing an offering.


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A brand name must be:

Unique

Distinctive

Easy to rememberEasy to pronounce

Relevant to the offering

Positive about the offering


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The Issue of Branding contd.

Branding helps in reducing risk

associated with an offering.

Used as a differentiating criteria between

offerings.

The genesis/basis of brand management

is consumer perceptionsthe need to

satisfy consumers perceived differences

between offerings.


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Let us define a brand..

Class exercise


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So, what exactly is a brand?

In its simplest definition,it is a name, term,symbol, feature or anycombination of these. It

is used/employed toidentify thedistinctiveness (special)of an offering (i.e.,product, service, brand)

from those ofcompetitors.

The legal term for brandis Trademark.


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The top ten global Brands

1. Coca-Cola

2. Microsoft

3. IBM

4. GE

5. Intel 6. Nokia

7. Disney

8. McDonalds

9. Marlboro 10. Mercedes

USA

USA

USA

USA

USA Finland

USA

USA

USA Germany Source: Business Week Special Report,

August 4th, 2003


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Discussion of CasesCoca-Cola

The formation and maintenance of brand-

product relationships provide the basis for

certain cultural roles/transformation.

Brands can command higher financial valuethan the net book value of tangible products.

The purchase of Kraft by Philip Morris

The Split-up of Saachi & Saachi Advertising Agency

between the original owners (Saachi brothers) and

shareholders & senior managers


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Brands

Because product differences are generally non-existent, brands have been successful increating a seeming tangible image of theproduct.

Products are made in the factory Brands are what consumers buy

The two statements are linked by the concept ofadded value

Brands help to create an image and establish apositioning for the firm/offering

Hence, brand management and positioning areintertwined.


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Brands

Firms (e.g., retailers) can introduce theirown brandsto further enhance theirpositioning/competitive advantage.

Retailers own brands, store brands orprivate label brands:

Sears Kenmore electricals, Craftman tools,DieHard batteries

M & S St. Michaels

ASDA (now Wallmart) George


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Brands

Brands extend beyond offerings into (a) people, (b) organizations, places, (d) countries Amazon.com brand

Martha Stewart

Bill Gates

Cindy Crawford

Michael Jordan

Tiger Woods

Bill Clinton

Las Vegas

Mecca

Amsterdam

Jamaica

London

Egypt

Morocco


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Brands

Virtually anything can be and has beenbranded

Similarly, anything can be positioned vis a vis

the competition

The issue of strong brands and weak brands --why are some brands stronger than others?

Any brandno matter how strong at any one pointin time is vulnerable and is susceptible to poorbrand management.


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Five Factors Leading to Brand

Leadership

1. Vision of the mass market

2. Managerial persistence

3. Financial commitment

4. Relentless innovation

5. Asset leverage

The underlying issue about the above is theconcept of added value


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What is added value?

this is the case/situation whereby the

finished offering can command a higher price

than the cost of its component parts or the raw

material used in producing itin other words...

The finished offering is more valuable to theconsumer than the pile of raw material from

which it was made.


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Branding and added value

One key issue about a brand is that when a

consumer is unable to make a rational choice

based on performance,

They rely on added values (and the image they havein their minds of the brand) to be able to distinguish

the firms offering from their competitors.

Consumers make these (rational) decisions because

of (a) numerous competing offerings, (b) perhaps,the consumer lacks the technical or expert

knowledge to judge the differences between

competing offerings.


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Added values are called brand values

They ensure that:

An offering will be

reliable,

The offering is thebest,

An offering is good

value for money.

Added values are based on:

Perceptions (the position of

the offering/firm in the

market place) of the firm and

the offering,

Believes about the firms

authority and its reputation in

the market

This may be based on market

share, history, consistency in

marketing, experts (or

family and friends)

recommendation.


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Brand values are emotional valuesoften

difficult to tangibilize/verbalize

Brand/added values are added to the offeringsthrough the application of marketingstrategies and tactics including the marketingmix4 Ps/7 Ps:

Product/service/packaging, Promotion/marketing communications,

Distributionlogistics,

Pricing

Service quality and delivery

Physical evidence of the premises/store/shop,

People who actually interact/deliver the service

STP marketing


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Brand/added values contd.

Brand values help create a uniqueness about

the offering where none may exist functionally.

They are the means by which offerings are

positioned in the market place. Brand values create a total image and

personality for the brand/offering.

To the consumer the brand provides aguarantee of quality, value for money, the best

choice.


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Brand Equity

fundamentally, branding is about endowing productsand services with the power of brand equity.. (Keller,2002, pp.42).

Brand equity refers to brand/added value that has beenassociated with the offering over time.

Brand equity = the value of the brand.

Several ways in which the value of a brand can bemanifested or exploited to benefit the firm:

(a) greater profits, (b) market share,

lower production costs

(d) clear and long-lasting position in the market place.


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How to achieve brand equity

Skillful design and implementation of

marketing programs

The capitalization on a well thought-out

positioning

Strong brand leadership position in the

market place


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What is strategic brand

management?

The design and implementation of

marketing programs and activities to

build, measure, and managebrand equity.


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Strategic brand management

process

Identifying and establishing brand

positioning and value.

Planning and implementing brand

marketing programs Measuring and interpreting brand

performance.

Growing and sustaining brand equity.


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What is brand mantra?

The most important and pivotal aspect of thebrand to the consumer and the firm It is the essence of the brand.

Thus, core brand/added values and a brand

mantra are an articulation of the heart andsoul of the brand.

once the brand positioning strategy has been

determined, the actual marketing program tocreate, strengthen, or maintain brandassociations can be put into place (Keller,2002, pp.45).


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Identifying and establishing brand

positioning and values

Determine the full meaning (mantra) ofthe brand vis a vis competitors,

Assess perceptions of the target audience

andAssess the firms own capabilities via

marketing audit.

The goal is to place the brand image in themind of the customer so as to maximize thefirms benefits.


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Challenges facing brand

management

Managing brand equity over time.

Managing brand equity over geographic

boundaries, cultures, and market

segments.

Changing PESTLE of the market place.

Stochastic consumer perceptions


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Product brands vs corporate brands

Product branding buildsseparate brand identitiesfor different products-the imagery varies from

one brand to another: Sprite and Mr. Pibb

under Coca-Cola

Lux and Dove fromUnilever

Toyota and Lexus fromToyota

Honda and Acura fromHonda.

Corporate brandingrefers to the strategy inwhich the brand andcorporate name are the

same IBM & Nike = USA

RBS & Virgin = UK

Sony & Mitsubishi =Japan


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Question?

What do the following mean?

Added value

Brand value

Brand equity Brand mantra

Brand personality

Product brand

Corporate brand

Positioning.


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Corporate branding

The issue of company branding


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Corporate branding contd.

Companies with a more positive

reputation appear to project their core

mission and identity in a more systematic

and consistent fashion than those withlower reputation rankings.

High reputation companies try to impart

more information about their offerings,their operations, identity and history.


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Corporate Branding contd.

According to Bickerton (2000), the concept ofcorporate image/reputation started from acustomer market perspective.

Further appreciation of the environment gave

the impetus to the development of brandmarketing.

To this end, there are two perspectives toacademic thinking about corporate branding:

(a) marketing perspective and (b)multidisciplinary perspective.


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Relationship of the academic thinking (two

schools of thought)

Marketing PerspectiveCustomer focus.

Brand image

Brand positioning

Brand identity

Corporate associations Corporate branding

Multidisciplinary PerspectiveOrganization focus.

Corporate image

Corporate personality

Corporate associations

Corporate branding


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The pivotal role of marketing

communications

Importance of marketing communications in the branding process (corporate andofferings) is supported both conceptually and empirically.

Communications revolve around (a) management, (b) marketing and (c)organizational and

(d) brand stakeholder audiences.

Brand stakeholders that have an economic interest include

Employees

Shareholders

Suppliers

Partners (other owners of the business).

Brands have an economic impact (affects) on:

Customers

Opinion formers (politicians) Regulators and Legislators.

Based on Bickerton D. (2000), Corporate reputation versus corporate branding: the realist debate,Corporate Communications: An International Journal, Vol.5, No.1, pp.42-48.


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Questions?

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