MKM5955

Lecture 7

Branding

• What is branding?

• Creating brand value and equity

• Brand elements

• Brand marketing activities

• Case study - CPA Australia re-invent it’s brand

for the global market

This lecture …

Past Exam question

A brand has one strategic purpose and that is

to differentiate itself from competitors.

Discuss. (25 marks)

Brand

The power of

brands

Branding is everywhere.

Brand is not a logo, corporate identity,

advertising, marketing.

Brand is confidence, passion, belonging,

action, security, a set of unique values.

Brand

A brand is a name, term, sign, symbol or design, or a

combination of them, intended to identify the goods or

services of one seller or group of sellers and to

differentiate them from those of competitors.

Branding is endowing products and services with the

power of the brand.

The role of brands

• Identify the maker

• Simplify product handling

• Organise accounting

• Offer legal protection

The Jamie Oliver brand print

Brand equity

• Brand equity is the added value endowed on products and services, which may be reflected in the way consumers, think, feel, and act with respect to the brand.

• Arises from differences in customer response.

• Differences in response from differences in consumers’ brand knowledge.

• Customer-based brand equity can be positive or negative.

Brand equity

Advantages of strong brands

• Improved perceptions of product

performance

• Greater loyalty

• Less vulnerability to competitive

marketing actions

• Less vulnerability to crises

• Larger margins

• More inelastic consumer

response

• Greater trade cooperation

• Increased marketing

communications effectiveness

• Possible licensing opportunities

The brand promise

A brand promise is the marketer’s vision of what the

brand must be and do for consumers.

Brand equity

Brand value

Brand equity models

• Brand Asset Valuator (BAV)

• Aaker Model

• BRANDZ

• Brand Resonance

BAV Key Components

• Differentiation

• Energy

• Relevance

• Esteem

• Knowledge

Aaker model

• Brand identity

• Core identity elements

• Extended identity elements

• Brand essence

BrandDynamics pyramid

Brand resonance pyramid

Brand equity drivers

• Brand elements

• Marketing activities

• Meaning transference

Measuring brand equity

• Brand value chain

• Brand audits

• Brand tracking

• Brand valuation

Brand value chain

The 10 most valuable brands

Managing brand equity

• Brand reinforcement

– E.g. Volvo

• Brand revitalisation

– E.g. Harley-Davidson

Interbrand’s brand equity valuation

Brand

elements

Resonate with

audience

Brand elements are

trademarkable devices that

identify and differentiate

the brand to encourage

choice.

Brand elements

• Memorable

• Meaningful

• Likeable

• Transferable

• Adaptable

• Protectable

Developing brand elements

• Brand elements should be easy to recognise and recall, and inherently descriptive and persuasive.

• Should capture intangible characteristics (e.g. Google, CPA logos).

• Slogans help the consumer grasp what the brand is and what makes it special.

• Resonate with your target audience.

Brand contacts

• Brand contacts are information-bearing customer

experiences (touch points) with the brand.

• Positive or negative.

Brand

marketing

• Personalisation

• Integration

• Internalisation

Designing holistic marketing activities

Personalised branding

Personalised branding involves making sure the brand and its marketing are as relevant as possible to as many customers as possible.

• Experiential marketing

• One-to-one marketing

• Permission marketing

Integrated branding

Integrated branding involves mixing and matching

marketing activities to maximise their individual and

collective effects.

• Brand identity

• Brand image

Internal branding

Internal branding comprises activities and processes

that help to inform and inspire employees.

• Choose the right moment

• Link internal and external marketing

• Bring the brand alive for employees

Leveraging secondary associations to

build brand equity

• Understand what resonate’s with target audience

• Develop new brand elements

• Apply existing brand elements

• Use a combination of old and new

Branding strategy for new products

Branding terms

• Brand line

• Brand mix

• Brand extension

• Sub-brand

• Parent brand

• Family brand

• Line extension

• Category extension

• Branded variants

• Licensed product

• Brand dilution

• Brand portfolio

Brand naming

• Individual names

• Blanket family names

• Separate family names

• Corporate name combined with individual product names

Brand extensions

• Advantages

– Improved odds of new-product success

– Positive feedback effects

• Disadvantages

– Brand dilution

– Brand cannibalisation

• Success characteristics

– Should ‘fit’ in consumers’ minds

Reasons for brand portfolios

• Increasing shelf presence and retailer dependence

in the store

• Attracting consumers seeking variety

• Increasing internal competition within the firm

• Yielding economies of scale in advertising, sales,

merchandising, and distribution

Brand roles in a brand portfolio

• Flankers

• Cash cows

• Low-end, entry-level

• High-end prestige