MKM5955

Lecture 7

Branding

What is branding?

Creating brand value and equity

Brand elements

Brand marketing activities

Case study - CPA Australia re-invent its 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 marketers 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

Interbrands 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 resonates 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