the role of branding in technology based companies

Marketing & Sales Roundtable

The Role of Branding in Technology-Based Companies

March 2005

2©2005 Rosemary Remacle

What is a Brand?

“A name, term, sign, symbol or design, or a combination of these that is intended to identify the goods and services of one business or group of

businesses and to differentiate them from those of competitors”

“A mixture of tangible and intangible attributes symbolized by a product or company, which is properly managed, creates influence and

generates value”

“Augmenting core product and value proposition with unique values that set it apart from competitors”


More Branding Definitions

Brand Assets Awareness Loyalty Perceived quality of experience

Brand Equity –the value of a brand. Brand equity is based on the strength of the brand assets. Brand equity also includes other assets such as patents, trademarks and channel relationships.

Brand Image –the set of beliefs that customers hold about a particular brand. It is important to develop these carefully since a negative brand image can be very difficult to dispel.

Brand Extension –the use of successful brand name to launch a new or modified product or service in a new market.


A Brand Is……

The sum total of a customer’s (the market’s) experience

with a product or companyover time


Why is a Brand Worth Building?

Brand awareness = higher valuations Brand equity = strategic asset Stabilizing influence for market participants, especially customers

Increasingly competitive environment (technology and product –proliferation)

Product life cycle compression ‘Consumer’ decision–making influences

Provides pre-emptive protection in highly competitive markets Enables pricing premiums, better profit margins Helps company enter new product categories and/or markets more

easily Lower risk factor Promotional costs Facilitates customer loyalty

Builds employee, partner pride in company/product

A strategic, sustainable competitive advantage


Strong brands establish a long-lasting place in short-lived markets

Value

Time

Brand Lifecycle

Product

Why is a Brand Worth Building? (con’t)


Positioning and Branding

Positioning StrategyStatement

Technology and TotalProduct Roadmap

Partnerships

Total Product Assets

(Functional) Programs

Business Model

Market Entry Customer Segment Critical Need and

Total Product Requirements

Company Total Product Solution’s Potential

Differentiators

Competitors’ Total Product Solutions’ Potential

Differentiators

CompanyDifferentiator

Barriers to Adoption

Market Drivers

Customer/End-User Problem(s)

Definition

Mission Statement

Applications

TechnologyEnablers Customer Segments

Critical Needs

Company Product/Service Match

Market Entry Customer Segment Roadmap and Market Segment

Leadership Roadmap

Market Segment

Product/Market Category

Market VisionMarket/Customer

Segmentation Competitive Differentiation Strategy Evidence

POSITIONINGSTRATEGY

BRANDINGSTRATEGY


When Does Positioning Strategy Convert to a Brand?

When the positioning strategy evidence comes into contact with the customer

And, the customer agrees with it,

Time and time again


Branding Elements Values/Attributes Personality Voice Brand architecture Image/Identity system

Strategy Evidence

Positioning Elements Market vision Market and customer segment(s)

problem(s) Market entry customer segment Market entry customer segment critical

need Benefit/Competitive differentiator (which

addresses critical need compellingly)

Analytical appeal Logical expression Market understanding

Emotional appeal Creative expressions Brand equity

MarketLeadership

Positioning and Branding: A Comparison


Branding Technology-Based Start Ups

Company and Product Positioning Strategy-Segmentation-Differentiation, Value Proposition

Com

pany

Cul

ture

Corporate Identity System-Logo-Presentation template-Website, collateral design-Business cards-Etc.

Brand Values/AttributesPersonality

Brand/Naming Architecture-Company-Technology-Platform-Product/Service


Building Brand Equity

BRAND EQUITY

INTEGRATED MARKETING,

SALES PROGRAMS

QUALITYPRODUCT/SERVICE

EXPERIENCE

MANAGEMENT TEAM CREDIBILITY

ALIGNED EMPLOYEE BASE

LONG-TERM PERSPECTIVE

VALIDATED POSITIONING

STRATEGY

SUPPORTING CORPORATE CULTURE

#1


Why Brand Building in Technology is So Difficult

Costs too much ($ $, time, etc.) Not quantifiable until after it’s done Logic is king, brand is ‘emotional’ “Accidental successes” = not really necessary Too much technology or market change = why

bother? Caught up in technology aspects Level of marketing understanding Inability to reach consensus


Objectives of a Brand Strategy

Distinguish company from ‘the pack’ Agree upon branding execution (creative expression)

Management team/Employees Company and product names Corporate identity program Tag lines/Slogans Packaging Buying and using experience Distribution channels

Lay foundation for brand equity


Company Brand Established

Product Brand Established

Broad Market Awareness and Acceptance of Product

Product Position Established in Customer Segment

Differentiation Established

Technology Product Company

Time&

Experience

Market Segment Ownership

Customer SegmentExpansion

Market Entry Customer Segment Experience

Market Entry CustomerSegment Dialog

Synergy Providedby Brand Equity

Product Position as Foundation for Corporate Brand


Positioning and Branding Truths

A well-executed positioning strategy is the foundation for a strong brand, which is the foundation for market leadership

Your company has a defacto position and a brand, whether you intend to or not you like it or not you manage it or not

For a positioning and branding strategy to become ‘real’, market participants must agree with your company’s claimed position and brand see and experience evidence of positioning and branding claims

If your company’s position isn’t clear, the brand won’t be either

Even positioning and branding strategies cannot overcome a poor product, or poor execution

Investments in building a corporate brand or “silver bullet” product brand must be prioritized; very expensive and difficult to do both simultaneously


Investors

SalesChannels

TargetAccounts

Partners

Industry &FinancialAnalysts

Trade & Business

Press

EXISTING• ________• ________• ________• ________• ________

NEEDED• ________• ________• ________• ________• ________

Strategy Evidence

PositioningStrategy

Statement

PositioningStrategy

CompanyBusinessStrategy

MarketEntry

CustomerSegment

Mes

sage

s, B

rand

Str

ateg

y an

d Pr

ogra

ms

Strategy Market Leverage

Company

Building Brand Equity


Branding Strategy Evaluation

Do all employees identify, and identify with, Company brand values?

Do customers and market participants identify, and identify with, Company brand values?

Do customers and market participants see a logical link between Company positioning strategy and brand strategy?

Has the brand carried multiple products/services to market, successfully, over time?


Brand Equity Assessment

Price premium? Customer preference? Replacement value? Stock price? Earning power over time?


Summary

Branding effort must be proactively managed from the beginning of a company (or product), both internally and externally

The questions are:

- what level of effort required for your market environment

- what level of resources is to be involved?

- In what timeframes?

It requires a long term view and commitmentand

branding begins with the executive team


Presenters

Rosemary Remacle, Consultant

Market Focus

408-244-0412

[email protected]

the role of branding in technology based companies

Documents

brand worth building

company brand values

brand strategy

market participants

2005 rosemary remacle

customer segment

brand equity

branding