Mod 3: power of branding

The role of brands

• identify the maker

• offers legal protection

• create barriers to entry

• secure a price premium

Brand mantra

• captures the brand essence and promise

• Elevator pitch in 3-5 Words

• Differentiates and inspires

Nike mantra

Authentic athletic performance

Nike tagline

“Just do it”

The tagline is an external manifestation of its mantra

Brand mantra - Internal

Tagline - External

Brand equity

The differential effect that Brandon knowledge has on consumer response to the marketing of that brand

Brand equity elements

1. Based on differences in customer response

2. Different level levels of brand knowledge - some brands have a greater amount of associations which makes it more likely to influence your behavior

3. Positive experiences, Preferences and behavior

Enterbrands brand equity formula

• Financial

• Role of the brand

• Brand strength

Role of the brand

The portion of the decision to purchase that is attributable to the brand relative to other factors

Brand strength

Diagnostic tool for measuring brand performance relative to other competitors

Strong brands attributes

• excels at delivering desired benefits

• Stay relevant

• Priced to meet perceptions of value

• Understand understands consumer brand relationship

• The brand is consistent

Brand Experience

Consumer experiences with any brand touch point either reinforce or break their perceptions of the brand

Touch point

Any interaction (Including encounters where there is no physical interaction) That might alter the way that your customer feels about your brand and your business.

Customer touch points

1. Could be unplanned and outside of the firms control

2. Does not need to be physical interaction

Your brand is a story unfolding across all customer touch points - Jonah

Extensions

One attribute of a strong brand is that it can allow you to leverage the brand equity to develop brand or line extensions.

Brand and line extensions are sometimes used interchangeably

They are different

Brand extension

Launching a product in a different category using the same brand name

Line extension

Launching a product in the same category using the same brand name

Advantages of extension

• can leverage brand awareness of parent brand

• Improved chances of success of product launch

Disadvantages of extension

• risk of brand dilution

• Cannibalization

• Preemptive cannibalization

Brand extension: Association transfer

Brand extensions are more likely to be successful if the associations from the parent brand transfer to the extension.

FLO Framework

Fit

Leverage

Opportunity

When you launch a brand extension

You are transferring some of the associations with the parent brand to the new product

Fit

How easily do associations transfer From the parent brand to the extension

Leverage

After these associations are transferred, do they provide a competitive advantage in that category?

Opportunity

Opportunity exists when there is a market for a possible extension