Brand Management Final

Brand Elements (5)

Components that identifies and differentiates brands. This includes name, logo, symbol, characters, slogan, jingles, packaging design, color scheme, etc.)

Brand v.s. Product

Brand has dimensions that differentiate it some way from other products designed to satisfy the same need.

Product is a good or service for use or consumption, designed to satisfy a need in the market.

Functions provided by brands to consumers and firms

Consumers:

1. Identify source of products

2. Simplify product decisions

3. Lower the search costs for products externally and internally

4. Signal of quality

5. Helps set expectations about what consumers may not know about the brand.

Firms:

1. Simplify in handling and tracing

2. Simplify inventory and accounting process

3. Provide legal protection for unique brand features

4. Simplify expectation of demand and creates an entry barrier for upcoming brands

5. Creates competitive advantage

Challenges to Brand Builders (5)

1. Maturing markets

2. Growth of private labels

3. Difficulty in differentiating

4. Savvy markets

5. Increasing competition

Brand Equity

A value premium that a company generates from a product with a recognizable name compared to a generic equivalent. It reflects the added value that brand awareness and loyalty provide to a product. w

Factors affecting brand equity (6)

1. Brand Image

2. Brand Awareness

3. Brand Association

4. Consumer Perception

5. Brand Identity

6. Brand Loyalty

What is a brand? What is the function of a brand?

A name, form, sign, symbol, design or a combination of them.

It is intended to:

1. Identify the goods and services of one seller or a group of sellers

2. Differentiate from competitors

3. Create a certain amount of reputation, awareness, prominence in the market.

What is Consumer-Based Brand Equity (CBBE)?

Approaches brand equity from the perspective of the consumer, emphasizes that the power of a brand lies i the minds and hearts of consumers.

Marketing advantages of strong brands (11)

1. Improved perception of quality

2. Improved loyalty

3. Less vulnerability to competitive marketing activities

4. Less vulnerability to marketing crises

5. Larger margin

6. More inelastic to price increase

7. More elastic to price decrease

8. Greater trade cooperation and support

9. Increased marketing communication effectiveness

10. Licensing opportunities

11. Additional brand extension opportunities

Brand Value Chain

1. Marketing Program Investment (Product, communications, trade, employee, etc.)

   
   Program Multiplier (distinctiveness, relevance, integrated, value excellence)
   

2. Customer Mindset (Awareness, associations, attitudes, attachment, activity)
   
   Customer Multiplier (competitive reactions, channel support, customer size and profile)
   

3. Market Performance (price premiums, price elasticity, market share, expansion success, cost structure, profitability)
   
   Market Multiplier (market dynamics, growth potential, risk profile, brand contribution
   

4. Shareholder Value (Stock price, P/E ratio, market captialization

Identify and explain Keller’s CBBE Model

1. Salience (Identity: Who are you, deep broad brand awareness)

2. Performance & Imagery (Meaning: What are you, points of parity and difference

3. Judgement & Feelings (Response: What about you, positive, accessible reactions)

4. Resonance (Relationships: What about you and me, intense active loyalty)

Brand Salience

Measures various aspects of the awareness of a brand:

1. To what extent is the brand top-of-mind and easily recalled or recognized.

2. Brand salience is a measure of how likely a consumer is to think of a brand when they are making a purchase.

First step in brand building:

Ensure identification of the brand with customers and an association of the brand in customers minds with a specific product class, product benefit or customer need.

Brand Performance

Describes how well the brand:

1. Meets consumers functional needs

2. Meets quality assessments

3. Product reliability, durability, service effectiveness

4. Efficiency and empathy

5. Style and design

6. Price

Brand Imagery

1. User profile/Imagery

2. Purchase and usage situations

3. Brand personality and values

4. Brand history, heritage and experiences

Brand Judgements

1. Quality

2. Credibility

3. Consideration

4. Superiority

Brand Feelings

Customers emotional responses and reactions to the brand

Brand Resonance

1. Behavioral loyalty

2. Attitudinal attachment

3. Sense of community

4. Active engagement

Criteria for choosing brand elements (6)

1. Memorable

2. Meaningful

3. Likable

4. Transferable

5. Adaptable

6. Protectable

M.M.L.T.A.P

Slogans

Short phrases that communicate descriptive of persuasive information about a brand.

Function as useful hooks or handles to help consumers grasp the meaning of a brand.

Jingles

Musical messages written around the brand

Have catchy hooks and choruses that become permanently registered in the minds of listeners

Enhances brand awareness by repeating the brand name in clever and amusing ways

New perspectives and developments in marketing, and factors that affect it

Approaches:

1. Rapid technological advancements

2. Greater customer empowerment

3. Fragmentation of traditional media

4. Growth of interactive and mobile marketing options

Factors:

1. Channel transformation and disruption

2. Increased competition

3. Globalization

4. Heightened environmental, community and social concerns

5. Severe economic recession (e.g. pandemics)

Co-branding

Two brands work together to create a new product with both brand names attached to it.

Co-marketing

Strategy where two brands work together on a one-off marketing campaign or promotion.

Marketing Communication, and how it contributes to brand equity (4)

Means by which firms attempt to inform, persuade and remind consumers about the brands they sell

Can contribute to brand equity by:

1. Creating awareness

2. Linking points of parity and difference in customers’ memory

3. Eliciting positive brand judgements

4. Facilitating stronger brand-consumer connection (brand resonance)

List the informational processing model of communications (6)

1. Exposure - seeing/hearing communication

2. Attention - noticing communication

3. Comprehension - understanding intended message

4. Yielding - responding favorably to message

5. Intentions - planning to act in the desired manner of communication

6. Behavior - actually acting in the desired manner

Role of having multiple marketing communication methods (2)

1. Optimal utilization of monetary and other resources

2. Different communication options also may target different market segments

3 steps of testing marketing communication effectiveness

1. What is your current brand knowledge? Have you created a detailed mental map?

2. What is your desired brand knowledge? Have you defined optimal points of parity and difference and a brand mantra?

3. How does the communication option help the brand get from current to desired knowledge with consumers?

4 marketing communication options

1. Advertising and promotion

2. Interactive marketing

3. Events and experiences

4. Mobile marketing

List 7 different channels of communication in the marketing communications mix

1. Advertising

2. Personal Selling

3. Interactive Marketing

4. Direct Marketing

5. PR and Publicity

6. Sales Promotion

7. Events and Experiences

What is ‘points of parity’ and ‘points of difference’?

Points of Parity (PoP): Features a brand must have to compete in its category, like basic expectations (e.g., all smartphones need a good camera).

Points of Difference (PoD): Unique features or benefits that set a brand apart from competitors (e.g., Nike's focus on empowering athletes with Just Do It).

Advantages and disadvantages of sales promotion (9)

Advantages:

1. Sense of urgency

2. Allows manufacturers to lower prices for price-sensitive consumers

3. Encourage trade to maintain full-stocks to support merchandising efforts

4. Builds brand equity from the actual product experience

Disadvantages:

1. Subsidize buyers who would’ve bought the product anyway

2. Decrease in brand loyalty

3. Decrease in quality perception

4. Highlights importance of price as a factor when choosing a product

5. Inhibit franchises

Types of advertising media (5)

1. Television

2. Radio

3. Print

4. Direct Response

5. Place

8 ways to leverage secondary brand associations

1. Companies (through branding strategies)

2. Countries (identify product origin)

3. Channels of distribution (image transfer from e.g. retailers, like Watsons)

4. Other brands (co-branding)

5. Characters (licensing)

6. Spokespersons (endorsements)

7. Events (sponsorships)

8. Other third party (awards or reviews)

C.C.C.O.C.S.E.O

Brand Audit

A comprehensive examination of a brand to discover its sources of brand equity.

Marketing Audit

Independent examination of a company’s marketing environment, objectives, strategies and activities.

Why is brand audit important? (4)

1. Assess strengths and weaknesses

2. Align brand and product to expectations

3. Meet target demographic

4. Learn about current brand position and how to improve

Brand Inventory and examples (7)

Purpose of brand inventory

A comprehensive and systematic catalog of all branding assets, marketing efforts and touchpoints used by a brand.

This includes:

1. Brand elements

2. Marketing materials

3. Product packaging and design

4. Digital presence

5. Sponsorships/partnerships

6. Distribution channels

7. Pricing strategies

Purpose: Overview of how a brand is currently presented in the marketplace. The aim is to have a consistent, coherent and recognizable brand across all platforms and channels

Difference between brand equity and brand value

What does it focus on:
Brand Equity: Perceptions, intangible brand assets
Brand Value: Financial resources

How do you assess it:
Brand Equity: Brand awareness, perceived quality, brand associations, customer lifetime value
Brand Value: Financial valuation methods (market research)

What is it used for:
Brand Equity: To determine the value that the brand’s name, logo, etc. brings to a product or service
Brand Value: Financial reporting

Explain John Robert’s Brand Positioning Model

Qualitative and quantitative research techniques

1. Free Associations

2. Projective Techniques

3. Zaltman Metaphor Elicitation Technique (ZMET)

4. Neural Research Method

List and explain (examples, advantages and disadvantages) of the 2 direct comparative methods of measuring brand equity based on a brand's market performance.

Brand-based comparative approaches: Focuses on the brand itself while keeping the product constant.

Example: Testing consumer reactions to identical products with different brand names (e.g., Coca-Cola vs. Pepsi).

Advantages:

• Isolates the brand's value.

• Useful for assessing new marketing changes.

• Realistic evaluation.

Disadvantages:

• May distort product characteristics.

Marketing-based comparative approaches:
Focuses on the marketing mix while keeping the brand constant.

Example: Testing how different pricing or advertising strategies affect perceptions of the same brand.

Advantages:

• Ease of implementation

Disadvantages:

• Hard to separate brand knowledge from product knowledge.

Conjoint Analysis (definition, advantages and disadvantages)

Survey-based multivariate technique that enables marketers to profile the consumer decision process with respect to products and brands.

It works by breaking down a product or service down into its components (attributes) and testing different combinations to identify the ones are more and less preferred.

Advantage:

• Study different brands and different aspects of the product or marketing program simultaneously

Disadvantages:

• Marketing profiles may violate consumers’ expectations based on what they already know about brands.

• Difficult to specify and interpret brand attribute levels

List and explain the 2 approaches of holistic methods

to measure brand equity

Holistic methods evaluate a brand's overall value by considering all aspects of its performance, including consumer perceptions, market position, and financial contributions.

Residual Approach: Calculates brand value as the difference between the financial performance of a branded product and an equivalent non-branded product.

Valuation Approach

A broader framework encompassing various methods used to assign a monetary value to a brand.

List 4 applications of brand valuation.

1. Mergers and acquisitions

2. Brand licensing

3. Fund raising

4. Brand portfolio decisions

Brand architecture

The strategic framework that determines how a company’s brands are organized.

Explain the following brand architecture types:

1. House of brands

2. Branded house

3. Sub-brands

4. Endorsed brands

Steps in developing a brand architecture strategy

Step 1: Define brand potential

Brand vision, boundaries and characteristics

Step 2: Identifying brand extension opportunities

Brand extension is a new product introduced under an existing brand name

• Line extensions: Same category but variations in features like flavor, size, color, or form. Example: Coca-Cola, Coke Zero, Diet Coke

• Category extensions: New product category
  Example: Apple - phones, watches, airpods

Step 3: Branding New Products and Services

What is the purpose of points of parity and points of difference in brand extension?

POP: Ensures that the brand extension meets the basic requirements or expectations of the new category.

Example: Coke Zero ensured the ‘zero sugar’ feature aligned with the diet soda category.

POD: Creates a unique competitive advantage and distinguishes the brand extension from competitors.

Example: Apple iPhones have a robust app ecosystem, setting it apart from other smartphones.

Why might a firm have multiple brands in the same product category?

Market coverage

List 9 possible special roles of brands in the brand portfolio.

What are the 5 levels of brand hierarchy?

Corporate Brand

Definition: The highest level, representing the entire organization.

Example: Procter & Gamble (P&G).

Family Brand

Definition: A brand name used across a range of related products.

Example: Nivea for skincare products (lotions, creams, deodorants).

Individual Brand

Definition: A unique brand name for each product line to target specific markets.

Example: Tide (a P&G brand).

Modifier

Definition: Describes a product variation under an individual brand.

Example: Tide Pods or Tide Liquid Detergent.

Product Descriptor

Definition: Clarifies the product's function or purpose.

Example: Tide Pods Laundry Detergent.

Brand revitalization: what are the 2 brand reinforcement strategies?

1. Expanding brand strategies
   - Identifying additional or new usage opportunities
   - Identifying new and completely different ways to use the brand
   

2. Improving brand image
   - Identifying target market
   - Repositioning the brand
   - Changing brand elements
   

3. Adjustments to brand portfolio
   - Migration strategies
   - Acquiring new customers
   - Retiring brands

List 10 brand revitalization strategies

What is the depth and breadth of brand awareness?

Depth of brand awareness: Determined by the ease of brand recognition and recall
Breadth of brand awareness: Determined by the number of purchase and consumption situations for which the brand comes to mind.

What makes a strong brand?

• Understand brand meaning and market appropriate products and services in an appropriate manner

• Properly position the brand

• Provide superior delivery of desired benefits

• Employ a full range of complementary brand elements, supporting marketing activities, and secondary associations

• Embrace integrated marketing communications and communicate with a consistent voice

• Measure consumer perceptions of value and develop a pricing strategy accordingly

• Establish credibility and appropriate brand personality and imagery

• Maintain innovation and relevance for the brand

• Strategically design and implement a brand architecture strategy

• Implement a brand equity management system

Brand awareness

Related to the strength of the brand node or trace in memory, as reflected by consumers’ ability to recall or recognize the brand under different conditions.

Brand image

Consumer perceptions of and preferences for a brand, measured by the various types of brand associations held in memory.

Difference between marketing and branding

Marketing is the process of promoting and selling products or services through strategies like advertising and social media, focusing on short-term goals to generate demand and awareness.

Branding, on the other hand, is about creating a unique identity, including logos, values, and messaging, to build long-term trust and loyalty with customers. While marketing attracts customers, branding ensures they stay loyal by defining who the business is and why it matters.