Brand Strategy

Week 7

Brand

Represents consumers’ perceptions and feelings about a product; exists in the minds of consumers

Brand Equity

The differential effect that knowing a brand name has on customer response

Brand Equity Dimensions

Differentiation, Relevance, Knowledge, Esteem

Differentiation

What makes a brand stand out from competitors

Relevance

How well a brand meets consumer needs

Knowledge

How familiar consumers are with the brand

Esteem

How much respect consumers have for the brand

Brand Strategy Decisions

Four key decisions: positioning, brand name selection, sponsorship, development

Brand Positioning

Designing a brand’s image so it occupies a distinct place in consumers’ minds

Product Attribute Positioning

Focuses on product features and characteristics

Benefit Positioning

Focuses on what the product does for the consumer

Beliefs and Values Positioning

Focuses on emotional connection and deeper meaning

Benefit Positioning Example

Dove promotes softer skin rather than just cleansing properties

Brand Name Selection

Process of choosing a strong, effective brand name

Good Brand Name Characteristics

Suggests benefits, easy to pronounce, distinctive, extendable, translatable, legally protectable

Brand Sponsorship

Decision about who owns and markets the brand

National Brand

A brand owned and marketed by the manufacturer

Store Brand

A brand owned by a retailer or wholesaler

Licensing

A company uses another company’s brand for a fee

Co-branding

Two brands combined on one product

Brand Development

Strategies for growing a brand

Line Extension

Extending a brand within the same category (new sizes, flavours, etc.)

Brand Extension

Extending a brand into a new product category

Brand Extension Example

An apparel brand launching into a new product category

Multi-brand

Using multiple brands in the same product category

New Brands

Creating a completely new brand name

New Products

Products developed through a company’s own R&D efforts

Types of New Products

Original products, product improvements, product modifications, new brands

Ways to Obtain New Products

Acquisition or new product development

Reasons for Product Failure

Overestimates of market size, poor design, incorrect positioning, poor timing, weak marketing, competitor reactions

Customer-Centred NPD

Focuses on understanding customer needs and creating value

New Product Development (NPD) Process

A 9-stage process from idea to market launch

Idea Generation

Systematic search for new product ideas

Idea Sources

Internal (R&D, employees) and external (customers, competitors, crowdsourcing)

Idea Screening

Identifying good ideas and discarding poor ones early

Product Idea

An idea for a possible product the company can offer

Product Concept

A detailed version of the idea in meaningful consumer terms

Product Image

How consumers perceive a product

Concept Testing

Testing product concepts with target consumers

Marketing Strategy Development

Designing initial marketing strategy including target market and goals

Business Analysis

Reviewing sales, costs, and profit projections

Product Development

Turning concept into a physical product

Test Marketing

Introducing product and marketing into a realistic market setting

Commercialisation

Full-scale launch of the product into the market

Product Life Cycle (PLC)

The course of a product’s sales and profits over its lifetime

PLC Applications

Applies to product class, product form, or brand

Product Development Stage

No sales and high investment costs

Introduction Stage

Slow sales and no profits due to high costs

Growth Stage

Rapid market acceptance and increasing profits

Maturity Stage

Slowdown in sales growth as market becomes saturated

Decline Stage

Sales and profits fall or stabilise at a low level

PLC Key Insight

Each stage requires different marketing strategies