ADM 2315 - CHAP 10

WHAT IS BRANDING

• to create, for consumers, the company, and its collaborators, value that goes beyond the value created by the product and service aspects of the offering

• The process of endowing products and services with the power of a brand

• creating differences between products. Marketers use brand names and other brand elements to inform consumers “who” and “what” the product is—and why consumers should care.

• creates mental structures that help consumers organize their knowledge about

  products and services in a way that clarifies their decision making and, in the process, provides value to

  the firm.

• For branding strategies to be successful and create brand value, consumers must be convinced that

  there are meaningful differences among brands in the product or service category.

• Brand differences are often related to attributes or benefits of the product itself.

THE ROLES OF BRANDING (CONSUMERS AND ORGANIZATION)

Brands’ role for consumers

– Set and fulfill expectations

– Reduce risk

– Simplify decision making

– Take on personal meaning

– Become part of identity

Brands’ role for firms

– Simplify product

handling

– Organize inventory and

accounting

– Offer legal protection

– Create brand loyalty

– Create barriers to entry

for competition

– Secure competitive

advantage

BRAND EQUITY

– The monetary value of a brand

– reflects the premium that is placed on a company’s valuation

because of its ownership of the brand. Brand equity

encompasses the net present value of the total financial returns

that the brand will generate over its lifetime.

Goodwill (accounting term)

– The monetary value of all intangible assets of a

company

BRAND POWER

– The ancillary value contributed by the brand to a

product or a service

– reflects the degree to which the brand influences the

way consumers think, feel, and act with respect to the

brand.

– Brand power arises from differences in consumer response that a brand evokes. If no differences occur, the brand-name product is essentially a commodity, and competition will probably be based on price.

– Furthermore, differences in response are a result of consumers’ brand knowledge, as well as of all the thoughts, feelings, images, experiences, and beliefs associated with the brand.

MEASURING BRAND POWER

• Brand audit

– Focused series of procedures to assess the health of

the brand, uncover its sources of brand equity, and

suggest ways to improve and leverage its equity

• Brand tracking

– Brand audit is used as input to collect quantitative

data from consumers over time, providing consistent,

baseline information ( sales information)

DESIGNING THE BRAND

• Brand mantra defined by the company

– A three- to five-word articulation of the heart and soul of the brand

– 3 key criteria for a brand mantra

▪ Communicate brand’s uniqueness

▪ Simplify brand essence-short, crisp and vivid

▪ Inspire, personally meaningful to employees

• Choosing brand elements:

– Memorable

– Meaningful

– Likable-aesthetically appealing

– Transferable-used on new products? Allow for

growth?

– Adaptable-can logos be updated?

KFC/Shell/Starbucks

– Protectable-danger of becoming synonomous

(kleenex)

• Brand characters

– A special type of brand symbol—one with human

characteristics that both enhance likability and tag the

brand as interesting and fun

BRAND CHARATERS

– A special type of brand symbol—one with human

characteristics that both enhance likability and tag the

brand as interesting and fun

BRAND PERSONALITY

– The specific mix of human traits that we can attribute

to a particular brand

– MEC implies outdoorsy

– Levis implies youthfulness

– LLBean implies reliability

BRAND HIERARCHY

Reflects the way in which a company’s brands are

related to a company’s products and services, as well

as to one another

BRAND PORTFOLIO

– The set of all brands and brand lines a particular firm

offers for sale in a particular category or market

segment

CO BRANDING

AKA DUAL BRANDING

• 2 OR MORE BRANDS MARKETED TOGETHER

  • SAME COMPANY CO BRANDING

  • JOINT VENTURE CO BRANDING

  • INGREDIENT CO BRANDING

MANAGING BRAND CRISIS

In general, the stronger the brand and corporate image—especially for credibility and trustworthiness—the more likely the firm can weather the storm. Careful preparation and a well managed crisis management program are also critical, however.

• • Empathy: Get even closer to consumers and customers. What are they thinking and feeling now, and what are they doing differently? Are these changes temporary or permanent?

• • Value: Put forth the most compelling value proposition. Recognize the totality of value, and communicate all possible economic, functional, and psychological benefits and all possible savings in time, money, energy, and psychological wear-and-tear.

• • Strategy: Be authentic and true to the brand promise. Find ways to develop programs that address short-term needs in a brand-faithful manner.

• • Innovation: Engage in “Stop, Start, and Continue (But Improve)” exercises and activities. Take advantage of the opportunity to “clean house” to prune and focus brand and product offerings. Rethink budgets, go-to-market plans, and consumer targets.