Marketing Chapter 14: Branding

Brand

A brand represents everything that a good, service, or idea means to them.

Brand loyalty

Brand loyalty contributes to a firm's long-term success and profitability.

Brand recognition

Consumers often grow attached to certain brand logos and symbols.

Brand marks

Firms like Nike and McDonald's employ brand marks—the swoosh or golden arches.

Brand image

Brand image signifies what the brand presently stands for in the minds of others.

Components of a Successful Brand

Deliver a product that provides value, create a consistent brand image, create consistent brand messaging, capture feedback.

Brand equity

Brand equity increases likelihood of consumers purchasing the firm's brand over a competing brand.

Dimensions of Brand Equity

Brand equity is based on four dimensions: differentiation, relevance, esteem, and knowledge.

Benefits of Brand Equity

Increases firm's ability to succeed in a difficult competitive environment, facilitates a brand's expansion into new markets, contributes to positive perceptions of product quality.

Measuring Brand Equity

Qualitative methods include free association and projective techniques; quantitative methods include brand recognition, brand recall, and customer lifetime value (CLV).

Brand Extension

Profit from recognition and acceptance a brand already has within a different product category.

Brand Revitalization

Rebranding to rebuild trust with customers, exemplified by BP after the Deepwater Horizon oil spill and Toyota's 'Moving Forward' campaign after recall.

Co-Branding

Leverage the equity of another firm's brand to increase one's own brand equity.

Private-Label Brands

Lower-cost alternatives to manufacturer brands.

Cannibalization

Avoiding the loss of sales of a product due to the introduction of a new product by the same company.

Customer Lifetime Value (CLV)

A metric that estimates the total revenue a business can expect from a single customer account.

Packaging

Promoting brand image and reinforcing brand image; it is a growing marketing tool that firms can directly control.

Green motivated consumers

A growing demographic that prefers environmentally friendly products.

Customer Engagement through Social Media

Consumers seeking discounts, posts that showcase new products and services, posts that teach something, and branding through customer service.

Social Media Branding Goals

Allows firm to develop deeper relationships with customers and generates positive word-of-mouth communication across social networks.

Monitoring a Social Brand

Recognize potential threats to brand equity quickly and develop solutions.

Common tools for Monitoring a Social Brand

Google alerts, Social mention, UTM parameters, Hootsuite Impact.

Social Mention

A tool that monitors multiple social media sites and measures social media activity that affects a product, brand, or industry.

Importance of global brands

Enhanced marketing value of U.S. brands; all U.S. companies benefit from U.S. tech companies.

Desire for American-sounding brand names

Middle-class consumers in developing countries such as China, India, Brazil, and Russia desire American-sounding brand names.

Top 10 Most Valuable Global Brands

1. Apple, 2. Amazon, 3. Microsoft, 4. Google, 5. Samsung, 6. Coca-Cola, 7. Toyota, 8. Mercedes-Benz, 9. McDonald's, 10. Disney.

Adapting Brands to the Global Market

Finding balance between being global and being local; many companies adopting a more unified branding approach.

Nonprofits

Organizations with complex missions that are hard to achieve, difficult to measure directly, and require a number of partners.

Branding for Nonprofit Organizations

Must be unique, aesthetically pleasing, easy to remember, and reflective of organization's work.

Nonprofit Brand Equity

Use the value stakeholders associate with the organization to raise funds and support its needs.

Measuring Nonprofit Brand Equity

Often do not have resources to enhance brand image through expensive ad campaigns or sponsorships; social media offers a low-cost alternative.

Most Valuable Nonprofit Brand in Youth interest

Reading Is Fundamental (RIF).

Most Valuable Nonprofit Brand in Animal welfare

Best Friends Animal Society.

Most Valuable Nonprofit Brand in Health

St. Jude Children's Research Hospital.

Most Valuable Nonprofit Brand in Social service

Ronald McDonald House Charities.

Most Valuable Nonprofit Brand in Disability

Autism Society of America.

Most Valuable Nonprofit Brand in International aid

Food for the Poor.

Most Valuable Nonprofit Brand in Environmental

National Wildlife Federation.