MKT 345 Quiz 1

Branding is a...

- strategic point of view, not just a set of activities

- central to creating customer value (shortcut to form habits, build trust in a brand, creates an identity for the customer, emotional response)

Brand Cultures

products not merely as products but as "meanings"

- creating a brand doesn't just happen because there is no history, consumers haven't yet experienced it

What creates brand culture

The shared experiences, associations, and emotions consumers have with brands

Where does brand exist?

In the consumers' head

Who develops the brand?

The firm (4 Ps), Popular Culture (film, internet, TV), Customers, and Influencers

- they all tell a brand story that builds brand culture

Brand Value Proposition functional benefit

shows differences in product features; relatively easier for competition to replicate

Brand value proposition emotional benefit

benefit felt in the heart and mind of consumer; once it has est. an emotional bond with the consumer, it's relatively harder to replicate

Brand value proposition self-expressive benefit

What helps a consumer express his/her self-image; does not apply to all brands

Brand Value Proposition

the set of benefits or values a brand promises to deliver to consumers to satisfy their needs; good positioning includes all/most of: functional benefit, emotional benefit, and self-expressive benefit

7 Advantages of a strong brand

1. Influence choice - brand can become a "heuristic" or short-cut

2. can create loyalty

3. ability to charge price premium

4. creates differentiation - especially when products are similar

5. platform for growth - extensions/new markets

6. easy launch of new products

7. power in relationships with partners (ex. distribution partners)

Right Space

the core emotions a brand wants every customer to feel across every single touch point with which they engage

Behavioral vs Attitudinal brand loyalty

Behavioral - just happens out of convenience or price; becomes a habit of purchase. Not that beneficial to the company because it's not really loyalty

Attitudinal - conscious choice; more valuable because the customer will always choose it

- the role of emotional connection

Positioning

the act of designing a company's offering and image to occupy a distinctive place in the minds of the target market

Brand Positioning Statement (BPS)

- the heartbeat of effective communications plans

- defines a company's direction and answers seven essential questions

7 essential questions answered by a brand's positioning statement

1. who are you

2. what business are you in

3. for whom

4. what is needed by the market you serve

5. against whom do you compete

6. what's different about your business

7. what unique benefit is derived from your product or services

Competitive set

Product type, product category, and product class; indicates what your brand can substitute or replace and why you're better

Positioning Statement vs. Tagline

Positioning statement - part of the strategy and communicates to those inside the company while a tagline addresses consumers

Tagline - summarizes the positioning statement into something a consumer will remember

Positioning maps

show consumer perceptions of their brands versus competing products on important buying dimensions

How is positioning achieved

- companies use either the consumer or the competition to inform consumers of the positioning

- consumer: show the benefit the consumer will derive

- competition: compare with the competition

Repositioning

changing earlier positioning in the consumers' minds due to market realities

BPS - Targeted Users

- First blank of the BPS

- there may be a difference between who purchases the brand and who consumes it; you must be desirable to both

- three parts to defining the target user: 1) demo-psychographics and attitudes, 2) usage habits, and 3) needs

BPS - brand name

- second blank of BPS

- name of the brand

BPS - competitive framework

- third blank of BPS

- addresses "Who else competes in this space"

- answers "What does your brand substitute or replace?"

- consistent with the brand's core benefit

- can be straightforward (ex: Tide = "Laundry Detergent") or more complex (ex: Gatorade = "performance thirst quencher/body replenisher"). This is because, depending on the product, the consumer may be considering multiple brands with multiple kinds of benefits

BPS - Point of Differentiation Benefit (POD)

- fourth blank of BPS

- offers the product attributes that marketers want consumers to strongly associate with their brand

- one or many benefits, functional or emotional, tangible or intangible, or any variation

- establishes a meaningful difference with competitors

- POD should be consistent with the product's physical attributes and be what consumers find most desirable about the brand

BPS - reason why

- fifth blank of BPS

- the support, or reason, for the POD claim

- adds credibility

- formula, ingredient, design, location, endorsement, source, etc

BPS - brand character

- sixth blank of BPS

- develops the emotional parts of a brand and strengthens the personal meaning of the product to consumers

- asks WHO your brand or product is

Points of Parity (POP)

Parity = similarity

"right to play"

"features" that your brand must provide at an adequate level in order to belong to a competitve set

Two types of POPs = Category and Competitive

Category POPs

gives you membership to a category (ex: all Miami students have one thing in common: they go to Miami University)

- something that everyone shares

- associations that consumers view as being necessary to provide a legitimate offer in a particular competitive set of a category

Competitive POPs

tend to be between individual dyads of brands

- associations not necessary to category membership

- intended to mitigate competitors' points of difference (ex: Miller vs Bud Light are both light, low-cal beers)

- Key: "break even" or get reasonably close to your competitors' POD

Point of Difference (POD)

Should be: (1) strong, (2) favorable, (3) relevant

- "Right to win"

- key associations that set the brand apart from others in the competitive set

4 Ways to extend a brand

1. line extension - existing brand and product, just slight modifications (like adding flavors)

2. brand extension - existing brand in a new product category (ex. Snickers Ice Cream)

3. Multibrands - new brand name in an existing category (ex. PNGs many many brands)

4. New brands - new brand name in a new product category (ex. Toyota -> Lexus / economy car -> luxury car); different segments under a new name to target a new segment

Co brand

ex: doritos locos tacos at Taco Bell (NOT a merger or acquisition)