Study Notes for MKTG 3225 Brand Management - Strategic Brand Management - Week 4b

MKTG 3225: Brand Management, Week 4b, Chapter 5 - Strategic Brand Management

Objectives

• Understand Key Concepts:

  • Brand, branding, and brand management.

  • Brand strength, its dimensions, and how it is measured.

  • The impact of long-term brand strategy on annual marketing and communication activities.

  • Relationship between continuous improvement and brand management.

Marketing and Branding as Tools

• Purpose of Marketing:

  • To attract support for the organization.

  • Desired outcomes include attracting new customers, retaining existing customers, enhancing customer loyalty, and promoting positive word-of-mouth about the business.

• Role of Branding and Brand Management:

  • Tools to achieve marketing outcomes that lead to organizational support.

Brand Strategy

• Central Objective:

  • Increase brand strength.

• Goals for Brand Organizations:

  • Strive to be the strongest brand in their peer class and maintain that status.

Benefits of Being a Strong Brand

• Attraction of New Customers:

  • More effective in attracting clients.

• Customer Retention:

  • Increased capability to retain existing customers.

• Loyalty to Brand:

  • Customers less likely to shift to competitors.

• Promotion Through Word-of-Mouth:

  • Enhanced likelihood of customers sharing their experiences.

• Price Sensitivity:

  • Customers less sensitive to price changes.

• Purpose of a Brand Strategy:

  • To strengthen the brand consistently.

Conceptualizing Brand Strength

• Definition of a Brand:

  • A brand embodies how a target audience perceives or comprehends a branded object (e.g., a small business).

  • It reflects the target audience's comprehension based on their experiences with the organization.

• Characteristics of Local Business Brands:

  • Local businesses often do not brand specific products or services; their "brand" is formed through the perceptions of target audiences.

  • Defined as a target group's understanding based on experiences and information received.

Qualities of a Strong Brand

• Recognition:

  • A strong brand is well-known to the target group.

• Perception:

  • Favorably perceived by the target group.

• Exceptional Value:

  • Seen as extraordinary compared to peer brands.

• Brand Familiarity:

  • Essential to building brand strength but does not guarantee success.

• Positive Brand Attitudes:

  • Needed to develop a strong brand image.

• Differentiation and Superiority:

  • The dominant brand must be perceived as superior among competitors.

Dimensions of Brand Strength

• Brand Strength Definition:

  • The extent to which a brand is well-known, favorably perceived, and seen as remarkable by a target group.

• Three Dimensions of Brand Strength:

  1. Brand Familiarity:

  • Degree of awareness among the target audience.

  1. Brand Attitude:

  • Positive perception by the target group.

  1. Brand Remarkability:

  • Perception of being extraordinary.

Brand Strength as a Moderator

• Influence of Brand Strength on Marketing Activities:

  • Stronger brand strength correlates with better marketing results.

• Inter-dimensions Dynamics:

  • Highlights the importance of ongoing communication and improvement.

Managerial Implications of Brand Strength

• Initial Focus:

  • Start with creating an exceptional business (high remarkability).

  • Use the aspects that provide distinction to inform communication strategies enhancing audience familiarity.

• Brand Management Strategies:

  • If brand orientation isn't established, assess current brand strength as a diagnostic tool for future strategies.

Strategic Implications of Brand Strength

• Monitoring Changes Over Time:

  • Evaluate whether the organization is becoming more appealing to potential supporters versus peers.

  • Tools for assessment include comparing perceived strengths against competitors, marked by scales from average to below average and exceptional.

Managers’ Bias in Brand Perception

• Common Biases:

  • Overestimation of familiarity and favorability of their organization.

• Social Network Effects:

  • Managers' biases stem from social networks where perceptions are skewed by familiarity compared to the general community.

  • The essential factor is the perception of potential supporters.

Strategic Implications Based on Brand Metrics

• Strong Brand:

  • If well-known and extraordinary, the brand is strong.

• Remarkable but Unfamiliar:

  • Undertake promotional strategies to increase recognition.

• Remarkability Development Program:

  • Continuous improvement strategies that increase brand capabilities and subsequent communications.

• Perceived Mediocrity:

  • Focus on becoming remarkable and then communicate improvements to shift perceptions.

Steps for Improvement

1. Make the organization remarkable through continuous improvement programs.

2. After achieving high remarkability, communicate the enhancements effectively to potential supporters.

3. If mediocrity persists post-improvements, consider rebranding options.

Measurement of Brand Strength

• Survey-Based Measurement:

  • Brand strength can be evaluated using a series of nine specific survey questions categorized into familiarity, remarkability, and attitude:

  1. Familiarity Questions:

     • Knowledge of brand activities.

     • Ability to describe the brand.

     • Understanding the brand's past actions.

  2. Remarkability Questions:

     • Comparison of performance with competence (rating exceptionalism).

     • Brand standing out compared to peers.

  3. Attitude Questions:

     • Positive thoughts toward the brand.

     • General liking and overall positive impression.

Evaluating Brand Strength Progress

• Accountability Through Measurement:

  • Assessing marketing effects on brand strength over time.

• Brand Tracking Charts:

  • Provide visual metrics on brand strength compared to peers over time to evaluate progress.