Introduction To Brand-Lecture Notes

Advanced Diploma in Marketing Advanced Diploma in Marketing and Brand Management ks Module
Introduction to Branding
Lecture 1 Po Leung Kuk Community College Campus
Advanced Diploma in Marketing/Marketing and Brand Management Introduction to Branding
Copyright Chan Ka Sik 2010. all rights reserved
Objectives of This Module

Module Introduction to Branding focuses on the role of branding in marketing management. The module covers the measurement of the success of a brand, critical evaluation of branding strategies, and positioning a brand in the competitive marketplace.
Structure of This Module

Class Attendance 12 Lectures (10% - Class Participation) Two Assignments
Individual Assignment ( % - due Week 6) g (10% ) Group Assignment (Report: 15% - due Week 11; Presentation: 5% - Week 12)
Term-End Examination (60%)
Who am I?
My Profile
KS Chan Do and Dont - My expectation on class, assignments and presentation
How about you?

Name Profession/Industry
5 Whys in Brand Management

5 Whys Technique developed by Toyota for Root Cause Analysis For example:
Taking Introduction to Branding from Advanced Diploma offered by HKU Space 1st Why? Branding is importance to modern marketing management 2nd Why? A good brand can add value to company 3rd Why?.....
Advantages of having a Brand

Easy for the seller to track down problems and process orders Provide legal protection of unique product features Give an opportunity to attract loyal and profitable set of customers Help to give a product category at different segments, having separate bundle of benefits Help build corporate image Minimise harm to company reputation if the Brand fails
Key to Branding
For Branding Management to be successful, consumers must be convicted that there are meaningful differences among Brands in the product or service category. Consumer must not think that all brands in the category are the same.
Perception = Value
Brand Loyalty: Motivate Desire to Purchase Perceived Quality: Satisfaction, Product Image and Product Quality Consumer reasons for Brand Choice
Past experience & Peer Pressure/Recommendation Price & Quality Advertising/Media & Rating on Consumer Report Environmental Performance
Example: Samsung
Until late-1990s, Samsung was far behind its rivals in both technology and response to market Samsung was not only a mediocre manufacturer but also a poor marketer. The old identities for Samsung were also associated with l ith low-end products f d d t from a t h l i l l technological laggard. d The new identity, by Lippincott Mercer, communicated the added value of a technology leader, while maintaining elements that suggested honestly and longevity quality that were unchanged. (Perception follows image)
Entering the 2000s, Samsung scores better than its competitors in predicting the future trends, decreasing its response time, and excelling its marketing muscle. Twin strategies of Samsung Speed and Choice are implanted into the i l t d i t th revamped B d I d Brand Image of f Samsung.
What is Brand and Brand Management?

A Brand is a Name, Term, Sign, Symbol, or Design which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. The word "brand" is derived from the Old Norse brand word brandr, meaning "to burn (i.e. branding of cattle)". It refers to the practice of producers burning their mark (or brand) onto their properties and products.
Meaning of Brand in Chinese: (http://baike.baidu.com/view/9013.htm?fr=ala0_1_1)

Source: WorldBrandLab.com
Who owns the brand? The real owner of the brand is not the marketing or communication director The brand is intrinsic to the product or service offered, and the needs to be supported by all operations. pp y p A NAME becomes a BRAND when consumers associate it with a set of tangible and intangible benefits that they obtain from the product or service. It is the sellers promise to deliver the same bundle of benefits/services consistently to buyers.
Branding is always a two-way process, a dialogue between suppliers and customers to define a brands promise in a workable way. Each side plays a different, but vital, role. Great brands never change, and change change constantly. The core of what appeals to a customer a brands meaning and values, its promise, and the satisfaction it gives should be consistent, giving customers something to believe in and remain loyal to, over the long term.
The manifestation of a brand external factors and internal factors not only can, but must change. Kevin Roberts of Saatchi & Saatchi calls brands lovemarks - meaning that the best lovemarks brand appeal to us because we love what they stand for. People is not always rational, more often emotions drive our behavior, including our purchasing pattern.
It is a rational and emotional formula based on the sum of trust, relevance, and significance that relates people to a firm, a product, or a service throughout their life. A Managers goal must be to build Brand Equity Manager s
A Brand can only be strong if it has a strong supply of loyal customers Brand Equity therefore can be defined as a measure of strength of consumers attachment to a Brand.
Brand Mantras
A Brand Mantras is an articulation of the Heart and Soul of the Brand . Brand Mantras are short three to five word phrases that capture the irrefutable essence or spirit of the Brand Positioning and Brand Values.
Nike Authentic Athletics Performance
Disney Fun Family Entertainment
10
How about HKU Space?
Brand Elements
A variety of Brand Elements can be chosen that inherently enhance Brand Awareness or facilitate the formation of strong, favourable and unique Brand Association.
11
Brand Elements:
Brand Name Logo Symbol Character Content and Packaging Slogan
History and Development of Brand Management
12
The first brand-like marks, existing long before industrialisation and the emergence of distinct commercial brands, included monograms, earmarks, ceramic marks, hallmarks, hallmarks watermarks and furniture marks. marks Brands show origin or ownership of goods.
Brands in the field of marketing originated in the 19th century with the advent of mass production, improvement of transportation and rise of packaged goods. When factories Wh f t i centralised production of t li d d ti f household items, some of them branded their logo, extending the meaning of "brand" to that of trademark. Brand value depends on threshold of its target market.
13
Also, products were marked by hand which made them difficult to attach values of brand to products in any consistent way. After Industrial Revolution, innovations in production, and packaging made th mass d ti d k i d the branding of goods possible individual packages of branded goods became available for consumers to buy. Mass production and Expansion of Reach gave birth of Brand Management.
After the Industrial Revolution, manufacturers have bigger capacity, wider market and more diversified customer-base. Manufacturers needed to convince the market that the public could place j t as k t th t th bli ld l just much trust in the non-local product. Heniz, Campbell Soup, Coca-Cola and Quaker Oats were among the first products to be 'branded', in an effort to increase the consumer's familiarity with their products.
14
The capacity to flexibly respond to consumer trends has been a part of postFordist economic organization since the 1970s. What is the relationship between Unique Selling Points (USPs) and Mass Production?
The period from late-19th century to mid20th century was characterised by: increased competition between relatively similar products a more systematic use of advertising as well as packaging to make products more attractive attach various kinds of values and associations to their goods for differentiation from competitors.
15
From there, manufacturers quickly learned to build their brand's identity and personality, such as youthfulness, fun or luxury. This began th practice we now k Thi b the ti know as "branding" today, where the consumers buy "the brand" instead of the product. This trend continued to the 1980s, and is now quantified in concepts such as Brand Value and Brand Equity.
In 1988, for example, Philip Morris purchased Kraft for six times what the company was worth on paper; it was felt that what they really purchased was its brand name name. nd April 1993, the same Philip Morris On 2 reduced RSP of its products. The socalled Marlboro Friday illustrated how erosion of brand power of some megabrands.
16
Naomi Kleins (2000) No Logo drew special attention to the role of branding: expanded spatial scope of this form of marketing into a wider array of g y public spaces in the form of sponsorship, viral marketing and more elaborate retail sites.
Rivalry between Production and Distribution:

Manufacturing
Procurement Manufacturing of of Raw Materails Finished Products
Distribution
Retailing
Phase I
Logistics
Procurement of Semi-Finished/Finished Products Stocking up and Selling and Handling of Finished Products of Finished Products Sales Promotion of Finished Products Sales Promotion of Finished Products Stocking up and Selling of Finished Products
Sales Promotion of Finished Products
Phase II
Procuremen t of Raw Materails
Manufacturing of Finished Products
Branding of Finished Products
Logistics
Phase III
Procuremen t of Raw Materails
Manufacturing of Branding of Advertising & LogistFinished Promotion ics Finished Products Products
Branding and Development of Finished Products Advertising & LogistPromotion ics
Logistics
Merchandising of Finished Products
Phase IV
Manufacturing and Supply Chain Management Systems
Logistics
Sales Promotion
Merchandising of Finished Products
Sales Promotion of Finished Products
Source: Chan, 2008 Advanced Diploma in Marketing/Marketing and Brand Management Introduction to Branding
17
The cultivation of more or less abstract values around brands relates to a second new function of branding, which concerns its growing efforts to use consumer affect, and socialised forms of exchange more generally, as sources of value.
By the late-1990s, brands and branding had taken on a significant number of new functions: their status as indicators of origin and guarantors of quality di i i h d t f lit diminished The abovementioned functions are taken place by regulation of public authorities Brands: a mean or an end?
18
Positioning of Brand in Marketing Management

5 Whys on Branding Revisit: What is the Positioning of Brand in Marketing Management?
Group Discussion: Personal Branding
19
Takeaway of the Lecture
20
Advanced Diploma in Marketing Advanced Diploma in Marketing and Brand Management Module
Review of Lecture One
21
Possible Advantages of Branding Strategy

Key Brand Strategies:
Line Extension existing brand name extended to new sized in the existing product category Brand Extension brand name extended to new product categories Multi-brand new brands in the same product category New brand new product in a different product category Co-brand brands bearing two or more well know brand names Repositioning of Brand which might take a few years to face new competition and changing customer preferences
Strategic Brand Management involves the design and implementation of marketing programmes and activities to build, to measure and to manage Brand Equity. Strategic Brand Management process is defined as involving four main steps:
Identifying and Establishing Brand Positioning and values Planning and Implementing Brand Marketing Programmes Measuring and Interpreting Brand Performance Growing and Sustaining Brand Equity
22
Recent Developments of Brand Management

Some key recent developments affecting Brand Management:
Shift in Power in the Value Chain Fragmentation of Markets and Media Complex Brand Strategies and Relationship Impacts of Telecommunication Revolution Internet
Some key recent developments affecting Brand Management:

Intensifying Market Competition in both Price Competition and other competitive pressures: Bias Against Innovation Pressure to invest elsewhere go overseas Short-term pressures
23
Some key recent developments affecting Brand Management: Brand being product-plus (productdriven) to Brand being a concept ) g p (market-driven) Brand as core competence of company
Seven deadly sins of Brand Management (Keller, K. L., 2003):

Failure to fully understand the meaning of the Brand Failure to live up to the Brand promise Failure to adequately support the Brand Failure to be patient with the Brand Failure to adequately control the Brand Failure to properly balance consistency and changes with the Brand Failure to understand the complexity of Brand Equity Measurement and Management
24
Some key strategic brand elements covered by this module include:

brand as corporate strategy/core competence of company first fi t mover advantage d t brand renewal and revitalisation brand naming and identity challenger brands brand positioning emotional branding
Some key strategic brand elements covered by this module include:

service branding brand alliances/M&A/strategic alliances/partnership/co-branding lli / t hi / b di Protection of Intellectual Property (patents, indigenous knowledge, authenticity and trademarks) Images in conflict - Most corporations visual identities were currently created by several different actors, from industrial designers and agencies to freelance graphic designers.
25
Brand Power
Customer will change brands for price reasons Customer is satisfied. No reason to change. Customer is satisfied and would take pains to get the Brand. Customer values the Brand and see it as a Friend. Customer is devoted to the Brand.
New Brand Challenges

Brand Management is as difficult as ever:
Savvy Consumers Increasing Market Competition Decreased effectiveness of traditional marketing tools and emergence of new marketing tools Complex Brand and Product Portfolios
Brands are important as ever:

Consumer need for Simplification Consumer need for Risk Reduction
26
The Customer/Brand Challenge

Marketers should understand their:
Customers Brands Relationship b t R l ti hi between th T the Two
Group Discussion: Branding a Nation

Strategic Brand Management involves the design and implementation of marketing programmes and activities to build, to measure and to manage Brand Equity. Nation branding, firstly introduced by Simon branding Anholt, is theory and practice aiming to measure, build and manage the reputation of countries. It believes that symbolic value of products can affect economic activities of the country in certain extent. How to brand China?
27
Briefing on Individual Assignment
28
29
Review of Lecture Two

STEPS
Identify and Establish Brand Positioning and Values Plan and Implement Brand Marketing Programs d k i Measure and Interpret Brand Performance
Grow and Sustain Brand Equity
KEY CONCEPTS
Mental maps Competitive frame of reference Points-of-parity and points-of-difference Core brand values Brand mantra Mixing and matching of brand elements Integrating brand marketing activities Leveraging of secondary associations Brand Value Chain Brand audits Brand tracking Brand equity management system
Brand-product matrix Brand portfolios and hierarchies Brand expansion strategies Brand reinforcement and revitalization Advanced Diploma in Marketing/Marketing and Brand Management Introduction to Branding
Re-defining Brand
Authenticity and Real Brands inhabit categories, but are not really of those categories. A great brand transcends categorization to stand for a g larger, abstract meaning.
30
On Branding:
A composite of how consumers feel about a product, the personality they attribute to it, the trust they place in it. The Relationship between the product and its user the total user, experience a consumer has (Ogilvy & Mather) A Brand is the sum total of a customers experience of it 360 degrees emotional, sensory, physical contacts. On-going relationships build brands (Brand Week)
Brand Equity
Brand Equity stresses the importance of Brand Strategy Brand Equity is said to be the difference between the perceived value and the intrinsic value - at the root of these marketing effects is consumers consumers' knowledge on product and brand. Power of a Brand resides in the minds of customers. Brand Equity is defined in terms of the marketing effects uniquely attributable to the Brand.
31
Brand Equity needs to be nourished and replenished. If Brand is not well maintained, Brand Equity will be diluted or dissipated. Source of Brand Equity Brand Image Brand Awareness Learning Advantage Consideration Advantage Choice Advantage
Challenges is to ensure customers have the right types of experiences with products and services and their marketing programmes to create the right brand knowledge structures: Thoughts Feelings Images Perceptions Attitudes
32
Brand Association Brand Awareness Brand Positive Attitude Brand Loyalty Brand Occasional users
Customer-based Brand Equity

Concept
Differential Effect Customer Brand Knowledge Customer Response to Brand Marketing Determinants of Customer-based Brand Equity Customer is aware of and familiar with the Brand Customer olds some strong, favourable and unique brand associations in memory
33
Customer-based Brand Equity as a Bridge:

Customer-based Brand Equity represents the added value endowed to a product as a result of past investments in the marketing of a brand. Customer-based Brand Equity provides direction and focus to future marketing activities.
Benefits of Customer-based Brand Equity:

Enjoy greater Brand Loyalty, Usage and Affinity Command larger Price Premiums/ Capability of Initiating Price Competition Trade Leverage - Receive Greater Trade Cooperation and Support Reduced Marketing Costs and Increase Marketing Communication Effectiveness Yield Licensing Opportunities Support Brand Extension
34
Customer-based Brand Equity Pyramid

ConsumerBrand Resonance INTENSE, ACTIVE LOYALTY
Consumer Judgments
Consumer Feelings
RATIONAL & EMOTIONAL REACTIONS
Brand Performance
Brand Imagery
POINTS-OFPARITY & POINTS-OFDIFFERENCE
Brand Salience
DEEP, BROAD BRAND AWARENESS

Salience Dimensions ( or)

Depth of Brand Awareness
Ease of Recognition & Recall Strength & Clarity of Category Membership
Breadth of Brand Awareness

Purchase Consideration Consumption Consideration
35
Performance Dimensions
Primary Characteristics & Supplementary Features Product Reliability, Durability and Serviceability Service Effectiveness, Efficiency and Empathy Style and Design Price
Imagery Dimensions
User Profiles
Demographic & Psychographic characteristics Actual or Aspirational Group Perceptions Popularity
Purchase & Usage Situations

Type of Channel, Specific Stories, Ease of Purchase Time, Location, and Context of Usage
Personality & Values (Sincerity, Excitement,

Competence, Sophistication & Ruggedness)
History, Heritage & Experiences

Nostalgia/Sanctuary & Memories
36
Judgment Dimensions
Brand Equity Value & Satisfaction Brand Credibility Expertise, Trustworthiness & Likability Brand Consideration Relevance Brand Superiority - Differentiation
Feeling Dimensions
Warmth Fun Excitement Security Social Approval Self-Respect
37
Resonance Dimensions
Behavioural Loyalty Frequency & Amount of Repeat Purchase Attitudinal Attachment Brand Likability y and Proud of Brand Sense of Community Kinship & Affiliation Active Engagement Seeking Information and Joining Gathering
Brand-Product Relationship
What is a Product?
A Product is any offering by a company to a market that serves to satisfy customer needs and wants. Object, Service and Idea which carry Commercial Value.
38
Beverage
Water Non-Alcoholic
Non-Water Alcoholic
Dairy
Coffee & Tea
Juice
Pop
Wine
Beer
Spirits
Brands transform products

Consumers use both tangible and intangible attributes to decide whether two products are different
Quality and Value Brand Image Perceptions of Brand Users
Intangible Attributes
Difficult for Competitors to Copy More likely to involve consumer emotionally A Product is any offering by a company to a market that serves to satisfy customer needs and wants.
39
Should we start with Brand or Product in order to build the business?

Some model answers include:
If your products are differentiable, start with them; Always start with brand; Brand and products just cannot be separated from one another.
Which answer is sound to you?
40
Review of Lecture Three
41
Product Life Cycle

Relevant issues in PLC analysis
Determining the length and rate of change of the PLC Identifying the current PLC stage and selecting the product strategy that corresponds to that stage Anticipating threats and finding opportunities for altering and extending the PLC
ProductLifeCycle
Development
Introduction Growth Mature Decline
ProductLifecycle SystemLifecycle Marketing&Sales Engineering Management Ideation(idea generation) Conceive Ideation Designand ConceptDesign develop Design DetailedDesign Production, Realize constructionor Advertising ToolDesign procurement Distributionor Production delivery Planning Service Selling Manufacture Operation, SalesOrder Maintenance maintenanceand processing support Redesign Retirement,phase outanddisposal Recycling
Logistics
Finance
Investment Sourcing Procurement Purchasing Stockcontrol Delivery SpareParts Return Cashflow POSOadmin
Source: http://en.wikipedia.org/wiki/Product_lifecycle Advanced Diploma in Marketing/Marketing and Brand Management Introduction to Branding
42
New Product Development (NPD)

Most new product development (NPD) is an improvement on existing products Failure Rate of NPD
Success Rate of NPD is extremely low less than 5% of NPD exists after one year launching You have to kiss a lot of frogs to find a prince
New Product Development (NPD)

New-to-Us vs. New-to-Market Less than 10% of new products are totally new concepts y p Obsolescence of Products and Shortening of Product Life Cycle
Technical Obsolescence Market/Planned Obsolescence
Merits of NPD
43
NPD Cycle
Idea Generation Idea Screening Concept Development Concept Testing Con-joint Analysis (Valued Attributes by Consumers) Product Design and Branding of Product Business Analysis (Sales Expectation; Breakeven Point and Cash Flow Projection)
Elements of Brand: Intrinsic Attributes of Brand

Intrinsic Attributes are those properties of a good or service that, when they are changed, they change the product (Szybillo & Jacoby, 1974). Non-distinguishing Intrinsic Attributes
Found in all branded articles of a product cat cat. For example, all bottled waters are in PET bottle
Distinguishing Intrinsic Attributes

Intrinsic attributes found in particular brand only Such as Mineral Water vs. Distilled Water
44
Preference or Hierarchy of Attributes

Although a branded product might have many attributes, only one or part of attributes be relevant to customers. Therefore, customers will rank these attributes , according to their own preferences. Irradiation Effect of Intrinsic Attributes
Attributes can influence each other Studies on User Interface and Consumer Sensory Reflect
Example: Why Benz but not Lexus?

Elements of Brand: Extrinsic Attributes of Brand

Extrinsic Attributes are simply all those attributes of a branded article that cannot be considered part of the Intrinsic Attributes. Key elements:
Brand Name Country-of-Origin Effect Packaging Information Available/Disclosure Price Corporate Image
45
4P/4C and Branding

Revisiting concepts of 4Ps and 4Cs in Marketing Management:
Product Price Pi Place Promotion
Commodity Cost C t Channel Communication
4Ps was coined by Jerome McCarthy in 1960.

What is Marketing? What is the positioning of Brand Management in Marketing Management?
46
STP of Marketing
Formula STP (segmentation, targeting and positioning) is the essence of strategic marketing (Kotler, 1994:93). Segmenting allows marketers to seek out a group of customers who share a similar set of wants, and shapes the configuration of the value chain (Porter, 1985:53) 1985:53). Targeting can make sure that resource is fully utilised and company's objectives are met. Positioning is to let bundle of attributes join to form one concept which aims at capturing the essence of that which the target audience seeks in the product category.
Market Segmentation 1. Identify segmentation variables and segment the market 2. Develop profiles of resulting segments
Market Targeting 3. Evaluate attractiveness of each segment 4. Select the target segment(s)
Market Positioning 5. Identify possible positioning concepts for each target ht t segment 6. Select, develop, and communicate the chosen positioning concept
47
Segmentation and Branding

Identifying bases for Segmentation Segmenting the Market Developing Segment Profiles Developing measure of segment attractiveness Selecting target segments
Demographic Segmentation Variables include:

Age Gender Family Size or Life Cycle Income (and Disposable Expenditure) Occupation Education Religion Race Generation Nationality
48
Behavioural Segmentation Variables include:

Occasions Benefits User St t U Status Usage Rate Loyalty Status Readiness Stage Attitude toward Product
Psychographic Segmentation Divides customers into different groups based on Social Class, Lifestyle and Personality. 4 groups of customers:
Convertible Hi hl lik l t switch b d C tibl Highly likely to it h brands Shallow Not ready to switch but consider alternatives Average Comfortable with their choice, unlikely to switch brands in the near future Entrenched Loyalty to the Brand, Unlikely to change in the foreseeable future
49
Positioning and Branding

The Concept of Positioning is promoted by Al Ries & Jack Trout in their epic work, Positioning: The Battle of your Mind. Positioning is to create an identity in target market segment for its product/brand. Position is not what you do to a product, it is what you do to the mind of a prospect (Ries & Trout, 1972) Three kinds of Positioning: Functional Positions Symbolic Positions Experiential Positions
How to position a brand in market place? Positioning Choices

Relative Price of the Brand/Product
We believe pricing create some psychosocial effects to some particular groups of customers Low-Cost Strategy Premium Strategy Prestige Strategy Remember: NEVER do price cut until all marketing tools are found ineffective
50
Positioning Choices
Its Intrinsic Dimensions
Water A contains xxxyyyyzzzzz (Instrumental aspects) After drinking Water A, you can feel 5 years After younger (impressive aspects) Mr. aaabbbbccccc is also fan of Water A (Expressive aspects)
Differences between PLC and Brand Life Cycle is that after the Decline Stage, a brand can re-born through Re-positioning.
The process of creating a perception in the consumers mind regarding the nature of a company and its products relative to the competition.
51
7 ways to achieve effective positioning:
POSITIONING
Differentiation and Branding

Positioning choices (Pricing and Purchase motivation)
Differentiation: functionalimpressiveor expressiveaimedatsocial expressive aimed at social recognition Identification: functionalimpressiveor expressiveaimedatnofrills
Positive
High
Differentiation: functionalinstrumental functional instrumental
Price
Identification: functionalinstrumental
Negative
Low
Purchase Motivation Source: Riezebus, 2003: 59.
52
Brand Images
Brand Image is a subjective mental picture of a Brand shared by a group of customers Perceptions, Recognition and Feeling vs. Brand Image Components of a Brand Image: p g
Content of a Brand Image Manifest and Latent contents Association of Content to Brand Image Image Forming (Communication, Experiences and Peer Influences) Representation of Brand Image in Memory (Short-term store and long-term store) Image Transfer
53
Review of Lecture Four
54
Choice of Route for Brand Development

Brand Building is an expensive exercise. Among various Brand Building activities, Advertising is regarded as the most effective mean in promoting Brand among customers. Choice of Route for Brand Development: p
Budget for Brand Building and ROI of investment Reach of Target Group and its Market Share Target Size of Target Market Segment Level of Differentiation
How many GRPs are necessary?

Share of Voice (SOV) vs. Share of Market (SOM)
High-Budget Route of Brand Building

A deep-pocket company can afford high-budget route of Brand Building by the means of massive advertising campaign. Objective of advertising campaign is to make clear Brand Positioning to target groups. Pull Strategy vs. Push Strategy Brand Life Cycle:
Introduction Development Mature Decline Sampling Advertising on Differential Benefits Advertising against Copycats Repositioning of Brand
55
Low-Budget Route of Brand Building

For startups or companies without much A&P budget, high-budget route is not an option to them. By making good use of some available marketing tools on hand, such as Brand Name and Packaging Design those companies can also be Design, used for Branding purposes in a certain extent. Remember: all Great Brands are nobody in the very beginning and Goliath is not always the winner.
Low-Budget Route of Brand Building: Brand Name

Joyce and Juliet Principle:
A well-chosen Brand Name can transfer associations of the name to Brand Equity Joyce Principle.
For example, Bonaqua can make customers associating to high-quality bottled water products
However, an irrelevant Brand Name can also impress customers favourable, provided that sufficient marketing communications have been made.
Yellow Tail and wine?
56
Low-Budget Route of Brand Building: Packaging

Packaging is not only provide protection and convenience to food products itself, packaging is also a carrier of information, and give cues on natural and quality of the product (Grunert, 2006:164). ) Packaging serve logistic functions, marketing functions and also bear eco-friendliness implications; and it also forms part of competitiveness of finished products and companies themselves.
Active and Passive roles of Packaging:

Active role of Packaging when packaging design can contribute to Brand Image
For example, Bonaqua can make customers g g q y products associating to high-quality bottled water p
Passive role of Packaging when packaging serve as a signal function for customers to identify the brand at given circumstances
Yellow Tail and wine?
57
Packaging design of Absolut Vodka:
Above-the-Line vs. Below-the-Line

Above-the-Line means promotions for enhancing Brand Awareness among mass audience. Therefore, common ATL campaigns involve uses of mass media. While, Below-the-Line promotions target particular groups of customers and affect their intention of making purchase decision. Marketing mix of ATL and BTL for a lowbudget route of Brand Building are?
58
Qualification Mark and External Accreditation

Needs for Qualification Mark and External Accreditation are? 3 levels of protected status of foods in the EU:
Protected Designation of Origin
food products that are produced within a particular geographical area, and must have features and characteristics due to that area;
Protected Geographical Indication

food products that are produced within a particular geographical area, and with a reputation, features or certain qualities attribute to that area;
Traditional Speciality Guaranteed

food products that are traditional or have customary names and a set of attributes distinguishing from other similar products. Advanced Diploma in Marketing/Marketing and Brand Management Introduction to Branding
Private Brand
Sainsburys (UK) started retail labels in 1869, as had the Co-op in France in 1929. The real rise of them in modern times started in the 1920s when retailers noticed a shrinking profit margin for branded goods goods. According to Strasser (1989), until the mid-1920s they thought they also paid for the advertising costs of national (manufacturer) brands. Wholesalers were even more reluctant, since they were losing their power over branding.
59
During the 1970s, retail brands attracted more attention, but they were often regarded as cheap and low-quality products. The French retailer Carrefour, however, was a pioneer in Europe and introduced produits libres (free products) in 1976. These brands were known as banner brands umbrella brands, and they were a new type of brand. Carrefour wanted to show that their products could be as good as manufacturers strong brand but without a brand name and with lower prices.
Generics were seen as extensions of their labels and competed with them and not with the manufacturer brands. The increasing scale and internationalization of retailers has significantly changed their relative power with respect to the manufacturers. Retailers are now following the manufacturers and becoming international and multinational retail chains. And in some cases, beginning to exceed considerably the scope and flexibility of todays multinational brands.
60
Private Label Present:

Status Reduction (improved); Brand Loyalty toward Manufacturer Reduction; Convenience is the name of the game; g We all love a Bargain; Trading Up (of Private Brand); Involvement Freshness; Health.
61
Review of Lecture Five

Needs of Customers Forms of Wants Specification Of Products Attributes Of Brands
Competing Needs N d
Competing Format F t
Competing Segment S t
Competing Brand B d
Transform Into Wants
Market Segment
Product Categories
Brand ABC $$$
62
Brand Name Strategies

Monolithic Brand Name Strategy
1 Brand Name and 1 Visual Style among various product category
Dualistic Brand Name Strategy

2 Brand Names for same product category
Multilitnic Brand Name Strategy

Brands have their own name
Brand Name Strategies of Volkswagen
63
Considerations of Deciding Brand Name

Size of Marketing Comm. Budget
Lower the budget, Higher Joyce Principle
Brand-Product Relationship
Concerns on Brand Extension and Positioning
Competitive Position of the Brand

Brand name in indicating newness to market, class of products and associations
Use in other language area

Meanings of a Brand Name in other languages
Classification of Brand Names

Fictitious Legal protection Associative Suggestive Descriptive Product relatedness
64
Fictitious brand names do not refer to the product at all:

The brand name does not refer to the product at all e.g. Kodak, Rolex Name of the family who started the company e.g. Ford, Addidas Name of the place of origin Tabasco Foreign names e.g. Nike, Xerox Abbreviations e.g. BMW, Fiat
Associative brand names do not directly refer to the product but do contribute to the desired experience of g consuming the brand:
For example, Venetian (casino), Name-ofplaces (restaurants), After Eight (chocolate mints), Timeout (chocolate snack)
65
Suggestive names indirectly refer to the product or the advantages of consuming the product:
Head & Shoulders (dandruff shampoo) shampoo), Crown/Camry/Corolla (automobile), I Kleenex (tissues), Ray-ban (sunglasses)
Descriptive names refer to the functionality of the brand or the tangible advantages of the product:
Bank of China
Pros: Low consumer involvement/high perceived quality; easy to recognise and understand Cons: Boring, difficult to use globally, difficult to protect legally
66
Brand Name Development Process

1.
2. 3.
4.
5.
Agency briefing: market position and competitors, brand-product relationship, brand-name strategy Creative process: brainstorming Names tested: strategic criteria, linguistic criteria, legal criteria (5 to 10 brand names) Feasibility research: consumer acceptance tested Brand name choice and registration
Change of Brand Names

Reasons of changing Brand Names:
Brand Name Association diminish Brand Value
Kentucky Fried Chicken -> KFC
Sub-brands value exceeds mother brand

Tancho -> Mandom (brand owner of Gatsby) >
Brand Extension Goes overseas (pronunciation/positioning) As a result of M&A Legally problematic

Before legal settlement with The Beatles, Apple cannot use its brand to music industries
67
Effective Brand Names

Brand names should be emotional for certain products Brand name should be legally protectable Avoid excessive use of initials Develop brand names that are effective p internationally The brand name should be simple The brand name should be distinctive The brand name should be meaningful The brand name should be compatible with the product
Effective Brand Names: linguistic aspects

Repetition of consonants: KitKat, Range Rover Repetition of vowels: Corona Initial l i I iti l plosives: b d k p, t or h d b, d, k, hard sounding c or g, Bic, Dior, Gucci, Kodak Shortening of brand names: Coke, KFC
68
Effective Brand Names: Brand Association

Repetition of consonants - KitKat, Range Rover Names of animals Crocodile Names of famous places - G t Wall N ff l Great W ll Names of regions Champagne Names of colours - Orange
Brand Name Recognition vs. vs Brand Name Recall

High Graveyard
Brand
Recognition g (awareness only)
Niche brand
Low
Recall (evoked set) Advanced Diploma in Marketing/Marketing and Brand Management Introduction to Branding
Low
High
69
Brand Name Spectrum
Company as brand name
Strong company endorsement
Weak company endorsement
Individual brand name
Incomplete Brand Name: Principle of Closure

Closure implies that consumers tend to perceive an incomplete picture as complete. This can increase consumer involvement and strengthen the impact of a brand name For example: Esprit, FCUK
70
Role of Design in Brand Management

A package can be more important than the product itself. For some successful products, the package had become the product and brand identity. Design as a Brand Instrument can:
Identification Differentiation Transfer of Material Brand Values Transfer of Immaterial Brand Values
Brand Attributes in which Design plays

Product Design Packaging Design Corporate Design Logo Design
Identification Differentiation Communication of Brand Values Attractiveness Familiarity, or elements make customers familiar with
71
Shape and Colour

Shape
Gestalt Theory the whole is greater than the sum of its parts
Colour
Tint of Hue Tone Brightness
Evolution of Brands/Logos
Source: http://www.instantshift.com/2009/01/29/20-corporate-brand-logo-evolution/ Advanced Diploma in Marketing/Marketing and Brand Management Introduction to Branding
72
Source: http://www.instantshift.com/2009/01/29/20-corporate-brand-logo-evolution/ Advanced Diploma in Marketing/Marketing and Brand Management Introduction to Branding
73
Review of Lecture Six
74
Advertising as a Marketing Instrument

Advertising can provide information by making consumers familiar with the brand/brand name; Advertising can highlight the differential g g g advantages of a product; Advertising can act as a reminder on the advantages of the product; Advertising is inciting consumer to purchasing behaviour.
However, please be aware of followings:

Advertising might has delayed effect on sales of products; Absolute effect of Advertising indicates correlation of ad. i l ti f d inputs and sales result i t d l lt is not necessarily in equal portion; Direct result of Advertising depends on execution of Advertising and choice of Advertising means.
75
Objectives of Advertising
Increase brand awareness (and eventually turnover) without altering price dimension of positioning. During Planning Process, identification g g , of prime target audience is important:
Who is the most influential in the decision process Who you think you can influence
Again, we need to rethink: Pull vs. Push

Customer-focused Objectives
Central/High Involvement/Thinking route Peripheral/Low Involvement/Feeling route
Exposure oriented Exposure-oriented Objectives

Intensive Reach/Frequency/GRP inputs dictates effectiveness
76
Functions of Advertising
Provision of information to customers Reminding role of advertising Familiarising of the Brand Creation of Brand added value Brand-added Inciting customers purchase behaviour
Two Forms of Advertising Execution

Informational Advertising (Functional)
Product Quality Distinguishing Key Attributes (USPs) Slice-of-life advertising g
Transformational Advertising (Expressive)

Conveying a feeling to customers Transforming use experiences in a positive way Increasing Psychosocial communicative value of the brand
77
Operating Aspects of Advertising

For informational ad, problem-solving context is effective in attracting target customer groups: Teaser Ad http://www.youtube.com/watch?v=PbEatXPDkTE Reason-Why ad http://www.youtube.com/watch?v=3VkTOlVo0kE&feature=related Presenter-Style Ad P t St l http://www.youtube.com/watch?v=0ljL3-u0pcY Testimonial Ad http://www.youtube.com/watch?v=X5dqU6v4SA8&NR=1 Slice-of-Life Ad http://www.youtube.com/watch?v=wZv44LjztFU For transformational ad, advertisement should be interesting, easy to identify, and call up for authentic emotion: http://www.youtube.com/watch?v=actzm5fI0d0
The most successful Advertising Campaign in a decade

http://www.youtube.com/watch?v=m-aQnkyyNIU http://www.youtube.com/watch?v=xFzYiLDa6mg&NR=1 http://www.youtube.com/watch?v=M1ItxNWf2k&feature=related http://www.youtube.com/watch?v oChEaJskWy0&NR 1 http://www.youtube.com/watch?v=oChEaJskWy0&NR=1 http://www.youtube.com/watch?v=t9iyB0gZB2s&feature=rel ated http://www.youtube.com/watch?v=mggxOaGXh4w&feature= related
78
Time Period of Effects of Advertising

Wear-in of Advertising (An Ad has an effect on the cognitive, affective or behaviourial levels) Wear-out of Advertising ( g (Dissipation of p Wear-in of Advertising) Longevity of Wear-in depends on:
Numbers of times that a consumer is exposed to an Ad Amount of time between exposures to an Ad
Advertising Budgets
Trade-off among different A&P combo Percentage-of-Sales Share of Voice vs. Share of Market
79
Evaluating Advertising Copy

Consumer Jury Portfolio Tests Readability Tests Theatre Tests Laboratory Stores Welcome to the real world
Inquiry Tests Recall Tests Recognition Tests Sales Tests
Milestones in Media History

1275 1452 1631 1841 1882 1919 1920s 1928 1939 1954 1972 1986 1994 Invention of Paper by Chinese Gutenbergs Bible printing project First classified ad in a French paper First ad agency born in the US Ivorys 99 & 44/100% Pure brand ad Short-wave radio was invented Full-colour ad in magazines in the US Television sets entered household Regular TV broadcast began Regular colour TV broadcast began TV game (Pong) was introduced Dennis Jennings introduced TCP/IP protocols Internet became available to private
80
Old Media vs. vs New Media

The internet is this big, huge hurricane. The only constant in that storm is the customers. y , Jeffrey Bezos, at interview with Businessweek, 16th Sept 1999. New media are those media only doing some key things better than their
predecessors.
The expanding capability of New media enlarged the ways marketers can communicate with customers. However, New media also has their own , weaknesses as well as advantages. What is the weaknesses of Internet?
81
Story-Telling
Three models of asserting expectations about the future based on personal experiences:
Familiarity, Confidence and Trust
Relationship between Risk and Brand Developing perceptions of trust in symbolic brands involves the development of a consumerbrand relationship based largely on personal experience with the Brand. This requires the brand to engage in two-way communications with consumers in building a sense of intimacy tell a story
Every brand needs to tell a story. People love a great story, and the best storytellers have an uncanny ability to forge a personal, emotional bond with their audience. The experience of enjoying a good story is a powerful one that pulls in all of our senses so that we feel as if we ourselves are actually living the story.
82
Stories helped shape the identity of any entity, gave it values and boundaries and helped established its reputation among rivals
Who we are What we stand for
The American Dream is a classic example of a man, who, by working hard goes rags to riches and fulfils his dream. dream It continues to seduce people from all over the world who continue to head for America in search of happiness.
83
Four elements of Story-Telling

Message
Story-telling is about using stories to communicate messages that reflect positively on the brand. A clearly-defined message is necessary Among storytellers the central message or storytellers, message, premise of the story, is an ideological or moral statement that works as a central theme throughout the story. Try to stick to one message per story. If you want to communicate more than that, you need to prioritise.
Conflict
Too much harmony and not enough conflict makes for a story that is about as exciting as watching paint dry. Conflict is the driving force of a good story. No story conflict, no story. It lies in human nature. Any storytellers get our message across through conflict and its resolution. The greater the conflict the more dramatic the story will be. However, the conflict should not get so over-thetop that it becomes confusing.
84
Character
Although conflict marks the turning point in the story, but in order for this conflict to play out, you need a cast of interacting and compelling characters. The classic fairly-tale is build on a fixed structure when each character has a specific role to play in the story, and each person supplements each other and forms an active part of the story. This classic structure (Hero+Supporter+Adversary= Goal+Benefactor+Beneficiary) can be found in storytelling traditions throughout the Western world.
Plot
Once message, conflict and cast of characters are all in place, it is time to think about how story should progress. The flow of the story and its events are vital to the audiences experience. It must have a precise structure to propel it forward and maintain audience interest. Generally speaking a traditional story can be segmented into three parts: Beginning, Middle and End.
85
Legal Protection of Brand

Trademark is a distinctive sign or indicator used by an entity to identify that the products to users with which the trademark appears originate from a unique source, and to distinguish its products from those of other entities. A trademark is designated by the following symbols:
- for an unregistered trademark used to brand goods SM - for an unregistered service mark used to brand goods - for a registered trademark
86
What a Trademark covers

Word Marks Combination of Characters Combination of Numbers Words written in a certain style Logo/Slogan/Colour L /Sl /C l Layout on Packaging/Packaging Design Product Design Gesture Trademark Soundmark Scent Trademark
Trademark Infringement
Generally speaking, there are 3 types of Trademark Infringements:
Identical Trademark for the same type of products; Similar Trademark for similar products; Completely Different Products
87
In mainland China, Trademark Infringements are identified as (http://baike.baidu.com/view/535233.htm?fr=ala0_1):

88
Review of Lecture Seven
89
Instruments of Brand Strategy

A product conforming to certain quality standards A legally protected brand name and g brand sign A legally protected design Brand value-enhancing marketing communication
Single Brand Strategy - Line Extension

For a well established brand, line extension is a handy way in market penetration:
Vertical Extension introduction of new product variants on the same price dimension Horizontal Extension - introduction of new variants which differ from each other on price dimension
Objectives of line extension might be offensive-, defensive- or rejuvenation-oriented. What are disadvantages of a Single Brand Strategy?
90
Line Extension over Product Life Cycle

C B
Turnover
Profit Time
Introduction
Growth
Mature
Decline
Adoption of Innovations
34% Early majority 34% Late majority
2.5% 2 5% Innovators
13.5% 13 % Early adopters
16% Laggards
Time of adoption innovations

91
Environment of Brand Management

General Public
Legal/Political Company Economic
Suppliers
Competitors Social/Cultural
Intermediaries
Customers
MicroEnvironments Macro-
Technological/ Natural
Advanced Diploma in Marketing/Marketing and BrandEnvironments Management Introduction to Branding
Competitive Forces of Michael Porter

Suppliers
Supply Chain Co-operation Direct competitors Innovation Cost Control Branding
Retailer
Segmentation Targeting Relationship
Positioning
Imitatory substitutes
Customers/ Consumers
Source: Based on Porter (1985)s Competition Model
92
Three Generic Strategies of Competition

According to Porter, three generic strategies are:
Firm Infrastructure Human Resources Technology Development Procurement Store Location Marketing Store and and Operation Design Promotion
Supply Chain
Service
Cost Leadership, Differentiation, Differentiation Focus.
Source: Based on Porter (1985)s Value Chain Model
Multi Brand Strategy Brand Extension

Product Management vs. Brand Management vs. Category Management Advantages of Category Management: g g y g
Stimulate internal competition towards maximum achievement Develop a balanced portfolio of brands Keep cannibalisation between brands minimal
93
Advantages of handling a portfolio of brands (Barwise & Robertson, 1992):

Consumers can make a choice among offerings of a single organisation It can benefit from economies of scale Exploitation of multi-brands can result in certain strategic advantages (e.g. barrier of entrance for competitors) Exploitation of multi-brands gives a larger degree of risk spread Synergy effects from competition among internal brands Internal competition provides a more solid basis for brand extension
Brands in a Brand Portfolio

Point of Connection of AB InBevs 200+ beer brands over the world:
TypeofBrand BastionBrand PrestigeBrand FlankerBrand FighterBrand
Sample
Financial Inputs Strategic Importance Management Attention
High High High
High Moderate Moderate
low High Moderate
Moderate High low
94
Brand Portfolio of Accor Group:
Source: http://www.accor.com Advanced Diploma in Marketing/Marketing and Brand Management Introduction to Branding
Strategies for building a Brand Portfolio

A company can select combination of different strategies upon market environment: Market Position Moderate High
Strategy Brand Development Brand Acquisition BrandAlliance
Speed Slow Quick
Investment
Moderate High Low

Moderate Low
95
Rationalisation of Brand Portfolio

Backgrounds of Rationalisation of Brand Portfolio since the 1990s:
After consolidation in different market segments, value of a lesser-tier brand diminishes; Brand building is becoming more expensive; Pressure from different stakeholders
Financial evaluation of performance of Brands vs. Strategic objectives of Brands
BCG Growth-Share Matrix

20%
Star
Question Mark
C
Growth Rate
10%
B D
Cashcow
A
Dog
F G
10X
0.1X
Comparative Market Share

96
International Aspects of
Brand Portfolio Management
Motives for International Brand Strategy
Export (Trading) vs. global marketing development For example: P&G operation and Coca-Cola operations in Japan
Standardisation vs. Adaptation

Diverging Process and Converging Process
A game of Speed in international marketplace

97
Review of Lecture Eight
98
Extension Strategy
Flagship Product vs. Extended Products Reasons for Extension Strategy
Rate of success of a new brand is low; Marketing costs of a new brand is high; g g ; Average marketing communication investments will be lowered; Launching costs of new products is lower; Quicker launching, rejuvenation of mature brands and risk aversion
Critical Success Factors for Extension:

Perceived performance of extended must be consistent with flagship brand No conflict of Psychosocial meaning among flagship brand and extended brands g p The higher the Brand-name awareness of flagship brand, the higher the chance of success of extended brands
Besides, product relatedness and similarity of target groups also affect success of extended brands
99
Six applications of Extension Strategy

Uses of an unique features of flagship brand into extended brands Offer of same product in another form Offer of complementary products Offer of substitute products Application of unique expertise into other product category Uses of brand name/reputation when penetrating into other product category (Source: Riezebos, 2005:221)
Hazards related to Extension Strategy

Cannibalisation
Sales of Flagship Brand being affected
No Transfer of Associations
Extended Product becomes irrelevant in the market
Negative Evaluation of extended product

Negative impact onto Flagship Brand
Brand Dilution
USP of Flagship Brand diminishes
100
Strong Company Endorsement

Advantages
Cheaper to introduce new brands Quicker to introduce new brands Cumulative development of Brand Equity
Disadvantages
High risk exposure, if one brand fails Lack of freedom to create a new brand Reduces opportunity for diversification
Weak Company Endorsement

Advantages
Allows freedom for creating new brands More opportunity for diversification Reduced risk, if new brand fails then little harm t existing b d h to i ti brands
Disadvantages
Expensive to introduce new brands Takes time to build new brand awareness No cumulative development of brand equity
101
Brand Managers Best Card

A Brand manager can choose from three strategies when launching a new product:
Extension Strategy new product is launched under an existing brand name Endorsement Strategy new product is launched under a new brand name and with endorsement from flagship brand Multi-Brand Strategy new product is launched under a brand new brand
Evaluation Criteria: Fit with existing brand; Marketing Budget; Rate of Success and Negative Spill-over
When facing Crisis

A complaint can probably look at being the last chance given by a real customer; and a crisis is the last chance for company to make a change for the better. When reviewing a crisis, company needs to investigate root causes of the crisis are due t i ti t t f th i i d to intrinsic attributes of the product (i.e. product tinkering or product tampering is necessary) or because of wanted states of extrinsic attributes (i.e. marketing communication is the key).
102
Case Study: Johnson & Johnson and Tylenol

In 1982, J&Js Tylenol accounted for 35% in USs OTC analgesic (and 15% of NCBA of J&J). One individual succeeded in lacing the drug with cyanide. Seven people died as a result and public associated Tylenol as poisonous. J&J recalled all Tylenol from the market and tampered packaging for contamination-proof. Despite fall in sales and costs involved in recall and improvement, J&J won praise for the quick action, and recovered 70% of its market share.
Crisis Management
Planning
Creating escalation rules for the organisation Creating a Crisis Team
Incident Response
Making sure organisation can work properly under a crisis Information should be gathered and analyzed b th I f ti h ld b th d d l d by the Crisis Team Command, Control and Communication
Business Continuity
Preparing for Disaster Recovery (Backup) Providing a Word about Evidence Crisis management focuses on long term effect
103
Group Discussion:
When a Brand lose its shines
104
Review of Lecture Nine
105
Importance of Brand to any organisation

Nowadays, Brand is commonly recognised as an important factor determining success of a company, or lifeblood of an organisation. At the same time, the increasing market-to-book value of listed companies indicate that over half of market value of these companies is based on intangible assets:
Brand Equity Organisational factors and technical superiority Industrial factors such as monopolistic rights granted
Among the abovementioned three intangible assets, Brand is regarded as the most important since it is brand-added value contribute to higher top-line of the company (consumers is willing to p pa higher p g price for the p product). ) At the same time, companies with high brand equity can enjoy better position in strategic and management advantages.
106
Brand Equity revisited

Brand Equity can be defined as:
Brand Equity is the extent to which a brand is valuable to the organisation; this value can be manifested in term of financial, strategic and managerial advantages. g g
Components of Brand Equity

Generally speaking, brand-added value determines brand equity. However, other factors such as distribution and penetration of products, and price difference are also affecting brand equity of a product. product Four components of brand equity are known as:
Size of market share (penetration of product) Stability of market share (repeated purchase) Margin/GP of products Right of ownership related to brand elements
107
Brand Monitor
Source: Riezebos, 2005:271
Difficulties in measuring Brand Equity

Although psychometric measures of Brand Equity may be compared, theses measures do not necessarily translate to financial performance easily, due to:
They are relative measures Different types of measures cannot compare with others directly
Furthermore, these measures do not generate a metric that links Brand Equity to financial performance
108
Importance in measuring Brand Equity

By establishing an effective Brand Equity measurement system, it can help the organisation:
Increased effectiveness of marketing organisation and planning ROI tracking Justification for marketing programs, budgets, and value Improved marketing resource allocation Accountability to senior management and BOD
Criteria of good measures of Brand Equity

Similar result should be arrived by different people applying same set of measurement Quantifiable and based on readily available data that can be monitored across brands and product categories Measurements can meet definition of an element of a financial statement A single number, to enable easy tracking and communication Intuitive and credible to senior management Calibrated to include market and competitive effects Allows for comparisons across industries
109
Financial Brand Valuation:

Methods b M th d based on consumer perceptions d ti
Indifference Method
By conducting rounds of testing with consumers on price premium among products, one can decide price premium of each product
Brand/Price Trade-off Method

Consumers have chance in matching price elements and product attributes. At the end, added price of a product can be determined
Dollar Metric Method

Indicating price premium between branded product and no fill product with same attributes

Methods b M th d based on accounting principles d ti i i l
Cost-price approach
Brand value is determined by historic costs invested into the Brand
Market-price approach
Brand value is dete a d a ue s determined by replacement costs ed ep ace e t of brand at market price
Income Approach
By translating incomes (1- historic earnings and future; 2- net cash value) of brand into present value of Brand Equity
110

Comparison of two methods
Method Pros Consumerperceptionsmethod Givesclearinsightintoaddedvalue ofbrand Accountingmethod Bemore'objective'
Perceptionisnotasobjectiveas Costallocationisnotasobjectiveas priceis;anditisdifficulttotranslate expected themintoprice Nobrandstimulationofaddedvalue Replacementcostscannotbe isnotrealisticasconsumersare determinedinsomeproduct willingtopayforthedifferencein category reality Consumerperceptioncanconsider onlyonecomponentsofbrand equityatonce Valuationisdifficultifincomeisnot stable
Cons
Brand Valuation:
InterBrand Approach
InterBrand measure two sets of components:
Earnings attributed to the brand: two year weighted average of the earnings attributed to the brand Brand Strength
Market leadership Brand stability Current market prospect Brand extension possibilities Internationalisation potential Adaptability over time Brand support Legal protection
Brand strength is correlated to P/E ratio, and then is linked to Brand Earnings via historical data
111
Brand Audit
When measuring Brand Equity, one should:
Conducting brand audits
Brand Inventory Brand Exploratory
Developing tracking procedures Designing a brand equity management system

Brand Equity Charters Brand Equity Reports Brand Equity Overseers
A brand audit is a comprehensive examination of a brand involving activities to assess the health of the brand, uncover its sources of equity and suggest ways to improve and leverage that equity A brand audit requires understanding sources of brand equity from the perspective of both the firm and the consumer Specifically, the brand audit consists of two activities:
Brand Inventory Brand Exploratory
112
Brand Inventory
The purpose of the brand inventory is to provide a complete, up-to-date profile of how all the products sold by a company are marketed and branded For each product, the relevant brand elements must be identified, as well as the supporting marketing program. This information should be summarised both visually and verbally
Brand Exploratory
The brand exploratory is research activity designed to identify potential sources of brand equity The brand exploratory provides detailed information as to what consumers think of and feel about the brand To allow a broad range of issues to be covered and also permit those issues to be pursued in depth qualitative in-depth, research techniques are often employed first To provide a more specific assessment of the sources of brand equity, a follow-up quantitative phase is often necessary
113
114
Review of Lecture Ten

Product life cycle analysis Financial analysis Product grid analysis
Analyzing Brand Performance

Research studies Brand Positioning maps
Standardized information services
115
Market Research ABC

Process of conducting market research: Define the problem Define the research objectives j Determine the sources of information Collect the information Analyse the information Present the findings
Market Research: Define the problem

Define the problem:
Where are we? How did we get here? Where should we be? How would we get there?
116
Market Research:
Define the Objectives
Define the research objectives:
Research Objectives must be SMART: Specific Measurable Attainable Realistic Timely
Market Analysis ABC

Some common Strategic Analysis tools are: PEST Analysis SWOT Analysis Competitive Forces Analysis
117
Market Analysis: PEST Analysis

PEST focuses on the political, sociocultural, economic and technological forces at work in the macro-environmental:
What environmental factors are currently affecting the company? Which are the most important? What new factors may be relevant in the future?

Typical Political/Legal factors:
Change of Government Tax Policies Employment Law (minimum wage) Trading Hours R t i ti T di H Restrictions Planning Guidelines Monopoly Legislation Terms of Trade Codes Bargain Offer Regulations Environmental Laws
118

Typical Economic factors:
GNP Trends Regional Economies Disposable Incomes Saving Ratio S i R ti Interest Rates Exchange Rates Fuel Costs Employment Levels National/International Competition

Typical Sociocultural factors:
Environmentalism/Consumerism Changing work patterns Income Distribution Holiday d Leisure Ti H lid and L i Time Execrise/Sport Participation Food Concerns Level of Education Ageing Population Delays in Starting Family
119

Typical Technological factors:
High-Tech products Food processing/presentation Internet/interactive TV Electronic Funds Transfer El t i F d T f Warehouse Technology Greener Vehicles Staellite Tracking International Teleconferencing Security Technologies
Market Analysis: SWOT Analysis

SWOT Analysis:
SWOT Analysis is systematic evaluation of companys strengths and p , weakness. On the top of it, it reviews opportunities and threats within the competitive environment.
120

SWOT Analysis:
Both Strengths and Weaknesses are internal factors illustrating p y g p companys strategic capabilities. Both Opportunities and Threats are external/uncontrollable factors company can respond to, given its particular Strengths and Weakness.

Sample: SWOT Analysis for Wellcome:
1) 2) 3) Largest in numbers of outlets Backed by Jardine Group Excellent buying power 1) 2) 3) Small average store size Low Ad Effectiveness Format Innovation
Strengths
Weaknesses
Opportunities Threats
1) 2) Increasing concentration of mkt Increase of home cooking 1) 2) 3) Popularity of Hi-End retailers Anti-Monopoly Law Ageing population
121
Shopper Analysis
Shoppers are becoming more sophisticated, more educated and more cynical They are increasingly postponing their decisions to the point of purchase They also make more impulse purchases - this is our opportunity They are more interested in the appearance of products they buy If in employment they have high disposable incomes but still need to be wooed The shopping environment is now part of the purchase satisfaction
How Shopper Shops

Attention Span is limited, shoppers cannot scan everything. They Chunk information (5-7max). Selective perception & decision making. A process used by shoppers that sorts and rejects the irrelevant before concentrating on a small number from which to p rchase : Time cons ming hich purchase consuming. Sort procedures, if complex, leads to confusion, frustration and brain overload lock-out. Memory (limited), visual memory is very limited. High density of brands + complex SKUs adds to this limitation.
122
Shoppers use cognitive maps to aid location instore (learned behaviour). Shoppers use colour, movement, large vertical blocks as geographic cues instore. Strong brands are used as signposts to the category. Brand leaders aid shopper location in stores + they are used pp y to identify, provide clarity and give meaning to specific categories (70% chose products via brand leader). Shoppers scan objects around an object they have fixed upon - if relevant they shift their attention. These adjacencies are as relevant between total categories (skin, cosmetics etc), sub categories or even brands within categories. If logical - people cross shop. If illogical people ignore or dont even see.
Summary of the Module: Characteristics of a Strong and Enduring Brand

What is a Brand?
How is it represented in memory
Social knowledge structure How it affects perception and cognition How it is related to the self-concept
Brand equity
Brand is value added to the product or service
123
How do we maximise Brand equity?

By analyzing and manage following factors:
The Brand in the environment (Portfolio) The Brand inside the firm (Drivers) The Brand outside the firm (Marketing Research) ( g )
Drivers and criteria

Organisational (Mission, Story, Values) Brand (Principle, Personality, Associations) These are translated into communications by the marketing department, and lived by the employees of the firm
124
Lecture 12 Group Presentation Po Leung Kuk Community College Campus
Thank you!!
My contact is: ks_chan@ymail.com
125

Introduction To Brand-Lecture Notes

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Introduction To Brand-Lecture Notes

Uploaded by

Copyright:

Available Formats

Advanced Diploma in Marketing Advanced Diploma in Marketing and Brand Management ks Module

Lecture 1 Po Leung Kuk Community College Campus

Advanced Diploma in Marketing/Marketing and Brand Management Introduction to Branding

Copyright Chan Ka Sik 2010. all rights reserved

Objectives of This Module

Advanced Diploma in Marketing/Marketing and Brand Management Introduction to Branding

Copyright Chan Ka Sik 2010. all rights reserved

Structure of This Module

Term-End Examination (60%)

Advanced Diploma in Marketing/Marketing and Brand Management Introduction to Branding

Copyright Chan Ka Sik 2010. all rights reserved

How about you?

5 Whys in Brand Management

Copyright Chan Ka Sik 2010. all rights reserved

Advantages of having a Brand

Advanced Diploma in Marketing/Marketing and Brand Management Introduction to Branding

Copyright Chan Ka Sik 2010. all rights reserved

Advanced Diploma in Marketing/Marketing and Brand Management Introduction to Branding

Copyright Chan Ka Sik 2010. all rights reserved

Advanced Diploma in Marketing/Marketing and Brand Management Introduction to Branding

Copyright Chan Ka Sik 2010. all rights reserved

Copyright Chan Ka Sik 2010. all rights reserved

Advanced Diploma in Marketing/Marketing and Brand Management Introduction to Branding

Copyright Chan Ka Sik 2010. all rights reserved

What is Brand and Brand Management?

Advanced Diploma in Marketing/Marketing and Brand Management Introduction to Branding

Copyright Chan Ka Sik 2010. all rights reserved

Meaning of Brand in Chinese: (http://baike.baidu.com/view/9013.htm?fr=ala0_1_1)

Advanced Diploma in Marketing/Marketing and Brand Management Introduction to Branding

Copyright Chan Ka Sik 2010. all rights reserved

Copyright Chan Ka Sik 2010. all rights reserved

Copyright Chan Ka Sik 2010. all rights reserved

Nike Authentic Athletics Performance

Advanced Diploma in Marketing/Marketing and Brand Management Introduction to Branding

Copyright Chan Ka Sik 2010. all rights reserved

Disney Fun Family Entertainment

Advanced Diploma in Marketing/Marketing and Brand Management Introduction to Branding

Copyright Chan Ka Sik 2010. all rights reserved

How about HKU Space?

Advanced Diploma in Marketing/Marketing and Brand Management Introduction to Branding

Copyright Chan Ka Sik 2010. all rights reserved

Advanced Diploma in Marketing/Marketing and Brand Management Introduction to Branding

Copyright Chan Ka Sik 2010. all rights reserved

Copyright Chan Ka Sik 2010. all rights reserved

History and Development of Brand Management

Advanced Diploma in Marketing/Marketing and Brand Management Introduction to Branding

Copyright Chan Ka Sik 2010. all rights reserved

Advanced Diploma in Marketing/Marketing and Brand Management Introduction to Branding

Copyright Chan Ka Sik 2010. all rights reserved

Advanced Diploma in Marketing/Marketing and Brand Management Introduction to Branding

Copyright Chan Ka Sik 2010. all rights reserved

Advanced Diploma in Marketing/Marketing and Brand Management Introduction to Branding

Copyright Chan Ka Sik 2010. all rights reserved

Rivalry between Production and Distribution:

Procuremen t of Raw Materails

Manufacturing of Finished Products

Branding of Finished Products

Procuremen t of Raw Materails

Merchandising of Finished Products

Manufacturing and Supply Chain Management Systems

Merchandising of Finished Products

Sales Promotion of Finished Products