B Brand d Management M t

Lecture # 3

Imran Akram

Q ick Re Quick Revision ision

Building a Strong Brand
The Four Steps of Brand Building

Customer Based Brand Equity looks a brand as a sequence of f Steps.. St

z

Each of which is contingent on successfully achieving the objective j of p previous one

Th Four The F Steps St of f Brand B d Building B ildi

1.

2 2.

3 3.

4.

Ensure identification of the brand with customers and an association of f the brand in customers minds Establish the totality of brand meaning in the minds of consumers Elicit the proper customer responses to the brand identification and brand meaning Convert brand response to create an intense, active loyalty relationship between customers and the brand

Four Questions Customers ask about Brands

1 1. 2. 3.

4.

Who are you? (brand identity) What are you? (brand meaning) What about you? What do I think or feel about you? (brand responses) What about you and me? What kind of association and how much of a connection would ld I like lik to t have h with ith you? ? (brand (b d relationships)

CustomerCustomer -Based Brand Equity q y Pyramid y

INTENSE, ACTIVE LOYALTY 4. RELATIONSHIPS = RESONANCE What about you and me?

RATIONAL & EMOTIONAL REACTIONS

3. RESPONSE = JUDGMENTS FEELINGS What about you?

POINTS-OFPARITY & POINTS-OFDIFFERENCE

PERFORMANCE

IMAGERY

2. MEANING = What are you?

DEEP, BROAD DEEP BRAND AWARENESS

SALIENCE

1. IDENTITY = Who are you?

Subdimensions of brand building bl k blocks

Resonance
Loyalty Attachment Community Engagement Quality Q lit Credibility Consideration Superiority
Brand Characteristics & Secondary Features Product Reliability, Durability & Serviceability Service Effectiveness, Efficiency, & Empathy E th Style and Design; Price

4 Brand Relationships (WHAT About You AND ME?)

Judgments

Warmth, W th Fun F Excitement, Security, Social Approval, Self-Respect

F li Feelings
3 Brand Response (WHAT About You?)

Performance

User Profiles Purchase and Usage Situations Personality & Values History Heritage History, Heritage, & Experiences

Imagery
2 Brand Meaning (WHAT Are You?)

Category Identification Needs Satisfied

1 Brand Identity (WHO Are You?)

Salience

Salience Dimensions
z

.. Measures awareness of the brand

Building awareness helps customers understand
1.

Brand Easily recalled or recognized

2.

the product th d t or service i category t i which in hi h b brand d competes

z

3.

which of their needs the brand brand- (through these products)- is designed to satisfy To what extent is the brand top p of the mind- ( (Brand Recall)

The Brand Awareness Pyramid y

Salience Dimensions
To understand brand recall
z

D th & Breadth Depth B dth of f brand b d awareness

The depth of f brand awareness
z

1.

measures how likely it is for a brand element will come to mind and the ease with which it does so. z a brand easily recall has a deeper level of brand awareness

2.
z

The breadth of brand awareness measures

the range of purchase and usage situations in which the brand element comes to mind.

Performance Dimensions
z

Product itself- heart of brand equity q y

z

Designing and delivering a product that satisfies consumer needs and wants is a pre-requisite pre requisite for successful marketing

Brand Performance
z

..How well the product or service meets customers more

f functional ti l needs. d

Five important type of attributes and benefits often underlies the brand performance

P f Performance Dimensions Di i
1 1.
z

Primary characteristics and supplementary features

Essential ingredients- necessary for a product to work
z

Supplementary features- customization, more versatile, personalized usage.

2.
z

P d t reliability, Product li bilit d durability, bilit and d serviceability i bilit

Reliability- measure the consistency of the performance over time & from purchase to purchase Durability- is the expected economic life of the product S Serviceabilityi bilit ease of f repairing i i the th product d t if needed. d d

z z

P f Performance Dimensions Di i
3 3.

Service effectiveness, effectiveness efficiency, efficiency and empathy

z

..How well the brand satisfies customer service requirements ..describes the speed and responsiveness of service ..The extent to which service providers are seen as trusting, caring and having the customers interest in mind.

z z

4. 5.

Style and design Pi Price

I Imagery Dimensions Di i
z

.. the ways in which the brand attempts to meet customer psychological or social needs

refers to Intangible aspects of the brand

User profiles p Purchase and usage situations Personality and values

z z z

Imagery Dimensions
User Imagery g y
Associations of a typical brand user may be based on z Descriptive p demographic g p factors
z z z z

Gender (feminine or masculine association) Age R Race Income

Psychographics factors

I Imagery Dimensions Di i
Usage Imagery
z

Associations of a typical usage situation may be based on the

z z z

time of day, week or year, the location (inside or outside the home), or the type of activity (formal or informal).

F example, For l

Imagery Dimensions
Brand Personality
The set of human characteristics associated with a given brand. Modern Lively Old Fashioned Lively

19

Dimensions of Brand P Personality lit

The FIVE CORE DIMENSIONS OF PERSONALITY

z

Sincerity
z z z z

Down to earth- (family oriented) Honest (Sincere, real, caring, thoughtful) Wholesome (original, genuine, classic) Cheerful (friendly, warm, happy, sentimental) z Examples p Daring g( (trendy, y exciting, g off beat, flashy) y) Spirited (cool, young, lively, adventures) Imaginative (unique, humorous, surprising, artistic, fun) Up-to-date (independent, (independent innovative, innovative aggressive) z Examples

Excitement
z z z z

The FIVE CORE DIMENSIONS OF PERSONALITY

z

Competence
z z z

Reliable (hardworking, efficient, trustworthy, reliable) Intelligent (technical, corporate, serious) Successful (leader (leader, confident confident, influential) z Examples

Sophistication
z z

Upper class (glamorous, good looking, sophisticated) Charming (feminine, smooth, sexy gently) z Examples Outdoorsy (masculine, athletic active, western) Tough (strong, no- nonsense, rugged) z Examples

Ruggedness
z z

I Imagery Dimensions Di i
z

History heritage History, heritage, and experiences

z z

Past Certain Noteworthy Events in Brand History

Judgment Dimension
z

Brand Judgments
z

..are customers personal opinions about and evaluations of the brand

Four types of judgments

1 1. 2. 3. 4.

Brand Quality Brand Credibility B d consideration Brand id ti Brand Superiority

Feelings Dimensions
z

Brand Feelings
z

..are customers emotional responses and reactions to the brand.

Six Important type of feelings

a. b. c c. d. e. e f.

Warmth W th Fun Excitement Security Social Soc a Approval pp o a Self-respect

Resonance Dimensions
z

the extent to which customers feel that they are in sync with the brand
Brand Something Special--Love brand
How Often - Frequency- customers purchase a brand & How Much -Amount of repeat purchases
z

Fellow Brand users or customers

Customer are willing g to invest, , time, , energy, gy, money y or other resources in the brand Customer Brand Ambassador
z

Exchange correspondence / communication with other brand users or

B Brand d Positioning P iti i

z

Is at the heart of the marketing strategy . . . the act of designing the companys offer and image g so that it occupies p a distinct and valued place in the target customers minds.
Philip Kotler

B Brand d Positioning P iti i

z

CBBE Model.. M d l Deciding D idi on a positioning iti i requires

1.

D t Determining i i af frame of f reference f

z

(by identifying the target market & the nature of competition) p ) &

2.

Ideal points-of-parity and points-of-difference brand associations

T Target t Market M k t
z

A market
z

is the set of all actual and potential buyers who have sufficient interest in, , income for, , and access to a product.

Market segmentation
z

divides the market into distinct groups of homogeneous consumers who have similar needs and consumer behavior, and who thus require similar marketing mixes.

Brand Positioning >>

Target Market
z

Consumer Segmentation bases

z

Behavioral
z z z z z

Psychographic
Values, opinions, attitudes, activities, lif t l lifestyle

User status Usage rate Usage occasion Brand loyalty Benefits sought
z

Demographic
z z z z z

Geographic
z z

Income Age Gender Race Family

International Regional

C it i for Criteria f Segmentation S t ti

z z

Identifiability: Can we easily identify the segment? Size: Is there adequate sales potential in the segment? Accessibility: Are specialized distribution outlets and communication media available to reach the segment? Responsiveness: How favorably will the segment respond dt to a tailored t il d marketing k ti program? ?

Brand Positioning >>

Competitive

S Scenario i
z z z z z

For the selected TG who are the other competitors? What is their size and market share? What is their positioning? Is there a unique space that can be occupied by our brand? b d? Their
z z z

Resources Capabilities Likely y intentions risk of new entrants

Chose markets where consumers can be profitably served

Points-of-Parity and Points-of-Difference Points of Difference

z

Points of difference (PODs) Points-of-difference

z

are attributes or benefits that consumers

z z z

strongly associate with a brand brand, positively evaluate, and believe that they y could not find to the same extent with a competitive brand.

Points-of-parity associations (POPs),

z z

Not necessarily unique to the brand be shared with other brands.

Brand Positioning >>

z

Points of Difference

CBBE- Strong, favorable and UNIQUE associations for a brand

z

Either Functional, Performance related consideration

Overall superior quality Low cost provider

Imagery related consideration

1.

2.

POD Similar to the notion of Unique Selling Proposition (USP) Sustainable Competitive Advantage (SCA) z Ability to achieve an advantage in delivering superior value in the market place for a prolonged period of time.

Brand Positioning g >>

z
1.

Points of Parity y

2 types
Category Points of Parity legitimate and credible feature
z z

..exist exist minimally at the generic product level

Makes y your brand at p par with the category g y

2.

Competitive POPs
z

are the association designed to negate PODs of competition

Balanced use of POP and POD

Thank You