Marketing Management 3 assigment 750-900 words each assigment

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Brands

7. 1

What Is a Brand?

• Brand • Portfolio of qualities associated with a name

• Brands immediately invoke certain images

• Brands have value beyond the benefits of the product

Brand Associations

• Marketers control some brand associations

• Product shape & packaging • Logos, symbols & colors • Jingles & slogans • Spokespeople, etc.

• Marketers should control what they can

• Marketers do not control all associations • Personal memories about brands, etc.

Brand Name

• A brand starts with a name • Some names immediately convey

information • e.g., Geek Squad

• Some names suggest their benefits • e.g., Optical4less

• Some names are those of their founder • e.g., Trump

• Marketers should choose brand names that convey brand information

Brand Names, Logos and Color

• Brand name meaning is built over time through communications with customers

• Brand names and logos are a shorthand way to communicate with customers • This is who we are & what we look like

• Brand colors and fonts visually engage customers

• e.g., The New York Times and Google

Brand Name and Logos

• Some logos combine a brand name with a symbol meant to suggest the brand’s value proposition

Discussion Question

1. Should a brand name be adapted over time?

2. If so when and why?

Why Brand?

• Customer Benefits of Branding • Brands identify company ownership

• Brands allow for predictable quality; thus, decreasing risk

• Brands make customer decision making easier

• Brands serve as status symbols

Why Brand?

• Company Benefits of Branding • Brands induce loyalty - increasing repeat

purchasing • Brands allow for premium prices • Brands allow a single firm to pursue multiple

targets

Hierarchy of Brand Associations

1. Concrete product attributes: 40 mpg

2. Abstract product benefits: Save money

3. Abstract emotional benefits: Feel good

• Attributes are easy to communicate and easy for competitors to copy

• Benefits are abstract; harder to create and communicate, but more meaningful

Brands Serve Social Functions

• Brands helps customers achieve their ideal self

• e.g., Teenagers are “cool” due to Nike shoes

• Brands become the focal point of bonding through brand communities

• e.g., Harley-Davidson

Brand Personalities

• Brand can have a distinct personality

• Personalities capture 1. Specific information about the brand

2. Holistic perceptions about the brand

Experiencing Brands

• Consumers experience brands • Affectively, intellectually and behaviorally

Brand Communities

• Brand communities • Customers who connect with like-minded

customers

• They have extreme attachments to brands • e.g., iPhone, Lego, Harley-Davidson

• Marketers should try to build & capitalize on these communities

Branding Strategies

• Umbrella approach • Attaching the same brand name to products

• Subsequent product introductions are easier for the customer to understand and accept

• Higher initial awareness levels

• Builds stronger brand associations

• Stronger financial outcomes – e.g., Disney movies, parks, clothing, etc.

Branding Strategies

• House of brands approach • Introducing a new brand name for every

product line • Any problems with one brand should not

influence the other brands

• Brand images do not need to be consistent which allows for targeting multiple segments

• Requires more advertising expense – e.g., Procter & Gamble had 80 major brands

Brand Extensions

• Brand extensions • Leverages the brand’s good name to get

customers to buy something new

• Line extensions • Increase depth - new product within a line

– e.g., Dannon regular, low cal, vanilla, etc.

• Product category extensions • Increase breadth - new product line

– e.g., Arm & Hammer toothpaste, deodorant, kitty litter, etc.

Co-branding

• Co-branding • Two companies form a joint venture to

create a product from both companies – e.g., Kevlar Body Armor vests

• Ingredient branding • Form of co-branding in which one company

adds value to a host product • One company dominates over the other

– e.g., Brembo brakes are in Aston Martins

Co-branding

• Co-branding works well when a company is introducing a new product attribute

• e.g., Adding cough medicine to candy

• Self-branding • Branding own ingredient to differentiate its

quality from competitors • Works better when tweaking a minor

attribute • e.g., Tide’s “EverFresh” scent

Global Brands

• Global brand • 30% of the revenues from other countries

• Global strategies • Glocalization

• Different names in different countries – “Manufacturer globally, brand locally”

• Global brands • Same brand in all countries

• More advantageous – e.g., Amazon.co.uk

Store Brands

• Private label brands • Good for price sensitive markets

• Can be more of a “me-too” product offering

• Or can be premium private label – e.g., Costco’s “Kirkland Signature”

• Retailer can offer decent quality for lower prices due to reduced advertising costs

• Manufacturers are launching 2nd labels to compete with store brands

Brand Equity

• Brand Equity • The worth of a brand

• Measurement approaches • Determining the price premium of brand

• “How much are you willing to pay for gas at Shell?” vs.

• “How much are you willing to pay at a local station?”

• Comparing branded and unbranded • “How much do you like this $799 Sony flat screen with

screen-within-a-screen?” vs.

• “How much do you like this $799 unknown brand flat screen sharing the same features?”

Brand Equity

• Measurement approaches, cont. • Interbrand: assess the value of a firm,

subtract its physical and financial assets • Brand contribution index varies by product

category: high for cologne, lower for retailers

Top Brands

Managerial Recap

• Brands are promises to customers; they include names, logos, colors and fonts

• Brands signal information to customers about predictability • Anticipated reliability and expected quality

• Brands can command higher prices because they offset risk

Managerial Recap

• Brand associations are cognitive and emotional

• Companies can employ umbrella branding or house of brand strategies

• Brand valuation is the measure of the worth of brand