strategic brand mangement

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SBMWeek1-2.pptx

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What is Branding?

SBM - Week 1

Chelsea Bailey

The Module

To consider the role and meaning of branding in consumer society.

Wide ranging perspectives on brands from strategies, to symbolism to community.

Combination of lectures and tutorials

Tutorials are to be led by students and rely on reading and working with others in order to make them work!!!

1 hour lecture followed by a 1 hour tutorial

Module guide, assignment details and lecture slides will be posted on CANVAS

Objectives - Lecture One

1) To introduce the concept of the brand

2) To look at the various dimensions of the brand

3) To consider the ‘meaning’ of the brand

Brands and History

Branding more than 2000 years old.

Cattle in history and today

1300 BC – Pottery and Porcelain

1200 AD – Goldsmiths/Silversmiths

Between1600-1800AD Prisoners/Slaves

1800’s Patented Medicines and Tonics

Earliest form of brands tattoos

Showed and still show belonging to a tribe or ownership.

Denote position in the tribe.

Differentiate one tribe from another

What is a Brand?

A successful brand is an identifiable product, service, person or place augmented in such a way that the buyer or user perceives relevant unique added values which match their needs most closely. Furthermore, its success results from being able to sustain these added values in the face of competition.

Chernatony and MacDonald (2002)

The Brand

‘Simply a collection of perceptions in the mind of the consumer...At its simplest, a brand is a recognisable and trustworthy badge of origin, and also a promise of performance’ (Feldwick, 1991)

‘The core meaning of the modern corporation’ (Klein, 2000)

‘The power of a brand derives from a curious mixture of how it performs and what it stands for. When a brand gets the mix right it makes us, the people who buy it, feel that it adds something to our idea of ourselves’ (Olins, 2003)

The Branding Process and Historical Evolution

The brand as a sign of ownership (manufacturers or distributors – i.e. producers or sellers – Marks and Spencer)

The brands as a differentiating device – Offer real benefits that mark them out from competition

Brands as functional device – i.e. guarantee consistent quality to consumers (SEAT cars – functional but good value for money)

Brands as symbolic – brands value is beyond the functional – logo, name, brand personality, desire self and match to this (perfume, clothes, beer, wine)

Functions

Generic – The commodity form that meets the buyers basic needs(i.e. a car that gets to a destination safely)

Expected – That the car will come with customer service and after service

Augmented – That the brand exceeds the functional needs and takes it to the level of the emotional (i.e., the car represents status and this is used in communication)

Potential – To lift it to the highest emotional level where the brand has personal meaning

IMPORTANT – the brand must have genuine added value. The functional components are easy to copy.

Brands as risk avoiders – when new brands come to the market the job is to reassure your target that they do not want to take the risk.

Brands as a shorthand device – convey a wealth of information symbolically

Brands as a legal device – counterfeits

Brands as a strategic device – look to augment, carefully position, understand target markets, research target markets, add value, communicate effectively

The Brand

Conceived inside an organisation (identity)

Vision, mission, associated values, firm’s culture and heritage – all contained in a brand guide (Burberry and brand contamination).

Naming policy, functional capability, service, risk reducer, legal, personality, crisp communicator

Success decided by consumer’s perceptions (image)

Confidence in brand

rational (performance)

emotional (psycho-social match)

Marketing is a process for:

Defining markets in terms of needs

Quantifying the needs of the customer groups (segments) within these markets-homogenous/heterogeneous

Putting together the value propositions to meet these needs

Communicating these value propositions to people in the organisation responsible for delivering them

Playing an appropriate part in delivering these value propositions (usually only communications)

Monitoring the value actually delivered

( McDonald, 2007 )

Characteristics

Performance

Authenticity (what about fake brands?)

Extent to which it can be Replicated

Reassurance

Transformation of experience

Differentiation and ‘Brand Personality’

Social dimensions – prestige for consumers

Brand Elements

Naming

Packaging and merchandising

Retail store/interiors branding

(perfume wars – brand protection)

Graphics/Advertising

Slogans/jingles

The Growing Importance of Intangible Assets

In 2006, Proctor and Gamble paid £31 billion for Gillette

Only £4 billion was accounted for by tangible assets:

(David Haigh, Brand Finance, Marketing Magazine,1st April 2005)

Why would P&G pay so much for an intangible?

What is a product?

Product or a service is a problem solver

Means by which the organization achieves its own objectives

Levitt (1960) and ¼ inch drills

What customers want to buy is 1/4-inch holes

Drill itself is only a means to an end

Think of business in terms of customer benefits rather than physical products

Augmented Product Model

INTANGIBLES & SERVICES account for 80% of added value / 20% of cost

Example

http:// evoque.landrover.com/gb?gclid=CPvuh4_QjLwCFafnwgodJU4AsQ

BUT BRANDS GO BEYOND THE ORANISATION……

A relationship with the customer

Personified either by the company’s name or by the brand name on the product itself

IBM, BMW and Shell are company brand names

Persil, Coca-Cola, Fosters Lager, Dulux Paint and Castrol GTX are product brand names

Brand vs. Commodity Markets

Depicts the process of decay from brand to commodity

Distinctive brand values are eroded over time

Consequent reduction in the ability to command a premium price

Difference between brand and a commodity?

‘Added values’

Additional attributes or intangibles that the customer perceives to be embodied in the product

Thus, a product with a strong brand name is worth more than just the sum of its component parts i.e. Coca-Cola

Successful brand building is required-to entice customers to buy

Although essentially just a soft drinks product, Coca-Cola the drink is eclipsed by the sheer might of Coca-Cola the brand. This phenomenon is best summed up by the following quote from a Coca-Cola executive:

‘If Coca-Cola were to lose all of its production-related assets in a disaster, the company would survive. By contrast, if all consumers were to have a sudden lapse of memory and forget everything related to Coca-Cola, the company would go out of business.’

Which of the following brands do you recognise and what do they mean to you?

Brands Define the Self

Brands Extend the Self

Brands Denote a Lifestyle

Brands are Aspirational

Global recognition

Global Brands

Why?

Branding: Advantages

Consumer

Risk reduction

Association

Continuation

Position

Retailer

Memorable

Reliability

Quality

Loyalty

Brands and Meaning

Closely linked to consumer behaviour.

Today the brand is becoming more important than the product itself.

Brands have a life

Brands have personalities

Brands can be social

Brands can be personal

The difference between successful and unsuccessful brands

Successful brand building

Helps profitability by adding values that entice customers

Base for expansion (products, variants, countries etc.)

Protects companies against the power of intermediaries

Transforms organizations from bureaucracies to ones that are attractive to work for and deal with

Superior profit and market performance (PIMS)

A successful brand…

Name i.e. Coca-Cola, IBM, Tesco

Symbol or design (or some combination)

Identifies the ‘product’ of an organization as having a sustainable competitive advantage

Conclusion

Brands are beyond the tangible functional product

Brands may serve many purposes

Brands have cultural meaning

Brands can cross cultures if managed carefully

Branding is key to competitive survival

Consider

How many of the brands pictured in this lecture do you recognise?

What do they represent to you?

If the brand were a person what would they be like?

Describe them in minute detail.

Consider how brands can be used to create, reinforce or maintain identity