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Integrated Marketing

Session 6

Brand Equity, Brand Strategy

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What we’ll cover today

What makes a product idea fly?

How are consumers delineated? And how does that help you market?

Brand Equity

Strategic Marketing Plan

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Igniting Interest in an Idea

According to author Maxwell Gladwell (Blink, The Tipping point) three factors spark interest in an idea:

Law of the Few -three types of people make ideas take off

Mavens - knowledgeable at all things

Connectors - know and communicate with many people

Salesmen - possess persuasive power

2. Stickiness - An idea must be expressed that motivates people to act - the nature of your customers to continue to use your products or services, to “stick” with you versus going to your competitor

3. Power of Context- Important influencers who spread ideas able to organize communities around it. Examples:

Legos Ambassador program - targets most enthusiastic for feedback

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How are consumers defined?

Initiator - Early adapters

Influencer - Alphas start trends

Decider - Part of group that are define value of prodct adn help to lead to its success

Buyer -”Bees: - Hyper-devoted customers who live to spread the word

Users -Part of mainstream consumers buying the brand

Different marketing campaigns can be targeted to each type of consumer

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Identifying Customers & Prospects

Data Mining

The most valuable information about customers or prospects is what they have done in the past.

Internal Data Sources

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Creating Brand Equity

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It Starts with the Brand

Brand Positioning - Act of designing a company’s offering and image to occupy a distinctive place in minds of target market

Helps guide marketing strategy by clarifying brand essence, identifying goals it wants consumer to achieve, showing how it done in a unique way

Brand Role - promise that sets consumer expectations. In return for loyalty, firm promises positive experience, reduced risk, deliverable benefits (McDonald’s wrapper versus plain for veggies delivered to children

Strong Brand - Results in better earnings on Wall Street

Branding - The process of endowing products and services with power of the brand

Need to convince consumers that there are meaningful differences

Enables innovation and brand extensions

Needs to create brand value

Brand Personality - Human traits ascribed to brand

Sincerity, excitement, competence, ruggedness (Brands?)

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Brand Equity

Brand equity refers to a value premium - how consumers think, feel and act with a product with a recognizable name, when compared to a generic equivalent. It also commands higher price, more market share and profitability.

Companies can create brand equity by making products

Memorable

Easily recognizable

Superior in quality and reliability

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Name Big or small brands with brand Equity - Uniglo - Made for All - doesn’t chase trends. Fits into everyday life.

Gatorade - 5 decades, Mercedes, Sony, Nike, Pure Leaf Teas, Taste Nirvana Coconut water, Tumblr, Instagram, J.Crew

Brand Equity

Brand Equity is a set of brand assets and liabilities linked to a brand name and symbol, which add to or subtract from value provided by a product or service*

Four dimensions include:

Brand awareness

Brand loyalty

Brand associations

Perceived quality

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Breaking Down Brand Equity

Consumer Perception - Brand equity is built by consumer perception and response, which includes both knowledge and experience with a brand and its products. Customer Brand Equity is the differential effect brand knowledge and beliefs has on response by consumer

Positive effect - the organization, its products and its financials can benefit and when brand identified consumer reacts more favorably - earn greater revenue

Negative effect - Brand provides no consumer response so brand become commodity and is bought based on lower price.

Resulting value -. If the effect is positive, tangible value is realized as increases in revenue or profits and intangible value is realized as marketing as awareness or goodwill. If the effects are negative, the tangible or intangible value is also negative.

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For example, if consumers are willing to pay more for a generic product than for a branded one, the brand is said to have negative brand equity. This might happen if a company has a major product recall or causes a widely publicized environmental disaster.

Brand Equity Benefits

Benefits of Customer-Based Brand Equity

Enjoy greater brand loyalty, usage and affinity

Command larger price premiums

Receive greater trade communication efficiency and effectiveness

Yield licensing opportunities

Support brand extensions

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Brand Resonance

Brand Resonance refers to the relationship that a consumer has with the product and how well he can relate with it.

The resonance is the intensity of customer’s psychological connection with the brand and the randomness to recall the brand in different consumption situations.

Meaning

Brand resonance is characterized by strong connections between the consumer and the brand. Brands with strong resonance benefit from increased customer loyalty and decreased vulnerability to competitive marketing actions. The challenge for the brand is to ensure that the customer has the right experiences to create the right brand knowledge.

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Brand Resonance

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Brand Resonance

The first level of the pyramid deals with establishing the identity of the brand

Salience refers to how easily or often a consumer thinks of the brand, especially at the right place and right time.

Awareness campaigns not only build depth (ensuring that a brand will be remembered and the ease with which it is) but also breadth (the range of situations in which the brand comes to mind as something that should be purchased or used).

The second layer of the pyramid deals with giving meaning to the brand

Brand performance and Brand imagery. Brand performance is the way the product or service attempts to meet the consumer’s functional needs. Brand performance also has a major influence on how consumers experience a brand as well as what the brand owner and others say about the brand.

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Brand Resonance

Delivering a product or service that meets and, hopefully, exceeds consumer needs and wants is a prerequisite for successful brand building.

Five areas need to be communicated for brand building:

product reliability,

durability and serviceability

service effectiveness, efficiency and empathy;

style and design

Price

Brand imagery is the intangible aspects of a brand that fits consumers demographic profile (such as age or income) or has psychological appeal -matches their outlook on life (conservative, traditional, liberal, creative,etc). Brand imagery is also formed by associations of usage (at work or home) or via personality traits (honest, lively, competent, rugged, etc).

Advertising, word-of-mouth recommendations and a consumer’s own experience

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BUILDING Brand Equity

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BUILDING Brand Equity

Develop brand elements/identity

Name, URLs, logos, symbols, characters, spokespeople, slogans, jingles, packages, signage (Microsoft Search - Bing)

Define product or service and all accompanying marketing activities (QR codes, on-line, social, instagram, Augmented reality, AI, new packaging)

LInk it to other entity to develop association-New Zealand Vodka)

Brand Elements and can be trademarked - differentiate the brand (NIKE - Just Do it)

Snackwell (consumers expect healthy snack)

Panasonic Toughbook (consumers expect durable)

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BUILDING Brand Equity

Six criteria for choosing brand elements e.g.

Memorable

Meaningful

Likable

Transferable

Adaptable

Protectable

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MEASURING Brand Equity

Brand Audit should be conducted annually for marketing plans or direction shift. Provides insights into consumers, brands and their relationship

Assess the health of the brand

Uncover sources of brand equity

How to improve and leverage brand equity

Brand Tracking Studies

Collect qualitative data from consumers to provide baseline information on how brands and marketing programs are performing

Helps facilitate day to day decision making based on how brand value is being created

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MEASURING Brand Equity

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MANAGING Brand Equity

Brand Reinforcement

Manage so brand value cannot depreciate (Nokia - it was a?, Sears - it sold?)

Constantly improve brand and change with the times as did Campbell’s Soups, Coca Cola, Heinz

Consistently convey core benefits, production of superior products, unique brand associations

Brand Revitalization

Overhaul of product line-up as needed (Cadillac)

Breakthrough marketing

Are positive brand equity associations changing - do you need to change?

Harley Davidson - living up to expectations with improved product performance

Old Spice - modernized with product innovation and tongue-in-cheek communications spotlighting brand experience

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Brand Development Strategy - 10 Steps

Align with overall business strategy - related to brand, distribution, selling platform, marketing

Identify target audience - what is your focus

Research your target audience - understand perspectives and priorities

Develop brand positioning

Develop messaging strategy - message/narratives for all of your audiences (, employees, referral sources, influencers, consumers, stockholders

Develop name, logo and tagline

Develop content marketing strategy - relates to all content on digital platforms

Develop your website -= port of entry for many consumers

Build your marketing tool kit

Implement, track and adjust

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Devising a Brand Development Strategy

Developing a Brand Strategy is key to putting forth a unique profile that stands out above the competition.

Brand Elements - With the right tone, personality, colors, and actions, make it easily identifiable by your target audience and more appealing to potential customers.

Brand Differentiation - Your brand should be different and personal, something that conveys a specific message. While there are hundreds of businesses out there that share products and services, their messaging is what differs e.g. Starbucks and Dunkin’ Donuts, for example. Similar products but distinctive Brand Strategy

Brand Strategy can center around a number of aspects of your business, such as

• Your mission statement

• A core value shared by your customers

• A common and unique characteristic of your target audience

• The specific problem you solve

• The unique way you solve a common problem

• The end goal of your customers

brand elements

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Let’s say you own a pizzeria. There are lots of pizzerias out there, but yours is unique. Why? You serve authentic Italian brick-oven pizza in a setting that takes your customers into the heart of Sicily. Sure, you sell pizza like many others, but your purpose is to deliver an authentic Italian experience. So what can you offer to your customers that they can’t get elsewhere or from your competitors?

Devising a Branding Strategy

Name, Logo, Tagline and how it is consistent and integrated into all; packaging, web design, signage, advertising

The design and colors of your logo should support your brand strategy. Color is a crucial part of any good brand, and for good reason. Research has shown that up to 90% of snap judgments customers make about products are based on color alone. Why? Different colors elicit different ideas and emotions that you can leverage to better establish your brand.

Common colors and the “vibes” that you may experience from them:

• Red: passion, excitement, boldness (but also danger and warning, so be careful with this one!)

• Yellow: warmth, brightness, optimism

• Purple: royalty, creativity, approachability

• Blue: dependability, trust, also the most commonly used color for branding

• Green: growth, health, safety

• Black and white: simplicity, class, confidence

The colors that make up your logo and your website design have significant impact on your audience. Logo should be resizable so that you can upload it to any platform and apply it to any piece of swag for increased exposure and brand recognition.

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Branding Decisions

Three general strategies:

Individual or family brand names; General Mills - Bisquick, Gold Medal Flour, Nature Valley

Corporate umbrella or Company brand name; Campbell Soups, Heinz, GE

Sub-brand names - Kellogg’s Rice Krispies, Kellogg’s Corn Flakes

Brand Portfolio - Starwood Hotels; Sheraton, Four Points by Sheraton, W Hotel, Westin Hotel

Flagship brands - top brand of company - Budweiser

Flankers - fighter brands - Protects Flagship brand - Busch Bavarian - priced and marketed to protect Flagship

Cash Cows -Don’t lose customers that won’t convert to another brand

Low-end entry level -Attract to brand franchise (Toyota Scion - attract those in 30’s)

High-end prestige- Add prestige to teh portfolio - Chevy’s Corvette

Brand extensions (example Dunkin Donuts coffee in supermarkets)

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21st Century Branding

Treat brands as assets- align brand and business strategy

Show payoff of brand building

Recognize richness of brand - go beyond 3 word phrase

Get beyond functional to emotional benefits - create a brand personality

People, programs, values, strategies, heritage - link to associations

Look to role models and imitate

Understand brand relationship and right degree of separation of new offerings

Look for branded differentiation

Use branded energizers - associate with celebrity or program unique to your brand

Win brand relevance battle with competitors - make them irrelevant

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