Brand Management

Brand Management

Brand Launch and Metrics

Strategic Marketing Process

Situational Analysis

Objectives and Strategies

Design and Implementing the Marketing Mix

Monitoring and Control

Where are we now?

Where do we want to be?

How do we get there?

How do we know when we’ve arrived?

Strategic Analysis

Strategic Options

Strategic Implementation

Keys to Successful Brand Extensions

Brand Concept Resources

Consumers’ needs

Competition

Extension

Fit

Relevance Sustainable Advantage

Keller 2013

Keys to Successful Brand Extensions

Brand Concept Resources

Consumers’ needs

Competition

Extension

Fit

Relevance Sustainable Advantage

(Keller 2013)

The Marketing Mix Elements

• Product – Fits the task target customers want it for. • It should work--and be what the consumers expect to get.

• Place – Product available wherever and whenever target customers find ‘easiest’: Availability (Sharp 2010)

• Price – Offer seen as representing ‘good value for money’ • Does not necessarily mean ‘the cheapest’. • Price is generally perceived as a ‘quality’ (or ‘prestige’) cue

• Promotion - Communication between the seller and target audience to influence attitudes and behaviour.

F3 - Service P’s – People, Physical Environment, Processes. McCarthy (1960)

Product Strategy

• Product/Service is still the primary influencer of consumer experience of the brand • At the heart of a great brand, is a great product • Must focus on both perceived quality and aftermarketing

• Perceived quality: performance, features, conformance qlty, reliability, durability, serviceability, style/design

• Aftermarketing: how do we enhance the product post purchase? Brand communities, user manuals, loyalty programmes?

• Involves tangible and intangible benefits the product embodies

Pricing

• The only revenue generating element of the mix • Price premium among the most important benefits of a strong brand • Pricing strategy can dictate how consumers categorise the price of a

brand (low; medium; high)

• Consumers often rank brands according to price tiers in a category • Often a perceived relationship between price & other factor(s), eg

quality; image

• Within any price tier, is a range of ‘acceptable’ prices, ‘price bands’ within which marketers can price the brand

• Companies can use multiple brands to compete in multiple price bands; this is a crucial benefit of brands

Brand Concept Resources

Consumers’ needs

Competition

Extension

Fit

Relevance Sustainable Advantage

Keller 2013

£

Pricing Strategy

Includes: • The pricing objectives – e.g. market share, revenue,

profit (penetration or skimming) • The pricing method – cost-plus, price matching, or

market value • Product line pricing (e.g. to avoid cannibalisation) • Tactical pricing promotions – rare, often, or never

• Price is often a cue for quality – “you get what you pay for”!

Pricing Strategy

Setting prices to build brand equity • Need a method for setting current prices • Need a policy for choosing the depth, frequency &

duration of promotions & discounts • Main pricing approaches: • Cost-plus (predominantly for ‘commodities’) • Value pricing • Price segmentation (derivative of value pricing) • Everyday Low Pricing (EDLP)

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Place Strategy (channels of distribution)

• Type, number, locations and functions performed are all aspects of Place that impact on brand equity

• Channels may be: • Indirect (independent retailers, dealers, agents) • Direct (eg on-line or company-owned shops) • Mixed (functions duplicated between channels – conflict??) • Hybrid (separate functions [eg sales & service] by separate channels) • Exclusive (One only) • Selective (A few) • Intensive (Lots everywhere)

• In some industries and countries (eg food retailing in mainland Europe), channel ‘house’ brands may dominate manufacturers’ brands • Implications for price, products, 2nd brands, space and promotion??

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Distribution channels & implications for brand equity control

Direct channel: full control

Own channel/franchised channel: strong control

Indirect channels (eg retailers; dealers): weak control (but potential benefit

from association)

Promotion

Think/Cognitive

Feel/Affective/Emotional

Do/Conative

To be persuaded by communication the following must take place

Effect on Brand Equity

Media advertising

Direct response advertising

Mobile

Place advertising

Point of Purchase advertising

Trade promotions

Consumer Promotions

Interactive Event marketing &

Sponsorship

Publicity & Public Relations

Word of Mouth

Personal Selling

• TV (FTA; cable) • Radio • Newspaper • Magazines

• Mail • Telephone • Broadcast media • Print media • Computer-related

• Billboards & posters • Movies, airlines, lounges • Product placement • Point-of-purchase

• Shelf talkers • Aisle markers • Shopping trolley ads • In-store radio/TV

• Trade deals & buying allowances • Point-of-purchase display allowances • Push money • Contests & dealer incentives • Training programmes • Trade shows/exhibitions • Co-operative advertising

• Samples • Coupons • Premiums • Refunds & rebates

• Contests/sweepstakes • Bonus packs • Price-offs/BOGOFs

• Web sites • E-mails • Banner ads • Rich media ads • Search

• Videos • Message Boards & Forums • Chat rooms • Blogs • Facebook • Twitter • YouTube

• SMS & MMS messages • Ads • Location-based services

• Sports • Arts • Entertainment • Fairs & Festivals • Cause-related

Marketing Communications Options

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Promotion

“You have my attention, now what do you want to say?”

Sasha Strauss

Campaign Quality:

1. Clarity – how understandable is the marketing campaign?

2. Relevance - how meaningful is the campaign to customers?

3. Distinctiveness – how unique is the campaign compared with rivals?

4. Consistency – how cohesive and integrated is the campaign?

Keller (2013)

Dropbox Promotion

• Launched in 2008 • TechCrunch 50 • PPC advertising • Traditional PR firm

• The results: • Cost per acquisition =

$388 • Product = $99 • Oops!

• Back to the drawing board

• They noticed that customers were referring friends so • They made referrals easier

through importing emails, sharing link through social,

• They incentivised further sharing

• From 100k users to 4m in 4 months

Marketing Mix • Product • Place • Price • Promotion

• Consumer • Convenience • Cost • Communication

• Solution • Access • Value • Education

(Ettenson, Conrado, and Knowles 2013)Schultz et al (1992)

Brand Launch Measurement

What can we measure?

Customer mindset – includes thoughts, feelings, experiences, images, perceptions, and beliefs

• Awareness – recall and recognize • Associations – strength,

favorability, and uniqueness of

• Attitudes – overall evaluation of satisfaction

• Attachment – how loyal do customers feel

• Activity – extent of use, advocacy, and willingness to seek out information

Financial

• Revenue • Profit • Stock price • Price/earnings multiple • Market capitilisation

• Price premiums • Price elasticity • Market share • Brand expansion response

Brand Equity - Two Perspectives

1. Financial

2. Behavioral and Psychological

• Strength and nature – to develop long-term strategy (Rossenbaum- Elliott et al 2015 pp 161) • Which brands are seen by consumers as the most competitive? • How prominent or salient is a brand in the consumer’s mind relative to

other competing brands? • What are the key dimensions of a brand’s Identity and how do consumers

single it out from competitors?

• Qualitative and Quantitative • Neal and Strauss (2008) suggest that the optimal way of

determining brand equity is by evaluating the price premium that consumers are willing to pay for a branded product or service, compared to an equivalent unbranded product or service

Brand Equity

Brand Loyalty

Brand Awareness

Brand Quality

Brand Associations

Brand Image

Other Brand Assets

Brand Equity

Brand Awareness

Brand Recall

Brand Recognition

Brand Image

Association Types

Association Strength

Association Favorability

Association Uniqueness

Aaker (1997) Keller (1993)

Brand Equity Research - Qualitative

• Qualitative • Motivation:

• Probing - Don’t ask ‘Why do you buy this brand?’ (we’re not introspective about our behavior as consumers) but rather get under the surface with questions like: ‘how do you feel when you buy this brand?’ and ‘what else makes you feel this way?’

• Projective techniques – ‘Why do your friends use this product?’ or use cartoon characters is brand usage situations and let participants fill out speech bubbles

• Benefit Structure – word associations about your category • Laddering - ‘What comes to mind when I say

savings?’….’security’….’And what does security make you think of?’

Brand Equity Research - Quantitative

• Quantitative • Salience – ‘list all brands that come to mind for x category’ – first mentions vs total

mentions to uncover top of mind • Preference/Substitutes – How willing to accept or purchase substitute? • Price Elasticity – Upside/Downside • Loyalty – behavior (RFV) and attitude (net promoter score) • Lassar et al 1995 – performance, value, social image, trustworthiness, commitment