86757580 branding-and-marketing-promotion-strategies

BRANDING AND
MARKETING PROMOTION
STRATEGIES (Part I)
Core Text:
“Strategic Brand Management”
by
Kevin Lane Keller (2nd Edition)

Presented by:
PROF. HIMMAT ADISARE

BRANDS AND BRAND
MANAGEMENT

Ref: Chapter 1 of Core Text

What is a Brand?

Definition: “A brand is a product that
adds other dimensions that differentiates
it in some way from other products
designed to satisfy the same need.”


Why Do Brands Matter?

 CONSUMERS:
 Search cost Reducer
 Identification of
Source of Product  Promise, Bond, or
Pact with Maker of
 Assignment of
Product
Responsibility to
Product Maker  Symbolic Device

 Risk Reducer  Signal of Quality


Why Do Brands Matter? (2)

 MANUFACTURERS:
 Means of Identification
to Simplify Handling or  Means of Endowing
Tracing Products with Unique
 Means of Legally Associations
Protecting Unique  Source of Competitive
Features Advantage
 Signal of Quality Level  Source of Financial
to Satisfied Customers Returns


Can Anything Be Branded?

 Physical Goods  People and
 Services Organizations
 Retailersand  Sports, Art and
Distributors Entertainment
 Online Products  Geographic
and Services Locations
 Ideas and Causes

Branding Challenges And
Opportunities
 Savvy Customers
 Brand Proliferation
 Media Fragmentation
 Increased Competition
 Increased Costs
 Greater Accountability


The Brand Equity Concept
 Basic Principles of Branding and Brand
Equity:
 Differences in outcomes arise from the “added value”
endowed to a product as a result of past marketing
activity for the brand.
 This value for a brand can be created in many different
ways.
 Brand equity provides a common denominator for
interpreting marketing strategies and assessing the value
of a brand.
 There are many different ways in which the value of a
brand can be manifested or exploited to benefit the firm.


Strategic Brand Management
Process

 Identifying andEstablishing Brand
Positioning and Values
 Planning and Implementing Brand
Marketing Programs
 Measuring and Interpreting Brand
Performance
 Growing and Sustaining Brand Equity


CHAPTER 2

CUSTOMER-BASED BRAND
EQUITY


Sources Of Brand Equity

 Brand Awareness  Brand Image
 Consequences of  Strength of Brand
Brand Awareness Associations
 Learning advantages  Favorability of
 Consideration Brand Associations
advantages
 Uniqueness of Brand
 Choice Advantages
Associations
 Establishing Brand
Awareness

Building A Strong Brand

 The Four Steps of Brand Building:

 1. Identity (Who are you?)
 2. Meaning (What are you?)
 3. Response (What about you?)
 4. Relationship (What about you & me?)

Customer-based Brand Equity
Pyramid

Relationship

Resonance
Response
Judgments Feelings
Meaning
Performance Imagery
Identity
Salience


Customer-based Brand Equity Pyramid (2)

 Brand Salience: This  Brand Judgments: The
relates to aspects of customers’ personal
awareness of the brand opinions and evaluations
 Brand Performance: with regard to the brand
This relates to ways in  Brand Feelings: The
which product/ service customers’ emotional
meets customers’ needs responses and reactions
 Brand Imagery: It’s how with respect to the brand
customers visualize a  Brand Resonance: The
brand abstractly, with ultimate relationship &
no relevance to what the level of identification
brand actually does that the customer has
with the brand

CHAPTER 3

BRAND POSITIONING AND
VALUES


Identifying and Establishing
Brand Positioning
 Basic Concepts
 Target Market
 Nature of Competition
 Points of Parity and Points of Difference


Brand Positioning (2)
 Basic Concepts: According to the CBBE
model, it is necessary to decide:-
 1. Who the target consumer is
 2. Who the main competitors are
 3. How the brand is similar to these
competitors, and
 4. How the brand is different from these
competitors


 Target Market:
 Segmentation Bases:
a) Behavioral b) Demographic
c) Psychographic d) Geographic
 Segmentation Criteria:
a) Identifiability b) Size
c) Accessibility d) Responsiveness

 Nature of Competition:
 Channels of Distribution
 Competitors’ Resources
 Competitors’ Capabilities
 Competitors’ Likely Intentions
 Other Competitive Factors (Porter’s 5-
Force Model refers)
Ref to Chapter 3 of Core Text

Brand Positioning
 Points of Parity and Points of Difference:
 1. Points of Difference Associations
 2. Points of Parity Associations
 3. Points of Parity versus Points of
Difference


Positioning Guidelines
 1. Defining and Communicating the
Competitive Frame of Reference
 2. Choosing Points of Parity and Points of
Difference
 3. Establishing Points of Parity and
Points of Difference
 4. Updating Positioning Over Time


Positioning Guidelines (1)
 Defining
and Communicating the
Competitive Frame of Reference:
A starting point in defining a competitive frame
of reference for brand positioning is to
determine Category Membership. Membership
indicates the products or set of products with
which a brand competes. Communicating
category membership informs the consumer
about the goals that they might achieve by
using a product or service.


 Choosing Points of Parity and Points of
Difference:
 Points of Parity: These are driven by the needs of
category membership and the necessity of
negating competitors’ PODs.
 Points of Difference: These are based on the
following criteria:
1. Desirability: In terms of a) Relevance
b) Distinctiveness, and c) Believablity
2. Deliverability: In terms of a) Feasibility
b) Communicability, and c) Sustainability


 Establishing Points of Parity and Points of
Difference:
 1. Separate the attributes: Launch two marketing
campaigns, each one devoted to a different brand
attribute or benefit.
 2. Leverage Equity of another Entity: Link the
brand with a well-liked celebrity, cause or event.
 3. Redefine the Relationship: Use attitude
change strategies to convert negative perspectives
about the brand to positive ones.


 Updating Positioning Over Time:
 1. Laddering: This strategy is to deepen
the meaning of the brand to tap into core
brand values or other more abstract
considerations.
 2. Reacting: This could imply no reaction
to moderate or significant reactions
depending on level of competitive threat.


CHAPTER 4

CHOOSING BRAND
ELEMENTS TO BUILD
BRAND EQUITY


Criteria for Choosing Brand
Elements
 1. Memorability
 2. Meaningfulness
 3. Likability
 4. Transferability
 5. Adaptability
 6. Protectability


Options and Tactics for
Brand Elements
 1. Brand Names
 2. URLs (Uniform Resource Locators)
 3. Logos and Symbols
 4. Characters
 5. Slogans
 6. Jingles
 7. Packaging


CHAPTER 5

DESIGNING MARKETING
PROGRAMS TO BUILD
BRAND EQUITY


New Perspectives on
Marketing
 Five Major Drivers of the New Economy:
Philip Kotler identifies them as under:
 1. Digitalization and connectivity
 2. Disintermediation and Reintermediation
 3. Customization and Customerization
 4. Industry Convergence
 5. New Customer and Company Capabilities
(Remaining topic is for Self-study)

Product Strategy
 Perceived Quality and Value:
 1. Brand Intangibles
 2. TQM and Return on Quality
 3. Value Chain
 Relationship Marketing:
 1. Mass Customization
 2. Aftermarketing
 3. Loyalty Programs


Pricing Strategy
 Consumer Price Perceptions:
 Price Band strategies
 Value-based Pricing Strategies
 Setting Prices to Build Brand Equity:
 Value Pricing based on: a) Product design and
delivery b) Product costs, and c) Product prices
 Everyday Low Pricing (EDLP): A strategy based
on low pricing as well as discounts and
promotions to consumers at regular intervals.


Channel Strategy
 Channel Design: Broadly, channel types can be
classified into Direct and Indirect channels.
 Direct Channels: a) Company-owned stores b)
Leased/Rented shopping-space in larger
department stores.
 Indirect Channels: a) Distributors and Dealers
b) Retailers c) other middlemen
 Web Strategies: Today, these are extremely
powerful channels if supported by efficient
physical “brick & mortar” channels.


CHAPTER 7

LEVERAGING SECONDARY
BRAND KNOWLEDGE TO
BUILD BRAND EQUITY


Conceptualizing the
Leveraging Process
 Creation of New Brand Associations:
By making a connection between the brand and
another entity, consumers may form a mental
association from the brand to this entity
and, consequently, to any or all
associations, judgments, feelings and the like linked to
that entity
 Effects on Existing Brand Knowledge: Three factors
are important in predicting the extent of leverage
resulting from linking the brand to another entity:
i) Awareness and knowledge of the entity
ii) Meaningfulness of the knowledge of the entity, and
iii) Transferability of the knowledge of the entity

Company
 The branding strategies adopted by a company
that makes a product or offers a service are an
important determinant of the strength of
association from the brand to the company and
any other existing brands. Three main
branding options exist for a new brand:
 1. Create a new brand
 2. Adapt or modify an existing brand
 3. Combine an existing and new brand


Country of Origin
Besides the company that makes the
product, the country or geographic location
from which it is seen as originating may also
become linked to the brand and generate
secondary associations. Thus, a customer may
choose to wear Italian suits, exercise in
American sports shoes, drive a German
car, and drink English beer.


Channels of Distribution
Channels of distribution can directly
affect the equity of the brands they sell by
the supporting actions that they take.
Retail stores can indirectly affect the
brand equity of the products they sell by
influencing the nature of associations that
are inferred about these products on the
basis of the associations linked to the
retail stores in the minds of consumers.


Co-Branding
 Co-branding: Also called brand bundling or
brand alliances-occurs when two or more
existing brands are combined into a joint
product or are marketed together in some
fashion.
 Ingredient branding: This is a special case of co-
branding that involves creating brand equity
for materials, components, or parts that are
necessarily contained within other branded
products.


Licensing
Licensing involves contractual
arrangements whereby firms can use the
names, logos, characters, and so forth of
other brands to market their own brands
for some fixed fee. Because it can be a
shortcut means of building brand equity,
licensing has gained popularity in recent
years.


Celebrity Endorsement (1)
 Using well-known and admired people to
promote products is a widespread phenomenon
with a long marketing history. The rationale
behind these strategies is that a famous person
can:
 1. Draw attention to a brand, and
 2. Shape the perceptions of the brand by virtue
of the inferences that consumers make based on
the knowledge they have about the famous
person.

Celebrity Endorsement (2)
 Potential Problems:
 1. Celebrity endorsers can be overused by
endorsing so many products that they lack any
specific product meaning or are just seen as
overly opportunistic or insincere.
 2. There must be a reasonable match between
the celebrity and the product.
 3. Celebrity endorsers can lose popularity thus
diminishing their market value to the brand.
 4. Many consumers feel that celebrities are
doing the endorsement only for money.

Sporting, Cultural, or Other Events

 1. A brand may seem more likable or
even trustworthy by becoming linked to
an event.
 2. Sponsored events can contribute to
brand equity by becoming associated to
the brand and improving brand
awareness, adding new associations, or
improving the strength, favorability, and
uniqueness of associations.


CHAPTER 8

DEVELOPING A BRAND
EQUITY MEASUREMENT
AND MANAGEMENT
SYSTEM


The Brand Value Chain
 Value Stages:

 1. Marketing Program Investment
 2. Customer Mindset
 3. Market Performance
 4. Shareholder Value


Value Stages (1)
 Marketing Program Investment: The ability of
a marketing program investment to transfer or
multiply further down the chain will depend on
qualitative aspects of the marketing program
via the program multiplier.
 The Program Multiplier: Four factors are
important:
 1. Clarity 2. Relevance
 3. Distinctiveness, and 4. Consistency


Value Stages (2)
 Customer Mindset: Five dimensions have emerged
from research as important measures of the customer
mindset:
1. Brand Awareness 2. Brand Associations
3. Brand Attitudes 4. Brand Attachment
5. Brand Activity
 Customer Multiplier: Three essential factors are:
1. Competitive Superiority 2. Channel and other
intermediary support 3. Customer size and profile


Value Stages (3)
 Market Performance: Six dimensions need to
be addressed:
1. Price Premiums 2. Price Elasticities
3. Market Share 4. Brand Expansion
5. Cost Structure 6. Brand Profitability
 Market Multiplier: Following factors need to
be considered:
1. Market Dynamics 2. Growth Potential
3. Risk Profile 4. Brand Contributions


Value Stages (4)
 Stakeholder Value: Based on all available and
forecasted information about a brand and
many other considerations, the financial
marketplace then formulates opinions and
makes various assessments that have direct
financial implications for the brand value.
Three important indicators are:
 1. Stock price
 2. Price/earnings multiple, and
 3. Overall market capitalization of the firm


The Brand Value Chain
 Implications:
 1. A necessary condition for value creation is a
well-funded, well-designed, and well-
implemented marketing program.
 2. Value creation involves more than just the
initial marketing investment.
 3. Each of the three multipliers can increase or
decrease market value from stage to stage.
 4. The brand value chain provides a detailed
roadmap for tracking value creation enabling
market research and intelligence efforts.


Designing Brand Tracking
Studies
 What to Track:
 1. Product Brand Tracking
 2. Corporate or Family Brand Tracking
 3. Global Tracking
 How to Conduct Tracking Studies:
 1. Who to track
 2. When and where to track
 How to Interpret Tracking Studies


Designing Brand Tracking Studies (1)
 What to Track: Three distinct surveys can be
conducted for:
 1. Product-Brand Tracking: The six-block
pyramid for brand-building can be used as a
basis for design of the questionnaire.
 2. Corporate or Family Brand Tracking: Some
additional questions may be added to establish
levels of corporate credibility and corporate
brand associations.
 3. Global Tracking: A broader set of background
measures are needed to put brand development
in those markets in the right perspective .


 Who to Track:
 1. Current Customers
 2. Potential Customers
 3. Channel Members
 4. Frontline Employees (Services sector)
 When and Where to Track: Options are:
 Continuous Tracking Studies
 Based on Stage of Product Life Cycle
 Based on depth of Brand Equity


 How to Interpret Tracking Studies: For tracking
measures to facilitate actionable insights and
recommendations, they must be reliable and sensitive
as possible. This may require framing of questions in a
comparative or temporal manner. It is also necessary to
decide on appropriate cutoffs. For example:

 What is a sufficiently high level of brand awareness?
 When are brand associations sufficiently strong,
favorable, and unique?
 How positive should brand judgments and feelings be?
 What are reasonable expectations for the amount of
brand resonance?


Establishing a Brand Equity
Management System
 Brand Equity Charter

 Brand Equity Report

 Brand Equity Responsibilities:
 1. Overseeing Brand Equity
 2. Organizational Design and Structure
 3. Managing Marketing Partners


Management System (1)
 Brand Equity Charter: A formalized document
should spell out the following:
 The firm’s view of the brand equity concept.
 The scope of the key brands of the firm.
 Specify the actual and desired equity for a brand
at all relevant levels i.e. at individual product
level and corporate level.
 Strategies for managing brand equity.
 Outline specific tactical guidelines for marketing
programs.
 Trademark usage, packaging & communications

 Brand Equity Report: Important market
information that should be included:
 1. Product shipments and movement
through channels of distribution.
 2. Relevant cost breakdowns
 3. Price and discount schedules
 4. Sales and market share information
 5. Profit assessments


 1. Overseeing Brand Equity: Aspects that are
important:
a) Review brand sensitive material
b) Review the status of key brand initiatives
c) Review brand sensitive projects
d) Review new product and distribution strategies
with respect to core brand values
e) Resolve brand positioning conflicts


Management System (3-contd)
 2. Organizational Structure & Design: The
current market trends are redefining job
requirements and duties. The traditional
marketing department is disappearing from a
number of companies that are exploring other
ways to conduct their marketing functions
through business groups, multidisciplinary teams
and so on.


Management System (3-contd)

 3. Managing Marketing Partners: The
performance of a brand also depends on the
actions taken by outside suppliers and marketing
partners. Hence, these relationships must be
managed carefully. Many leading global firms
have been consolidating their marketing
partnerships and reducing the number of outside
suppliers. (Ex: Levi Strauss value chain)

Ref: Chapter 8 of Core Text (END OF PART I)

86757580 branding-and-marketing-promotion-strategies

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