3. Contents
1
Strategic Brand Management2
Marketing Elements for brand equity
2015-05-04 Shim, Jaehak (jaehak_shim@cambridgejbs.net)
What we will discuss and achieve today ?
3
Sustainability of Brand and CSR
4
3
Key Imperatives for CSR
6. Based on perceptions of a brand‟s position
Consumers‟ expectation
Brand personality
Price as quality assurance
A communication tool for building brand equity
Premium pricing (Prestige pricing)
• Consistently high price interlinked with value perceived from
product
• Ownership of high price products
signals „membership‟
Low pricing (Value pricing)
• Minimize the price fluctuations
• Prevent to discount the brand value
directly
2015-05-04 Shim, Jaehak (jaehak_shim@cambridgejbs.net)
Marketing4PMixElement forBrandEquity
Price
6
7. Communication tools
Tradition 4 main media : TV, Radio, Print (newspaper,
magazine), and Out door
Internet : Mutual communication
Sales promotion : customer pm, trade pm
Publicity : Public relations, sponsorship
Personal communication : telemarketing, selling
Key communication decision
Media selection
Message content depend on media
Integrated Marketing Communication
2015-05-04 Shim, Jaehak (jaehak_shim@cambridgejbs.net)
Marketing4PMixElementsforBrandEquity
Promotion
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8. Select the channel strategy based on the
positioning, PLC and market environment
Strategy options
Direct channel strategy when the product information, product
customization, quality assurance is relatively important
Indirect channel strategy when availability (distribution), low scale
of sales
Consideration from current market environment
Shift in balance of power between manufacturer and channel
Reduced brand loyalty
Splintered mass market & reduced media effectiveness
The role of retailer image
2015-05-04 Shim, Jaehak (jaehak_shim@cambridgejbs.net)
Marketing4PMixElement forBrandEquity
Place
8
10. The power of the 5th „P‟ (Gallup, William J. McEwen)
The most important driver of brand loyalty
2015-05-04 Shim, Jaehak (jaehak_shim@cambridgejbs.net)
The 5th Element
10
11. The 5th P
The Moment of Truth
„Moment De La Vardad‟
So important not to accept mistake
The short contact but it can change the
brand image and future of the company
(Jan Carzon, The moment of Truth)
People as Brand Ambassador
Different cultured
Sometimes irrational and inconsistent
Management customer experience
Must be in the same Brand Identity
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12. Integrated Marketing
Communications
The “voice” of the brand
A means by which it can establish a dialogue and build
relationships with consumers
Allow marketers to inform, persuade, provide incentives,
and remind consumers directly or indirectly
Can contribute to brand equity by establishing the brand
in memory and linking strong, favorable, and unique
associations to it
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13. Developing IMC
Programs
Mixing communication options
Evaluate all possible communication options available to create
knowledge structures according to effectiveness criteria as well as
cost considerations.
Different communication options have different strengths and can
accomplish different objectives.
Determine the optimal mix
And then Plan-Action-Evaluation Cycle
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14. Evaluating IMC
Programs
Coverage: What proportion of the target audience is
reached by each communication option employed?
Frequency: How many times target audience are
exposure to IMC ?How much overlap exists among
options?
Cost: What is the per capita expense?
Contribution: The collective effect on brand equity in
terms of
enhancing depth and breadth of awareness
improving strength, favorability, and
uniqueness of brand associations
2015-05-04 14Shim, Jaehak (jaehak_shim@cambridgejbs.net)
15. Evaluating IMC
Programs (cont.)
Commonality: The extent to which information conveyed
by different communication options share meaning
Complementarities: The extent to which different associations
and linkages are emphasized across communication options
Versatility: The extent to which information contained in a
communication option works with different types of
consumers
Different communications history
Different market segments
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16. Brand Communication
Guidelines
Be analytical : Use frameworks of consumer behavior
and managerial decision making to develop well-reasoned
communication programs
Be curious : Fully understand consumers by using all
forms of research and always be thinking of how you
can create added value for consumers
Be single-minded : Focus message on well-defined targe
t markets (less can be more)
Be integrative : Reinforce your
message through consistency and
cuing across all communications
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17. Marketing Communication
Guidelines (Cont.)
Be creative : State your message in a unique fashion;
use alternative promotions and media to create favorable,
strong, and unique brand associations
Be observant : Monitor competition, customers, channel
members, and employees through tracking studies
Be realistic : Understand the complexities involved in
marketing communications
Be patient : Take a long-term view of communication
effectiveness to build and manage brand equity
2015-05-04 Shim, Jaehak (jaehak_shim@cambridgejbs.net) 17
19. Strategic Brand
Management
Strategic brand management involves the design and
implementation of marketing programs and activities
to build, measure, and manage brand equity.
The strategic brand management process is defined as
involving four main steps
Identifying and establishing brand positioning and values
Planning and implementing brand marketing programs
Measuring and interpreting brand performance
Growing and sustaining brand equity
2015-05-04 Shim, Jaehak (jaehak_shim@cambridgejbs.net) 19
20. Strategic Brand
Management Process
• Mental maps
• Competitive frame of reference
• Points of parity and points of differences
• Core brand values
• Brand mantra
Identify and Establish
Brand Positioning and Values
• Mixing and matching of brand elements
• Integrating brand marketing activities
• Leverage of secondary associations
Plan and Implement
Brand Marketing Program
• Brand value chain
• Brand audits
• Brand tracking
• Brand equity management system
Measure and Interpret
Brand Performance
• Brand-product matrix
• Brand portfolios and hierarchies
• Brand expansion strategies
• Brand reinforcement and revitalization
Grow and Sustain
Brand Equity
Steps Key Concept
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21. Managerial Assistance
for Brand Management
Genuine top management commitment to, and
communication of, brand values not just lip service!!
Build esprit de corps & socialize new people into the
brand
Team building initiatives
A „bottom-up‟ approach to brand building
Decentralize market intelligence generation
Market-based reward systems
Avoid the “folly of rewarding A while hoping for B
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22. Guide Lines for
Brand Management
1. Protect your brand
2. Honor your stakeholder
3. Treat your brand as an investment, not a cost
4. Exploit the financial potential of your brand
5. Understand that successful brand management
nowadays is a complex task
(Tom Blakett, The Economist)
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23. “The world is unequal, unstable and unsustainable-
governments alone can’t move us where we need to
be”
Bill Clinton, 2006
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24. Reality of the
Global Economy
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27. What do you Want ?
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28. What do you want
to be ?
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29. Why be on the light
side ?
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30. Answer is….
Because we are good Christian ?
Or we believe responsibility as a „Good Samaritan‟?
Or due to the cost efficiency due to the tax reduction ?
However,
We are not charity non profit organization…..
The real justification is the fact that customers care
about social and environmental issues.
“ We want to make more sustainable profit in long
term “
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31. Positive Ethical Behavior
over the World
‘ % agreeing “I make sure I regularly buy product or service from
companies that…’
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32. Understanding
Ethical Behavior
77% of CEOs and Marketing Directors believe CSR can
enhance corporate and brand reputation
86% of consumers said that they would have a more
positive opinion of the company that is doing something
to make the world a better place regardless of the cause
or issue concerned
(A Research International study in 1996, UK)
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34. Corporate Social
Responsibility
“Perhaps we have the opportunity to be a different type of global
company, a global brand that can build a different mode, a
company that is a global business, that makes a profit, but at the
same time demonstrates, a social conscience and gives back to
the local market.” (Howard Schultz, CEO, Starbucks)
2015-05-04 Shim, Jaehak (jaehak_shim@cambridgejbs.net) 34
35. CSR &
Brand Management
If you can prove that your business is making a positive
contribution to the societal challenge then you can create
ADVANTAGE
If others can prove that your business is making our societal
challenge more difficult then you are exposed to
REPUTAION RISK
(Freud Communication 2007)
A company's reputation can quickly be tarnished if activists
target its policies and practices
2015-05-04 35Shim, Jaehak (jaehak_shim@cambridgejbs.net)
36. Nike Case
Background
$18.6 Billion revenue in 2008 globally
Focus on development of the product and marketing
Manufactured all product through outsourcing over the world
Issue
Child abuse and labor exploitation in the 3rd world
Pakistan case publicized by Life Magazine, 1996
Similar Issues in China and Indonesia
Result
Lose share to Rebok and Addidas in 90s
And then,….
• Marketing effort and New contact
• The criticism continues
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37. Body shop Case
Starting as a small cosmetic shop since 1992
Strong Policy for sustainable business
RRR campaign (Refill, Reuse, and Recycle )
Against animal testing (AAT) but botany raw material
Fair Community Trade
Result
Top ranked in „Ethical Reputation Index‟
Average 9% growth rate in last 10 years
2015-05-04 Shim, Jaehak (jaehak_shim@cambridgejbs.net) 37
38. Sustainable
development
There is a lot wrong with our world. But it is not as bad as many
people think. It is worse… The lesson is that if we continue with
activities which destroy our environment and undermine the
conditions for our own survival, we are the virus. Making the
change needed to avoid that fate is perhaps the greatest challenge
we have ever faced.
Michael Meacher (UK Environment Minister),
2015-05-04 38Shim, Jaehak (jaehak_shim@cambridgejbs.net)
39. Definitions of
sustainable development
“…development that meets the needs of the present without
compromising the ability of future generations to meet their
own needs.”
Source: G H Brundtland, 1987, Our common future, report of the World
Commission on environment and development, Oxford University Press.
“The goal of sustainable development is to enable all
people throughout the world to satisfy their basic needs
and enjoy a better quality of life, without compromising
the quality of life of future generations…
Source: UK Sustainable Development Commission,
http://www.sd-commission.org.uk/pages/principles/definitions.html
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41. Social
• empowerment
• inclusion/consultation
• institutions/governance
Environmental
• resilience/biodiversity
• natural resources
• pollution
Economic
• inter-generational equity
• values/culture
Poverty
Equity
•growth
•efficiency
•stability
Source: M Munasinghe, 1992, Environmental Economics and Sustainable
Development, Rio Earth Summit, World Bank, Washington DC.
Three pillars of
sustainable development
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42. Key Imperatives for
CSR
Don’tsDos
Select a cause that is a good
fit both in terms of your core
business &value and your target
audience
Set out to develop a long term
partnership with the cause
Agree on joint activities,
events, areas within the cause
that you can own and grow
Develop local communication
plan that reach out all
stakeholders
Create many touch point
possible
Change causes frequently or
support too many non-related
causes
Choose a cause that does not
resonate with your target
audience
Create CSR initiatives as a
„PR exercise‟ (Take time)
Try to create campaign from
one department only
Expect your charity partner to
adjust their cause to your
objectives and work
2015-05-04 43Shim, Jaehak (jaehak_shim@cambridgejbs.net)
Source) Ogilby CSR Training 2006
44. Wrap-up
Marketing elements for brand equity
4 P Mix & 5th P
Strategic Brand Management
Corporate Social Responsibility
Concept
Potential of CSR for Marketing
The essence of CSR for Brand Management
Sustainable Development
Key imperatives for CSR activates
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