Marketing Management

1. Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning

2. Brands Chapter 6

3. Brands • Marketers believe that brands have value, above and beyond the benefits of the product itself • Brand • portfolio of qualities associated with a name • More than just a name

4. Brands • Qualities associated with the brand • Some qualities are under marketer control • Product shape • Product packaging • Logos, shapes & symbols • Colors • Jingles & slogans • Spokespeople • Some are not • Personal memories about brands

5. Brand Name • A brand is first and foremost a name • Some names immediately convey information • Geek Squad • Some names suggest their benefits • Motorola's Razr phone • Some names are those of their founder • Trump Tower • Try to choose brand names that convey information about the benefits of brand

6. Customer Benefits of Branding • For the customer • Brands convey information • Sony is quality. Anything from Sony is quality • Brands signal consistent quality • Brands allow for predictability regarding quality • Brands confer status • Some brands bolster consumer’s self-image • Brands reduce the risk of purchase • Brands make purchase decisions easier • Customers know what they are getting

7. Company Benefits of Branding • For the company • Brands enhance loyalty • If brand satisfies, brand image is solidified • Brands allow charging premium prices • Brands assist in STP • Multiple brands allow firms to target multiple segments • Brands inoculate the company from some competitive action • Brands encourage channel partners’ support

8. Brand Associations • Product attributes • Color, size, shape, flavor, etc. • Product benefits • More intangible than product attributes • This sweater is flattering

9. Brand Associations • Emotional benefits • More intangible than product benefits • A flattering sweater is a means to achieving the goal of being attractive • Benefits are more meaningful and easier to claim as an advantage BUT…harder to create

10. Brand Associations • Brands can serve social functions • Brands can be expressions of the customer’s ideal self • Teenagers with the “right” shoes • Brands can become the focal point of bonding • Harley Davidson Riders

11. Brand Personalities • Brand personalities can capture something specific or holistic about the brand position in the marketplace • MTV is not just a music cable station—it’s a way of life for young, cool people • Brand personality profiles are not better than others…they are just different

12. Brand Communities • Some customers are so passionate about their love for certain brands that they like to connect with other like-minded customers • HOGS riding groups, Harry Potter blogs, etc. • Marketers can encourage and build upon these communities

13. Branding Strategies • Umbrella Brands • Company attaches same brand name to all of its products • Subsequent product introductions are easier for the customer to understand and accept • Higher initial awareness levels • Stronger financial outcomes for company • Honda

14. Branding Strategies • House of brands • Company introduces a new brand name for every major line of product it brings to the marketplace • Problems of one brand shouldn’t negatively affect other brands • Companies can reach multiple segments • P&G

15. Brand Extensions • Brand extensions • Marketer leverages the brand’s good name to get customers to buy something new • Line extensions: apply to a product within a product line • Category extensions: apply to a product in a different product line

16. Co-branding • Co-branding • Two companies collaborate in a joint venture to create a good or service for the customer • Cole Haan shoes with Nike Air technology • Ingredient branding • One of the companies and its product is the primary host and the other company and its product add value to the host product • American Airlines serving Starbucks coffee

17. Co-branding • Co-branding works well when a company is introducing a new product attribute • Adding cough medicine to candy • Self-branding (Branding one of their own ingredients to differentiate its quality from competitors) works better when tweaking a minor attribute • Tide’s “EverFresh” scent

18. Global Brands • Global brands • At least 30% of the brand’s revenues come from other countries • Options • Glocalization: manufacture globally, brand locally • Use the same name globally • Greater advantages to maintaining single brand worldwide

19. Store Brands • Private label brands • Less expensive and more of a “me-too” product offering • Target’s “Archer Farms,” Kroger’s “Private Selection,” and Costco’s “Kirkland Signature” • The retailer can offer decent quality for lower prices due to reduced advertising costs

20. Brand Equity • Brand Equity • The worth of a brand • Measurement Approaches • Determining the price premium of brand • “How much are you willing to pay for gas at Shell?” vs. • “How much are you willing to pay at a local station?” • Comparing branded and unbranded • “How much do you like this $799 Sony flat screen with screen-within-a-screen?” vs. • “How much do you like this $799 unknown brand flat screen sharing the same features?”

21. Brand Equity • Measurement Approaches, cont. • Interbrand: assess the value of a firm, subtract its physical and financial assets • Brand contribution index varies by product category: high for cologne, lower for retailers