BRAND Strategies

1. BRAND Strategies Introduction to Marketing Management CSUN

2. What is a BRAND? • "A brand is a name, symbol, design, or mark that enhances the value of a product beyond its functional purpose" (Farquhar 1989). • "For many businesses the brand name and what it represents are its most important asset--the basis of competitive advantage and of future earnings streams” (Aaker 1991). • Coca-Cola was estimated to be worth $36 billion • Budweiser worth $9.7 billion • Nike's worth was estimated at $3.6 billion • Barbie's value was judged to be $1.7 billion.

3. Branding Definitions • Brand: any name, term, symbol, sign, design, or unifying combination of these that identifies one product from another competitive product • Brand Name: the verbal part of the brand • Logo: a brand name or company name written in a distinctive way (short for “logotype”) • Trademark: a legally protected brand name or brand mark. A registered trademark gives a marketer proprietary rights to a symbol or name • Service Mark: provides the same identifying function for services that a trademark provides for goods. It also can be legally protected by registration • Generic Names: describe a product or an item that is part of our standard vocabulary Product Strategies

4. Purpose of Branding Consistency Quality & Value Attributes Identification Advantages of Brand Names Brand Equity High Brand Loyalty Strong Brand Association Perceived Quality Name Awareness

5. Managing and Building a Brand Knowledge Perceived Meanings Brand can possess an appealing image that consumers value directly Expected Performance Recall versus Recognition Price Sensitivity & Purchase rate BRAND ASSOCIATIONS BRAND LOYALTY BRAND AWARENESS BRAND QUALITY • Reduced Marketing Costs Trade leverage • Attracting New Customers (create Awareness & Reassurance) • Time to Respond to Competitive Threats • Reason-to-Buy • Differentiation/ Position • Price • Channel Member Interest • Extensions • Help Process & Retrieve Information • Differentiate/ Position • Reason-to-Buy • Create Positive Attitudes/ Feelings • Potential for Extensions • Anchor to Which Other Associations Can Be Attached • Familiarity Liking • Signal of Commitment • Brand to Be Considered

6. Brand Awareness • Recall • e.g., first brand that comes to mind in x category • Recognition • e.g., Rate your level of familiarity of each brand in x category

7. Brand Associations:e.g., Bose Functional Benefits Symbolic Benefits Brand Attributes (e.g., electronic expertise Brand Personality (e.g., lifestyle, elegance) Brand Identity Emotional Benefits

8. Brand Elements Loyalty: Resistance to competition Larger margins More elastic for price decreases Less elastic for price increases Communications efficiency/effective Licensing opps. Brand extensions Name Symbol Logo Character Pkg. Slogan BrandLoyalty Brand Awareness Brand Associations PerceivedQuality OtherProprietaryAssets Marketing Programs Product Distribution Price Communica. Secondary Associations Company Endorser Company of origin Events How to Create Strong Brands Brand Equity

9. Five-Stage Consumer Buyer Decision Process Problem recognition Information search Evaluation of alternatives Purchase decision Postpurchase behavior Buyer behavior

10. ITEMS NEED RECOGNITION INFORMATION SEARCH EVALUATION OF ALTERNATIVES E Q U I T Y Brand Awareness advertising exposure (1) recognise the brand (2) recall the brand with cues (3) place the brand in a consideration set Brand Attitude learn from competitive brands Form Consideration set Develop Brand beliefs for each brand/attribute (brand positioning) Brand beliefs make up the Brand Image Brand beliefs varies with experience and the effect of selective perception, distortion, and retention S T R A T E G Y • Keep the brand newsworthy • Build Familiarity • Brand name conveying a product benefit = higher recall (e.g., Lean Cuisine – low calorie food). • Develop a plan to get into prospect’s consideration set • Identify competitors in the consumer’s choice set - to plan its competitive appeals • Alter beliefs about the brand (psychological repositioning) • Alter beliefs about the competitors’brands: competitive depositioning (e.g., running a comparison ad) • Alter the importance weights • Call attention to neglected attributes • Shift the buyer’s ideals

11. ITEMS PURCHASE DECISION POST-PURCHASE BEHAVIOR E Q U I T Y Based on Brand Preference Brand preference varies with: (1) attitudes of others (2) motivation to comply with other person’s desires • Brand Loyalty • Enhanced brand loyalty to: • buy time to respond when competitors innovate • reduce cognitive dissonance S T R A T E G Y • Increase perceived Brand Quality and Associations • Generate platforms to build on brand reputation • Reduce perceived risk (warranty, professional referrals, etc.) • Make product claims that faithfully represent the product’s likely performance (satisfaction) • Generate brand heritage: connections between products and consumers become part of the social and cultural fabric (e.g., Santa Claus and Coca-Cola, De Beers & diamonds and marriage, champagne and celebrations)

12. Implications of Brand Equity • Provides Value to Customers by Enhancing Customer’s: • Interpretation/Processing of Information • Confidence in the Purchase Decision • Use Satisfaction • Provides Value to Firms by Enhancing: • Efficiency and Effectiveness of Marketing Programs • Repeat Purchase • Prices/Margins • Trade Leverage • Competitive Advantage • Product and Market Extensions • Bargaining Power • New Product Launch

13. Major Branding Decisions Brand Name Selection Selection Protection A five-step process: (1) setting branding objectives (2) creating a list of candidate brand names (3) evaluating prospective brand names (4) choosing the best brand names (5) applying for registration Brand Sponsor Manufacturer’s Brand Private Brand Licensed Brand Co-branding Brand Strategy Line Extensions Brand Extensions Multibrands New Brands

14. Types of Brands Manufacturer’s Brands Distributor’s or Private Brands Generic Products “No-Name” product in plain package with stark lettering Name is owned and advertised by the manufacturer Name is owned and advertised by intermediary Craftsman Tools VONS products Black & Decker tools Whirpool Appliances Dog Food Product Strategies

15. Strategic Choices of Brand Name Three brand name choices: A. B. C. family branding individual branding combinations - less expensive - more expensive VW Beetle - less effective - can be very effective - Philips - OMO POWER

16. *Young & Rubicam Brand Asset ValuatorTMModel How Do You Build a Brand* Knowledge Intimate understanding of the brand and what it stands for Esteem Regard for the brand Relevance Personal appropriateness of the brand Differentiation Perceived uniqueness of the brand

17. Differentiation Insufficient • Differentiation yields brand’s margin opportunity • Relevance yields usage opportunity (penetration) • The differentiation must be relevant to create a strong brand Brand Strength Differentiation Relevance

18. Esteem & Knowledge = Brand Stature • Esteem • Related to perceptions of “high quality” and “increasing popularity” • Knowledge • The successful outcome or culmination of brand building • Achieved/earned, not bought Brand Stature Esteem Knowledge

19. Dimensions of Brand Personality The set of human characteristics associated with a brand. It enables a customer to express his or her own self, or ideal self, on specific dimensions of the self through the use of the brand Brand Personality Sincerity Excitement Competence Sophistication Ruggedness Down-to earth Honest Wholesome Cheerful Daring Spirited Imaginative Up-to-date Reliable Intelligent Successful Upper class Charming Outdoorsy Tough

20. Product Category Line Extension Dannon Yogurt Flavors Brand Extension Barbie Electronics Existing New Existing Multibrands Seiko  Pulsar New Brands Toyota & Lexus Brand Name New Four Brand Strategies + Co-Branding = brands bearing 2 or more brand names BMW + Michelin or Intel + Compaq