term… Coke Coke name... Coca-Cola Coca-Cola design… sign… symbol… or combination… A Brand is any... …that distinguishes a product from its competition.
Brand Image • A mental image that reflects the way consumers perceive a brand. • Physical: design, letters, shapes, art, colors • Psychological: emotions, beliefs, values
Characteristics of Good Brand Names Virginia Slims Easy to say and remember Spic and Span Pronounceable in only one way Positive in connotation Angel Duracell Communicative of product attributes Jiffy Short and distinctive Legally protectable Fruit 'n Fibre
Basic Branding Strategies Manufacturer Discount Manufacturer Brands Brands Private Label Brands Generics (no brand) Toothpaste Mint Toothpaste Toothpaste Flavor
Brand Equity Brand Equity is a set of assets (and liabilities) linked to a brand’s name and symbol that adds to (or substracts from) the value provided by a product or service to a firm and/or that firm’s customers.
Categories of Assets • Brand name awareness • Brand loyalty • Perceived Quality • Brand Associations • Other Proprietary Brand Assets (e.g., channel relationships, patents,…)
Brand Equity Increases Value Brand Loyalty Brand Awareness Value to Customer Perceived Quality Brand Equity Value to Firm Brand Associations Other Brand Assets
Brand Name Awareness • Anchor to which other associations can be attached • Familiarity-liking • Signal of substance/commitment • Brands to be considered • Examples: • Coke: seal • DuPont: strategic
Brand Loyalty • Reduced marketing costs • Trade leverage • Attracting new customers • Create awareness • Reassurance • Time to respond to competitive threats • Examples: • Delta ad
Perceived Quality • Reason-to-buy • Differentiate/Position • Price • Channel member interest • Extensions • Examples: • Jack in the box: COPS • American Express
Brand Associations • Help process/retrieve information • Reason-to-buy • Create positive attitude/feelings • Extensions – Gerber Singles • Examples: • Nordstrom: Reinvent • 7-Eleven: Belly-flop
Brand Equity and Brand Value • Brand Equity provides value to customers: • Interpretation/processing of information • Confidence in the purchase decision • Use satisfaction
Brand Equity and Brand Value • Brand Equity provides value to firm: • Efficiency and effectiveness of marketing programs • Brand loyalty • Prices/margins • Brand extensions • Trade leverage • Competitive advantage
Brand Building Inhibitors • Pressure to compete on price • Proliferation of competitors • Fragmenting markets and media • Complex brand strategies and relationships • Bias toward changing strategies • Bias against innovation • Pressure to invest elsewhere • Short-term pressures
Brand Equity and Brand Identity Brand Identity Brand Associations Brand Equity
Brand Identity • A brand identity provides direction, purpose and meaning for the brand. It is central to a brand’s strategic vision and the driver of one of the four principal dimensions of brand equity: associations, which are the heart and soul of the brand.
Brand Identity • Brand identity is a unique set of brand associations that the brand strategist aspires to create or maintain. These associations represent what the brand stands for and imply a promise to customers from the organization members.
Brand Identity is more than... • Brand image (how the brand is perceived now) • Brand position (the part of the brand identity and value proposition to be actively communicated to a target audience) • Product attributes • An external perspective (i.e., customer-based)
Brand Identity System • A brand’s identity can be viewed from four perspectives: • brand as product • brand as organization • brand as person • brand as symbol • When we view a brand from all these perspectives, it is easier to develop/reinforce a Value Proposition, Credibility and, ultimately, a Relationship with the customer. HARLEY DAVIDSON SITE
Brand Identity System Brand Identity Brand as Product Brand as Organization Brand as Person Brand as Symbol Value Proposition Credibility Brand-Customer Relationship
Dimensions of Brand Identity • Brand as Product • Product Scope • Product Attributes • Quality/value • Uses • Users • Country of Origin Timex Ad Harley Site
Dimensions of Brand Identity • Brand as Organization • Organization attributes (e.g., innovation, consumer concern, trustworthiness) • Local vs. global Enbridge Home Services Harley Site
Dimensions of Brand Identity • Brand as Person • Personality (e.g., genuine, energetic, rugged,…) • Brand-customer relationships (e.g., friend, adviser,…) Chevy Monte Carlo Ad Harley Site
Dimensions of Brand Identity • Brand as symbol • Visual imagery and metaphors • Brand heritage Apple Ad Harley Site
Value Proposition • Functional Benefits: A BMW car handles well, even on ice. • Emotional Benefits: Excited in a BMW. • Self-Expressive Benefits: Sophisticated and successful in a BMW.
Brand Position • Brand position is the part of the brand identity and value proposition that is to be actively communicated to the target audience and that demonstrates an advantage over competing brands • JC Penney’s position • Girl Scouts position
Brand Position • What elements of BI to include? Candidates: • Core identity: central, timeless essence of the brand (most unique, valuable aspects) • Points of leverage: specific keys to success (e.g., Ronald McDonald) • The value proposition: a key benefit part of the value proposition (functional, self-expressive,…)
Brand identity & position provide value • Guides and enhances brand strategy • Improves brand memorability • Provides meaning and focus to the organization • Provides extension options • Co-branding at Yahoo • In sum, provides: • value proposition • credibility to other brands • basis of relationship