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BUILDING

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  1. PART BUILDING 4 STRONG BRANDS Marketing Management - An Asian Perspective 4th Edition

  2. Chapter CREATING 9 Brand Equity Marketing Management - An Asian Perspective 4th Edition

  3. In this chapter, we address the following questions: • What is a brand & how does branding work? • What is brand equity? • How is brand equity built, measured & managed? • What are the important decisions in developing a branding strategy? Marketing Management - An Asian Perspective 4th Edition

  4. A Strong Brand – an example • GOOGLE: Play on word googol - huge amount of data online • Focus on searches • Fast, reliable service Makes money: • Paid listings • Licensing Ultimate sign of success: • Verb “to google” is to search online • “Brand of the Year” 2002 Googlefounders Larry Page & Sergey Brin Marketing Management - An Asian Perspective 4th Edition

  5. What is Brand Equity?- The Role of Brands Brand name, sign, symbol, design to identify goods/services of seller & differentiate from competitors’ goods/services Marketing Management - An Asian Perspective 4th Edition

  6. What is Brand Equity?- The Role of Brands • Identify product source & firm • Perform valuable functions for firm • Signal quality: if satisfied, re-buy • Valuable legal property Marketing Management - An Asian Perspective 4th Edition

  7. The Brand Report Card World’s strongest brands 10 attributes 1. Benefits consumers truly want 2. Stays relevant 3. Pricing - on consumer perceptions of value 4. Properly positioned 5. Consistent 6. Portfolio makes sense 7. Use marketing to build equity 8. Managers understand its meaning to consumers 9. Given proper, sustained support 10. Sources of brand equity monitored Marketing Management - An Asian Perspective 4th Edition

  8. Challenges: Asian brands - global ambitions What is Brand Equity?- The Role of Brands • Overcome inherent parochialism • Culture sustains global perspective • Keep Asian brand identity - go global • Rise above cheap low-quality image • Think global despite being small Marketing Management - An Asian Perspective 4th Edition

  9. What is Brand Equity?- The Scope of Branding • Branding: Endow products- brand power • Brand value – convince consumers of meaningful differences among brands • Related to attributes of product • Branding applied wherever consumer has a choice Marketing Management - An Asian Perspective 4th Edition

  10. What is Brand Equity?- The Scope of Branding In Hong Kong, Oxfam brands idea to stop poverty through the “Make Trade Fair” campaign Marketing Management - An Asian Perspective 4th Edition

  11. What is Brand Equity? - The Scope of Branding The Joseph Conrad suite - Oriental Hotel, Bangkok • Brands itself - premium image • Appeals to guests who seek superior service Marketing Management - An Asian Perspective 4th Edition

  12. What is Brand Equity?- Defining Brand Equity • Brand equity - added value to products & services • Important intangible asset - psychological & financial value • Customer-based brand equity • Effect brand knowledge has on consumer response to marketing of that brand Marketing Management - An Asian Perspective 4th Edition

  13. What is Brand Equity?- Defining Brand Equity 3 keys to customer-based brand equity • Differences in consumer responses • Consumer’s knowledge about brand • Perceptions, preferences, & behavior related to marketing of brand • Strong brand - right experiences & marketing - desired brand knowledge Marketing Management - An Asian Perspective 4th Edition

  14. Table 9.1 Marketing Advantages of Strong Brands Marketing Management - An Asian Perspective 4th Edition

  15. What is Brand Equity?- Brand Equity as a Bridge • Marketing expense- invest in brand knowledge • Brand - promise to deliver predictable product/service performance • Brand promise • Marketer’s vision of what brand must be & do for consumers Marketing Management - An Asian Perspective 4th Edition

  16. What is Brand Equity?- Brand Equity as a Bridge 4 types of East Asian assets • Golden Assets: Tiger Balm, Boh Tea • Acquired Assets: Raffles Hotel, Infosys • Potential Assets: Haier, Tsingtao • Combine Acquired & Potential Assets Marketing Management - An Asian Perspective 4th Edition

  17. A Checklist for Developing Global Asian Brands Checklist: Develop Asian brand to global power brand: • Marketing - main driver for global fame? • Brand - most valuable financial asset? • Brand strategy - to global premier league? • Marketing staff - experience & ambition to match? • Creative marketing communications resources/talents? • Retain control of global brand strategy of marketing? • Embrace R&D & product enhancements with passion? • Financial resources to compete in global game? Marketing Management - An Asian Perspective 4th Edition

  18. What is Brand Equity?- Brand Equity Models BAV Power Grid BRAND ASSET VALUATOR (BAV) • Comparative measures of brand equity of thousands of brands across hundreds of different categories • 4 key components of brand equity: • Differentiation • Relevance • Esteem • Knowledge Marketing Management - An Asian Perspective 4th Edition

  19. What is Brand Equity?- Brand Equity Models BAV Power Grid Differentiation + Relevance = Brand Strength Brand’s future value Esteem + Knowledge = Brand Stature Brand’s past performance • Both form Power Grid: stages in cycle of brand development • New brands - low levels on all 4 pillars • Leadership brands - high levels on all 4 pillars • Declining brands - high knowledge Marketing Management - An Asian Perspective 4th Edition

  20. Figure 9.1BAV Power Grid Marketing Management - An Asian Perspective 4th Edition

  21. Brand equity 5 categories of brand assets & liabilities linked to brand that form value of product to firm and/or its customers Brand loyalty Brand awareness Perceived quality Brand Associations Other proprietary assets What is Brand Equity?- Brand Equity Models AAKER MODEL Marketing Management - An Asian Perspective 4th Edition

  22. What is Brand Equity?- Brand Equity Models AAKER MODEL • Brand identity - brand associations - what brand is & promises to customers • 12 dimensions, 4 perspectives: • brand-as-product • brand-as-organization • brand-as-person • brand-as-symbol Marketing Management - An Asian Perspective 4th Edition

  23. What is Brand Equity?- Brand Equity Models AAKER MODEL Brand identity = core + extended • Core identity - timeless essence of brand - constant - new market/product • Extended identity - brand identity elements - cohesive & meaningful groups Marketing Management - An Asian Perspective 4th Edition

  24. What is Brand Equity?- Brand Equity Models BRANDZ BRANDZ model: BrandDynamics pyramid • Build brand - series of steps, each upon success of previous step • Objectives at each step: • Presence • Relevance • Performance • Advantage • Bonding Marketing Management - An Asian Perspective 4th Edition

  25. What is Brand Equity?- Brand Equity Models BRANDZ • Bonded consumers (pyramid top) • Strong relationships with brand • Spend more on brand than those below • More consumers at lower levels • Challenge for marketers - develop programs - help consumers move up pyramid Marketing Management - An Asian Perspective 4th Edition

  26. What is Brand Equity?- Brand Equity Models BRAND RESONANCE BRAND RESONANCE • Brand building - ascending, sequential series of steps, bottom to top: • Identify, associate brand- product/need • Establish brand meaning in customers • Elicit proper responses • Convert response to active loyal relationship between customers & brand Marketing Management - An Asian Perspective 4th Edition

  27. What is Brand Equity?- Brand Equity Models BRAND RESONANCE 6 “brand building blocks” • 4 steps - 6 “brand building blocks” • Blocks - brand pyramid • If right blocks in place, reach top pyramid • Brand equity created • Brand salience • Brand performance • Brand imagery • Brand judgments • Brand feelings • Brand resonance Marketing Management - An Asian Perspective 4th Edition

  28. Figure 9.2 Brand Resonance Pyramid Marketing Management - An Asian Perspective 4th Edition

  29. Building Brand Equity- Overview • Building Brand Equity - right brand knowledge with right consumers • 3 brand equity drivers: • Initial choices for elements make up brand • Product, marketing activities & programs • Other associations passed to brand when linked to other entity Marketing Management - An Asian Perspective 4th Edition

  30. Building Brand Equity- Choosing Brand Elements • Brand elements – trademarkable devices - identify & differentiate brand • Strong brands - multiple brand elements • Nike has the “swoosh” logo, the “Just Do It” slogan & the “Nike” name • Brand elements - build as much brand equity as possible Marketing Management - An Asian Perspective 4th Edition

  31. Building Brand Equity- Choosing Brand Elements • Memorable • Brand - easily recalled, recognized? • Name - look distinctive – memorable • Meaningful • Values consumers seek • Asia Pacific - probe taboos, religious connotations - colors, numbers Marketing Management - An Asian Perspective 4th Edition

  32. Building Brand Equity- Choosing Brand Elements Eg: Memorable Korean electronics manufacturer LG incorporates name in slogan, “Life’s Good” Simple-to-pronounce letter-name reinforced by slogan & logo elements makes brand name memorable Marketing Management - An Asian Perspective 4th Edition

  33. Building Brand Equity- Choosing Brand Elements Eg: Meaningful Cathay Pacificuses Chinese calligraphy for brushwing logo & ad visuals to suggest “Heart of Asia” heritage A Cathay Pacific bus ad promotes Hong Kong as a destination Marketing Management - An Asian Perspective 4th Edition

  34. Building Brand Equity- Choosing Brand Elements • Likeability • Is it likable visually, verbally? • Eg: Fuji/Xerox Shagaku, a handheld copier, fits image well • Transferable • Can be used to introduce new products in other categories? Marketing Management - An Asian Perspective 4th Edition

  35. Building Brand Equity- Choosing Brand Elements • Adaptable • How adaptable & updatable is brand? • Asian brands - retain traditional values as they modernize • Eg: Dutch Baby – 1965 Dutch Baby; • 2000 Dutch Lady - new name - brand market strength- more modern image Marketing Management - An Asian Perspective 4th Edition

  36. Building Brand Equity- Choosing Brand Elements • Protectible • How legally protectible is it? • Unique brand name can be intimately identified with product category • Eg: Scotch Tape & Post-it notes Marketing Management - An Asian Perspective 4th Edition

  37. Building Brand Equity- Choosing Brand Elements Eg: Protectible In China, local coffee shop, U-LIKE COFFEE, copied Starbucks - Chinese name, logo & store design. Starbucks sued & won. Marketing Management - An Asian Perspective 4th Edition

  38. Building Brand Equity- Choosing Brand Elements DEVELOPING BRAND ELEMENTS • Elements to identify products - plenty • Likeability & appeal- critical • Play number of brand-building roles • Less concrete benefits, essential that elements capture brand’s intangible characteristics Marketing Management - An Asian Perspective 4th Edition

  39. Building Brand Equity- Choosing Brand Elements • Slogans - powerful brand element • “Hooks”: what is brand & special quality • Summarize, translate marketing intent Eg: Inherent brand meaning in slogans “A Great Way to Fly” Singapore Airlines “Connecting People” Nokia Marketing Management - An Asian Perspective 4th Edition

  40. Building Brand Equity- Designing Holistic Marketing Activities • Brand contact - product-related experience with brand, category or market • Holistic marketers - 3 themes - brand-building marketing programs: • Personalization, integration & internalization Marketing Management - An Asian Perspective 4th Edition

  41. Building Brand Equity- Designing Holistic Marketing Activities PERSONALIZATION • Internet– chance- personalize marketing • Experiential, one-to-one, permission marketing • Personalizing marketing - ensure brand & marketing relevant - most customers possible – challenging Marketing Management - An Asian Perspective 4th Edition

  42. Building Brand Equity- Designing Holistic Marketing Activities • Brand management in Asia - brand relationships with customers • In Asia: Trusted agent- friend, not outsider • Brand-driven customer relationship management – establish relative positions for brand & customer • Relationship brand manager- find products for customers Marketing Management - An Asian Perspective 4th Edition

  43. Building Brand Equity- Designing Holistic Marketing Activities • Integrating marketing - mix & match activities to maximize effects • Brand awareness - identify brand in different conditions - recognition or recall • Brand image - perceptions & beliefs through associations in memory Marketing Management - An Asian Perspective 4th Edition

  44. Building Brand Equity- Designing Holistic Marketing Activities INTERNALIZATION • Internalperspective - staff understand brand & see how to help brand equity • Internal branding: inform, inspire staff • Brand bonding: customers experience brand promise Marketing Management - An Asian Perspective 4th Edition

  45. Building Brand Equity- Designing Holistic Marketing Activities INTERNALIZATION • Brand promise delivered if all in company lives the brand • Customer experience with staff influences brand perception: • Eg: Inflight service by the Singapore Girl • Critical ingredient of Singapore Airlines’ branding success Marketing Management - An Asian Perspective 4th Edition

  46. Applying Permission Marketing • 5steps to effective permission marketing: • Offer incentive to volunteer • Offer teaching materials on product • Reinforce incentive: permission maintained • Offer more incentives for more permission • Over time, leverage permission to change consumer behavior toward profits Marketing Management - An Asian Perspective 4th Edition

  47. Building Brand Equity- Leveraging Secondary Associations • Brand associations - linked to entities - create “secondary” brand associations • Brand equity created - link brand to other information in memory - conveys meaning to consumers Marketing Management - An Asian Perspective 4th Edition

  48. Figure 9.3 Secondary Sources of Brand Knowledge Marketing Management - An Asian Perspective 4th Edition

  49. Measuring Brand Equity- Brand Audits Brand audit • Consumer-focused - assess brand health, equity sources - improve & leverage it • Affect strategy & brands’ performance Brand audits - 2 steps: • Brand inventory • Brand exploratory Marketing Management - An Asian Perspective 4th Edition

  50. Measuring Brand Equity- Brand Audits BRAND INVENTORY • Current profile - how products marketed & branded • What current perception may base on BRAND EXPLORATORY • Understandthoughts on brand, category – Identify brand equity sources • Qualitative research techniques Marketing Management - An Asian Perspective 4th Edition