NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 CREATING THE BRAND Integrated Marketing / Spring 2016 M.S. in Integrated Marketing

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Our Guest… Jerry Gottlieb

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Let’s Start With You.. Student Presentations  Baidu – Nora / Yuexin  Wounded Warrior Foundation – Chenkai / Jiawei  Toyota Prius – Huiman / Yafeng  Overstock.com – Jing / Shiqi  Li-Ning Sneakers – Talya / Yangyang  Stride Rite Shoes – Jiayi / Carolina

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Learning Objectives 1. What is a brand, and how does branding work? 2. What is brand equity, and how is it built, measured, and managed? 3. What are the important decisions in developing a branding strategy? 4. Why is it important for companies to grow the core of their business?

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 What is a Brand?  American Marketing Association  A brand is “a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors"  BUT it goes beyond that

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 What is a Brand?

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 The Role of Brands  Brands’ role for consumers Reduce risk Simplify decision making Take on personal meaning Become part of identity Take on human-like characteristics

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 The Role of Brands  Brands’ role for firms Simplify product handling Organize inventory & accounting Offer legal protection Create brand loyalty Secure competitive advantage

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 The Scope of Branding  Branding  The process of endowing products and services with the power of a brand

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Defining Brand Equity  Brand equity  What aspects of the brand are unique and make it great to the consumer  Added value endowed to products with consumers

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Defining Brand Equity  Customer-based brand equity  The differential effect brand knowledge has on consumer response to the marketing of that brand  Brand promise Differences in consumer response Brand knowledge Perceptions, preferences and behavior

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Building Brand Equity  Brand equity drivers Brand element or identity choices Product & accompanying marketing Other associations

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Building Brand Equity  Brand element choice criteria MemorableMeaningful Likable TransferableAdaptable Protectable

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Internal Branding  Activities and processes that help inform/inspire employees about brands  Your employees have to understand the brand better than anyone – and they all have to have the same opinion  Holistic marketers train and encourage distributors and dealers to serve their customers well

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Measuring and Managing Brand Equity Managing your brand  Brand audit  Brand-tracking studies  Brand valuation

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Managing Brand Equity  Brand reinforcement  Requires the brand always be moving forward  Brand revitalization  Almost any kind starts with the product

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Brand revitalization

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Devising a Branding Strategy Can develop new brand elements for new product Can apply some of existing brand elements Can use a combination of new & existing brand elements

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Branding New Products  Brand extension  Sub-brand  Parent brand  Master/family brand  Line extension Category extension Brand line Brand mix Branded variants Licensed product

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Branding Decisions  Alternative branding strategies Individual or Separate family brand names Corporate umbrella or company brand name Sub-brand name

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Branding Decisions  House of brands  A branded house  Flagship product

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Brand Portfolios  The set of all brands and brand lines a particular firm offers for sale in a particular category or market segment Flankers Low-end entry level Cash cows High-end prestige

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Brand Extensions  Introducing a host of new products under a firm’s strongest brand names Improved odds of new-product success Positive feedback effects Risk of brand dilution May harm parent brand Firm forgoes creating new brand

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Customer Equity  The sum of lifetime values of all customers  Is affected by customer acquisition, retention, and cross-selling

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Growth Strategies Building market share Developing committed customers and stakeholders Building a powerful brand Innovating new offerings and experiences Expanding internationally Acquisitions, mergers, and alliances Building an outstanding reputation for social responsibility Partnering with government and NGOs

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Growing the Core Make the core of the brand as distinctive as possible Drive distribution through both existing and new channels Offer the core product in new formats or versions

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016

Tonight’s Learning Objectives 1. How can a firm develop and establish an effective positioning? 2. How are brands successfully differentiated? 3. How do marketers identify and analyze competition? 4. How can market leaders, challengers, followers, and nichers compete effectively?

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Developing and Establishing a Brand Positioning  Understanding Positioning  The act of designing a company’s offering and image to occupy a distinctive place in the minds of the target market  Value proposition

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Value proposition

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Choosing a Competitive Frame of Reference  Competitive frame of reference  Defines which other brands a brand competes with and which should thus be the focus of competitive analysis  Category membership and industry  Shares of market, mind, and heart

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Identifying Points-of-Difference and Points-of-Parity  Points-of-difference (PODs)  Attributes/benefits that consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016  POD criteria Identifying Points-of-Difference and Points-of-Parity Desirable to Consumer Deliverable by Company Differentiating From Competitors

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Identifying Points-of-Difference and Points-of-Parity  Points-of-parity (POPs)  Attribute/benefit associations that are not necessarily unique to the brand but may in fact be shared with other brands

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016  POP forms Identifying Points-of-Difference and Points-of-Parity Category Attributes & Benefits essential to a credible offering in the category Correlational Potential negative associations from the existence of positive brand associations Competitive Associations designed to overcome perceived weakness of the brand, in light of the competitors POD

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Identifying Points-of-Difference and Points-of-Parity  Multiple Frames of Reference  Straddle Positioning

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Choosing Specific POP’s And POD’s  Highlight competitive advantage  Means of differentiation  Perceptual map  Emotional branding

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Perceptual Map

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Brand Mantras Brand Essence Core Brand Promise Personally Meaningful and Relevant

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Establishing a Brand Positioning  Communicating category membership Announcing category benefits Comparing to exemplars Relying on product descriptor

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Alternative Approaches to Positioning  Brand narratives and storytelling  Brand story  Consumer journey  Visual language  Narrative expression  Brand role in consumer’s life  Cultural branding

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Brand Narratives & Storytelling

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Cultural Branding

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Competitive Strategies for Market Leaders  Expanding total market demand  Protecting market share  Increasing market share

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Expanding Total Market Demand  New customers  More usage

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Protecting Market Share  Proactive marketing  Responsive anticipation  Finds a STATED need and fills it  Creative anticipation  DISCOVERS solutions customers did not ask for

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Protecting Market Share  Creative anticipation  DISCOVERS solutions customers did not ask for DqLRu8eKUE TFLILCs

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Protecting Market Share  Defensive marketing Position defense: Own the key category benefit Flank defense: Create products to support a possible weakness Preemptive defense: Attack first – and differing by competitors Counter-offensive defense: Head-on attacks; force your competition to defend themselves Mobile defense: Shifting the company focus to a new need Contraction defense: Giving up weaker positions to defend a strength

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Increasing Market Share  The cost of buying higher market share through acquisition may far exceed its revenue value Possibility of provoking antitrust action Pursuing wrong marketing activities Economic cost Increased market share effect on quality

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Market-Challenger Strategies  Defining the strategic objective and opponent(s) A market challenger can attack: The market leader Underfunded firms its own size Small local and regional firms An industry as a whole

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Market-Challenger Strategies  Choosing an attack strategy – Frontal attack – Head on assault: Challenges product, advertising, price, distribution – Flank attack – Attacking a competitors “gap” – Encirclement attack – Capturing a wide slice of territory – Bypass attack – Avoiding a head-on attack by attacking in areas where the competition is not – new products, new tech, new areas – Guerilla attack – On-going, small attacks

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Market-Challenger Strategies – Frontal attack – Head on assault: Challenges product, advertising, price, distribution 85YQKmgiTo R8

NYU I M.S. in Integrated Marketing I Integrated Marketing I Fontana I Spring 2016 Market-Follower Strategies Cloner Imitator Adapter