Marketing and Brand Management MBM721S Marketing and Brand Management Vacation School 20th August 2018 Donald Hlahla

Programme Tutorial letter Study Guide/Prescribed Text/Reading/Other references Approach to learning Theory-key areas Practice-Namibian Context Analysis-Linking theory and Practice Learning Outcomes Page 5 of the Study Guide

Programme cont-- Assignments Understanding the question Evidence of wide reading Practical application to the context Presentation

Discuss This implies insight and discretion when applying and assessing knowledge. The different aspects of the matter or statement are examined or stated analytically. Evaluate Assess a matter on the basis of certain criteria. Make a value judgment about the matter and give reasons for your views. Explain State the matter simply so that the reader will understand it. Use illustrations, descriptions and examples and provide reasons for decisions or results. Give an overview Present a summary (abridged version) of data in a logical and systematic manner. List / name Write down only the information required, no discussion is necessary. Summarize Identify the key aspects of the whole, while retaining the essence of the matter. Give information without criticising or discussing it. State Give information without criticising or discussing it. Comment Spoken or written statement that expresses and opinion about someone or something-a personal view of. Outline General description or plan showing essential features of something without giving details.

Key Aspects of the Course Assumption that you have done first level marketing This level is generally considered as Strategic Marketing Material in the study Guide sufficient. Most of the work derives from Philip Kottler. Go through key areas identified in the Study Guide.

What is a brand A brand is a name, term, sign, symbol, design or a combination of the above to identify the goods or service of a seller and differentiate it from the rest of the competitors A brand consists of; Tangible attributes and Intangible attributes Brand identity is the marketer’s promise to give a set of features, benefits and services consistently Brand Building involves all the activities that are necessary to nurture a brand into a healthy cash flow stream after launch

Advantages of branding Easy for the seller to track down problems and process orders Provide legal protection of unique product features Branding gives an opportunity to attract loyal and profitable set of customers It helps to give a product category at different segments, having separate bundle of benefits It helps build corporate image It minimizes harm to company reputation if the brand fails

Brand building activities E.g. Product development Packaging Advertising Promotion Sales and distribution

Tangible attributes of a brand E.g. Product Packaging Labeling Attributes Functional benefits

Intangible attributes of a brand E.g. Quality Emotional benefits Values Culture Image

Brand Equity When a commodity becomes a brand, it is said to have equity Brand equity is the premium it can command in the market Difference between the perceived value and the intrinsic value

What happens when equity increases? Commodity Brand Power Brands Presence + Personality

What happens when brands have high equity? The company can have more leverage with the trade The company can charge a premium on their product The company can have more brand extensions The company can have some defense against price competition

Brand Loyalty Pyramid Committed buyer Likes the brand. Considers 111 Likes the brand. Considers it a friend Satisfied buyer. Would incur costs to switch Satisfied buyer/no reason to change Switchers/Price sensitive

Brand building How does one build a brand? Distinguishing it from others – value proposition Brand promise must match brand delivery Value proposition Broad positioning Specific positioning Value positioning Creating the brand Choosing a brand name Develop rich associations and promises Managing customer brand contact to meet and exceed expectations

Considerations in choosing a brand name What does the brand name mean? What associations / performance / expectations does it evoke ? What degree of preference does it create?

A brand name should indicate Product benefits Product quality Names easy to remember, recognize, pronounce Brand associations ‘owned word’ Slogans Colors Symbols and logos Product category Distinctiveness Should not indicate poor meanings in other markets or languages

Brand Status Step up advertising Cash Cow. Need to M Step up advertising Cash Cow. Need to Sustain brand building activities Troubled brand Product upgrading required New Product Or Product should be phased out FAMILIARITY

Other issues on brand Brand ambassador:- Giving a face and personality to the brand that is expected to be rubbed off from the brand ambassador Brand vitality:- Differentiation in consumer’s need and Differentiation relevant to consumer’s need (see cars for Africa) Brand pitfalls:- Brand experience must match brand image and Calls for managing every brand contact

Stages in the adoption process Awareness Interest and information Evaluation Trial Adoption Post adoption behaviour (see tripe and wine)

BRAND ELEMENTS CHOICE CRITERIA T There are six cr main brand elements for choice criteria

The Six brand elements for choice criteria Memorable Meaningful Likable- are “brand building” Transferable Adaptable Protectable- “defensive” and deal with how to leverage and preserve the equity in a brand element in the face of opportunities and constraints.

Example of a brand

Brand elements choice criteria explained Memorable:-How easily is the brand element recalled and recognized. Short brand names. Meaningful:- Is the brand element credible and suggestive of the corresponding category. Inherent meaning Likable:- How aesthetically appealing is the brand element. Concrete brand names.

Brand elements choice criteria cont-- Transferable:- Can the brand element be used to introduce new products in the same or different categories. Brand equity across geographic boundaries and market segments Adaptable:- How adaptable and updatable is the brand element. Changed to synchronize with the changing consumer perceptions and preferences Protectable:- How legally protectable is the brand element. How competitively protectable. Names that become synonymous with product categories.

Advantages and disadvantages of international Marketing Larger markets Competitive weapon High cash flows Achieve global brand equity Technological advancement etc Disadvantages Legal/political/government bureaucracy Language/culture/customer needs/attitudes Currency fluctuations/monetary regulations (p135 Guide)

Vertical solutions marketing Definition: p158 Guide Vertical marketing systems- distribution structure (see types) Solution selling- ‘marriage commitment’ Types of vertical marketing systems Administered vertical system-based on Power Vertical contractual system-franchise model Corporate vertical system-One owner overarching –(monopolies) (See advantages and disadvatages-p159 Guide)

Thank you and best wishes Please refer to the Study Guide, Prescribed and Recommended texts for details dhlahla@gmail.com