Class 2: Branding

Content What is a brand? To Understand Branding Issue How to Create and Maintain Brand Brand Position Communication and Branding

What is a Brand? brand: “A perception resulting from experiences with, and information about, a company or a line of products.” brand messages: all the information and experiences that impact how customers and other stakeholders perceive the brand marketing communications: how to create, deliver, manage, and evaluate brand messages

What is branding? “I am...” “You are...” Branding: The process of creating a brand message and image that engages the ‘hearts’ and ‘minds’ of customers Why brand is important?

Identical cereals tasted by consumers: 59% Chose Kellogg’s41% Chose No Brand VS. The Power of Brand Identical TV sets examined by consumers: Consumers willing to pay $75 more for Hitachi than GE VS.

BRANDING ISSUE BRAND BRAND MESSAGE/ BRAND COMMUNICATION BRAND IDENTITY/ BRAND IMAGE BRAND KNOWLEDGE BRAND EQUITY What are they?

BRAND MESSAGE/BRAND COMMUNICATION

Brand Identity & Brand Image brand identity: what the brand stands for; the way it is describe in which all characteristics and actions can be traced back brand image: the customers’ perception of brand identity “I am...” “You are...”

Brand Image The types of associations that come to the consumer’s mind when contemplating a particular brand Type of Brand Associations Attributes Product-Related (e.g., color, size, design features) Non-Product-Related (e.g., Price, Logo User and Usage Imagery) Benefits FunctionalSymbolicExperiential Overall evaluation (Attitude) Attribute + Benefit Brand Image related to evaluation of attribute and benefit

Brand Awareness An issue of whether a brand name comes to mind when consumers think about a particular product category and the ease with which the name is evoked Recognition? Recall?

Brand recognition do they recognize our brand?

Brand recall can they bring our brand back from memory? fast food ? shampoo ? car ? tissue paper ? furniture ?

Brand Knowledge: Origin of Brand Equity Brand Knowledge Brand Recognition Brand Recall Brand Awareness Attributes non-product related Overall Evaluation & Attitude Benefits symbolic experiential Brand Associations Uniqueness of Brand Association product related functional Brand Image

Brand Equity Brand Equity: A set of characteristics unique to a brand, which allows the company the opportunity to charge a higher price and retain a market share that is grater than would otherwise be expected for an undifferentiated product. intangible difference... Dissuade consumer from looking for a cheaper product.

E How to enhance brand equity Broadening distribution 2. Brand extensions/ flanker brand 3.Co-branding 4. Brand licensing

E How to enhance brand equity Broadening distribution Example: Starbucks’ whole bean/ ground bean packages

How to enhance brand equity... Example: P&G Company 2. Brand extensions/ flanker brand Extension of an existing brand to create another product or brand with increased market share. The new product may be a different size, flavor, or type but still falls within the same category of products. Source:

How to enhance brand equity... 3.Co-branding Example: Walls & Oreo, M&M, Hersheys, Chips Ahoy/ Nike- apple running sensor

E How to enhance brand equity Brand licensing Example: Using the brand name or logo of well-known brand on a wide range of products of another brand

How to create & maintain brands? Determine brand position 1 Develop brand identification 2 Create brand image 3

1. Determine Brand position brand position: the standing of a brand in comparison with competitors in customers’ minds Source:

Positioning Map positioning map: (perceptual mapping) mapping technique that indicates how customers perceive brands on the basis of various criteria

Japanese RestaurantsPositioning Map Mid price Higher price BuffetGeneralistSpecialist

Positioning Strategies possible when a brand defines, creates or owns a category positioning based on a generic feature that competitors haven’t talked about based on element that is unique to your brand (can be tangible & intangible) Category Positioning Pre-emptive Positioning Image Positioning Auto sleeper, WINCHCOMBE, it born to be car-home

based on created associations with your brand based on advantages that allow a product to satisfy needs, wants, desires Unique product feature Positioning Benefit Positioning

2. Develop Brand Identification Choose and select your brand identity: Brand elements include brand names, symbols, logos, slogans, packaging, etc. 3. Create Brand Image An impression created by brand messages & experiences of a brand. Like a personality...

Purposeful Dialogue The four Rs... Easy access to those who can solve a problem company acknowledgement of purchases and the customers’ interaction history with the company customer satisfaction following a customer initiated company contact (make customer impressed) showing consideration and not hammering them with advertisements and messages in which they have little interest

How Brand Communication Works

Brand Touch Points

Unexpected customer touch point

Intrinsic customer touch point

Company created customer touch point

Customer initiated customer touch point

The end