1. Brands and Stakeholder Relationships13
For use only with Duncan texts. © 2005 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin

2. How are brands created and maintained?
Chapter Outline
What does “brand” mean?
How are brands created and maintained?
How are brand relationships created and maintained?
What is brand equity and how is it created?

3. Chapter Perspective: Changing World
Traditional Product Focus
Brand-Focus
Create Customers
Create Customers
Building Brand Relationships With Customers
Building Brand Relationships With Customers
Reward: Sales
Reward: Sales
Reward: More Sales and Profits

4. Opening Case: Siegel & Gale

5. Opening Case: Siegel & Gale
Challenge:
Answer:
Results:
Repositioning Caterpillar
Repositioning Caterpillar
IMC program developed by Siegel & Gale featuring:
New focus on benefits to customers in:
Advertising
Brochures and newsletters
Sale presentations
IMC program developed by Siegel & Gale featuring:
New focus on benefits to customers in:
Advertising
Brochures and newsletters
Sale presentations
Caterpillar sales stabilized and grew
Company culture began to change to fit new identity

6. What is a Brand?
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.

7. What is a Brand?

8. What Does “Brand” Mean?
Brand: A perception resulting from experiences with, and information about, a company or line of products
Branding: The process of creating a brand image that engages the hearts and minds of customers

9. Simplify product handling Organize accounting Offer legal protection
The Role of Brands
Identify the maker
Simplify product handling
Organize accounting
Offer legal protection
Signify quality
Create barriers to entry
Serve as a competitive advantage
Secure price premium

10. Advantages of Strong Brands
Improved perceptions of product performance
Greater loyalty
Less vulnerability to competitive marketing actions
Less vulnerability to crises
Larger margins
More inelastic consumer response
Greater trade cooperation
Increased marketing communications effectiveness
Possible licensing opportunities

11. What is a Brand Promise?
A brand promise is the marketer’s vision of what the brand must be and do for consumers.

12. Brand Elements
These are those trademarkable devices that identify & differentiate the brand.

13. Types of Brand Elements
Brand Names
URLs
Logos and Symbols
Characters
Slogans
Jingles
Packaging

14. Brand Element Choice Criteria

15. Most difficult element for marketers to change
Brand Names
Captures the central theme or key associations of a product in a very compact and economical fashion
Most difficult element for marketers to change
Closely tied to the product in the minds of consumers

16. Brand Names (Examples)

17. Naming guidelines Naming procedures Brand Names
Simplicity and ease of pronunciation and spelling.
Familiarity and meaningfulness.
Differentiated, distinctive, and unique.
Naming procedures
Define objectives
Generate names
Screen initial selection
Study selected names
Research the final name
Select the final name

18. Uniform Resource Locators (URLs)
Specify locations of pages on the Web
Known as domain names
Protect the brands from unauthorized use in other domain names
Cybersquatting- Registering, trafficking in, or using a domain name with bad-faith to profit from:
The goodwill of a trademark belonging to someone else.

19. Indicate origin, ownership, or association
Logos and Symbols
Indicate origin, ownership, or association
Range from corporate names or trademarks written in a distinctive form, to abstract designs that may:
Be completely unrelated to the corporate name or activities

20. Brands are often represented by logos
Logos: Distinctive graphic designs used to communicate a product, company, or organization identity

21. Brand Symbols

22. Special type of brand symbol
Brand Characters
Special type of brand symbol
One that takes on human or real-life characteristics
Introduced through advertising and can play a central role in ad campaigns and package designs

23. Brand Characters

24. Slogans
Short phrases that communicate descriptive or persuasive information about the brand
Function as useful “hooks” or “handles” to help consumers grasp the meaning of a brand
Indispensable means of summarizing and translating the intent of a marketing program

25. Like a good neighbor, State Farm is there
Slogans (Examples)
Like a good neighbor, State Farm is there
Just do it
Nothing runs like a Deere
I’m lovin’ it
We try harder
Always low prices

26. Musical messages written around the brand
Jingles
Musical messages written around the brand
Have catchy hooks and choruses that become permanently registered in the minds of listeners
Enhance brand awareness by repeating the brand name in clever and amusing ways

27. Activity of designing and producing containers or wrappers
Packaging
Activity of designing and producing containers or wrappers
From the perspective of both the firm and consumers, packaging must:
Identify the brand
Convey descriptive and persuasive information
Facilitate product transportation and protection
Assist in at-home storage
Aid product consumption

28. Packaging (Examples)

29. What Does “Brand” Mean? What a Brand Does
Differentiates a Product From Its Competitors
Differentiates a Product From Its Competitors
What a Brand Does
Makes a Promise to Consumers
Makes a Promise to Consumers
Serves As the Driving, Unifying Force Directing All Functional Areas, Including IMC

30. Tales From the Real World
There is an tendency to think of most brands in terms of tangible product categories like soft drinks or breakfast cereal.
However, in the real world, there are many intangible brands. One example is the fact that every four years professionals from major MC agencies are enlisted in the U.S. presidential election campaigns—to help “brand” one of the candidates.

31. Each of These Universities Represents a Brand Image

32. The Power of a Brand Identical cereals tasted by consumers: Vs.
59% Chose Kellogg’s
41% Chose No Brand
Identical TV sets examined by consumers:
Vs.
Consumers willing to pay $75 more for Hitachi than GE

33. Retailers are creating their own brands
Store Brands (a.k.a. house brand or private label): A brand used exclusively by one chain of stores for a line of products made to a store’s specification

34. How Are Brands Created? 3 Key Steps
Determining the Desired Brand Position
Determining the Desired Brand Position
3 Key Steps
Developing Brand Identification
Developing Brand Identification
Creating Brand Image

35. Figure 3-1: Determining the Desired Brand Position

36. IMC In Action: Dr. Scholl’s

37. IMC In Action: Dr. Scholl’s
Challenge:
Answer:
Results:
Revitalize Dr. Scholl’s brand
Revitalize Dr. Scholl’s brand
An IMC program featuring:
Revamped, more fashionable product line
Product placement on Television
New distribution in shoe stores
An IMC program featuring:
Revamped, more fashionable product line
Product placement on Television
New distribution in shoe stores
Some Dr. Scholl’s shoes now sell for $169

38. Insight: Stakeholder Overlap
Organizations must assume that multiple stakeholder groups may be exposed to brand messages. In other words, stakeholders overlap. For example an IMC audit for a bank found that 95 percent of the bank’s employees were also bank customers and that 75 percent owned shares of the bank’s stock. Marketers must make sure that brand messages are acceptable to all stakeholders and that the presentation of the brand image and position is consistent for all of these groups.

39. Aspects Fostered by the Company
Consistency
Consistency
Accessibility
Accessibility
Relationship
Aspects
Commitment
Responsive-ness
Responsive-ness

40. Aspects Arising from the Consumer
Relationship
Aspects
Trust
Liking
Satisfaction
Trust
Liking

41. Maintaining Relationships Is Critical
Existing Brands Account for Most of the Brand Communication With Consumers
Existing Brands Account for Most of the Brand Communication With Consumers
Selling to Existing Customers Is Much Less Costly Than Attracting New Customers
Selling to Existing Customers Is Much Less Costly Than Attracting New Customers
Current Heavy Users Typically Account for Most of a Brand’s Revenue
Current Heavy Users Typically Account for Most of a Brand’s Revenue
Loyal Word of Mouth Advocates Can Be Highly Persuasive With Other Consumers

42. Maintaining relationships is critical
Customer Relationship Management (CRM): The optimization of all customer contacts through the distribution and application of customer information. Simply stated, it is your promise, that no matter how your customers interact with you, you will always recognize who they are

43. Figure 3-5: Relative Importance of Different Stakeholder Groups+

44. What Is Brand Equity and How Is It Created?
Brand equity: The intangible value of a company beyond its physical net assets
Broadening distribution
Broadening distribution
4 Ways of Leveraging
Brand extensions
Brand extensions
Brand licensing
Co-branding
Co-branding

45. Final Note: One of IMC’s most important contributions:
Helping to build trust in brands…
…therefore enhancing consumer relationships
Reason: An organization’s communication with its stakeholders influences everything else it does

46. Bibliography Principles of Advertising & IMC by Tom Duncan 2nd
Edition, Published by McGraw-Hill Irwin.
Event Management For Tourism, Cultural, Business and Sporting Events by Lynn Van Der Wagen Brenda R. Carlos Published by Pearson Prentice Hall.
Advertising Principles and Practice by W. Wells, S.
Moriarty and J. Burnett, Published by Prentice Hall
International.
Integrated Marketing Communications by David
Pickton & Amanda Broderick Published by Prentice Hall.

47. The End: "The man who removes a mountain Begins!
by carrying away small stones."
- Chinese Proverb