1、Introduction to Brand Management Learning Objectives: 1. What is a “brand“? 2. Why is brand management important for customers, company, and shareholders? 3. “Brand Equity” 4. Types of brands What is a brand? Brands have to be understood from both a company-oriented (strategic) and a customer-orient
2、ed (psychological) point of view. American Marketing Association (AMA): A brand is a “name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition.” Many practitioners
3、refer to a brand as more than that as something that has actually created a certain amount of awareness, reputation, prominence among customers David Ogilvy: A brand is an idea in the customers mind“. What can be a “brand”? Physical goods Services Retailers and distributors Online products and servi
4、ces People and organizations Government agencies Sports, arts, and entertainment Geographic locations Ideas and causes Why are brands important to customers? Identification of the source of the product Assignment of responsibility to product maker Promise, bond, or pact with product maker Risk reduc
5、er and signal of quality Reduce costs and effort (in terms of time and thinking) for collecting information and deciding Symbolic message to others: Showing others the status, personality, lifestyle, and values of the buyer Benefits of a strong brand for the company (strategic perspective) 1. Higher
6、 customer loyalty 2. Lower impact of product crises and competitors actions 3. Larger profit margins 4. Smaller drop in brand sales after price increases, strong increase in sales when decreasing the price 5. Increased marketing communication efficiency and effectiveness lower costs 6. Possible lice
7、nsing opportunities 7. More favorable evaluation of new products of the brand 8. Better cooperation and support by retailers, distributors, and alliance partners 9. Better reputation with banks, on financial markets, and as an employer 10. Better relations with general public and media Strong Brands
8、 Deliver Shareholder Value Types of Brands 1. by target audience B2C brands, B2B brands, B2G brands, mixed brands 2. by hierarchical role company brand (also called “corporate brand”), e.g., General Motors house brands (also called “family brands”, “umbrella brands”, or “range brands”): cover a wide
9、 variety of different products, often as a separate legal entity; example: Buick product or service brand: for a specific type of product or service; example: Buick Regal together, corporate brand, house brands, and product brands form a “brand hierarchy ” (also called “brand architecture” or “brand
10、 structure”) 3. by geographical reach provincial brands, national brands (also called “local brands”) regional brands (e.g., for East Asia; for Western Europe; North America; Middle East and Africa) global brands Customer-Based Brand Equity: What makes a brand strong in the customers minds and heart
11、s Learning Objectives: Brand Awareness and Brand Image Kellers Pyramid of Building Customer-Based Brand Equity Application Customer-Based Brand Equity Pyramid 1. Brand Salience (Brand Awareness) The first step for a brand is to become known by the customers. This is called “Brand Salience ” or “Bran
12、d Awareness”. definition Brand Awareness has two components: Brand Recall Brand Recognition Brand Recall is the ability to retrieve the brand from memory when thinking of product category, the needs fulfilled by the category, or the purchase or usage situation. also called “unaided recall” or “spont
13、aneous brand awareness” “Top of Mind” brand: the brand recalled first; has a unique place in the minds (and frequently the hearts) of the customer. Oftentimes, being among the first three brands recalled by customers is very important in memory-based brand choices, that is, when we do not have the b
14、rands we choose from in front of us. Brand must be recalled in the right product categories at the right moment of time. Brand Recognition also called “aided recall” is the ability to accurately confirm the familiarity with the brand That is important in stimulus-based brand choices, when we have al
15、l the brands to choose from in front of us Example: “Which of the following cellphone brands have you heard of”? 2. Brand Image The second step, after consumers are aware of the brand, is to build associations with the brand, also called a “brand image”. Brand Image has two components: A. Associatio
16、ns with the “performance” of the products and services of the brand B. “Brand Imagery ”, that is, non-product related, more emotional associations. 3. Perceived Brand Performance These are specific associations related to the products or services of the brand. What specific associations do customers
17、 with - the product (e.g., reliability, durability, quality of ingredients, technical product features, design) - the service of the brand (e.g., speed of service, cleanliness, friendliness, reliability, competence etc.) - the price (absolute price and price relative to competitors) - taste, sound,
18、touch, design, smell - packaging quality - etc. 4. Brand Imagery Associations - Perceived User profiles Who is perceived to be the “typical customer/user” of the brand, for example, in terms of age, income, gender, personality, status, lifestyle, values (B2C); size of the company, professionalism of
19、 the company, industry (B2B) - Purchase and usage situations when and where do customers think that this brand is typically bought and used - Brand Personality and Values If the brand were a human being, what would be the status, age, gender, personality, values etc. of this person (“brand personali
20、ty”) - Company associations Customer associations with the history and heritage of the brand, its geographical origin, company size etc. - Personal emotional memories related to the brand for example, nostalgic memories with parents 5. Overall Brand Evaluation: Judgments and Feelings (“What about yo
21、u?”) Overall evaluations of the brand (not specific like brand image) “Judgments” are the overall rational evaluation of the brand e.g., overall quality, superiority (is it overall better than other brands?), credibility , expertise , consideration (would you consider buying it?) “Feeling” are the o
22、verall emotional reactions to the brand (e.g., does it make you feel secure, respected by others and yourself, excited?) 6. Resonance Dimensions (“What about you and me?”) Customer Loyalty repeat purchases of the brand Emotional attachment Love for the brand Proud to own the brand Sense of community
23、 Does the consumer feel part of a brand community? Active engagement Join club Visit brand forum, join brand community on social media Positioning: Choosing a Winning Brand Position Learning Objectives: The 3 steps of Marketing: Segmenting, Targeting, Positioning (STP) Points of Parity and Points of
24、 Difference The 6 criteria of choosing points of difference The Brand Mantra Positioning Maps Marketing = S T P Segmenting: Dividing the total market for a product or service category into different customer groups (“market segments”) with similar needs and wants Targeting: Choosing one or more of t
25、hese segments as target group(s) of the brand Positioning simple, acoustically and visually easy to recognize; repetitive syllables; easy to pronounce; unique; rich in associations; interesting, emotional; related to product Meaningfulness Brand elements may take on all kinds of meaning. Two particu
26、larly important criteria General information about the nature of the product category (“descriptive content”) Specific information about particular attributes and benefits of the brand (“persuasive content”). The first dimension is an important determinant of brand awareness; the second, of brand im
27、age. Likability Do customers find the brand element aesthetically appealing? Does it spontaneously evoke positive emotions? Descriptive and persuasive elements which make a brand element likable reduce the burden on marketing communications to build awareness. Check for unwanted associations . in va
28、rious languages use of similar or same brand name by other companies in unwanted contextTransferability How useful is the brand element for brand extensions into new product categories? To what extent can the brand element be used across across geographic boundaries? Transferability of brand name na
29、turally limited by different scriptures around the world (see transliteration) and laws requiring translation (e.g., Quebec) Transferability of symbols limited by cultural differences Transferability is specific to the branding element: Mr. Cleans brand character internationally well transferable, t
30、he name has to be translated Adaptability of a brand element over time (in the existing product categories and countries) Adaptability=Openness to future changes in the branding itself and to accommodating new brand positioning Protectability Marketers should: 1. Choose brand elements that can be le
31、gally protected domestically and internationally. 2. Formally register chosen brand elements with the appropriate legal bodies. 3. Vigorously defend trade marks from unauthorized competitive infringement. Are different from country to country. In many countries, purely descriptive and non-distinctiv
32、e terms (e.g. “car”) alone names of living individuals alone national and international symbols and names (e.g., national flag, UN flag, red cross) misleading terms (e.g., “sugar sweet” for an artificial sweetener) and “predatory” brands (names, symbols, colours that are intentionally similar to ano
33、ther brand with a great image in the same product or service category) morally offensive brand names cannot be registered as trademarks. Simple and easy in daily use for consumers Easy to pronounce Easy to write (also URL) Easy to understand Use across media: Problems name too long for many media sp
34、ecial effects which require high print quality, a certain background or moving images (e.g., 3D-Logos) typography or logo does not work well in online environment No problems in everyday use by executives, employees, and agencies No unintended meanings with other stakeholder groups of the company (e
35、.g., shareholders, financial analysts) No complex design guidelines, graphics files vice versa for men (Klink 2009). For other products, both men and women prefer brands with front vowels (e.g. flashlight, mouthwash) or back vowels (e.g. umbrella), respectively.Especially for food, it is important that the product experience is consistent with the taste expectations which consumers form based on the letters in the brand name, e.g., creamy, smooth, rich texture!back vowels carbonated drinks: front vowels, plosive consonants (b, c=k, d,g, k, p, q, t) sweet!front vowels
