GENERIC PRODUCTS - BRANDED PRODUCTS

Generic product The opposite of branding

Brand
A BRAND is the combination of NAME WORDS SYMBOLS DESIGN that identifies the product & its company and differentiates it from competition.

Brands give a buyer ease of identification Brands are developed over time through
Advertisements containing consistent messaging Recommendations from friends, family members or colleagues Interactions with a company and its representatives Real-life experiences using a product or service (the most important element of establishing a brand)

Once developed, brands provide an umbrella under which many different products can be offered providing a company tremendous economic leverage and strategic advantage in generating awareness of their offerings in the marketplace

3 Important Branding Concepts

Brand Promise The commitment you make to prospects and customers Customers Question - If I engage in a relationship with a company, what can I expect? The primary benefit of a product or service Companies with the clearest brand promises have the strongest brands

3 Important Branding Concepts

Brand Attributes include all the unique ways to deliver brand promise The feature set that describes the customers experience with the company Common attributes might include unique quality, service standard, innovation and flexibility

3 Important Branding Concepts

Brand Personality Describes the human characteristics people experience when they encounter a brand The strongest influence on the emotional connection people feel toward your brand Often a brand personality matches the customers self-perception of their own personality or a personality they aspire to Common brand personalities include ruggedness, sophistication, excitement, competence or sincerity.

Four Components of Brand Value

BRAND = Stories, Images, Associations
Reputation Value
Stories imply perceived quality of product features

Experiential Value
Stories shape experience of the product

THE PRODUCT (objective features, quality standards, augments) Relationship Value

Stories imply that firm is a long-term partner that will attend to customer interests

Symbolic Value
Stories imbue the product with values and identities

Source: Holt (2003), HBSP

Strong Brand- Brand Knowledge

Associative Network Memory Model
Stored Information and concept (Shoes) Strength of association between Info and concepts (GP-GP)

Strong Brand- Brand Knowledge

Brand Knowledge
Brand Awareness Depth & Breadth Brand Image Strength, Favorability, & Uniqueness

Marketing Advantages of Strong Brand

Price Fall Elasticity (Bata) Trading Advantage
(Unilever, Coke)

Market Communication Efficiency (Nokia) Licensing/Franchise

(Pizza Hut, Baskin Robbins, KFC)

Brand Extension (Dell

Printer)

Brand Equity
Brand equity is the value associated with the tendency to purchase a product from a particular company in a market where all products are identical.

Stated another way, brand equity is the additional price a firm can charge for its product over the competition assuming the products are the same.

Associations Perceived Quality

Proprietary Brand Assets

Awareness Enhances the firms Marketing efficiency & effectiveness Brand loyalty Prices/Margins Trade Leverage Competitive Adv

Loyalty Enhances Customers Interpretation Confidence Use Satisfaction

Brand Equity

Sources of Brand Equity

Brand Awareness- recall and recognition
Consequence of Brand Awareness
(Learning, consideration, choice advantage)

Establishing Brand Awareness

Brand Image
Strength of Brand Associations
(Fevicol.Glue)

Favorability of Brand Associations

(Toyota.Resale)

Uniqueness of Brand Associations

(Sony.Pic Qlty)

Building a Strong Brand 4 Steps

To answer the Customers Question

Establish proper BRAND IDENTITY Create the appropriate BRAND MEANING Elicit the right BRAND RESPONSES Forge appropriate BRAND RELATIONSHIPS

Who are you

What are you

What about you

What about you & me

Imagery- What are you?

User profiles Demographic & psychographic characteristics Actual or aspirational Group perceptions popularity (BMW vs. Harley-Davidson) Purchase & usage situations Type of channel, specific stores, ease of purchase Time (day, week, month, year, etc.), location, and context of usage Personality & values Sincerity, excitement, competence, sophistication, & ruggedness

History, heritage, & experiences Nostalgia Memories

Judgment- What about you?

Brand quality
Value Satisfaction (Marks & Spencer)

Brand credibility
Expertise Trustworthiness Likability

(HP Printers)

Brand consideration
Relevance (Shark ??)
(Caretaker Government?)

Brand superiority
Differentiation

Feelings- What about you?

Warmth Fun (50-50 Biscuit, Disney) Excitement (Batman, Security (Tata Safari) Social Approval Self-Respect

Designing Brand Strategy

Existing Brand Culture - product reputation
- relationship perceptions - experience framing - symbolism

Strategy Drivers
Environment Changes

Brand Culture Goal - product reputation

- relationship perceptions - experience framing - symbolism

Competitive benchmarking

Brand Engineering
Product design Service delivery Service quality packaging Advertising Personal selling Public relations
Corporate communications

Channel policy Retail design Customer interface

Pricing promotions

Corporate actions

Source: Holt (2003), HBSP