Lecture 6-c POM BBA 2K10

What

is brand? Why is it necessary? What makes a brand?

apple

Brand, identity and design

What is a brand ?

A traditional scenario of market Company A

Company B

Product / services

Consumer

Company C

In a traditional market scenario, the company is catering to the consumer. The number of competitors are small. In these markets the companies can come with advanced technologies and other strategies to capture more market share.

(The size and power of the players is important.)

What is a brand ?

Company A Company B Company C In complex markets, the differences between companies are not much. The companies can not differentiate much themselves from others on the basis of quality and technology etc. factors as all the companies are competent enough. This scenario explains the need for the differentiation for the companies.
Product / services

Consumer

What is a brand ?

Branding is an effort to give a unique identity to the companys products and create emotional associations with consumers. It is a form of marketing.

A brand is a set of associations that are linked to a product range, a division, or company.
These associations reside in the memory of customers. These associations help customers understand what the brand or company is, why it is potentially relevant to them, how it is different or similar to other products made by the company, and how it is similar or different from competitors products.

What is a brand ? Branding is a combined effort of the company which is projected to the consumer.

Marketing

Brand

Company

Consumer

Design

What is a brand ? What a brand means to common person ?

In 'blind' taste tests, people prefer the taste of Pepsi over the taste of Coke. However, if the test is not 'blind' and the tasters know which beverage is which, they prefer the taste of Coke over Pepsi! That is the emotional power of a brand. The Coca-Cola brand has the power to actually change an individual's taste! Coca-cola is the no.1 brand in the world. The first shape that was registered is the coca cola bottle.

What is a brand ?

1. Products and services have become so alike that they fail to distinguish themselves by their quality, efficacy, reliability, assurance and care. Brands add emotion and trust to these products and services, thus providing clues that simplify consumers choice. 2. These added emotions and trust help create a relationship between brands and consumers, which ensures consumers loyalty to the brands. 3. Brands create aspirational lifestyles based on these consumer relationships. Associating oneself with a brand transfers these lifestyles onto consumers.

4.

The branded lifestyles provides value over and above the brands product or service category that allow the brands to be extended into other product and service categories. Thus saving companies the trouble and costs of developing new brands, while entering new lucrative markets.

5. The combination of emotions, relationships, lifestyles and values allows brand owners to charge a price premium for their products and services, which otherwise are barely distinguishable from generics.

 Brand

equity:

Is the positive differential effect that knowing the brand name has on customer response to the product or service. Is a valuable asset that offers many competitive advantages.

Builds strong and profitable customer relationships that result in loyal customers.

 TASK!!!!!
Find

out brands ranked 1-10 on brand equity.

Brand personalities should be treated like persons or characters. Consumers are able to distinguish among brand personalities and thus develop their own loyal or dis loyal relationships with the brands Brand personality is a specific mix of human traits attributed to a particular brand

Sincerity Excitement Competence Ruggedness Sophistication

 Identity

achieved as a result of a good brand name, consistent positioning, fulfilling the promises and consistently good performance.

 Brands

are assets that must be carefully developed and managed via:

Brand Brand Brand Brand positioning name selections sponsorship development

 Marketers

can position brands at any of three

levels:

Product attributes Product benefits Beliefs and values

Desirable qualities for a brand name:

1. It should suggest the products

2.
3. 4. 5. 6.

benefits and qualities. It should be easy to pronounce, recognize, and remember. It should be distinctive. It should be extendable. It should translate easily into foreign languages. It should be capable of registration and legal protection.

 Brand

sponsorship options include:

Manufacturers brands
Also called national brands

Store brands

Also called private brands

Licensed brands Co-branding

Brand Development Strategies

Line extensions Brand extensions Multibrands New brands

Brand Development Strategies

 Line

extension:

Introduction of additional items in a given product category under the same brand name (e.g., new flavors, forms, colors, ingredients, or package sizes).

Brand

extension:

Using a successful brand name to launch a new or modified product in a new category.

 Multibranding:

Offers a way to establish different features and appeal to different buying motives.

New

brands:

Developed based on belief that the power of its existing brand is waning and a new brand name is needed. Also used for products in new product category.

Managing Brands
Requires: Continuous brand communication Customer-centered training Brand audits

WOULD YOU TAKE A MAJOR ROAD TRIP WITHOUT A MAP?

THE MAP IS CALLED A

MARKETING PLAN.

WHO we are trying to reach (Target Market) HOW we want to reach them WHERE the product will be available WHAT the MESSAGE needs to be (ad copy, images) HOW MUCH $$$ is in our MARKETING BUDGET (per Pro Forma P&L, Cash Flow, Balance Sheet) SWOT Analysis AND WHEN will the action happen, per a TIMELINE

Concentrate on a do-able population and scale. Be realistic in expectations. Do an accurate SWOT, not Pie in the Sky Stay the course; use your map, do not unnecessarily change direction or make adjustments to name or logo without quality research behind it. The Marketing Plan we follow MUST be thought out and researched FIRST, not last.

 The

sum of your 4-Ps and your Marketing Plan will ultimately build your BRAND (either one way or the other!) Solid and positive BRANDING will ultimately provide huge added value to your name, your business and your products or services.