MP - Branding 6

nguyp035's version from 2016-05-16 19:55

Section 1

Question Answer
A brand is...a name, term, design, symbol or any other features that IDENTIFIES one seller's good/service as distinct from those of other sellers - it is unique - timeless
Example of a brand, htc, nexus
Branding allows these companies perceived differently, since the products probably share similar features
The purpose of branding is to....Differentiate a company from their competitors - to have a unique position - creates USP - creates a proposition in campaigns showing benefits
Examples of USPs are...ensuring safety and reliability - proposing that it is most important and they are the only one to provide it
The process of creating brand value = product > brand (names, packages, trademarks) > positioning > target market
Benefits of brandingadds value (higher perceived value) > willingness to pay premium > high margins
loyalty > profits - extension/stretch/license - increase effectiveness of integrated marketing communication - barrier to market entry - brand choice
Is there an objective reality?No. Marketing is not a battle of product, but perception. There are no best products, only best perceptions - perception is reality.
Two cars may be merely equal but we perceive them differently

Section 2

Question Answer
We can speed up decision making process by usingmental shortcuts - these include relying on product signal and on well known brand names as a signal of quality - when a brand is consistently purchased, this may be caused by true brand identity or inertia as its easiest thing to do.
A brand name can be used as a...heuristic (simple/efficient rules that simplify decision making) - people form preferences for favourite brands and rarely change their minds overtime.
Brand equity refers to...a brand's value to it's company over and above the value of the generic version of the product - two paracetamol brands have same ingredients, but customers might purchases the branded ones at a higher price.
Building the brand
Consumer-based brand equity (CBBE) modelhelps to build an association/relationship between the brand and customers [Keller]
in order to build a strong brand, you must shape how customers think and feel about your product. - you have to build a good experience so customers have a positive feeling/perception about your brand
Benefits of creation strong brandword-of-mouth, loyalty


Question Answer
Stages of CBBE model consists of...salience, performance, imagery, judgement, feelings resonance [questions you ask customers subconsciously regarding your brand]
Brand Identity [Salience] - who you are - creating brand awareness depth and breath, low involvement, convenience product?
Brand Meaning (Performance/Imagery) communicates what brand means and what it stands for [performance to meet customer needs - durability, characteristics, features, reliability, service] [imagery meeting customer needs on a social or psychological level - direct experience, indirect word of mouth]
Brand Response (Judgement/Feeling)looks at customers response to the brand - [customers judge a brand in terms of - quality, creditability, consideration (how relevant product is) , superiority] [customers also respond to brand according to how it makes them feel - warmth, fun, excitement, security, social approval, and self-respect.]
Brand Resonancemost difficult but desirable - you reach it when customers feel a deep bond with brand [behavioural loyalty, attitudinal attachment , sense of community, active engagement]
True or false, brand equity is difficult to measureTrue - its a challenge for todays marketers
What approaches can we use to measure equity?Customer or financial based approaches
Customer based approach which looks at..awareness, recalls, attitudes, image, uniqueness, quality.
Financial based approach are..price premiums (how long has price been kept high?) or aggregation of the historic cost in developing brand
The BAV (brand asset valuator) model is a...metric used to measure the value of a brand [young and rubicam]
Axis consists of...brand vitality and brand stature
Brand STATURE refers to...the current value of the brand. - past performance
Brand stature is comprised of..[esteem- is product/service held in high regard/respected? e.g. reputable, reliable, helpful? - perception of quality brand = how much it is respected]
[knowledge - do consumers have good knowledge of product, awareness and understanding?]
Brand VITALITY (STRENGTH) consists of..differentiation (difference) & relevance (breadth of brands appeal) - in future
Four components of equity are...differentiation, relevance, esteem and knowledge
Brand strength & brand stature combined to..form a power grid that depicts the stages in the cycle of brand development
New brands (just launched)...Low strength, low stature (e.g. hsbc)
Leadership brand shows...high strength, high stature ( e.g. disney, subway nike)
Declining leadership brand shows...falling strength, high stature (e.g. burger king) > relevance falling by lots know about it
Niche unrealised brands shows...high strength, low stature (paypal, IKEA)
Eroding brands shows...low vitality, high stature (friskies cat food)
Is there a perfect measure for brand equity?No. BAV is just one method.
attitudes dont necessarily reflect behaviour - it is difficult to associate a company performance to brand - cost and investment doesn't correlate with marketing performance - financial based measure fail to capture nature of equity
thus we NEED A RANGE of methods to measure brand equity

Section 3

Question Answer
Branding strategies - creating identitysimilar parent company, product form changes
Co-brandingan alliance between more than two brands to combine strengths - resources (market share,costs) - raised recognition (e.g. The avengers (hulk, iron are separate brands) - Apple and Intel - star wars and lego)
Brand stretchingstretching into new product categories (heinz tomato ketchup > baked beans) - using brand name to identify their products
Brand extension (3)
Downwardfrom top end of market extending downwards to stop competitor (+ capitalise brand value, new segments, market share) ( - devalued brand image, cannibalisation) e.g. Mercedes C class
Upwardextending upwards to add prestige to existing range of products (- risky due to customer perception and inability to negotiate to new level) - e.g. Ice cream snickers
Two-way extensionextending product lines upwards and downwards to address different segments (e.g. sainsburys basics and taste the difference).