Brand Performance Management Introduction Gauri Pathak 13 th

Brand Performance Management Introduction Gauri Pathak 13 th April 2016

Agenda 1. Introduction to the course and practicalities 2. Course Kick off - Understanding basic concepts and case analysis 3. Sneak peak of the course content and tasks 2

Introduction to the course and Practicalities

Course Objective q The course provides students with a global perspective on brands and their performance management. This knowledge could be applied for understanding a variety of concepts in Branding and Brand management. q It will provide deeper insights on how Brands have evolved over the time and succeeded even under crisis situation. The course will help the students understand how brands come up with strategies that influence everyday life of millions of people worldwide. It will help students and apply the concepts learnt here in designing and building branding strategies.

Course content 1. The course covers important areas of branding and related topics in brand performance management. The topics include: • • • Brand & Brand Management Brand Leveraging & Brand Performance, Brand Positioning & Brand Building. Designing & Sustaining Branding Strategies , Measuring Brand Equity, Managing Brand Equity. 2. The course will involve studying global brands and how they are managed, leveraged and revived.

Course Reading We will be referring to the Marketing and Brand Management books authored by Philip Kotler and Kevin Lane Keller Example: Keller, Kevin Lane (2003) Strategic brand management building, measuring and managing brand equity. The book will be supplemented by a collection of academic journal articles – • The articles will be uploaded to the course website in. pdf-format (Reading Stack) • When articles are assigned to a class, they will be discussed during the lecture

Detailed Schedule. doc

Evaluation and Grading • Total 100 points - Compulsory group exercise (50%) - 2 Assignments (50%) • Student has to get at least 50% of points in each of the areas to pass the course • It is evaluated that on average this course consumes 160 hours of students time (this is the amount of work required) ü Classroom hours 35 h ü Class preparation 15 h ü Individual Assignments 15 h ü Group Assignment (Each group member) 15 h ü Preparation for the course 80 h

Course Kick off Understanding basic concepts.

Concepts to begin with 1. 2. 3. 4. 5. 6. Brand Identity Brand Resonance Brand Resilience Brand Results/response Brand Resolution Brand Radiation

Concepts to begin with 1. 2. 3. 4. 5. 6. Brand Redefinition Brand Recognition Brand Extension Brand Description Product Portfolio Brand Audit

Concepts to begin with 1. Brand Identity: It is the way a company aims to identify or position itself or its product or service in the minds of the consumer. q q Brand image: It is the way in which the consumer actually perceives the visual or verbal expressions of a brand which leads to the psychological or emotional associations that the brand aspires to maintain in the mind of the consumer. For the right image to be established in the consumer’s mind the marketer must convey brand identity through every available marketing mix variable. Examples: Skype

Concepts to begin with 2. Brand Resonance: It is the term which focuses on the various stages of consumer brand relationship through which the consumer connects with the brand. q The brand resonance begins with: ü Brand Identification: The first and foremost step, is to ensure the brand identification with the customers, i. e. creates awareness about the product and establish an association in the minds of customers with respect to its usage and the segment for which it exists. ü Brand Establishment: To create a full meaning of the product in the minds of customers, so that they start remembering it. ü Eliciting Response: Once the association is built with the customers, the next step is to elicit the responses, i. e. what customers feel about the brand? ü Relationship: The next and final step is to convert the responses into building the customer’s strong relationship with the brand. Example: Coca Cola

Concepts to begin with q In order to accomplish these four pre-requisites for creating the brand equity, the Six brand building blocks need to be followed that are arranged in a pyramid-like structure called as Brand Resonance Pyramid. (SPIJFR) 1) Brand Salience ( "most noticeable or important. " ) 2) Brand Performance 3) Brand Imagery 4) Brand Judgements 5) Brand Feelings 6) Brand Resonance

Concepts to begin with

(S) Brand Salience: How well the customer is informed about the product and how often it is evoked under the purchase situations? The marketer should not only focus on just creating the awareness about the product but also includes the ease with which the customers can remember the brand the ability to recall it under the different purchase situations. (P) Brand Performance: How well the functional needs of customers are met? At this level of the pyramid, the marketers check the way in which product is performing and how efficiently it is fulfilling the needs of the customers. (I) Brand Imagery: What product image the customers create in their minds? This aspect deals with the customer’s psychology or the feelings that how they relate to the product in terms of their social needs. (J) Brand Judgements: What customer decides with respect to the product? The customers make the judgement about the product by consolidating his several experiences and the imagery associations with the brand. On the basis of these, the final judgement is made about the product in terms of its Perceived Quality, Credibility, Consideration and Superiority. (F) Brand Feelings: What customers feel, for the product or how the customer is emotionally attached to the product? The consumer can develop emotions towards the brand in terms of fun, security, self-respect, social approval, etc. (R) Brand Resonance: What psychological bond, the customer has created with the brand? This is the ultimate level of the pyramid, where every company tries to reach. Here the focus is on building the strong relationship with the customer thereby ensuring the repeated purchases and creating the brand loyalty. The resonance is the intensity of customer’s psychological connection with the brand the randomness to recall the brand in different consumption situations.

Concepts to begin with 3. Brand Resilience (the capacity to recover quickly from difficulties; toughness of a brand) Risk, defense and recovery ü How strong is the strategy competitively? ü Does this really give the competition something to ponder and react to? ü Does it front-foot them in the marketplace? ü For recovering brands, does it mark a clear way back and a strong way forward? Example: Toyota

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BCG matrix

Concepts to begin with 4. Brand Results/Response ü What difference will the brand make in its presence and absence ? ü How will it contribute to the business strategy? ü Is it going to make its numbers? And if it doesn’t make those numbers initially, where’s the Plan B in the strategy to fix that? ü Consumer judgements towards the brand There are four types of judgments crucial for creating a strong brand − Quality , Credibility, Consideration, Superiority ü Consumer feelings towards the brand: They can be mild, intense, positive, negative, driven from heart or head. There are six important feelings crucial in brand building − Warmth, Fun, Excitement, Security, Social approval, Self-respect Example: Lush and Bodyshop

Concepts to begin with 5. Brand Resolution ü How will the new strategy excite people? ü Is it inspiring? Does it align with the vision and the purpose of the Brand? ü Does it bring focus and substantiation to the conversations taking place internally within the company? Example: i. Phone

Sneak peak of course content and tasks

Assignments Individual Assignment 1. doc Group Assignment. doc v Create the groups for the group assignment today and submit the details of the groups on the course page along with the proposed topic by 13 th April 2016. v Individual Assignment #1 and Group Assignment will be uploaded on the course page. v Individual Assignment #1 to be submitted online on the course webpage, submission deadline 20 th April 2016. v Group Presentation dates will be finalized and uploaded on the course page once group details are received.

Groups formation • 2 students per group • As a group: ü Select the name for your group ü Exchange contact details ü Develop overall project plan ü Create flexible timetable and mark the milestones Please form the groups now (15 min) and send the information to gauri. pathak@aalto. fi by the end of the day!

Course material and Homepage • All the information can be found from the course homepage. • Lecture slides will be updated to the course homepage. • The course homepage can be found from the https: //mycourses. aalto. fi/course/search. php? search=23 E 53010