Building Brand Equity And Position BRANDING STRATEGY Session
Building Brand Equity And Position BRANDING STRATEGY Session 2 Instructor: Thomas Murphy P. 978_760_1388/ Tmurphy@clarku. edu
Session 2 Topic Flow Chapter 3 Concept of Brand Equity Brand Building Chapter 2 Brand Positioning Brand Value Chain
Concept of Brand Equity
Defining Brand Equity David Aakers Prophet. com Association Perceived Quality Visible Unique Added Value Familiar Relevant Service Anchor Price & Performance Awareness Likeable Loyalty
Defining Brand Equity David Aakers Prophet. com “ I defined brand equity as a set of brand assets and liabilities linked to a brand name and symbol, which add to or subtract from the value provided by a product or service. Connecting “brand” to the concepts of “equity” and “assets” radically changed the marketing function, enabling it to expand beyond strategic tactics and get a seat at the executive table. “ David Aakers https: //www. prophet. com/blog/aakeronbrands/156 what-is-brand-equity-and-why-is-it-valuable
Marketing Empties The Well The well is filled with customers Ready, willing and able to buy
Marketing Empties The Well Supply Offers Support
Brand Equity Refills The Well Building Long Term Purchase Opportunities Through Prior and Loyal Customers
Brand Equity Refills The Well Improved Perception of brand value Drilling for new customers via Brand expansion
Brand Equity Refills The Well Recycling of Existing Customers through Trust and Connection
Concept of Brand Building
Customer Equity Combined Lifetime Value of All Customers Purchase Migration Referral Lifetime Loyalty
Customer Brand Equity Pyramid Relationship What About You and Me? Response What About You? Meaning What are You? Identity Who are You ? Resonance y Lo Judge Feeling - Quality - Credibility - Warmth - Fun - Consider -Approval - Superior Performance Imagery t en m te ity i c r Ex ecu ect S esp R -Intangible - Association - Social Needs -Features - Style -Functional - Needs Salience / Awareness Recognition Recall 8 BRANDING STRATEGY lt ya of 10 Instructor: Thomas Murphy P. 978_760_1388/ Tmurphy@clarku. edu
Brand Building Chain Identity Meaning Response Relation
Identity BRANDING STRATEGY Instructor: Thomas Murphy P. 978_760_1388/ Tmurphy@clarku. edu
Brand Building Chain Recognition Recall Identity Awareness Meaning Response Relation
Brand Identity Brand Name Slogan RECOGNIZE Symbol Logo RECALL Package Character
Physical Evidence Integrated Imagery Brand Personality Brand Exposure CHARACTERISTICS OF A STRONG BRAND IDENTITY
Examples of Strong Brand Identity
Brand Awareness Challenges Service Brands Intangible Difficult to Attach any frame of reference around a symbol or character Perishable Recall becomes difficult when you cannot create repetitive lasting association
Meaning The emotional And rational associations That customers Have about Your brand BRANDING STRATEGY Instructor: Thomas Murphy P. 978_760_1388/ Tmurphy@clarku. edu
Brand Building Chain Association Imagery Identity Meaning Response Characteristics Relationship
Meaning Brands create emotional involvement with your customers: • What is your mark of specification? • What is your mark of assurance? • What are the moments of choice? • What is your mark of association? Tip – What is your companies story and how can you “enhance” that and create a new story?
Unique Features Clear Purpose Positive Imagery Relevance CHARACTERISTICS OF STRONG BRAND MEANING
Examples of Strong Brand Meaning
Brand Performance Functionality Ingredients Features Product Durability/ Repair Style / Design Service Effective Empathetic
Brand Imagery Visual Cues Status & Value ATTRIBUTES Context History BENEFITS Personal Relevanc e Typical Uses
Brand Meaning Challenges Service Brands Intangible Difficult to suggest or demonstrate performance Inconsistent Each service delivery can be slightly different in delivery and quality
Brand Image Creative Graphics User Friendly Fun Educational Innovative · Brand Image is the set of mental associations of a particular brand for individual or groups of consumer · It is similar to the immediate association(s) made when meeting someone for the first time – without the benefit of further knowledge. AKA -- Strong / Frail -- Tall / Short -- Outgoing / Shy · Mental Associations can encompass various categories of characteristics, not necessarily all related to price or performance -- Fun -- Easy -- Friendly -- Bland -- Convenient 5 BRANDING STRATEGY of 12 Instructor: Thomas Murphy P. 978_760_1388/ Tmurphy@clarku. edu
Brand Promises Build Meaning
Response Judgements And perceptions That translate To customer Actions that Support a brand BRANDING STRATEGY Instructor: Thomas Murphy P. 978_760_1388/ Tmurphy@clarku. edu
Brand Building Chain Performance Emotional Identity Meaning Response Perception Relation
Credibility Value Over Cost Emotional Reaction Superior Quality CHARACTERISTICS OF STRONG BRAND RESPONSE
Examples of Strong Brand Response
Brand Mantras Link Associations With Judgments Short (3 -5 word) Phrase Capturing The Intended Brand Position Consists of 3 Parts Emotional: Describes how the brand will provide experience and benefit Function: Word Describing Benefits or Experiences Provided by Product “Romanic” Couples Resort “Dangerous” Caribbean Getaway Specific: Resort Abstract: Getaway Modifier: Word(s) that identify the type/sub category of benefit “Couples” Resort “Caribbean” Gateway 6 BRANDING STRATEGY of 12 Instructor: Thomas Murphy P. 978_760_1388/ Tmurphy@clarku. edu
Brand Mantra Notes: · Importance of Brand Mantra is that it “Shrinkwraps” the desired position of a brand in a memorable phrase that target customer can remember and easily relate to. · The “Mantra” can become the basic building block of key brand elements ( Slogans, choice of celebrity endorser or brand character, and packaging) · Mantras capture and communicate the most important and unique point(s) of difference · Mantras can also strategically direct the focus of brand extensions to insure there is cohesion in the mission of all brand products · Mantras also provide internal organizational inspiration and guidance · Nike’s brand expansions to Europe and outdoor clothing had to be adjusted to fit their overall mantra: “Authentic Athletic Performance” · Disney’s Mantra (“Fun Family Entertainment”) came out of a special brand audit on licensing of Disney Character brands to various products + services. To insure a stong strategy – all ventures must now support Mantra. 7 BRANDING STRATEGY of 12 Instructor: Thomas Murphy P. 978_760_1388/ Tmurphy@clarku. edu
Brand Judgments Quality Credibility Consideration Superiority • Dependability • Service • Expertise: Market leader • Trustworthy & Likeable • Personally Relevant to Needs • Aligned With Personal Perception • Better Than Other Brands • Unique From Other Brands
Brand Response Challenges Service Brands People Customers and Service Delivery people are integrated in the service experience Process The process of service delivery impacts the service experience and marketing response
Brand Feelings Emotional Responses Warmth Affection Fun Playful Exciting Sexy, Cool Secure Reliable, Comfort Social Accepted Self Respect Responsible
Brand Feelings Class Brainstorm List Brands That Fit Under a Category Warmth Affection Fun Playful Exciting Sexy Secure Reliable Social Accepted Self Respect
Starwood “W” Hotel Chain An Image Built Around Cool & Fun • • • Launched in 2009 as a Boutique Hotel chain Brand image was cool place for hipsters Place for local residents to have a fun night out in a unique cool location Luxury, unique, warm designs “Holistic Experience” “Cutting Edge Design” “Contemporary Dining Concept” “Glamorous Nightlife” “Signature Spas” • • • page 91 Text “An innovative luxury lifestyle brand with 26 properties in the most vibrant destinations around the world. “Inspiring, iconic, innovative and influential…. W Hotels provides the ultimate in insider access to a world of WOW. ” “W Hotels flirty insider escape offers guests unique experiences around the warmth of cool. Clearly W Hotels are as much about the emotions and experiences they create as they are about getting a comfortable night’s rest. ”
Relationships A sense of attachment, trust and Engagement That lasts Beyond purchase BRANDING STRATEGY Instructor: Thomas Murphy P. 978_760_1388/ Tmurphy@clarku. edu
Relationship Create a sense of attachment and trust with your Brand that will LAST beyond purchase: • What makes your product stand out that will create LOYAL customers? • What rewards or benefits do you offer? • What community exists for these customers? • How can customers communicate directly with the Brand?
Brand Building Chain Engagement Preference Identity Meaning Response Relation Loyalty
Brand Resonance Customer Relationship With a Brand INTENSITY Behavior • Repeat Buy • Size of Purchase Actively Engaged • Follow Blogs • Agree to email • Loyalty member Sense of Community • Online Club • Event Participation Attitudinal Attachment • Passionate • Seek out • Reference ACTIVITY
Brand Attachment Purchase Migration Price Inelastic Referrals CHARACTERISTICS OF BRAND RESONANCE
Examples of Strong Brand Relationships
Building Strong Customer Relationships Rewards Problem Resolution • Status • Upgrades Exceed Expectations Added Value • Reliability • Performance • Guarantees • Services • Free delivery • Customer Service • Return
What is Brand Positioning
2 -7 Brand Positioning Frame of Reference Target Market Behavioral Demographic Psychographic Geo/Cultural Nature of Competition P. O. P Direct P. O. D Performance Category Based Price Secondary Competitor Based Emerging Status Service Correlations Convenience Notes: Category membership is a key for effective positioning. It defines where the product fits in terms of use, benefits and target audience. · Communication of a brand position can be imported by benefit descriptor strategies: -- Associating the brand with and exclusive set of existing competitors (BMW, Mercedes, Lexus) -- Choosing word that are currently acceptable (allergy free) but not generic (Natural) and avoiding negative (Fried) 8 BRANDING STRATEGY of 12 Instructor: Thomas Murphy P. 978_760_1388/ Tmurphy@clarku. edu
Compelling Unique Attributes Solution To Key Needs Strong Fit With The Market Intangible Value CHARACTERISTICS OF STRONG BRAND POSITION
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