Branding: There are several ways brands can be identified, name, symbol; enable brand to differentiate themselves to competitors
to understand branding, need to know the difference between a branded and non branded good, in this case, if not branded, we don't know who made it, where to get it if we want to repurchase, if branded, brands explicitly identify themselves, therefore, enables promises to be made from marketing comm, when promised fulfilled - loyalty and trust established
brand equity (Keller 1993/1998) - (how knowledge of brand would affect the consumers response to its marketing) the differential effect brand knowledge has on consumer response to the marketing of that brand
brand equity, based on the associations that people attach to a particular brand; brands with higher BE = more net positive and unique associations Krishnan 1996 = repeated sales
- branding is the foundation for relationship marketing
- Differentiation from competitors, brand can communicate values and personality to customers
- we believe that a specific mode of conduct or end date - preferable to the opposite, this belief last for a long time - VALUE
- Basically if we think that education is important (we value), marketing educational service, higher likelihood of success
- brand value = guiding principles, one differentiated when its unique
An organisation can have core (remains constant) and peripheral values (susceptible to change) depending on changes in the marketing environment
HEWLETT PACKARD
core values of - providing customers with products and services 'of the highest quality' remains unchange but peripheral value of sharing success with employees had to adapt when organisation decides to move to computer market and need to recruit specialist rather than promoting from within
Definition of brands = added values
- but right now it is increasingly hard to sustain, for a significant amount of time and uniqueness of a brand functional added values
example: airline industry, one airline launches more comfy beds, another follows
Therefore better to use emotional added values as this is harder to imitate, eg oxford and cambridge university - long history and consistent reputation
Branding decision: extent to which they use the same brand name across different product.
Brands enjoy customers trust - further trust can be stretched, more likely to be profitable
HOWEVER there are limits to which customers will accept such 'brand extensions'
extensions work on principle of - stimulus generalisation
Success depends on relevance of the new products to the marketplaceimage of brand name
the greater the simliarity between product and brand extension, higher likelihood for transfer of positive evaluation (hsbc will be better at financial product instead of clothing line)
- Brand strategies: product category (ex, new) , brand name (ex, new)
- Line extension
- Multibrands
- Brand Extension
- New brand
Product cat: a group of products that are homogenous. substitutes of one another
think of MP3, Toyota - Lexus
attractive in terms of the riskiness, this option, less risky that the rest as firm knows how customer will react to the brand name and know the amount of trust it enjoys, firm has a lot of information about how brand name will work in marketplace
of course potential sales and profits may be limited for other reasons such as - new offerings may be so similar to firms existing products, and any sales of the new product is at the expense of lost of sales of existing product - CANNIBALISATION
- JIAN AND POSAVAC (2011) - For new experience goods, consumer will use known brand names in order to infer quality = brand extensions will be more valuable; not possible? warranties
ANSOFF MATRIX (product, market) - associated with marketing strategy/ marketing environment greatly influence riskiness of each option
- if strong competitors enter the industry - a strategy of innovating may be less risky than one where nothing at all (look at TB)