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Chapter 8: Build the Brand (Branding Decisions (Stand-Alone/ Family…
Chapter 8:
Build the Brand
Branding strategy
• Successful new products result from a well-conceived branding strategy
• Established products are mostly defined by their brand
Customer Brand Roles
• Whether customer= consumer/ business, bsn have 3 primary roles
(i) Brand conveys information about the product
(ii) Brand educate the customer about the product
(people assign meaning to product exp. - make judgements about preferred brands to meet needs and wants)
(iii) Brand role helps reassure customers in the purchase decision
Company Brand Roles
(i) Protect brand= able to
defend essential product elements
such as its features, patentable ideas in manufacturing or product design, and packaging
(ii) Offers an
effective and efficient
methodology for
categorizing products
(e.g.: Samsung has many product categories, branding helps keep track of them)
Competitor Brand Roles
Creates a benchmark against competitors
:red_cross:Boundaries of Branding
• Good branding strategy
≠ overcome poorly designed products
that fails to deliver on the value proposition
•
Non-protected brands :arrow_right: significant damages
during counterfeit products/ illegal activities are conducted
•
Brand identity
: Must be real, identifiable and meaningful differences among products (oil companies find it difficult to overcome perceptions about a brand)
Brand Equity
Definition
A
set of assets (and liabilities) linked to a brand’s name and symbol
that adds to (or subtracts from) the
value provided
by a product or service to a firm or that firm’s customers
Dimensions
:diamonds:
Perceived quality
• Companies use a +tive perceived quality to differentiate the product and create higher price points.
:smiley::frowning_face::cry:
Brand association
• Develop a no. of emotional, psychological, and performance associations with a brand.
:dog:
Brand loyalty
• Strongest form of brand equity
• Reflects a commitment to
repeat purchases
:heavy_plus_sign:
Brand assets
• Possess other assets (e.g.: trademarks, patents) that represent a significant CA
:!:
Brand awareness
•
Signals a familiarity and potential commitment
to the brand
Benefits of Brand Equity
Brand Connections
Customer
• They're likely to retrieve info/ enter stores with brand
• Strong brands generate +tive attitude towards the product
Brand Sponsor
• Customer identifies w/ brand > :arrow_up: loyalty > creates barrier to entry for new brands
Linking Benefit to Strategy
• Customer brand connection > can extend to new products that fits the target market's brand perception
• Reinforce their market presence because it helps maintain a barrier to entry
Perceived Quality
Customer
• Gives customers a
reason to buy
• Will
infer a level of quality
from branded products
Brand sponsor (company managing the brand)
• Perceived quality enables companies to extend the product range
• Perceived quality can lead to price premium opportunity
• Perceived quality is an excellent differentiator in the market
Linking Benefit to Strategy
• Successful marketing strategy builds quality into entire customer exp. (Product, service, interaction)
• Must constantly validate the value proposition
Brand Loyalty
Customer
• customers spend less time searching for info > :arrow_down: time in purchase decision process
Brand sponsor
• Well-executed branding strategy >
:arrow_down: LT costs
> brand sponsor has more
flexibility in the marketing budgets
.
• Branded products
give sponsors additional channel leverage
(makes the most out of its different distribution channels)
• Loyal customers are
vocal
and tell others about their experiences, which
attracts new customers
• Loyal customers are
forgiving
, which
enables
companies to
respond to a negative experience
Linking Benefit to Strategy
• Customer loyalty >
greater flexibility in marketing budgets
Branding Decisions
Stand-Alone/ Family Branding
Stand-alone brands
• Separates company from brand = Company is protected if brand has problems
• Expensive to create and maintain
Family branding
• Opposite of Stand-alone brands
National/ Store Branding
National brands
• Enable manufacturers to leverage marketing resources by creating efficiencies in marketing communications and distribution.
• Have a higher perceived quality
Store brands
• Large retailers create a store brand to market their own products.
Licensing
• Offers manufacturers to use their brand for a set fee/ % of sales
• Very little risk
• Can extend the brand > build more associations (additional benefits)
:!:license partners should fit the company’s overall marketing strategy for the brand
Co-Branding
• Linking its products with other products inside the company or externally with products from other companies
• The opportunity to leverage the strengths of each brand to increase sales beyond what they could do independently
• May open each product up to new markets
• Externally give up some measure of control over their brand