Branding for Recognition & Profit. Dr. Tony L. Henthorne Associate Dean University of Nevada, Las Vegas

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1 Branding for Recognition & Profit Dr. Tony L. Henthorne Associate Dean University of Nevada, Las Vegas

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3 Brand versus Product Brand Has dimensions that differentiate it in some way from other products designed to satisfy the same need Product Anything available in the market for use or consumption, that may satisfy a need or want Can be differentiated on the basis of: Packaging Services provided Customer advice Financing Delivery arrangements Warehousing Other things valued by the customers Can be categorized into five levels namely: Core benefit level Generic product level Expected product level Augmented product level Potential product level

4 Brand Elements Different components that identify and differentiate a brand Name, logo, symbol, package design, or other characteristic Can be based on people, places, things, and abstract images

5 To Sum Up... Through branding, organizations: Create perceived differences among products Develop a loyal customer base Create value that can translate to profits

6 Roles that Brands Play

7 Strong Brands Are brands that have been market leaders in their categories for decades But any brand is vulnerable and susceptible to poor brand management

8 Factors Responsible for Branding Challenges Savvy customers Economic downturns Brand proliferation Increased competition

9 Challenges to Brand Builders

10 Marketing Advantages of Strong Brands

11 Brand Image Strength of Brand Associations More deeply a person thinks about product information and relates it to existing brand knowledge, stronger is the resulting brand association Favorability of Brand Associations Is higher when a brand possesses relevant attributes and benefits that satisfy consumer needs and wants Uniqueness of Brand Associations Unique selling proposition of the product Provides brands with sustainable competitive advantage

12 To Sum Up... To create brand equity, marketers should: Create favorable consumer response (in other words: brand awareness) Create positive brand image though brand associations that are strong, favorable, and unique

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14 Identifying and Establishing Brand Positioning Basic Concepts Target Market Nature of Competition Points-of-Parity and Points-of- Difference

15 Basic Concepts Brand positioning Designing the company s offer and image so that it occupies a distinct and valued place in the target customers minds Finding the proper location in the minds of consumers or market segment Allows consumers to think about a product or service in the right perspective

16 Target Market Market segmentation: Divides the market into distinct groups of homogeneous consumers who have similar needs and consumer behavior Involves identifying segmentation bases and criteria Measurable Accessible Substantial Responsive

17 Nature of Competition Competitive analysis of direct competition Competitive analysis of indirect competition

18 Points of Parity and Points of Difference Points-of-difference associations Points-of-parity associations Points-of-parity versus points-of-difference

19 To Sum Up To appropriately position a brand, marketers should: Identify their target customers Analyze the type of competition they might face in the identified market base Identify product features and associations that are different or similar to their competitors

20 Positioning Guidelines Defining & Communicating Competitive Frame of Reference Choosing Points-of-Difference Establishing Points-of-Parity and Points-of-Difference Straddle Positions Updating Position Overtime

21 To Sum Up... Brand positioning describes how a brand can effectively compete against a specified set of competitors A good product positioning should: Have a foot in the present and a foot in the future Identify all relevant points-of-parity Reflect a consumer point of view in terms of the benefits that consumers derive Contain points-of-difference and points-of-parity that appeal both to the head and the heart

22 Possible Roles of Brands in the Brand Portfolio

23 Brand Portfolios: 3 Points Flankers Cash Cows Low-End, Entry-Level or High- End, Prestige Brands

24 Flankers Protective or fighter brands To create stronger points-of-equilibrium with competitors brands Fighter brands must not be so attractive that they take sales away from their higher-priced comparison brands

25 Cash Cows Despite dwindling sales, some brands are retained Due to their sustainability without any kind of marketing Milked by capitalizing on their reservoir of existing brand equity

26 Low-End, Entry-Level or High-End, Prestige Brands Sub-brands leverage associations from other brands while distinguishing themselves on price or quality Role of a relatively low-priced brand: To attract customers to the brand franchise Role of a relatively high-priced brand: To add prestige and credibility to the entire portfolio

27 To Sum Up Successful brands need to have a foot in the present and a foot in the future Of the many roles that brands can play in a product portfolio, two seem to be of most importance: Flanker brands Cash cows

28 Thank you for your kind attention