THE NEW BRANDING IMPERATIVES

Transcription

1 THE NEW BRANDING IMPERATIVES MSCOM Excellence-incommunications Lecture BMW, Dielsdorf Kevin Lane Keller Tuck School of Business Dartmouth College 1

2 My Textbooks 2

3 My Experience 3

4 The New Branding Imperatives Fully and accurately factor the consumer into the branding equation Go beyond product performance and rational benefits Make the whole of the marketing program greater than the sum of the parts Understand where you can take a brand (and how) Do the right thing with brands Take a big picture view of branding effects and know what is working (and why) 4

5 Branding Imperative #1 Fully and accurately factor the consumer into the branding equation Recognize what consumers know and dont know about brands Recognize what consumers want and dont want from brands Recognize how consumers actually make decisions Recognize consumer diversity 5

6 Nike Brand Mission: To bring inspiration and innovation to every athlete in the world If you have a body, youre an athlete Brand Values Inspire Innovate Focus Connect Care Brand Mantra Authentic Athletic Performance 6

7 Interactive Communications Web site Ratings, reviews & feedback Company-generated Consumer-generated s & texts Banner, rich media, etc. ads Search advertising Social media Communities & Forums Bloggers (Individuals & Networks) Facebook Twitter YouTube 7

8 Interactive Communications Establish an active public voice and presence on the Web Allow consumers to engage at a deep & broad level Complement and reinforce other communications Ensure innovation & relevance But remember not everyone participates actively in social media Only some of the consumers want to get involved with Only some of the brands they use Only some of the time. 8

9 Branding Imperative #2 Go beyond product performance and rational benefits Craft well-designed products and services that are functionally and aesthetically appealing How they work, look, feel, etc. Provide reinforcing rational and emotional benefits 9

10 Apple Feedback Expansion Sustained product innovation from inception Macintosh personal computers PowerBook laptops ipod portable music player itunes music download website iphone mobile phone & apps ipad tablet computer Strong brand promise Performance & design How a product works, looks, & feels Personality & character Think Different 10

11 Dimensions of Brand Feelings Brand feelings can be divided into two broad categories: Experiential immediate, short-lived during purchase/consumption Enduring private, possibly part of day-to-day life Brands should have one, or ideally both, types of feelings Increasing level of intensity Experiential Feelings Warm Fun Exciting Enduring Feelings Sense of Security (Inner-directed) Social Approval (Outer-directed) Self-Respect (Actualization) Self-Respect Sense of Security Social Approval Higher level of values & needs Inner-Directed Outer-Directed

12 Branding Imperative #3 Make the whole of the marketing program greater than the sum of the parts Develop fully integrated channel and communication strategies Mix & match to optimally blend strengths & weaknesses 12

13 Red Bull Employs a full set of brand elements and marketing activities Creative brand name, logo, packaging and slogan (Red Bull Gives You Wings) Strong on-premise and in-store marketing A variety of direct-to-consumer communications Traditional media advertising & sponsorship Non-traditional events & promotions 13

14 Red Bull Activities, Events & Experiences

15 Modern Communication Programs Traditional, mass media communications Greater control Online interactive communications Greater relevance Real world experiential communications Greater engagement Mobile interactive communications Greater timeliness 15

16 FUTURE MARKETING COMMUNICATION INTEGRATION Traditional, mass media communications Mobile, interactive communications Online, interactive communications Real world, experiential communications

17 Audience Communication Option Overlap Communication Option A (e.g., TV) Communication Option B (e.g., Internet) Communication Option C (e.g., Event) Note: Circles represent the market segments reached by various communication options. Shaded portions represent areas of overlap in communication options.

18 Evaluating IMC Programs Coverage Cost Contribution Commonality Complementarity Versatility 18

19 Branding Imperative #4 Understand where you can take a brand (and how) Design and implement a new product development and brand architecture strategy Understand brand potential Introduce appropriate brand extensions Brand extensions properly Maximize long-term growth across customer segments and geographical markets Nivea caring and gentle cuts across many categories 19

20 Selected Brand Extension Research Findings 1. Successful brand extensions occur when the parent brand is seen as having favorable associations and there is a perception of fit between the parent brand and the extension product. 2. There are many bases of fit: product-related attributes and benefits, as well as non-product-related attributes such as common usage situations or user types. 3. Fit may also be based on technical or manufacturing commonalties or more surface considerations such as necessary or situational complementarity. 4. Knowledgeable experts are more likely to use technical or manufacturing commonalities to judge fit; less knowledgeable novice consumers are more likely to use superficial considerations. 5. Consumers may transfer associations that are positive in the original product class but become negative in the extension context. 6. Consumers may infer negative associations about an extension, perhaps even based on other inferred positive associations.

21 Selected Brand Extension Research Findings 7. High quality brands stretch farther than average quality brands, although both types of brands have boundaries. 8. A brand that is a product category prototype or exemplar can be difficult to extend. 9. It can be difficult to extend into a product class that is seen as easy-tomake. 10. A successful extension can contribute to the parent brand image and enable a brand to be extended even farther. 11. An unsuccessful extension does not prevent a firm from backtracking and introducing a more similar extension. 12. An unsuccessful extension hurts the parent brand only when there is a strong basis of fit between the two. 13. The most effective advertising strategy for an extension is one which emphasizes information about the extension (rather than reminders about the parent brand).

22 BRAND EXTENDIBILITY SCORECARD Allocate points according to how well the new product concept rates on the specific dimensions in the following areas: Consumer Perspectives: Desirability 10 pts. Product category appeal (size, growth potential) 10 pts. Equity transfer (perceived brand fit) 5 pts. Perceived consumer target fit Company Perspectives: Deliverability 10 pts. Asset leverage (product technology, organizational skills, marketing effectiveness via channels & communications) 10 pts. Profit potential 5 pts. Launch feasibility Competitive Perspectives: Differentiability 10 pts. Comparative appeal (many advantages; few disadvantages) 10 pts. Competitive response (likelihood; immunity or invulnerability from) 5 pts. Legal/regulatory/institutional barriers Brand Perspectives: Equity Feedback 10 pts. Strengthens parent brand equity 10 pts. Facilitates additional brand extension opportunities 5 pts. Improves asset base TOTAL pts

23 Brand Stretch Successes Some of the worlds strongest brands have been stretched across multiple categories 23

24 But Dont Forget the Spandex Rule Just because you can doesnt mean you should! Scott Bedbury, formerly VP-advertising Nike & VP-marketing Starbucks Especially a worry with luxury brands Defined in part by lifestyle 24

25 Branding Imperative #5 Do the right thing with brands Embrace corporate social responsibility Develop point-of-view on societal, environmental and community issues Create win-win cause marketing programs and activities Manage brands for the long-run Avoid over-exposing, over-extending, overmodernizing, over-discounting Avoid death by 1000 cuts 25

26 Benefits of Cause Marketing Improving social welfare (win-win) Creating differentiated brand positions Eliciting emotional responses from consumers Building strong bonds with consumers Enhance companys public image Create reservoir of goodwill Boost employee morale Drive sales 26

27 Branding Imperative #6 Take a big picture view of branding effects and know what is working (and why) Achieve greater accountability for marketing investments in brands Adopt comprehensive, cohesive, and actionable models to help develop ROI insights and interpretations 27

28 Three Models to Facilitate Brand Planning To help guide these efforts, three models of increasing scope can be used: 1) Brand Positioning Model How to guide integrated marketing to maximize competitive advantages; 2) Brand Resonance Model How to create intense, activity loyalty relationships with customers; and 3) Brand Value Chain Model How to trace the value creation process to better understand the financial impact of marketing investments. 28

29 A Comprehensive Set of Branding Metrics Marketing Activity 3) Brand Value Chain Model Customer Mindset Market Performance Shareholder Value 2) Brand Resonance Model Resonance Judgments Feelings Performance Imagery Salience 1) Brand Positioning Model Points of Parity Points of Difference

30 Conclusions Brands will survive and can thrive the more they provide the basic functions of branding Reduce risk; set expectations; deliver on promises; create differentiation Successful branding requires doing a variety of different things well in an increasingly challenging environment Six new branding imperatives 30

31 Conclusions Building a powerful 21 st century brand will involve Tackling old problems Addressing new challenges By being... Analytical & systematic Creative & inspired 31

32 Thanks! 32