BRAND MANAGEMENT (MARK3092) EXAM NOTES
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1 BRAND MANAGEMENT (MARK3092) EXAM NOTES LECTURE 1: FUNDAMENTALS OF BRAND MANAGEMENT... 2 Key Reading 17: Branding in the Digital Age TUTORIAL 1 CASE STUDY DOVE: EVOLUTION OF A BRAND 36 TUTORIAL 2 CASE STUDY PORSCHE CAYENNE General Ntes... 2 Key Reading 1: Building Strng Brands... 3 LECTURE 4: BRANDS AS ICONS... 7 General Ntes... 7 Key Reading 5: The Evlutin f Brand Meaning... 9 Key Reading 6: What Becmes an Icn Mst Key Reading 7: Brands and Their Meaning Makers LECTURE 5: BRANDS AS DYNAMIC AND SOCIAL PROCESSES General Ntes Key Reading 8: Dimensins f Brand Persnality Key Reading 9: Cnsumers and their Brands Key Reading 10: Getting Brand Cmmunities Right LECTURE 8: LEVERAGING EXISTING BRANDS Brand Extensins Naming brands Key Reading 13: Brand Extensins: The Gd, the Bad, and the Ugly Key Reading 14: Cnsumer Evaluatins f Brand Extensins Key Reading 15: Desirable Brand Name Characteristics LECTURE 9: MANAGING MULTI-BRAND PORTFOLIOS General Ntes Key Reading 16: Brand Prtfli Strategy LECTURE 11: MANAGING BRANDS IN THE DIGITAL AGE General Ntes
2 Lecture 1: Fundamentals f Brand Management Frmula t describe a brand: Prduct + Identity + Image = Brand General Ntes Brand identity: a unique set f brand assciatins that represent what a brand stands fr. The visual and verbal articulatin f a brand. Includes: brand name, lg, letterhead, business card, packaging, website, and any ther applicatin pertinent t a particular brand. The brand resnance pyramid mdel Brand image cnsists f: Types f brand assciatins Attributes (Prduct related: clur, size, design features; Nn-Prduct related: price, packaging, user and user imager) Benefits (Functinal, Symblic, Experiential) Overall Evaluatin (Attitude) Favurability, Strength, and Uniqueness f brand assciatins Brand essence is a shrt expressin f the mst imprtant aspects f a brand and its cre brand assciatins Types f brands: Persnal (KFC, Dell) Image (Nike, Apple, Gucci) Experiential (Disney) The evlving brand lgic We are in the stakehlder-fcus brand era It is nt what can we d fr yu but what can we d with yu All stakehlders are perant resurces The brand meaning evlutin mdel Brand knwledge is defined in terms f tw cmpnents: brand awareness and brand image Brand awareness relates t brand recall and recgnitin perfrmance by cnsumers Brand image refers t the set f assciatins linked t the brand that cnsumers hld in memry 2
3 Key Reading 1: Building Strng Brands Building strng brands in a mdern marketing cmmunicatins envirnment (Keller, 2009) Abstract Marketers must build and manage their brands in a dramatically changing marketing cmmunicatins envirnment Keller prpses the custmer-based brand equity mdel that emphasises the imprtance f understanding cnsumer brand knwledge structures The brand resnance pyramid is a means t track hw marketing cmmunicatins can create intense, active lyalty relatinships and affect brand equity Accrding t this mdel, integrated marketing cmmunicatins invlves mixing and matching different cmmunicatin ptins t establish the desired awareness and image in the minds f cnsumers Intrductin Technlgy and the Internet are fundamentally changing the way the wrld interacts and cmmunicates Branding has becme a key marketing pririty fr mst cmpanies Traditinal appraches are questinable in a marketplace where cnsumers have access t massive amunts f infrmatin abut brands, prducts and cmpanies, and scial netwrks have, in sme cases, supplanted brand netwrks The rle f branding Brand equity is defined in terms f the marketing effects uniquely attributable t a brand These effects arise frm the added value endwed t a prduct as a result f past investments in the marketing fr the brand There are a wide range f benefits: Imprved perceptins f prduct perfrmance; Greater custmer lyalty Less vulnerability t cmpetitive marketing actins and marketing crises Larger margins Mre elastic custmer respnse t price decreases and inelastic custmer respnse t price increases Greater trade r intermediary cperatin and supprt Increased marketing cmmunicatin effectiveness Additinal licensing and brand extensin pprtunities Key benefit f building a strng brand is increased marketing cmmunicatin effectiveness Cnsumers prcess cmmunicatins mre favurably and have a greater ability t later recall the cmmunicatins Brand equity is thus central t the way advertising wrks T build a strng brand, the right knwledge structures must exist in the minds f actual r prspective cnsumers s they respnd psitively t marketing activities. Marketing cmmunicatins play a key rle in shaping these knwledge structures. The changing marketing cmmunicatins envirnment Marketing cmmunicatins are the means by which firms attempt t infrm, persuade and remind cnsumers, directly r indirectly, abut the prducts and brands they sell The marketing cmmunicatins mix: eight majr mdes f cmmunicatin. First fur are mass media while the latter fur are mre persnal mdes f cmmunicatin Mass media cmmunicatin (1) Advertising (2) Sales prmtin (3) Events and experiences (4) Public relatins and publicity Persnal mdes f cmmunicatin (5) Direct marketing (6) Interactive marketing (7) Wrd-f-muth marketing (8) Persnal selling Functin f marketing cmmunicatins: tell r shw cnsumers hw and why a prduct is used; link brands t ther peple, places, events, brands, 3
4 experiences, feelings and things; create experiences and build cmmunities; cntribute t brand equity; and drive sales. Increasingly tugh cmmunicatin envirnment dramatic changes in the internet and technlgy have erded the effectiveness f mass media Decline f TV advertising fragmentatin f US audiences and the media used t reach them New media envirnment the cnsumer is increasingly in cntrl The custmer-based brand equity mdel (CBBE) The pwer f the brand lies in the minds f custmers and the meaning that the brand has achieved in the bradest sense Brand equity is fundamentally determined by the brand knwledge created in cnsumers minds by marketing activities Brand knwledge is nt abut the facts f the brand but the thughts, feelings, perceptins, images, experiences etc. linked t the brand in the minds f cnsumers The brand resnance pyramid The CBBE mdel has been extended t address hw brands shuld be built in terms f cnsumer knwledge structures CBBE mdel views brand building as an ascending series f steps: (1) Ensuring identificatin f the brand with custmers and an assciatin f the brand in custmers minds with a specific prduct class r custmer need; (2) Firmly establishing the ttality f brand meaning in the minds f custmers by strategically linking a hst f tangible and intangible brand assciatins; (3) Eliciting the prper custmer respnses in terms f brand-related judgment and feelings; and (4) Cnverting the brand respnse t create an intensive, active lyalty relatinship between custmers and the brand The CBBE mdel emphasises the duality f brands: the ratinal rute t brand building is n the LHS and the emtinal rute is n the RHS The creatin f significant brand equity requires reaching the pinnacle f the brand resnance pyramid which nly ccurs when the right building blcks are in place The building blcks f the brand resnance pyramid Brand salience: hw easily and ften custmers think f the brand under varius purchase r cnsumptin situatins Brand perfrmance: hw well the prduct r service meets custmers functinal needs Brand imagery: the extrinsic prperties f the prduct r service, including the way in which the brand attempts t meet custmers psychlgical r scial needs Brand judgements: custmers wn persnal pinins and evaluatins Brand feelings: custmers emtinal respnses and reactins with respect t the brand Brand resnance: the nature f the relatinship custmers have with the brand and the extent t which the feel they re in sync with the brand Resnance reflects the intensity r depth f the psychlgical bnd that custmers have with the brand, as well as the level f activity engendered by this lyalty 4
5 Marketing cmmunicatin effects n brand equity Marketing cmmunicatins affect brand equity and drive sales in many ways: Create awareness f the brand; Link the right assciatins t the brand image in cnsumers memry; Elicit psitive brand judgments r feelings; Facilitate a strnger cnsumer-brand cnnectin Develping the marketing cmmunicatins mix Marketing cmmunicatins must be integrated t deliver a cnsistent message and achieve strategic psitining Marketers must assess which experiences and impressins will have the mst influence at each stage f the buying prcess. Brand resnance has fur dimensins (1) Behaviural lyalty: custmers repeat purchases and the amunt r share f categry vlume attributed t the brand (2) Attitudinal attachment: when custmers view the brand as being smething special in a brader cntext (3) Sense f cmmunity: when custmers feel a kinship r affiliatin with ther peple assciated with the brand (4) Active engagement: when custmers are willing t invest persnal resurces int the brand beynd thse expended during purchase r cnsumptin f the brand Creating brand resnance Accrding t the CBBE mdel, resnance is mst likely t result when marketers have created: Prper salience and breadth and depth f awareness; Firmly established pints-f-parity and pints-f-difference; Psitive judgments and feelings that appeal t the head and the heart. Integrated marketing cmmunicatins (IMC) prgram Several factrs t cnsider in develping the marketing cmmunicatins mix: type f prduct marketing, cnsumer readiness t make a purchase, stage in prduct life cycle, and brand s market share and psitining Marketers shuld be media neutral evaluate all pssible cmmunicatin ptins in terms f efficiency and effectiveness Anything that causes a cnsumer t pay attentin t the brand can increase brand awareness, at least in terms f brand recgnitin. Brand recall may require mre intense and elabrate prcessing. Marketers shuld mix and match cmmunicatin ptins t build brand equity chse a variety f different cmmunicatin ptins that share cmmn meaning and cntent but als ffer different, cmplementary advantages s that the whle is greater than the sum f its parts svip Interactive marketing cmmunicatins List f sme interactive marketing cmmunicatin ptins: (1) Websites (2) Micrsites (3) Search ads (4) Display ads (5) Interstitials (pp ups) (6) Internet-specific ads and vides (7) Spnsrships (8) Alliances (9) On-line cmmunities (10) (11) Mbile Marketing 5
6 Advantages Tailred messages that can engage different segments f cnsumers by reflecting special interests and behaviur Cntextual placement f ads High accuntability effects can easily be traced Disadvantages Custmers define the rules f engagement and can insulate themselves with the help f agents and intermediaries Marketers lse cntrl ver what custmers will d with their n-line messages and activity Traditinal media can ffer greater cntrl in that the message is mre clearly frmulated and expressed Interactive marketing cmmunicatins and brand resnance The pwer f interactive marketing cmmunicatins as a brand building tl is its versatility it can psitively impact every aspect f the brand resnance pyramid Salience Interactive marketing can imprve bth the breadth and depth f brand awareness. Internet permits very specific targeting f ptentially difficult t reach grups; especially effective at reaching peple during the day Key advantage is being able t reach custmers as they seek infrmatin, heightening awareness at ptential purchase pprtunities Perfrmance and imagery Can help establish a number f key perfrmance and imagery pints-f-parity and pints-f-difference versus cmpetitrs Websites are able t cnvey rich infrmatin, cmparisns, and help establish brand persnality by its tne and creative cntent. Judgment and feelings Can deliver sight, sund, and mtin; thus can create and impact experience enduring feelings. Resnance Mst useful in terms f creating resnance in that it permits daily r frequent encunters and feedback pprtunities Active engagement cnsumers can learn frm and teach each ther abut the brand, express their cmmitment and bserve the brand lyalty f thers Integrating interactive marketing cmmunicatins Marketers must take a micr and macr perspective. Must ensure that, in a micr sense their interactive marketing cmmunicatin activities are designed t be as effective and efficient as pssible. Must ensure, in a macr sense, that they are well integrated with ther n-line marketing cmmunicatin activities as well as ff-line activities Six criteria in develping the mst effective and efficient marketing cmmunicatin prgram: (1) Cverage: the prprtin f the audience that is reached by each cmmunicatin ptin emplyed (2) Cntributin: the inherent ability f a marketing cmmunicatin t create the desired respnse and effects frm cnsumers in absence f expsure t any ther cmmunicatin ptin (3) Cmmnality: the extent t which cmmn assciatins are reinfrced acrss cmmunicatin ptins (4) Cmplementarity: the extent t which different assciatins and linkages are emphasised acrss cmmunicatin ptins (5) Versatility: the extent that a marketing cmmunicatins ptin is rbust and effective fr different grups f cnsumers (6) Cst Discussin Summary The marketing cmmunicatins envirnment has changed dramatically resulting in new challenges t marketers t build and manage their brands CBBE mdel emphasises the imprtance f understanding brand knwledge structures The brand resnance pyramid is a means t track hw marketing 6
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