Session 3 & 4: Leveraging the Brand
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- Tamsin Cunningham
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1 BRAND MANAGEMENT Session 3 & 4: Leveraging the Positioning, s and Equity A Is. a name, term, sign symbol or a combination of these, that identifies the maker or seller of the product. Symbolises. The thoughts, feelings and activities current and potential customers associate with your product. Develops by communicating and delivering on compelling promises to the target market. Requires pan company / interfunctional commitment. Equity equity is a reservoir of cash flow that has been earned but not yet released to the income statement (Ambler Marketing and The Bottom Line) 2 1
2 Enthusiasts Outside an Apple Store at 8am on the Morning of the iphone 3G Launch a reservoir of cash flow, earned but not yet released to the income statement Tim Ambler Marketing And The Bottom Line 3 4 2
3 Four elements of brand management 8 questions Evaluate your brand on a scale of 1 to 10 (1 poor, 10 excellent) Clear, compelling promise of unique value: Strong, positive brand associations: High levels of awareness of promise in target market: Awareness achieved through paid, earned & owned media: High internal awareness & alignment on promise : Strong promise delivery across all touch-points: d to grow in retention/ patient share/ referral or margin: d to grow market share or addressable market: 6 (positioning) Points of parity Company Competitor Points of differentiation Customer Points of differentiation Points of differentiation potential advantages within the category Points-of-difference Attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand Points-of-parity Associations that are not necessarily unique to the brand but may be shared with other brands. Associations that other brands develop as points of difference 8 3
4 A Position should be unique Based on a functional, emotional and or symbolic benefit Functional what the product does Functionality Trust / Quality / familiarity Availability Emotional how the product makes me feel about myself Personal preference and characteristics Symbolic what the product says about me Social value and meaning A combination of all three Dan Creed VP Marketing BMW USA 9 Marketing Tasks Across the brand Pyramid (post purchase) Points of difference and support What are the reasons to believe in the brand promise What are the Unique (functional, emotional, social) benefits offered? Frame of reference and points of parity What category does the brand compete in and what common benefits does it provide? Target Who is the brand for? Bonding Advantage Performance Relevance Awareness 13 4
5 In reality, 95% of advertising is a waste of money that isn't listened to or believed." Bob Kuperman, CEO DDB (One of the world s largest advertising agencies) 14 Google actually relies on our users to help with our marketing. We have a very high percentage of our users who often tell others about our search engine. Sergey Brin co-founder Google 15 5
6 "The restaurant manager trumps the brand manager every time in terms of our ability to deliver the brand promise." Russ Klein, CMO Burger King 20 The best customer service is if the customer doesn t need to call you, doesn t need to talk to. Jeff Bezos founder and CEO of Amazon 6
7 Client management behaviours will change if... leadership takes responsibility for development on a client centric organisational orientation 23 Leveraging Assets: Key Indicators 1. Retention Our customers buying for longer 2. Share of Customer Our customers buying more from us 3. Referral Our customers advocating our product/ service 4. Margin Our customers paying a higher price 5. Share of market / Organic Growth Winning customers / business from competitors 6. Addressable Market Expanding the size of the potential market 26 7
8 #1 Retention Customer Effort Score 27 # 2 Share of Customer 30 8
9 # 3 Referral NPS % Promoters = - (9 & 10) % Detractors (0 to 6) Detracto rs Passives Promote rs Not Likely Extremely Likely 31 # 4 Margin Mean Impact of Price Change on S&P 1500 Company (%) Price increase of 1% Profit increase of 8% Revenues Fixed Costs Variable Costs Source: Compustat; Mckinesy Analysis Operating Profits 32 9
10 # 4 Margin The single most important decision in evaluating a business is pricing power. If you ve got the power to raise prices without losing business to a competitor, you ve got a very good business. And if you have to have a prayer session before raising the price by 10 percent, then you ve got a terrible business. # 5 Market Share 34 10
11 # 6 Size of Addressable Market 35 BRAND MANAGEMENT Session 3 & 4: Leveraging the 11
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