Think swap

Chapter 1:
Brands:
What is a Brand?
• Brands reside in the minds of the consumer
• Brand is a “name, term sign, symbol, or design, or a combination of them (brand elements), intended to identify the goods and services of one seller or groups of sellers and to differentiate them from those of competition”
• Everything can be branded Branding vs Product:
• •
• place, or even an idea.

Brand Equity:

• equity
Importance of Brands to Consumers:


• Risk reducer
• Search cost reducer

• Symbolic device
• Signal of quality Brands reduce risk:
• Functional risk: The product does not perform up to expectations
• Financial risk: The product is not worth the price paid
• Physical risk: The product poses a threat to the physical well- being or health of the user or others
• Social risk: The product results in embarrassment from others
• Time risk: The failure of the product results in an opportunity cost of finding another satisfactory product
• Psychological risk—The product affects the mental well-being of the user Strategic Brand Management Process:
1. Identifying and developing brand plans
2. Designing and implementing brand marketing programs 3. Measuring and interpreting brand performance
4. Growing and sustaining brand equity.
Chapter 2:
Brand Equity:
Associative Network Memory Model:
• o o

Customer-Based Brand Equity:
• activities of that brand becomes price-based brand

• Brand Image:
o Consumers perceptions about the brand o Positive brand image- requires strong, favourable and unique brand associations:
▪ Strength: the more deeply a person thinks about product information and relates it to existing brand knowledge the stronger the association
▪ Favourability: higher when brand possesses attributes that satisfy consumers’ needs and wants
▪ Uniqueness: sustained competitive advantage, unique selling proposition
Brand Equity as a Bridge:
• Brand equity represents the added value endowed to a product as a result of past investments in the marketing of a brand:
o Can be good or bad investments based on whether the right knowledge structures have been embedded in customers minds
• Brand equity provides direction and focus to future marketing activities:
o Consumers will decide based on their brand beliefs and attitudes, where they think the brand should go and the success of future marketing activities Marketing Advantages of Strong Brands:

• Greater loyalty
• Larger margins
• Possible license opportunities
• Less vulnerable to competition
• Less vulnerable to market crisis


Brand Positioning:
• mind of the target market Brand Positioning Process:

1. Target market
• Define desired brand knowledge structures:
3. Points of differences
4. Points of parity Target Market:
• product
• Market segmentation:
o Divides the market into groups of homogenous consumers who have similar needs and consumer behaviour, and who thus require similar marketing mixes
• Segmentation bases:
o Descriptive:
▪ Demographic, Psychographic (lifestyle, personality), Geographic o Behavioural:
▪ *Benefits sought
▪ Best
▪ Example: Why do people buy toothpaste?
• Segment choice:
1. Identifiability: can we easily identify the segment?
2. Size
3. Accessibility: can we reach this segment?
4. Responsiveness: how favourably will this segment respond to tailored marketing activities?
Point of Differences:

▪ Product differentiation
▪ “Unique selling position” Points of Parity:

▪ Category POPs:
o o
▪ Competitive POPs:
o o
▪ Correlational POPs:
o o o
Identity and Image:
▪ Identity (Positioning):
o
▪ Image (Position):
o
Chapter 3:
Keller CBBE Model:

Creating a Strong Brand Personality:
▪ Brand associations must be favourable, strong and unique Judgement Dimensions:
▪ Customer’s personal opinions and evaluations of the brand
▪ Brand quality o Satisfaction o Value
▪ Brand credibility o Expertise o Trustworthiness o Likability
▪ Brand consideration o Relevance
▪ Brand superiority o Differentiation What is value?


Feelings Dimensions:

▪ Warmth
▪ Fun
▪ Excitement
▪ Sincerity
▪ Social approval
▪ Self-respect
Resonance Dimensions:

▪ Behavioural loyalty:
o
▪ Attitudinal attachment: o Love brand o Proud of brand
▪ Sense of community o Kinship o Affiliation
▪ Active engagement:
o o o
Brand Building Implications:
• Customers own brands
• Brands should have duality: o Head and heart
• Brands should have richness o Multiple associations, not just one
• Brand resonance provides important focus:
o What will it take to earn improved brand resonance?
• Long-term focus:
o Invest in building brand equity.
Brand Value Chain:
• Structured approach to assessing the sources and outcomes of brand equity and the manner by which marketing activities create brand value

Provides information about the function of the product or service and specific information about particular attitudes and benefits of the brand
• Likability:
o Fun and interesting o Aesthetically pleasing o Rich visual and verbal imagery
• Transferability:
o The extent to which the brand elements add to the brand equity for new products o Within and across product categories
o Across geographical boundaries and cultures
• Adaptability: o Flexible and adaptable
• Protectability:
o Legally o Competitively o Unique name

consumer ties
• Mass customization
• One-to-one marketing: o Consumers preferences
• Permission marketing Brand Experience Scale:

• Strategic intent:
o Mission: what are the objectives of the communication?
o Market: to whom is the communication addressed?
• Strategic execution:
o Message: what is the story to be communicated?
o Media: where and how will the story be delivered?
• Strategic impact:
o Money: how much money will be spent in communications? o Measurement: how will impact be assessed?
Traditional Marketing Communications:

1. What is the current brand knowledge? Have you created a detailed mental map?
2. What is your desired brand knowledge? Have you defined optimal points of parity and PODs and brand mantra?
3. How does the communication option help the brand get from current to desired knowledge with consumers? Have you clarified the specific effects on knowledge engendered by communications?

Developing Integrated Marketing Communication Programs:
6C’s of Integrated Marketing Communications Planning:
1. Coverage: Proportion of the audience reached by each communication option, as well as how much overlap exists among communication options
2. Contribution: Inherent ability of a marketing communication to create the desired response and communicated effects from consumers in the absence to any other communication option. Effect on depth and breadth of brand awareness and improving strength, favourability and uniqueness of brand associations.
3. Commonality: Extent to which common information conveyed by different communication options shares meaning across communication options
4. Complementarity: Describes the extent to which different associations and linkages are emphasized across communication options
5. Conformability: Extent to which a marketing communication is robust and effective for different groups of consumers:
a. Consumer conformability: the ability of the mode of communication to effectively communicate with the diverse group of customers
b. Consumer conformability: the ability of the communication option to inform or persuade consumers who vary on dimensions other than communication history
6. Cost: To arrive at the most effective and efficient communication program evaluations of marketing communications on all of the preceding criteria must be weighed against their cost
Using IMC Choice Criteria:
1. Evaluating communication options
2. Establishing priorities and trade-offs:
a. Commonality and Complementarity are inversely related
b. As are comfortability and complementarily
Chapter 7:
Secondary Brand Associations:
Leveraging Secondary Associations:
• Secondary associations are from something other than the brand itself • May lead to a transfer of:
o Response-type associations
▪ Judgements (especially credibility)
▪ Feelings o Meaning-type associations
▪ Product or service performance
▪ Product or service imagery
• May allow marketers to create and reinforce important PODs and POPs • Commonality leveraging strategy:
o Makes sense when consumers have associations to another entity that are congruent with the brand
• Complementarity branding strategy:
o Makes sense when entities represent a departure for the brand because there are few if any common or similar associations
o Brand wants to shift position.
Secondary Sources of Brand Knowledge:
• Companies (through branding strategies)
• Countries or other geographic areas (through identification of product origin)
• Channel or distribution (through channel strategy)
• Other brands (through co-branding)
• Characters (through licensing)
• Spokespersons (through endorsement)
• Events (through sponsorship)
• Other third-party sources (through awards or reviews)

• Transfer of secondary associations depends on:
o Awareness and knowledge of entity
o Meaningful of the new brand: Perceived relevance of entity linkage ▪ Fit?
o Transferability: Evaluative consistency with brand associations

o Product assortment o Pricing and credit policy o Quality of service
• E.g. consumers may assume brand is high quality because it is in in David Jones Co-Branding:
• When two or more existing brands are combined into a joint product or are marketed together in a similar fashion
• Interest in co-branding as a means of building brand equity has increased • Brand alliances, such as co-branding, require marketers to ask:
o What capabilities do we not have?
▪ E.g. Starbucks does not have capsule technology/patenting o What resource constraints do we face? (people, time, money):
▪ E.g. Capsules are bad for environment o What growth goals and revenues do we have?
Ingredient Branding:
• Creates brand equity for materials, components and parts that are contain within other branded products
• Branded ingredients are a sign of quality Licensing:
• Creates contractual agreements whereby firms can use names, logos and characters of other brands to market their own brands for some fixed fee e.g. happy meals
• Manufactures can get caught up in licensing a brand that might be popular but only a fad
• Product may not live up to the quality of brand Celebrity Endorsement:
• Using well-known and admired people to promote products
• Famous person can draw attention to brand and shape brand perceptions
• May be seen as opportunistic or insincere
• Celebrities can get in trouble and damage brand reputation Sporting Events:
• Events have their own set of associations o Ekka
Third-Party Sources:
• Canstar star rating, Michelin stars
Chapter 11:
Branding Strategies:
• A branding strategy for a firm reflects the number of and nature of common or distinctive brand elements applied to the different products sold by the firm
• Which brand elements can be applied to which products and the nature of new and existing brand elements to be applied to new products?
• Also called brand architecture strategy Brand Architecture Strategy:
• The firm’s brand architecture strategy helps marketers determine:
o Which products and services to introduce
o Which brand names, logos, symbols etc. apply to different products



• Maximise customer understanding
• Leverage brand equity
• New products and services must be branded in a way to maximise the brand’s overall clarity: o Branded house strategy:
▪ Umbrella corporate or family brand for all its products o House of brands strategy:
▪ Collection of individuals brands all with different names o Sub-brands:
▪ Brand extensions in which the new product carries both the parents name and new name

Chapter 12:
New Products and Brand Extensions:
1. Develop a new brand
2. Apply one of its existing brands
3. Use a combination of new and existing

o o
o Bring new customers into brand franchise and increase market coverage o Revitalize the brand o Permit subsequent extensions Disadvantages of Extensions:
• Can confuse or frustrate customers
• Can encounter retailer resistant
• Can fail and hurt parent brand image
• Can succeed but cannibalise parent brand
• Can succeed but diminish identification with any other category
• Can succeed but hurt the image of parent brand
• Can dilute brand meaning
• Can cause the company to forgo the chance to develop a new brand Understanding How Consumers Evaluate Brand Extensions:
• Managerial assumptions:
o Consumers have some awareness of and positive associations about the parent brand in memory
o At least some of these positive associations will be evoked by the brand extension o Negative associations are not transferred from the parent brand o Negative associations are not created by the brand extension
• Brand extensions and brand equity o Creating extension equity depends on:
▪ How salient parent brands associations are
▪ How favourable any inferred associations are
▪ How unique any inferred associations are
• Brand extensions and brand equity:
o Contributing to parent brand equity:
▪ How compelling is the evidence is about the corresponding attitude or benefit association
▪ How consistent the extension evidence is
▪ How relevant or diagnostic the extension evidence is
▪ How strongly existing attribute or benefit associations are held
• Vertical brand extensions:
o Extend a brand up into more premium market segments or down into more valueconscious segments
o Common means of attracting new groups of customers Evaluating Brand Extension Opportunities:
• Define actual and desired consumer knowledge of brand
• Identify possible extension candidates
• Evaluate the potential of the extension candidate
• Design marketing programs to launch extension
• Evaluate extension success and effects on parent brand equity
Chapter 13:

• Although brands should always look for potentially powerful new sources of brand equity, a top priority is to preserve and defend those that already exist
Fortifying versus Leveraging:
• In managing brand equity, marketers face trade-offs between activities that fortify brand equity and those that leverage or capitalize on existing brand equity to reap some financial benefit
Fine-Tuning the Supporting Marketing Program:
• Marketers should make changes only when it’s clear the marketing program and tactics are no longer making the desired contributions to maintaining or strengthening brand equity.
• Product-related performance associations • Non-product-related imagery associations Revitalizing Brands:
Expanding Brand Awareness:
• Breadth of awareness:
o Identifying Additional or New Usage Opportunities:
▪ Communications about the appropriateness and advantages of using the brand more frequently in existing situations or in new situations
▪ Reminders to consumers to actually use the brand as close as possible in time to those situations for which it could be used
• Identifying New and Completely Different Ways to Use the Brand:
Improving Brand Image:
• Identifying the Target Market:
1. Retaining vulnerable customers
2. Recapturing lost customers
3. Identifying neglected segments
4. Attracting new customers
• Repositioning the Brand
• Changing Brand Elements
Chapter 14:
Rationale for Going International:
• Perception of slow growth and increased competition in domestic markets
• Belief in enhanced overseas growth and profit opportunities
• Desire to reduce costs from economies of scale
• Need to diversify risk
• Recognition of global mobility of customers
Advantages of Global Marketing Programs:

(If needed) adjust brand positioning