Strategic Brand Management Final Notes Essay Example

Strategic Brand Management: Final Notes Essay Strategic Brand Management Final Study Guide Entire Book, but focus on Chpt 8-15 Reading: The Anatomy of Buzz- How to Create Word of Marketing- (Has taken significance due to 3 reasons: noise, information overload, skepticism-don’t believe message from companies and connectivity-internet). Takes a network approach. The importance of Buzz depends on the 1. Nature of your product (paperclips vs. movies) 2. The people that you’re trying to reach (younger people are more influenced by peers) 3. Your Customer’s connectivity 4. Your marketing strategy (if you have a contract, buzz is less important) 1. Buzz is an invisible network-You will never really see how buzz moves from person to person. You just need to understand that people need to communicate with one another, and figure out how to get them talking. 2. There are thousands of networks through which buzz flows-These networks are loosely connected with one another. Buzz can start one, but might not jump to another without a push. 3. In every network, there is a person who is the hub-Opinion Leaders(Regular Hub, Mega Hub-celebrity, press, Expert Hub, Social Hub)that person needs to be cultivated so he can spread the work about your product or service. Learn how to identify and engage this person. Reach the hub early! 4. A great product is essential- Contagious products- products that evoke an emotional response (blair witch), products that advertise themselves (wheeled luggage bags), products that leave traces, products that become more useful as more people use them (phones), products that are compatible, products that do the rest. We will write a custom essay sample on Strategic Brand Management: Final Notes specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Strategic Brand Management: Final Notes specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Strategic Brand Management: Final Notes specifically for you FOR ONLY $16.38 $13.9/page Hire Writer There is no reason to spread buzz if the product isn’t compelling. 5. Networks must be seeded-Before word-of-mouth can take off, each network must be seeded with suggestion, maybe through first-time or free offer, put the product in their hands, reduce price barrier, listen for silence Rules of Networks- networks are invisible, people link with others like them, similar people form clusters, buzz spreads through common nodes, information gets trapped in clusters, network hubs and connectors create shortcuts, we talk to those around us, weak ties are surprisingly strong, the net nurtures weak ties, networks go across markets. Ads and Buzz can work together- be careful because the wrong kind of advertizing can kill buzz. Distribution and Buzz can work together- seed retailers, or create mystery Reading: Brand Asset Management (–In phases) 1. Develop a Brand Vision- a statement of overall goal for the brand, the target market, the POD, and financial goals, all of which involves senior management approval and that fills in a financial growth gap. 2. Determine Your Brand Picture-determine your brand’s image (association and persona), create your brand’s contract (promises the brand makes to the customer), craft a brand-based customer model (why do they chose one brand over another, how does your brand stack up, what are the opportunities for growth) 3. Develop a Brand Asset Development Strategy- positioning your brand for success, extending your brand, communicating your brand’s position, leveraging your brand to maximize channel influence, and pricing the brand at a premium. 4. Supporting a Brand Asset Management Culture- measuring the ROBI and establishing a brand-based culture Final Review- Building Customer-Based Brand Equity Tools and ObjectivesChoosing Brand Elements(Must be memorable, meaningful, favorable, transferable, adaptable andProtectable)Marketing ProgramsProduct-tangible/intangible BenefitsPrice-value perceptionDistribution Channel- Communications-Leverage Brand Association(company, country of origin,event, etc)| Knowledge EffectBrand AwarenessDepth-Recall and RecognitionBreadth- Purchase and ConsumptionBrand Associations (ex. ountry of Origin)Strong-relevant/consistentFavorable-Unique-POD, POP| 9 Brand OutcomesPossible outcomes are-Loyalty -Less vulnerable to competition and marketing crisis-Lower/Higher margins-Elastic/Inelastic Pricing Response-Increased marketing comm. Efficiency-Licensing Opportunities-Greater trade Cooperation-More Favorable Brand Extension Opportunities| Stages of Brand Development- Customer-Based Brand Equity Pyramid Customer-Based Brand Equity Pyramid-Branding Objectives at Each Stage Managing Customer-Based Brand Equity Define Brand-Product Matrix-Brand Extensions: establish new equity and enhance existing equity. Brand Portfolio: maximize coverage and minimize overlap Enhance Brand Equity Over Time- Brand Reinforcement, Brand Revitalization Establish Brand Equity over Market Segments- Identify Differences in Consumer Behavior, Adjust Branding Programs Brand Positioning (Why is it better, how it is different, the solution to the buyer’s problem, its unique selling proposition) The Process 1. Target Audience (be very focused to have more brand resonance)(D,B,P,G) and must be sizable, identifiable, accessible, responsive. . Competitive Frame of Reference (how do customers relate to you and others)-direct competitors indirect competitors, perceived competitors 3. Benefits-(rational- features-often with tech products/emotional-connection Apple IPod)-POD must be feasible, communicable, sustainable, relevant, distinctive, believable- is desired by target consumer, company can deliver on promise POP 4. Brand Values- abstract brand associations 5. Brand Personality-5 Factors sincerity, excitement, competence, sophistication, ruggedness 6. Brand Essence/Mantra- McDonalds: Food, Folks, Fun=Brand function, Descriptive, Emotional Brand Positioning Matrix: Mapping Differentiation- Relevance and Differentiation Positioning Statement For target audience, brand name is the product description that product payoff 1/Reason Why and product payoff 2/Reason Why. For the Asian or Asian American grocery store consumer, Ranch 99 is the Asian grocery store that has the largest selection of Asian food products and the lowest prices in the San Diego region. Guidelines for Building Brand Equity: 1. Mix and match brand elements 2. Ensure high quality by creating rich images and linking tangible and intangible brand elements 3. Adopt a value-based pricing strategy (customers pay a premium) 4. Consider direct/indirect distribution options (push/pull) 5. Mix up marketing communications 6. leverage secondary associations Why Brand Management Fails- failure to communicate meaning of brand, to live up to brand promise, adequately support brand, be patient, balance consistency and change, to understand the complexity of brand equity measurement and management. Highlights: Chpts 8-10 Brand Value Chain: To Trace the value creation process for brands to better understand the financial impact of the brand to better understand the financial impact of brand marketing expenditures and investments. Brand Value Stage MultipliersProgram QualityMarketplace ConditionsInvestor Sentiment (Clarity, Relevance, (Competitive Reaction, Channel Support(Market Dynamics, Growth potential Distinctiveness, Consistency)Customer Size and profile)risk profile, brand contribution) Brand Tracking Studies Brand Audits-Provide in-depth information and insights for long-term strategy and positioning development Tracking Studies-involve information collection from consumers on a routine basis over time. We should track: Awareness/image, sources that make brand equity, corporate family tracking. Brand Tracking Survey Format: Follow the Customer-Based Brand Equity Pyramid from bottom to top!! How: Who to track: Current customers (light, medium and heavy users) loyal customers vs. rice sensitive customers, non-customers rejecters, When and Where to track: continuous and regular interval tracking-frequency depends on frequency of product purchase. Interpreting tracking studies: shifts are often subtle, what are the minimum threshold numbers. Brand Context Measures: Your brand does not live in a vacuum. What’s happening in the environment (competitive frame of reference) will impact brands long-term value. Examine 8 factors: economic indicators, retail trends, t echnology, media indicators, demographic profile, other products and service, personal attitudes and values, attitudes to brands and shopping. Brand Equity-Who’s responsible? Senior management who develops a brand review process: review brand sensitive material, review status of brand initiatives, review new brand positioning conflicts, etc. Understanding Consumer Behavior: Why do people buy our brand? Or see other brands? See â€Å"Brand Asset Management Measuring Sources of Brand Equity: Qualitative Research Techniques: focus groups, free association, brand personality and values, Projective Techniques: (ex. Maxwell House vs. Nescafe example) (ex . Presidents and products) experiential methods. Quantitative Research Techniques: Awareness, recognition, recall, image, attitude and usage, product-concept, brand relationship. Quantitative Techniques: n 200, generally between 400-1000. Can test 2 things. Awareness- recognition of packing on shelf (eye tracking technique), recall-identify the brand under different circumstances (aided and unaided),( techniques: fake branding, false guesses etc. ) Image-(Strong, Favorable and Unique)- Forced choice, purchase intent, 3 measures of consumer beliefs. -Free choice (which attributes they prefer -Scaling (agree disagree scale 1-6) Ranking (how close is a brand associated with a attribute) Types of Brand-Focused Quantitative Studies Attitude and Usage Survey (AU)-measures attitudes toward brands, describes category involvement, how consumers use the products, track trends. Brand Segmentation Studies- Net Promoter Score-Promoters-Detractor=Net Promoters. Scale of 1-10, 9-10 promoters, 7-8 passives, 1-6 detractors, Asks â€Å"Would you re commend brand X? † Brand Loyalty Studies-Past purchase percentage mix/future purchase mix Brand Substitutability-What brand did you buy last time? , If not available, which brand would you buy? Track repeat rate. YR Brand Asset Valuator Model-Important!! Five Measures of Brand Equity (Pillars) 1. Differentiation-how a brand is different 2. Energy-ability to meet future consumer needs, attract new customers (momentum, dynamic) 3. Relevance-Brand’s appeal (size of franchise, not necessarily profitability) 4. Esteem-How a brand is regarded and respected 5. Knowledge-how familiar and intimate customers are with brand Developed in 1993 and updated in quarterly waves in the US. Its global, 400,000 consumers, 20,000 brands, 72 parameters. Assesses different categories simultaneously vs. one category. Brand Health Indicator- Brand strength: leading indicator future values, Brand Stature: lagging indicatorpast performance. High Brand Strength(Future Performance, Differentiation, Energy and Relevance)| Niche/Unrealized Potential/Growing| Power Leaders vs. Declining Leaders| Low Brand Strength (Future Performance, Differentiation, Energy and Relevance)| New or Unfocused Brands| Eroded| YR Brand Asset Valuation Model| Low Brand Stature (Current Performance Esteem and Knowledge)| High Brand Stature(Current Performance Esteem and Knowledge)| Introducing New Products and Line Extensions New Product Strategic Matrix Current Products| New Products| Current Markets| Market PenetrationStrategy| Product Development Strategy| New Markets| Market DevelopmentStrategy| DiversificationStrategy| Branding Options: 1. Develop a new brand 2. Apply an existing brand (Brand extension) 3. Combine a new brand with an existing brand (Levi’s Dockers) (Brand extension) Brand Extension: 1. Line extensi on 2. Category extension. Why Products Fails: market too small, product is poor match for the company, inadequate product research, entered too early or too late in the market, provided insufficient ROI, product not new or different, unrecognizable/limited capability. Advantages of Brand Extensions: 1. Facilitate New Product Acceptance 2. Provide Feedback Benefits to the Parent Brand Company Disadvantages of Brand Extensions: 1. Possible customer confusion 2. Retailer resistance 3. Can fail and hurt parent brand 4. Can Cannibalize parent brand,5. Can hurt image 6. Can dilute brand meaning Brand-Building Situations Chpt. 12 1. Managing a Corporate Brand, 2. Building a Sub-Brand, 3. Branding an Ingredient 4. Branding a Commodity (coffee, milk, a location ex. Juan Valdez) 5. Managing a Portfolio 6. Building a Corporate Brand 7. Managing a High Growth Brand. Brand-Product Portfolio Strategy Brand-Product Matrix: Brand Portfolio is the set of all brands and brand lines the firm sells in a particular category and the product line. Breadth Vs. Depth of the Product Line: Different lines vs. variants Breadth is how many lines Depth is the variances within Ex. Product from PG | Laundry Detergent| Other Product line| Brand 1| Tide| | Brand 2| Cheer| | Brand 3| Dreft†¦and so on| | Determine the Breadth of a Branding Strategy-Category Attractiveness: 1. Review aggregate market factors 2. Category/industry factors 3. Environmental factors. Reasons for Introducing Multiple Brands: 1. Any one brand is NOT viewed equally favorable by all market segments, increase shelf presense, to attract customers who might switch to another brand. Ex. Mother switches from Tide to Dreft. Special Roles of Brands in a Brand Portfolio: 1. Attack market segments not being served by other brands 2. Flanker to protect flagship brand (5 different brands of beer for Miller) 3. Cash Cow (Milk for Profit)-Funyons 4. Low to end entry level to attract new customers (100 series of BMW) 5. High end prestige product to enhance credibility of entire portfolio (Olay Microdermabrasion) 6. To increase internal competition within firm 7. To leverage economies of scale Ideal Brand Portfolio: Eight Categories of Brand Definition 1. Power -needs to be defended ex. Tide 2. Sleeper -with support, can grow into a power brand 3. Slider -has-been brand, needs attention! 4. Soldier -needs no management attention ex. Funyons 5. Black Hole -Resource suck, no payback 6. Rocket- quickly on its way to be a power brand 7. Wallflower- underappreciated brand with loyal customers (Payday candybars) 8. Discard- should have been tossed Brand Hierarchy: permits companies to focus their communication on key brand elements: Corporate Brand (top) (GM)Family Brand (Chevy)Individual Brand (El Camino) Modifier (SS) Importance Corporate Image Associations: When the brand is primary corporate (GE/HP/BP), then the corporate brand image has to reflect certain associations 1. Common Product attributes, benefits or attitudes 2. People and relationships 3. Values and Programs (CSR) 4. Corporate Credibility (expertise, trustworthiness, likeability) Designing a Brand Strategy: 3 options Corporate Dominant (16%)- corporate brands, house brands -Mixed Brands (52%)- ex. Kellogs corn flakes-dual brands, endorsed brands -Dominant Brand (32%)- mono brands, furtive brands (corporate identify undisclosed Global Marketing (Now a Prerequisite for Success) Why Go Global? 5 Reasons 1. Perception of slow growth and increased competition in domestic markets 2. Belief in enhanced oversees growth and opportunities (BRIC) 3. Desire to reduce costs from economies of scale 4. Need to diversify risk 5. Recognition of global mobility of customers Four Major Decisions to Make Before Going Global 1. Decide which markets to enter (India,EU? ) 2. Decide how to enter the market- (J. V, FDI, exports? ) 3. Decide on the marketing strategy (global or multinational? ) 4. Decide on the marketing organization (centralized or decentralized) Some Advantages of Going Global: lower marketing costs, consistency in brand image, power and scope, economies of scale, etc. Some Disadvantages of Going Global: differences in consumer needs/wants (Venezuela/Colombia), differences in consumer responses to marketing, differences in competitive scope, differences in legal environments, differences in marketing institutions, etc. Selecting Global Markets and Devising Market Entry Strategies Global Market Selection Criteria: economic environment, cultural environment, demographic environment, political/legal environment. 3 Global Market Entry Strategies (Important! ): 1. Export existing brands 2. Acquiring existing brands 3. Creating some form of brand alliance with another firm. Trade-Offs in Market Entry Strategy Strategy| Speed| Control| Investments| Geographic Extension(exporting existing brands)| slow| High| Medium| Brand Acquisition| fast| medium| high| Brand Alliance| Moderate| low| Low| Designing Global Marketing Programs: Standardized or customized? Leverage global PODs and Advantages Global Positioning Considerations: Create mental maps, define core brand values and identify POP, POD/ 10 Commandments of Global Branding: 1. Understand similarities and differences in the global branding landscape 2. Don’t take short-cuts in brand building 3. Establish marketing infrastructure 4. Embrace integrated marketing communications 5. Cultivate brand partnerships 6. Balance Standardization and Customization 7. Balance global and local control 8. Establish operable guidelines 9. Implement a global brand equity measurement system 10. Leverage brand elements Criteria to Develop Successful Global Brands and Viable Industries 3 Essential Criteria: 1. Global positioning and branding, 2. Technology that can be applied globally 3. Capabilities for local implementation Global Branding: Setting the Stage: Centralized: Power at HQ, strong creative theme. Conditions for success= education across the company, global appeal, global recognition of benefits, strong communication. Decentralized: Power in the field, positioning varies with markets, multiple creative directions, create different consumer messages. Conditions for success=strong marketing leader, excellent communication across markets, strong localization opportunities Issues/Learning From Working Internationally: 1. Limited competitive information 2. Quality and training of staff (improving) 3. Limited understanding of research, media and alternative marketing techniques 4. Speed to market 5. Listen to locals 6. Logical vs. emotional consumers