Brand

Question 1

Article argument

Answer 1

Foods to Harley Davidson, we all have strong emotional connections to the brands we love. Yet in recent years, approaches to branding have stagnated, relying on models, structures, and thinking from decades ago. In the fast-paced, constantly-changing world of the modern marketplace, approaches to branding must evolve if they are to survive.

Question 2

Why do the old approaches to branding no longer work?

Answer 2

The way we interacted with brands 20 years ago is irrelevant today. And yet we use the same methods for measuring, building, and managing brands.

Question 3

What is Brand Intimacy

Answer 3

Brands that do well today are the ones that touch peoples’ emotions in deep, meaningful, and authentic ways

It starts with the understanding that 90 percent of decisions are made on emotion. Brands that do well today are the ones that touch peoples’ emotions in deep, meaningful, and authentic ways. A key finding was that Brand Intimacy parallels human intimacy. Other key findings are that Brand Intimacy happens in stages and that intimacy is not permanent.

Question 4

Can you explain the Brand Intimacy model?

Answer 4

made up of the key components that contribute to building intimate brand relationships

Question 5

We use six archetypes

Answer 5

1 Fulfillment (superior quality)
2 Identity (values customers identify with)
3 Enhancement (makes customer life easier)
4 Ritual (customer’s daily routine)
5 Nostalgia
6 Indulgence

Question 6

What are the common pitfalls on this journey?

Answer 6

1 companies neglect their brand essence – their core foundation
neglect the intangible, emotional impact of their brand because they don’t know how to measure emotional connections
- lack authenticity

Question 7

How do companies become architects of Brand Intimacy?

Answer 7

1 Examine the bonds your brand builds
2 Articulate and motivate through your brand essence
3 Align your brand and your cultural values
4 Design and communicate for today’s aesthetic sensibilities
5 Manage your brand and foster your marketing community like an operating system
6 Drive your brand to inform and please customers in every interaction
7 Use the proliferation of devices and platforms as an ally
8 See your brand as a community and yourself as the activities coordinator
9 Don’t let the deluge of data drown out the signal from the noise
10 Create and sustain ultimate brand relationships

Question 8

What is Brand Formally

Answer 8

proprietary trademark for a specific product or service

Question 9

What is Brand Conceptually

Answer 9

A “contract” from the company to its customers; A promise of specific benefits, quality, value, and experiences. A relationship…

Question 10

What is Brands Equity

Answer 10

the commercial value that derives from customer perception of the brand name

18% of B2B decisions are driven by brand

brands deliver higher shareholder value!

% part of market valuation

Question 11

Top Brand Equities according to Interbrand

Answer 11

Apple
Google
Amazon
Microsoft
Cocacola

Question 12

How does Interbrand calculate Brand Equity? (4)

Answer 12

1 Financial Performance: of firm
2 Role of Brand: in purchasing decisions as %
3 Brand Strength: as a risk discount factor
4 Brand Value: NPV of brand into the future

Question 13

How Interbrand calculates Brand Strength

Answer 13

Clarity
Commitment
Governance
Responsiveness
Relevance
Authenticity
Differentiation
Consistency
Presence
Engagement

0-10 for each and added up
use internal data from employees, customer data, external brand tracking data, customer engagement data

Question 14

What makes Authenticity? (4)

Answer 14

1 Continuity: history and origin
2 Credibility: transparent and honest
3 Integrity: true to values
4 Symbolism: meaning people hold to it

Question 15

What’s this example:

Allbirds says “The secret to creating the most comfortable shoes you’ve ever set foot in? Harnessing the incredible properties of our planet’s natural materials, such as New Zealand superfine merino wool.”

Answer 15

Brand Authenticity (Integrity)

Question 16

What’s this example:

Levis test: people would pay more for Levis from the original SF factory than from some new factory or foreign factory

Answer 16

brand authenticity (Continuity)

Question 17

Types of Brand Portfolio (1)

Brand Hierarchy

Answer 17

1 House of Brands: P&G, Nestle, Coca Cola, Mars
2 Endorsed Brands: Marriot has Courtyard, Residence, Fairfield
3 Sub-Brands: Gillette Venus
4 Branded House: Virgin has a lot of airlines and hotels all with Virgin name

^Goes from most individual branding to most umbrella branding

Question 18

How to build strong brand? (3)

Answer 18

Awareness
Association
Relationship

Emotional Connection
Experiential Branding

Question 19

Experiential Branding

Answer 19

Promise + Experience = Relationship

Question 20

Emotional Connection Branding

Answer 20

Psychological Contract

Loyalty

Question 21

See Hierarchy of Brand Diagram

Answer 21

Consumers ask questions
Company takes brand measures
The Ideal Outcome:

https://docs.google.com/document/d/16Cv-14tTUctAkAmEfxl4gpI5dHD-wihzqtSzMC1YhQU/edit?usp=sharing

Question 22

What is this example:

Coke announced a new formula and everyone freaked out

Answer 22

Emotional Connection

• Loyalty
• Psychological Contract

Question 23

Brand Personality
What are the 5 Personality Dimensions?

according to Aaker

Answer 23

1 Sincerity
2 Excitement
3 Competence
4 Sophistication
5 Ruggedness

Question 24

What is this example:

Whirlpool ads are attractive suburban woman (cheerful quiet creative modern gentle)

KitchenAid is a fashion career woman (smart, aggressive, glamorous, wealthy, elegant)

Answer 24

Brand personality

Question 25

How to keep the strong brand:
Awareness
Association
Relationship

Answer 25

Stay loyal:
Consistent Experience
Authenticity
Intimacy

Reinforce the brand:
product, packaging, symbols, etc.

Leverage Brand:
Brand extensions and Portfolios

Question 26

Brand Identity

Answer 26

includes the identifying characteristics of the brand, such as brand name, logo, symbol, character, slogan, jingle, product design, and packaging.

unique, memorable, consistent, and flexible to adapt

1 Identify offering and
2 differentiate it from competition

Question 27

brand meaning

Answer 27

it reflects buyers’ understanding of the value proposition associated with a particular brand.

eg. Tide Tylenol, and Michelin are commonly associated with quality products.
For example, Rolls-Royce, Louis Vuitton, and Tiffany’s signify social status

Question 28

Goal of Brand Identity

Answer 28

1 Identify offering and

2 differentiate it from competition

Question 29

Branding as a Value-Creation Process

Answer 29

Company must consider 5C
customers, the
company: use their resources like a company with an established reputation and expertise in a particular domain can use this reputation to build its brand.

collaborators: co branding strategies like Coke and splenda
competitors: look for points of difference and points of parity
context: economic, business, technological, sociocultural, regulatory, and physical aspects of the environment

Question 30

Brand Hierarchy

Answer 30

he relationship among different brands in a company’s portfolio

Question 31

What are (2) core approaches to managing multiple brands

Answer 31

1 individual branding
2 umbrella branding

house of brands,
endorsed brands
sub brands
branded house (Heinz, Virgin)

Question 32

advantage of an individual-brand strategy

Answer 32

serve diverse customer segments in diverse product categories without diluting the image of its brands

Question 33

key advantage of umbrella branding

Answer 33

leverages the equity of an existing brand - less costs

but if any product doesn’t do well, the whole system is down

Question 34

Brand Dynamics

how do brands evolve over time? (2)

Answer 34

brand repositioning

brand extensions

Question 35

brand repositioning

Answer 35

changing an essential aspect of the brand, most often to increase its relevance to target customers.

1 respond to change in target customers (General Mills has consistently refined the image of Betty Crocker, a fictitious character designed to offer cooking advice to consumers)

2 reach new target market (Procter & Gamble’s cleaning product Mr. Clean was introduced as Mr. Proper in Germany)

3 counteract change in competitors branding strategy (Energizer Bunny in the United States forced Duracell to discontinue Duracell Bunny)

4 respond to legal challenges (Kentucky Fried Chicken abbreviated its name to KFC to avoid paying license fees to the state of Kentucky)

Question 36

Brand Extensions

what is brand extension and
what are 2 types?

Answer 36

the strategy of using the same brand name in a different context, such as a different product category or a different price tier.

(Starbucks, which has become synonymous with coffee, extended its brand to include ice cream sold in grocery stores)

1 vertical brand extension
2 horizontal brand extension

Question 37

vertical brand extension

Answer 37

stretch to a production different price tier

1 upscale brand extension (Volkswagen’s attempt to enter the luxury car market with the Volkswagen Phaeton in 2004)
Usually you have to rebrand your new offering like Toyota’s Lexus.

2 downscale brand extensions (Armani Exchange)

Question 38

Horizontal Brand Extensions

Answer 38

applying the brand to a different product category, typically within the same price tier

(Ralph Lauren successfully extended its Polo brand from clothing to home furnishings such as bedding and towels)

Question 39

potential downside to horizontal brand extension?

Answer 39

brand dilution - it is hard to attach specific meaning to your brand.

(Heinz All-Natural Cleaning Vinegar—the company’s first nonfood product launched in 2003—failed, in part, because consumers were confused by the Heinz-branded vinegar-based cleaning aid)

Question 40

Brand Equity

What is brand equity?

Answer 40

the financial value of the brand, the premium that should be placed on a company’s valuation because of brand ownership.

key drivers are
1 brand power
2 company’s utilization of power of its brand (user base, sales volume, and pricing)

Question 41

Brand Power

Answer 41

a key driver to brand equity

it is the brand’s ability to differentiate the offering from the competition and create customer value through meaningful associations.

eg. price premium customers are willing to pay for the branded product compared to the identical unbranded product

Question 42

what is the difference between brand equity and brand power

Answer 42

!! brand equity is value brand creates for company but brand power is value brand creates in mind of customers.

brand equity is function of brand power and company’s utilization of power of its brand

Question 43

How do you measure brand equity?

Answer 43

1 cost based approach (cost to create the brand e.g., marketing research, advertising, and legal costs)

2 market based approach (difference in the cash flows generated from the branded product and a functionally equivalent but nonbranded product)

3 Financial approach (net present value of the cash flows derived from the brand’s future earnings.)

Question 44

What is the financial approach to calculating brand equity?

Interbrand uses this

Answer 44

1 estimate company future cash flows
2 estimate contribution of the brand to these cash flows
3 adjust these cash flows with a unique risk factor that reflects the volatility of the earnings attributed to the brand.

Brand equity - NPV future cash flows * brand contribution factor * Risk factor

Question 45

market based approach to calculating brand equity

Answer 45

brand equity = sales revenues with brand - sales revenues without brand - branding costs

Question 46

Summary

A brand is a marketing tool created for the purpose of differentiating a company’s offering from the competition and creating value for customers, the company, and its collaborators.

A brand has two key aspects:

Answer 46

(1) brand identity, which includes identifying characteristics, such as name, sign, symbol, character, and design, and
Brand identity aims to identify the company’s offering and differentiate it from the competition.

(2) brand meaning, which reflects a set of offering-related associations in the mind of the buyer.
In contrast, brand meaning aims to create value (for customers, the company, and its collaborators) that goes beyond the product and service characteristics of the offering.

Question 47

Summary

Managing brands involves two types of decisions:

Answer 47

(1) strategic decisions, which are a function of the offering’s target market, defined by its customers, company, collaborators, competition, and context, and
(2) tactical decisions, which are a function of the other marketing mix variables: product, service, price, incentives, communication, and distribution.

Question 48

Summary

Two important branding decisions involve managing the brand hierarchy and managing the brand dynamics.

Answer 48

Brand hierarchy reflects the relationships among different brands in a company’s portfolio. The two popular approaches to managing multiple brands are individual branding and umbrella branding.

Brand dynamics reflect the evolution of the brand over time. The two common types of brand dynamics are brand repositioning—which involves changes to an existing brand, most often to make the brand more relevant to its target customers—and brand extension—which involves broadening the set of underlying product categories to which the brand is applied without necessarily changing the core brand.

Question 49

Summary

Brand equity is the net present value of the financial benefits derived from the brand.

Answer 49

Brand equity is a function of brand power, as well as a number of additional factors reflecting the company’s utilization of the strength of its brand.

Brand power reflects the brand’s ability to differentiate the offering from the competition and create customer value through meaningful associations. Unlike brand equity, which reflects the value of the brand to the company, brand power reflects the value the brand creates for customers.

The three most popular approaches to measuring brand equity are cost-based (the cost of recreating the brand), market-based (the difference in the cost-adjusted cash flows of a branded and nonbranded product), and financial (the net present value of the cash flows of the offering’s future earnings that are attributed to the brand). Using alternative valuation methods that employ different assumptions can greatly improve the accuracy and consistency of the resulting brand equity estimates.

Question 50

Brand Audit

Answer 50

Brand Audit: A comprehensive analysis of a brand, most often to determine the sources of brand equity.

Question 51

Fighting Brand:

Answer 51

Fighting Brand: A downscale (lower priced) brand introduced to shield a major brand from low-priced competitors.

Question 52

Generification:

Answer 52

Trampoline, Brazier, Escalator, Thermos, Yo-Yo, and Aspirin lost their trademark-protected status because of popular use; Xerox, Rollerblade, Velcro, and Google are considered to be at risk of following them.