Brand Management Flashcards
loyalty programs: different advantages
- Increased customer
satisfaction - Reduced Customer churn
- Increased attraction of
new customers - Improved profitability
(cross/up-selling) - Improved profitability
(reduction in benefit
expenditure)
Increased customer satisfaction
- Simple/responsive access to the program geared towards target customers
- Improved platform with
value-driving functions - Prioritized access and
additional contact points
Reduced Customer churn
- Advantages for loyal
policyholders - Targeted direct contact with insured persons through
personalized message - Special offers for target
customers or customers
willing to switch
Increased attraction of
new customers
- Easy access even for non-
customers and direct
points of contact for
switching insurance or
insurance models - Attractive incentive
system (set of rewards or benefits designed to encourage desired behaviors)
Improved profitability
(cross/up-selling)
- Specific range of additional products tailored to customer needs
- Direct contact with customers to promote the conclusion of product deals
- Discounting of additional
products
Improved profitability
(reduction in benefit
expenditure)
- Incentives for health-
conscious behavior and
regular participation in
preventive medical check-ups - Customer management via
targeted information on
service providers
a brand
is understood as “a name,
term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers
The brand is the only sustainable
source of..
competitive advantage
BtoB brands
- stores
- brand assets
- Touchpoints
What is a brand?
- Name & Visual identity
- Reputation & Trust
- Values & Purpose
- Consumer Experience
- Brand Equity
Brands are mental images in the heads of the stakeholder groups that take on…
an identification and differentiation function and shape choice behavior
Can there be a product without a brand?
Yes, a product can exist without a brand, but in modern markets, it is rare
example : Generic Products (flour), Raw Materials & Commodities (wheat, oil)
Brand equity refers to..
the difference that customers
would pay for a branded product vs. a non-branded
product
Benefits of brand equity
- Be perceived differently and produce different interpretations of product performance
- Enjoy greater loyalty and be less vulnerable to competitive marketing actions
- Command larger margins and have more inelastic responses to price increases
- Receive greater trade cooperation and support
- Increase marketing communication
effectiveness - Yield licensing opportunitie
Brands are intangible assets
–> they can show up on the balance sheet
Financial Brand Equity
The monetary value a brand adds to a company, often reflected in financial metrics such as market
share, price premium, revenue, and firm valuation
Financial Brand Equity: measurement
Typically assessed using financial
models, brand valuation methodologies (e.g., Interbrand, BrandZ), and accounting measures like goodwill
Behavioral Brand Equity
The consumer-based perception of a brand, including attitudes, loyalty, awareness, and associations that drive consumer behavior
Behavioral Brand Equity: Measurement
Often assessed through surveys,
brand tracking studies, and consumer engagement metrics
How much is a brand worth today, based on its future financial contributions?
–> use the discounted cash flow (DCF)
Discounted Cash Flow (DCF) method: definition
to calculate the financial value of a brand
Discounted Cash Flow (DCF): calcul
Brand value : - initial investement + somme Expected Cash flow t - Expected Cash Outflows t / 1 + Discount Rate t
t
The year of the cash flow forecast, ranging form 1 to n, where n is the last year of the forecast
Expected Cashflow t
Estimated cash flow (revenue) for the year t
Expected Cash Outflows t
Estimated expenses for the year t
Discount Rate
The chosen discount rate, expressed as a decimal (e.g., 0.005 for 5%)
Brand identity
- Self-perception of the internal
target group
Brand image
- External image of the external
target group
When brand image changes brand identity
- Consumer driven Repositioning
- Crisis and Scandal
- Cultural or Market Evolution
- Unintended Brand Associations
Brand asset use what?
- colors
- Logo and Symbols
Brand architecture
- Umbrella Brand strategy
- Sub-branding strategy
- Endorsement strategy
- Product branding
–> increasing independence
–> Decreasing synergy
Umbrella brand strategy
- One name – one visual system
- Features/benefits of product or service are less important than brand promise
- Consumers trust the brand
Sub-branding strategy
- Subbrands are brands connected to a master brand that augment or modify the associations of the master brand
- The link between sub-brands and the master brand is closer than between endorsers and endorsed brands
- Subbrands use certain elements of the parent brand
Endorsement branding strategy
- The brands are independent. However, they are endorsed by
another brand, usually by the corporate brand - Although these sub-brands are obviously distinctly different, they each retain an association with the endorser parent brand through visual reference (i.e., the parent brand mark)
- This architecture strategy leverages the brand equity, reputation, and credibility of the parent brand while enjoying
independent positioning, visual identity, personality and
messaging - Three different forms: strong endorsement, token endorsement, linked name
Product branding strategy
Strategy 1 : Individual Product Branding
Strategy 2: Family Branding
Strategy 3: Private Label Branding (Store Brands)
Strategy 4: Co-Branding
Strategy 5: Ingredient Branding
Competing goals of brand architecture design
- Dominance of the
umbrella brand (“branded house“) - Dominance of the
product brand (“house of brands“)
Why do some brands launch new offerings as own brands and others don‘t?
–> launch new offereing as own brands
1. Strong Brand Equity & Trust
2. Lower Marketing Costs
3. Faster Market Entry
4. Consistent Brand Identity
–> launch new offering as separate brands
1. Different Target Market
2. Risk Management (If the new product fails, it won’t damage the reputation of the existing brand)
3. Premium vs. Budget Positioning
4. Flexibility in Marketing & Strategy
Brand building metric
- Brand awareness
- Brand image
- Customer loyalty
- Share of Voice
- Brand Equity
Brand awareness
Measures the extent to which the target audience recognizes and recalls the brand. This can
be assessed through surveys, recall studies, and social media analytics
Brand image
Evaluates how the target audience perceives the brand in terms of values, attributes, and
associations. It often involves qualitative research, surveys, and sentiment analysis
Customer loyalty
Assesses the level of repeat business, customer satisfaction, and advocacy. Metrics may
include customer retention rates, Net Promoter Score (NPS), and customer lifetime value
Share of Voice
Analyzes the brand’s visibility and presence in the market compared to competitors, providing insights into its prominence within the industry
Brand Equity
Measures the perceived value and strength of a brand in the marketplace, taking into account factors like brand loyalty, perceived quality, and associations
Performance marketing metrics
- Click-Through- Rate (CTR)
- Conversion rate
- Return on ad spent (ROAS)
- Cost per Click (CPC)
- Cost per Acquisition (CPA)
Click-Through- Rate (CTR)
Measures the percentage of users who clicked on an ad, indicating the ad’s effectiveness in generating interest
Conversion rate
Reflects the percentage of users who completed a desired action, such as making a purchase or filling out a form, showcasing the success of the campaign in driving conversions.
Return on ad spent (ROAS)
Compares the revenue generated from a campaign to the cost of the ads, helping assess the profitability of the marketing investment
Cost per Click (CPC)
Represents the average cost incurred for each click on an ad, providing insights into the efficiency of the advertising budget
Cost per Acquisition (CPA)
Measures the cost of acquiring a customer through a specific marketing channel, indicating
the effectiveness of customer acquisition efforts
