Branding Flashcards
Traditionally, branding is a logo or a trademark, now it’s a promise. its meaning is co-created and dynamic.
Strong brands are:
• Symbols consumers use to construct social
identities.
- Inner-directed and Outer-directed benefits.
• Promises of an experience.
• Distinct personality
• Clear values
For a brand, perception is reality.
When do components affect consumer choice of final products?
• Component is perceived as being highly relevant for the experience
• Component company can also sell finished products (e.g., Bose).
• When a final product is a “black box” to consumers but there is concern about
safety or uncertainty about performance
o Heuristic reduces points of pain
typically, as consumer categories mature, there is a tendency for the value proposition to become increasingly multidimensional. i.e. for intel microprocessor, it will be about beyond one dimension of speed as it matures.
Sometimes, your problems stems from your success:
Intel: Business requires it to continually reacquire its customer base. Challenge: create repeat unadoption of product without generating overall brand dissatisfaction.
Intel needs to figure out a way to compel consumers to churn through its processor generations on a regular basis. It has a larger set of options than it is currently considering.
The problem is not uncommon, even for non perishables: - Come up with tangible ways to create the perception of perishability. E.g., Automotive industry: psychological reference point is the odometer, used
as a trigger to upgrade • Encourage redundant purchases • E.g., Televisions • Add new dimensions to the value proposition and give additional benefits if customers upgrade.
Brand Architecture: An organizing structure of the brand portfolio that specifies brand roles and the nature of relationships between brands.
it can be a solution for a customer seeking variety of choices.
Brand separation:
1. toward branded house: Does the master brand contribute to the offering by adding: Associations enhancing the value proposition/Credibility with organizational associations/Visibility/Communication efficiencies
2. toward a house of brands: Is there a compelling need for a separate brand because it will create and own an association/Represent a new, different offering/Avoid an association/Retain/capture customer/brand bond/Deal with channel conflict, Will the business support a new
brand name
Corona Beer: Marketing mix (4+1 Ps of marketing) -product -price -placement -promotion -packaging
5Cs of marketing
company, collaborators, customers, competitors, climate
How to know unarticulated needs of customers?
- cultural Zeitgeist Data sets and surveys
- media consumption
- consumption experiences
- qualitative, “netnography” (an online research about ethnography)
- decision-making experiments
- data analytics and social network patterns
cognitive biases and nudging go hand in hand since the cognitive biases expose our vulnerability to certain nudges which use our tendency to use less energy and efforts in decision making and make us more subject to the nudges.
6 Budges:
- Nudge via social comparison/proof
- Nudge via default
- Nudge via commitment bias and reward alignment (i.e. you are $6 away from claiming a $40 reward)
- Nudge via timing and reducing efforts
- Nudge via design by delight (i.e. an app will prompt a humorous reminder of certain sales)
- Nudge visa anchoring cues
hui
POP: point of parity - The aspects of the product offering that are largely similar to the offerings of like competitors. compete in the market.
POD: point of difference - The aspects of the product offering that are relatively distinct to the offerings of like competitors. compete with competitive advantages.
Analysis of POPs and PODs can help market positioning exercise and map out good selling points of goods and services.
hui
Brand equity:
- differentiation, energy and relevance –> energized brand strength indicating the brand’s future value
(here “energy” can be measured by i.e. no. of followers on media)
- esteem and knowledge –> brand stature, a report card on past performance
when we change the product, we have to pay attention the “stakeholders” who might feel they own the brands.
we can turn cultural capital to social capital by turning our talking and knowledge about cultures to network with people who are connected to the cultures. social capture can be turned to economic capital. economic capital can be turned to social stratification (the status, the things I know, the things I buy, who I know), which can be furthered to cultural capital through signaling and distinction.
hui
Innovation Diffusion: Rogers’ five factors
- Relative advantage—the degree to which a product is better than the product it replaces
- Compatibility—the degree to which a product is consistent with existing values and experiences
- Complexity—the degree to which a product is difficult to understand and use
- Trialability—the degree to which a product may be experimented with on a limited basis
- Observability—the degree to which product usage and impact are visible to others
Create scarcity and rarity vs ubiquity
How did Bravo manage uncertainty for Burberry?
multiple layers of risk management in fickle industry:
- a greater balance, between
- fashion and continuity products
- women wears and menswear
- accessories and apparel
- in distribution strategy
- in geography - brand authenticity
- a reduced dependence on licensing
- a tiered brand strategy; appropriate brand architecture
What is Burberry “Mass” luxury brand portfolio?
Burberry “Mass” luxury brand portfolio:
- branch anchors: heritage, continuity
- brand energizers: i.e. models. swimwear
- brand presence builders e.g accessories
- credibility builders: prorsum, even thought may not sell much but allows burberry to live in the fashion world
What is the DNA of a luxury brand other than price? (use diamond as an example)
- heroic myth (i.e. love and security)
- exquisite product (4C’s)
- iconic communication (“a diamond is forever”)
- carefully engineered celebrity (Elizabeth Taylor’s marriage event)
- ultra-selective distribution (xx months
salary) - the power of cool (social reinforcement)
