Branding strategy Flashcards
Brand represents
Brand represent consumers’ perceptions and feelings about a product and its performance - what does it mean to customer
Brand
a name, term, sign, symbol or design,
or combination of these
- identifies the products/services of one seller or group of sellers
- differentiates them from competitors
Brand Equity
The impact of a brand name on customer response to a product and its marketing.
Positive Brand Equity
When consumers prefer and react more favorably to a branded product than to an unbranded version.
Brand Equity Significance
Measures a brand’s ability to capture consumer preference and loyalty.
4 consumer perception for brand strength
differentiation, relevance, knowledge, and esteem.
Brand Differentiation
What makes a brand unique and stand out from competitors.
Brand Relevance
How well a brand meets consumer needs and resonates with them.
Brand Knowledge
The extent to which consumers are aware and informed about the brand.
Brand Esteem
How highly consumers regard and respect the brand.
Brand Value
The overall financial value attributed to a brand.
4 Competitive Advantages of High Brand Equity
- Increased consumer brand awareness and loyalty
- Enhanced bargaining power with resellers due to consumer expectations
- Easier launch of line and brand extensions owing to brand credibility
- Protection against intense price competition and competitor marketing actions
Customer Equity
The value of customer relationships created by a brand, fundamental to brand equity
4 main branding decisions
- brand positioning
- brand name selection
- brand sponsorship
- brand development
3 Brand Positioning Levels
Product attributes,
benefits,
beliefs/values (emotional connection)
Attribute Positioning
(def and con)
Focuses on product attributes (e.g., quality, selection) but is easily imitated by competitors
Benefit Positioning
Associates brand name with desirable benefits beyond technical attributes (e.g., Whirlpool’s “power to get more done”)
Emotional Brand Positioning
Strongest level, connects with customers on a deep emotional level (e.g., Whirlpool’s “Every Day, Care” campaign)
Brand Positioning Foundation
Establishing a brand mission and vision guides its purpose and actions
Brand Promise (a brand is a promise)
Company commitment to consistently deliver specific features, benefits, services, and experiences
Characteristics of Brand Promise (3)
Should be clear, simple, and honest to set accurate buyer expectations
6 Qualities of a Good Brand Name
(1) Suggests product benefits and qualities
(2) Easy to pronounce, recognize, and remember
(3) Distinctive
(4) Extendable for future product expansions
(5) Translates easily into foreign languages
(6) Capable of registration and legal protection
Brand Name Protection (2)
- Building a brand name that becomes synonymous with the product category (e.g., Kleenex, JELL-O)
- Success might lead to the brand name becoming a generic term
Brand Protection Measures (2)
- Marketers use the brand and registered trademark symbol to safeguard their brand names (e.g., “BAND-AID® Brand Adhesive Bandages”)
- Emphasizing the distinction between the brand and generic terms (e.g., “Kleenex® Brand Tissue”)
4 Brand Sponsorship Options
- National brand (manufacturer’s brand)
- Private brand (store brand)
- Licensed brand
- Co-branded product
National Brand
- Product sold under the manufacturer’s own brand name (e.g., Samsung Galaxy, Kellogg’s Frosted Flakes)
Private Brand
A brand created and owned by a reseller of a product or service
(Manufacturer sells to resellers who market the product under their own brand name)
Licensed Brand
Manufacturers market brands that they’ve licensed from another company
Co-branding
Collaboration between two companies to create and market a product together
Brand Licensing
Companies license names, symbols, or characters from other manufacturers, celebrities, movies, or books for a fee
Apparel and Accessories Licensing
Sellers pay royalties to use well-known fashion innovators’ names like Calvin Klein, Tommy Hilfiger, Gucci, or Armani
Children’s Products Licensing
Numerous character names (e.g., Sesame Street, Disney, Star Wars, Hello Kitty) used in various products
3+ 1 Advantages of Co-Branding
- Broadened consumer appeal
- increased brand equity,
- leveraging different brand strengths
(- Example: Google and Oreo’s collaboration with Android Oreo, Sherwin-Williams & Pottery Barn’s paint collection, Taco Bell and Doritos’ Doritos Locos Tacos)
- Allows entry into new categories, leveraging partner brand strengths
(Example: Nike and Apple’s Nike+iPod Sport Kit giving Apple entry into sports market and enhancing Nike’s customer value)
2 limitations of co-branding
- Involves complex legal contracts, requires coordination in marketing efforts
- Trust between partners crucial as damage to one brand can affect the co-branded product’s reputation
4 Brand Development Choices
- Line extensions
- brand extensions
- multibrands
- new brands
Line Extensions
Extending existing brand names to new forms, colors, sizes, ingredients, or flavors within the same product category
3 Purpose of Line Extensions
- Low-cost, low-risk introduction of new products
- Meeting consumer demand for variety
- utilizing excess capacity
3 Risks of Line Extensions
- Potential consumer confusion
- loss of brand specificity due to overextension
- Diminishing returns when additional extensions offer little value or “cannibalize” existing products
Brand Extensions
Extending a current brand name to new or modified products in a different category
Advantages of Brand Extensions
- Immediate familiarity and acceptance for new products with lower development costs compared to building new brands
- Examples include Duracell Powermat and Vicks ZzzQuil, connecting with core brand values and strengths
3 Risks of Brand Extensions
- Risk of confusing the main brand’s image (e.g., Zippo perfume, Fruit of the Loom detergent)
- Failures of brand extensions (e.g., Cheetos lip balm, Heinz pet food, Colgate ready meals, Life Savers gum)
- Inappropriateness of brand name for a new product’s image (e.g., Hooters Air, Evian water-filled padded bra)
Impact of Brand Extension Failure
- Potential harm to consumer attitudes toward other products carrying the same brand name
Multibrands
Companies market multiple brands within a product category (e.g., PepsiCo’s various beverage brands)
2 Purpose of Multibranding
- Establishes different features for diverse customer segments
- Captures more shelf space, increases market share (e.g., PepsiCo’s strategy with various beverage brands)
2 Advantages of Multibranding
- Combined brands generate greater overall market share than a single brand could alone
- Offers flexibility and appeals to different customer preferences
2 Disadvantages of Multibranding
- Each brand might hold only a small market share, impacting profitability
- Resource allocation spread across numerous brands instead of focusing on a few highly profitable ones
2 reasons for creating New Brands
Created when existing brand power weakens or for entry into a new product category
Benefit of New Brand Creation
Provides a fresh identity for products when existing brand names aren’t suitable
- Example: Toyota introducing the luxury brand Lexus for luxury car consumers
2 Challenges with New Brands
- Over-proliferation of new brands can strain company resources
- Concerns in industries like consumer packaged goods about numerous brands with few distinguishing features
Megabrand Strategy
weeding out weaker or slower-growing brands and focusing on dominant brands with top market shares and growth potential
Brand Management (3)
- Continuously communicate with consumers (advertising)
- Brand experiences (manage touchpoint and internal brand buiding)
- Brand audit (evaluate strength and weakness)
Brand Communications
focus on communicating information about brands, but more importantly, that are designed to create specific emotional responses in consumers.
Brand experiences and touchpoints
encompass every iinstances in which a consumer comes into contact with a brand, from walking into a store, to seeing a branded product on a shelf, to seeing a TV commercial or a billboard, to engaging with a brand on social media. Brand managers must manage, and to the greatest extent possible control, these interactions. This is becoming increasingly difficult with the rise of social media, because consumer comments can’t be completely controlled.
Brand icons and characters 2
objects and shapes (the Nike swoosh, the Coca-Cola bottle, the VW Beetle) and cartoon characters (as opposed to real people) that represent brands, and embody some aspect of the brand’s personality
For each brand icon or character, have them state a characteristic about the brand that it represents.
Brand ambassadors
celebrities that are carefully and strategically selected by the marketer because their personality and character is similar to the personality and character of the brand.
Brand Advocates
Brand advocates are people (as opposed to celebrities) who voluntarily take actions that promote brands. Brand managers can encourage these people to spread favourable communications about their brand, for example by sending product samples to bloggers, but they cannot control what these people say about their brands.
