Slides Flashcards
What is a brand?
There are different answers to the question:
Kapferer’s view:
“1. A brand is a name with the power to influence buyers
2. A brand is a shared desirable and exclusive idea embodied in products, services, places and/or experiences.”
Keller: “A brand is a set of mental associations, held by the consumer, which add to the perceived value of a product or service.”
”A brand is a person’s gut feeling about a product, service, or company. It’s not what you say it is. It’s what THEY say it is.”
– Marty Neumeier
“A brand is the total sum of every customer experience. Associations, experiences, expectations. Successful brands start with customer experience and expectations to generate profit”. - LynxEye
However, depends on your perspective:
Legal: The brand as a set of signs certifying the origin of a product.
Finance/auditing: The brand as a valuable financial asset
Psychological/social: The brand as a representation of commonly held perceptions and beliefs
Business: The brand as a source of competitive advantage.
Define the concept of brand touchpoints
”Anything you might interact with that features some recognizable part of the brand’s identity.”
Give examples of brand touchpoints
Example touch points • The product/service itself • The store/distribution channel • The people • Support instructions and guides • Customer service • Market communications
Why do brands matter from the brand owner’s perspective?
- Source of differentiation: Brands bestow products with unique associations
- Legal protection: Brands enable legal protection of products’ unique traits
- Customer retention and loyalty: Brands drive recurring revenues
- Source of competitive advantage: Brands are not easily replicated
- Leverageable resource: Brands enable new business opportunities
- Sustainable resource: Brands outlive product life cycles
Why do brands matter from the consumer’s perspective?
- Simplification: Brands facilitate consumption decisions and save time
- Risk reduction: Brands reduce perceived risk in purchasing decisions
- Emotional trigger: Brands can trigger positive emotions, tied to basic needs
Cost approach to brand valuation?
Valuing a brand on the basis of what it cost to create or what it
theoretically would cost to recreate
Example methods:
• Historical cost of creation
• Reproduction/replacement cost
- RARELY APPROPRIATE!
Market approach to brand valuation?
Valuing a brand on the basis of comparing it with another brand with available market transaction information
Example methods:
• Sales transactions comparison
• Royalty relief (mixed market/income)
- NOT OFTEN USED
Income approach to brand valuation?
Valuing a brand on the basis of what it contributes to revenues and earnings discounted back to a NPV
Example methods:
• Price premium or Volume premium
• Royalty relief (mixed market/income)
• Demand Drivers / Brand strength analysis
- MOST COMMON APPROACH
Brand valuation on the basis of Royalty Relief?
Valuing a brand based on the royalty rate that a company would have had to pay to use the brand if it did not own it and instead had to license it from third party.
Brand valuation on the basis of Demand Driver Analysis?
Valuing a brand based on the effects of the brand on demand and supply functions in order to determine the influence of the brand in the decision-making process.
What is a distinctive mark?
A distinctive mark refers to a semantic and/or graphical representation for distinguishing a brand and for claiming which functions, benefits and values will become experiences associated with it.
E.g. the adidas TM and the three white lines
What does descriptive concept refer to?
A ’descriptive concept’ refer to the noun(s)/ the descriptive phrase is used in relation to a specific brand, to categorize and define what the brand is.
E.g.
- Volvo XC60 - a sports utility vehicle
- Creative ZEN - a portable media player
- Asus Eee PC - a notebook
- Toyota Prius - a hybrid [electric vehicle]
- Google Android - a platform for mobile devices
(C.f. descr. of G&S in TM-application)
Describe practical impacts of the descriptive concept.
Practical impact of the descriptive concept
- Define boundaries of trademark rights (G&S)
- Protect against trademark degeneration (genericide)
- Signal intended utility or usage
- Define segments and competition
- Strengthen the customer perceived differentiation
What is a genericized trademark?
A ‘genericized trademark’ has moved from distinguishing a specific brand to become the generic description for, or synonymous with, a product or service.
How can you protect against trademark degeneration?
- Use the trademark in combination with descriptive concept
- Educate stakeholders on correct trademark usage
- Use trademark as an adjective, neither in plural or possessive forms nor as a verb or noun;
- Differentiate trademark in texts using bold, capitals, underlining, italics or different font, size or colour;
- Follow up the trademark with a generic term for the product;
- Combine trademark with the ® mark.
- Aggressively enforce the owner’s trademark rights
What basic choices do you have when designing the descriptive concept?
- Using an already existing term
- Vanish, a fabric stain remover - Modifying an already existing term (creating a sub-category)
- Tumblr/Twitter, a microblogging platform - Creating a completely new term
- Segway, a self-balancing personal transporter - Avoid using a descriptive term altogether
- iPad, a magical window where nothing comes between you and what you love. And it comes in two sizes
What does “Brand awareness” refer to?
Brand awareness relates to the strength of the brand in memory, as reflected by consumers’ ability to recall or recognize the brand.
It is divided into awareness depth and breadth.
Awareness depth:
Brand recall - being able to generate the brand from memory, when given a relevant cue (e.g product category)
Brand recognition - being able to identify the brand, when given the brand as a cue
Awareness breadth:
The range of purchase and usage situations where the brand comes to mind. (Purchase/consumpt)
Define brand equity.
FINANCIAL BRAND EQUITY:
- How much financial value the brand holds: the net discounted cashflow attributable to the brand, after production, operations, marketing costs
CONSUMER-BASED BRAND EQT:
- The value added by the brand: the differential effect that consumers’ brand knowledge has on their response to the marketing of that brand
- Keller: “The differential effect that consumers’ brand knowledge has on their response to the marketing of that brand”
Aakers brand equity model?
o Brand loyalty
• Reduced marketing costs
• Trade leverage
• Attracting new costumers (domino effect: one likes, tells other)
• Time to respond to competitive threats (loyal costumers are not as quick on switching brands)
o Brand awareness
• Anchor to which other associations can be attached (strong brand → can create other associations connected to the brand. Brand awareness in cars gives brand awareness in boats etc.)
• Familiarity-liking
• Positive attitude towards a brand →
• Signal of substance/commitment (If you have higher brand awareness, it will send out a signal that you are committed?)
• Brand to be considered
• High brand awareness → higher likelihood that consumer will have you in mind when taking a buying decision
o Perceived quality
• Reason to buy
• Differentiate/position
• Price
• High price is intuitively equal to higher quality (which is not necessarily the case)
• Channel member interest
• How often can I find the product, is it available? Must be available to maintain a high value. (Det här är skitsnack enl. mig. Hermesväskor och iPhone – svåra att få tag på = högre värde)
• Extensions
• More versions and extensions → higher value
o Brand associations • Help process /retrieve information • Differentiate / position • Reason to buy • Create positive attitude/feelings • Extensions
o Other proprietary assets
• Competitive advantage
How does brand equity provide value to the firm according to Aaker?
Provides value to the firm by enhancing:
- Efficiency and effectiveness of marketing programs
- Brand loyalty
- Prices/margins
- Brand extensions
- Competitive advantage
How does brand equity provide value to costumers according to Aaker?
Provides value to the customer by enhancing:
- Interpretation / processing of information
- Confidence in the purchase decision
- Use satisfaction
What should you take into consideration when choosing brand elements according to Keller’s model for consumer-based brand eqt?
Offensive role:
MEMORABILITY (easy to recognize and easy to recall)
MEANINGFULNESS (Descriptive meaning; is the customer able to identify the right product category and is the brand element credible in this product category. Hence, the descriptive dimension is a determinant of brand awareness and salience. Persuasive in this context means a determinant of brand image and positioning. It is the specific information about particular key attributes and benefits of the brand. This could even reflect brand personality.)
APPEAL (reflect aesthetical appealing like the brand style and brand themes)
Defensive roles:
TRANSFERABILITY (Brand elements should be transferable in such a way that they can cover more then one product, product line, market segments, geographic boundaries, markets and cultures).
ADAPTABILITY (Brand elements need to be adaptable and flexible in time to remain relevant)
PROTECTABILITY (Considers the legal and unauthorized competitive infringements of the brand.)
- -> Brand associations shall be:
- strong
- favourable
- unique
