SU 1: Introduction, Brand Image And Positioning

Question 1

What is a brand

Answer 1

A name, design, symbol or any other feature that identifies one seller’s good or service as distinct from those of other sellers. (what brands do you use as verbs)

Question 2

What is the history of branding?

Answer 2

• indicates ownership
• increases competition
• it is less functional and more symbolic and emotional to customers
• used to motivate non-rational consumption

Question 3

What is a product

Answer 3

Anything that can be offered to a market to satisfy a need, including physical goods, services, etc. A product can be something such as toothpaste, while a brand would be Colgate toothpaste

Question 4

What are the key differentiators between products and brands

Answer 4

• focus
• competitive advantage
• tangibility
• image

Question 5

Explain focus as a key differentiator between products and brands

Answer 5

Products perform a function while brands offer emotion. This means that products satisfy a need while a brand satisfies a want.

(for example, you may need toothpaste but you want Colgate’s toothpaste because you trust the Colgate brand).

Question 6

Explain competitive advantage as a key differentiator between products and brands

Answer 6

A product is generally easy for the competition to copy, however brands are more difficult to copy because of the emotional connection to the brand and a customers perception on loyalty.

(for example, smart phones are generally similar with regard to the features that they offer, but customers loyalty may choose to purchase Samsung or Apple due to their brand loyalty)

Question 7

Explain tangibility as a key differentiator between products and brands

Answer 7

Products are usually considered tangible by nature, meaning that you can touch them before choosing to make a purchase. But brands are more intangible - you cannot touch a brands attributes or characteristics.

(for example, when I choose to purchase a handbag, I can assess it in terms of its tangible features. However when I shop for a particular brand such as Louis Vuitton, it has some brand characteristics such as - communicating my status among my social group which is not tangible)

Question 8

Explain image as a key differentiator between products and brands

Answer 8

The product is what the company sells, the brand is used to create image

(for example, Starbucks sells coffee but the Starbucks brand creates the image of a trendy person).

Question 9

What’s the importance of building brand image

Answer 9

• makes an impression: the way in which visual elements are communicated all make an impression (think of being at a dentist’s unsanitary waiting room, that makes an impression of the dentist)
• creates recognition: a brand image is a combination of the visible elements as well as the brands association (Apple is recognised by its logo but it is also recognised as high-quality, reliable and innovative)
• builds credibility and in turn equity: the brand’s image held in the mind of consumers build the brand’s credibility and has the potential to enhance brand loyalty (think about the positive image of Woolworths)

Question 10

Name and explain the different brand elements

Answer 10

• physique: this element focuses on the external elements that are physically visible to the target audience such as, logo, colour, uniform worn by staff, and also includes the shape of the product and packaging.
• personality: also referred to as the brand’s character, are the traits of the brand in the minds of the customers.
• culture: built on the set of values and principles of the brand and is often used to assist in differentiating one brand from another (for example, Ocean Basket has presented itself as a restaurant that cares for the ocean)
• relationship: brands want to form relationships with their customers, once these relationships are formed it becomes very difficult for customers to switch to another another brand. This relationship creates a favourable brand identity and image to its customer.
• reflection: a customers image is typically influenced by the brands that they purchase and use. For example, when thinking of a certain brand, you will often think of the types of people who would use that brand. Therefore brands will ensure that their products or services reflect the attributes or beliefs of their intended target audience.
• self image: this refers to how consumers perceive themselves when they are using the brand.

The difference between reflection and self image is that reflection refers to how the brand reflect its image to others, while self image refers to the consumers internal feelings

Question 11

Define brand positioning

Answer 11

Refers to the place which the brand offering and image hold in the consumers mind

Question 12

What elements should a brand consider when positioning (positioning considerations)

Answer 12

• target market
• establish category membership
• establish points-of-parity and points-of-difference

Question 13

Explain target market as a positioning consideration

Answer 13

A brand should identify and select its target market, this happens through the segmentation process. By doing that the brand will understand the values that are important to its target market.

(if it’s target market is not clearly defined it will affect how the brand communicates)

Question 14

Explain establishing category membership as a positioning consideration

Answer 14

This means that a brand needs to determine who it competes with and define its competitive frame (for example, Revlon in the cosmetics category)

Question 15

What three approaches can a brand use when it comes to conveying its category

Answer 15

• announcing category benefits: communicating the benefits that the brand delivers within the category
• comparing to exemplars: when a brand uses a well-known brand within a category to state the brand category membership (to do this the brand might promote certain benefits or attributes that are common to the brands already within the category)
• depending on product descriptors: when a brand uses a product descriptor followed by the brand name. This will allow the consumer to identify the category to which the brand belongs to.

Question 16

Explain establish points-of-parity and points-of-difference as a positioning consideration

Answer 16

1. Points-of-parity makes it easier for the consumer to evaluate what the brand has in common with its competitors. These associations can be classified into two forms: category points-of-parity and competitive points-of-parity.

Competitive points-of-parity is when a competitor will stress how they are different to other brands

2. Points-of-differences makes it easier for consumers to evaluate the elements that differentiate the brand from its competitors. When selecting the points-of-difference the brand is to make sure that the difference is relevant, distinctive and believable, thereby ensuring its desirability.

Question 17

What are the steps to positioning?

Answer 17

step 1 - identify and analyze competitive brands (in order to position effectively it is important for a brand to understand its competitors, it is important that the definition of a competitor is not too restrictive)

step 2 - identify the key attribute (that would be attributes that attract customers, for a cell phone it would be camera quality, screen size, battery life and price)

step 3 - gather information about the competitors key attributes ( gather information about how consumers perceive the competitors attributes, this can be done through focus groups - asking questions about their competitors such as ‘which words do you associate with x brand’)

step 4 - evaluate the current position of brands in a visual manner (this can be done through perceptual maps or value curves, the brand will benefit from evaluating the current position of its competitors)

step 5 - determine the customers preferred combination

step 6 - determine fit (when positioning your brand you need to keep consumers in mind, for example, people that purchase Ferrari and Hyundai might have different needs and therefore the brands positioning would differ)

step 7 - create the positioning statement (a short declaration communicating the brands unique value to its customers - should not focus on the features or attributes of the product but rather focus on the benefits that the consumer will obtain)