1. HED 460 Everyone brands Manufacturers Retailers Private Store Wholesalers Services Malls

2. HED 460 What is a brand? A name A symbol A product A store A promise the consumer can trust A key asset

3. HED 460 What is a brand? (Tangibles) AMA – American Marketing Association “A name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other seller’s.”

4. HED 460 What is a brand? Cow fits definition – is it a brand? What if Mercedes becomes Dolores – will it no longer be a brand? If Pentium becomes Intellect (rejected candidate name), will it sell less?

5. HED 460 What is a brand? Cow is not a brand, but a product class Guernsey or Holstein might represent product forms Symbol burned into cow’s hide to identify the cows of a particular owner is a brand

6. HED 460 Why Consumers use Brands

7. HED 460 Shop fewer stores 1980 – 3.5 stores 1990 – 2.75 stores 1995 – 2.2 stores 2000 – 1.2 stores

8. HED 460 Brand as asset – (Intangibles) Brands have equity perceived to have value beyond what the products/services/stores they are attached to produce in sales and profits Brands can be more lasting than assets of factories, warehouses, stores Brands may appreciate rather than depreciate Brands are portable

9. HED 460 Measuring brand equity Value stockholders place on a brand Market share, customer loyalty, market penetration, lifetime value of a customer Consistently deliver on their promise The Gap Home Depot Amazon.com

10. HED 460 What threatens brand equity? Low or inconsistent quality Michelob (Where you’re going, it’s Michelob) Extending into inappropriate channels Lack of innovation Not differentiating Not meeting consumer expectations “every point of customer contact ”

11. HED 460 Planning Brand Strategy Know your core business Develop 3 interrelated strategies Positioning Personality Affiliation Communicate brand strategies

12. HED 460 Company performance

13. HED 460 1. Positioning strategy The niche a brand occupies in consumers’ minds Maintain parity with competitors AND differentiate Must define 3 things target audience competitive frame of reference meaningful differentiation point

14. HED 460 Motel 6 positioning For frugal people, Motel 6 is a comfortable night’s stay at the lowest price of any national chain. Target audience Competitive frame of reference Meaningful Differentiation point

15. HED 460 Develop positioning strategy For (target audience), your brand is a (competitive frame of reference) that provides (meaningful differentiation point). Is it a brand? Not just a store name. Group members’ names – IC #5

16. HED 460 Positioning examples Product superiority, maintain service Mercedes-Benz, Sony Excel in service, hold own in quality Nordstrom, Saturn Superior use of user imagery, adequate or strong performance Calvin Klein, Harley Davidson

17. HED 460 2. Create Brand Personality Strategy Set of human traits brand portrays in its relationship with its customers Character or personality that predicts what to expect “that sounds like a __________ ad” Motel 6 personality strategy Deliver brand personality at every point of contact

18. HED 460 3. Manage Brand Affiliation How you think others will perceive you if they know you use a particular brand? Prevent negative or limiting perception Motel 6 example Bic example ballpoint pens - 1950’s disposable cigarette lighters - 1970’s disposable razors - 1980’s Perfume - 1989 - “Paris in your pocket”

19. HED 460 For Global Against Homogenous tastes Economies of scale Small markets get their share Brand effectiveness can be improved Local market tastes/pref. ignored Choices and effectiveness diluted for global appeal Local regulations and restrictions

20. HED 460 Cyberbranding Strong brand can provide powerful advantages, esp. initially Branding is more complex creating an experience that potential buyers interact with Reach and interactivity are increased Victoria’s Secret example

21. HED 460 Brand Extension New products Williams-Sonoma’s Pottery Barn catalog launched Pottery Barn Kids L.L. Bean launched L.L. Home New customers Abercrombie & Fitch launched abercrombie New formats Avon to Avon.com, mall-based kiosks, Avon spa Delia’s direct marketer, stores, Internet

22. HED 460 Brand Extension New Channels Starbucks, license with Kraft for supermarkets New Businesses Tesco now offers natural gas to customers Nordstrom is into financial services

23. HED 460 Rational Branding Something of value is given in exchange for information Build your own…...

24. HED 460 Rational Branding