Instructor: Thomas Murphy P. 978_760_1388/ BRANDING STRATEGY Session 2

Session 2 Topic Flow Concept of Brand Equity Brand Building Brand Positioning Brand Value Chain Chapter 2 Chapter 3

Concept of Brand Equity

Defining Brand Equity David Aakers Prophet.com AwarenessVisible Familiar LikeableAssociationUnique Relevant AnchorPerceivedQualityAddedValue Service Price & PerformanceLoyalty

Defining Brand Equity David Aakers Prophet.com “ I defined brand equity as a set of brand assets and liabilities linked to a brand name and symbol, which add to or subtract from the value provided by a product or service. Connecting “brand” to the concepts of “equity” and “assets” radically changed the marketing function, enabling it to expand beyond strategic tactics and get a seat at the executive table. “ what-is-brand-equity-and-why-is-it-valuable

Marketing Empties The Well

Brand Equity Refills The Well

Concept of Brand Building

Customer Equity Combined Lifetime Value of All Customers Purchase Migration Referral Lifetime Loyalty

Relationship What About You and Me? Response What About You? Meaning What are You? Identity Who are You ? Loyalty Resonance Judge Quality - Quality - Credibility - Credibility - Consider - Consider - Superior Feeling - Warmth - Fun -Approval Performance -Features - Style -Functional - Needs Imagery -Intangible - Association - Social Needs Salience / Awareness Recognition Recall Recognition Recall Excitement Security Respect Customer Brand Equity Pyramid 8of BRANDING STRATEGY Instructor: Thomas Murphy P. 978_760_1388/ 10

Brand Building Chain Identity MeaningResponseRelation

Instructor: Thomas Murphy P. 978_760_1388/ BRANDING STRATEGY

Brand Building Chain Identity MeaningResponseRelation

Brand Identity Brand Name Symbol Logo CharacterPackage Slogan

CHARACTERISTICS OF A STRONG BRAND IDENTITY

Examples of Strong Brand Identity

Brand Awareness Challenges Service Brands Intangible Difficult to Attach any frame of reference around a symbol or character Perishable Recall becomes difficult when you cannot create repetitive lasting association

Instructor: Thomas Murphy P. 978_760_1388/ BRANDING STRATEGY

Brand Building Chain Identity Meaning ResponseRelationship

Brands create emotional involvement with your customers: What is your mark of specification? What is your mark of assurance? What are the moments of choice? What is your mark of association? Tip – What is your companies story and how can you “enhance” that and create a new story?

CHARACTERISTICS OF STRONG BRAND MEANING

Examples of Strong Brand Meaning

Brand Performance

Brand Imagery VisualCuesContextHistory TypicalUsesPersonal Relevanc e Status & Value

Brand Meaning Challenges Service Brands Intangible Difficult to suggest or demonstrate performance Inconsistent Each service delivery can be slightly different in delivery and quality

Brand Image 5of BRANDING STRATEGY Instructor: Thomas Murphy P. 978_760_1388/ 12 Creative Graphics FunUser Friendly EducationalInnovative  Brand Image is the set of mental associations of a particular brand for individual or groups of consumer  It is similar to the immediate association(s) made when meeting someone for the first time – without the benefit of further knowledge. AKA -- Strong / Frail -- Tall / Short -- Outgoing / Shy  Mental Associations can encompass various categories of characteristics, not necessarily all related to price or performance -- Fun -- Easy -- Friendly -- Bland -- Convenient

Brand Promises Build Meaning

Instructor: Thomas Murphy P. 978_760_1388/ BRANDING STRATEGY

Brand Building Chain IdentityMeaningResponseRelation

CHARACTERISTICS OF STRONG BRAND RESPONSE

Examples of Strong Brand Response

Brand Mantras Link Associations With Judgments Short (3-5 word) Phrase Capturing The Intended Brand Position 6of BRANDING STRATEGY Instructor: Thomas Murphy P. 978_760_1388/ 12 Consists of 3 Parts Function: Word Describing Benefits or Experiences Provided by Product Specific: Resort Abstract: Getaway Modifier: Word(s) that identify the type/sub category of benefit “Couples” Resort “Caribbean” Gateway Emotional: Describes how the brand will provide experience and benefit “Romanic” Couples Resort “Dangerous” Caribbean Getaway

Brand Mantra 7of BRANDING STRATEGY Instructor: Thomas Murphy P. 978_760_1388/ 12 Notes:  Importance of Brand Mantra is that it “Shrinkwraps” the desired position of a brand in a memorable phrase that target customer can remember and easily relate to.  The “Mantra” can become the basic building block of key brand elements ( Slogans, choice of celebrity endorser or brand character, and packaging)  Mantras capture and communicate the most important and unique point(s) of difference  Mantras can also strategically direct the focus of brand extensions to insure there is cohesion in the mission of all brand products  Mantras also provide internal organizational inspiration and guidance  Nike’s brand expansions to Europe and outdoor clothing had to be adjusted to fit their overall mantra: “Authentic Athletic Performance”  Disney’s Mantra (“Fun Family Entertainment”) came out of a special brand audit on licensing of Disney Character brands to various products + services. To insure a stong strategy – all ventures must now support Mantra.

Brand Judgments

Brand Response Challenges Service Brands People Customers and Service Delivery people are integrated in the service experience Process The process of service delivery impacts the service experience and marketing response

Brand Feelings Emotional Responses WarmthAffectionFunPlayfulExciting Sexy, Cool Secure Reliable, Comfort SocialAccepted Self Respect Responsible

Brand Feelings Class Brainstorm List Brands That Fit Under a Category WarmthAffectionFunPlayfulExcitingSexy SecureReliableSocialAccepted Self Respect

Starwood “W” Hotel Chain An Image Built Around Cool & Fun page 91 Text Launched in 2009 as a Boutique Hotel chain Brand image was cool place for hipsters Place for local residents to have a fun night out in a unique cool location Luxury, unique, warm designs “Holistic Experience” “Cutting Edge Design” “Contemporary Dining Concept” “Glamorous Nightlife” “Signature Spas” “An innovative luxury lifestyle brand with 26 properties in the most vibrant destinations around the world. “Inspiring, iconic, innovative and influential….W Hotels provides the ultimate in insider access to a world of WOW.” “W Hotels flirty insider escape offers guests unique experiences around the warmth of cool. Clearly W Hotels are as much about the emotions and experiences they create as they are about getting a comfortable night’s rest.”

Instructor: Thomas Murphy P. 978_760_1388/ BRANDING STRATEGY

Create a sense of attachment and trust with your Brand that will LAST beyond purchase: What makes your product stand out that will create LOYAL customers? What rewards or benefits do you offer? What community exists for these customers? How can customers communicate directly with the Brand?

Brand Building Chain IdentityMeaningResponseRelation

Customer Relationship With a Brand Brand Resonance Customer Relationship With a Brand

CHARACTERISTICS OF BRAND RESONANCE

Examples of Strong Brand Relationships

Building Strong Customer Relationships Exceed Expectations Added Value Problem Resolution Rewards Reliability Performance Guarantees Services Free delivery Customer Service Return Status Upgrades

2-7 Brand Positioning Frame of Reference of BRANDING STRATEGY Instructor: Thomas Murphy P. 978_760_1388/ 12 8 Target Market Nature of Competition P.O.PP.O.D Geo/Cultural Psychographic Behavioral Demographic Price Performance Status Service Secondary Direct Emerging Category Based Competitor Based Correlations Convenience Notes:  Category membership is a key for effective positioning. It defines where the product fits in terms of use, benefits and target audience.  Communication of a brand position can be imported by benefit descriptor strategies: -- Associating the brand with and exclusive set of existing competitors (BMW, Mercedes, Lexus) -- Choosing word that are currently acceptable (allergy free) but not generic (Natural) and avoiding negative (Fried)

CHARACTERISTICS OF STRONG BRAND POSITION