8 Marketing Advantages of Strong Brands Improved perceptions of product performanceGreater loyaltyLess vulnerable to competitionLess vulnerable to crisesLarger marginsInelastic consumer response to price increasesElastic consumer response to price decreasesGreater trade cooperationIncrease in effectiveness of IMCLicensing opportunitiesBrand extension opportunities
21 Brand Element Choice Criteria MemorablerecallMeaningfulcredibleLikeabilityappealingTransferableother products or locationsAdaptableupdatable is brand elementsProtectiblelegally
22 The cupped hands are an element of Allstate’s brand
23 Slogans Like a good neighbor, State Farm is there Just do it Nothing runs like a DeereHelp is just around the cornerSave 15% or more in 15 minutes or lessWe try harderWe’ll pick you upNextel – DoneZoom ZoomI’m lovin’ itInnovation at workThis Bud’s for youAlways low prices
26 The 10 Most Valuable Brands 2004 Brand Value (Billions)Coca-Cola$67.39Microsoft$61.37IBM$53.79GE$44.11Intel$33.50Disney$27.11McDonald’s$25.00Nokia$24.04Toyota$22.67Marlboro$22.13
27 Brand Reinforcement (consistently convey the meaning of the brand) Managing Brand EquityBrand Reinforcement (consistently convey the meaning of the brand)Brand RevitalizationBrand Crises
28 Devising a Branding Strategy Develop new brand elementsApply existing brand elementsUse a combination ofold and new
29 Brand Naming Individual names Blanket family names (not tied to company reputation)Blanket family names(create brand-name recognition)Separate family names(very different products)Corporate name-individual name combo(sub-branding—Kellogg’s Rice Krispies, Raisin Bran, Corn Flakes)
30 Brand Roles in a Brand Portfolio Flankers(attack competitor brands soflagship brands retaindesired positioning)Cash Cows(milk reservoir ofexisting brand equity)Low-endEntry-level(attract customers)High-endPrestige(adds value & credibilityto entire portfolio)
31 Branding A Service Organization A strong service brand is essentially a promise of future satisfactionBlend (customer’s point of view) of what the organization:states it is,what others say, andhow the organization performs the servicePrincipal components of a service brandPresented Brand—controlled communicationsBrand Awareness—ability to recognize & recall brandExternal Brand—uncontrolled communicationsBrand Meaning—dominant perceptions of brandBrand Equity--differential effect that brand knowledge has on consumer response to the marketing of that brand.
32 A Service-Branding Model Presented BrandBrand AwarenessExternal BrandCommunicationsBrand EquityCustomer Experiences withCompanyBrand Meaning
33 Cultivating Brand Equity Internalize the BrandDare to be DifferentBrand EquityDetermine your ownFameEmotional Connection
34 Dare to be DifferentThe strongest brands reveal a conscious effort to be differentBranding strategy goal is to reinforce a demonstrably different service experience with a demonstrably different brand presentationStarbucks could squeeze more tables and chairs into their stores, but doing so would undermine what they are really selling: a respite and a social experienceBecause of its two-by-two configuration of leather seats (instead of the more common three-by-three seating), Midwest Express Airline’s all coach service seems like first class.Enterprise Rent-A-Car customer-contact employees dress for differentiation. Men wear suits and women dresses or shirts and hose.
35 Determine Your Own Fame Service companies strengthen brand equity by focusing on underserved marketing needs.Service companies with strong brand equity provide a service that customers truly value; perform it better than competitors; and effectively tell their story through communications that create awareness, stimulate trial, and reinforce customers’ experiencesCharles Schwab Corporation gave investors who knew what stocks they wanted to buy or sell the opportunity to do so without paying full commissions for advice they did not use.In Zagat’s (1997) survey of 60 of the world’s largest airlines on comfort, service, timeliness, and food, Midwest Express ranked 1st in the United States and was the only U.S. airline to place in the world’s Top 10
36 Make An Emotional Connection Great Brands reach beyond the purely rational and purely economic level to spark feelings of closeness, affection, and trust.Consumers live in an emotional world; their emotions influence their decisions.Great Brands transcend specific product features and benefits and penetrate people’s emotions.Charlotte Beers (1998), chairman of J. Walter Thompson, stated “The truth is, what makes a brand powerful is the emotional involvement of customers”The Globetrotters is a magical brand—a brand that evokes images of fun and laugher, respect and decency, hard work, and good values.Midwest Express could portray chocolate chip cookies in its advertising, but far more powerful is actually baking them onboard for passengers and serving them with a warm smile
37 Internalize the BrandInternalizing the brand involves explaining and selling the brand to employees. Most of all, internalizing the brand involves involving employees in the care and nurturing of the brandEnterprise Rent-A-Car“We’ll pick you up”Midwest Express noted that its employees are the most important audience for its marketing efforts.