1. 1 Branding for Small Business Sanchai Thiewprasertkul September 2007

2. 2 Know What is Branding! Branding is the process of creating a clear, distinctive and durable perceptions in the minds of consumers. Branding is the process of creating a clear, distinctive and durable perceptions in the minds of consumers. Most people associate branding with big company Most people associate branding with big company Small company can also use branding technique with great rewards Small company can also use branding technique with great rewards Technique of branding include association of a company with: Technique of branding include association of a company with: Logos Logos Distinctive colors Distinctive colors Slogan, musical jingle Slogan, musical jingle Unusual qualities and product uniqueness Unusual qualities and product uniqueness Packaging Packaging Mascots Mascots Memorable name Memorable name Behavioral incidences and hallmarks Behavioral incidences and hallmarks Brand strategy must be a vibrant interaction between you and your target market Brand strategy must be a vibrant interaction between you and your target market

3. 3 Why Branding Pays Off? Time, money and efforts spent on branding comes back when the process is done intelligently because of things that it create: Time, money and efforts spent on branding comes back when the process is done intelligently because of things that it create: Memorability: It is easier to remember the branded company than the non branded one. Memorability: It is easier to remember the branded company than the non branded one. Loyalty: With positive experience with a memorable brand, they are more likely to repeat buying, and less likely to go for competing brands Loyalty: With positive experience with a memorable brand, they are more likely to repeat buying, and less likely to go for competing brands Familiarity: Familiarity create liking and this makes even non-customers to recommend a brand they know Familiarity: Familiarity create liking and this makes even non-customers to recommend a brand they know Premium Image and Premium Price: Brand can take you out of becoming commodity and price competition. Customers are willing to pay more for a well known brand Premium Image and Premium Price: Brand can take you out of becoming commodity and price competition. Customers are willing to pay more for a well known brand

4. 4 Why Branding Pays Off? Extensionability: Ability to expand a well-known brand to cover a new category, product, service, or locations Extensionability: Ability to expand a well-known brand to cover a new category, product, service, or locations Greater company equity: A powerful brand means that you can get more money from your company when you decide to sell it Greater company equity: A powerful brand means that you can get more money from your company when you decide to sell it Lower marketing expense: Once a brand has been created, you get more payback for every Bath you use afterwards. Lower marketing expense: Once a brand has been created, you get more payback for every Bath you use afterwards. Lower risk and greater confident for consumers: People tends to buy from a well-known company over a no-name one Lower risk and greater confident for consumers: People tends to buy from a well-known company over a no-name one

5. 5 Building a Brand: The Decisive Edge for Your Small Business Building a brand is one of the most important things a small business will do: Building a brand is one of the most important things a small business will do: Marketing doesn’t happen without a brand and sales Marketing doesn’t happen without a brand and sales We have already have a brand whether you know it or not! We have already have a brand whether you know it or not! A brand started when we open doors and sold our first product or service A brand started when we open doors and sold our first product or service People who contact your company has experienced your brand and formed an opinion about your business People who contact your company has experienced your brand and formed an opinion about your business Brand reputation is being formed and your firm’s future is being determined! Brand reputation is being formed and your firm’s future is being determined!

6. 6 Building a Brand: The Decisive Edge for Your Small Business The important question is: What do they think of you, and how it affect your sales? The important question is: What do they think of you, and how it affect your sales? If you cannot answer this question, you have no control of your brand! If you cannot answer this question, you have no control of your brand! Without control, your business is at the mercy of your competitors and other unseen forces in the market Without control, your business is at the mercy of your competitors and other unseen forces in the market Your company will lose because you choose not to play the branding game! Your company will lose because you choose not to play the branding game! Profitable companies understand how to build a winning brand! Profitable companies understand how to build a winning brand!

7. 7 Building a Brand That Wins Sales! It takes hard work, planning, execution and control to build a brand It takes hard work, planning, execution and control to build a brand Branding does have direct influence on building sales! Branding does have direct influence on building sales! Branding is not merely creating image Branding is not merely creating image Branding create reputation Branding create reputation Reputation is often the first interaction of buyers and our company Reputation is often the first interaction of buyers and our company Branding create TRUST, and trust create sales! Branding create TRUST, and trust create sales!

8. 8 Building a Brand That Wins Sales! To build brand, we must rely on these five reputation building benefits: To build brand, we must rely on these five reputation building benefits: A quality of product or services A quality of product or services Product and services that are available when customers need them Product and services that are available when customers need them Honesty and make it easy for customers to do business with our company Honesty and make it easy for customers to do business with our company Friendly and helpful people in our business Friendly and helpful people in our business Product or services that provides a satisfying result to customers’ needs Product or services that provides a satisfying result to customers’ needs These five benefits are minimum requirement to make sales and create a loyal, satisfies customers. They are foundation for your Brand Building These five benefits are minimum requirement to make sales and create a loyal, satisfies customers. They are foundation for your Brand Building

9. 9 It Takes Time to Build Brand! Look around you now! There must be at least a dozen of branding elements at work. Mostly it’s LOGO! Look around you now! There must be at least a dozen of branding elements at work. Mostly it’s LOGO! The Branding Game is constantly being played around you, all the time The Branding Game is constantly being played around you, all the time The goal of brand is to own a share of your mine, so when you need solution, you will buy from the brand you trusted The goal of brand is to own a share of your mine, so when you need solution, you will buy from the brand you trusted For many, especially advertising agencies, they think that brand building is merely advertising For many, especially advertising agencies, they think that brand building is merely advertising That perception is partially right That perception is partially right The best thing for brand building is REPUTATION The best thing for brand building is REPUTATION Branding do not require massive budget available only to large company. You can also do it! Branding do not require massive budget available only to large company. You can also do it!

10. 10 Creating Your Branding Strategies: What Is Your Branding Strategy? Branding strategy is the most overlooked part of a small business. Without strategy, you are at the mercy of your competitors!!! Branding strategy is the most overlooked part of a small business. Without strategy, you are at the mercy of your competitors!!!

11. 11 Rules to Turn Small Business To a Big Brand Rule 1: Consumer Perception is the key to success Rule 1: Consumer Perception is the key to success Whether true or untrue, what customers perceived about us is the truth, regardless of the facts Whether true or untrue, what customers perceived about us is the truth, regardless of the facts Positioning is the key to success Positioning is the key to success Rule 2: First to the market player has more chance to win Rule 2: First to the market player has more chance to win First mover has more chance to position your brand into the mind of consumers first First mover has more chance to position your brand into the mind of consumers first First mover has the best chance to select the best positioning to win First mover has the best chance to select the best positioning to win

12. 12 Rules to Turn Small Business To a Big Brand Rule 3: If you cannot be the first mover, the try to move the battlefield! Rule 3: If you cannot be the first mover, the try to move the battlefield! Don’t just become a copycat Don’t just become a copycat Try to create a new and unique proposition that we can be the first, so that you avoid becoming an imitator Try to create a new and unique proposition that we can be the first, so that you avoid becoming an imitator Rule 4: Focus clearly on your unique selling point Rule 4: Focus clearly on your unique selling point Don’t try to be everything for everyone Don’t try to be everything for everyone Concentrate on one thing in the mind of consumers. Try your best to be a Functional Brand! Concentrate on one thing in the mind of consumers. Try your best to be a Functional Brand! Rule 5: Differentiate or Sell Cheap Rule 5: Differentiate or Sell Cheap If you fail to be different, customers will focus on price! If you fail to be different, customers will focus on price!

13. 13 Rules to Turn Small Business To a Big Brand Rule 6: Use Strategic Public Relations for brand building, and advertising just for maintenance Rule 6: Use Strategic Public Relations for brand building, and advertising just for maintenance Advertising is less effective to introduce a brand Advertising is less effective to introduce a brand It has near zero credibility It has near zero credibility It is too expensive for small companies It is too expensive for small companies There is full of clutter that make advertising ineffective There is full of clutter that make advertising ineffective It is a big boy game! It is a big boy game! Strategic public relations is the key for success for small companies Strategic public relations is the key for success for small companies It is credible It is credible It is affordable It is affordable

14. 14 Rules to Turn Small Business To a Big Brand Rule 7: Find a great name for your brand! Rule 7: Find a great name for your brand! The name of your product is what separate you from your competitors The name of your product is what separate you from your competitors Find a unique and hard hitting name for your brand. Make it: Find a unique and hard hitting name for your brand. Make it: Short Short Unique Unique Memorable Memorable Rule 8: Make sure that you are absolutely consistent Rule 8: Make sure that you are absolutely consistent It takes time to be clear in consumers’ mind It takes time to be clear in consumers’ mind To often change of direction confuse your customers and dilute the power of your brand To often change of direction confuse your customers and dilute the power of your brand

15. 15 Rules to Turn Small Business To a Big Brand Rule 9: Know who are your enemies Rule 9: Know who are your enemies No Tom without Jerry! Competition between brands create excitement among customers and media. It help the industry to grow No Tom without Jerry! Competition between brands create excitement among customers and media. It help the industry to grow You have to know who are your primary competitors and fight with them You have to know who are your primary competitors and fight with them Rule 10: Be ready to introduce your second brand if needed Rule 10: Be ready to introduce your second brand if needed A second brand may be required to enter a new category or segments. A second brand may be required to enter a new category or segments. Use the second brand only when you are a dominant player in the existing segment or category Use the second brand only when you are a dominant player in the existing segment or category

16. 16 The Three Energizers of Branding To develop a brand strategy, these three energizers must be in place: To develop a brand strategy, these three energizers must be in place: Relevance of the offer: our product must contain an intrinsic value that appeals to the needs of the target market Relevance of the offer: our product must contain an intrinsic value that appeals to the needs of the target market Clarity of Brand Message to communicate to the target market: Clarity of Brand Message to communicate to the target market: Clear and focused message is required to influence the perception of our market Clear and focused message is required to influence the perception of our market Be clear and concise with the benefits of our products and services Be clear and concise with the benefits of our products and services Be consistent to create familiarity, knowledge, preference, and finally trust! Be consistent to create familiarity, knowledge, preference, and finally trust!

17. 17 The Three Energizers of Branding The Quality of Your Branding Encounters: Make sure that positive impression is left every time customers have brand encounter. This will resulted in: The Quality of Your Branding Encounters: Make sure that positive impression is left every time customers have brand encounter. This will resulted in: Satisfaction Satisfaction Better word-of-mouth reputation Better word-of-mouth reputation Loyalty Loyalty Higher price and higher sales Higher price and higher sales In branding, perception is reality! In branding, perception is reality!

18. 18 Branding for Small Business is a Process Branding is a sequential process, and not a one-time event Branding is a sequential process, and not a one-time event For small business, the brand manager is the owner or key employee For small business, the brand manager is the owner or key employee Easiest and most convenient method for branding is WOM and Referrals Easiest and most convenient method for branding is WOM and Referrals Branding is Required to Compete! Branding is Required to Compete! Many small business never reach its potential because the company neglects to create a strong brand presence in the market Many small business never reach its potential because the company neglects to create a strong brand presence in the market Entrepreneurs are mostly arrogant, overconfidence, believe that their product is so extraordinary that people will line up to buy! Even to the best product, branding is required! Entrepreneurs are mostly arrogant, overconfidence, believe that their product is so extraordinary that people will line up to buy! Even to the best product, branding is required!

19. 19 Elements of A Brand Pricing: represent value we offer to our customers Pricing: represent value we offer to our customers Distribution: how available our offer is? Distribution: how available our offer is? Quality: this influence satisfaction Quality: this influence satisfaction Presence: how prominent we are in the marketplace, high or low profile? Presence: how prominent we are in the marketplace, high or low profile? Reputation: the market’s opinion to your brand Reputation: the market’s opinion to your brand Image: perceptions of your brand by buyers Image: perceptions of your brand by buyers

20. 20 Elements of A Brand Benefits: the effect our product has on customers Benefits: the effect our product has on customers Positioning: how different we are from our competitors Positioning: how different we are from our competitors Preference: the customers’ propensity to buy our brand Preference: the customers’ propensity to buy our brand Customer Commitment: the ultimate result of our branding strategy, loyalty is built through brand contact and relationships Customer Commitment: the ultimate result of our branding strategy, loyalty is built through brand contact and relationships

21. 21 Elements of A Brand Other Parts of Branding: Some vital components of branding are: Other Parts of Branding: Some vital components of branding are: Company name Company name Logo Logo Slogan and tagline Slogan and tagline Letterhead and forms Letterhead and forms Signage Signage Design of marketing materials Design of marketing materials Website Website Advetising Advetising Staff dresses Staff dresses Your facilities and maintenance Your facilities and maintenance

22. 22 Critical Branding Questions Answer these to start building a brand that wins: Answer these to start building a brand that wins: What are the benefits of using your product and services? What are the benefits of using your product and services? Does your product or service have an advantage over your competitors? If yes, what is it? And how does it benefit the customers? Does your product or service have an advantage over your competitors? If yes, what is it? And how does it benefit the customers? How do your competitors position their brands? How do your competitors position their brands? What is your main competitors’s marketing message? What is your main competitors’s marketing message?

23. 23 Critical Branding Questions Do your competitors deliver on their marketing promises? Do your competitors deliver on their marketing promises? Can that advantage be positioned into your brand identity? Can that advantage be positioned into your brand identity? Is there a marketing niche that would benefit from your brand? Is there a marketing niche that would benefit from your brand? Is your company name and logo descriptive and distinctive? Are there ways that it can be improved? Is your company name and logo descriptive and distinctive? Are there ways that it can be improved? What is your company’s core message? And is your message clear and focused? Do your message connected to your target audiences? What is your company’s core message? And is your message clear and focused? Do your message connected to your target audiences?

24. 24 Critical Branding Questions What promises does your company make during the sales process? What promises does your company make during the sales process? Do you deliver on those promises? Do you deliver on those promises? What process can you use to determine if your customer or clients believe you are delivering oin your promises? What process can you use to determine if your customer or clients believe you are delivering oin your promises? What research have you done to better understand the needs of your target audiences? What research have you done to better understand the needs of your target audiences? Does your brand have equity, personality or reputation? If not, can we do something to make it happen? Does your brand have equity, personality or reputation? If not, can we do something to make it happen?

25. 25 Brand is The Sum of All Parts Branding is created from the integration of multiple components, and all of them are necessary. This includes other thing such as: Branding is created from the integration of multiple components, and all of them are necessary. This includes other thing such as: Touch point management Touch point management Employee education and readiness to serve Employee education and readiness to serve SO ACT NOW!!!!!!! SO ACT NOW!!!!!!!