Presentation on theme: "Branding and Positioning Chapter 2. What is Branding? Assigning a name, phrase, design, symbols or a combination of these to a product, service, or a."— Presentation transcript:
What is Branding? Assigning a name, phrase, design, symbols or a combination of these to a product, service, or a group of complimentary products
Discussion Points: How important are brand names? How important are brand names for clothes? Why? What additional product categories are brand names important? What product categories are brand names not important?
What image is being conveyed by this Porsche advertisement? What image is being conveyed by the Porsche Web site? www.porsche.ca www.porsche.ca Are the images consistent?
Brand Value – Customer Perspective o Provides quality assurance in purchase decisions o Reduces search time in purchase decisions o Provides psychological reinforcement and social acceptance of purchases
Brand Value – Company Perspective A strong brand can generate many benefits including: o Positive customer feelings to new products and services o Allows a company to charge more (if the brand is recognized and respected) o Customer loyalty which may lead to more purchases o Positive word of mouth endorsements o Higher level of channel power o The ability to attract quality employees o More favourable ratings by financial observers and analysts
Developing Brand Value From introduction to post-purchase behaviour o Five dimensions: o Brand awareness o Associations customers make with brands o Attitudes customers have about the brand performance o Brand attachment by the customer o Brand activity – how do customers use the brand?
Discussion Exercise o List the names of five brands you have a negative impression of? o Why is the brand(s) conceived negatively?
Successful Brand Development o Commitment to the brand o Market penetration o Research and understanding the brand’s target market o Building effective expansion programs and fending off competitors.
Video – Nike Questions for Discussion: o What do you think of Nike’s Brand Management? o What can other athletic apparel company’s learn from Nike?
Building Brand Equity Brand Equity – The value that stakeholders assign to a brand over and above the value of an equal but unbranded product o Research current brand image o Decide what makes the brand unique o Communicate brand’s uniqueness o Spend on advertising/communication o Deliver on uniqueness
Companies often create product icons to develop an identity for their products, and increase brand equity. Why is the Mr. Clean icon an effective representative for its product?
Benefits of Brand Equity o Higher prices o Higher gross margins o Reduces customer switching o Greater demand for the product o Prevents erosion of market share
Types of Brands o Family brands o Multiple products under one brand o Transfer associations o Brand extension o New good or service, usually related to the existing brand o Flanker brands o New brand within current category o www.marriott.ca www.marriott.ca o Co-branding o Private Label Brands
Flanker Brands Sold by Procter & Gamble Cosmetics CoverGirl Max Factor Dish washing Hair care Cascade Dawn Ivory Joy Aussie Head & Shoulders Herbal Essences Infusion 23 Pantene
Ingredient Branding Cooperative Branding Complementary Branding Co- Branding Forms of Co-Branding
Changes in Private Brands 1. Quality improvement. 2. Lower prices. 3. Higher store loyalty. 4. Lower loyalty for manufacturer brands. 5. Increase in advertising of private brands. 6. Increase in quality of private brand in- store displays.
o Focus on core brands o Increase advertising o Introduce new products o Focus on in-store selling, packaging o Use alternative methods of marketing Strategies Used to Combat Private Labels (National Brands)
Successful Brand Extensions o Lipton tea – Lipton soup mixes o Kodak film – Kodak cameras and batteries o Ivory soap – Ivory shampoo, dishwashing liquid o Barbie dolls – Barbie games, furniture, clothes o Honda bikes – Honda cars, lawnmowers, generators
Unsuccessful Brand Extensions o Dunkin’ Donuts – Dunkin’ Donuts cereal o Harley Davidson Bikes – Harley Davidson cigarettes o Levis Jeans – Levis business wear o Mr. Coffee coffee makers – Mr. Coffee coffee
Factors in Brand Management o Maintaining a Brands Image o Consistency is key o Rejuvenating a Brand o May be necessary if firm has encountered negative publicity o Repositioning a Brand o May be necessary when a brands target market has shrunk or firm can no longer meet customer expectations
Positioning o The process of creating a perception in the consumer’s mind regarding the nature of the company and its products relative to competitors o A product’s position is based on two elements: o The product’s standing relative to the competition o How the product is perceived by consumers o Positioning is an important criteria in brand development
Positioning Strategies o Attributes o Competitors o Use or application o Price-quality relationship o Product user o Product class o Cultural symbol