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Brand building


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Brand building

  1. 1. Brand Building
  2. 2. What is Brand building? Involves all the activities that are necessary to nurture a brand into a healthy cash flow stream for the company after launch
  3. 3. Advertising does a lot to help build brands <ul><li>Every ad contributes to make the brand what it is in the minds of the consumer – David Ogilvy </li></ul><ul><li>A company’s brand is the primary source of its competitive advantage and is a very valuable strategic asset – David Aaker </li></ul>
  4. 4. Brand Equity <ul><li>When a commodity becomes a brand, it is said to have ‘equity’. It starts with a name and can go up or down depending on the marketing activity that is done by the marketer. A name becomes a brand when consumers associate it with a set of tangible and intangible benefits that they obtain from the product or service. </li></ul>
  5. 5. How to measure equity? <ul><li>The premium a brand can command in the market </li></ul><ul><li>The difference between the intrinsic and perceived value of the product </li></ul>
  6. 6. Building Brand Equity <ul><li>Distinguish product from others in the market – Value proposition </li></ul><ul><li>Align what it says about the brand in advertising with what it actually delivers – Creating the brand </li></ul>
  7. 7. Power Brands <ul><li>Generates enormous profits </li></ul><ul><li>Expands future strategic opportunities </li></ul>
  8. 8. What do power brands have that others don’t? <ul><li>A distinctive product </li></ul><ul><li>Delivering brand promise </li></ul><ul><li>Personality and presence </li></ul>
  9. 9. Personality <ul><li>Emotional bond with the customer </li></ul><ul><li>Generates relationships measurably stronger than ordinary brands </li></ul>
  10. 10. Presence <ul><li>Seem to be present everywhere, enforcing distinctiveness </li></ul><ul><li>National/international scale </li></ul><ul><li>Successful brand extensions </li></ul><ul><li>Multiple concept and channels </li></ul>
  11. 11. Brand managers of market-savvy companies need <ul><li>Superior insight into customer needs </li></ul><ul><li>Ability to devise product/services that powerfully meet those needs </li></ul><ul><li>Agility to redefine its offering as those needs change </li></ul><ul><li>Creativity to produce exciting and compelling advertising </li></ul>
  12. 12. Tangibles of brand equity <ul><li>Shape </li></ul><ul><li>Colour </li></ul><ul><li>Size </li></ul><ul><li>Models </li></ul><ul><li>Price </li></ul><ul><li>Features </li></ul><ul><li>Benefits </li></ul><ul><li>Grades </li></ul>
  13. 13. Intangibles of brand equity <ul><li>Company name </li></ul><ul><li>Brand name </li></ul><ul><li>Slogan and its underlying associations </li></ul><ul><li>Perceived quality </li></ul><ul><li>Brand awareness </li></ul><ul><li>Customer base </li></ul><ul><li>Trademarks and patents </li></ul><ul><li>Channel relationships </li></ul><ul><li>Customer loyalty </li></ul><ul><li>Customer confidence </li></ul><ul><li>Competitive advantage </li></ul>
  14. 14. Value Proposition <ul><li>Broad positioning </li></ul><ul><li>Specific positioning </li></ul><ul><li>Value positioning </li></ul>
  15. 15. Creating the brand <ul><li>Choosing brand name </li></ul><ul><li>Developing rich associations and promises </li></ul><ul><li>Manage customer brand contacts to meet and exceed customer expectations </li></ul>
  16. 16. Porter’s strategic choices <ul><li>Product differentiator </li></ul><ul><li>Low cost leader </li></ul><ul><li>‘ Nicher’ </li></ul>
  17. 17. Positioning guards <ul><li>Should not be overpositioned </li></ul><ul><li>Should not be underpositioned </li></ul><ul><li>Should not be ambiguous </li></ul><ul><li>Should not promise irrelevant benefits </li></ul><ul><li>Promise should be credible </li></ul>
  18. 18. Choosing a brand name <ul><li>What does it mean? </li></ul><ul><li>What performance/ expectations/ associations does it evoke? </li></ul><ul><li>What degree of preference does it create? </li></ul>
  19. 19. Brand names should denote <ul><li>Product benefits </li></ul><ul><li>Product quality </li></ul><ul><li>Be easy to pronounce/remember/recognise </li></ul><ul><li>Be distinctive </li></ul><ul><li>Not have poor meanings in other countries or languages </li></ul>
  20. 20. Brand Associations <ul><li>‘ owned’ word </li></ul><ul><li>Slogans </li></ul><ul><li>Colours </li></ul><ul><li>Symbols and logos </li></ul>
  21. 21. Brand Ambassadors <ul><li>These are used to create the Brand personality, just like a human being. Therefore in some way the values and personality of the ambassador rubs off into the brand. Therfore the brand and choice of the ambassador must fit. </li></ul>
  22. 22. Brand Status Esteem Familiarity Troubled brand. Product upgradation required Product should be phased out Cash cow. Need to sustain brand building activities Step up advertising
  23. 23. Brand Vitality <ul><li>Differentiation in consumer’s mind </li></ul><ul><li>Differentiation relevant to consumer’s need </li></ul>
  24. 24. Brand Pitfalls <ul><li>Brand experience must match brand image </li></ul><ul><li>Calls for managing every brand contact </li></ul>