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Ch1. Brand: Def of AMA: A brand is a name, term, sign, symbol or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition. Def by Alina Wheeler: A brand is the promise, the big idea and the expectations that reside in each customers mind about a product, service or company. Brand elements:Different components that identifies and differentiates a brand. Name, logo, symbol, package design.can be based on people, place, things and abstract images. Product: It’s anything we can offer to a market for attention, acquisition, use or consumption that might satisfy a need or want. 5 levels of meaning for a product: 1.Core benefit level: thefundamental need or want that consumers satisfy by consuming the product or service. 2.Generic product level: basic version of the product containing only those attributes or characteristics absolutely necessary for its functioning but with no distinguishing features. 3 Expected product level: set of attributes or characteristics that buyers normally expect and agree to when they purchase a product. 4.Augmented product level: includes additional product attributes, benefits or related services that distinguish the product from competitors. 5Potential product level: all the augmentations and transformations that a product might ultimately undergo in the future Brand equity: the tool to interpret the potential effects of various brand strategies. (to actually try to measure the value of brands). Ch2. Strategic brand management process:.It involves the design and implementation of marketing programs and activities to build, measure and manage brand equity. 1.Identifying and developing brand plans: What the brand is to represent and how it should be positioned with respect to competitors. Brand positioning model: describes how to guide integrated marketing to maximize competitive advantages. Brand resonance model: describes how to create intense, activity loyalty relationships with customers. Brand value chain: is a means to trace the value creation process for brands, to better understand the financial impact of brand marketing expenditure and investments. 2Designing and implementing brand marketing programs: positioning the brand in the minds of customers and achieving as much brand resonance as possible. It depends on 3 factors :1.Initial choices of the brand elements making up the brands and how they are mixed and matched. 2The marketing activities and supporting marketing programs and the way marketing is integrated into them.3.Other associations indirectly transferred to or leveraged by the brand as a result of linking it to some other entity (such as the company, country of origin, channel of distribution or another brand.) 3Measuring and interpreting brand performance: Brand audit: examination of a brand to assess its health, uncover its sources of equity and suggest ways to improve and leverage that equity. Brand tracking: collect information from consumers on a routine basis over time, on a number of key dimensions marketers can identify in the brand auditor or other means. Brand equity management system: is a set of organizational processes designed to improve the understanding and use of the brand equity concept within a firm. 4.Growing and sustaining brand equity: Defining brand architecture: provides general guidelines about its branding strategy and which brand elements to apply across all the different products sold by the firm. Brand portfolio: set of different brands that a particular firm offers for sale to buyers in a particular category.Brand expansions// Marketing program investment: Stage 1Any marketing program investment that can contribute to brand value development:. Product research and development. Trade support. Marketing communications. Employee training. Program quality multiplier: Key considerations for effecting consumers mind-set: (DRIVE) Distinctiveness, Relevance, Integrated, Value, Excellence. Customer mind-set: Stage 2 In what ways have customers been changed as a result of the marketing program? How have those changes manifested themselves in the customer mind-set? Brand awareness, Brand associations, Brand attitudes, Brand attachments, Brand activity. Marketplace conditions multiplier: The extent to which value created in the minds of customers affects market performance depends on factors beyond the individual customer: Competitive reactions : How effective are the marketing investments of competing brands? Channel support : How much brand reinforcement and selling effort is being put forth by various marketing partners? Customer size and profile: How many and what types of customers are attracted to the brand? Market performance: Stage 3 Customer mind-set affects customer reaction in the marketplace in terms of: Price premiums, Price elasticities, Market share, Success of brand expansions, Reducing costs structureThese 5 outcomes lead to brand profitability. Investor sentiment multiplier: Investors consider a host of factors for their brand valuations and investment decisions. Market dynamics, Growth potential, Risk profile, Brand contribution Shareholder value: Stage 4The financial marketplace formulates assessments, based on all available current forecasted information, that have a very direct financial implication for the brand value: Stock price. Overall market capitalizatio Strong brands deliver greater returns for stockholders. Implications of brand value chains: Stages will be of greater interest to different members of the organization: BMM à Customer mind-set. CMO à Market performance. CEO à Shareholder value sources of brand equity 1. Brand awareness: Brand recognition :Ability to recognize prior exposure to the brand when given the brand as a cue and the ability to recognize the brand in the store. Brand recall: ability to retrieve the brand from memory when given the product category, a purchase or usage situation as a cue. Advantages of brand awareness: Learning advantages :register the brand in the minds of consumers. Consideration advantages :Likelihood that the brand will be a member of the consideration set. Choice advantages :Affect choices among brands in the consideration set. Target Market:Market: set of all actual and potential buyers, who have sufficient interest income and access to a product. Market segmentation: Divides the market into distinct groups of homogeneous consumers who have similar needs and consumer behaviour. (use the same marketing mix) Requires trade-off between personalization vs, cost. Basic criteria for brand segmentation: Identifiability: Can we identify the segment? Size: is there sales potential in the segment? Accessibility: Can we reach this segment? Responsiveness: Will the segment respond to our marketing program?/ Points-of-difference associations: (PODs). Attributes or benefits that consumers strongly associate with the brand, evaluate positively and strongly believe they could not find elsewhere. Two types: functional/ performance related considerations and abstract, imagery related considerations. The benefits should be backed up with proof points or also called ‘’reasons to believe’’ (RTBs). RTBs can come in many forms: Functional design, key ingredients, key endorsement. They are essential to consolidate the PODS. Points-of-parity associations: 3 kinds ofPOP: Category POP: Attributes that you expect from the product category. Competitive POP: Try to negate the POP of the competition. Correlation POP: Potentially negative associations that arise from positive associations. /Brand mantra: A short, three to five-word phrase that captures the essence or spirit of the brand positioning. Similar to brand essence or core brand promise. Communicate: define the category of the business to set the brand boundaries and clarify what is unique about the brand. Simplify: Be simple and memorable. Inspire: Steak out ground that is personally meaningful and relevant to as many employees as possible. Steps building brand resonance:Brand salience: To achieve the right brand identity, you need to create brand salience with customers.It measures various aspects of the awareness of the brand:To what extent is the brand top-of-mind and easily recalled or organized. What types of cues or reminders are necessary?. How pervasive is this brand awareness? Brand performance: Brand performance:Describes how well the brand meets customers’ more functional needs.Designing and delivering a product that satisfies customers’ needs is a prerequisite for successful branding. Attributes and benefits that underlie brand performance: Primary ingredients and supplementary features. Product reliability, durability and serviceability. Service effectiveness, efficiency and empathy Style and design. Brand imagery:It is the way people think about a brand abstractly, rather than what they think the brand actually does. Intangibles linked to a brand:User imagery. Type of person or organization that uses the brand. Results in customers mental image of actual users or more aspirational, idealized users.Consumers may base associations of a typical or idealized brand users on descriptive demographic factors or more abstract psychographic factors. Brand feelings: Customers’ emotional responses and reactions to the brand. Concept of ‘’Lovemarks’’: Important brand building feelings:Warmth,Fun,Excitement,Security,Social-approval, Self-respect.Brand resonance:Ultimate relationship and level of identification that customer has with the brand. Behavioural loyalty..Attitudinal attachment. Sense of community.Active engagement CH 4..General criteria chosing brand elements: 1.memorable 2meaninful 3likable 4 transferable 5 adaptable 6 protectable.Brand names: 1Simplicity and easy pronunciation and spelling. 2 Familiarity and meaningfulness. 3 differentiated, distinctive and unique. Naming procedure (Jonathan Bell) 1Define objectives 2Generate names 3Screen initial candidates 4Study candidate names 5 Research the final candidates 6Select the final name. Recognizable visual language:ColourImageryTypographyComposition. Ch 5. Consumers are empowered: Can obtain a great amount of information, Can interact with other consumers and share reviews, Can purchase a greater variety of available products, Can more easily place and receive orders. Improvements for companies: Can operate a powerful new information and sales channel with augmented geographic reach. Can facilitate two way communications Can customize their offerings to individual customers. Aftermarketing: Improve user manuals. Customer service programs.Loyalty programs. Chanel strategy: Channel intensity Channel integration Channel selectionCONCLUSION: The product is at the heart of brand equity. To create loyal customers, marketers need to invest in aftermarketing activities: delivering superior value before, during and after the purchase to enhance the product experience. CH6: Mrk communication: 1. Advertising: Any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor. Promotion: Sales promotions are short term incentives to encourage trial or usage of a product. Advertising provides consumers a reason to buy but sales promotions offer consumers an incentive to buy. Online market communication. Events and experiences. Mobile marketing. Product advertising on various mobile platforms. Geotargeting: marketers send messages to consumers based on their locations and the activities they are engaging in.Opt-in advertising: Users agree to allow advertisers to use specific, personal information, send them targeted ads and promotions. Brand amplifiers: Publicity :creates public awareness and attention around a brand. Non-personal communication such as press releases, media interviews, press conferences, films.Public relations: PR focuses on building relationships and managing an imageApart from creating awareness, PR includes functions like: Media monitoring, event coordination, crisis and reputation management. Word-of-Mouth: Consumers share likes, dislikes and experiences with each other. It assures a greater degree of credibility and relevance. IMC program: Coverage: Proportion of the audience reach by each communication option, as well as how much overlap exists among communication options. Contribution: Inherent ability of a marketing communication to create the desired response and communication effects from consumers in the absence of exposure to any other communication option. Commonality: Extent to which common information conveyed by different communication options shares meaning across communication options. Complementary: describes the extent to which different associations and linkages are emphasized across communication options. Conformability: Extent that a marketing communication option is robust and effective for different groups of consumers. Cost: To arrive at the most effective and efficient communication program evaluations of marketing communications on all of the preceding criteria must be weighed against their cost. 8 main ways to leverage secondary asscociations: Company: Existing brands can be related to a corporate or family brand. A corporate or family brand can be a source of brand equity. Leveraging a corporate brand may or may not be useful. Country of origin: Consumers choose brands originating in different countries based on:Their beliefs about the quality of certain types of products from certain countries. Can create strong points-of-difference. Channels of distribution Retail stores can indirectly affect brand equity through an “image transfer” process. Retailers have their own brand images in consumers’ minds due to the following associations: Product assortment, Pricing, Credit policy, Quality of service Co-Branding: When two or more existing brands are combined into a joint product or are marketed together in some fashion. To create strong co-brand both brands should have. Licensing Creates contractual arrangements whereby firms can use:Names, logos and characters of other brands to market their own brands for some fixed fee“renting” another brandFirms may license corporate trademarks to:Generate extra revenue and profits. Protect their trademarksIncrease their brand exposure Celebrity endorsement: Rationale to work with a famous personDraw attention to a brand. Shape brand perceptions, by virtue of consumers perceptions of the famous person. Sporting, cultural or other events: Contribute to brand equity by:Becoming associated to the brand and improving brand awareness Adding new associations.Improving the strength, favorability and uniqueness of existing associations Third-party sources: Involves linking the brand to various third-party sources.