BRAND Strategies

Introduction to Marketing
Management
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CSUN
 What is a BRAND?
"A brand is a name, symbol, design, or mark that
enhances the value of a product beyond its functional
purpose" (Farquhar 1989).

"For many businesses the brand name and what it

represents are its most important asset--the basis of
competitive advantage and of future earnings streams
(Aaker 1991).

Coca-Cola was estimated to be worth $36 billion

Budweiser worth $9.7 billion
Nike's worth was estimated at $3.6 billion
Barbie's value was judged to be $1.7 billion.
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 Branding Definitions

Brand: any name, term, symbol, sign, design, or unifying combination of

these that identifies one product from another competitive product
Brand Name: the verbal part of the brand
Logo: a brand name or company name written in a distinctive way (short
for logotype)
Trademark: a legally protected brand name or brand mark. A registered
trademark gives a marketer proprietary rights to a symbol or name
Service Mark: provides the same identifying function for services that a
trademark provides for goods. It also can be legally protected by
registration
Generic Names: describe a product or an item that is part of our standard
vocabulary

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Product Strategies
 Purpose of Branding

Consistency Quality & Value

Attributes Advantages Identification

of
Brand Names
High Brand Brand Strong Brand
Loyalty Equity Association

Name Awareness Perceived Quality

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 Managing and Building a Brand Knowledge
Perceived Meanings
Brand can possess an
appealing image that Expected
Recall versus consumers value Price Sensitivity &
Recognition Performance Purchase rate
directly

BRAND BRAND BRAND

BRAND QUALITY
AWARENESS ASSOCIATIONS LOYALTY

Reduced Marketing
Anchor to Which Other Help Process & Reason-to-Buy Costs Trade leverage
Associations Can Be Retrieve Information
Differentiation/ Position Attracting New
Attached Differentiate/
Price Customers (create
Familiarity Liking Position Awareness &
Reason-to-Buy Channel Member Interest Reassurance)
Signal of Commitment Extensions
Create Positive Time to Respond to
Brand to Be Competitive Threats
Considered Attitudes/ Feelings
Potential for
Extensions 5
 Brand Awareness

Recall
e.g., first brand that comes to mind in x category

Recognition
e.g., Rate your level of familiarity of each brand in x
category

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 Brand Associations:
e.g., Bose

Functional Symbolic
Benefits Benefits

Brand Brand
Attributes Personality
(e.g., (e.g., lifestyle,
electronic elegance)
expertise
Brand Emotional
Identity Benefits 7
 How to Create Strong Brands

Brand Equity
Brand Elements
Loyalty:
Name Symbol Brand
Resistance to
Loyalty
Logo Character competition
Pkg. Slogan Brand Larger margins
Awareness
More elastic for
Marketing Programs Brand price decreases
Product Distribution Associations Less elastic for
Price Communica. price increases
Perceived
Quality Communications
Secondary Associations efficiency/effective
Other
Company Endorser Licensing opps.
Proprietary
Company of origin Events Brand extensions
Assets
 Five-Stage Consumer Buyer
Decision Process
Problem
recognition

Information
search

Evaluation of
alternatives

Purchase
decision

Postpurchase
behavior 9
Buyer behavior
 NEED INFORMATION EVALUATION OF
ITEMS
RECOGNITION SEARCH ALTERNATIVES

Develop Brand beliefs for each

Brand Awareness Brand Attitude brand/attribute (brand
E positioning)
Q advertising exposure learn from
Brand beliefs make up the Brand
U (1) recognise the brand competitive Image
I (2) recall the brand with brands
T cues Brand beliefs varies with
experience and the effect of
Y (3) place the brand in a Form selective perception, distortion,
consideration set Consideration set
and retention

S Alter beliefs about the brand

T Keep the brand Develop a plan to get (psychological repositioning)
newsworthy into prospects Alter beliefs about the
R Build Familiarity consideration set competitorsbrands: competitive
A depositioning (e.g., running a
T Brand name conveying a Identify competitors in comparison ad)
product benefit = higher the consumers choice Alter the importance weights
E recall (e.g., Lean Cuisine set - to plan its Call attention to neglected
G low calorie food). competitive appeals attributes
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Shift the buyers ideals
Y
 POST-PURCHASE
ITEMS PURCHASE DECISION
BEHAVIOR

E Brand Loyalty
Based on Brand Preference
Q
Enhanced brand loyalty to:
U Brand preference varies with:
buy time to respond when
I (1) attitudes of others
competitors innovate
T (2) motivation to comply with
reduce cognitive dissonance
Y other persons desires

S Increase perceived Brand

Make product claims that faithfully
T Quality and Associations represent the products likely
performance (satisfaction)
R
Generate platforms to build on
A Generate brand heritage: connections
brand reputation between products and consumers
T
become part of the social and cultural
E Reduce perceived risk fabric (e.g., Santa Claus and Coca-Cola,
G (warranty, professional referrals, De Beers & diamonds and marriage,
champagne and celebrations)
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Y etc.)
 Implications of Brand Equity

Provides Value to Provides Value to Firms by

Customers by Enhancing Enhancing:
Customers:
Efficiency and Effectiveness of
Interpretation/Processing Marketing Programs
of Information Repeat Purchase
Confidence in the Prices/Margins
Purchase Decision Trade Leverage
Use Satisfaction Competitive Advantage
Product and Market Extensions
Bargaining Power
New Product Launch 12
 Major Branding Decisions

Brand Name Selection A five-step process:

Selection (1) setting branding objectives
Protection
(2) creating a list of candidate brand names
Brand Sponsor
(3) evaluating prospective brand names
Manufacturers Brand
Private Brand (4) choosing the best brand names
Licensed Brand
(5) applying for registration
Co-branding

Brand Strategy
Line Extensions
Brand Extensions
Multibrands
New Brands 13
 Types of Brands

Manufacturers Distributors or Generic

Brands Private Brands Products

Name is owned No-Name

Name is owned
and advertised product in plain
and advertised
by the package with
by intermediary
manufacturer stark lettering

Craftsman VONS
Tools products
Black & Whirpool
Decker tools Appliances Dog
Food

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Product Strategies
 Strategic Choices of Brand Name

Three brand name choices :

A. B. C.
family branding individual branding combinations
- less expensive - more expensive VW Beetle
- less effective - can be very effective
- Philips - OMO POWER

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 How Do You Build a Brand*
Knowledge
Intimate understanding of
the brand and what it stands for
Esteem
Regard for the brand

Relevance
Personal appropriateness
of the brand *Young
& Rubicam
Differentiation Brand Asset
Perceived uniqueness TM

of the brand
Valuator Model
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 Differentiation Insufficient
Differentiation yields brands margin
opportunity
Relevance yields usage opportunity
(penetration)
The differentiation must be relevant to create
a strong brand

Brand Strength

Differentiation Relevance
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Esteem & Knowledge = Brand Stature

Esteem
Related to perceptions of high quality and
increasing popularity

Knowledge
The successful outcome or culmination of brand
building
Achieved/earned, not bought

Brand Stature

Esteem Knowledge 18
 Dimensions of Brand Personality
The set of human characteristics associated with a brand. It
enables a customer to express his or her own self, or ideal
self, on specific dimensions of the self through the use of
the brand

Sincerity Excitement Competence Sophistication Ruggedness

Down-to Daring Reliable Upper class Outdoorsy

earth Spirited Intelligent Charming Tough
Honest Imaginative Successful
Wholesome Up-to-date
Cheerful
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 Four Brand Strategies
Product Category
Existing New

Existing Line Extension Brand Extension

Dannon Yogurt Flavors Barbie Electronics
Brand Name

New Multibrands New Brands

Seiko Pulsar Toyota & Lexus

+ Co-Branding = brands bearing 2 or more brand names

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BMW + Michelin or Intel + Compaq