What is a Product?

 Kotler’s Potential Product

Five
levels to a Augmented Product
product:
Expected Product

Generic Product

CORE BENEFIT
 What is a Product?
All the augmentations and
 Kotler’s Potential Product
transformations that a product
might ultimately undergo in the

Five future

Additional product attributes,

levels to a Augmented Product benefits, or related services that
distinguish the product from

product: competitors

Attributes and Characteristics that

Expected Product buyers normally expect and agree
to when they purchase a product

Basic Version of the product

Generic Product containing only those elements

absolutely necessary to function.
No distinguishing features.

The Fundamental Need or Want

CORE BENEFIT that consumers satisfy by
consuming the product or service
 What is a Brand?
Traditional view -
 A brand is a name, term, sign, symbol, or design which is intended to identify the goods or
services of one seller or group of sellers and to differentiate them from those of competitors.
More recent views
 Brand is what is experienced and valued by customers in everyday social life.
 Brand is the culture of the product – shared taken –for-granted brand stories, images, and
associations
 Brand is the mental and emotional file we have for a product or service or entity.
Managing a Brand Image through Marketing

“A brand is a living entity

– and it is enriched or undermined –
cumulatively over time, the product of a
thousand small gestures.”

Michael Eisner, CEO Disney

 1971

For a fee of $35, the Swoosh trademark was created by a

graphic design student named Carolyn Davidson.
BeforeNike there
were sneakers.
 Before
Coca-Cola
there were
soft drinks.
 Before
STARBUCKS
there were
coffee shops.
 Before
Microsoft
there were
software applications.

 
                                                             
 Before
Nokia
there were
cell phones.
 What is a Brand?
 Not simply a product -- anything offered to a market for
attention, acquisition, use, or consumption that might
satisfy a need or want.
 A product can be:
– Physical good
– Service
– Retail Store
– Person
– Organization
– Place
– Idea
 What is a Brand?
Product = Commodity
A product is a produced item always
possessing these characteristics:
• Tangibility
•Attributes and Features

Brand = “Mind Set”

The sum of all communications and experiences received
by the consumer and customer resulting in a distinctive
image in their “mind set” based on perceived emotional
and functional benefits.
 What is a Brand?
 AMA (technical definition)
– “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”
 What is a Brand?
 What does the AMA definition leave out?
 What is a Brand?
 Keller’s Definition:
– A product, but one that adds other dimensions that
differentiate it in some way from other products
designed to satisfy the same need.
 Rational and tangible
 Symbolic, emotional and intangible

 The psychological response to a brand can be as

important as the physiological response.
 Why Does A Brand Matter?
MANUFACTURERS CONSUMERS
 simplify handling  Product Source
Marketing  Assignment of
 Legal protection of unique
responsibility to maker
features
 Risk reducer
 Signal of quality level to
satisfied customers  Search cost reducer
 Means of endowing  Promise, bond, or pact of
products w/unique product
associations  Symbolic Device
 Competitive Advantage
 Signal of Quality
 Financial Returns
 What is a Brand?
 Products don’t exist in a void…
 They are bought because consumers have
found something they relate to in them,
something which they value
 Brand = Credible Guarantee
 What is a Brand?
 Relative Brand Distinction
– The more distinctive or different a brand is in
the consumers “mind set”, the stronger brand
preference becomes. This is critical to keep
competition from the consumer’s consideration.

Products Brand Strong Brand

(Commodities) Name Brand
Perceived by the
No Difference Well Known Distinctive Consumer as
Except Price But Similar Unique
 What is a Brand?
 Relative Brand Distinction
– A brand’s preference is primarily built through
differentiation and relevance
– Insulate product from competition
– OWN Something

Products Brand Strong Brand

(Commodities) Name Brand
Perceived by the
No Difference Well Known Distinctive Consumer as
Except Price But Similar Unique
Timothy D. Ennis, Ennis Associates, Inc
 What is a Brand?
Kotler’s Five Levels
Potential Product
of A Product

Augmented Product
BRAND DISTINCTION

Products Brand Strong Brand

(Commodities) Name Brand
Expected Product Perceived by the
No Difference Well Known Distinctive Consumer as
Except Price But Similar Unique

Generic Product

CORE BENEFIT
 What is a Brand?
Kotler’s Five Levels
Potential Product
of A Product

Augmented Product
BRAND DISTINCTION by Timothy D. Ennis

Products Brand Strong Brand

(Commodities) Name Brand
Expected Product Perceived by the
No Difference Well Known Distinctive Consumer as
Except Price But Similar Unique

OWN Something
Generic Product

CORE BENEFIT
 What is a Brand?
 What Makes the Best Brands?
– Source of company wealth for generations
– Improves with Age
– Develop clearly defined personalities
– Develop affection & loyalty of the public
– Become parents to sub-brands and brand
extension
 Brands = Powerful emotional tools
 Alternative Branding Models

Company Company is equal Brands dominate

dominates Brands to Brands the Company
American Express (cards) Chrsyler = Jeep Crest (P&G)
BMW (Motorcycles) PepsiCo = Mountain Dew Marlboro (Philip Morris)
Colgate (Total toothpaste) Time Warner = Warner Bros Wranlger (VF Jeans)
Disney (Films) 3M = Scotch Tape Lifebouy Soap (HUL)
General Electric (appliances)
IBM (Technology)
L’Oreal (Cosmetics)
Sony (Electronics)
Philips (Electronics)
 Brand Value
 Three Tiers of Brand Value
– Functional Values
– Expressive Values
– Central Values

Interbrand; The World’s Greatest Brands.

Brand Value Corresponding to
Brand Hierarchy Pyramid

Central

Expressive

Functional
 Brand Value
 Functional Values:
– Govern product performance
 Coke refreshes its drinker
 Volvo gives its driver a safe ride
 IBM PC provides quick computing
– Don’t differentiate products
 Pepsi refreshes
 Mercedes is as safe as Volvo
 Apple is as quick as IBM
– Brand Owner’s “bright ideas” can be instantly copied
in every continent
 Brand Value
 Expressive Values:
– Say less about the product & more about the
consumer
– Reflect and enhance the consumer’s sense of
him/herself
– Provide a key source of brand differentiation
 Marlboro’s - masculine values
 Armani’s - status and fashionable values
 Apple - creative and human values
 Brand Value
 Central Values:
– Most Enduring
– Right to the Core of the Consumer’s Belief
System
– At their purest = embodied in religious,
national or political persuasions
– Comparable power = embody mass movements
or cultural trends
 Nike “Just Do It”
Brand Value Corresponding to
Brand Hierarchy Pyramid
Very meaningful in
differentiating our Brand but
very difficult to deliver
consistently to our
Central consumers

Expressive

Functional Easy to deliver and explain

to consumers but also easy to
imitate
 Brand Value:
Brand Hierarchy Pyramid
Very meaningful in
The emotional beliefs and
differentiating our Brand but
values that consumers feel
very difficult to deliver
are being addressed by our
consistently to our
brand (CENTRAL)
Beliefs & consumers
Core
Values
The functional and emotional
benefits that our
product/services provides to
the consumer
Benefits
(EXPRESSIVE)

Product/Service features Features & Easy to deliver and explain

and/or attributes that must be to consumers but also easy to
addressed (FUNCTIONAL)
Attributes imitate
 Brand Hierarchy Pyramid vs
Product Level
Very meaningful in
Potential Product differentiating our Brand but
very difficult to deliver
consistently to our
Augmented Product Beliefs & consumers
Core
Values

Expected Product
Benefits

Generic Product
Features & Easy to deliver and explain
to consumers but also easy to
Attributes imitate
CORE BENEFIT
 Brand Value

OK…Values are Essential…BUT

Are they enough?
What is missing??
 Brand Value
 Values Need to be Harnessed & Honed
 The Force
– Brand Builder’s Vision
– Big Idea
– Conviction
 Brand Vision

To build successful brands while

your competitors turn their brands
into commodities start with a five-
step process
 Brand Vision
 Brand Vision LIFTS the Brand above the
mundane and functional
 Appeals to Expressive and Central
VALUES
 Process creates a bond with the consumer,
and hopefully, long-term loyalty
 Brand Vision
 The First thing you need to do is create a
marketing vision to rally your forces.

“Where there is no vision, the

people perish.”
 Brand Vision
 “Something supposedly seen by other than
normal sight”
 “The ability to see something not actually
visible”
 “A force or power of imagination”
 “The experience of having a revelation”
 “Something supernaturally revealed as to a
prophet”
 Brand Vision
MUST BE:
Exciting, even inspirational, to all of your
stakeholders: customers and prospective
customers, managers and employees,
analysts, reporters – everyone.

Kevin Clancy, Copernicus, Counter Intuitive

 Brand Vision
MUST BE:
So big, so bold and so audicious that
expressing it – never mind executing it –
has a transformational effect. You start to
become what you want to be. The dream
and the reality fuse. Kevin Clancy, Copernicus, Counter Intuitive

i.e. YOU NEED A BIG HAIRY VISION

 Brand Vision Checklist
 Inspirational & uplifting; it moves people
 Exciting; it gets the blood pumping
 Aspirational; it is barely attainable
 Readable; it is clearly communicated
 Unique/special/different
 Very specific, not general
 Connotes superiority or domination
 Bold and brash; it oozes with confidence
 Causes people to want to invest in/work for the company or
buy the company’s products
 Transformational, revolutionary, not evolutionary
 Brand Vision
 Let’s review some published vision
statements
 Assign them a grade from 0 to 100.

Kevin Clancy, Copernicus, Counter Intuitive

 Brand Vision
A beverage company
“We exist to create value for our shareholders
on a long-term basis by building a business
that enhances the company’s trademarks.”

Kevin Clancy, Copernicus, Counter Intuitive

 Brand Vision
A beverage experience company
“To have bigger brand awareness than
Coca-Cola.”

David Sutton, Zyman Marketing

 Brand Vision
A motorcycle company
“We will crush, squash, slaughter Yamaha!”

Kevin Clancy, Copernicus, Counter Intuitive

 Brand Vision
A technology company
“To eclipse IBM as the #1 technology
company in the world.”

Kevin Clancy, Copernicus, Counter Intuitive

 Brand Vision
A gasoline company
“We will become the dominant brand in the
service station industry and beyond – with
the friendliest, fastest, cleanest stations
everywhere – one of the most admired
brands on the planet.”

Kevin Clancy, Copernicus, Counter Intuitive

 VISION to ASSET LEVERAGE
 Tellis and Golder five factors and rationale
as the keys to enduring brand leadership

Vision of Managerial Financial Relentless Asset

the Mass Persistence Commit- Innovation Leverage
Market ment

Gerard Tellis & Peter Golder “First to Market, First to Fail? Real Causes of
Enduring Market Lendership” MIT Sloan Management Review, 1/1/96
 Brand Vision
MUST BE:
So big, so bold and so audicious that
expressing it – never mind executing it –
has a transformational effect. You start to
become what you want to be. The dream
and the reality fuse. Kevin Clancy, Copernicus, Counter Intuitive
 What is a Brand?
Kotler’s Five Levels
Potential Product
of A Product

Augmented Product
BRAND DISTINCTION by Timothy D. Ennis

Products Brand Strong Brand

(Commodities) Name Brand
Expected Product Perceived by the
No Difference Well Known Distinctive Consumer as
Except Price But Similar Unique

OWN Something
Generic Product

CORE BENEFIT
 POWER BRANDS
 Assessing BRAND POWER

BRAND DEPTH

BRAND LENGTH POWER BRAND BREADTH

BRAND WEIGHT

Interbrand
 POWER BRANDS
 Assessing BRAND POWER

The stretch or extension that

the brand has achieved in the
past or is likely to achieve in
BRAND LENGTH the future (especially outside
its original category)

Interbrand
 POWER COMPANIES
The World's 10 Most Valuable Brands
GOOD – TO –GREAT CASES
VALUE ($billions)
Results T +15 yr*
1 COCA-COLA 69.6
1 Abbott 3.98x
2 MICROSOFT 64.1
2 Circuit City 18.5x
3 IBM 51.2
3 Fannie Mae 7.56x
4 GE 41.3
4 Gillette 7.39x
5 INTEL 30.9
5 Kimberly-Clark 3.42x
6 NOKIA 30.0
6 Kroger 4.17x
7 DISNEY 29.3
7 Nucor 5.16x
8 McDONALD'S 26.4
8 Philip Morris 7.06x
9 MARLBORO 24.2
9 Pitney Bowes 7.16x
10 MERCEDES 21.0
10 Walgreens 7.34x
Data: Interbrand Corp., J.P. Morgan Chase & Co / 11 Wells Fargo 3.99x
Business Week

Data: Ratio of cumulative stock retruns relative to the general stock market
Jim Collins, Good To Great
 Brand Vision
HEDGEHOG Concept
 The Essential Strategic Difference between
the Good-to-Great companies:
– Founded their strategies on deep understanding
along three key dimensions
– Translated that understanding into a simple,
crystalline concept that guided all their efforts
Jim Collins, Good To Great
 Brand Vision
A Hedgehog Concept:
•Is not a goal to be the best, What are you deeply
Passionate About
•not a strategy to be the best,
•not an intention to be the best
•not a plan to be the best
•It is AN UNDERSTANDING What you Can What Drives
of what you CAN be the best be The Best in Your
at. the World at Economic
Engine

Jim Collins, Good To Great

 Brand Vision
A Hedgehog
Concept What are you deeply
Passionate About
“Focusing solely on what
you can potentially do
better than any other
organization is the only
path to greatness.”
What you Can What Drives
…Equally important they be The Best in Your
know what they cannot the World at Economic
be best at. Engine

…It is an understanding
Jim Collins, Good To Great
 Brand Vision
A Hedgehog
Concept What are you deeply
Passionate About
“Good to Great
Companies know they
should only do those
things that they can get
passionate about.”
What you Can What Drives
be The Best in Your
the World at Economic
“They asked the right Engine
questions.”
Jim Collins, Good To Great
 Branding
 How do we measure one brand’s
performance vs another brand?
 Branding
 Brand Share of Market:
– Measuring a brand’s percent of sales in a market
– Can be measured nationally, regionally and at retailers
– Data captured via
 Scanner data (IRI, Nielsen)

 Industry trends A

 nnual reports
 Branding
 Measuring Brand Share of Market
Unit $$ Unit $$
Sales Sales Share Share
National 120 $270 100% 100%
Brand A 5 15 4.2% 5.6%
Brand B 15 15 12.5% 5.6%
Brand C 3 7 2.5% 2.6%
 Branding
 Measuring Brand Share of Market
Brand Sales
Category Sales = Brand Share
 Branding
 Are ALL Brands Created Equally?
 How Does Brand Usage Compare to Category or Competitive Usage?
 Are Brands Equally Strong in Different Regions?
 Measuring Brand Development
 Using Brand Share Metrics
 Brand Management
 As much ART as SCIENCE
 As much SCIENCE as ART
 Achieved by combo of
– Specialist talent
– Long term vision
– Analytic wizardry
 What is Brand Management?
 Entrepreneurs are building brands (Ben &
Jerry’s, Yahoo…)
 Creating a whole new brand
– Riskiest
– Most lucrative
 Six to Seven of Ten brands launched fail
What is Brand Management?
 Majority of Brand Builders main task
– take existing brand legacy
– adapt brands to suit the requirements of more
sophisticated consumers.
What is Brand Management?
 Components of Main Brand Builders task
– Embrace the increasing possibilities for communicating
brand values
– Acknowledge growing financial pressures on brands to
make a return.
– Issue: Agencies are communicators..some given
responsibility to modify core brand values…brand
owners may run into difficulties with this later..
What is Brand Management?
 Marketing as Brand Management’s
responsibility is to build long-term
profitable growth for the company’s brands.
What is Brand Management?
 To accomplish this, marketing must:
– Deliver sustained value to consumers
– Enhance brand equity by keeping their brands
relevant, fresh and contemporary
– Build consumer loyalty towards their brand
What is a Brand Management?
 Brand Building Begins By
– Understanding & anticipating the needs and
desires of the consumer
– Understanding the key attributes of the
product(s)
 Our Mission is to DISCOVER (rather than
Invent) the brand’s CORE VALUES and
abide by them.
What is Brand Management?
 Brand = Primitive God
– If we keep it’s laws
– And pay regularly the tributes due
(mainly advertising), fortune will smile
on us – otherwise, disaster.
What is Brand Management?

“You have to maintain and replenish a

brand over time or it will die”
Brand Vision and Essence

BRAND = Mindset
EQUITY = Roots
ESSENCE = Brand’s Soul
VISION = Brand’s DNA
What is Brand Management?
Functional Excellence in Firmwide Leadership in
Support of the Brand Stewarding the Brand

Primary Source of Differentiation Primary Source of Differentiation

• Product/service innovation and • Customer experience, in addition to
communication innovation and communication

Purpose of the Brand Purpose of the Brand

• Create or reinforce product • Provide clear set of values along
distinctiveness which to align all enterprise activities
and investments

Corporate Executive Board

What is Brand Management?
Functional Excellence in Firmwide Leadership in
Support of the Brand Stewarding the Brand
Marketers Responsibilities Marketers Responsibilities
• Deduce customer interests from • Generate customer insight from all
market research data points of customer contact
• Develop and refine brand strategy •Develop & Refine brand values, and
translate into expectations for each
function and role
• Control advertising and promotion •Influence customer experience
planning and execution across all touch-points, from
communication through transaction
and service
•Develop new line extensions •Leverage brand into new, relevant
industries, marketplaces or customer
segments
Corporate Executive Board
What is Brand Management?
Functional Excellence in Firmwide Leadership in
Support of the Brand Stewarding the Brand
Marketers Responsibilities Marketers Responsibilities
• Defend marketing budget • Champion shareholder value
•Base decisions primarily on • Base decisions on marketing
marketing judgement judgement supported by
comprehensive customer database
and/or modeling of all key inputs and
outputs
•Determine success through •Determine success using a dashboard
intermediate measures (awareness, of selected intermediate and bottom-
recall, brand equity) line measures

Brand Architecture Brand Architecture

• Multiple, unrelated brands • Single brand or few, interrelated
brands
What is Brand Management?
Functional Excellence in Firmwide Leadership in
Support of the Brand Stewarding the Brand

Locus of Brand Ownership Locus of Brand Ownership

• Brand Managers • Chief Marketing Officer

Corporate Executive Board

 What is Brand Management?
 Brand Management is reliant on entire
corporation and agency teams
 In Operationalizing the brand, the
highest priority is to enlist the support
of each member of the team
What is Brand Management?
Innovative Analysts
Archeologists
Brand Sociologists
Champions Politicians
General Managers
Templar Knights of Equity
Evangelists
Brand Stewards
 Strategic Brand Management

Parallel Path Strategic Growth Model

(Soni’s Standard Operating Procedure)
Guiding Focused Strategic Growth
Parallel Path Process
Building
Brands
NOT
Growing
Products

PATH 2:
We’ve got a
Business to Run
$ $
PATH 1:
Strategic Plan
for Long Term
Explosive Growth
 Guiding Focused Strategic Growth
Parallel Path Process

Interview ALL Review &

key internal analyze
players, all business and
vendors, & consumer
Read all research
buyers/brokers trends
on-hand & obtained

#1 Full Business Immersion

Path 1: Strat Plan for High Growth
 Guiding Focused Strategic Growth
Parallel Path Process

#5 SET STRATEGIC PLAN

#4 Full Team Brainstormings

#3 Vision >>Objectives >>Strategies

#2 Brand Essence/Consumer Insight

#1 Full Business Immersion

Path 1: Strat Plan for High Growth
 Guiding Focused Strategic Growth
Parallel Path Process

Focus on
Immediate
Business
Ensure All
Issues
ASK & Listen Priorities &
Deadlines are met

#1 Work Current Plan

Short Term: Running The Business
 Guiding Focused Strategic Growth
Parallel Path Process

#5 ADJUST SHORT TERM PLAN

#4 Full Team Brainstormings

#3 Strat & Tactic Successes/Failures

#2 Facts vs Folklore

#1 Work Current Plan

Path 2: ST Running The Business
 Guiding Focused Strategic Growth
Parallel Path Process

#5 SET STRATEGIC PLAN

$$ ADJUST SHORT TERM PLAN

#4 Full Team Brainstorm

#3 Vision >>Objectives >>Strategies Strat & Tactic Successes/Failures

#2 Brand Essence/Consumer Insight Facts vs Folklore

#1 Full Business Immersion Work Current Plan

Path 1: Strat Plan for High Growth Path 2: ST Running The Business
 Guiding Focused Strategic Growth
Parallel Path Process

#5 SET STRATEGIC PLAN

$$ ADJUST SHORT TERM PLAN

#4 Full Team Brainstorm

Building
#3 Vision >>Objectives >>Strategies Strat & Tactic Successes/Failures
Brands
#2 Brand Essence/Consumer Insight NOT
Facts vs Folklore
Growing
#1 Full Business Immersion Products Work Current Plan
Path 1: Strat Plan for High Growth Path 2: ST Running The Business
 Strategic Brand Management

In Class Exercises:
Self Positioning
Case Study
Product and Brand Hierarchy
Exercise
 Strategic Brand Management
SELF POSITIONING
Develop your own personal positioning statement
to share with your group this week.
Have your group provide you feedback this week.
Define your target audience in the process: what
they need to know and why? What makes you
unique and why?
Have in writing to turn in and share next week.
 What is a Product?
Additional Product attributes,
 Kotler’s Potential Product
benefits, or related services that
distinguish the product from

Five competitors

Additional product attributes,

Levels to Augmented Product benefits, or related services that
distinguish the product from

a Product: competitors

Attributes and Characteristics that

Expected Product buyers normally expect and agree
to when they purchase a product

Basic Version of the product

Generic Product containing only those elements

absolutely necessary to function.
No distinguishing features.

The Fundamental Need or Want

CORE BENEFIT that consumers satisfy by
consuming the product or service
 PRODUCT LEVEL
LEVEL Television or Juice Drink
BRAND
Name/Positioning
Potential Product
Augmented Product
Expected Product
Generic Product
Core Benefit
 Brand Value:
Brand Hierarchy Pyramid
Very meaningful in
The emotional beliefs and
differentiating our Brand but
values that consumers feel
very difficult to deliver
are being addressed by our
consistently to our
brand (CENTRAL)
Beliefs & consumers
Core
Values
The functional and emotional
benefits that our
product/services provides to
the consumer
Benefits
(EXPRESSIVE)

Product/Service features Features & Easy to deliver and explain

and/or attributes that must be to consumers but also easy to
addressed (FUNCTIONAL)
Attributes imitate
 BRAND HIERARCHY
LEVEL Television or Juice Drink
BRAND
Name/Positioning
Central
Beliefs and Core Values
Expressive
Benefits
Functional
Features and Attributes
 Strategic Brand Management
Did your output change with the
Brand Hierarchy vs the Product Level
approach?
What about the Consumer?
How did you create this brand without
the Consumer Insights?
What about your BHV?
Strategic Brand Management
09/18/03 ASSIGNMENT

 SBM Chapters 1-3, Du Pont Case Study

 Good/Bad branding comparative one-pager and
images

 Be prepared to discuss group Hierarchy exercise

and Personal Positioning Statements
 Strategic Brand Management

 Feedback
 Strategic Brand Management

THANK YOU!
Class #1- September 11th, 2003
Soni Simpson