BRANDING AND CORE

BUSINESS GROWTH
DR. HINDRA MULYA, MM
MANAJEMEN PEMASARAN
STRATEJIK
MM UNPAR - 2024
FENOMENA APA YANG SEDANG TERJADI?
FENOMENA APA YANG SEDANG TERJADI?
FENOMENA APA YANG SEDANG TERJADI?
 MARKETING 1.0 TO MARKETING 5.0
 Marketing 1.0 — A practice that is focused on products. The main idea is to
highlight the features and benefits of the product and convince A potential
consumer to make A purchase decision;
 Marketing 2.0 — A customer-oriented approach. This stage of marketing
evolution is closer to what we perceive as marketing today since it shifts the
focus on customer needs;
 Marketing 3.0 — A human-centric marketing approach. Although it may
resemble the previous stage, in fact, there’s A major difference. This stage is
more about transforming A company to reflect human values;
 Marketing 4.0 — the transition from traditional to digital marketing techniques.
Brands become closer to their consumers while technologies bring about
changes in power dynamics and A new type of customer.
 Marketing 5.0 — the application of technologies that are shaped in a way to
create, communicate, and enhance value throughout the customer journey.
 MARKETING 5.0
• Kotler states that marketing 5.0 entails focusing on consumer
experience through interactions via technology. Although consumers
are already using technology, marketers are presented with a
challenge — how to create a relationship with their consumers
through the technology. The challenge is further amplified by the fact
that there are currently five generations living together, and their
behaviours, preferences and attitudes are quite contrasting or even
conflicting.
• This sort of social divide is amplified by the covid-19 outburst and the
way it affects different generations. After all, the pandemic led to an
even more unequal distribution of wealth as younger generations, who
form the majority of the workforce, are becoming more vulnerable to
the external forces that negatively impact their economic stability.
According to Kotler, the middle class is slowly vanishing and the
markets are becoming polarized — luxury markets are contrasted by
low-priced and value-focused products of the mass market.
 KOPI BERKUALITAS
TIDAK HARUS MAHAL

(CEO KOPI KENANGAN

EDWARD TIRTANATA)
2 TAHUN 250 GERAI –
RP. 50 MILYAR OMZET
SEBULAN

THE THIRD
PLACE
FOR PEOPLE TO
GO BETWEEN
HOME AND
WORK

(MANTAN CEO
STARBUCKS
HOWARD
SCHULTZ)
 How Does
Branding Work?

• American Marketing Association

– A brand is “a name, term, sign, symbol, or
design, or a combination of them, intended to
identify the goods or services of one seller or
group of sellers and to differentiate them from
those of competitors”
A brand is thus a product or service whose
dimensions differentiate it in some way from other
products or services designed to satisfy the same
need.

These differences may be functional, rational, or

tangible—related to product performance of the
brand.

They may also be more symbolic, emotional, or

intangible— related to what the brand represents
or means in a more abstract sense.
 The role of brands
A brand is a promise between the firm and
the consumer.

• Brands’ role for consumers

 Set and fulfill expectations

 Reduce risk
 Simplify decision making
 Take on personal meaning
 Become part of identity
To firms, brands represent enormously valuable
pieces of legal property that can influence consumer
behavior, be bought and sold, and provide their
owner the security of sustained future revenues.

Companies have paid dearly for brands in mergers

or acquisitions, often justifying the price premium on
the basis of the extra profits expected and the
difficulty and expense of creating similar brands
from scratch.

Wall Street believes strong brands result in better

earnings and profit performance for firms, which, in
turn, create greater value for shareholders.
 The Scope of Branding
• Branding
– The process of
endowing products
and services with
the power of a
brand
Branding is all about creating differences between
products.

Marketers need to teach consumers “who” the

product is—by giving it a name and other brand
elements to identify it—as well as what the
product does and why consumers should care.

Branding creates mental structures that help

consumers organize their knowledge about
products and services in a way that clarifies their
decision making and, in the process, provides
value to the firm.
 Defining Brand Equity
• Brand equity
– Added value endowed to products with
consumers
 Defining Brand Equity
• Customer-based brand equity
– The differential effect brand knowledge has on
consumer response to the marketing of that
brand

 Differences in consumer response

 Brand knowledge
 Perceptions, preferences, and behavior
 Defining Brand Equity
• Brand promise
– The marketer’s vision of what the brand must
be and do for consumers
Brand Equity Models

BrandAsset® Valuator

Brandz

Brand Resonance Model

 Brand Equity Models
• BrandAsset®
Valuator
– Energized
differentiation
– Relevance
– Esteem
– Knowledge
 Figure 11.2
The Universe of Brand Performance
 Brand Equity Models
• Brandz
– Meaningful, different, & salient associations
– Power, premium, & potential outcomes
Brand Dynamics employs a set of simple scores that summarize a
brand’s equity and are relatable directly to real world financial and
business outcomes.

Brand Dynamics maintain that three different types of brand

associations are crucial for building customer predisposition to buy a
brand—meaningful, different, and salient brand associations.

The success of a brand along those three dimensions, in turn, is

reflected in three important outcome measures:
Power: a prediction of the brand’s volume share
Premium: a brand’s ability to command a price premium relative to the
category average
Potential: the probability that a brand will grow value share
 Brand Equity Models
• Brand Resonance Pyramid
The brand resonance model also views brand building as an
ascending series of steps, from bottom to top:
(1)ensuring customers identify the brand and associate it
with a specific product class or need;
(2)firmly establishing the brand meaning in customers’
minds by strategically linking a host of tangible and
intangible brand associations;
(3)eliciting the proper customer responses in terms of
brand-related judgment and feelings; and
(4)converting customers’ brand responses to intense, active
loyalty.
Creating significant brand equity requires reaching the top of the
brand pyramid, which occurs only if the right building blocks are put
into place.
Brand salience is how often and how easily customers think of the
brand under various purchase or consumption situations—the depth
and breadth of brand awareness.
Brand performance is how well the product or service meets
customers’ functional needs.
Brand imagery describes the extrinsic properties of the product or
service, including the ways in which the brand attempts to meet
customers’ psychological or social needs.
Brand judgments focus on customers’ own personal opinions and
evaluations.
Brand feelings are customers’ emotional responses and reactions
with respect to the brand.
Brand resonance describes the relationship customers have with
the brand and the extent to which they feel they’re “in sync” with it.
 Building Brand Equity
• Brand equity drivers
Brand element or identity choices

Product & accompanying marketing

Other associations

Brand elements are devices, which can be trademarked, that identify and
differentiate the brand. Most strong brands employ multiple brand elements. Nike
has the distinctive “swoosh” logo, the empowering “Just Do It” slogan, and the
“Nike” name from the Greek winged goddess of victory.
 Building Brand Equity
There are six criteria for choosing brand elements. The first three—memorable,
meaningful, and likable—are brand building. The latter three—transferable,
adaptable, and protectable—are defensive and help leverage and preserve brand
equity
Brandagainst challenges.
element choice criteria

Memorable Meaningful

Protectable Likable

Adaptable Transferable
 Designing Holistic Marketing
Activities
• Brand contact
– Any information-bearing experience (positive
or negative) a customer or prospect has with
the brand, its product category, or its market
Brands are not built by advertising alone. Customers come to know a brand through
a range of contacts and touch points: personal observation and use, word of mouth,
interactions with company personnel, online or telephone experiences, and
payment transactions.

Integrated marketing is about mixing and matching marketing activities to maximize

their individual and collective effects.

Marketers need a variety of different marketing activities that consistently reinforce

the brand promise.
 Leveraging
Secondary Associations
 INTERNAL BRANDING
• Activities and processes that help
inform/inspire employees about brands
Choose the right Link internal & external
moment marketing

Bring the brand alive for

Keep it simple
employees

Marketers must now “walk the walk” to deliver the brand promise. They must
adopt an internal perspective to be sure employees and marketing partners
appreciate and understand basic branding notions and how they can help—or hurt
—brand equity.
 Measuring Brand Equity
• Brand value chain
 Measuring Brand Equity
• Brand audit
• Brand-tracking studies
• Brand valuation
A brand audit is a focused series of procedures to assess the health of the brand,
uncover its sources of brand equity, and suggest ways to improve and leverage its
equity.

Brand-tracking studies use the brand audit as input to collect quantitative data
from consumers over time, providing consistent, baseline information about how
brands and marketing programs are performing. Tracking studies help us
understand where, how much, and in what ways brand value is being created to
facilitate day-to-day decision making.

Marketers should distinguish brand equity from brand valuation, which is the job of
estimating the total financial value of the brand.
Measuring Brand Equity
 Figure 11.7
Interbrand Brand Valuation Method
 Managing Brand Equity
• Brand reinforcement
– Requires the brand
always be moving
forward
• Brand revitalization
– Almost any kind
starts with the
product
 Devising a
Branding Strategy
Can develop new brand elements for
new product

Can apply some of existing brand

elements

Can use a combination of new &

existing brand elements
 Devising a
Branding Strategy
• Brand extension • Category extension
• Sub-brand • Brand line
• Parent brand • Brand mix
• Master/family brand • Branded variants
• Line extension • Licensed product
 Branding Decisions
• Alternative branding strategies

Individual or separate
family brand names

Corporate umbrella or company

brand name

Sub-brand name
 Branding Decisions
• House of brands
• A branded house
– Flagship product

The use of individual or separate family brand names has been referred to as a
“house of brands” strategy, whereas the use of an umbrella corporate or company
brand name is a “branded house” strategy. These two strategies represent two
ends of a continuum. A sub-brand strategy falls somewhere between, depending
on which component of the sub-brand receives more emphasis.

With a branded house strategy, it is often useful to have a well-defined flagship

product. A flagship product is one that best represents or embodies the brand as a
whole to consumers. It often is the first product by which the brand gained fame, a
widely accepted best-seller, or a highly admired or award-winning product.
 Brand Portfolios
• The set of all brands and brand lines a particular firm
offers for sale in a particular category or market
segment

Flankers Cash cows

Low-end entry level High-end prestige

A brand can be stretched only so far, and all the segments the firm would like to
target may not view the same brand equally favorably. Marketers often need
multiple brands in order to pursue these multiple segments. The hallmark of an
optimal brand portfolio is the ability of each brand in it to maximize equity in
combination with all the other brands in it. Brands can also play a number of
specific roles as part of a portfolio.

Flanker or fighter brands are positioned with respect to competitors’ brands so

that more important (and more profitable) flagship brands can retain their
desired positioning.

Some brands may be kept around despite dwindling sales because they
manage to maintain their profitability with virtually no marketing support.
Companies can effectively milk these “cash cow” brands by capitalizing on their
reservoir of brand equity.

The role of a relatively low-priced brand in the portfolio often may be to attract
customers to the brand franchise. Retailers like to feature these “traffic builders”
because they are able to trade up customers to a higher-priced brand.

The role of a relatively high-priced brand often is to add prestige and credibility
to the entire portfolio.
 Brand Extensions
• Introducing a host of new products under a
firm’s strongest brand names

 Improved odds of new-product success

 Positive feedback effects
 Risk of brand dilution
 May harm parent brand
 Firm forgoes creating new brand
Most new products are in fact brand extensions—typically 80 percent to
90 percent in any one year. Moreover, many of the most successful new
products, as rated by various sources, are brand extensions. Two main
advantages of brand extensions are that they can facilitate new-product
acceptance and provide positive feedback to the parent brand and
company.

On the downside, line extensions may cause the brand name to be less
strongly identified with any one product. Brand dilution occurs when
consumers no longer associate a brand with a specific or highly similar
set of products and start thinking less of the brand. The worst possible
scenario is for an extension not only to fail, but to harm the parent brand
in the process. One easily overlooked disadvantage of brand extensions
is that the firm forgoes the chance to create a new brand with its own
unique image and equity.
Brand Extensions
Marketers must judge each potential brand
extension by how effectively it leverages existing
brand equity from the parent brand as well as
how effectively, in turn, it contributes to the
parent brand’s equity.

Marketers should ask a number of questions in

judging the potential success of an extension. To
help answer these questions, Table 11.3 offers a
sample scorecard with specific weights and
dimensions that users can adjust for each
application.
 CUSTOMER EQUITY
• The sum of lifetime
values of all customers
• Is affected by customer
acquisition, retention, and
cross-selling
We can relate brand equity to one other important marketing concept: customer
equity. The aim of customer relationship management (CRM) is to produce high
customer equity.

Customer lifetime value is affected by revenue and by the costs of customer

acquisition, retention, and cross-selling.

Acquisition depends on the number of prospects, the acquisition probability of a

prospect, and acquisition spending per prospect.

Retention is influenced by the retention rate and retention spending level.

Add-on spending is a function of the efficiency of add-on selling, the number of

add-on selling offers given to existing customers, and the response rate to new
offers.

Both brand equity and customer equity matter. There are no brands without
customers and no customers without brands. Brands serve as the “bait” that
retailers and other channel intermediaries use to attract customers from whom
they extract value. Customers are the tangible profit engine for brands to
monetize their brand value.