1 - Introduction To Branding Flashcards
Brands
A name, term, sign, symbol, design or a combination of these intended to identify the goods and services of a seller/group of sellers and to differentiate them from those of competitors
Apple, Nike
Brands need to climb up the pyramid in order to build equity. Successful brands can build relationships with customers. While doing so, brands need to measure their success and this can be done through BAV.
Marketing philosophies
• Value = benefit over value. What customers give over what they give up
• It is about the customer. Branding needs to be outward focused and a long-term strategy.
Time/money, for product/ service
Brands create value and are customer focused to move up the pyramid.
Products vs. Brands
Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a need/want. It consists of attributes, features, functions and price.
Shoes vs. Nikes
Creating good products can improve brand performance, but good brands can move higher up the pyramid into brand resonance.
Product level meanings
• Core: basic need/ want to be fulfilled
• Generic: what allows the product to be classified into the category
• Expected: benefits that consumers expect
• Augmented: benefits that set the product apart
• Potential: possible product developments in future
Making calls, Smartphone, Design, Waterproof, 3D effects
Brands could improve brand performance by adding more expected and augmented benefits to their product, in order to set them apart. Can be PODs. Generic and expected benefits related to POPs.
History of branding
• First to show product source
• Later to show quality and be a differentiator
• Then consumers focused on created experiences
Cattle, detergent, Coca Cola
Brands can use their history and heritage to improve brand image, can appeal to consumers as brands have been around and successful for longer.
Importance of brands to firms
• Brands come at a cost, but customers will pay for a premium for their brand of choice.
• Guide consumer purchase decisions – purchases are often brand driven
• Strong brands enable higher margins
• Strong brands make it difficult for competitors
• Strong brands allow for more forgiving customers
• Strong brands allow for better employees
• Means of identification to simplify handling, legally protecting unique features, signal of quality, giving products unique associations
Coca Cola, Starbucks, Ribena, Yahoo
Strong brands allow it to climb up the pyramid. Brands increase the value of a product, by adding benefits and lowering costs. Signal of quality as consumer judgement. More forgiving customers and customers paying for premium shows loyalty and attachment to a brand. Brand crisis management.
Importance of brands to employees
Provide identity, community and opportunity. Employees feel good about themselves and the brand
Google, Pixar
Brand resonance as sense of community is created among employees. Consumers may feel excited by a brand that makes employees feel good.
Importance of brands to top management
Leadership/ motivational tool. The whole organisation needs to understand the importance of customer.
Google
Customer is the focus in marketing. All involved need to be aware of marketing throughout product life cycle.
Importance of brands to investors
Shape expectations of future returns
Apple
Improving brand equity, can be seen through BAV that assesses both strength and stature
Importance of brands to consumers
Consumers get to know a product better. Can assign responsibility if something goes wrong. Brands can reduce risks. They assure money is well spent, and consumers likely to be accepted into social groups.
Cadbury
They create value by reducing costs (risk) and show its customer focus. Brand crisis management. Improve brand salience, performance, imagery, response, feelings and resonance.
Branding challenges/ opportunities
• Savvy customers and media transformation
• More competition
• Economic downturns – hard to increase brand initiatives
• Greater accountability – triple bottom line
Volkswagen, Dove, Coca-Cola, Toms
Brands positioning themselves better according to target customers, competition, POPs, and PODs. Brand crisis management. IMC with online media. Managing brands over time. Cause related marketing.
