Ways of value creation

Destination
Brand

CREATE BRAND MARKET

WAYS OF VALUE
Building
CREATION…. long term
competitive
By
advantage
Sachin Bansal

www.creatingdemand.org Copyright 2012-2013 Presentation by: Sachin Bansal

Ways of Value Creation Destination Branding

What is a Brand ?

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.



What is a Destination Brand ?

Creation of unique image of a
particular tourist destination.



Brand Strategic Insight

Balancing the strategic aims of stakeholders and
increasing total economic benefits are the most important
objectives of the strategic marketing of a destination.
•  Savvy consumers
•  Increased competition
•  Decreased effectiveness of traditional marketing tools
•  An emergence of new marketing tools
•  Complex brand and product portfolios



New Destination Brand Challenges

Brands are important as ever
  Consumer need for simplification
  Consumer need for risk reduction

Involvement of a great number of different
organizations in creation and marketing of
tourism products of a tourist destination
makes it difficult to align their different
interests and aims.



The Challenge

In this difficult environment, marketers must
have a keen understanding of:

  Customers
  Brands
  The relationship between the two

Advancement of attraction and unique image of a
destination.

Marketing strategies of a tourist destination demand a
change in its definition and understanding.



Brand Equity
The brand equity concept stresses the
importance of the brand in marketing strategies.
Brand equity is defined in terms of the marketing
effects uniquely attributable to the brand.

Brand equity relates to the fact that different
outcomes result in the marketing of a
product or service because of its brand
name, as compared to if the same product or
service did not have that name.



Customer Based Brand Equity

  Concepts

  Differential effect
  Customer brand knowledge
  Customer response to brand marketing

  Determinants

  Customer is aware of and familiar with the brand
  Customer holds some strong, favorable, and
unique brand associations in memory

Strategic actions should integrate the wishes of
consumers and all the participants in value creation



Building Customer Based Brand Equity
Brand knowledge structures depend on
•  The initial choices for the brand elements
•  The supporting marketing program and the manner by which the brand is
integrated into it.
•  Other associations indirectly transferred to the brand by linking it to some
other entities

Ensuring rational utilization of public assets
(mountains, seas, rivers) and adhering principles
of sustainable tourism



Benefits of Customer-Based Brand Equity

  Enjoy greater brand loyalty, usage, and affinity
  Command larger price premiums
  Receive greater trade cooperation & support
  Increase marketing communication effectiveness
  Yield licensing opportunities
  Support brand extensions.

Tourists perceive a destination as a brand
composed of numerous products and
services.



Customer-Based Brand Equity as a “Bridge”

Customer-based brand equity represents the “added
value” endowed to a product as a result of past
investments in the marketing of a brand.

Customer-based brand equity provides direction and
focus to future marketing activities



The Key to Branding
  For branding strategies to be successful, consumers
must be convinced that there are meaningful
differences among brands in the product or service
category.

  Consumer must not think that all brands in the category
are the same.

  PERCEPTION = VALUE

If consumer perception of a destination
creates delight, consumers are ready to
pay premium price.



Strategic Brand Management

  Strategic brand management involves the design and
implementation of marketing programs and activities
to build, measure, and manage brand equity.
  The strategic brand management process is defined
as involving four main steps:
1) Identifying and establishing brand positioning and values
2) Planning and implementing brand marketing programs
3) Measuring and interpreting brand performance
4) Growing and sustaining brand equity

COMPETITIVENESS ADVANCEMENT
OF A TOURIST DESTINATION



Customer Based Brand Equity Model

Motivation

Marketers know strong brands are important but aren’t always sure how to build
one.

Comprehensive
  cohesive
  well-grounded
  up-to-date
  actionable
identification of the type and characteristics of the
destination, identification of the life cycle phase of the
destination, selection and choice of the target market


Customer Based Brand Equity Model
Rationale
Basic premise: Power of a brand resides in the minds of customers

Challenge is to ensure customers have the right types of experiences with
products & services and their marketing programs to create the right Brand
knowledge structures:

  Thoughts
  Feelings Image represents an important
  Images distinctive capability of a destination.
  Perceptions
  Attitudes


Building Customer Based Brand Equity

Building a strong brand involves a series of steps as part of a “Branding Ladder”

A strong brand is also characterized by a logically constructed set of brand “building
blocks.”
  Identifies areas of strength and weakness
  Provides guidance to marketing activities

Respectable image ensure the creation of
satisfaction and loyalty of tourists, broadening of
positive attitudes and attracting new ones, the
possibility of reaching premium price, creation of
satisfaction and loyalty of employees, favorable
assessment by financial institutions, etc.



Salience Dimensions

 Depth of Brand Awareness
Ease of recognition & recall
Strength & clarity of category membership

 Breadth of Brand Awareness
Purchase consideration
Consumption consideration



Performance Dimensions

  Primary characteristics & supplementary features
  Product reliability, durability, and serviceability
  Service effectiveness, efficiency, and empathy
  Style and design
  Price

The degree of tourist satisfaction is the most
important result of recognizable and unique image
of a destination.



Imagery Dimensions
  User profiles
  Demographic & psychographic characteristics
  Actual or aspirational
  Group perceptions -- popularity
  Purchase & usage situations
  Type of channel, specific stores, ease of purchase
  Time (day, week, month, year, etc.), location, and
context of usage
  Personality & values
  Sincerity, excitement, competence, sophistication, &
ruggedness
  History, heritage, & experiences
  Nostalgia
  Memories



Judgment Dimensions

  Brand quality
  Value
  Satisfaction
  Brand credibility
  Expertise
  Trustworthiness
  Likability
  Brand consideration
  Relevance
  Brand superiority
  Differentiation



Resonance Dimensions

  Behavioral loyalty
  Frequency and amount of repeat purchases

  Attitudinal attachment
  Love brand (favorite possessions; “a little pleasure”)
  Proud of brand

  Sense of community
  Kinship
  Affiliation

  Active engagement
  Seek information
  Join club
  Visit web site, chat rooms



Brand Positioning

  Define competitive frame of reference
  Target market
  Nature of competition

  Define desired brand knowledge structures
  Points-of-parity
  necessary
  competitive

  Points-of-difference
  strong, favorable, and unique brand
associations



Establishing Category Membership

  Desirability criteria (consumer perspective)
  Personally relevant
  Distinctive & superior
  Believable & credible

  Deliverability criteria (firm perspective)
  Feasible
  Profitable
  Pre-emptive, defensible & difficult to attack

Mistaken assumptions about consumer knowledge…



Strategies to Reconcile, Attribute & Benefit Trade oﬀ’s
  Establish separate marketing programs

  Leverage secondary association (e.g. Co-brand)

  Re-define the relationship from negative to positive

Facilitate the understanding of the evolution of tourist
products and destinations and to provide guidance for
strategic decision making. Competitive advantage of a
certain tourist destination based on comparative advantage
is increasingly less sustainable.



What makes an Ad Eﬀective ?
  Effective ads work on two levels: with consumers
and with advertisers

  Characteristics of effective ads:
  Creativity
  Strategy
  Execution
  Advertising must be goal directed

Development of relationship marketing creates
the system in which added value is formed



Roles of Advertising
  Marketing role

  Communication role

  Economic role

  Societal role

From the perspective of customer-based brand
equity, marketers should evaluate all possible communication
options available to create knowledge structures according to
effectiveness criteria as well as cost considerations.



Current Advertising Issues
  Interactive advertising

  Globalization

  Niche marketing

  Integrated marketing communications (IMC)

  Consumer Power

  Social Media Channels

Campaigns make brands –

not single ads


How Brands Work
  Brand personalities

  Branding

  Trust

  Brand image

  Brand relationships

  Brand equity
Different communication options have different strengths and
can accomplish different objectives


Reputation to overall gains
Sachin Bansal
Strategically connected with clients, engaging and
involving them:

• How to get closer to customers?

• To build brand awareness and enhance loyalty?

• To position new products and services for the effective
market penetration?

• To fulfill what customers really desire?

Specialties

Brand Strategy, business entry & planning, product
Crafting, Operationalizing and
development, internet marketing, trade distribution, Implementing Growth
public private partnerships, sustainable tourism Strategies to maximize
management and investment promotion. opportunities in emerging
geographies;
experience as my strong
resource and capability


SACHIN BANSAL- Chief Explorer
INDIA : +91 97111 90192

sb@creatingdemand.org
www.creatingdemand.org
facebook.com/creatingdemand

DELHI LONDON MELBOURNE NEW YORK ITALY

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