2. Chapter 8 Questions
• What is a brand and how does branding work?
• What is brand equity and how is it built, measured, and managed?
• What are the important decisions in developing a branding strategy?
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3. Steps in
Strategic Brand Management
• Identifying and establishing brand positioning
• Planning and implementing brand marketing
• Measuring and interpreting brand performance
• Growing and sustaining brand value
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4. What is a Brand?
• 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.
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5. The Role of Brands
• Identify the maker
• Simplify product handling
• Organize accounting
• Offer legal protection
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6. The Role of Brands
• Signify quality
• Create barriers to entry
• Serve as a competitive advantage
• Secure price premium
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7. What is Branding?
•Branding is endowing products
and services with the power of
the brand.
•Teaching customers “who”
the product is
•Tells customers what the
product does
•Reinforces why consumers
should care
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8. What is Brand Equity?
• Brand equity is the added value endowed on products and services, which
may be reflected in the way consumers, think, feel, and act with respect to
the brand.
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10. Advantages of Strong Brands
• Improved perceptions of product
performance
• Greater loyalty
• Less vulnerability to competitive
marketing actions
• Less vulnerability to crises
• Larger margins
• More inelastic consumer response
• Greater trade cooperation
• Increased marketing
communications effectiveness
• Possible licensing opportunities
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11. What is a Brand Promise?
• A brand promise is the marketer’s vision of what the brand must be and do
for consumers.
• What do you think the brand promise is for the retailers we discussed?
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13. Brand Asset Valuator
(BAV)
Strong New Brands: Higher in
Energized Differentiation, low
esteem and knowledge
Leadership Brands: High in all
categories
Declining Brands: High
Knowledge, low everything
else
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16. Building Brand Equity
1.Identify Brand Elements (Name, Logo, URL, etc) and identities that make up
the brand
2.The Product, Service, and All Marketing Activities and Marketing Programs
3. Other associations indirectly transferred to the brand (Figure 8.4 Page 119)
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17. Brand Elements
• Brand names
• Slogans
• Characters
• Symbols
• Logos
• URLs
• Social Media Presence
• Customer Service Strategy
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18. Brand Element Choice Criteria
• Building the Brand
• Memorable: Is the elements easily
recalled and recognized at
purchase and consumption (Tide)
• Meaningful: Is the element credible
and suggestive of the category?
Does it suggest something about
an ingredient or brand user?
(Diehard)
• Likable: Is the element appealing
and likable visually or in other
ways? (iPad)
• Defending a Brand
• Transferrable: Can the element
introduce new products in the
same category or other
category? (Amazon, Soap.com,
Wag.com, diapers.com)
• Adaptable: Can the element be
adapted and updated (Betty
Crocker image)
• Protectable: Is the element
legally and competitively
protected? Google
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21. Cult Brands: Building Equity
Without Promotions
http://www.youtube.com/watch?
v=ZUG9qYTJMsI&feature=playe
r_embedded#!
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22. Measuring Brand Equity
• Brand audits: A consumer focused series of procedures to asses the health of
the brand, uncover its sources of equity, and suggest ways to improve and
leverage it’s equity.
• Brand tracking: Qualitative Marketing Research that collects data from
consumers over time to provide baseline information on how brands and
marketing programs are performing
• Brand valuation: The actual financial value of a brand
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25. Branding Decisions
• Individual or Separate Family Brand Names: Individual names of brands
across multiple categories, even though the company that makes the
products are the same
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26. Branding Decisions
• Corporate Umbrella or Company Brand Name: Use one name across a variety
of products. Becoming very popular as a strategy of private label products.
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27. Branding Decisions
• Sub Brand Names: Combines corporate umbrella brands with individual or
family brands
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29. Brand Portfolios
• Flankers: Fighter brands are positioned alongside competitor brands so that
more important and more profitable flagship brands can retain their desire
positioning
• Cash cows: Still profitable without much marketing, dwindling sales, but still
profitable
• Low-end, entry-level: Attract customers to the brand franchise with lower
prices
• High-end prestige: Higher priced, adds prestige and credibility to overall
portfolio
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30. Brand Extensions
• Most products are Brand Extensions (80-90%) - as they create new demand
based on trends, customer tastes, without building the brand from scratch
each time a new product is launched.
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32. Chapter Questions
• How can a firm develop and establish an effective positioning?
• How are brands successfully differentiated?
• How do marketers identify and analyze competition?
• How can market leaders, challengers, followers, and nichers compete
effectively?
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33. Brand Positioning Statement
• Positioning: The act of designing a company’s offering and image to
occupy a distinctive place in the minds of the target market
• Positioning Statement or Value Propositions
• For (target audience), (brand name) is the (frame of reference) that
delivers (benefit/point of difference).
• Frame of Reference: The category the brand name competes in
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37. Defining Associations
• Points-of-difference: Attributes or benefits consumers strongly associate
with a brand, positively evaluate, and believe they could not find to the same
extent with a competitive brand
• Points-of-parity: Associations that are not necessarily unique to the brand
but may be shared with other brands
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38. Point-of-Difference Criteria for POD
• Desirable to Consumer: Consumers must see the brand association as
personally relevant to them
• Deliverable: The company must have resources to feasibly and
profitably create and maintain the brand association in the minds
• Ex: If Walmart promised great customer service
• Differentiating from Competitors: Consumers must see the brand
association as distinctive and superior to competitors
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49. Types of Defense Strategies - Market
Leaders
• Position Defense: Continuing to occupy the most desirable position
through marketing and continued innovation
• Flank Defense: Developing brand extensions to compete at lower price
points to try to meet attackers (Luv’s Diapers Vs Private Label)
• Preemptive Defense: Announce new products at a pace competitors
cannot keep up with
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50. Types of Defense Strategies Market Leaders
• Counteroffensive Defense: Lowering prices so competitors cant
compete, even at a loss, while gaining profits off other products
• Mobile Defense: Enters new territories or market diversifications
• Contraction Defense: Letting go, or sunsetting unprofitable products to
focus on more profitable ones
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51. General Attack Strategies - Challengers
• Frontal attack: Matches opponents product, price, and marketing (Usually
loses in retail)
• Flank attack: Targets underperforming geographic areas, or to serve
uncovered market needs
• Encirclement attack: Launching an attack in several areas at once, requires
great resources
• Bypass attack: Diversifying products, innovating, shifting messaging where
challenger has advantage
• Guerrilla warfare: Grassroots marketing efforts meant to surprise the market
leader
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56. Fragmented and
Diverse Markets
Customers exhibiting a
wider variety of:
Needs
Attitudes,
Behaviors,
Tastes, and Interests.
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57. The Need for Segmentation, Targeting, and Positioning
A move away from mass
marketing.
A move towards segment
marketing.
Allows marketers to focus
their resources on the most
promising opportunities.
Improves marketing efficiency
and effectiveness.
Enables marketers to notice
changes in the segment and
to respond more quickly.
57
58. Market Segmentation
Definition: the process of grouping customers within a
market according to similar needs, habits, or attitudes
that can be addressed through marketing.
Even within a large segment, marketers often can identify
niches.
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59. Steps in the Segmentation Process
1. Select the market:
Eliminate markets that
have no need for the
product or are
inappropriate for other
reasons.
2. Apply segmentation
variables.
3. Assess and select
segments for targeting.
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60. Step 1: Select the Market
For purposes of
segmentation, the overall
market may be defined on
the basis of:
The market definition,
Situational analysis,
SWOT analysis, and
Eliminate general markets
that have no need for your
offerings or are inappropriate
for other reasons.
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61. Step 2: Apply Segmentation Variables
Marketers can isolate groupings within consumer markets
using the following types of variables:
Behavioral and Attitudinal
Demographic
Geographic
Psychographic
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62. Type of Variable Examples
Behavioral and
Attitudinal
Benefits sought, rate of usage, attitude
toward product and usage, price
sensitivity.
Demographic
Age, gender, family status, household
size, income, occupation, education.
Geographic Location, distance, climate.
Psychographic Lifestyle, activities, interests.
4-8
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63. Consumers: Segmenting by Behaviors and Attitudes
In many ways, the best way
to segment:
Help marketers analyze the
specific value that a particular
group expects from the offering.
Include variables like:
Benefits required or expected
Usage occasion and status
Loyalty status
Technological orientation
Attitudes toward products or
usage
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64. Consumers: Segmenting by Demographics
Popular because they are
common and easily
identified.
Often point to meaningful
differences in:
Consumer needs and wants
Product consumption
Media usage
4-10
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65. Consumers: Segmenting by Geography
By certain areas or
climates.
Targeting promising new
markets.
Reluctance to sell in
certain areas due to
environmental threats or
unfavorable climate.
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66. Consumers: Segmenting by Psychographics
Lifestyles, activities, and
interests.
Provides a deeper
understanding of what
and why consumers buy.
When consumer activities
or interests cross
demographic and/or
geographic lines.
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67. Business Segmentation
Variables
Type of Variable Examples
Behavioral and
Attitudinal
Purchasing patterns and process, user
status, benefits expected, order size/
frequency, buyer/influencer/user attitudes.
Demographic Industry, business size, business age,
ownership structure.
Geographic Location, distance, climate.
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68. Businesses: Segmenting by Behaviors and Attitudes
Purchasing patterns
User status
Attitude toward
technology
Loyalty status
Price sensitivity
Order size/frequency
Attitudes
Benefits expected
68
69. Businesses: Segmenting by Demographics
Common business
demographic variables
used:
Industry
Business size
Business age
Ownership structure
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70. Businesses: Segmenting by Geography
Utilizes such variables as
nation, region, state, city,
and climate.
Allows for the grouping of
potential customers
according to:
Concentration of outlets
Location of headquarters
Geography-related needs or
responses
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71. Step 3: Assessing and Selecting Target Markets
Target Market: The
segment of the overall
market that a company
chooses to pursue.
Each potential segment
must be evaluated based
upon fit with the firm’s:
Resources
Goals
Mission
Priorities
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72. Assessing Segment
Attractiveness
Source: Graham Hooley, Nigel F. Piercy, and Brigitte Nicoulaud, Marketing Strategy and Competitive Positioning, 5th ed. (Harlow, England: FT Prentice Hall
2012), Fig. 10.3, p. 245.
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73. Segment Personas
Personas: Detailed but
fictitious profiles
representing how
individual customers in
their targeted segments
behave, live, and buy.
Give marketers a deeper
understanding of what
shapes each segment’s
needs, preferences,
buying behavior, and
consumption patterns.
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74. Next week
• October 1: No Class. Invited to hear Guest Speaker on Wednesday Night
(10.2)
• PNC Chief Marketing Officer Karen Larrimer
• Bring a few questions to ask for participation
• Guest Speaker October 2: Point Park University, Academic Hall, 601
• Written Assignment #3: Develop a positioning statement using the equation
developed in class. Show an example on the blog of how this brands
advertising supports this positioning.
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