Transcript Chapter #3.ppt

Brands and Stakeholder Relationships
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Chapter Outline
 What does “brand” mean?
 How are brands created and
maintained?
 How are brand relationships created
and maintained?
 What is brand equity and how is it
created?
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Chapter Perspective: Changing World
Traditional
Product Focus
Brand-Focus
Create Customers
Building Brand
Relationships With
Customers
Reward: Sales
Reward: More Sales
and Profits
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Opening Case: Siegel & Gale
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Opening Case: Siegel & Gale
Challenge:
Answer:
Results:
Repositioning Caterpillar
IMC program developed by Siegel &
Gale featuring:
•New focus on benefits to customers in:
•Advertising
•Brochures and newsletters
•Sale presentations
• Caterpillar sales stabilized and grew
• Company culture began to change to
fit new identity
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What Does “Brand” Mean?
Brand: A perception resulting
from experiences with, and
information about, a company or
line of products
Branding: The process of creating
a brand image that engages the
hearts and minds of customers
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What Does “Brand” Mean?
Differentiates a Product From Its
Competitors
What a
Brand
Does
Makes a Promise to Consumers
Serves As the Driving, Unifying
Force Directing All Functional
Areas, Including IMC
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Tales From the Real World
There is an tendency to think of most brands
in terms of tangible product categories like soft
drinks or breakfast cereal.
However, in the real world, there are many
intangible brands. One example is the fact that
every four years professionals from major MC
agencies are enlisted in the U.S. presidential
election campaigns—to help “brand” one of the
candidates.
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Each of These Colleges Represents a Brand Image
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Think About It
Brands
Should colleges oversee and control the
working conditions under which their
licensed apparel is created?
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Brands are often represented by logos
Logos: Distinctive graphic designs
used to communicate a product,
company, or organization identity
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The Power of a Brand
Identical cereals tasted by consumers:
Vs.
59% Chose
Kellogg’s
41% Chose
No Brand
Identical TV sets examined by consumers:
Vs.
Consumers willing to pay $75 more for Hitachi than GE
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Retailers are creating their own brands
Store Brands (a.k.a. house
brand or private label):
A brand used exclusively by one
chain of stores for a line of
products made to a store’s
specification
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Brand Characteristics
• Tangible
–
–
–
–
–
–
Design
Performance
Ingredients/components
Size/Shape
Price
Marketing
Communications
• Intangible
– Value
– Brand Image
– Image of stores where
sold
– Perceptions of users of
the brand
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Transform Products
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How Are Brands Created?
Determining the
Desired Brand Position
3 Key
Steps
Developing Brand Identification
Creating Brand Image
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Figure 3-1: Determining the Desired Brand Position
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• Category Positioning
– Preemptive positioning
– Commodity products
• Image Positioning
• Unique Product Feature Positioning
• Benefit Positioning
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IMC In Action: Dr. Scholl’s
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IMC In Action: Dr. Scholl’s
Challenge:
Revitalize Dr. Scholl’s brand
An IMC program featuring:
Answer:
• Revamped, more fashionable product
line
product
line
• Product placement on Sex and the City
• New distribution in shoe stores
Results:
Some Dr. Scholl’s shoes now
sell for $169
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Monster.Com Is a Distinctive Brand Name
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Examples of Well Known Brand Logos
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Craftsman Is a Legally Protected Trademark of Sears
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The Marines Have Developed a “Tough” Image
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Insight: Stakeholder Overlap
Organizations must assume that multiple
stakeholder groups may be exposed to brand
messages. In other words, stakeholders
overlap. For example an IMC audit for a bank
found that 95 percent of the bank’s employees
were also bank customers and that 75 percent
owned shares of the bank’s stock. Marketers
must make sure that brand messages are
acceptable to all stakeholders and that the
presentation of the brand image and position is
consistent for all of these groups.
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Aspects Fostered by the Company
Consistency
Accessibility
Relationship
Aspects
Commitment
Responsiveness
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Aspects Arising from the Consumer
Relationship
Aspects
Trust
Liking
Satisfaction
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Maintaining Relationships Is Critical
Existing Brands Account for Most of the Brand
Communication With Consumers
Selling to Existing Customers Is Much Less Costly
Than Attracting New Customers
Current Heavy Users Typically Account for Most of
a Brand’s Revenue
Loyal Word of Mouth Advocates Can Be Highly
Persuasive With Other Consumers
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Maintaining relationships is critical
Customer Relationship
Management (CRM): The
optimization of all customer contacts
through the distribution and
application of customer information.
Simply stated, it is your promise, that
no matter how your customers interact
with you, you will always recognize
who they are
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Figure 3-5: Relative Importance of Different
Stakeholder Groups
+
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What Is Brand Equity and How Is It Created?
Brand equity: The intangible value
of a company beyond its physical net
assets
Broadening distribution
4 Ways of
Leveraging
Brand extensions
Co-branding
Brand licensing
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Final Note:
One of IMC’s most important
contributions:
• Helping to build trust in brands…
• …therefore enhancing consumer
relationships
• Reason: An organization’s
communication with its
stakeholders influences everything else
it does
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Questions - 3
 What is a Brand, More than a Product?
 Define Brand Equity, Relation to Brand
Relationship?



Brand Position?

Brand Extension? Contribution to IMC from a IMC
Perspective?

Multi-Tier, Co-Branding, Ingredient Branding
Differ?
Perceptual Map of Three Universities?
Characteristics of Successful Brand relationship
Program?
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