Lecture 9.pdf

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What Is a Product? What are the different levels of market segmentation? In what ways can a company divide a market into segments? What are the requirements for effective segmentation? How should business markets be segmented? How should a company choose the most attractive target markets?

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What is a Brand and how Branding works? What is Brand Equity? How is Brand Equity build, measured and managed? What are the important brand architecture decisions in building a branding strategy?

“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.”

Plan

Measure/ Interpret

Identify Grow

• Identify source/maker Consumer Benefits

• Simplifies decision making • Reduces risk • Simplify product handling

Marketer Benefits

• Protect unique features • Create loyalty • Establish barriers to entry

Coca-Cola learned a valuable lesson about its brand when it changed its formula without seeking sufficient consumer permission.

Branding is endowing products and services with the power of a brand. Its about creating differences between products. Ultimately though, a brand resides in the minds of consumers.

The added value endowed on products and services because of the brand.

A Brand is a Promise !

What a brand must be ! What a brand does for the customer

Brand Asset Valuator Model

Brand Dynamics Pyramid

Brand Resonance Pyramid

Brand Elements

Brand Equity

Secondary Associations

Marketing Activities

Brand Elements } } } } } } } } } }

Brand Names URLs Logos Symbols Characters Spokespeople Slogans Jingles Packages Signage

What was the name of that cookie I like?

Memorable Meaningful Likable Easy to recall Descriptive Persuasive

Holistic Marketing Activities

Word of Mouth

Observation Interactions w/company

Secondary Associations

Geographic Regions Other Brands

Brand

Characters Spokespeople Sporting Events

H.O.G.® Harley Owners Group

Rank

Company Name

Brand Value ($Bil)

1

Apple

$170.0

2

Google

101.8

3

Microsoft

87.0

4

Facebook

73.5

5

Coca-Cola

56.4

6

Amazon

54.1

7

Disney

43.9

8

Toyota

41.1

9

McDonald's

40.3

10

Samsung

38.2

Brand Revitalization

Brand Reinforcement

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Develop new brands Apply existing brand elements Combine new and existing elements

Parent Brand

(Master or Family Brand)

Line Extension Tide - Fruit on the Bottom - Fruit Blends

Category Extension Honda - Automobiles - Lawn Mowers

Individual Brand Names • • • •

Bisquick Gold Medal Wheaties Yoplait

Company Brand Sub-brand name Kellogg’s Rice Krispies, Frosted Flakes…

GE, Heinz, Campbell Soup

A brand portfolio is the set of all brands and brand lines a particular firm offers for sale in a particular category or market segment.

Computer

Cameras

Televisions Theatre

VAIO -notebook -desktop

Cyber-shot

Televisions

Alpha SLR

Digital Home

HandyCam

Home theatre systems

Disc Burner

Printers

Location Free mylo Software

Digital picture frames Photo services

Blu-ray Disc DVD players Home audio components

Portable Electronics Walkman Video MP3 Rolly Reader Digital Book

Sony Pictures Movies -Theatre -DVD -Blue-ray

Sony Cell Phone

Television -Comedy -Drama -Daytime -Cartoons

GPS

Music

Games PlayStation -PS3 -PS2 -Portable

High-end Prestige Cash Cows

Low-end Entry Level

Flankers