Ana Alice Haddad – 15650 Caroline Braga – 15970 Cynira Altenfelder – 15656 Lohayne Porto – 13760 Manoela Gazze – 15666 Priscila Salomon – 14338 Rafaela Reis - 14339 1 2 1) WHAT IS A BRAND AND HOW DOES BRANDING WORK? 2) WHAT IS BRAND EQUITY? 3) HOW IS BRAND EQUITY BUILT, MEASURED, AND MANAGED? 4) WHAT ARE THE IMPORTANT DECISIONS IN DEVELOPING A BRANDING STRATEGY? 3 4 QUER PAGAR QUANTO? NÃO TEM PREÇO! AMO MUITO TUDO ISSO! 5 6 7 BRAND: name, term, sign, symbol, or design, or a combination of them intended to distinghish one product or service from another MAIN OBJECTIVE DIFERENTIATION DIFERENCES: – Product performance: functional, rational or tangible – Brand Image: symbolic, emotional or intangible EARLIEST SIGNS OF BRANDING: medieval guilds, artists signs in sculpture, painting 8 BRANDS: – Improve consumer’s lives and enhance final value of firms; CONSUMER’S CHOICE: – Satisfied buyers choose the product again; – Predictable and secutity demands; – Possibility of prime prices; 9 Example: 10 BRAND EQUITY – Is the added value endowed on products or services – Associated with the ability of a professional marketer to create, maintain, enhance and protect brands; CONSUMER-BASED BRAND EQUITY – The power of a brand lies is what consumers have seen, read, heard, thought and felt about the brand – The differential effect that brand knowledge has on consumer response • Positive: consumer react favorably when brand is identified • Negative: consumer react less favorably or do not identify the brand 11 Brand resides in the minds of consumers; “Who” the product is and what it does; Almost everything can become a brand: – – – – – – – Physical goods Services Store Person Place Idea Event 12 PHYSICAL GOODS SERVICES 13 STORE PERSON 14 PLACE IDEA – Bulling – Free trade – Abortion rights EVENT – SWU – Woodstock 15 INVESTMENTS $ X BRAND EQUITY – Quality is what matters, not quantity WHY DOES COMPANIES MAKE MISTAKES? – Marketers failed to atract consumer´s attention; – Company’s product failed to meet consumers’ needs and wants 16 There are some different perspectives about it. Kotler highlighted four of the more-established ones: – BRAND ASSET VALUATOR – BRANDZ – AAKER MODEL – BRAND RESSONANCE MODEL 17 STAGES OF BRANDING DEVELOPMENT 4. Relationships = BRAND BRAND BUILDING BLOCKS RESSONANCE Intense, active loyalty What about you and me? 3. Response = JUDGMENTS – FEELINGS What about you? 2. Meaning = What are you? BRANDING OBJETIVE AT EACH STAGE PERFORMANCE – IMAGERY 1. Identity = Who are you? SALIENCE Positive, accessible reactions Points-of-party & difference Deep, broad brand awareness 18 BRAND SALIENCE BRAND PERFORMANCE BRAND IMAGERY BRAND JUDGEMENTS BRAND FEELINGS BRAND RESSONANCE 19 BRAND EQUITY DRIVERS BRAND ELEMENTS CHOOSING BRAND ELEMENTS DEVELOPING BRAND ELEMENTS DESIGNING HOLISTIC MARKETING ACTIVITIES PERSONALIZATION INTEGRATION INTERNALIZATION 20 The Initial choices for the brand elements The wild and adventure man 21 The product and service They offer a “pós-vendas” service 22 Associations indirectly transferred to the brand XUXA 23 Trademarkable devices that identify and differentiate the brand Swoosh logo – Empowering slogan – Name based on the winged goddess of victory 24 Test of the brand building 25 Memorable – short names Meaningful – credible, suggestive 26 Likable – likable visually, verbally and other ways Transferable – Introduce new products, geographic boundaries, market segments 27 Adaptable – adaptable and updatable Protectible - legally protectible 28 Easy to regognize and recall Inherently descriptive Persuasive Intangible characteristics Slogan – useful hooks : “Gol, linhas aéreas” 29 Brands are not built by advertising alone NEW BRANDS CONTACTS: clubs and consumers communities, trade shows, event marketing, sponsorship, factory visits, public relations and press release, social media 30 EXPANSION OF INTERNET Make sure the brand and its marketing are as relevant as possible to as many customers as possible 31 Mixing and matching marketing activities to maximize their individual and collective effects IDENTITY X IMAGE 32 INTERNAL BRANDING BRAND BONDING B2E 33 OTHER BRANDS PEOPLE BRAND PLACES THINGS 34 BRAND VALUE CHAIN Marketing Program Investment Customer Mind-Set Brand Performance Shareholder Value 35 BRAND VALUE CHAIN 36 1) Measuring Brand Equity 2) Measuring the value of the brand as a financial asset Brand Equity 120 100 80 60 Brand Equity 40 20 0 1 2 3 4 5 6 37 1) MEASURING BRAND EQUITY Qualitative and quantitative measures: • Statistics models • Perceived quality • Purchase intention • Willingness to recommend to a friend • Relevant Differentiation • Association • Awareness 38 39 2) FINANCIAL VALUE OF A BRAND Ability to generate future cash flow “From 1000 marketing executives, 66% ranked the accountability of marketing as their number-one concern.” Association of National Advertisers 40 41 0 1 2 3 4 5 EVA 0 1 2 3 4 5 EVA 10% price 100 future cash flow will occur 30% attributes 0 future cash flow won’t occur 0 1 2 3 4 5 EVA 42 43 Requirement long-term view of marketing actions Brand Positioning How do we want to be perceived and what’s our cmpetitive advantages? 44 BRAND REINFORCEMENT (1) What products the brand represents, what core benefits it supplies, and what needs it satisfies (2) How the brand makes products superior, and which strong, favorable, and unique brand associations should exist in the minds of consumers 45 BRANDING IN XXI CENTURY (Scott Bedbury, A new band world) 46 BRANDING IN XXI CENTURY (Scott Bedbury, A new band world) - Principles of branding Brand Principle # 1 Relying on brand awareness has become marketing fool’s gold Relevance & Resonance 47 BRANDING IN XXI CENTURY (Scott Bedbury, A new band world) - Principles of branding Brand Principle # 2 You have to know it before you can grow it 48 BRANDING IN XXI CENTURY (Scott Bedbury, A new band world) - Principles of branding Brand Principle # 3 Always remember the rule of brand expansion 49 BRANDING IN XXI CENTURY (Scott Bedbury, A new band world) - Principles of branding Brand Principle # 4 Excellent brands establish lasting relationships with customers 50 BRANDING IN XXI CENTURY (Scott Bedbury, A new band world) - Principles of branding Brand Principle # 5 Everything Matters 51 BRANDING IN XXI CENTURY (Scott Bedbury, A new band world) - Principles of branding Brand Principle # 6 All brands need good parents 52 BRANDING IN XXI CENTURY (Scott Bedbury, A new band world) - Principles of branding Brand Principle # 7 Big is not excuse to be bad 53 BRANDING IN XXI CENTURY (Scott Bedbury, A new band world) - Principles of branding Brand Principle # 8 Relevance, simplicity and humanity NOT TECHNOLOGY 54 55 Santa Claus has been reinvented by Coca-Cola 56 “Zynga, produtora de jogos sociais como FarmVille e Mafia Wars, passará a comercializar produtos da marca FarmVille em lojas de conveniência da rede 7-Eleven, em uma tentativa de conquistar o público jovem.” Source: Terra 57 BRAND REVITALIZATION Are positive associations losing their strength or uniqueness? Have negative associations become linked to the brand? 58 BRAND REVITALIZATION Natura - Changes Source: Central de Cases ESPM e EXAME 59 Market Segments Financial Analysis Demand Drives Competitive Benchmarking Intangible Earnings Role of Branding Brand Strength Brand Earnings Brand Value Brand Discount Rate 60 BRANDING STRATEGY: the number and nature of distinctive and common elements of the products it sells 61 62 BRAND EXTENSION: When a firm uses an established brand to introduce a new product 63 SUBBRAND: A combination of a new brand with an existing brand. PARENT BRAND or FAMILY BRAND: The brand that gives birth to the extension. 64 BRAND EXTENSIONS: – Line extension “The parent brand covers a new product within a product category it already serves” 65 BRAND EXTENSIONS: – Category extension “The parent brand is used to enter a new product category it currently serves” 66 CATEGORY EXTENSIONS: 67 BRAND LINE – all products under a particular brand BRAND MIX – all brand lines a particular seller makes available to public BRAND VARIANTS – specific brand lines supplied to determined distribution channels LICENSED PRODUCT – Brand name licensed to other manufacturers to use the name of certain product. 68 BRANDING DECISIONS INDIVIDUAL NAMES Companies often use different brand names for different quality lines within the same product class. (I.E. Delta Airlines) 69 BRANDING DECISIONS BLANKET FAMILY NAMES To use the corporate name under the range of products A corporate branding strategy can lead to greater intangible value for the firm 70 BRANDING DECISIONS Separate family names for all products Often used when companies produce quite different products. 71 Corporate name combined with individual product names The company name legitimize and the individual name individualizes the new product 72 BRAND EXTENSIONS: ADVANTAGES X DISADVANTAGES ADVANTAGES Facilitate new product acceptance and provide positive feedback to the company and parent brand By setting up new expectations, extensions reduce risk Easier to convince retailers to stock and promote a product 73 BRAND EXTENSIONS: ADVANTAGES X DISADVANTAGES ADVANTAGES May reduce costs of introductory launch campaign Avoids expenditures of creating a new name, packaging and labeling. Customers who need a change can switch to a different product type 74 BRAND EXTENSIONS: ADVANTAGES X DISADVANTAGES DISADVANTAGES The brand risks losing its identity for one specific product – Brand dilution Retailers reject many products for space matters. Worst scenario: The extension fails and harms the image of the parent brand. Cannibal effect 75 Multiple brands multiple segments Increasing shelf presence and retailer dependence in the store Attracting consumers seeking variety who may otherwise have switched to another brand Increasing internal competition within the firm Yielding economies of scale in advertising, sales, merchandising, and physical distribution 76 The brand portfolio is the set of all brands and brand lines a particular firm offers for sale in a particular category or market segment. 77 FLANKERS Fighter brands are positioned with respect to competitor's brands so that more important brands can retain their desired position. CASH COWS Some brands can still exist even if they don’t sell too much because they have a certain tradition. 78 LOW-END ENTRY LEVEL Low priced brand in a portfolio the role of this low priced produt is to attract customers to the brand franchise. HIGH-END PRESTIGE High priced brand in a portfolio - its role is to add prestige and credibility to the entire portfolio 79 “The sum of lifetime values of all customers” The aim of CRM is to produce high customer equity 80 Both emphasize the importance of customer loyalty and the notion that value is created by having as many customers as possible pay as high a price as possible. But they emphasize different things... 81 CUSTOMER EQUITY – focuses on bottom line financial value – limited guidance for go-to-market strategies – ignores some of the important advantages of creating a strong brand 82 BRAND EQUITY – tends to emphasize strategic issues in managing brands and creating and leveraging brand awareness and image with customers. – With a focus on brands, however, managers don't always develop detailed customer analyses 83 There are no brands without customers and no customers without brands. 84 1) WHAT IS A BRAND AND HOW DOES WORK? Brand is a sign, a term, a name, a symbol, a design or a combination of them, intended to differentiate a product or service from competitors. 85 2) WHAT IS BRAND EQUITY? Brand equity is the added value endowed on products or services. It’s related to the consumer’s reaction with respect to the brand and the ability of a professional marketer to create, maintain and enhance a brand. 86 3) HOW IS BRAND EQUITY BUILT, MEASURED, AND MANAGED? Brand Equity Built are crating the right brand knowledge structures with the right consumers. Brand names arent’ the only important brand element. Slogan are useful hooks. Brands are nor built by advertising alone. In order to manage the brand equity, companies need to measure it. Measuring brand equity means measuring how strong the brand is and how much the brand is worth. 87 Managing brand equity is a process related to the short-term and long-term view of marketing actions. Marketing actions, as a consequence, or essential to reinforce or revitalize the brand, and keep expanding and looking forward. 88 4) WHAT ARE THE IMPORTANT DECISIONS IN DEVELOPING A BRANDING STRATEGY? Whether to create a new name for a product and choose which brand names to use and whether to introduce a brand extension or not. 89 1. David A. Aaker. Measuring Brand Equity Across Products and Markets. California Management Review, 1996 2. Nitza Sasson and Idan Doron. Measuring Brand: The First Crucial Step Maximizing Value Equity 3. Brad VanAuken. The Blake Project. Disponível em: www.brandingstrategyinsider.com Acessado em: 16/10/10 4. Michaela Mora. Measuring Brand Equity Disponível em: www.relevantinsights.com Acessado em: 16/10/10 5. Jonathan Knowles, Wolff Olins. In Search of a Reliable Measure of Brand Equity. Disponível em: www.zibs.com Acessado em: 17/10/10 90 6. Interbrand Disponível em: www.interbrand.com Acessado em: 18/10/10 7. Marketing 3.0, Kotler, Editora Campus, São Paulo, 2010 8. http://www.cedet.com.br/index.php?/Tutoriais/Marketing/marcas-e-branding.html 9. http://www.hanover.com.br/press_release/press_cebit2010_19.htm 10. http://www.administradores.com.br/informe-se/artigos/se-a-marca-mappin-falidadesde-1999-vale-5-milhoes-quanto-vale-a-sua-marca/46484/ 11. http://www.portaldebranding.com/v1/?p=658 12. VIEGAS, A. H., "Estratégia de Branding: gestão da unificação de marcas", São Paulo, 2009. 91