MRKT 401 Marketing for Small and Medium Enterprises Prepared by Dr. Ahmad Al-Fadly Marketing for Small and Medium Enterprises Chapter (7) Building and Sustaining the Entrepreneurial Brand Introduction In this chapter we will discuss: 1. What a brand is? 2. Why branding is important? 3. What is the characteristics of a good brand? 4. What is the branding process? 5. What is the branding strategies? 6. What is the concept of brand equity? What is a Brand? Brand: The use of words, designs, and symbols to give a product a distinct identity and to differentiate it from competitive products. Why is Entrepreneurial branding important? Differentiate your venture/ integrative tool/ acquiring customers/ access to suppliers/ financial support for the venture. What are the Characteristics of a Good Brand? A good brand has the following qualities: • • • • • • • • • Effectively communicates the distinctive value you wish to offer the customer Is relevant to the customer Is memorable Reinforces intended positioning Is consistent and unifying Allows for the building of brand equity Enables you to command premium pricing Is easily understood Can be sustained over time What the Marketing Advantages of Strong Brands? • Improved perceptions of product performance • Greater loyalty • Less vulnerability to competitive marketing actions • Higher margins • More inelastic consumer response to price increases • More elastic consumer response to price decreases • Greater trade cooperation and support • Increased marketing communication effectiveness • Possible licensing opportunities • Additional brand extension opportunities The Entrepreneurial Branding Process There are five basic stages in the branding process: 1. Conduct brand analysis 2. Determine your brand positioning 3. Select a brand name and identity • Should suggest key product benefits ("Bug-Be-Gone") • Should be distinctive with a positive meaning ("Apple") • Should fit the company's/product's image ("Best Buy") • Should have no legal or regulatory restrictions (keep in mind the availability of domain names) • Should be easy to pronounce and remember • Should have emotional appeal ("Race for the Cure") • Should translate easily and well into key foreign languages (Chevy "Nova") The Entrepreneurial Branding Process 4. Select a branding strategy • Corporate Branding (The Branded House) • Hybrid Branding (Sub Branding) • Individual Product/Service Branding (House of Brands) 5. Construct a brand communications strategy What is the other branding options for the venture? • Private Branding • Mixed Branding The Importance of Brand Equity What is a Brand Equity? It is the value added by the brand to the product What is the importance of Brand Equity? 1. Increased Sales 2. Higher Profits 3. More Influence Creating Brand Equity: Brand equity arises from a sequential building process consisting of four steps: 1. The first step is to develop positive brand awareness in the customers’ minds. 2. Then you must establish a brand’s meaning in the minds of customers. 3. The third step is to obtain the proper customer response to the brand. 4. The final step and most difficult one is to create a customer brand resonance.
