Brand Building
PRODUCT VS BRAND
The Product Concept
Product
Place
Price
Promotion
• A component of the traditional
marketing four ‘P’s.
• Holds that consumers will favour
products that offer the most quality,
performance and features.
• Can be an idea, a good a service or a
combination
• Generally categorised into;
– Consumer products
– Business to Business products
The Product Concept
• Consumer feedback and information
informs the product benefits and
features to be offered, all the way
through to the more physical and
tangible aspects of product form and
packaging
Managing a Product for Profitability
• The rationale for managing and planning product portfolios for
different market segments
• Managing product profitability
The Product life Cycle
A graph showing the details of each phase in a product’s life cycle. (Source:
http://www.dineshbakshi.com/igcse-business-studies/marketing/revision-notes/814product-life-cycle)
BCG- Growth- Share Matrix
The BCG – Boston Consultancy Group guides on product line decisions. Source
http://www.learnmarketing.net/bcg.htm
BCG- Growth- Share Matrix- Discussion
• Stars - High Relative Market Share,
High Growth
• Cash Cows -High Relative Market
Share, Low Growth
• Dogs - Low Market Share, Low Growth
• Question Marks – Low Market Share,
High Growth
The BCG – Boston Consultancy Group guides on product line decisions. Source
http://www.learnmarketing.net/bcg.htm
Example- Six generations of iPod nano
Apple’s iPod nano is a perfect example of a product life
cycle from introduction through to decline. The product
never stagnates as it is continually being innovatively
updated. (Source:
http://appleinsider.com/articles/12/10/13/review-ipodnano-2012)
While the product life cycle consists of four stages
(introduction, growth, maturity, and decline), new product
development is the important precursor. Apple shows their
marketing skills in the introduction and maturity stages.
Product Differentiation
– A marketers effort to make a product more attractive by highlighting
its unique attributes and benefits with regards to other products in
the same category.
– If done well, this can create a significant competitive advantage for
the marketer, as consumers may view these products as unique or
superior, and therefore worth more than competitors’ products
Product differentiation plays an important role in turning a product into
a brand.
Product Differentiation
3 Categories;
• Perceptible differentiation
• Hidden differentiation
• Induced differentiation
Product Differentiation
Perceptible differentiation
• When the differences between products are readily apparent and
obvious to the consumer.
Product Differentiation
• Hidden differentiation
When differences are not so apparent .
Consumers cannot be expected so
marketing communication techniques are
necessary to make them aware, to help
them understand and so on.
Maybelline’s “Colorsensational” range is not evidently differentiated
from other lipsticks but nevertheless has qualities that others do not
(Source: http://theadvertisingeye.wordpress.com/2011/11/22/prettyflowers-and-makeup/)
Product Differentiation
Induced differentiation
• When there are no differences, that is, parity products, then “induced
differentiation” is used, where communication creates the idea that the product is
different by virtue of the brand messaging.
Product Vs Brand
• The best branding is essentially great product differentiation.
• Ultimately, what the marketer wants to achieve, through the
process of marketing, is to turn the product or service into a
brand.
• The reason for this is that a brand is a benefit delivery system
for consumers
What is a Brand
A trade mark with the following characteristics:
– tangible (product, packaging, price, name, design)
– intangible (personality, image)
– affects purchase decision
– differentiates goods and services
– represents own-able relationship between supplier and customer
• A brand is not made in a factory; it exists in the minds of consumers
Brand vs Branding
Brands = Meanings
– Brands must create value
• For customer
• For the company
“WIN-WIN”
Branding = Resource allocation
– Branding requires a Customer Orientation
– And doing what delivers value to consumers
Brand Equity Pyramid
High share
of wallet
Represents the overall
relationship between
consumers and a brand
The 5 levels indicate
hurdles consumers have to
get over before they move
up the Pyramid and are
finally bonded with a brand
Low share
of wallet
Source: Milward Brown
This is kind of like dating…
Bonding
Advantage
Performance
"Are we ready to be exclusive?"
The relationship is now very strong
"This is going well, but I should keep my options
open."
You see more and more of each other, a strong liking is
developing
"How does the first date go?"
For now, let's say your initial experience goes well
"Are we in the same league?"
Relevance
Presence
At first you are cautious – does this person really
appeal to you?
"Do you know I exist?"
Relationships start with awareness
Its ultimately about Customer Value
Instant recognition and identification
Consistent, reliable performance
Clear values, image, status, and
personality
WHY IS IT IMPORTANT TO BUILD YOUR BRAND?
Company Value
The ten most successful brands in the world in 2013.
Keep in mind that the value next to each brand is not the
worth of the company but rather just the value of the brand
name. (Source:
http://www.millwardbrown.com/BrandZ/Top_100_Global_Bran
x)
Shift in Competitive Advantage
Brands Shift the Demand Curve
Brand Command a Premium
BRAND POSITIONING
What is Brand Positioning
Positioning refers to ‘how organizations want their consumers to see their product’
• Positioning = Segmentation + Differentiation
• Slotting your product in the consumer’s mind.
– Who am I? Why buy me?
“Positioning starts with the product….But Positioning is not what you
do to the product. Positioning is what you do to the mind of the
prospect” - Ries and Trout
‘Positioning: The Battle for your Mind’ RIES & Trout
Brand Positioning
The Core Benefits of creating and articulating a clear and coherent Purpose, Vision and
Values via Brand Positioning are many..
Colgate
Is
Protection
LUX
Is
Glamour
Pond’s DFT
Is
Confidence
Positioning
AXE
Is
Sexual
Attraction
Gillette
Is
Quality
Importance of Brand Positioning
• Consumers are overloaded with information
about the products and services
• To make buying decisions simpler, consumers
organize and categorize i.e. Position products
and services in their minds.
• A products position is complex set of
perceptions, impressions and feelings that
consumer have for a product compared with
competing products.
Brand Positioning and the Consumer
• Consumers position the products with
or without the help from marketers
• But its risky to leave the products
positioning to chance…
• Hence, marketers plan a position that
will give the product the greatest
advantage, and design marketing
mixes to create these planned
positions.
Brand Positioning results in
The creation of a
CUSTOMER FOCUSED VALUE PROPOSITION
• A persuasive REASON WHY the target market should buy the product
Effective Brand Positioning
• Meaningful to consumers – Clarifies what the brand is about
• Credible/believable – Why customers should purchase and use the Brand
• Unique to your brand
• Durable over time
If a company decides to build a position it must
deliver that position and maintain it through
consistent performance and communication
Brand Positioning
Starts with…
•
A Competitive Frame of Reference
And then looks at
•
Points-of-Difference and Points-of-Parity
Brand Positioning Strategy
Competitive Advantage
Point of Difference
Point of Parity
Brand Positioning Statement
The outcome of the process of creating a value
proposition is a Positioning Statement:
For (Target consumers)
Who (have the following problem)
Our product is a (describe the product/solution)
That provides (cite the breakthrough capability)
Example:
To family oriented adult car owners concerned with safety,
Michelin Tires are the premium tires that can provide
greater peace of mind
Overall Brand Positioning Strategy
• Consumers want product and services that give them greatest value
• Hence, companies should position their brands on key benefits that
they offer relative to competing brands.
• The full positioning of a brand is called the brand’s Value Proposition –
the full mix of benefits upon which the brand is positioned.
BRAND MANAGEMENT
Brand management
Bottom up brand management
(maximize brand equity for
particular markets & products)
Top Down Brand Management
(Big picture branding synergizing
across products and markets)
Value of Brand to the consumer
Depends on:level of involvement of the
consumer
social demographics
Perceived risk by consumer
Economic risk-Price
Functional risk-performance
Experiential
Psychological-peace of mind
Social-social image
As Brand experts questions to pacify
consumers risk perception in brand
management & communication are:
Brand power-what are the
relationships/associations we can
use to influence consumers?
Endorsement? Association?
What level of quality is present in
the product or service?
What is the perceived positioning
& how do we address it or enforce
it?
Brand personality/imagery-what
typical buyer does the brand evokedo we want to capitalize on it or
change it?
Shift from Brand Image to Brand reputation Management
Brand
reputation
capital
Brand
Image
Brand Image VS Brand reputation capital
Emotional appeal
(Trust/admiration/respect)
Products & services
(Quality/innovativeness/value)
Vision & Leadership
Workplace quality
(employee talent/CRM)
Financial performance
Sustainable Social
responsibility
(Value-impact in community)
Image: Ukbrandstrategy.com
How does the brand create value for the consumer?
Essence of
Brand
• identification
• practicality
Reduce
perceived risk
• Guarantee
• Optimization
• Badge
Feel Good factor
• Continuity
• Hedonistic
• Ethical
Strategic implications of Brand management
Brand launches/building act as genetic programming
First actions of brand messaging leave deepest impression
& structure long term perception
Respect brand contract-brands become credible through persistence
& reputation of value proposition
Evolution of Brand Management
1. Reverse Brand building-transform specific clients into zealous Brand
ambassadors
BMW-Movie deals
Pernod Ricard-stage manage creating experiences in pubs around
product consumption & sampling
2. Strong 360 experience-creating brand universe in experiential spacesVirgin
3. Creating a human face to the brand-Corporate & Brand
4. From transactions to Relationships-Online & Offline
5. Brand management has become everyone’s responsibility
6. Growth of importance of communities –soccer & Barclays
7. Activating Brand at contact
8. Licensing & partnership with others
9. Co-Branding
THANK YOU