CH9 Brand and Branding
One of the most valuable intangible assets of a firm is its brands, Building a strong brand is both an art and a science. It requires careful planning, a deep long-term commitment. A strong brand commands intense consumer loyalty—at its heart is a great product or service. In this chapter, we focus on building brand equity and the benefits we derive from brand equity. What is a Brand?
A brand is 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.
What is Branding?
How do you “brand” a product?
Branding is endowing products and services with the power of a brand. It’s all about creating differences between products.
Marketers need to teach consumers “who” the product is—by giving it a name and other brand elements to identify it—as well as what the product does and why consumers should care. Branding creates mental structures that help consumers organize their knowledge about products and services in a way that clarifies their decision making .
What is Brand Equity?
Brand equity is the added value endowed on products and services. It may be reflected in the way consumers think, feel, and act with respect to the brand, as well as in the prices, market share, and profitability the brand commands. Marketers and researchers use various perspectives to study brand equity. Customer-based approaches view it from the perspective of the consumer. the power of a brand lies in what customers have seen, read, heard, learned, thought, and felt about the brand over time. A brand has positive customer-based brand equity when consumers react more favorably to a product and the way it is marketed when the brand is identified, than when it is not identified. A brand has negative customer-based brand equity if consumers react less favorably to marketing activity for the ingredients of customer-based brand equity.
Advantages of Strong Brands
•Improved perceptions of product performance
Branding objective at each stage4. RELATIONSHIPS = What about you and me? 3. RESPONSE =What about you? 2. MEANING = What are you? 1. IDENTITY = Who are you?
| Stages of brand development6-INTENSE, ACTIVE LOYALTY 5-RATIONAL & EMOTIONAL REACTIONS 4-POINTS-OF-PARITY & 3-POINTS-OF-DIFFERENCE 2-DEEP, BROAD 1-BRAND AWARENESS
| •Less attention to competitive marketing actions
•Less vulnerability attention to crises
•Increased marketing communications effectiveness
•Possible licensing opportunities
Brand Building Blocks
Customer-Based Brand Equity Model
* Brand Resonance
* Consumer Judgments
* Consumer Feelings
* Brand Performance
* Brand Imagery
* Brand Salience
It is the assessment of the brands ability to be retrieved by customers in a purchase situation Depth of brand awareness
* Ease of recognition and recall
* strength and clarity of category membership
How well the product or service meets customers’ more functional needs * Primary characteristics and supplementary features
* Product reliability, durability, and serviceability
* Service effectiveness, efficiency, and empathy
* Style and design
The way in which the brand attemtpts to meet customers’ psychological or social needs •User profiles: Demographic and psychographic characteristics •Purchase and usage situations: Time (day, week, month, year, etc.), location, and context of usage •Personality and values –Sincerity, excitement
Customers’ personal opinions about the evaluations of the brand Brand quality
* Expertise -Trustworthiness -Likeability...
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