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1、1.1,CHAPTER 1:BRANDS&BRAND MANAGEMENT,Kevin Lane KellerTuck School of BusinessDartmouth College,1.2,What is a brand?,For the American Marketing Association(AMA),a brand is a“name,term,sign,symbol,or design,or a combination of them,intended to identify the goods and services of one seller or group of
2、 sellers and to differentiate them from those of competition.”These different components of a brand that identify and differentiate it are brand elements.,1.3,What is a brand?,Many practicing managers refer to a brand as more than that as something that has actually created a certain amount of aware
3、ness,reputation,prominence,and so on in the marketplace.We can make a distinction between the AMA definition of a“brand”with a small b and the industrys concept of a“Brand”with a capital b.,1.4,Brands vs.Products,A product is anything we can offer to a market for attention,acquisition,use,or consump
4、tion that might satisfy a need or want.A product may be a physical good,a service,a retail outlet,a person,an organization,a place,or even an idea.,1.5,Five Levels of Meaning for a Product,The core benefit level is the fundamental need or want that consumers satisfy by consuming the product or servi
5、ce.The generic product level is a basic version of the product containing only those attributes or characteristics absolutely necessary for its functioning but with no distinguishing features.This is basically a stripped-down,no-frills version of the product that adequately performs the product func
6、tion.The expected product level is a set of attributes or characteristics that buyers normally expect and agree to when they purchase a product.The augmented product level includes additional product attributes,benefits,or related services that distinguish the product from competitors.The potential
7、product level includes all the augmentations and transformations that a product might ultimately undergo in the future.,1.6,A brand is therefore more than a product,as it can have dimensions that differentiate it in some way from other products designed to satisfy the same need.,1.7,Some brands crea
8、te competitive advantages with product performance;other brands create competitive advantages through non-product-related means.,1.8,Why do brands matter?,What functions do brands perform that make them so valuable to marketers?,1.9,Importance of Brands to Consumers,Identification of the source of t
9、he productAssignment of responsibility to product makerRisk reducerSearch cost reducerPromise,bond,or pact with product makerSymbolic deviceSignal of quality,1.10,Reducing the Risks in Product Decisions,Consumers may perceive many different types of risks in buying and consuming a product:Functional
10、 riskThe product does not perform up to expectations.Physical riskThe product poses a threat to the physical well-being or health of the user or others.Financial riskThe product is not worth the price paid.Social riskThe product results in embarrassment from others.Psychological riskThe product affe
11、cts the mental well-being of the user.Time riskThe failure of the product results in an opportunity cost of finding another satisfactory product.,1.11,Importance of Brands to Firms,To firms,brands represent enormously valuable pieces of legal property,capable of influencing consumer behavior,being b
12、ought and sold,and providing the security of sustained future revenues.,1.12,Importance of Brands to Firms,Identification to simplify handling or tracingLegally protecting unique featuresSignal of quality levelEndowing products with unique associationsSource of competitive advantageSource of financi
13、al returns,1.13,Can everything be branded?,Ultimately a brand is something that resides in the minds of consumers.The key to branding is that consumers perceive differences among brands in a product category.Even commodities can be branded:Coffee(Maxwell House),bath soap(Ivory),flour(Gold Medal),bee
14、r(Budweiser),salt(Morton),oatmeal(Quaker),pickles(Vlasic),bananas(Chiquita),chickens(Perdue),pineapples(Dole),and even water(Perrier),1.14,An Example of Branding a Commodity,De Beers Group added the phrase“A Diamond Is Forever”,1.15,What is branded?,Physical goodsServicesRetailers and distributorsOn
15、line products and servicesPeople and organizationsSports,arts,and entertainmentGeographic locationsIdeas and causes,1.16,Source of Brands Strength,“The real causes of enduring market leadership are vision and will.Enduring market leaders have a revolutionary and inspiring vision of the mass market,a
16、nd they exhibit an indomitable will to realize that vision.They persist under adversity,innovate relentlessly,commit financial resources,and leverage assets to realize their vision.”Gerald J.Tellis and Peter N.Golder,“First to Market,First to Fail?Real Causes of Enduring Market Leadership,”MIT Sloan
17、 Management Review,1 January 1996,1.17,Importance of Brand Management,The bottom line is that any brandno matter how strong at one point in timeis vulnerable,and susceptible to poor brand management.,What are the strongest brands?,1.19,Top Ten Global Brands,1.20,Branding Challenges and Opportunities
18、,Savvy customersBrand proliferationMedia fragmentationIncreased competitionIncreased costsGreater accountability,1.21,The Brand Equity Concept,No common viewpoint on how it should be conceptualized and measuredIt stresses the importance of brand role in marketing strategies.Brand equity is defined i
19、n terms of the marketing effects uniquely attributable to the brand.Brand equity relates to the fact that different outcomes result in the marketing of a product or service because of its brand name,as compared to if the same product or service did not have that name.,1.22,Strategic Brand Management
20、,It involves the design and implementation of marketing programs and activities to build,measure,and manage brand equity.The Strategic Brand Management Process is defined as involving four main steps:1.Identifying and establishing brand positioning and values2.Planning and implementing brand marketi
21、ng programs3.Measuring and interpreting brand performance4.Growing and sustaining brand equity,1.23,Strategic Brand Management Process,Mental mapsCompetitive frame of referencePoints-of-parity and points-of-differenceCore brand valuesBrand mantra,Mixing and matching of brand elementsIntegrating bran
22、d marketing activitiesLeveraging of secondary associations,Brand value chainBrand auditsBrand trackingBrand equity management system,Brand-product matrixBrand portfolios and hierarchiesBrand expansion strategiesBrand reinforcement and revitalization,Key Concepts,Steps,1.24,CHAPTER 2:CUSTOMER-BASED B
23、RAND EQUITY,Kevin Lane KellerTuck School of BusinessDartmouth College,1.25,Customer-Based Brand Equity,“The differential effect that brand knowledge has on consumer response to the marketing of that brand.”Keller,1993,1.26,Customer-Based Brand Equity,Differential effect Differences in consumer respo
24、nse Brand knowledge A result of consumers knowledge about the brand Consumer response to marketing Choice of a brand Recall of copy points from an ad Response to a sales promotionEvaluations of a proposed brand extension,1.27,Brand Equity as a“Bridge”,Reflection of past investments in the marketing
25、of a brandDirection for future marketing actions or programs,1.28,Making a Brand Strong:Brand Knowledge,Brand knowledge is the key to creating brand equity.Brand knowledge consists of a brand node in memory with a variety of associations linked to it.Brand knowledge has two components:brand awarenes
26、s and brand image.,1.29,Sources of Brand Equity,Brand awarenessBrand recognitionBrand recallBrand image Strong,favorable,and unique brand associations,1.30,Brand Awareness Advantages,Learning advantagesRegister the brand in the minds of consumers Consideration advantagesLikelihood that the brand wil
27、l be a member of the consideration set Choice advantages Affect choices among brands in the consideration set,1.31,Establishing Brand Awareness,Increasing the familiarity of the brand through repeated exposure(for brand recognition)Forging strong associations with the appropriate product category or
28、 other relevant purchase or consumption cues(for brand recall),1.32,Creating a Positive Brand Image,Brand AssociationsDoes not matter which source of brand associationNeed to be favorable,strong,and uniqueMarketers should recognize the influence of these other sources of information by both managing
29、 them as well as possible and by adequately accounting for them in designing communication strategies.,1.33,The Four Steps of Brand Building,Ensure identification of the brand with customers and an association of the brand in customers mindsEstablish the totality of brand meaning in the minds of con
30、sumersElicit the proper customer responses to the brand identification and brand meaningConvert brand response to create an intense,active loyalty relationship between customers and the brand,1.34,Four Questions Customers ask of Brands,Who are you?(brand identity)What are you?(brand meaning)What abo
31、ut you?What do I think or feel about you?(brand responses)What about you and me?What kind of association and how much of a connection would I like to have with you?(brand relationships),1.35,1.36,1.37,Salience Dimensions,Depth of brand awarenessEase of recognition and recallStrength and clarity of c
32、ategory membershipBreadth of brand awarenessPurchase considerationConsumption consideration,1.38,Depth and Breadth Importance,The product category hierarchy shows us not only the depth of awareness matters but also the breadth.The brand must not only be top-of-mind and have sufficient“mind share,”bu
33、t it must also do so at the right times and places.,1.39,Product Category Structure,To fully understand brand recall,we need to appreciate product category structure,or how product categories are organized in memory.,1.40,Performance Dimensions,Primary characteristics and supplementary featuresProdu
34、ct reliability,durability,and serviceabilityService effectiveness,efficiency,and empathyStyle and designPrice,1.41,Imagery Dimensions,User profilesDemographic and psychographic characteristicsActual or aspirationalGroup perceptionspopularityPurchase and usage situationsType of channel,specific store
35、s,ease of purchaseTime(day,week,month,year,etc.),location,and context of usagePersonality and valuesSincerity,excitement,competence,sophistication,and ruggednessHistory,heritage,and experiencesNostalgiaMemories,1.42,Judgment Dimensions,Brand qualityValueSatisfactionBrand credibilityExpertiseTrustwor
36、thinessLikeability,Brand considerationRelevanceBrand superiorityDifferentiation,1.43,Feelings Dimensions,WarmthFunExcitementSecuritySocial ApprovalSelf-respect,1.44,Resonance Dimensions,Behavioral loyaltyFrequency and amount of repeat purchasesAttitudinal attachmentLove brand(favorite possessions;“a
37、 little pleasure”)Proud of brandSense of communityKinshipAffiliationActive engagementSeek informationJoin clubVisit website,chat rooms,1.45,1.46,Application:Identify the Key Drivers of Brand Equity,1.47,Brand Building Implications,Customers own brands.Dont take shortcuts with brands.Brands should ha
38、ve a duality.Brands should have richness.Brand resonance provides important focus.,1.48,Creating Customer Value,Customer-brand relationships are the foundation of brand resonance and building a strong brand.The customer-based brand equity model certainly puts that notion front and center.,1.49,Is a
39、company consumer-centric?,Is the company looking for ways to take care of you?Does the company know its customers well enough to differentiate between them?Is someone accountable for customers?Is the company managed for shareholder value?Is the company testing new customer offers and learning from t
40、he results?,Sources:Larry Selden and Geoffrey Colvin,2004.,1.50,Customer Relationship Management(CRM),Uses a companys data systems and applications to track consumer activity and manage customer interactions with the company,1.51,Customer Equity,Blattberg and Deighton(1996)offer eight guidelines as
41、a means of maximizing customer equity:Invest in highest-value customers firstTransform product management into customer managementConsider how add-on sales and cross-selling can increase customer equityLook for ways to reduce acquisition costsTrack customer equity gains and losses against marketing
42、programsRelate branding to customer equityMonitor the intrinsic retainability of your customerConsider writing separate marketing plansor even building two marketing organizationsfor acquisition and retention efforts,1.52,Customer Equity,The sum of lifetime values of all customersCustomer lifetime v
43、alue(CLV)is affected by revenue and by the cost of customer acquisition,retention,and cross-sellingConsists of three components:Value equityBrand equityRelationship equity Rust,Zeithamal&Lemon,2004,1.53,Relationship of Customer Equity to Brand Equity,Customers drive the success of brands but brands
44、are the necessary touchpoint that firms have to connect with their customers.Customer-based brand equity maintains that brands create value by eliciting differential customer response to marketing activities.The higher price premiums and increased levels of loyalty engendered by brands generate incr
45、emental cash flows.,1.54,CHAPTER 3:BRAND POSITIONING&VALUES,Kevin Lane KellerTuck School of BusinessDartmouth College,1.55,Brand Positioning,Is at the heart of the marketing strategy“.the act of designing the companys offer and image so that it occupies a distinct and valued place in the target cust
46、omers minds.”Philip Kotler,1.56,Determining a frame of reference,What are the ideal points-of-parity and points-of-difference brand associations vis-vis the competition?Marketers need to know:Who the target consumer isWho the main competitors are How the brand is similar to these competitors How the
47、 brand is different from them,1.57,Target Market,A market is the set of all actual and potential buyers who have sufficient interest in,income for,and access to a product.Market segmentation divides the market into distinct groups of homogeneous consumers who have similar needs and consumer behavior
48、,and who thus require similar marketing mixes.Market segmentation requires making tradeoffs between costs and benefits.,1.58,Example of the toothpaste market,Four main segments:Sensory:Seeking flavor and product appearanceSociables:Seeking brightness of teethWorriers:Seeking decay preventionIndepend
49、ent:Seeking low price,1.59,Criteria for Segmentation,Identifiability:Can we easily identify the segment?Size:Is there adequate sales potential in the segment?Accessibility:Are specialized distribution outlets and communication media available to reach the segment?Responsiveness:How favorably will th
50、e segment respond to a tailored marketing program?,1.60,Nature of Competition,Deciding to target a certain type of consumer often defines the nature of competition Do not define competition too narrowlyEx:a luxury good with a strong hedonic benefit like stereo equipment may compete as much with a va
