Branding for Recognition & Profit Dr. Tony L. Henthorne - PowerPoint PPT Presentation

Branding for Recognition & Profit Dr. Tony L. Henthorne Associate Dean University of Nevada, Las Vegas

Brand versus Product Brand Product Has dimensions that differentiate it in Anything available in the market for use some way from other products or consumption, that may satisfy a designed to satisfy the same need need or want Can be differentiated on the basis of: Can be categorized into five levels • Packaging namely: • Services provided • Core benefit level • Customer advice • Generic product level • Financing • Expected product level • Delivery arrangements • Augmented product level • Warehousing • Potential product level • Other things valued by the customers

Brand Elements • Different components that identify and differentiate a brand – Name, logo, symbol, package design, or other characteristic • Can be based on people, places, things, and abstract images

To Sum Up .... • Through branding, organizations: – Create perceived differences among products – Develop a loyal customer base – Create value that can translate to profits

Roles that Brands Play

Strong Brands • Are brands that have been market leaders in their categories for decades • But any brand is vulnerable and susceptible to poor brand management

Factors Responsible for Branding Challenges Savvy customers Economic downturns Brand proliferation Increased competition

Challenges to Brand Builders

Marketing Advantages of Strong Brands

Brand Image • More deeply a person thinks about Strength of Brand product information and relates it to existing brand knowledge, stronger is the Associations resulting brand association Favorability of • Is higher when a brand possesses relevant Brand attributes and benefits that satisfy Associations consumer needs and wants • “Unique selling proposition” of the Uniqueness of product Brand • Provides brands with sustainable Associations competitive advantage

To Sum Up... • To create brand equity, marketers should: – Create favorable consumer response (in other words: brand awareness) – Create positive brand image though brand associations that are strong, favorable, and unique

Identifying and Establishing Brand Positioning Basic Concepts Target Market Nature of Competition Points-of-Parity and Points-of- Difference

Basic Concepts • Brand positioning – Designing the company’s offer and image so that it occupies a distinct and valued place in the target customers’ minds – Finding the proper “location” in the minds of consumers or market segment – Allows consumers to think about a product or service in the “right” perspective

Target Market • Market segmentation : Divides the market into distinct groups of homogeneous consumers who have similar needs and consumer behavior • Involves identifying segmentation bases and criteria Measurable Accessible Substantial Responsive

Nature of Competition  Competitive analysis of direct competition  Competitive analysis of indirect competition

Points of Parity and Points of Difference  Points-of-difference associations  Points-of-parity associations  Points-of-parity versus points-of-difference

To Sum Up … • To appropriately position a brand, marketers should: – Identify their target customers – Analyze the type of competition they might face in the identified market base – Identify product features and associations that are different or similar to their competitors

Positioning Guidelines Defining & Communicating Competitive Frame of Reference Choosing Points-of-Difference Establishing Points-of-Parity and Points-of-Difference Straddle Positions Updating Position Overtime

To Sum Up ... • Brand positioning describes how a brand can effectively compete against a specified set of competitors • A good product positioning should: – Have a “foot in the present” and a “foot in the future” – Identify all relevant points-of-parity – Reflect a consumer point of view in terms of the benefits that consumers derive – Contain points-of-difference and points-of-parity that appeal both to the “head” and the “heart”

Possible Roles of Brands in the Brand Portfolio

Brand Portfolios: 3 Points Flankers Cash Cows Low-End, Entry-Level or High- End, Prestige Brands

Flankers • Protective or fighter brands – To create stronger points-of-equilibrium with competitors’ brands • Fighter brands must not be so attractive that they take sales away from their higher-priced comparison brands

Cash Cows • Despite dwindling sales, some brands are retained – Due to their sustainability without any kind of marketing • Milked by capitalizing on their reservoir of existing brand equity

Low-End, Entry-Level or High-End, Prestige Brands • Sub-brands leverage associations from other brands while distinguishing themselves on price or quality • Role of a relatively low-priced brand: To attract customers to the brand franchise • Role of a relatively high-priced brand: To add prestige and credibility to the entire portfolio

To Sum Up… • Successful brands need to have a “foot in the present” and a “foot in the future” • Of the many roles that brands can play in a product portfolio, two seem to be of most importance: – Flanker brands – Cash cows

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