Juanika Conner Professor Joseph Part II February 19, 2013
Brand The meaning of brand to me is the way a company sells their product. The way a brand sticks out to a consumer. I also think the brand has something to do with the overall product including the logo, slogan, etc. when you see a swoosh/check you automatically think of Nike. When you hear the slogan “we love to see you smile” you think of McDonald’s. These are strong brands and they stick and they also work. I think that the people who are advertising for the movie Monster U. They have a whole website catering to the movie. The website is like a real college website, everything that you would find on a real college they have on this website except in monster form. I found that you can purchase a sweatshirt and any school apparel they offer. I really like the way they used technology for this movie. I think they are targeting an older crowd than the typical elementary crowd they are known for targeting. Having a college website is a big step this says they may be targeting high school and college students. What a great way to advertise
T=r+d This is the equation that branding uses. The name of the equation is trust. I think it is a really good equation because it is what is earned from the consumers. The “T” in the equation represents Trust, the “r” in the equation is reliability and the “d” in the equation is delight. The definition of the equation is “trust comes from consistently meeting customers’ expectations and delighting them with the product, customer service and the emotional experiences involved. I can say Apple may be a good company for displaying this. When you walk into an Apple store there is always someone there to help you with something. If you don’t know anything about their product, there is someone there to educate you about that specific product. The persons in the store are very educated about the products in the store. Instead of having people who don’t know anything about what they are selling, the workers actually may have or do use the products outside of work. Why do brands matter? Brands can reduce risk in product decisions. To consumers they have to benefit from the product in some kind of way. The product has to be functional, is there going to harm to me? is the product worth the time and money? And is there a psychological gain with purchasing this product? Consumers have to have a good reason for purchasing something. Consumers have figured out which brands work and which ones don’t. Consumers try to develop bonds with companies, and their brands. This reduces brand searching and time out of searching and wasting on bad brands. I know if I am looking for a brand to follow I try them out and weigh my options. After I figure out what brand works for me and my pockets, I usually stick to that brand. I use to choose my brand because of the look and what I thought was hot at the time, but now it’s about
quality and price with being a college student. Some people choose brands because of celebrities and not because of quality. I feel that the people who choose brands because of celebrities are people who donâ€™t think about the price of if itâ€™s beneficial in the long run. Customer Based Brand Equity (CBBE) The definition of CBBE is the differential effect that brand knowledge has on consumer response to the marketing of that brand. In dummy terms the power a brand has lies in the minds of consumers based on what they have experienced (learned, felt, seen or heard) about the brand in past. The brand is only successful if the consumer thinks itâ€™s worthy to buy. Brand awareness and brand image is the bases of CBBE. I think brand awareness is very important because if the consumers can identify the logo or slogan without the name of the product then this causes brand awareness. 4 steps of brand building The four steps of brand building are identity, meaning, response and relationship are the building blocks of brand. Brand awareness is part of the identity. Brand performance and imagery is the meaning of the brand. Brand judgment and brand feelings are the responses to the brand. Brand resonance is the relationship part. Market segmentation Points of Parity & Points of Difference Points of Parity this is when the company has things the other companies have. Points of Difference this is the companies differences that makes to companies stand out from the competition.
Positioning Guidelines As there are 4 stages of building a brand, there are also 4 ingredients for brand positioning. The 4 ingredients include; •
Identifying the target market
Understanding the competition
Establishing the points of Difference
Establishing the Points of Parity
Again I feel that Apple has positioned themselves well and they continue to be on top of this. They are proving they are different then the competitors and that their competitors can’t copy what they are doing. Brand Mantras •
Zappos.com- Powered by Service
Nike- Authentic Athletic Performance
Disney- Fun Family Entertainment
I feel like these three companies have great brand mantras. They found three strong words to define their brand and they work. Criteria for choosing Brand Elements There are 6 criteria’s for choosing a brand element. Memorability is if the consumers recall a product such as Nike. Meaningfulness is the product worth the buy? Likeability visually good and looks or sounds fun like McDonalds. Transferability is it works across different product
segments such as Virgin. Adapt ability can be updated as tastes and values change such as Betty Crocker. Last is protectability can be protected legally and isnâ€™t easily copied such as Mercedes Benz. Celebrity Endorsement I think having celebrities advertising your products is a great idea because a lot of people seem to follow them and their style. Saying Tiger Woods is the person known for Nike. Every golf tournament he is seen for wearing Nike everything from head to toe. Michael Phelps is the person who makes eating healthy fun from Subway.
Licensing Licensing is a long and timely process. The licensor has to find a company or product that they want to license with and the company has to agree with them to get the agreement passed. Murjani Group is the licensee for Tommy Hilfiger. Beverly Hills Polo Club is licensed to Spencers Retail. These are things I would have never known if I hadnâ€™t looked it up. Brand architecture
There are seven tiers in the brand architecture. The Single Barrell tier is for members only such as clubs like Costcoâ€™s and Samâ€™s Club. Proprietary Tier is the second one it is available to everyone such as restaurants. Icon tier is the third it is also available to everyone in the restaurant industry. Generations tier is the fourth one it is available at the specific place such as signature deserts. Family Core tier is the fifth one it is also available to everyone you can also get it every day. Finally there is the Exclusive tier it is only available at the specific place and is only available on occasions.
Brand Hierarchy There are five levels to the Brand Hierarchy. Level one is the Company or BU this is the patent or the brand. Two is the Product Family is the umbrella of the brand of multiple product lines. Three is the product line this is a portfolio of the products under the brand. Four is the Product type/model this is the specific product in that line. Finally five is Variant/Sort it is an individual and unique item.
New products & Brand Extensions I think this is interesting because if you look up half the main items people buy they own other things called brand extensions. One example would be Coca Cola they also have Dasani Water, Powerade, and vault the energy soda.
Advantages & Disadvantages of Extensions Advantages •
Increases Brand image
Risk perceived by customers reduces
Brand meaning is clarified
Revives the brand
Packaging and labeling efficiencies
Have no advantage over competitive brands
Chances of less awareness
May cause damage to image
May lead to loss of reliability
Value-Based Pricing Strategies Value based pricing is predicated upon an understanding of customer value. If the value of the customer goes down then the price of the product might go down. I do know this works with gas; if people stop purchasing gas for a week then the price of the gas will go down because the need for it has fallen.
Channel Strategy Trust the company has to try to earn that from the customers from being honest. Recognition and projection also from the customers if the consumers can identify the product then the company is in good shape. Identification is also a major thing, if the consumers can identify the product they are also in good shape. Marketing your product is also a big thing. Finally sustenance if you can sustain in the industry you are also doing well.
Marketing Communication Options The four Ps of marketing product, place, price, and promotion. If you have a great product the next thing to do is to make sure you can put it in the right areas. For a product you have to make sure that the price for the product is reasonable for the quality of the product. Finally you have to make sure to promote the product right. Co-Branding Nike and Apple are working together with bringing music and exercise together. These two companies developed the sports kit and a wireless system that allows shoes to talk to an iPod. I think this was a very good example of cobranding.