Brand Building Strategies and Marketing Principles

1. MBM721S Marketing and Brand Management Vacation School 20th August 2018 Donald Hlahla

2. Programme • Tutorial letter • Study Guide/Prescribed Text/Reading/Other references • Approach to learning • Theory-key areas • Practice-Namibian Context • Analysis-Linking theory and Practice • Learning Outcomes Page 5 of the Study Guide

3. Programme cont-- • Assignments • Understanding the question • Evidence of wide reading • Practical application to the context • Presentation

4. DiscussThis implies insight and discretion when applying and assessing knowledge. The different aspects of the matter or statement are examined or stated analytically. EvaluateAssess a matter on the basis of certain criteria. Make a value judgment about the matter and give reasons for your views. ExplainState the matter simply so that the reader will understand it. Use illustrations, descriptions and examples and provide reasons for decisions or results. Give an overviewPresent a summary (abridged version) of data in a logical and systematic manner. List / nameWrite down only the information required, no discussion is necessary. SummarizeIdentify the key aspects of the whole, while retaining the essence of the matter. Give information without criticising or discussing it. StateGive information without criticising or discussing it. Comment Spoken or written statement that expresses and opinion about someone or something-a personal view of. Outline General description or plan showing essential features of something without giving details.

5. Key Aspects of the Course • Assumption that you have done first level marketing • This level is generally considered as Strategic Marketing • Material in the study Guide sufficient. • Most of the work derives from Philip Kottler. • Go through key areas identified in the Study Guide.

6. What is a brand • A brand is a name, term, sign, symbol, design or a combination of the above to identify the goods or service of a seller and differentiate it from the rest of the competitors • A brand consists of; Tangible attributes and Intangible attributes • Brand identity is the marketer’s promise to give a set of features, benefits and services consistently • Brand Building involves all the activities that are necessary to nurture a brand into a healthy cash flowstream after launch

7. Advantages of branding • Easy for the seller to track down problems and process orders • Provide legal protection of unique product features • Branding gives an opportunity to attract loyal and profitable set of customers • It helps to give a product category at different segments, having separate bundle of benefits • It helps build corporate image • It minimizes harm to company reputation if the brand fails

8. Brand building activities E.g. • Product development • Packaging • Advertising • Promotion • Sales and distribution

9. Tangible attributes of a brand E.g. • Product • Packaging • Labeling • Attributes • Functional benefits

10. Intangible attributes of a brand E.g. • Quality • Emotional benefits • Values • Culture • Image

11. Brand Equity • When a commodity becomes a brand, it is said to have equity • Brand equity is the premium it can command in the market • Difference between the perceived value and the intrinsic value

12. What happens when equity increases? Commodity Brand Power Brands Presence + Personality

13. What happens when brands have high equity? • The company can have more leverage with the trade • The company can charge a premium on their product • The company can have more brand extensions • The company can have some defense against price competition

14. Brand Loyalty Pyramid Committed buyer 111 Likes the brand. Considers it a friend Satisfied buyer. Would incur costs to switch Satisfied buyer/no reason to change Switchers/Price sensitive

15. Brand building How does one build a brand? • Distinguishing it from others – value proposition • Brand promise must match brand delivery Value proposition • Broad positioning • Specific positioning • Value positioning Creating the brand • Choosing a brand name • Develop rich associations and promises • Managing customer brand contact to meet and exceed expectations

16. Considerations in choosing a brand name • What does the brand name mean? • What associations / performance / expectations does it evoke ? • What degree of preference does it create?

17. A brand name should indicate • Product benefits • Product quality • Names easy to remember, recognize, pronounce Brand associations • ‘owned word’ • Slogans • Colors • Symbols and logos • Product category • Distinctiveness • Should not indicate poor meanings in other markets or languages

18. Brand Status E S T E E M Step up advertising Cash Cow. Need to Sustain brand building activities Troubled brand Product upgrading required New Product Or Product should be phased out FAMILIARITY

19. Other issues on brand • Brand ambassador:- Giving a face and personality to the brand that is expected to be rubbed off from the brand ambassador • Brand vitality:- Differentiation in consumer’s need and Differentiation relevant to consumer’s need (see cars for Africa) • Brand pitfalls:- Brand experience must match brand image and Calls for managing every brand contact

20. Stages in the adoption process • Awareness • Interest and information • Evaluation • Trial • Adoption • Post adoption behaviour (see tripe and wine)

21. BRAND ELEMENTS CHOICE CRITERIA • T There are six cr main brand • elements for • choice criteria

22. The Six brand elements for choice criteria • Memorable • Meaningful • Likable- are “brand building” • Transferable • Adaptable • Protectable- “defensive” and deal with how to leverage and preserve the equity in a brand element in the face of opportunities and constraints.

23. Example of a brand

24. Brand elements choice criteria explained • Memorable:-How easily is the brand element recalled and recognized. Short brand names. • Meaningful:- Is the brand element credible and suggestive of the corresponding category. Inherent meaning • Likable:- How aesthetically appealing is the brand element. Concrete brand names.

25. Brand elements choice criteria cont-- • Transferable:- Can the brand element be used to introduce new products in the same or different categories. Brand equity across geographic boundaries and market segments • Adaptable:- How adaptable and updatable is the brand element. Changed to synchronize with the changing consumer perceptions and preferences • Protectable:- How legally protectable is the brand element. How competitively protectable. Names that become synonymous with product categories.

26. Advantages and disadvantages of international Marketing Advantages • Larger markets • Competitive weapon • High cash flows • Achieve global brand equity • Technological advancement etc Disadvantages • Legal/political/government bureaucracy • Language/culture/customer needs/attitudes • Currency fluctuations/monetary regulations (p135 Guide)

27. Vertical solutions marketing • Definition: p158 Guide • Vertical marketing systems- distribution structure (see types) • Solution selling- ‘marriage commitment’ • Types of vertical marketing systems • Administered vertical system-based on Power • Vertical contractual system-franchise model • Corporate vertical system-One owner overarching –(monopolies) (See advantages and disadvatages-p159 Guide)

28. Thank you and best wishes • Please refer to the Study Guide, Prescribed and Recommended texts for details • dhlahla@gmail.com