The Value of a Brand!

1. The Value of a Brand! Branding is Value Creation

2. What is a Brand? A word? • Kleenex • Xerox • Fed Ex • Coke • Tiffany’s

3. What is a Brand? An image? • Mc Donald’s • Apple Computers • KFC • AOL • Starbucks

4. What is a Brand? A slogan? • _________, it’s the real thing. • _______________when it absolutely positively has to be there overnight. • ___ the ultimate driving machine.

5. A Brand is a Memory? • What we remember about a product is the brand? • It can be a word, image, slogan even music. • A brand is a tool to remember a product.

6. How does memory work? • Working Memory • Long-term Memory • Skill Memory

7. Long -term memory is triggered. A trigger is a need or desire. Life Time-line Trigger Event

8. Long -term memory is triggered. Advertising is not a trigger, it’s a memory builder. Life Time-line Trigger Event

9. Memory is triggered. Perfect Advertising to Purchase Scenario Life Time-line Trigger Event Advertising Purchase

10. Memory is triggered. But it’s not a Perfect World. Life Time-line Trigger Event Purchase Advertising

11. Memory is triggered. A brand outlives advertising. Life Time-line Advertising Purchase Trigger Event Brand Memory

12. A Brand has Value. • Any memory that outlasts it’s advertising is valuable. • The longer the memory lasts the more value it has. • The more people that share the memory the more value it has. • A company that owns memories has value. • In the valuation of a company it’s called goodwill.

13. Branding is Value Creation • An un-licensed business with no established brands sells for the value of it’s physical assets. • A licensed business sells for multiples of it’s cash flows. • A business with established brands sells for one of the above plus the value of the brand, goodwill.

14. Advertising needs to work. • While you are building brand you have to pay the bills. • Public companies use investors money to pay the bills while they build value. • You have to earn a profit and build the brand at the same time.

15. How do you accomplish both? • “Call to Action” advertising makes the phone ring, delivering prospects to your business. • It’s your sales force that converts prospects to customers. • “Brand” advertising creates memories of your business that will lead prospects to you in the future.

16. Compare Two Spots

17. Building a Brand and Call to Action Budget • Remove three page chart from Chapter Two after page 9 • See Chapter Seven page 1

18. Branding • End of Section One

19. Call to Action • To effectively deliver new prospects an advertising medium should be highly targeted, cost effective and reach many people. • To build memories a medium must be able to deliver a message to all the senses, sight, sound, motion and emotion.

20. Compare the Sum of the Alternatives • Has a television commercial ever made you laugh? Moved you emotionally? Made you angry? • How about Newspaper?Radio? Direct Mail? • Television can move people to action and create lasting memories.

21. How long can a memory last? • _______ tastes good like a cigarette should. • I’d walk a mile for a _____.