Markoms B 2002-3

1. Markoms B 2002-3 presentation #B304 Branding Background

2. Learning Outcomes • By the end of the session, students will be able to • list 5 benefits of branding • describe why branding works better than non-branding • list 5 examples of how different brands communicate different dimensions • describe with examples how the perception of a corporate brand varies dependent upon the stakeholder — product brand,employer brand etc.

3. Part 1 • GeneralRevision

4. Stakeholder Communications identify stakeholders identify needs and satisfaction identify current communication methods prioritise and set objectives build a consistent message implement control and evaluate

5. Identification of Stakeholders • External Stakeholders • shareholders and Financial Stakeholders • customers • distribution channels • pressure groups • media • Internal Stakeholders • staff • management

6. Stakeholder Satisfactionand Attitudes • If a stakeholder's needs are being met, they will be satisfied and have a positive attitude • If a stakeholder’s needs are not being met, they will be unhappy and have a negative attitude • NB: Communication Needs only

7. Part 2 • Branding Overview

8. Meeting the Customer’sNeeds and Wants the customer her requirements £50

9. The Offer: the Customer’s Perspective on Buying • our offer • physical attributes • price • psychological attributes • channel £60 • competitor offer • physical attributes • price • psychological attributes? • channel £30 £70

10. What the Customer Perceives: The Brand The totality of what the consumer takes into consideration before making a purchase decision (Picton & Broderick 2001)

11. Perceiving More Than Just the Product … Levi’s Jeans Product Five pocket western heavyweight denim jeans Brand The original and definitive jeans. The embodiment of jeans values (freedom, individuality, rebellion, sex,masculinity, originality and youth).

12. Basic Definition A Brand is defines as a name, logo or symbol that distinguishes a product from other products or commodities,and which is protectable in lawthrough intellectual property rights

13. Brand = Brand Image • Brand Image is defined as“the perception of the brand held by the market” • NB • brands do not exist in isolation • the perception depends on the audience

14. Exercise #1 • How do you view the following ‘brands’ as a customer and as a prospective employee? • Virgin Rail or Central Trains • UCE • Unilever

15. Dimensions of Brand Perceptions • Brand dimensions comprise • connative (physical functionality)(size, colour, etc. of Dyson) • cognitive (logical)(cyclone vortex) • affective (emotional)(trustworthiness of the Dyson brand)

16. What We Perceive Brand Potential Augmented Brand Much Markoms communicates information on attributes and benefits. This creates awareness and reinforces/change attitudes Basic Brand CoreBenefit

17. Part 3 • Branding Strategy

18. The Company Perspectiveof The Brand • The totality of what the consumer takes into consideration before making a purchase decision (Picton & Broderick 2001) • The totality of what a distribution channel takes into account when considering stocking our brand • The totality of what a potential shareholder takes into account before investing in a company

19. Benefits of Brandingto the Company • Benefits include • asset value(brand financial value, brand equity) • higher profit margins • protectable competitive advantage • resilience in a recession • facilitates experiential, vicarious and cognitive learning

20. Benefits of Brandingto the Customer • Benefits include • reduces the “misery of choice” • facilitates routine buying(key part of packaging) • useful when cognitive buying

21. Brand Strategy • Brand Strategy is defined as“to differentiate products and companies and to build economic value for both the consumer and owner”

22. Branding Strategy Options • Branding Strategy Options include • Corporate Branding Sony • Family Branding Kelloggs Rice Krispies • Product Line Branding Gillette, Heinz • Individual Branding Unilever, P&G • Own Label Tescoaka Private Label • Component Branding Intel

23. Successful Brands • Have superior physical attributes/benefits • Have superior psychological attributes/benefits • Are perceived as different from the competition • Have frequent and positive media coverage • Match the perceptual Field of the Target Audience(s)

24. Our Aims: Brand Equity andBrand Financial Value • Brand Equity is defined as“the value of the brand’s name, symbols, associations and reputations to all target audiences who interact with it”

25. Our Aims: Brand Equity andBrand Financial Value • Brand Financial Value is defined as“the financial expression of brand equity”

26. Building Brand Imageand Brand Values Brand Personality Brand Identity Brand ImageBrand Values

27. Brand Personality • Brand Personality is defined as“the fundamental essence of the brand”

28. Brand Identity • Brand Identity is defined as“the message cues used to convey the brand personality to create the brand image” • Marketing and Markoms can thus be thought of as the process of building Brand Identity

29. What We Want to Create:Brand Values • Brand Values are defined as“the meaning or meanings that brand generates in the minds of its target audiences”

30. Part 4 • Communicating The Brand

31. Message Cues • Anything and everything communicates through Intended and Unintended Message Cues • intended corporate ID, adverts • unintended fat cat salaries • Must have • integrated communications strategy • integrated message

32. ‘On Brand’ • It is vital for all communications to be consistent and communicate ‘shared meaning’ to each stakeholder group • The message should be consistent across as many stakeholders as possible • i.e. all messages must be ‘On Brand’

33. Successful brands communicate consistent messages based on Core Message Themes which communicate • to all stakeholders • to all customers in a particular geographic region (regiocentric) or on a global basis (global or geocentric

34. Elements of a Good Message • “Good” messages • are consistent • have impact and gain attention • demonstrate how the brand is different • remind or persuade • are of practical value and relevant to the perceiver • use the same imagery and vocabulary as that used by the perceiver (match their perceptual field)

35. Markoms Branding Process positioningstrategy Message Themes quality, value helpfulness exciting, cool etc. appeals & executions etc. creative strategy interpretation language, visuals and sounds to enter into the perceptual field of the target audience brand personalityapproach

36. How Does a Brand Communicate? • Corporate Identity • logo, colours, fonts, signage etc. • Communications • letters, web pages, adverts • Behaviour • sales staff, customer service staff etc. • the product, the directors etc. (unintended and usually no control by marketing communications department)

37. Remember … • Different stakeholders have different perceptions of a brand making different interpretations (meanings) of an action • For example, 500 redundancies … • … is perceived as bad news by employees and the local community • … is perceived as good news by shareholders and city analysts

38. The Different ‘Brands’ ProductBrand Profile Strategy Pull Strategy Push Strategy InvestorBrand CorporateBrand ChannelBrand Internal CommunicationsStrategy EmployerBrand

39. Some Final Thoughts • Many people, especially young people are switching away from high visibility status brands (Melanie Klein No Logo) • 2003 fashions will have much smaller and more discreet brand labels • Love them or hate them, brands have been around for over 2000 years and are here to stay

40. Learning Outcomes • By the end of the session, students will be able to • list 5 benefits of branding • describe why branding works better than non-branding • list 5 examples of how different brands communicate different dimensions • describe with examples how the perception of a corporate brand varies dependent upon the stakeholder — product brand,employer brand etc.