Welcome to Strategic Brand Management

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Welcome to Strategic Brand Management
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BU692u Strategic Brand Management Winter 2005

• Dr. Hugh Munro
• Office P3046
• Phone [phone], ext 2556
• hmunro_at_wlu.ca

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Agenda First Class

• Course Objectives
• Class Format
• Performance Evaluation
• Introduction to Branding

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Course Objectives

• Understanding of what a brand is and how it is
  formed
• Brand building in a variety of business contexts
• Integrated requirements for brand building,
  reinforcement, revitalization
• Models, measures, impact of brand equity
• Learn through illustration application

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Class Format

• Discuss key concepts you me
• Illustrate their application you, me, guests
• Questions for discussion tasks to be performed
  from outline (example for next session)
• Challenges, issues, trends
• Summarize

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Performance Evaluation

• Brand Audit Project (group) 40
• Brand Personality Assessment (individual) 20
• Brand Journal (individual) 20
• Participation (individual) 20

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Brand Audit Project

• Brand Book
• Brand History
• Assessment of current status using course
  concepts brand hierarchy, customer-based brand
  equity, brand positioning, brand mantra
• Analyses of how branding elements and marketing
  mix are contributing to this brand status
• Recommendations re building managing brand
  equity in the future
• Brand choice 3rd class
• Presentation last class

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Brand Personality Assessment

• Capturing a brands personality
• Apply Aakerss brand personality scale
• Projective techniques to create an image for your
  brand
• Use Zaltmans ZMET technique to create a collage
  for your brand
• Use Fourniers typology to describe the
  relationship that you have with your selected
  brand
• Implications from above
• Powerpoint presentation (5 slides) Jan 24th
  session

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Brand Journal

• 10 or more articles that address topic of
  branding
• Concept illustrated in the article and its
  implications for marketers a crisp paragraph
  for each article
• Articles can be discussed through the term
• Electronic journal to be submitted March 30th

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Participation

• Class discussions
• Journal examples
• Interaction with guest speakers
• Value added contributions

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Questions for Discussion

• What is a brand? How is it formed?
• Can anything be branded? Are you a brand?
• How does branding affect consumer behaviour?
• What are the challenges to branding in todays
  marketplace and what are the implications for
  marketers?

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What is a Brand?

• Traditional view -
• A brand is a name, term, sign, symbol, or design
  which is intended to identify the goods or
  services of one seller or group of sellers and to
  differentiate them from those of competitors.
• More recent views
• Brand is what is experienced and valued by
  customers in everyday social life.
• Brand is the culture of the product shared
  taken for-granted brand stories, images, and
  associations
• Brand is the mental and emotional file we have
  for a product or service or entity.

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New Branding Challenges

• Brands are important as ever
• Consumer need for simplification
• Consumer need for risk reduction
• Brand management is as difficult as ever
• Savvy consumers
• Increased competition
• Decreased effectiveness of traditional marketing
  tools and emergence of new marketing tools
• Complex brand and product portfolios

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Brand Explosion
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Branding by Retailers Example Walmarts 5 Next
Victims Forbes 11/12/2004

• Consumer Electronics Best Buy 1, Walmart 2
  but recently rolled out private brand ILO.,
  expanded brand relationships with Sony, RCA,
  Panasonic
• Banking trying to get into banking but thwarted
  by regulators, instead it offers check cashing,
  bill payment, money orders boasts 28 Wal-Mart
  Money Centres operated by Sun Trust Banks plus it
  has I-store bank branches with other banks
• Pharmacy currently 4th in pharmacy business,
  rolling out a handful of 24hr pharmacies
• Gasoline 1555 stations on Wal-Mart properties,
  300 of which are operated by Sams Club, rest by
  Murphy
• Fashion bought 1 selling British apparel brand
  George from Asda, licenses Mary-Kate Ashley
  lines from the Olsen twins

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Changing View of Brands file///C/Documents20a
nd20Settings/User/My20Documents/Branding/Frontli
ne20interviews20on20brand.htm
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The Customer/Brand Challenge

• In this difficult environment, marketers must
  have a keen understanding of
• customers
• brands
• the relationship between the two

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Lovemarkshttp//www.lovemarks.com/about/loverespe
ct.php
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The Concept of Brand Equity

• The brand equity concept stresses the importance
  of the brand in marketing strategies.
• Brand equity is defined in terms of the marketing
  effects uniquely attributable to the brand.
• Brand equity relates to the fact that different
  outcomes result in the marketing of a product or
  service because of its brand name, as compared to
  if the same product or service did not have that
  name.

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The Concept of Customer-Based Brand Equity

• Customer-based brand equity
• Differential effect
• Customer brand knowledge
• Customer response to brand marketing

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Determinants of Customer-Based Brand Equity

• Customer is aware of and familiar with the brand
• Customer holds some strong, favorable, and unique
  brand associations in memory

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Building Customer-Based Brand Equity

• Brand knowledge structures depend on . . .
• The initial choices for the brand elements
• The supporting marketing program and the manner
  by which the brand is integrated into it
• Other associations indirectly transferred to the
  brand by linking it to some other entities

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Benefits of Customer-Based Brand Equity

• Enjoy greater brand loyalty, usage, and affinity
• Command larger price premiums
• Receive greater trade cooperation support
• Increase marketing communication effectiveness
• Yield licensing opportunities
• Support brand extensions.

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Brand Power Global Business Week, August 2004
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Brand Power - Canada
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Customer-Based Brand Equityas a Bridge

• Customer-based brand equity represents the added
  value endowed to a product as a result of past
  investments in the marketing of a brand.
• Customer-based brand equity provides direction
  and focus to future marketing activities

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The Key to Branding

• For branding strategies to be successful,
  consumers must be convinced that there are
  meaningful differences among brands in the
  product or service category.
• Consumer must not think that all brands in the
  category are the same.
• PERCEPTION VALUE

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Strategic Brand Management

• Strategic brand management involves the design
  and implementation of marketing programs and
  activities to build, measure, and manage brand
  equity.
• The strategic brand management process is defined
  as involving four main steps
• 1) Identifying and establishing brand
  positioning and values
• 2)  Planning and implementing brand marketing
  programs
• 3)  Measuring and interpreting brand performance
• 4)  Growing and sustaining brand equity

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Next Day -

• Building Brand Equity
• Task compare two brands in same category
• Brand resonance
• Brand product categories
• Brand mantra