Unit 1 Brands

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UNIT 1-BRANDS_CLASS PRACTICE_MATERIAL

WHAT_IS_A_BRAND? Whatsinaname?Thatwhichwecallarosebyanyothernamewouldsmellas sweet. (WilliamShakespeare) Inthebusinesscontext,theansweronthesamequestionisquitedifferent.According toHansG.Gueldenberg,CEOofNestlDeutschlandnamesareroadsignsthathelp peoplefindorientationinthejungleofsupply. Intodaysworld,namesells.Forinstance,acarisacarandtheitspurposeis commutingfrompointAtoB.Nevertheless,whenacarisaMercedesoraBMW,the perception changes. Its not viewed just as a mode of transport but its attached to onesstatusorprestige.Andthatsexactlywhatabranddoes.Itnotonlygives recognitiontothecompanybuthelpscustomerscreateanidentityforthemselves. AssaidbyJeffBezos,CEOofAmazon.com,Abrandforacompanyislikea reputationforaperson.Youearnreputationbytryingtodohardthingswell. AccordingtoAmericanMarketingAssociation(AMA),brandisaname,term, sign,symbol,ordesign,oracombinationofthem,intendedtoidentifythegoods andservicesofonesellerorgroupofsellersandtodifferentiatethemfromthose ofcompetition.Foracustomer,abrandisalltheemotionsandideasassociated withaproductorservicethatcreatesadistinctcustomerexperience.Itincludes allthingsrealorperceived,rationaloremotional,physicalorsensory,thoughtor felt,whetherinformorfunction,plannedorunplanned.Thepowerofthebrand dependsonhowwellaproductcaninvitethecustomersandhowlongcanitreside intheirminds. OtherwaystodefineaBrand 1stdefinition Abrandisaname,term,symbol,design,orcombinationoftheseelementsthatis intendedtoidentifythegoodsorservicesofaselleranddifferentiatethemfromtheir competitors. 2nddefinition A brand is the intangible sum of a products attributes: its name, packaging, and price,itshistory,itsreputation,andthewayitsadvertised. 3rddefinition Branding is a practicethat has always existed above and beyond all other businessstrategies.It isanorganizingprinciplesobroadyetsodefiningthatitcan

Author: S.R.D. / BE2_summer semester

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UNIT 1-BRANDS_CLASS PRACTICE_MATERIAL

shapeanddirectjustabouteverythingacompanydoes,and,mostimportant,howit doesit.ScottBedbury,ANewBrandWorld 4thdefinition Brands are sponges for content, for images, for fleeting feelings. They become psychologicalconceptsheldinthemindsofthepublic,wheretheymaystayforever. Assuchyoucantentirelycontrolabrand.Atbestyoucanonlyguideandinfluence it. Brandingisapowerfulmessagethatspeakstowhoweare,whatwewantandwho wewanttobe. Brandshumanizetheproductorserviceandgiveitapersonalityallitsown. THE_NEED_FOR_BRANDINGORWHAT_MAKES_BRANDS_SUCCESSFUL Earlier,brandingincludedlogosandadvertisements.Butnowadays,brandismuch morethananameoralogo.Abrandisnolongerjustaboutimageprojection.Itis aboutthecompanyasawhole.Brandingdistinguishesacompany,productor servicefromtherestandcreatesalastingimpressionontheconsumers. Tobeabletodeliver the expectedquality,successful brandsput a strong emphasis onthefollowing: Reputation=abrandalwaysreflectsacertainimageinpublic CustomerService=relationtocustomersaftertheypurchaseabrand Promisetocustomers=whetherabrandwillmeetcustomersexpectations Priceoftheproduct=oneofthemajorfactorsincustomerspurchasingdecision Attitude=oftheproduct;whatkindofimageitsells Logo=graphicrepresentationorsymbolofthebrandsimageandmessage Productline=howaproductisimprovedintime Abrandisnotjustalogo,adcampaign,spokespersonorslogan.Ratherabrandisa product ofthe millionsofexperiencesacompanycreateswith employees,vendors, reporters, communities, and customersand the emotional feelings these groups developasaresultoftheirexperiences. Inordertomaintaintheirbrandssuccessful,companiesneedto: Use webbased social networking to exchange information (social media sites Twitter, Facebook, LinkedIn) since marketing on those sites is on the constant increaseasissocialnetworkingonline.Studieshaveshownthatpeopleconnectedon

Author: S.R.D. / BE2_summer semester

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UNIT 1-BRANDS_CLASS PRACTICE_MATERIAL

those sites spend more money online than an average buyer. In todays uncertain economicconditions,businessownersarefindingitnecessarytobecomeevenmore creativeinordertosuccessfullybrandtheirproductsandservices.Moneyistighter in many households due to job loss and/or reduced wages. As a result, consumer expectations are rising as they seek newer and more advanced tools to meet their desireforthelatestandbest,despitefinanciallimitations. Enable fast consumer feedback. Today, information travels faster than a few decades ago and companies need to adjust their marketing strategy to the new tendencies in communication. That means advertising in the media used by the youngergenerationsandadjustingtheircustomerserviceoperationstofitthelatest technological development (open forums and chat lines, invite consumers to send textmessages,etc.). Anticipate customers needs. A basic business principle has always been that the most successful businesses are those that know how to anticipate their customers needs, and then fill them. In some ways, narrowing rather than expanding ones brand has become the target of todays marketplace due to conservative spending andmeetingthewantsandneedsofcustomerswhoareabletopay. Narrowthebrandinsteadofexpandingit(intimesofrecessionconsumersspend conservatively and focus their attention on meeting the basic daytoday needs so theylookforproductsthatwillmeetthoseneeds). Createwebsitewithpreciseproductinformation. Brandshouldbetrulyreflectedinthelogoandthetagline(=asloganorphrase thatcapturestheessenceofabrandspromisetoconsumers). Use a variety of advertising methods newsletters, tote bags(given away at events,promotionsandopenings),personalphonecalls,directmarketing(leaflets inthepost) Organiseseminarsandwebinars Upload personal details and contact information on the web page to speed up informationflow.

Author: S.R.D. / BE2_summer semester

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UNIT 1-BRANDS_CLASS PRACTICE_MATERIAL

Inspire customer interaction post surveys, open forums, invite customers to blog. Offercustomertestimonialspersonalstatementsmakeproductorservice Provideexcellentcustomerservice WHAT_IS_BRAND_MANAGEMENT? Brandmanagementistheprocessofcreatingandsustainingbrandequity.Brand managementincludesdevelopingastrategythatsuccessfullysustainsorimproves brandawareness,strengthensbrandassociations,emphasisesonbrandquality andutilisation.Itrepresentsasophisticatedbusinessprocesstomaintainthe uniquemixofphysicalattributesandintangiblevaluesthatdistinguishesonebrand identityfromtheother. Therefore,brandbuildingandbrandmanagementhavebecomecriticalissuesfor firmscompetingwithinindustries.Overthelastdecades,brandevolvedfroma simpleproductattributetothatofavaluecreatorfortheentirefirm.Abrandcan beanythingaperson,product,country,company,etc. Brandmanagementisnotjustaboutbuildingbrands,butalsomanagingand establishingthem.Marketersshouldconsidermaintaininghealthyandvitalbrands andfirmsneedtopayattentiontobrandbuilding.Theyshouldnotneglect importantissuesrelatedtobrandleveraging,identification,andprotection. Successfulbrandisanimportantstrategicmarketingtoolforafirm.Effective brandmanagementincludesconstantendeavourofafirmtochoosethewaysfor realisingthebrandpotentialandenhanceitsvalue.Asaresult,itcancreate sustainedcompetitiveadvantageandasuccessfulstrategicpositioningthrough continued investment in quality, communication and customer relationships. The basicmessagetomanagementisthatbrandisaninstrument, notonlyagoaland,ifitusedefficiently,itcausescreationof valuedintangibleassetscustomercapital. TYPES_OF_BRANDS TherearesixtypesofbrandsProduct,Service,Organisation,Person, EventandGeography. 1.ProductBrandsThebrandthatisassociatedwithatangibleproduct,suchas acaroradrink.Thiscanbeveryspecificormayindicatearangeofproducts.Itis furtherdividedintoindividualproduct(Ex:CocaCola)andproductrange(Ex: varietiesofColgatetoothpaste). Author: S.R.D. / BE2_summer semester 4

UNIT 1-BRANDS_CLASS PRACTICE_MATERIAL

2.ServiceBrandsThebrandsthatdelivercompletesolutionsandintangible servicesbesidesmanufacturingproducts.Servicebrandsareaboutwhatisdone, whenitisdone,whodoesit,etc.Itismuchdifferentthanproductbrands,where variationcanbeeliminatedontheproductionline.Evenincompaniessuchas McDonaldswhereservicehasbeenstandardiseddowntoeyecontactandsmile, variationstilloccurs. 3.OrganisationBrandsOrganisationsarebrands,whetheritisacompanythat deliversproductsandservicesorsomeothergroup.Thus,Greenpeace,Mercedes andtheUSSenatearealldefinedorganisationsandeachhavequalitiesassociated withthemthattogetherconstitutethebrand. 4.PersonasbrandPersonbrandisfocusedononeorafewindividualsandis associatedwithpersonality. IndividualApureindividualbrandisbasedononeperson,suchasa celebrityactororasinger.Thebrandcanbeapersonwithacarefully craftedprojection(eg.politicians) GroupInparticular,whenthisisasmallgroupandtheindividualsare known,thegroupbrandandtheindividualbrandoverlap.Forexample, thebrandofapopgroupandthebrandofitsknownmembersarestrongly connected(eg.TheBeatles). 5.EventEventshavebrandstoo,whethertheyarerockconcertsortheOlympics. Event brands are strongly connected with the experience of the audience, for example,musicalpleasure. 6.GeographyAreasoftheworldalsohaveessentialqualitiesthatareseenas characterisations,andhencealsohavebrand.Theseareascanrangefromcountries tostatestocitiestostreetsandbuildings.Thosewhogovernorrepresentthese geographies,developthebrand(e.g.Japan,US). TRANSFORMATION_OF_A_BRAND_TO_AN_EXTRAORDINARY_BRAND Mostofthecompaniesmanagetobuildbrands.But,thequestionisWhatisthe secret of the long life of such brands? There are companies that have established brands which are loved by the customers and have been for decades. Such brands becomeicons. IconicBrands Iconicbrandsarepartofourculture.Theyareeasilyrecognised bytheirlogo.Thesebrandsspendalotofmoneyonmarketingtokeeptheirimage Author: S.R.D. / BE2_summer semester 5

UNIT 1-BRANDS_CLASS PRACTICE_MATERIAL

perfect.Theseiconicbrandsaretopofmindbrandsandoftenwinabiggermarke