Strategic brand management by kevin lane keller
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The document outlines the concept of brand management, emphasizing the distinction between a brand and a product, and defines brand equity as the marketing effects attributable to the brand name. It discusses the importance of branding in creating perceived differences, building customer loyalty, and generating financial profits for companies. Furthermore, it identifies the strategic brand management process, which includes establishing brand positioning, implementing marketing programs, measuring performance, and sustaining brand equity.
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Strategic brand management by kevin lane keller
- 1. STRATEGIC BRAND MANAGEMENT BUILDING, MEASURING, AND MANAGING BRAND EQUITY Kevin Lane Keller Collected by: Ileush Cornell, Brand Strategist, Bangladesh, Blog: www.ileush.blogspot.com 1
- 2. What is a Brand? American Marketing Association’s definition 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. • Attributes that identify the brand are called – Brand Elements (based on people, place, objects, animals, etc.) • Practicing managers define brands as more than that. This distinction is important since it can lead to confusion. Collected by: Ileush Cornell, Brand Strategist, Bangladesh, Blog: www.ileush.blogspot.com 2
- 3. What is a Brand? Brand versus Product – Product – is anything that can be offered to a market for attention, acquisition, use or consumption that may satisfy a need or a want (goods, services, retail store, person, organization, idea) • Kotler defines 5 levels of a product 1. Core benefit level – fundamental need or want that is satisfied 2. Generic product level – basic version – attributes necessary for functioning (stripped down level) 3. Expected product level – what customer’s normally expect 4. Augmented product level – additional attributes, benefits that distinguish it from competition 5. Potential product level – all transformation that it might undergo in the future Collected by: Ileush Cornell, Brand Strategist, Bangladesh, Blog: www.ileush.blogspot.com
- 4. What is a Brand? A Brand is therefore a Product – that also has dimensions that differentiates it from other products designed to satisfy the same need (competition) • Differences may be - • Rational and tangible – related to product performance (3M, Sony, Gillette) • Symbolic, emotional, intangible – related to what the brand represents (Coca Cola, Calvin Kline, Marlboro) • What distinguishes a brand from a commodity gives it equity - the sum total of consumer perceptions and feelings about how it performs (3M, Sony, Gillette) • The name and what it stands for • The company associated with the brand Collected by: Ileush Cornell, Brand Strategist, Bangladesh, Blog: www.ileush.blogspot.com
- 5. New Concept of Brand Equity (BE) BE is defined differently by many but there is a point of consensus. It is agreed that - • BE relates to marketing effects that are uniquely attributable to the brand • BE 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. • BE concept in marketing - stresses the importance of the brand in marketing strategies. Collected by: Ileush Cornell, Brand Strategist, Bangladesh, Blog: www.ileush.blogspot.com
- 6. New Concept of Brand Equity There is also agreement about - Branding is about creating differences • Differences in outcome - arise from ‘added value’ endowed to a product as a result of past marketing activities for the brand • This value can be created for a brand in many ways • Brand value can be exploited to benefit of the firm in many different ways • BE provides the common denominator for interpreting marketing strategies and assessing the value of the brand Collected by: Ileush Cornell, Brand Strategist, Bangladesh, Blog: www.ileush.blogspot.com
- 7. Why Brands Matters? Brand Value created translates to financial profits for the firm as: • Creates perceived differences through branding • Develops a loyal consumer franchise The brand is an intangible valued asset that needs to be handled carefully. Collected by: Ileush Cornell, Brand Strategist, Bangladesh, Blog: www.ileush.blogspot.com
- 8. Why Brands Matter • Customers • Risk reducer • Search cost reducer • Signal of quality • Symbolic device for self expression • Promise, bond, pact, with maker of the product • Means of identification of source of product for assignment of responsibility to product maker • Manufacturer • Means of identification for handling, tracing • Signal of quality level to satisfied customers • Competitive advantage • Financial return • Legal protection of unique features Collected by: Ileush Cornell, Brand Strategist, Bangladesh, Blog: www.ileush.blogspot.com
- 9. Why Brands Matter • It creates a relationship between brand and consumer • a bond / pact. trust and loyalty and in return ……. • expect consistent product performance, appropriate price, distribution and other actions • Brands take on a special meaning and change the experience and perception of a product that leads to greater satisfaction • Customers with past experience learn more about the brand • The advantages • Lowers search cost internally and externally • The value may not be only functional in nature • They are symbolic devices allowing them to project their self image • Extremely important with credence goods to signal quality • Brands reduce risk particularly in BtoB settings Collected by: Ileush Cornell, Brand Strategist, Bangladesh, Blog: www.ileush.blogspot.com
- 10. Benefits of Customer-Based Brand Equity • Branding is a powerful means of securing a competitive advantage • Brand experience can last for years and cannot be duplicated • Enjoy greater brand loyalty, usage, and affinity • Predictability and security of demand • Command larger price premiums on a regular basis, also during A&Ms • Creates entry barriers for others • Receive greater trade cooperation & support • Increase marketing communication effectiveness • Yield licensing opportunities • Support brand extensions Collected by: Ileush Cornell, Brand Strategist, Bangladesh, Blog: www.ileush.blogspot.com 10
- 11. Anything Can Be Branded Branding is possible for - • B to B products • High-tech products • Services • Retailers and Distributors • Online products and services • People and Organizations • Sports • Arts, Entertainment • Geographic location • Ideas and causes Collected by: Ileush Cornell, Brand Strategist, Bangladesh, Blog: www.ileush.blogspot.com
- 12. Anything Can Be Branded To brand a product what needs to be done is - Consumer has to be • Taught to identify the brand – label, name and other elements • Learn the brand meaning - functional, emotional and symbolical • Know the brand difference from other similar product brands (performance / image and non-product related considerations) Commodities have been branded – atta, salt Collected by: Ileush Cornell, Brand Strategist, Bangladesh, Blog: www.ileush.blogspot.com
- 13. 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 Collected by: Ileush Cornell, Brand Strategist, Bangladesh, Blog: www.ileush.blogspot.com 13
- 14. The Concept of CBBE and Marketing • Customer-based brand equity - creates • Differential effect of brand because of … • Customer brand knowledge…which generates • Customer response to brand marketing Collected by: Ileush Cornell, Brand Strategist, Bangladesh, Blog: www.ileush.blogspot.com 14
- 15. Brand Equity and Marketing Management • BE concept stresses - importance of the brand in marketing strategies • BE 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. Collected by: Ileush Cornell, Brand Strategist, Bangladesh, Blog: www.ileush.blogspot.com 15
- 16. 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 Collected by: Ileush Cornell, Brand Strategist, Bangladesh, Blog: www.ileush.blogspot.com 16
- 17. The Key to Successful Branding For branding strategies to be successful – • Consumers must be convinced that there are meaningful differences among brands • Consumer must not think that all brands in the category are the same. PERCEPTION = VALUE Collected by: Ileush Cornell, Brand Strategist, Bangladesh, Blog: www.ileush.blogspot.com 17
- 18. Customer-Based Brand Equity as a “Bridge” • CBBE represents the “added value” endowed to a product as a result of past investments in the marketing of a brand. • CBBE therefore provides direction and focus to future marketing activities Collected by: Ileush Cornell, Brand Strategist, Bangladesh, Blog: www.ileush.blogspot.com 18
- 19. Strategic Brand Management • Strategic brand management involves design and implementation of marketing programs and activities • to build, • measure, • manage BE • Strategic brand management process involves four main steps: 1) Identify and establish brand positioning and values 2) Plan and implement brand marketing programs 3) Measure and interpret brand performance 4) Grow and sustain BE Collected by: Ileush Cornell, Brand Strategist, Bangladesh, Blog: www.ileush.blogspot.com 19
- 20. STEPS KEY CONCEPTS Identify and Establish Brand Positioning and Values Plan and Implement Brand Marketing Programs Measure and Interpret Brand Performance Collected by: Ileush Cornell, Brand Strategist, Bangladesh, Blog: www.ileush.blogspot.com 20 Strategic Brand Management Process Mental maps Competitive frame of reference Points-of-parity and points-of-difference Core brand values Brand mantra Mixing and matching of brand elements Integrating brand marketing activities Leveraging of secondary associations Brand Value Chain Brand audits Brand tracking Brand equity management system Brand-product matrix Brand portfolios and hierarchies Brand expansion strategies Brand reinforcement and revitalization Grow and Sustain Brand Equity
- 21. 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 Collected by: Ileush Cornell, Brand Strategist, Bangladesh, Blog: www.ileush.blogspot.com 21
- 22. The Customer/Brand Challenge • In this difficult environment, marketers must have a keen understanding of: • customers • brands • the relationship between the two Collected by: Ileush Cornell, Brand Strategist, Bangladesh, Blog: www.ileush.blogspot.com 22