Build Brand Equity What’s brand equity: Perception of value which consumers have for a brand name To win customer, company strive to build/create brand equity by using various of marketing plan to lead consumer to: --Familiarity with one brand over another brand --Preference for one brand over the competition --Purchase of a brand --Repeat purchase of brand --create brand loyalty Benefit of developing brand equity --consumer would be more loyal to your brand --brand would be less vulnerable to competition --your brand can command premium price --marketing communications activities are effective --brand extensions will be more successful. The key to successful branding is building brand equity But to remember, the value of brand lies in the mind of the consumer based on therir experience and message from many sources ( ad. World of mouth,etc) In addition, brand equity beyond the physical attributes of products and includes a full range of consumers experience. Brand equity occurs when a consumer is familiar with a brand and has favorable,strong, and unique associations with the brand that set it apart from others The three characteristics of brand equity: --it lies in mind of consumers --consumers perceive that brand name add value to the product --it results from a consumer’s ability to distinguish a meaningful difference between brands. Understanding consumers is KEY to building brand equity Five step at work for consumer adopting new brands awareness Knowledge attitude or feeling consideration adoption to conduct Focus group to get understanding how consumer adopt your brand Then Strategies/activities are designed to influence each step (such as promotional tools—advertising, direct mail, sales event, in-store displays,etc) However, brand manager has to learn what activities are best suited to your product, your targeted consumer, and most effective against your competition. “New Brand Adoption Process Model” Awareness Market activities/Tools to create and influence this : Logos, billboards, radio, jingles, slogans. Knowledge Market activities/tools to create this: Detailed magazine, ads, TV infomercials(such as special program about your products or interview program), descriptive press releases, internet, seminar, fee training, etc. Attitude or feeling Markers use creative devices to help stimulate powerful emotions in consumers. Such as try-out, testing use, celebrity spokesperson. The purpose is to develop positive attitudes and feelings about a brand. Consideration To provide price discount, coupon, free gift, game, etc Not all consumers go through the same above steps Low involvement brand vs high involvement brand (French fries vs digital camera) strategy for low involvement brand: --successful marketing activities includes magazine ads with large visuals and emotional or humorous copy. Or in store signage featuring large logos, free samples strategy for high involvement brand; --print ads with long body giving in-depth product information, ebistis and lengthy tv infomercials, lively product demo. One of the most challenging aspects of a brand managers’s job is to decide which marketing activities will be the most effective for your productand targeted consumer The four steps of new brand adoption process and related marketing tactics are: awareness: logos, slogans, and jingles knowledge: long copy ads and in-depth websites attitudes/feeling: creative devices, such as photographs and emotional language consideration: discounts and “2 for 1” offers Five Key strategies to build a strong brand be positioned in consumer’s minds (what’s the most relevant position for yoru brand? Is your brand the most luxurious, easiest to use, or does it stand for a feeling or idea? Your position should reflect the unique aspects of your products and company images, ideally, it should be a position your competitors cannot claim) have a focused target (focus on your targeted customers and make sure your messges are relevant to your specific target) have consistent brand elements have consistent, multimedia marketing support (mixture of media and marketing support is needed, print/TV ads, promotions, direct mail, etc) 5. evolve as consumer’s needs change How is brand equity created by using brand elements (analyze a brand to determine the sterengths and weaknesses of its specific brand elements in a given scenario) brand elements --brand name --logo --brand symbol --characters --slogans --packaging --colors Five criteria for strong brand elements --memorability ( to use easy memorable word, image, etc) --meaningfulness ( meaningful word/slogn conveys benefit) --transferability(part of brand elements, such as logo, would be used for full product lines or in other country market) --adaptability (updated to be contemporary) --protectability(registerd trademarks,etc) “First impression” of brand is important How to build brand awareness There are two types of brand awareness --brand recognition: the ability to confirm the band ( help to motivate purchase when purchase decision are made in the store, or branded products are physical present) --brand recall: the ability to retrive brand from memory (help to motivate buy if branded products are not physical present in front) Market activities to build strong brand awareness conveying a relevant message to a target audience focus on benefit/solution attractive to your audience creating familiarity in multiple forms of media to use mixture of media, TV, radio, magazine, internet repeating a consistent message to do this over a period of time In summary, to choose the right message for the right target and using the right mix of media is essential ( repeat a consistent message is important) How to build a positive brand image? Brand image is created through brand associations. It is consumer-driven Each consumer has different associations with brands These associations in consumer’s memories are created through ---direct experience with a brand, such as try-on samples,etc ---indirect experience, hearing from others ---Media messages brand associations need to be strong, favorable, and consistent Three types of brand image benefits --product-oriented benefits --symbolic benefits --experiential benefits In summary, building a positive brand image is the result of a variety of activities as advertising, sales promotion, and publicity. Marketers use the tolls to convey product-oriented, symbolic and experiential benefits How to Analyze whether a brand has been effectively positioned in the marketplace First, consider how your brand is different from other brands in your product category. The term positioning involves to place a brand occupies in a consumers’s mind in In relation to the competition Brand manager’s goal is to identify your brand’s position And ensure that consumers recongnize your brand’s strength over other brands Five basic types of positions which help to differentiate products 1. best or leader: the brand claims attributes that are superior to other brand 2. Against the competition: claims a key differenc from a well-known competitor 3. Product attribute/feature 4. Niche position: ability to attract a specific target 5. Repositioning Marketers need to be sure brand difference are relevant and meaningful to the target audience How do you decide which of above positioning is best for U? To begin the process of brand positioning, You have to take a close look at the marketplace and selling environment Four Key steps 1. determine a specific target audience 2. identify key competitors 3. recognize similarities to competitors brands 4. determine a key point of difference, which is relevant to your target How marketing program involving product, pricing and distribution channels contribute to building brand equity Marketing programs convey message to target and help to build brand equity The Key to build brand equity is having full knowledge of how to effectively use Marketing programs ---Product strategies to build brand equity Product is at center of brand equity Three product strategies to build brand equity 1. Product design/features must meet the needs of the consumer 2. Product must achieve an acceptable level of perforemance in relation to the price 3. there is quality customer service after the sale there are many product elements that influence your perceptions of a brand ---product’s brand name --product packaging ---design of the product ---attributes, features, ingredients ---product performance ( reliability, durability, customer sevice) how consumer service activities help brand equity --starting a consumer service department --conducting customer surveys ---maintaining information of customers --creating loyalty or frequency programs ---hosting special customer events How pricing strategies build brand equity Marketer muchs establish a price that will best fil their brand’s identity, market’er goals, and meket situation Three pricing strategies 1. penetration (set a bargain price for brand to introduce new product) 2. skimming set a high price to establish high qualith brand image) 3. everyday value pricing to set cnnsistent , stable price how do you decide which pricing strategy is right for your brand?Brand manager must consider many factors,such s costof marking and selling their products, price ofcompeting brands, overall mkret situation posted by Tom's MBA notes at 11:34 AM | 0 comments Thursday, February 10, 2005 Competitive Marketing Strategy Notes Competitive Marketing strategy Competitive Marketing Strategy Finding, developing and profiting from new market opportunities For example 1. increasing demand for computer for large national owned companies 2. to develop the web hosting and IPVPN service 3. provided managed network for clients 4. provided not only network service but also focus on provide network solution service to customer 5. to adjust the price/promotion and to meet customer’s demand for lower-end/cheap mobile phone. Three methods or type to find new opportunity -- provide product with short supply -- improve existing product -- supply the new product The responsive marketing ----filling customer's needs The anticipative marketing —emerging need/trendneed- The shaping marketing —new product/service To use different marketing strategy and method such as for new product (need-shaping marketing) Under different situation, market and environment, company has to use various marketing strategy so as to keep competitive position. Customers not only buy one product or service, they buy the whole package, including product, packaging, service, image, brand name, and other peripheral benefits of product/service. Sometimes, one of these associated benefits become the key factor in customer’s purchase decision In summary, company sell the value to customer, and has to offer extra services/benefits and improve the value they provide to customer. The three value-driving strategies we may adopt ---Offering lower prices (reduce cost or reduce service) ---Help customer reduce their cost ---Provide more benefits (convenience, customization, better service, fast service, excellent guarantee, membership benefits, coaching/training) The result, to differenciate your product with competitorsm ti gaub competitive position, then gain market share increase/revenue, finally increase value to shareholders To use internet as marketing tool