Docstoc

Steps in Corporate Brand Building

Document Sample
Steps in Corporate Brand Building Powered By Docstoc
					Building, Measuring, and Leveraging
           Strong Brands



           Professor Steve Hoeffler


Beta Gamma Sigma: Atlanta Area Alumni Chapter

           Tuesday, February 19th




                                                1
       Branding: Roadmap and Sources

1) Define Brand Equity
2) Evaluate a Model for Building Brand Equity
3) Use Starbucks example throughout for “hands-on” learning

Sources:
1) Strategic Brand Management
           by Kevin Lane Keller
2) The Marketing Advantages of Strong Brands
           by Steve Hoeffler & Kevin Lane Keller
           (Journal of Brand Management, Aug, 2003)
3) Building Brand Equity through Corporate Societal Marketing
           by Steve Hoeffler and Kevin Lane Keller
           (Journal of Public Policy and Marketing, Spring, 2002)
4) How Social-Cause Marketing Affects Consumer Perceptions
        by Paul Bloom, Steve Hoeffler, and Kevin Lane Keller
           Sloan Management Review, Winter 2006
                                                                    2
        First: Lets understand what a brand is
  What Do You Think Of When You Hear?


                        Cadillac




At your table -- discuss all of the thoughts that come to mind   3
         Understanding brands:
         How information about brands is stored

   Associative Network Memory Model
        network of nodes and links
        nodes: stored information or concepts
        links: strength of the association between nodes

   Accurately portrays in detail all salient brand associations and
    responses for a particular target market (e.g., brand users)
        Can create a mental map by asking consumers for their top-of-mind brand
         associations (e.g., “When you think of this brand, what comes to mind?”).
             Performance (product-related)
             Imagery (non-product-related)


   Recall: based on the concept of spreading activation

                                                                               4
Starbucks Mental Map - Team Exercise
        Components of Brand Knowledge:

   Brand Awareness = strength of the brand node or trace
    in memory
       Brand Recall     (retrieval given need, product category or some cue)
            Key to Recall: linkages to Product Category, Purchase Situation,
             Usage Situation

       Brand Recognition        (confirm prior exposure)


   Increase familiarity through repeated exposure
       Hence the importance of Integrated Marketing Communications

   Use a wide range of communications options
                  Advertising, Promotions, Sponsorship, PR

   Depth versus Breadth of Awareness
       Amazon example
                                                                                6
7
          Components of Brand Knowledge:
          BRAND IMAGE

   Brand Image = consumer perceptions of the brand
    as reflected by the associations held in memory
   Brand Meaning based on the number and content of
    nodes that are connected to the brand in memory
   For competitive advantage need:
       Strong (based on amount of processing)
               (personal relevance, consistency)

       Favorable (based on consumer needs)

       Unique (associations not shared by competitors)

                                                          8
     Framework for understanding how strong
     brands gain an advantage: CBBE Model

    Customer Based Brand Equity (CBBE) = the
    differential effect that brand knowledge has on
    consumer response to the marketing of the
    brand
   Differential Effect (necessary)
   Brand Knowledge (in the minds of consumers)
   Consumer Response (perceptions, preferences, behavior)




                                                             9
        Building Brand Equity
        NEW FRAMEWORK

   Most research on brands has focused on
    advantages of strong brands
   Less is known about the most effective ways to
    build brand equity

   New Framework: Core Brand Values Pyramid
            developed by Kevin Keller
       building blocks to accomplish necessary steps to
        building brand equity


                                                           10
                               BRAND PYRAMID

  Stages of Brand              Building          Blocks          Branding Objective at
   Development                                                       Each Stage

4. RELATIONSHIPS =
4. RELATIONSHIPS =                                                     INTENSE,
                                                                        INTENSE,
What about you & me?
 What about you & me?                RESONANCE                      ACTIVE LOYALTY
                                                                    ACTIVE LOYALTY

                        COLD                               HOT
                                                                         POSITIVE,
                                                                         POSITIVE,
  3. RESPONSE =
  3. RESPONSE =                                                        ACCESSIBLE
                                                                       ACCESSIBLE
  What about you?
  What about you?              JUDGMENTS       FEELINGS                REACTIONS
                                                                        REACTIONS




                                                                   STRONG, FAVORABLE
                                                                    POINTS-OF-PARITY
  2. MEANING =
  2. MEANING =                                                       & UNIQUE BRAND
   What are you?
   What are you?          PERFORMANCE                IMAGERY         & DIFFERENCE
                                                                      ASSOCIATIONS


                                                                        DEEP, BROAD
                                                                        DEEP, BROAD
  1. IDENTITY =
  1. IDENTITY =
                                          SALIENCE                         BRAND
                                                                           BRAND
   Who are you?
    Who are you?                                                        AWARENESS
                                                                         AWARENESS
           RECENT EXAMPLE: (COLD path of pyramid)
           Building Utilitarian associations to a Brand

   Cadillac transforming their image via performance
          From Car and Driver Review:
               “With a folding hardtop that completely disappears at the touch of a
                button, the XLR presents a sleek and clean profile”
               “Under the XLR’s hood lies its most significant major mechanical
                distinction – the 4.6 liter Northstar V-8…upgraded in a variety of ways
                for improved performance, emissions, and fuel economy
          New Ad Strategy is to move from heritage to performance
               Early Ads showed classic Cadillacs morphing into models (heritage)
               New Ads focus on performance (engineering & speed)

   Benefits to revitalizing the Cadillac brand
          Average age of buyers has dropped
          Resale values are rising

                                                                                 12
Now What Do You Think Of?




                            13
          Brand Positioning
   Essence: Brand has some sustainable competitive advantage
    (SCA) or unique selling proposition (USP) that gives consumers a
    compelling reason to buy that particular brand

   Competition-Based Positioning
        Identify the Appropriate Category                                      Brand Essence
        Distinguish from Other Category Members on Important Dimension
        Strongest Positions: Brand has Clear Point of Difference on Benefit
         that Prompts Category Use
                                                                               Abstract Benefits
             Example: Tide -- superior cleaning power


   Image-Based or Goal-Based Positioning
        Depict Brand or Category as way to Satisfy Consumer Goal
                                                                                  Benefits
        Laddering Up – Inferences are like rungs on a ladder and become
         more abstract and general as you go up
                                                                               Attribute/Image

   General Belief: Abstract > Competition
                                                                                         14
Recent Example: NASCAR
 Associations  Positioning  Behavior




                                     15
Recent Example: NASCAR
Associations  Positioning  Behavior




                                    16
Recent Example: NASCAR
Associations  Positioning  Behavior




                                    17
Recent Example: NASCAR
Associations  Positioning  Behavior




                                    18
        Brand Positioning:
        Understand Brand Meaning

   Core brand associations
       Set of abstract associations that characterize the 5-8 most
        important aspects or dimensions of a brand.
       Can serve as the basis of brand positioning in terms of how they
        relate to points-of-parity and points-of-difference
       Challenge is to maximize the “coverage” of the mental map to
        include all relevant associations while making sure each core
        brand associations is as distinct as possible




                                                                      19
     Starbucks Core Brand Associations
     Team Exercise


1)                    2)


3)                    4)


5)                    6)




                                         20
Brand Positioning
Conduct Competitive Analysis

   Competitive frames of reference
        Nature of competition
        Target market


   Points-of-parity – shared brand values
        Necessary
        Competitive


   Points-of-difference – unique brand values
        Desirable
        Deliverable




                                                 21
     Brand Positioning
     Identifying & Choosing POP & POD

   Desirability criteria (consumer perspective)
       Personally relevant
       Distinctive & superior
       Believable & credible
   Deliverability criteria (firm perspective)
       Feasible
       Profitable
       Pre-emptive, defensible & difficult to attack



                                                        22
     Starbucks Competitive Positioning
     Team Exercise


Competitor                  POP    POD
                        —         —
1) Fast food chains &   —         —
   convenience shops

                                  —
2) Supermarket Brands   —
  (for home)
                                  —
                        —

3) Local Café           —         —
                        —         —


                                         23
        Brand Positioning III:
        Capture Brand Essence

   Brand mantras
       Short 3-to-5 word phrases that capture the irrefutable
        essence or spirit of the brand.
            Nike = “Authentic Athletic Performance”
            Disney = “Fun Family Entertainment”
       Brand mantra must clearly delineate what the brand is
        supposed to represent and therefore, at least
        implicitly, what it is not
       Brand mantras typically are designed to capture the
        brand’s points-of-difference, i.e., what is unique about
        the brand.



                                                             24
     Brand Mantras

   To arrive at the final brand mantra, the following considerations
    should come into play.

        Communicate. A good brand mantra should define the category (or
         categories) of business for the brand and set the brand boundaries. It
         should also clarify what is unique about the brand.


        Simplify. An effective brand mantra should be memorable. As a result, it
         should be short, crisp, and vivid in meaning.

        Inspire. Ideally, the brand mantra would also stake out ground that is
         personally meaningful and relevant to as many employees as possible.


   Regardless of exactly how many words actually make up the mantra,
    however, there will always be a level of meaning beneath the brand
    mantra itself that will need to be articulated.

                                                                                  25
Starbucks Brand Mantra
Team Exercise




“? ? ?”




                         26
         Branding Takeaways
   Brand Equity lies in the minds of consumers
       Mental Maps w/ Core associations, POP/POD, etc.
   Lots of research and knowledge about the benefits that
    accrue to strong brands
   Less is known about the right way to build strong brands
   Customer Based Brand Equity (CBBE) Model is useful overall
    framework for understanding brands
   Core Brand Values Pyramid is useful framework for building
    strong brands
       Need both Performance (Cold) or Emotional Aspects (Hot)
   2 key types of positioning strategies (Competition and
    Image)
                                                                  27

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:13
posted:8/19/2011
language:English
pages:27
Description: Steps in Corporate Brand Building document sample