Download Brands by Sveinn Eldon

Brands
by Sveinn Eldon
2009
The Trademark
 Branding was orginally an invention
needed as mass production and the
mass market developed
 The role of the trademark was to
distinguish a specific product
competing products in a very
cluttered market space
 The focus was on the reassurance
funtion
Remember me....
 The objective was to get people to
remember a specific brand
 Mass communication channels were used to
hammer in the trademark and its basic
promises to the customer
 The purpose was to create a trademark the
customer was familiar with and could trust
 The trademark promised a consistent
experience
The Brand
 The brand is a more dynamic concept than
the trademark. The brand communicates
the identity of the company or product
 The brand was supposed to stand for some
unchanging core values that defined the
brand
 These core values postioned the product or
the company in relation to other companies
or products in such a way that they were
perceived to be unique in the mind of the
target group
Promises, promises...
 ”Trademark identifies a product, a service,
a corporation. A brand identifies a promise.
It is more than a trademark. It is a
trustmark of enormous value.” (L. Light)
 ”In essence, brands can speed up and
simplify consumers choices by acting as a
shorthand device enabling rapid recall of
information from memory.” (De
Chernatony)
The Difference Between Product and
Brand...
 The product includes characteristics such
as: scope, quality/value, uses, and
functional benefits
 The brand includes these and much more:
user imagery, country of origin,
organizational associations, symbols,
brand/ customer relationships, selfexpressive benefits, and emotional benefits
(Aaker)
 Consumers may perceive many different types of risks
in buying and consuming a product:
 Functional risk—The product does not perform up to
expectations.
 Physical risk—The product poses a threat to the
physical well-being or health of the user or others.
 Financial risk—The product is not worth the price
paid.
 Social risk—The product results in embarrassment
from others.
 Psychological risk—The product affects the mental
well-being of the user.
 Time risk—The failure of the product results in an
opportunity cost of finding another satisfactory
product.
Brand Equity...
”...customer based brand equity is defined as
the differential effect that brand knowledge
has on consumer response to the
marketing of that brand. A brand is said to
have positive customer –based brand
equity when customers react more
favorably to a product and the way it is
marketed when the brand is identified as
compared to when it is not.” (Keller)
Unique Associations....
 ”To create diferential response that leads to
customer based brand equity, it is
important to associate unique, meaningful
points of difference to the brand to provide
a competitive advantage and a reason why
consumers should buy it.” (Keller)
 The more positive associations the brand
provokes in the minds of the customers,
the greater the brand equity.
Global Brand Aspects
To build brand equity, it is often necessary to create
different marketing programs to address different
market segments by:
1. Identify differences in consumer behavior
 How they purchase & use products
 What they know & feel about brands
2. Adjust branding program
 Choice of brand elements
 Nature of supporting marketing program
 Leverage of secondary associations
What to consider before using brand abroad
 How appropriate is the positioning? What is
the existing level of awareness? How
valuable are the core brand associations,
points-of-parity, and points-of-difference?
 What changes should we make to the
positioning? Do we need to create any new
associations? Should we not re-create any
existing associations? Should we modify
any existing associations?
 Can we still use the same marketing
activities? What changes should we make?
What new marketing activities are
necessary?
Ten Commandments of Global Branding
 Understand similarities and differences in the global branding
landscape
 Don’t take short-cuts in brand-building
 Establish marketing infrastructure
 Embrace integrated marketing communications
 Cultivate brand partnerships
 Balance standardization and customization
 Balance global and local control
 Define operable guidelines
 Implement a global brand equity measurement system
 Establish effective lines of communication
A Personality...
 Branding is all about internalisation.
The objective is to get the customer
to internalise the brand identity
 The brand is to be understood as a
personality
 Integrated marketing communication
has become all important
 There should be a relationship
between the customer and the brand
Express yourself...
 ”Brands and products can become symbols
of a person’s self concept. A brand can
thus provide a way for a person to
communicate his or her self image.” (David
Aaker)
 We aspire to be something and to tell
ourselves and others that thats what we
are. We buy products that we consider to
express the identity we want to have
 Ferrari owners often want to prove to
themselves and others that they have the
means to buy such a car
Convince yourself...
 We do not only want to tell others
who we are (or want to be), we also
use products and brands to tell
ourselves.
 By thrifty shopping we tell ourselves
(and sometimes others) that we know
what we are doing when we shop. For
instance, by buying good quality, that
we recognize good quality.
Fools gold...
 If we have been persuated by a
salesman to buy a product or a brand
we know very little or nothing about,
we often feel unsure and even a little
embarrased. We do not really know if
we bought something worth buying,
and that makes us uneasy. We do not
like being made fools of (even if no
one else finds out).
Extended Brand
 The third stage of the branding evolution is
the extended brand
 A trademark was measured by recognition
and a brand by customer preferences
 EB is measured by the level of engagement
that the customer has towards a specific
brand
 The customer is no longer an object but a
subject, an associate
A Club...
 Formerly the customer was ’manipulated’ by
advertising and othe promotion activities
 EB regards the customer as a partner, as a coauthor of what the brand stands and conveys
 The customer is now like the member of a club
vis-a-vi the brand
 The post-purchase phase has become all
important, it is then that there is a true basis
for a meaningful relationship with the
customer. He may for instance need
reassurance that he has made the right choice
by buying the product
A meaningful realationship...
 No meaningful relationship is created over
night, it takes time...
 The purpose of EB is not to convey the core
values of the company or product to the
customer, it is about common creation of those
values
 Every customer has his own subjective
understanding of the brand and its core values
and his own preferences what he would like it
to stand for. The brandbuilding effort should
consist in helping the customer to create this
understanding, focusing it
Who am I...
 Human beings make sense of the world, to
a large measure, in terms of how they see
themselves
 Paradoxically, how they see themselves also
depends on how they make sense of the
world
 Peoples image of themselves is dynamic
not static, it evolves
 The meaning brand conveys must evolve as
well or the customer ”grows out of it”
Listen...
 Rather than using heavy advertising
and promotion to convey a message
to the customer, the direction of
communcation is now reversed
 The customer is now the party with
the message, he has an oppinion
 The customer is also the marketer.
Word of mouth is more important
than ever
What a relationship is all about...
 The has to be a reason for any
relationship
 The reason for a relationship with a
brand, should enable the company to
serve the customer better with new
or modified products and services
 Is the core of Pampers the diaper or
the wellbeing of babies?
The thought behind the brand...
 The thought behind the brand should
be clear and communicated in a crisp
and clear manner
 The thought behind the brand can
then give rise to many different ideas
of how best to realise that thought
 Nokia’s ”connecting people” is a good
example
 The End