Download The brand image helps crate loyalty.

Chapter 3
Branding Strategy
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©2005 Pearson Education Canada Inc.
The Brand
“The sum of all characteristics, tangible and
intangible, that make the offer unique.”
Brand Name
Coca-Cola
Brand Logo
Bottle Design and Red Cap
Trademark
™ Legally Protected Marks
Brands and organizations spend considerable sums
telling customers what they stand for.
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Views on Brands
“A name, logo, or symbol that evokes in customers a
perception of added value for which they will pay a
premium price.”
John Torella, J.C. Winters Group, Toronto
“A product with a personality.”
Chris Staples, Rethink, Vancouver
Marketing communications in any form has an impact
on customers’ perceptions.
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Benefits of Branding
For customers a brand offers:
1. A desired level of quality consistently
2. Psychological rewards from ownership
3. A means of distinguishing one brand
from another
The brand image helps crate loyalty.
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Benefits of Branding
For the company branding offers:
1. A means of communicating features and benefits
2. An opportunity to create and sustain an image
3. Customer satisfaction and repeat purchase
opportunity
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Brand Loyalty
“The degree of consumer attachment to a brand.”
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Recognition
Awareness of name, benefit
and package
Preference
Is useful, consumer will buy
if available
Insistence
Will search for; must have
©2005 Pearson Education Canada Inc.
Brand Equity
The value of a brand in its holistic sense to its
owners as a corporate asset. Brands have value.
Equity is derived from:
• Effective marketing strategies
• A brand’s status in the marketplace
• A brand’s position among customers
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The Top 10 Global Brands
1. Coca-Cola
2. Microsoft
3. IBM
4. GE
5. Intel
6. Nokia
7. Disney
8. McDonald’s
9. Marlboro
10. Mercedes
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$70.4
$65.1
$51.8
$42.3
$31.1
$29.9
$28.0
$24.7
$22.2
$21.4
The highest ranking
Canadian brand is
Bombardier but it is
not in the top 100
yet.
Source: Globe and Mail, July
25, 2003.
©2005 Pearson Education Canada Inc.
Brand Building
1. Identify Brand Values and Positioning Strategy
2. Plan and Implement the Marketing Program
3. Measure and Evaluate Brand Performance
4. Build Brand Loyalty and Brand Equity
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Brand Positioning
“The selling concept that motivates purchase, or the
image that marketers desire a brand to have in the
minds of consumers.”
A good positioning strategy clearly differentiates a
brand from all competing brands.
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Positioning Strategy Statements
A good positioning strategy statement is:
• Clear
• Concise
• Uncomplicated
• Addresses target needs
• Communicates a key benefit
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Sample Positioning Statement
“To reinforce our position in the credit card market,
and to establish it as the preferred choice for all future
purchases.”
VISA
All you need
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The Importance of Positioning
Market
Analysis
Target Market
Analysis
Competitor
Analysis
Positioning
Strategy
Product
Strategy
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Price
Strategy
IMC
Strategy
Distribution
Strategy
©2005 Pearson Education Canada Inc.
Positioning Strategies
• Product Differentiation
• Brand Leadership
• Head-On
• Innovation
• Price (Value)
• Channel Advantage
• Image (Lifestyle)
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Branding and IMC
There are two key decision areas:
1. Determining the appropriate brand elements to
focus on (names, packaging, symbols and
characters).
2. Devising an effective marketing communications
strategy to communicate the brand’s values and
positioning strategy.
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Packaging and Brand Image
A good package design helps build a brand.
1. The “look” of a package must be instilled in the
customer’s mind.
2. A package can differentiate one brand from another.
3. Familiarity with a package creates trust with
customers.
4. New packages create new products (product forms).
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Roles of Packaging
A good package serves three primary functions:
1. Protect the product
2. Market the product
3. Provide convenience to distributors and
consumers
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Branding by Design
Shopping goods and durable goods rely more on “style”
to create and sustain an image.
1. Lifestyle characteristics now play a key role in
design.
2. Goods are periodically redesigned to present a
contemporary image.
3. Re-branding strategies require intensive
marketing communications to identify changes.
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©2005 Pearson Education Canada Inc.