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Brand Management: Companies and organizations realize nowadays that one of their most valuable assets is the brand name associated with their product or service. The ability of a strong brand to simplify consumer decision-making, reduce risk and set expectation is thus invaluable. What is a brand? It’s a set of value. All are interrelated: o Engagement : get the consumer interacts with the brand o Personality : example: man/female. Five dimensions of personality and they combine subdimensions, and the latter can be made by different items:
- Sincerity: Down-to-heart (family oriented or small town), Honest (sincere and real), ex. IKEA, or old brand for example, Wholesome (original), C heerful (sentimental and friendly
- Excitement : Coca Cola, in general social media (Facebook, Youtube): Daring ( Trendy and exciting), Spirited ( cool and young), Imaginative (unique), Up-to-date (independent and contemporary)
- Competence: technology or medicine category: Reliable (hard-working and secure), Intelligent (technical and corporate), Successful (leader and confident)
- Sophistication: Chanel, Versace: Upper-class (glamourous and good looking), Charming (feminine and smooth)
- Ruggedness : Outdoorsy (masculine and western) and Tough (rugged): Rang Rover, Harley, Marlboro Sometimes we refer to category product and not just to single brand. We you ask to a consumer what they value most they answer: honest, friendly, helpful and funny. Obviously if we refer to a specific industry probably the answers will be different. o Obtaining premium o Symbolic device : use brands to transport something about herself/himself, also thanks to logo, symbolizing something about himself. Symbolic brand: related with the luxury industry, typical example to see how to build an icon. o Information about quality, price etc…: because you have interacted with it, you know things about for example quality, anything that allows you to get in touch with the brand gives you information about the brand. o Passion : create emotion connection o Loyalty : at the end we will have a loyal consumer, it’s easier to have new consumers that make consumers loyal. o Community : current theme, people are interacting on platforms and they are spending a lot of time, so building a strong community is really important for a brand, they will dedicate all their life to the brand, creating their own lifestyle. o Emotion: example on US, they did emotional spots. o Experience : a very creative company can give us a lot of example of experiences, consumers want to interact with the brand. Example: Campari, how you engage people and create for them an experience: you want to transport to the consumer emotions, appeals, in this case Campari, Canal, atmosphere WHAT IS A BRAND? Functional - > Hedonic - > Self expressive (close to the idea of brand symbolism): Consumers offer their trust and loyalty with the implicit understanding that the brand will behave in certain ways and provide them the utility. To the extent that consumers realize advantages and benefits from
purchasing the brand, and as long as they derive satisfaction from the product consumption, they are likely to continue to buy it. These benefits may not be purely functional in nature, brands can serve as symbolic devices, allowing consumers to project their self-image. Consuming such products is a means by which consumers can communicate to the type of person they are or would like to be. Branding has been around for centuries as a way to distinguish the goods of one producer from those of another. There are many different definitions of brand, this is the definition of the American Marketing Association: (AMA): “ a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition. » We can define a brand in terms of having created awareness, reputation, prominence and so on in the marketplace. Logo, symbol, packaging, design etc. identity and differentiate a brand, and we call them “ brand elements ”. If you are really successful, you can create a logo that is really easy to recognize for the consumers. How do you difference yourself from the competition? Trying to be unique and different in the mind of consumer compared to our competitor. BRAND vs PRODUCT: A product is anything that can be offered to a market attention, acquisition, use or consumption that might satisfy a need or want. It may be: physical item, service, shop, organization, person or idea. Five levels can be defined for a product:
- The core benefit level: fundamental need
- The generic product level: basic version that contains only those attributes or characteristics necessary for its function
- The expected product level: set of attributes or characteristics that buyers normally expect
- The augmented product level: includes additional attributes, benefits, or related services that distinguish the product from competition. Here takes place the competition. Even though the new competition is between what they add to their factory output in the form of packaging, services, advertising etc.
- The potential product level: includes all the argumentations and transformations that a product could ultimately undergo. The brand goes beyond the single product, it is something that makes the product unique. “A brand is a product but one that adds other dimensions that differentiate it in some way from other products designed to satisfy the same need”. These differences may be rational and tangible (related to the performance of the product) or more symbolic, emotional and intangible (related to what the brand represents). A branded product may be:
- Good and products : Coca Cola: one challenge for many business-to-business brands is how to de-commoditize themselves to create product and service differences. Another example of the increasing realization of the important role that brands play in the marketing equation is with high-tech products, marketing skills are playing an increasingly important role in the success of high-tech products.
- Services: Intesa San Paolo: they are more intangible and more likely to vary in quality, depending on the particular person or people involved in providing the service. Brand symbols may also be crucial because they help to make the abstract nature or services more concrete. Brands can help to identify and provide meaning to different services. Also online products and services.
Can anything be branded? To brand a product it is necessary to teach consumers “who” the product is, giving it a name and using other brand elements to help identity it. To brand a product or service, it’s necessary to give consumer a label for the produce and to provide a meaning for the brand. The key to branding is that consumers perceive differences between brands in a product category. For example, consider how marketers have been able to brand what were once commodities (a product so basic that it cannot be differentiated in the minds of consumers). Over the years, they become highly differentiated as strong brands have emerged, as coffee, beer (Heineken), ketchup (Heinz) and even water. The success was that consumers became convinced that products in the category were not the same. In some instances, such as with groceries, marketers convinced consumers that a product was not a commodity and could vary appreciably in quality. BRAND EQUITY: Brand equity is introduced as a tool to interpret the potential effects of brand strategies, that arise in 1980s. The emergence of brand equity has raised the important of the brand in marketing strategies and provided focus for managerial interest and research activity. But at the same time, the concept has been defined in several ways for a number of purposes, resulting in confusion and even frustration. Branding is about endowing products and services with the power of brand equity. Brand equity relates to the fact that different outcomes result from marketing a product or service because of its brand that if that same product or service had not been identified by the brand. Branding is about creating differences:
- Differences in outcomes arise from the added value
- This value can be created for a brand in many ways
- Brand equity provides a common denominator for interpreting marketing strategies and assessing the value of the brand
- There are many ways in which the value of a brand can be manifested or exploited to benefit the firm It’s the value of the brand, from bot a company perspective and consumer perspective. It not one direction relationship, the brand wants an interaction with the consumers, because also the brand can learn from the consumer. Brand Value for Consumers: Consumers: Brands identify the source or maker of a products and allow consumers to assign responsibility to a particular manufacturer or distributor. A brand takes on a special meaning to consumers, because of past experience and its marketing over years. They find out which brands
satisfy their needs and which ones do not. If consumers recognize a brand and have some knowledge about it, then they do not have to engage in a lot of additional thought or processing information (lower search costs). Products have been classified into 3 categories according to their attributes and benefits: a) search goods: evaluated by visual inspection as size, colour, style, weight b) experience goods: where the experience is necessary as durability, service quality or safety c) credence goods: products attributes may be rarely learned, e.g. insurance coverage Brands can reduce the risks in product decisions. Consumers may perceive many different types of risks in buying and consuming a product:
- functional risks : not perfume to expectations
- physical risk : poses a threat to the physical well-being or health of the user or others
- Financial risks : the product is not worth the price paid
- Social risk : result in embarrassment
- Psychological risk : affects the mental well-being of the user
- Time risk : the failure of the products results in an opportunity cost of finding another satisfactory product. Brands take on unique, personal meanings for consumers that facilitate their day-to-day activities and enrich their lives. Brand - > consumer: thanks to incentives, information, rewards, enhanced brand experience, and to put this in action:
- Brand equity: consumer perspective: the difference with respect to the value perceived by the customer, between a "product" sold under the brand name and the same product sold without a brand.
- Brand equity: company perspective: The difference with respect to the value of the company including the brand name and the company without a brand. Branding challenges and opportunities:
- Savvy customers (expert): consumers and business have become experienced with marketing, more knowledgeable about how it works and more demanding. In this postmodern marketing world, many believe that it’s difficult to persuade consumers with traditional communication. In this period is increased the amount of information accessible ad consumer review platform and media. Other marketers believe that what consumers want from products and services had changed, they are talking about “lovemarks” and “trustmarks”, It’s not enough just to be respected. 2. Brand proliferation: especially due to increasing amount of brand extensions
- Media fragmentation: (content or platform, and device) another important change is the erosion or fragmentation of advertising media and the emergence of interactive and non- traditional media, promotion and other communication channels. For several reasons, marketers have become disenchanted with traditional advertising media, especially television.
- Increased competition: marketplace has become more competitive. Both demand and supply side factors have contributed to an increase in competitive intensity. On the demand side, sales growth for brands can only be achieved at the expense of competing brands by taking away some of their market share. On the supply side, competitors have emerged due to a number of factors such as: globalization, low-priced competitors, brand extensions, deregulation.
- Growing and sustaining brand equity. Strategic brand management process: How do you build a strong brand? CBBE What is Customer Based Brand Equity? The basic premise of the CBBE is that the power of a brand lies in what customers have learned, felt, seen and heard about the brand as a result of their experiences. The power of brand lies in what resides in the minds of consumers (necessity of building a strong brand). CBBE: CBBE is « the differential effect that brand knowledge has on the consumer response to the marketing of a brand ». It incorporates theoretical advances and managerial practices in understanding and influencing consumer behaviour. It provides a unique point of view as to what brand equity is and how it should be built. A brand is said to have a positive customer-based brand equity when consumers react more favourably to a product and the way it is marketed when the brand is identified than when it is not. A brand with positive CBBE might result in consumers being more accepting of a brand extension, less sensitive to price increases and withdrawal of advertising support or more willing to seek the brand in a new distribution channel. A brand is said to have negative CBBE if consumers react less favourably to marketing activity for the brand compared with an unnamed of fictitiously named version of the product. è The determinants: o Differential effect: if no differences occur, then the brand name product is essentially a commodity, competition could be based on price. o Brand knowledge: Knowing the brand and being familiar with it, or thanks to the experience
o Consumer response to marketing: Strong, favourable and unique associations connected to the brand, we refer to preferences, perceptions and behaviours related to all aspect of marketing. Anything that you associate when you say a brand name is belong to the brand knowledge, as: Apple: creative, iPhone, fun, cool or Coca Cola refreshment, affordability, taste, accessibility. It’s not wrong or right. The simplest way to illustrate what is meant by CBBE is to consider some tyical results of product sampling or comparison tests. Few differences consumers could detect when they did not know the brand names. Brand equity as bridge: it provides marketers with a strategic bridge from their past to their future: è Brand as a reflection of the past: money spent each year on manufacturing and marketing products should not be considered as “expenses” but as “investments”, we have to consider the quality of the investments and not necessarily the quantity. è Brands as a direction for the future: the brand knowledge created by these marketing investments dictates appropriate and inappropriate directions for the brands. Consumers will decide, based on their brand beliefs, attitudes and so on. BRAND KNOWLEDGE: is the key to creating brand equity because it creates the differential effect that drives brand equity. What marketers need, then, is an insightful way to represent how brand knowledge exists in consumer memory. An important model of memory is: the associative network memory model that views memory as a network of nodes and links, in which nodes represent stored information or concepts and link represent the strength of association between the information or concepts. Any type of information can be stored in the memory network, including information that is verbal, visual, abstract or contextual in nature. Brand knowledge can be characterized by: a) Brand awareness b) Brand image/association
o Learning advantages : the first way that brand awareness affects decision-making is by influencing the formation and strength of the brand associations that make up the brand image. The first step in building brand equity is to register to brand in the minds of consumers, and the choice of brand elements may make that task easier or more difficult. o Consideration advantages : raising brand awareness increases the likelihood that the brand will be a member of the consideration set, the handful of brands that receive serious consideration for purchase. Research has shown that consumers are rarely loyal to a single brand. Because consumers typically only consider a few brands for purchase, making sure that a brand is in the consideration set is likely to exclude other brands. (Go to Burger King and not to another fast food chain). o Choice advantages : brand awareness can affect choices between brands in the consideration set, even if there are essentially no other associations to those brands. In low-involvement decision setting, a minimum level of brand awareness may be sufficient for product choice, even in the absence of a well-formed attitude. Low involvement results when consumer lack either purchase motivation (e.g. when consumers do not care about the product or service) or purchase ability (e.g. when consumers do not know anything else about the brand in a category). Brand Awareness Pyramid: Top of Mind: the first brand that comes to mind, and is mentioned spontaneously, within a specific category of goods. BRAND AWARENESS: is created by increasing the familiarity of a brand through repeated exposure, although this is generally more effective for brand recognition than for brand recall. è Depth: how easily customers can recall or recognize the brand (Barilla or Ferrari Logo, or Pantene logo in a shelf full of shampoo product), in general not every company has its strong brand. Anything that causes consumers to experience a brand name, logo, packaging or slogan can potentially increase familiarity and awareness of that brand element. To build awareness, it’s often desirable to develop a slogan or a jingle that creatively pairs the brand and the appropriate category or purchase or consumption cues. è Breadth : range of purchase and consumption situations where the brand comes to mind, as: fun activity on weekends, great experience for kids, meet other people with the same interest, become a special member, watch on TV.
In short, brand awareness is created by increasing the familiarity of the brand through repeated exposure (for brand recognition) and strong associations with the appropriate product category or other relevant purchase or consumption cues (for brand recall). BRAND ASSOCIATIONS: A positive brand image is created by marketing campaigns that link strong, favourable and unique associations to the brand in memory.
- Strength: How deeply does a person think about product information and relates it to existing brand knowledge. Two factors facilitating such strength of associations are the relevance of the information and the consistency with which it is presented over time. Brand attributes are those descriptive features that characterize a product or service. Brand benefits are the personal value and meaning that consumers attach to the product or service attributes. WOM or other non-commercial source of information (consumer organizations, the press, etc..) can also create strong association. WOM is likely to be particularly important for restaurants, entertainment, banking and personal services. Marketing communication campaigns attempt to create strong brand associations and recalled communication effects through a variety of means. These include using creative communications that cause consumers to elaborate on brand-related information and relate it appropriately to existing knowledge, exposing consumers to communications repeatedly over time and ensuring that many retrieval cues are present as reminders.
- Favourability: Favourable brand associations for a brand are those that are desirable to consumers and are successfully delivered by the products and conveyed by the supporting marketing campaigns. Favourable brand associations are created by convincing consumers that the brand possess attributes and benefits that satisfy their needs and wants, such that they form positive overall brand judgments. Thus, favourable associations for a brand are those that are desirable to consumers and are successfully delivered by the product and conveyed by the supporting marketing campaign. Desirability depends on 3 factors: a. How relevant consumers find the brand association
CBBE
Brand
Awareness
Brand
Association
Strenght Favourability
Uniqueness
BRAND BUILDING BLOCKS:
From the end: Brand salience: Achieving the right brand identity involves creating brand salience with customers. Brand salience relates to aspects of the awareness of the bran – how often and easily the brand is
evoked under various situations – how pervasive is this brand awareness? Brand awareness is more than just customers knowing the brand name and having seen it, perhaps even many times, it involves linking the brand name, logo, symbols and so forth to certain associations in memory. Particularly in terms of: breadth and depth of awareness, product category structure, strategic implications. A salient brand is one that has both depth and breadth of brand awareness, so that customers always make sufficient purchases and always think of the brand across a variety of setting in which it could possibly be employed or consumed. Although a myriad of different types of brand associations are possible, brand meaning broadly can be distinguished in terms of more functional, performance-related considerations versus more abstract, imagery-related considerations. Thus, brand meaning is made up of two categories of associations that exist in customers’ minds related to performance and imagery, with a set of specific sub-categories within each. These associations, we will see it, can be formed directly or indirectly. Brand performance: “The ways in which a product or service attempts to meet customers’ more functional needs.” As such, It refers to the intrinsic properties of the brand in terms of inherent product or service characteristic. It’s more about objectivity: is it reliable and effective? Objective assessment of brand quality, there are 5 important types of attributes and benefits that often underlie brand performance: o Primary ingredients (low, high, medium…) and supplementary features (allow for customization and more versatile, personalized use) o Product reliability : refers to the consistency of performance over time and from purchase to purchase, durability : refers to the expected economic life of the product, and serviceability: refers to the ease of servicing the product if it needs repair. Thus, perceptions of product performance are affected by factors such as the speed, accuracy and care of delivery and installation, the promptness, courtesy and helpfulness of customer service and training, and the quality of repair service and time involved. o Service effectiveness: refers to how completely the brand satisfies customers’ service requirements , service efficiency: refers to the manner in which these services are delivered in terms of speed, responsiveness and so forth, and service empathy refers to the extent to which service providers are seen as trusting, caring and having the customers’ interests in mind. o Style and design : size, shape, materials and colour. Thus, performance may also depend on sensory aspects, such as how a product looks and feels and perhaps even what it sounds or smells like. o Price: the pricing strategy adopted for a brand can dictate how consumers categorize the price of the brand, e.g. low-medium-high, and how firm or flexible that price is seen as being, e.g. frequently or infrequently discounted. Brand imagery: «Brand imagery is how people think about a brand abstractly, rather than what they think it actually does». Brand imagery deals with the extrinsic properties of the product or service, including the ways in which it attemps to meet customers’ psychological or social needs. it’s more about the emotional part. Can be created: o Directly: through consumer brand experience, when you create this environment in which people get interacting with your brand, from a consumer’s experiences and contact with the product, brand, target market or usage situation
è Bentley: Historic brand of the British luxury car (London, 1919) - for elegance, exclusivity and power. Exquisitely British, powerful, elegant, individual and winning. Brand Value Proposition: Iconicity in distinctive design and precious materials, comfortable and refined environment, exceptional performance achieved with advanced technology Assessing brand personalities in practice:
- Brand Asset Evaluator (young and Rubicam)
- Brand Asset Valuator is a metric applied for the measurement of brand value of an entity Barilla Case: a brand experience: Ø Target: families Ø Project idea: Barilla invites you to enter its world to enjoy the pleasure of cooking, eating and staying together. The Italian wat, within and “education” and enjoyable context for you and your family. Ø CASA BARILLA: Casa Barilla is an itinerant initiative in various cities of Italy in the name of conviviality and good tastes. Casa Barilla offers a rich program of activities: competitions including cooking enthusiasts, lessons and seminars held by professional chefs and lots of entertainment for the little ones. Ø Casa Barilla DNA embodies Barilla brand key value: Italian food enjoyment, highest quality, joy of being together, in an outstanding entertainment space for families & friends. Coming to Casa Barilla means experiencing style, food, culture, delicious pasta and fun for the whole family.
CASA BARILLA > Key experiences:
- Cooking entertainment: People become protagonist in a cooking competition - > barilla cooking contest: a joyful and very involving activity
- Italian food culture: cooking classes with tips and tricks from professionals
- Taste and sharing: people are invited to enjoy the “Barilla Meal” in a convivial spirit and atmosphere - > tasting of typical Italian recipes in a joyful atmosphere: tasting of Barilla recipes all day long and free tasting, with bigger portions at meal times (lunch and dinner)
- Piccolini edutainment: special area for kids, with ad hoc program and games - > children corner: 50m2 place to welcome children with their parents and various playful activities
- Barilla world: exhibition featuring products, history and tradition of Barilla - > space dedicated to Barilla pasta and family history over the years, photos, key visuals and evolution of Barilla brand, exhibit of Barilla commitment for quality of ingredients and nutrition.
- Barilla shop: all ranges of Barilla pasta and Barilla sauces made available, objective of communication on ranges, strong, success of the concept in particular tasted recipes.
- Casa Barilla, where? Germany, France, Italy Casa Barilla Evolution: how to improve brand resonance: o Revamp the contest and fill them with emotion o Increase involvement and relevance into people lives o 2 - way communication with people (dialogue) o Unique brand experience: global branded format Casa Barilla - > Strategy:
BRAND FEELING:
Brand feelings are customers’ emotional responses and reactions with respect to a brand. They also relate to the social currency it evokes. Transforming advertising: as advertising designed to change consumers’ perceptions of the actual experience of using the product. The following are six important types of brand-building feelings.
- Warmth: sense of calm or peacefulness
- Fun: amused, playful and cheerful
- Excitement: a brand that makes consumers feel energized
- Security: produces safety, comfort and self-assurance
- Social approval: consumers have positive feelings about the reactions of others.
- Self-respect: consumers feel better about themselves. The first three types of feelings are experiential and immediate, increasing in level of intensity. The latter three types are private and enduring, increasing in level of intensity.
BRAND RESONANCE:
Ø Consumer-brand relationship and consumer-brand identification. Brand resonance refers to the nature of this relationship and the extent to which customers feel they are “in sync” with the brand. Resonance is characterized in terms of intensity or the depth of the psychological bod that customers have with the brand, as well as the level of activity engendered by this loyalty. Ø Four categories of resonance:
- Behavioural loyalty: repeat purchases, volume purchased, behavioural loyalty relates to repeat purchases and the amount or share of category volume attributed to the brand. How often do customers purchase a brand and how much do they purchase? Behavioural loyalty is necessary but not sufficient for resonance to occur.
- Attitudinal attachment: satisfaction and attachment to brand, customers should go beyond having a positive attitude to viewing the brand as something special.
- Sense of community: brand communities – identification with a brand community may reflect an important social phenomenon whereby customers feel a kinship or affiliation with other people associated with the brand.
- Active engagement: brand ambassador – intensity refers to the strength of the attitudinal attachments and sense on community. Pepsi vs Coca Cola: Brand pyramid:
