Branding for Recognition & Profit Dr. Tony L. Henthorne - - PowerPoint PPT Presentation

Branding for Recognition & Profit

• Dr. Tony L. Henthorne

Associate Dean University of Nevada, Las Vegas

Brand versus Product

Brand Product Has dimensions that differentiate it in some way from other products designed to satisfy the same need Anything available in the market for use

• r consumption, that may satisfy a

need or want Can be differentiated on the basis of:

• Packaging
• Services provided
• Customer advice
• Financing
• Delivery arrangements
• Warehousing
• Other things valued by the customers

Can be categorized into five levels namely:

• Core benefit level
• Generic product level
• Expected product level
• Augmented product level
• Potential product level

Brand Elements

• Different components

that identify and differentiate a brand

– Name, logo, symbol, package design, or

• ther characteristic
• Can be based on

people, places, things, and abstract images

To Sum Up ....

• Through branding, organizations:

– Create perceived differences among products – Develop a loyal customer base – Create value that can translate to profits

Roles that Brands Play

Strong Brands

• Are brands that have been market leaders in

their categories for decades

• But any brand is vulnerable and susceptible to

poor brand management

Factors Responsible for Branding Challenges

Savvy customers Economic downturns Brand proliferation Increased competition

Challenges to Brand Builders

Marketing Advantages of Strong Brands

Brand Image

• More deeply a person thinks about

product information and relates it to existing brand knowledge, stronger is the resulting brand association

Strength of Brand Associations

• Is higher when a brand possesses relevant

attributes and benefits that satisfy consumer needs and wants

Favorability of Brand Associations

• “Unique selling proposition” of the

product

• Provides brands with sustainable

competitive advantage

Uniqueness of Brand Associations

To Sum Up...

• To create brand equity,

marketers should:

– Create favorable consumer response (in

• ther words: brand

awareness) – Create positive brand image though brand associations that are strong, favorable, and unique

Identifying and Establishing Brand Positioning

Basic Concepts Target Market Nature of Competition Points-of-Parity and Points-of- Difference

Basic Concepts

• Brand positioning

– Designing the company’s offer and image so that it

• ccupies a distinct and valued place in the target

customers’ minds – Finding the proper “location” in the minds of consumers or market segment – Allows consumers to think about a product or service in the “right” perspective

Target Market

• Market segmentation: Divides the market into

distinct groups of homogeneous consumers who have similar needs and consumer behavior

• Involves identifying segmentation bases and

criteria

Measurable Accessible Substantial Responsive

Nature of Competition

Competitive analysis of direct competition Competitive analysis of indirect competition

Points of Parity and Points of Difference

 Points-of-difference associations  Points-of-parity associations  Points-of-parity versus points-of-difference

To Sum Up…

• To appropriately position a

brand, marketers should:

– Identify their target customers – Analyze the type of competition they might face in the identified market base – Identify product features and associations that are different

• r similar to their competitors

Positioning Guidelines

Defining & Communicating Competitive Frame of Reference Choosing Points-of-Difference Establishing Points-of-Parity and Points-of-Difference Straddle Positions Updating Position Overtime

To Sum Up ...

• Brand positioning describes how a brand can

effectively compete against a specified set of competitors

• A good product positioning should:

– Have a “foot in the present” and a “foot in the future” – Identify all relevant points-of-parity – Reflect a consumer point of view in terms of the benefits that consumers derive – Contain points-of-difference and points-of-parity that appeal both to the “head” and the “heart”

Possible Roles of Brands in the Brand Portfolio

Brand Portfolios: 3 Points

Flankers Cash Cows Low-End, Entry-Level or High- End, Prestige Brands

Flankers

• Protective or fighter brands

– To create stronger points-of-equilibrium with competitors’ brands

• Fighter brands must not be so attractive that

they take sales away from their higher-priced comparison brands

Cash Cows

• Despite dwindling sales, some brands are

retained

– Due to their sustainability without any kind of marketing

• Milked by capitalizing on their reservoir of

existing brand equity

Low-End, Entry-Level

• r High-End, Prestige Brands
• Sub-brands leverage associations from other

brands while distinguishing themselves on price

• r quality
• Role of a relatively low-priced brand: To

attract customers to the brand franchise

• Role of a relatively high-priced brand: To add

prestige and credibility to the entire portfolio

To Sum Up…

• Successful brands need to have a “foot in the

present” and a “foot in the future”

• Of the many roles that brands can play in a

product portfolio, two seem to be of most importance:

– Flanker brands – Cash cows

Thank you for your kind attention