MKB2704
Consumer Oriented Marketing Communications
Week 4
BRAND MANAGEMENT : WHY DOES IMC NEED TO
BE ALIGNED WITH BRANDING?
Chapters 2, Clow and Baack (2018)
What does “brand” mean?
"A name, term, design, symbol, or any
other feature that identifies one seller's
good or service as distinct from those
of other sellers. The legal term for
brand is trademark. A brand may
identify one item, a family of items, or
all items of that seller.” American
Marketing Association
What does “brand” mean?
• The AMA definition would suggest that a company designing a
logo is creating a brand. However, industry has a more applied
conceptualisation of the term brand – see below.
• "A brand is the sum of all feelings, thoughts and recognitions -
positive and negative - that people in the target audience have
about a company, a product or service.” Steve McNamara,
AdCracker.Com.
• "A brand is a collection of perceptions in the mind of the
consumer.” Colin Bates, BuildingBrands.com
• The AMA definition really emphasises some of the different
elements of a brand, whereas industry explanations focus more
on what a brand is and does in the market place – brands
generate levels of awareness, reputation, prominence etc. in the
market place.
What does “brand” mean?
An IMC view:
1. “brands package meaning”
2. “a brand represents value to the customer,
providing both rational and emotional benefits”
In summary, a “brand transforms products into something
more meaningful than the product itself.”
IMC and branding
IMC plays a major role in the process of developing and
sustaining brand identity.
IMC tools can be used to make contacts with
customers, strengthen bonds, deliver the branding
message and build customer relationships.
Companies recognise that brand identity is an asset.
Brand equity requires the creation of well-known brands
that have favourable, strong and unique identities.
What does “brand” mean? Company Perspective
• Extension of feelings to new products
• Ability to charge more
• Consumer loyalty
• More frequent purchases
• Positive word-of-mouth
• Greater channel power
• Attracts higher quality employees
• More favorable ratings
What does “brand” mean?
A customer’s view:
A brand is what differentiates one offer from another
Brands have tangible and intangible qualities
The value is derived from both the marketer’s
activities and the customer’s activities
“I have both an emotional and a behavioural
relationship with a brand”
Role of Brand Image – Consumer Perspective
• Provides positive assurance
• Unfamiliar settings
• Little or no previous experience
• Reduces search time
• Provides psychological reinforcement
• Provides social acceptance
Brand Touch (Contact) Points
How Consumers Engage with Brands
Brand attachment involves consumers developing some kind of emotional
bond with a brand. It is used to help explain why consumers seek out and
remain loyal to specific brands
Thomson, MacInnis, and Park, 2005, Journal of Consumer Psychology , 1.
“Creating emotional brand attachment is a key branding issue in today’s
marketing world. One way to accomplish this is to match the brand’s
personality with the consumer’s self (i.e., self-congruence)”
Malär, Krohmer, and Hoyer, 2011, Journal of Marketing, 75(4), 35-52.
http://www.mindtools.com/pages/article/brand-pyramid.htm
12
Millward Brown Model consumer relationships with brands
High loyalty
Bonding – Strong emotional attachment. Brand
integral part of self-image and helps represent
who the consumer is.
Advantage – Brand perceived to have advantages
compared to competitors. Consumer associates
brand with their emotions and their sense of ‘self’.
Performance – Comparisons made with other
brands. Brand starts to have specific identity and
is on the consumer’s ‘short list’.
Relevance - Does the brand meet the wants and
needs of consumers? Is the brand worth the cost?
Low loyalty Presence – Consumer aware of brand but has
little emotional attachment to it.
See more at: http://www.mindtools.com/pages/article/brand-pyramid.htm#sthash.NA33ECBn.dpuf
Emotional and Behavioral Bonding with Brands
Brand Loyalty
• Brand loyalty is the ultimate goal of building powerful brands.
• The concept has attracted various explanations including:
• “A consistent preference and/or purchase of one brand in a specific product or service
category” (Schiffman et al., 2011, p. 627).
• “Preference by a consumer for a particular brand that results in continual purchase of
it” (Belch et al., 2011, p. 612).
• “The degree of loyalty a customer has towards a brand in favouring it over other
alternatives” (Pickton & Broderick, 2005, p. 717).
• A close examination of these explanations suggests that brand loyalty is
learned and is based on cognition and attitude formation.
• It is worth remembering that consumers can be loyal to a repertoire of
brands
Brand loyal consumers provide:
• a basis for a stable and growing market share.
• can be a major intangible asset for a company.
Strategies to Develop Brand Loyalty
Marketers work towards developing and maintaining brand loyalty among
consumers.
(Remember that it is more cost-effective to retain a customer than to have to
constantly acquire new ones!).
Some strategies include:
1.Reminder advertising to keep brand top of mind
2.Maintain prominent shelf-positions/displays in retail outlets
3.Run periodic promotions (e.g. premiums/rebates) to deter consumers from
switching brands
4.Loyalty programs to reward repeat purchases/loyal consumers
5.Build strong brand identity and emotional bonding with brand.
15
16
Core elements of a brand
Brand Identity - the contribution that all brand
elements (visual, auditory and other stimuli) make to
Brand promise – a compelling
the image of the brand.
believable statement that aligns
•Brand name: communicate product concepts,
with the core values of the firm
attributes and meaning which help position the product
and resonates with the target
in the customer’s mind.
•Brand symbol: the trade marks or ‘the mark of •Brand position - identifies the
trade’, which represents the company or product as an location a product or brand
element, word, or design.
occupies in consumers’ minds
•Packaging: the functional, tangible, storage-related
relative to competitors
aspects of a product AND an aspect of the product’s
branding.
Brand personality - where the
Brand image - how the brand is perceived from the brand becomes associated (or
customer’s point of view. These associations come the infused) with human-like
content of advertising and other marketing personality traits. It is inferred
communications. This image is reinforced by the fact by the advertising style, price,
that it is the world’s most valuable luxury brand and brand name or logo, typical
has been valued at 28.4 Billion brand users, or brand
http://www.forbes.com/companies/louis-vuitton/). endorsers.
IMC Break
A strong brand…….
Differentiates
Differentiatesa an
Product
offer from
FromitsIts
Competitors
competitors
What a
Makes a promise to consumers &
strong brand Makes a Promise to Consumers
delivers
does
Serves as the driving, unifying
force directing all functional
areas, including IMC
Developing Strong Brands
Begins with understanding why consumers buy a
brand.
• Where does your brand stand now?
• What are your objectives?
• What are you doing in terms of building your brand
and business?
• What are your brand’s strengths? Weaknesses?
• Which opportunities should be pursued first?
• Where are the pitfalls?
And they evolve..
Today
And some brands are interactive…. (creative & engaging)?
http://www.google.com/doodles/about
Building Strong Brands
• Invest in the brand
• Create awareness
• Offer authenticity or uniqueness
• Build trust
• Deliver an experience
• Offer value
• Utilise social media
• Utilise mobile phones
• Act responsibly
Components of Brand Image
Tangible Elements Intangible Elements
• Goods or services sold • Corporate personnel
• Retail outlets where the • Ideals
product is sold • Beliefs
• Advertising • Conduct
• Marketing communications • Environmental policies
• Name and logo • Corporate culture
• Packaging and labels • Country location
• Employees • Media reports
Identifying the Desired Image
• Evaluate current image
• Ask customers
• Ask non-customers
• Can be strategic
advantage
Changing an Image
• Extremely difficult
• Necessary when target market declines or product no
longer matches industry trends
• Requires more than advertising
• Begins internally – then moves outward
Creating the Right Image
• Sends clear message
• Portrays what the firm sells
• Business-to-business may be challenging
Figure 2.15 Top Vehicle Models and Brand
Imagery
Vehicle Model Percent Loyal Imagery
Ford F-150 45% Functional, reliable, leader
Honda Civic 40% Sensible, safe, smart
Toyota Camry 49% Economical, reliable, conservative
Honda Accord 44% Reliable, safe, honest
Honda CR-V 44% Sensible, economical, reliable
Chevrolet Silverado 62% Safe, honest, functional
1500
Toyota Corolla 42% Reliable, safe, functional
Ford Escape 54% Technological, sporty, powerful
Ram 1500 46% Powerful, sporty, bold
Source: Based on “Consumers on the Go: Top 10 Models in 2016,” Advertising Age’s Consumers on the Go
Fact Pack, September 28, 2015, page 20.
IMC Break
Brand Logos
• Aids in recall of specific brands
• Aids in recall of advertisements
• Reduces shopping effort
• Reduces search time and evaluation of alternatives
Today!
Tests of Quality Logos and Brand Names
• Easily recognizable
• Familiar
• Consensual meaning
• Stimulus codeability
• Evokes positive feelings
Tips on Creating or Changing Logos
• The logo is a reflection of the brand
• Creating logos requires knowledge and expertise
• Use professional designers
• Make the logo simple
• Make the logo media transferrable
Rejuvenating an Image
• Sells new products
• Attracts new customers
• Retains current customers
• Key – Remain consistent with old and new
• Takes time and effort
Three Ways to Measure a Brand
1. Brand audit
2. Brand relationship
3. Brand equity
A ‘brand audit’ is commonly used as a starting point in planning
activity. The goal is to identify what the brand means to different
stakeholders (e.g. customers, employees, retailers, lobby groups,
Govt….).
Each stakeholder is asked what they believe are the core values and
competencies of the brand. They are also asked about the brand
aspirations.
These statements are analysed and help form a statement about the
identity + personality + brand promise.
33
1. Brand Audit
INPUT Assess Define Determine Articulate
Customers Price Core values Identity
Brand
Distribution Core promise /
Retailers Personality
competencies value
Quality proposition
Employees
Performance Brand Brand
associations voice
Other Customer
stakeholders needs etc
Positioning
Brand
associations
Source: Belch, Belch, Kerr & Powell, 2012 34
2. Brand relationship
Brand relationship is the way in which consumers relate to the brand. There are a
variety of measures available one of which is the Brand Asset Valuator (BAV)
developed by Young and Rubican.
The BAV provides insight into the development of a brand and is designed to help firms
make informed decisions about how to manage their brand(s) into the future. The BAV
rates brands on a range of dimensions including:
▪ Differentiation
▪ Relevance
▪ Esteem
▪ Knowledge
http://bavconsulting.com/
Other useful resources
http://bavconsulting.com/apps/
http://young-rubicam.de/tools-wissen/tools/brandasset-valuator/?lang=en
35
3. Brand Equity
• “The value associated with the brand; the reputation that the brand
name or symbol connotes. It is the intangible value of the brand based
on the relationships with its stakeholders as well as its intellectual
property value” (Moriarty, Mitchell, & Wells, 2014, p. 79.
• “A set of brand assets that add to the value assigned to a product”
(Clow & Baack, 2018).
• It provides a company with a competitive edge → allows a brand to
earn greater sales volume and higher margins. Fights brand parity.
Bonds Hoodie Tommy Hilfiger Hoodie
Approx. Approx.
AU$30 vs.
AU$146
(Q)Why are so many consumers willing to pay much more for one brand than the other?
Benefits of Brand Equity
Brand equity offers a number of advantages, just like a strong corporate name.
•Consumers are willing to pay a higher price because they believe the brand is better
and unique, superior to competing brands.
•As such, companies can charge a higher price for the brands which results in higher
gross margins
•High brand equity allows a brand to have greater channel power and additional
retail shelf space because retailers want to make money and will therefore give
preference to brands that consumers want to purchase.
•Because consumers see the brand as being superior, they may be less inclined to
engage in brand switching, which in turn means that the company may experience
less erosion of their market share than their competitors
2-37
-38
Steps in Building Brand Equity
It takes time, effort, and money to build brand equity.
1.Research and analyse what it would take to make the brand distinctive, unique, or
superior. For example, assess what is one unique selling point that should be
promoted.
2.Brands with a high level of brand equity continuously innovate. They are always
looking to make their products better, different, and attractive.
3.It is important to move fast. Competitors are not sitting around doing nothing. They
also are looking for ways to capture greater market share through innovation and
marketing efforts.
4.It involves integrating old and new media. Brand equity is extremely difficult to build
using only traditional media. Companies have to look for ways to engage consumers,
and this is often done through newer media.
5.Building brand equity also involves domination. If a brand can dominate a particular
category, it will be the brand of choice.
Methods of Measuring Brand Equity
▪Financialvalue estimates the cash flows of a brand based on its
unique strengths and characteristics
▪Stock market value uses stock evaluation to measure brand equity
▪Revenue premium involves comparing the brand to a generic brand
within the product category
▪Consumer value attempts to measure brand equity based on input
from consumers
Interbrand’s Best Global Brands
http://interbrand.com/best-brands/best-global-brands/2017/ranking/
Types of Brands
• Family brands: Multiple products under one brand. Can transfer
associations between products
• Brand extension: New good or service
• Co-branding: Uses two brand names owned by two separate companies
to create a partnership offering such as ingredient branding (Intel in Dell
Laptops), co-operative branding (Virgin Visa Card) and complementary
branding (coke at McDonalds)
• Brand licensing: The brand is rented to another business (partner)
• Private Brand: Proprietary brands marketed by an organization and sold
within the organisation’s outlets
• Flanker brand: New brand within current category
Brands Sold by Procter & Gamble
Private Brands
• Popularity has fluctuated
• Connotation of low price, low quality
• Historically → price-sensitive consumers
• Retailers investing in private brands
• Consumers see few differences
Changes in Private Labels
• Improved quality
• Perceived as a value purchase
• Higher loyalty towards retail outlets and lower loyalty
towards specific brands
• Used to differentiate retail outlets
• Increased advertising of private brands
• Increased quality of in-store displays and packaging
of private brands
Advantages to Retailers
Private Labels
• Higher gross margins
• Lower prices
• Greater loyalty to stores and brands within a store
• Differentiates stores from national brands
• J.C. Penney – private labels
Tactics Used by Manufacturers to Combat Private
Labels
• Focus on core brands
• Increase advertising
• Introduce new products
• Focus on in-store selling, packaging
• Use alternative methods of marketing
Source: Adapted from Vanessa L. Facenda, “A Swift Kick to the Privates,” Brandweek,
Vol. 48, No. 31 (September 3, 2007), pp. 24-28.
IMC Break
Packaging
• Provides a marketing opportunity
• Final opportunity to make impression
• 69% of purchase decisions made in-store
• Have three seconds to catch attention
• Must stand out
• Tell customers what is inside
• Label information must meet legal requirements
Primary Purposes of Packaging
• Protect product
• Provide for ease of shipping and handling
• Provide for easy placement on shelves
• Prevent or reduce theft
• Prevent tampering (drugs and food)
• Meet consumer needs for speed, convenience, and
portability
• Communicate marketing message
50
Guidelines for Creating High-Impact Packaging
1. Know your consumer - go back to your consumer research (e.g., what
motivates them to purchase? What are their needs/desires?)
2. Aesthetics and functionality are BOTH important. Keep abreast of changes in
packaging technology and think about retail and consumer handling and
storage issues.
3. Take the big-picture approach – look at what is out there in your product
category and other categories. Think about how to put the best ideas together
in unique ways.
4. Think about sustainability – (e.g., Are there ways to minimise wastage without
compromising functionality? Are there ways to maximise recyclability and/or
biodegradability?) Seek out what your distribution channel thinks – do they
seek specific configurations?
Ethical Issues
• Brand infringement
• Brand name becomes a generic term
• Domain or cyber squatting
International Implications
• Adaptation vs. standardization
• Standardization reduces costs
• Shrinking world → standardization
• High-profile, high-involvement – global brand
• Low-involvement products – local brand
• Packaging and labeling
• Image and positioning issues
In Summary
• The relationship between branding and IMC is critical. One of
the most important reasons for using IMC is to build trust in a
brand
• IMC impacts the quantity & quality of brand relationships with
consumers which in turn determine the value of a brand & its
equity
• Several methods of analysis can be used to understand a
brand & its environment
