Strategic Brand Management: Key Concepts for the Exam - Học flashcard

Marketing communication: six-step response model

Exposure - Attention - Comprehension - Yielding - Intentions - Behavior. Yielding: respond favorably to the message. Intentions: plan to act. Behavior: actually act in the desired manner. Marketing communications = how firms inform, convince, and remind consumers about brands. Marketers should be media neutral.

Country-of-origin associations

Beyond countries: states, regions, cities. Ways to establish: place in the brand name (Idaho potatoes), dominant location theme in ads, campaigns promoting a country's products. Consumers choose by beliefs about quality of products from certain countries and the image they communicate. Origin may create a strong point of difference.

Co-branding: benefits and risks

Co-branding: combining two or more existing brands into a joint product or marketing effort (e.g. Nike + Apple fitness devices). Benefits: borrow needed expertise, leverage equity you lack, reduce cost of product introduction, reach partner's customers. Disadvantages: loss of control, negative feedback effects, lack of brand focus and clarity, risk of dilution. Questions: what capabilities do we lack, what resource constraints, what growth goals? B2B examples: Microsoft/Oracle, Apple/Google.

Licensing vs ingredient branding

Licensing: 'renting' another brand's name/logo/characters to add equity (e.g. Nike licensing its logo; Disney name on polo shirts). Firms license to earn revenue, protect trademarks, increase exposure, enhance image. Ingredient branding: creates equity for materials/components in other branded products; allows greater sales at a higher margin; signals quality and reduces risk.

Channels of distribution and brand equity

Indirect channels (retailers) influence equity through intermediaries' actions and transferred store-image associations. Retailer image comes from product assortment, pricing and credit policy, quality of service. Direct channels (company-owned stores, e.g. Hallmark, Goodyear, Dr Martens) help consumers understand the depth and breadth of products. Omnichannel: integrated experience across all channels, online and offline, on all devices.

Brand extension: benefits and risks

Brand extension: using an existing brand name for a new product. Benefits: facilitates new product acceptance, improves brand image, permits variety-seeking, reduces risk and marketing costs, leverages existing equity. Main risk: dilution of the parent brand's image/equity; cannibalization. Fit: similarity between the parent brand and new product. Highest risk (category-product matrix): new category with new product. Line extension example: Coca-Cola new flavor. First step: define actual and desired consumer knowledge about the brand.

Brand architecture

The organization and hierarchical structure of brands in a company's portfolio. Two key concepts: brand portfolio and brand hierarchy (also called structure and portfolio). Branded house: corporate brand most prominent (risk: confusion; strong focus on the corporate brand). House of brands: separate teams/budgets, more flexibility for new products or markets. Store brand: used by retailers, focuses on lower prices. Cannibalization: a new brand hurts sales of existing brands in the portfolio. Sub-brand challenge: balancing autonomy of brands with corporate influence.

Brand portfolio roles

Brand portfolio: the set of all brands and brand lines a firm offers in a category. Design principle: maximize market coverage, minimize brand overlap. Flanker brand: protects the flagship (Inditex's Lefties vs Shein). Prestige brand: attracts customers and enhances image of other brands (Chevrolet Corvette). First step of architecture strategy, brand potential: brand vision, boundaries, positioning.

Brand revitalization, repositioning, migration, resilience

Revitalization: rejuvenate a brand and regain its edge; repositioning in response to market changes. Repositioning: alter the perception and image of a brand. Migration: extend an existing brand into new categories, markets, or segments. Resilience: ability to recover from a crisis; strong corporate credibility can help avoid big losses. Brand loyalty: extent to which customers consistently choose a brand.

Secondary brand associations: sources and leverage

Linked to the brand from: companies (branding strategies), countries/geographic areas, channels of distribution, co-brands, licensing, celebrities, events, third-party sources (awards, rankings). NOT a means: packaging design. Cognitive consistency: consumers may infer that feelings about the linked entity also apply to the brand. Leverage depends on awareness of the entity, meaningfulness, and transferability. If consumers have no knowledge of the entity, nothing transfers. Risks: loss of control and possible harm to the existing image.

Marketing communication options

Advertising: paid non-personal promotion by an identified sponsor. Sales promotion: short-term incentives to induce trial/purchase. Events and experiences: company-sponsored programs creating brand interactions. Public relations and publicity: programs to protect/promote image. Direct marketing, interactive marketing (forums, Facebook groups), word of mouth, personal selling. Experiential marketing: connects product with unique customer experiences (FPT Open Day). Relationship marketing: stronger bonds with consumers; permission marketing: marketing only after express permission. Earned channels generate buzz at no cost.

IMC criteria

Six criteria: Coverage, Contribution, Commonality, Complementarity, Conformability, Cost. Two key steps: evaluating communication options, and establishing priorities and trade-offs. Possible disadvantage of IMC: centralization.

Pricing strategies for brand equity

Pricing is the revenue-generating element of the marketing mix. Value pricing: right blend of product quality, costs, and prices. Everyday low pricing: consistently low, value-based prices. Price segmentation: different prices for distinct groups (Vietnam Airlines, Vietjet). Consumers must find the price appropriate and fair.

Brand audit and inventory

Brand audit: comprehensive examination of a brand to discover its sources of equity; 2 steps: brand inventory and brand exploration. Inventory: a current, comprehensive profile of how all products are marketed and branded. Brand tracking: routine, usually quantitative; gives consistent baseline information. Brand audits give in-depth information for long-term strategy; tracking measures and grows equity.

Brand equity measurement and management systems

Measurement system: research procedures giving timely, accurate, actionable information. Management system (3 steps): brand charters, brand equity reports, brand equity responsibilities. Responsibilities: overseeing equity, organizational design, managing marketing partners; a central position oversees implementation of the charter and reports. Program Quality Multiplier: DRIVE = Distinctiveness, Relevance, Integrated, Value, Excellence. Brand associations belong to Customer Mind-set.

Comparative approaches (brand equity measurement)

Brand-based: used when marketing activity is a CHANGE from past marketing; use competitive brands as benchmarks; good for price premiums and margin. Marketing-based: examine response to changes in the marketing program; disadvantage: hard to tell brand vs generic product knowledge; used for price sensitivity and willingness to pay. Conjoint analysis: survey-based multivariate technique that profiles the decision process, studying marketing programs simultaneously. Projective techniques: ambiguous stimuli to make sense of; used when consumers are unable to express opinions.

Global branding terms

Standardization: consistent messaging across markets; favored by common needs and favorable trade policies. Localization: adapt marketing to local preferences. Transplanting: enter a new market with little change. Consumer ethnocentrism: preference for local over global brands. Country-of-origin effect: influence of origin on perception and purchase. Subculture branding: appeal to a specific cultural group. Main challenge: cultural differences and local preferences.

Types of goods and product risk

Search goods: attributes judged before purchase. Experience goods: judged by use (James Bond, Transformers). Credence goods: attributes rarely learned. Social risk: product causes embarrassment to others. Products have 5 levels of meaning; the generic product is level 2. Economic benefit of brands for customers: lower search costs.

Brand element criteria (6)

Memorable, Meaningful, Likable (offensive: build brand equity) Transferable, Adaptable, Protectable (defensive: leverage and maintain equity). Two key meaningfulness aspects: general information about the product function, and specific information about particular attributes and benefits. Example: Blue Rhino's powder-blue animal mascot = memorability. A name like Fiesta already in memory = familiarity/meaningfulness.

Customer-Based Brand Equity (CBBE)

The differential effect that brand knowledge has on customer response to the marketing of that brand. Premise: the power of a brand lies in what resides in the minds and hearts of customers. Positive CBBE: customers react more favorably to a product and its marketing when the brand is identified than when it is not. Differential response depends on the strength, favorability, and uniqueness of brand associations.

Brand knowledge: two components

Brand awareness and brand image. Brand awareness = brand recognition + brand recall. Recognition: ability to confirm prior exposure when given the brand as a cue. Recall: ability to retrieve the brand from memory when given the product category or need (e.g. thinking of Kellogg's Corn Flakes when thinking of breakfast cereal).

Brand salience: depth and breadth

Salience measures how easily and often the brand is evoked in various situations. Depth: likelihood that the brand comes to mind. Breadth: range of situations in which it comes to mind. A highly salient brand has both depth AND breadth. Salience is the foundation (first step) of building brand resonance.

Brand resonance model: 4 dimensions

Behavioral loyalty, Attitudinal attachment, Sense of community, Active engagement. Strongest affirmation of loyalty = active engagement (customers invest time, energy, money beyond purchase). Brand resonance = intense, active loyalty and deep psychological bond; the model describes how to create intense loyalty and strong customer relationships.

Keller's three planning models (strategic brand management)

Brand positioning model: how to guide integrated marketing to maximize competitive advantage. Brand resonance model: how to create intense loyalty and strong customer relationships. Brand value chain: traces value creation to understand the financial impact of brand marketing spending (Customer Mind-set is the 2nd stage). First step of strategic brand management: identifying and developing brand plans. Brand audit and tracking belong to: measuring and interpreting brand performance.

Branding ladder and brand meaning

The branding ladder has 4 steps. Step 3 asks: What about you? What do I think or feel about you? (judgments and feelings) Brand meaning = performance + imagery. Brand performance: how well the product meets functional needs. Brand judgments (quality, credibility, consideration, superiority) are formed from performance and imagery associations. Brand-building feelings (6): warmth, fun, excitement, security, social approval, self-respect.

Brand image intangibles (4 kinds)

1) User profiles 2) Purchase and usage situations 3) Personality and values 4) History, heritage, and experiences. Once enough brand awareness exists, marketers can put more emphasis on brand image. Brand benefits = personal value and meaning consumers attach to product attributes.

Brand personality dimensions (Aaker)

Sincerity: down-to-earth, honest, wholesome, cheerful. Excitement: daring, spirited, imaginative, up-to-date. Competence: reliable, intelligent, successful. Sophistication. Ruggedness: outdoorsy, tough. Brand personality = human characteristics consumers attribute to a brand.

Brand (AMA definition)

A name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller and differentiate them from competitors. A brand is an intangible asset; it is more than a product because it has dimensions that differentiate it from other products meeting the same need.

Brand elements (a.k.a. brand identities)

Brand names, URLs, logos, symbols, characters, spokespeople, slogans, jingles, packages, and signage. Coherence of brand identity depends on the consistency of brand elements. Brand name is the most difficult element for marketers to change (some questions mark the logo instead).

Why choose a simple, familiar, meaningful brand name?

Simple, easy to pronounce/spell: reduces consumer effort; short names are easy to encode and recall; encourage word of mouth. Familiar and meaningful: taps into existing knowledge structures, so it is already in memory. Different, distinctive, unusual names improve awareness. A name is a fundamental choice because it captures the central theme of a product in a compact, economical way.

Types of brand names with examples

Based on people: Estée Lauder, Porsche, Orville Redenbacher. Based on places: Santa Fe cologne, Chevrolet Tahoe, British Airways. Inherent product meaning (words/animals): Mustang, Dove, Greyhound. Sources of names: management and employees, customers, ad agencies/consultants. Naming procedures have 6 steps.

Logo, symbol, character, slogan, jingle, packaging: key facts

Non-word marks/symbols: Mercedes star, Rolex crown, CBS eye, Nike swoosh, Olympic rings. Logos can be adapted over time (John Deere deer). Characters: symbols with human or real-life traits; may dominate other elements and dampen awareness. Slogans: short phrases with descriptive/persuasive info; modifying an old one is often better than a new one. Nike's 'Write the Future' etc. are taglines. VW: 'Drivers wanted'. Jingles: musical messages by songwriters; they do NOT transfer well across cultures. Packaging: 'last five seconds of marketing', 'permanent media'; package innovation can boost short-term sales.

Brand mantra

A short, three- to five-word phrase that captures the irrefutable essence or spirit of the brand positioning.

Brand positioning and points of parity/difference

Brand positioning: designing the company's offer and image to occupy a distinct, valued place in the target customer's mind; defines how a brand wants to be perceived. Ideal positioning aims at congruence between what customers believe/value and what the firm says/wants. Points of parity: category, competitive, correlational. Points of difference need compelling proof points and reasons to believe (RTBs) for deliverability. Behavioral segmentation is often most valuable for branding.

What are the three main branding options for a new product?

1) Create a new brand 2) Adopt or modify an existing brand (e.g. Samsung Galaxy C8) 3) Combine an existing brand and a new brand (sub-brand, e.g. TechWave's TechLight).