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The Value of a Brand! Branding is Value Creation What is a Brand? A word? Kleenex Xerox Fed Ex Coke Tiffany’s What is a Brand? An image? Mc Donald’s Apple Computers KFC AOL Starbucks What is a Brand? A slogan? _________, it’s the real thing.

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the value of a brand

The Value of a Brand!

Branding is Value Creation

what is a brand a word
What is a Brand? A word?
  • Kleenex
  • Xerox
  • Fed Ex
  • Coke
  • Tiffany’s
what is a brand an image
What is a Brand? An image?
  • Mc Donald’s
  • Apple Computers
  • KFC
  • AOL
  • Starbucks
what is a brand a slogan
What is a Brand? A slogan?
  • _________, it’s the real thing.
  • _______________when it absolutely positively has to be there overnight.
  • ___ the ultimate driving machine.
a brand is a memory
A Brand is a Memory?
  • What we remember about a product is the brand?
  • It can be a word, image, slogan even music.
  • A brand is a tool to remember a product.
how does memory work
How does memory work?
  • Working Memory
  • Long-term Memory
  • Skill Memory
long term memory is triggered
Long -term memory is triggered.

A trigger is a need or desire.

Life Time-line

Trigger Event

long term memory is triggered8
Long -term memory is triggered.

Advertising is not a trigger, it’s a memory builder.

Life Time-line

Trigger Event

memory is triggered
Memory is triggered.

Perfect Advertising to Purchase Scenario

Life Time-line

Trigger Event

Advertising

Purchase

memory is triggered10
Memory is triggered.

But it’s not a Perfect World.

Life Time-line

Trigger Event

Purchase

Advertising

memory is triggered11
Memory is triggered.

A brand outlives advertising.

Life Time-line

Advertising

Purchase

Trigger Event

Brand Memory

a brand has value
A Brand has Value.
  • Any memory that outlasts it’s advertising is valuable.
  • The longer the memory lasts the more value it has.
  • The more people that share the memory the more value it has.
  • A company that owns memories has value.
  • In the valuation of a company it’s called goodwill.
branding is value creation
Branding is Value Creation
  • An un-licensed business with no established brands sells for the value of it’s physical assets.
  • A licensed business sells for multiples of it’s cash flows.
  • A business with established brands sells for one of the above plus the value of the brand, goodwill.
advertising needs to work
Advertising needs to work.
  • While you are building brand you have to pay the bills.
  • Public companies use investors money to pay the bills while they build value.
  • You have to earn a profit and build the brand at the same time.
how do you accomplish both
How do you accomplish both?
  • “Call to Action” advertising makes the phone ring, delivering prospects to your business.
  • It’s your sales force that converts prospects to customers.
  • “Brand” advertising creates memories of your business that will lead prospects to you in the future.
building a brand and call to action budget
Building a Brand and Call to Action Budget
  • Remove three page chart from Chapter Two after page 9
  • See Chapter Seven page 1
branding
Branding
  • End of Section One
call to action
Call to Action
  • To effectively deliver new prospects an advertising medium should be highly targeted, cost effective and reach many people.
  • To build memories a medium must be able to deliver a message to all the senses, sight, sound, motion and emotion.
compare the sum of the alternatives
Compare the Sum of the Alternatives
  • Has a television commercial ever made you laugh? Moved you emotionally? Made you angry?
  • How about Newspaper?Radio? Direct Mail?
  • Television can move people to action and create lasting memories.
how long can a memory last
How long can a memory last?
  • _______ tastes good like a cigarette should.
  • I’d walk a mile for a _____.
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