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The Value of a Brand! PowerPoint PPT Presentation

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!

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The value of a brand l.jpg

The Value of a Brand!

Branding is Value Creation


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What is a Brand? A word?

  • Kleenex

  • Xerox

  • Fed Ex

  • Coke

  • Tiffany’s


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What is a Brand? An image?

  • Mc Donald’s

  • Apple Computers

  • KFC

  • AOL

  • Starbucks


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What is a Brand? A slogan?

  • _________, it’s the real thing.

  • _______________when it absolutely positively has to be there overnight.

  • ___ the ultimate driving machine.


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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.


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How does memory work?

  • Working Memory

  • Long-term Memory

  • Skill Memory


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Long -term memory is triggered.

A trigger is a need or desire.

Life Time-line

Trigger Event


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Long -term memory is triggered.

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

Life Time-line

Trigger Event


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Memory is triggered.

Perfect Advertising to Purchase Scenario

Life Time-line

Trigger Event

Advertising

Purchase


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Memory is triggered.

But it’s not a Perfect World.

Life Time-line

Trigger Event

Purchase

Advertising


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Memory is triggered.

A brand outlives advertising.

Life Time-line

Advertising

Purchase

Trigger Event

Brand Memory


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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.


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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.


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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.


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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.


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Compare Two Spots


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Building a Brand and Call to Action Budget

  • Remove three page chart from Chapter Two after page 9

  • See Chapter Seven page 1


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Branding

  • End of Section One


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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.


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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.


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How long can a memory last?

  • _______ tastes good like a cigarette should.

  • I’d walk a mile for a _____.


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