Brand Management

1. Brand Management Dr.Adi Zakaria Afiff PowerBook 1400c/166

2. Understanding the Brand

3. What is a Brand? • Brand: to burn • Name, term, sign, symbol or design, or a combi-nation of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition.” (Kotler, 1997)

4. Coca Cola & Sony: consumer goods Citibank and DHL : service orgz CNN & BBC : electronic media Ralph Lauren & C. Dior: cosmetics Tiger Wood & David Becham: athletes World Cup & Olympics: events How About These Brands?

5. Brand Definition • Brand is therefore a product, but one that adds other dimensions that differentiate it in some way from other products designed to satisfy the same need (Keller, 2003) • Genuine Brand is the internalized sum of all impressions received by customers and consumers resulting in a distinctive position in their “mind’s eye” based on perceived emotional and functional benefits (Knapp, 2000)

6. The Role that Brands Play For the Consumer For the Company • Identification • Responsibility • Risk reducer • Search cost reducer • Promise • Symbolic device • Signal of quality • • Identification • Legal protection • Signal of quality • Means of associations • Source of comp adv • Source of fin. returns Source: Keller, 2003

7. What can be Branded? • Physical Goods • Services • Retailers and Distributors • On-line Products and Services • People and Organizations • Sports, Arts and Entertainment • Geographic Locations • Ideas and Causes

8. The Role of Brand in Marketing

9. The Marketing Philosophy: Marketing Concept Starting Point Focus Means Ends Target Mkt Need Integrated Mkt Profit through Cust. Satisfaction

10. Marketing • Process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. • More simply: Marketing is the delivery of customer satisfaction at a profit.

11. Marketing Mgmt Process Business Mission STP Marketing Objectves Marketing Program; 1.Product 2. Price 3. Place 4. Promotion Marketing Implementation Evaluation & Control 1. Advertising 2. Sales Promotion 3. Personal Selling 4. Direct Marketing 5. Public Relations Macro Environment Micro Environment Planing & Organizing Implementation Controlling

12. Marketing Philosophy: Marketing Concept and Customer Concept Business Mission STP Marketing Objectves Marketing Program; 1.Product 2. Price 3. Place 4. Promotion Marketing Implementation Evaluation & Control 1. Advertising 2. Sales Promotion 3. Personal Selling 4. Direct Marketing 5. Public Relations Macro Environment Micro Environment Planing & Organizing Implementation Controlling

13. Strategic Marketing &Tactical Marketing Strategic Marketing Business Mission STP Marketing Objectves Marketing Program; 1.Product 2. Price 3. Place 4. Promotion Marketing Implementation Evaluation & Control Tactical Marketing 1. Advertising 2. Sales Promotion 3. Personal Selling 4. Direct Marketing 5. Public Relations Macro Environment Micro Environment Planing & Organizing Implementation Controlling

14. Brand Management Focus Strategic Marketing Business Mission STP Marketing Objectves Marketing Program; 1.Product 2. Price 3. Place 4. Promotion Marketing Implementation Evaluation & Control Tactical Marketing 1. Advertising 2. Sales Promotion 3. Personal Selling 4. Direct Marketing 5. Public Relations Macro Environment Micro Environment Planing & Organizing Implementation Controlling

15. Market Characteristics: Consumer >< Business Consumer Mkt Large # of customers Small amount of purchase Consumer buying Market Small # of customers Large amount of purchase Derived demand Professional Buying B2B Mkt

16. The Brand Management Organization

17. The History of Brand Management: • Periode Pertumbuhan Merek Produsen Nasional (1870 –1914) • Periode Tantangan Baru dan Metode Manajemen Baru (1915 –1929) • Periode Lahirnya sistim Brand Management, yang diabaikan (1930 –1945) • Era Brand Managers (1950 –kini) Source: Low & FUllerton, 1994

18. Changes in Businesses and Consumers • The Product Concept Days • The Market Concept Emergence • The Big Brands • The Realization of Brand Value • The Greater Focus on Brand-Consumer Relationships Source: Temporal, 2002

19. Changes in Brand Management • Change from an industry to a market focus • Change from tactical to strategic thinking • Change from local market to global market focus • Change from product to category management • Change from product to corporate branding • Change from product to customer relationship responsibility • Change from managing brand performance to brand equity • Change from financial accountability to social responsibility Source: Temporal, 2002

20. Tactical & Reactive Less Experienced Shorter time horizon Brand Image Short-term financials Single products/market Simple brand structure Single Country Coordinator of limited options External Consumer Focus Brand Image Strategic & Visionary Higher in the organization Longer time horizon Brand Equity Brand Equity Measures Multiple products/markets Complex brand architecture Global perspectives Team Leader Internal as well as external Brand Identity Brand Leadership: the New Imperative Source: Aaker, 2003

21. Customer Based Brand Equity

22. Cons.- Brand Resonance Intense, active loyalty Positive, accessible reactions Consumer Judgements Consumer Feelings Brand Imagery Points of Parity and Difference Brand Performance Brand Salience Deep, Broad Brand Awareness Brand Pyramid

23. Hello Kitty: The Power of Brand Equity • Background: a brand based on the cartoon character of a small cat that looks kind and cute, has a button nose, two black dot eyes, six whiskers and a ribbon or flower in her hair. The brand is produced by Sanrio (Japan) and is already 25 years old, Hello kitty is an icon with a global appeal. In 1998 (during recession) the brand success has multiply its company profit by13 times!!. Originally for children but now is attractive to women. • Current product line: 15,000 items (from paper to cafes)

24. The Brand Revisited Source: Tybout &Carpenter, 2001

25. Building Customer Based Brand Equity Consumer Knowledge Effects Brand Building Tools & Objectives Branding Benefits Choosing Brand Elements Brand Awareness Developing Marketing Programs Brand Loyalty Brand Associations Leverage of 2nd associations Source: Keller, 2003

26. Building Customer Based Brand Equity

27. Brand Positioning

28. Brand Management Focus Strategic Marketing Business Mission STP Marketing Objectves Marketing Program; 1.Product 2. Price 3. Place 4. Promotion Marketing Implementation Evaluation & Control Tactical Marketing 1. Advertising 2. Sales Promotion 3. Personal Selling 4. Direct Marketing 5. Public Relations Macro Environment Micro Environment Planing & Organizing Implementation Controlling

29. Positioning: The Foundation of Building a Strong, Unique and Favorable Brand Knowledge Structure • The product in the consumer’s mind (Ries & Trout, 1991) • The act of designing the company’s offer and image to occupy a distinctive place in the target market’s mind (Kotler, 2003) • The way we want customers to perceive, think and feel about our brand versus competitive entries (Czerniawski & Maloney, 1999) 1

30. Nike >< Adidas • You don’t win silver, you lose gold. There is no finish line. Nike • Every player, every level, every game. Earn Them.Adidas

31. Brand Identity Nike >< Adidas Adidas Nike • Individual • Rebel • Performance • USA • • Teamwork • Achievement • Performance • Germany/Europe

32. Positioning Statement • To Target Customer Group and Need, Brand is the brand of Competitive Framework that Benefit. The reason is Reasons Why. The brand character is aaaa, bbbb, cccc, and dddd (brand character).

33. Section 3: Positioning Hypothetical Positioning Statement Daia • Tolow Income and Price Sensitive Household , • Daia is the brand of low price laundry detergent that provides value to consumers. • The Reasons are: • Local quality chemical materials • Extensive Distribution • Lower price compared to competitors • Moderate cleaning power • Unique advertising • The brand Identity is value, funny, and caring Target Market Reasons Customer Believe us

34. Section 3: Positioning Hypothetical Positioning Statement Lux • Towomen who sees beauty as important , • Lux is the brand of a quality and reasonable bathing soap that makes their skin soft and radiant, bringing out beauty. • The Reasons are: • Parfume in soaps • Good feelings on skin • Extensive Distribution • Popular women celebrities used in marketing communications • Moderate price • The brand Identity is femine, beauty, celebrities, and caring Target Market Reasons Customer Believe us

35. Building Customer Brand Equity: Brand Elements

36. Building Customer Brand Equity: Brand Elements & Marketing Programs Adi Zakaria PowerBook 1400c/166

37. Building Customer Based Brand Equity Consumer Knowledge Effects Brand Building Tools & Objectives Branding Benefits Choosing Brand Elements Perceived Differently in product performance Greater Loyalty Command larger margins Greater trade coop/support Increase Mark. Comm. Effectiveness Yield licensing Support brand extensions Brand Awareness Developing Marketing Programs Brand Associations Leverage of 2nd associations Source: Keller, 2003

38. Brand Elements Logo &Symbol Brand Names Characters. Slogans Choosing Brand Elements Jingles Perceived Differently in product perfromance Greater Loyalty Command larger margins Greater trade coop/support Increase MarComm Effectiveness Yield licensing Support brand extensions Brand Awareness Packaging Developing Marketing Programs Brand Associations Leverage of 2nd associations Source: Keller, 2005

39. Criteria for Choosing Brand Elements • Memorability • Meaningfulness • Likability • Transferability • Adaptability • Protectability

40. Brand Element Changes

42. Back to Understanding the Brand

43. Three Great Dilemmas in Brand Management • Brand Extensions • Brand Revitalization • Brand Deletion

44. Brand Challenges • Savvy Customers • Brand Proliferation • Media Fragmentation • Increased Competition • Increased Costs • Greater Accountability

45. Daftar Pustaka: • Blair, Mark; Richard Armstrong and Mike Murphy (2003), The 360 Degree Brand in Asia, John Wiley & Son • Keller, Kevin L. (2003), Strategic Brand Management, New Jersey: Prentice Hall • Temporal, Paul (2002), Advanced Brand Management, John Wiley & Sons • Kellogg on Marketing(2001), John Wiley & Son • etc