Advertising and Branding

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Brands are really important for services.

The firm’s perspective

Is important for firm’s when they are able to use the brand to differentiate the company. The brand gives unique differentiation, unique features and it is a financial guarantee.

Brand value and market capitalisation

Value brands financially. Every year are established the top 100 brands.

2005: Coca Cola valued at 67.5 $billion → is the 64 market capitalization

Microsoft valued at 59.9$b →

McDonald’s valued at 26$b → has a 71 market capitalization → it’s all about the brand!

What can be branded?

Retailers and distributers: retailer and distributors start to brand their own products

Online products and services

People and organisations

Ideas and causes → also can be branded: no-smoking campaigns

The concept of brand equity

- The brand equity concept stresses the importance of the brand in marketing strategies.

- Brand equity is defined in terms of the marketing effects uniquely attributable to the brand.

- Brand equity relates to the fact that different outcomes result in the marketing of a product or service because of its brand name, as compared to if the same product or service did not have that name.

Is trying to create a difference in our mind. What is really at the core of a brand strategy is starting with the brand and then using them to add benefits for customers.

Brand equity: Is the differential effect that we create through the brand

For example: the price premium is given by the brand equity. A good example is the Monroe’s dress (right price was 200-300$, but it was sold at a higher price, something like 1.3 mil)→ this is thanks to brand equity; is the dress didn’t have been associated with Marilyn it wouldn’t not cost so much, that’s the brand equity.

Strategic brand management

→ Is about building, measuring brand. Brand equity could also be negative.

- Strategic brand management involves the design and implementation of marketing programs and activities to build, measure, and manage brand equity.

- The strategic brand management process involves four key steps:

1) Identifying and establishing brand positioning and values

2) Planning and implementing brand marketing programs

3) Measuring and interpreting brand performance

4) Growing and sustaining brand equity

Customer-based brand equity

Two questions often arise:

- What makes a brand strong?

- How do you build a strong brand?

- To answer these questions, we are going to adopt the Customer-Based Brand Equity model

- Customer-based brand equity is the differential effect that brand knowledge has on consumer response to the marketing of that brand.

The value of a brand really resides in the mind of a customer.

It’s really about creating the differentiate effect, about creating knowledge.

Example of customer-based brand equity: blind and named product test

Brand A has brand equity.

Blind beer taste tests

Blind tests: lot of couple of beer, and the second time they drink beer with labels.

When they did know what they are drinking the differences are always very clearly positioned

When they didn’t know what they are drinking it shows that these products are much more similar and there is no differentiation → in this situation you can’t differentiate you product

Video Carlton

It works on:

- increases awareness of the brand (share among social networks maybe)

- it creates an image for the brand – young, dynamic…

Case Study: A Rose by Any Other Name

What’s the best marketing strategy for Rose Partyware?

- relationship with customer allows to brings the strength

- branding decision is not a technical decision, branding is a strategic decision

Source of brand equity

A brand will not survive when it’s all about knowledge, but there are some exceptions such as ice-cream.

→ Building a strong relationship is fundament, a branding decision is not a technical one, it is a strategic decision instead.

You need two things to make a brand really strong:

- high level of awareness and familiarity (they have to know a lot about it)

- it is also important to have a strong and unique brand associations→ the brand must have a meaning strong enough for customers to care.

Typically strong brand need both things

Two key elements for brand awareness:

- brand recognition (logo) → being recognized as a brand

- brand recall (given the product category, does this brand come to mind?)

→ If we have both, then there will be some advantages, such as learning, evoke set and choice.