Strategic Brand Management Strategic Brand Management Branding Branding  Measuring Brand Share of Market Unit $$ Unit $$ Sales Sales Share Share National 120 $270 100% 100% Brand A 5 15 4.2% 5.6% Brand B 15 15 12.5% 5.6% Brand C 3 7 2.5% 2.6% Brand Unit Shares 4% 13% 3% 80% Brand A Brand B Brand C All other Brand Dollar Shares 6% 6% 3% 85% Brand A Brand B Brand C All other What is a Brand Management? What is a Brand Management?  Brand Building Begins By – Understanding & anticipating the needs and desires of the consumer – Understanding the key attributes of the product(s)  Our Mission is to DISCOVER (rather than Invent) the brand’s CORE VALUES and abide by them. Brand Vision and Essence Brand Vision and Essence BRAND = Mindset EQUITY = Roots ESSENCE = Brand’s Soul VISION = Brand’s DNA What is Brand Management? What is Brand Management? Functional Excellence in Support of the Brand Primary Source of Differentiation • Product/service innovation and communication Purpose of the Brand • Create or reinforce product distinctiveness Firm-wide Leadership in Stewarding the Brand Primary Source of Differentiation • Customer experience, in addition to innovation and communication Purpose of the Brand • Provide clear set of values along which to align all enterprise activities and investments Corporate Executive Board Customer-Based Brand Equity Customer-Based Brand Equity (CBBE) Model (CBBE) Model 3 Differential Effect 2 Brand Knowledge 1 Consumer Response to Marketing Brand Equity arises from differences in CONSUMER response What CONSUMERS learned, felt, seen, heard, experienced over time Reflected in CONSUMER perceptions, preferences, and behavior related to all aspects of the marketing of a brand Consumer-Based Brand Equity Consumer-Based Brand Equity Pyramid Pyramid Salience Resonance Judgements Feelings Performance Imagery Loyalty Attachment Community Engagement Quality Credibility Consideration Superiority Warmth, Fun Excitement, Security, Social Approval, Self-Respect 4 Brand Relationships (WHAT About You AND ME?) 1 Brand Identity (WHO Are You?) 2 Brand Meaning (WHAT Are You?) 3 Brand Response (WHAT About You?) User Profiles Purchase and Usage Situations Personality & Values History, Heritage, & Experiences Brand Characteristics & Secondary Features Product Reliability, Durability & Serviceability Service Effectiveness, Efficiency, & Empathy Style and Design; Price Category Identification Needs Satisfied 4 Steps of Brand Building 4 Steps of Brand Building Consumer Questions Brand Actions 1 WHO Are You? Ensure Identification & association w/category or need 2 WHAT Are You? Firmly establish TOTAL brand meaning by strategically linking associations w/certain properties 3 WHAT About You? Elicit consumer response to brand meaning and Id 4 WHAT About You AND ME? Convert Brand Response to create an intense, active loyal relationship Consumer-Based Brand Equity Consumer-Based Brand Equity Pyramid Pyramid Brand Salience Consumer- Brand Resonance Consumer Judgements Consumer Feelings Brand Performance Brand Imagery 4 Intense, Active Loyalty 1 Deep Broad Brand Awareness 2 Points of Difference 3 Positive Accessible Reactions C o n s u m e r A c c e p t a n c e C y c l e THIS is Where the Insight Lives Consumer Conversion Model Consumer Conversion Model UNAWARE % NAME AWARENESS % BRAND FAMILIARITY % TRIAL % ACCEPTANCE % USAGE % REGULAR USAGE • % Conversion • Longevity • Market Presence • Communication Intrusiveness % Conversion • Message Communication % Conversion • Persuasion & Interest • Trial Inducement Promotions % Conversion • Benefit Communication/Delivery • Benefit Importance % Conversion • Product Performance % Conversion • Uniqueness • Relevance • Value • Loyalty Building Promotions Building Brand Loyalty [...]... Response to Marketing BRAND FAMILIARITY TRIAL ACCEPTANCE USAGE REGULAR USAGE 2 Brand Knowledge 3 Differential Effect Consumer Conversion Model UNAWARE % NAME AWARENESS % BRAND FAMILIARITY % TRIAL % ACCEPTANCE % USAGE % REGULAR USAGE 1 Brand Identity (WHO •% Conversion Are You?) 2 Brand Meaning (WHAT Are You?) % Conversion % Conversion 3 Brand Response % Conversion (WHAT About You?) 4 Brand Relationships... Public Relations Package Pricing Advertising Media Brand Marketing Process Analysis & Long Term Strategy Measure Brand Equity Financial Health Marketing Mix Business Analysis Market & Competitive Trends Consumer Insights SWOTs Strategic Implications & Strategy Development Core Competencies, External Opportunities Brand Vision Brand Strategy Strategic Role Strategic Marketing Market Trends Checklist  Market... Relations Package Pricing Advertising Media Strategic Marketing Process Analysis & Long Term Strategy Analysis & Long Term Strategy Measure Brand Equity Financial Health Marketing Mix Business Analysis Market & Competitive Trends Consumer Insights SWOTs Strategic Implications & Strategy Development Core Competencies, External Opportunities Brand Vision Brand Strategy Strategic Role Establish Positioning Concept... Choose a Brand Winning saturation Positioning •High Cost Create the Tactical Plan Mark Kerback, Kerback & Company Strategic Marketing Process Measure Brand Equity Market & Competitive Trends Analysis & Long Term Strategy Financial Health Marketing Mix Business Analysis Consumer Insights SWOTs Strategic Implications & Strategy Development Core Competencies, External Opportunities Brand Vision Brand Strategy... guarantee assets/liabilities are nurtured and managed (loyalty, awareness, perceived quality, propriety brand assets)  Develop Focused Master Plan  Create Long term Strategic Orientation Measuring Brand Equity OBJECTIVES  S imple (& Strategic)  M easurable  A ttainable  R easonable Reach  T imebound Brand Development Consumer Driven Marketing Cycle Consumer Insight: Singularly focused need, desire... loyalty Kevin Clancy, Copernicus, Counter Intuitive Brand Vision BIG HAIRY VISIONS & GOALS • Bad BHAGs set with bravado, What are you deeply Passionate About • Good BHAGS set with understanding What you Can be The Best in the World at BHAG What Drives Your Economic Engine Jim Collins, Good To Great Strategic Brand Management Moving On… Measuring Brand Equity GOALS = OBJECTIVES  To guarantee assets/liabilities... Winning Positioning Brand Development Consumer Driven Marketing Cycle Map The Market-space Select the Most Valuable Consumers/Customers Brand Positioning, image and name assessment Strategy simulation/”gaming” to assess trade-offs Brand saturation Choose A Winning Positioning Competitive position benchmarking research/analysis•High Cost Financial modeling and pricing research/analysis Brand Development... November Brand Development Consumer Driven Marketing Cycle Consumer Insight: Singularly focused need, desire or want Strategies: Fact Based choices on who, how and why Tactics: Activities/capabilities –what, where and when Actions Strategies • Brand Tactics saturation •High Cost Actions: Execution, feedback, assessment, and improvement Mark Kerback, Kerback & Company Strategic Marketing Process Measure Brand. .. Brand Equity Market & Competitive Trends Analysis & Long Term Strategy Financial Health Marketing Mix Business Analysis Consumer Insights SWOTs Strategic Implications & Strategy Development Core Competencies, External Opportunities Brand Vision Brand Strategy Strategic Role Establish Positioning Concept Annual Plan & Execution Three Year and ANNUAL Objectives What do I want to Accomplish Objectives Should... Kerback, Kerback & Company Brand Development Make Factbased choices on who, how and why Consumer Driven Marketing Cycle   Strategic Execution as a Cycle Strategy Explicitly linked to – Action – Assessment Actions Take action, get feedback, assess & improve Strategies Brand saturation Tactics •High Cost Create what tactics and capabilities are needed, where they are needed and when Brand Development Consumer . Strategic Brand Management Strategic Brand Management Branding Branding  Measuring Brand Share of Market Unit $$ Unit. 100% 100% Brand A 5 15 4.2% 5.6% Brand B 15 15 12.5% 5.6% Brand C 3 7 2.5% 2.6% Brand Unit Shares 4% 13% 3% 80% Brand A Brand B Brand C All other Brand Dollar