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1Brand Value chain- Designing Brand Tracking studies, Establishing brand Equity Management.
STRATEGIC BRAND MANAGEMENT
Brand Value chain
The brand value chain is a structured approach to assessing the sources and outcomes of brand equity and the manner by which marketing activities create brand value.
Some observers believe that up to 70% (or even more) of marketing expenditures may be devoted to programs and activities that cannot be linked to short-term incremental profits, but yet can be seen as improving brand equity.
STRATEGIC BRAND MANAGEMENT
It recognizes that many different people within an org’n can affect brand equity and need to be aware of relevant branding effect. The brand value chain thus provides insights to support brand managers chief marketing officers, managing directors and chief executive officer all the whom may need different types of information.
Virtually every marketing dollar spent today must be justified as both effective and efficient in terms of “return of marketing investment” (ROMI).
STRATEGIC BRAND MANAGEMENT
Marketing program investment : any marketing program investment that can contribute to brand value development intentionally or not falls into this first value stage many marketing activities like product research development & design, trade or intermediary support marketing communication including advertising promotion sponsorship direct and interactive marketing , personal selling publicity and public relations and employee training.
STRATEGIC BRAND MANAGEMENT
Program quality multiplier : the ability of the marketing program to affect the customer mind-set will depend on its quality.
Clarity: how understandable is the brand marketing program ?do properly interpret and evaluate its meaning?
relevance :how meaningful is the marketing program to customers ? Do consumer feel the brand is one they should seriously consider
Distinctiveness : how unique is the marketing program ? How creative or differentiating is it?
Consistency : how cohesive and well integrated is the marketing program ? Do all aspects combine to create the biggest impact with customer ?
A well-integrated marketing program carefully designed and implemented to be highly relevant and unique, is likely to achieve a greater return on investment form marketing program expenditures
STRATEGIC BRAND MANAGEMENT
2. Customer Mind-set: in what ways have customer been changed as a result of the marketing program ?
The customer mind-set includes everything that exists in the minds of customers with respect to a brand. Thoughts, feeling experiences images perceptions beliefs and attitudes, understanding customer mind-set can have important implication for the marketing programs.
Five dimensions have emerged form prior research as to measures of the customer mind-set.
Brand awareness
Brand associations
Brand attitudes
Brand attachment
Brand activity
STRATEGIC BRAND MANAGEMENT
Marketplace conditions multiplier: the extent to which value created in the minds of customers affects market performance depends on factors beyond the individual customer three such factors are:
Competitive superiority : how effective are the marketing investments of competing brands?
Channel and other intermediary support:
Customer size and profile:
The value created in the minds of customer will translate to favorable market performance when competitors fail to provide a significant threat when channel members and other intermediaries provide strong support and when a sizable number of profitable customers are attracted to the brand.
STRATEGIC BRAND MANAGEMENT
3. Market performance : how customers react in the marketplace in six main ways:
Price premiums
Price elasticity
Market share
Expansion success
Cost structure
Profitability
The first two related to price premiums and price elasticities. How much extra are customers willing to pay for a comparable product because of its brand? And how much does their demand increase or decrease when the price rises or falls?
A third outcome is market share which measures the success of the marketing program in driving brand sales.
The fourth outcome is brand expansion the success of the brand in supporting line & category extensions and new-product launches into related categories, this dimension captures the brand’s ability to add enhancement to the revenue stream.
The ability of the brand value created at this stage to reach the final stage in terms of stock market valuation again depends on external factors.
STRATEGIC BRAND MANAGEMENT
Investor sentiment Multiplier: financial analysts and investors consider a host of factors in arriving at their brand valuations and investment decision
Market dynamics
Growth potential
Risk profile
Brand contribution
STRATEGIC BRAND MANAGEMENT
4. Shareholder value: based on all available current and forecasted information about a brand, as well as many other considerations, the financial marketplace formulates opinions and assessments that have very direct financial implications for the brand value, three particularly important indicators are the stock price, the price / earnings multiple, and overall market capitalization for the firm, research ahs shown that not only can strong brands deliver greater returns to stockholders they can do so with less risk.
STRATEGIC BRAND MANAGEMENT
It provide in-depth information and insights essential for setting long-term strategic direction for the brand. But to gather information for short-term tactical decisions, marketers will collect less detailed brand-related information through ongoing tracking studies.
Tracking studies collect information form consumers on a routine basis over time, typically through quantitative measures of brand performance on a number of key dimensions marketers can identify in the brand audit or other means, they apply the brand value chain to understanding where, how much, an din what ways brand value is being created, thus offering invaluable information about how well the brand has achieved its positioning.
STRATEGIC BRAND MANAGEMENT
Tracking studies involve information collected from consumers on a routine basis over time.
Often done on a “continuous” basis
Provide descriptive and diagnostic information
Moving form general to more specific measures is also a good idea in brand tracking surveys to measure brand image, especially specific perceptions like what consumers think characterizes the brand & evaluations such as what the brand means to consumers
STRATEGIC BRAND MANAGEMENT
1. What to Track
Customize tracking surveys to address the specific issues faced by the brand.
It involves 3
Product-brand tracking: tracking an individual branded product requires measuring brand awareness and image, using both recall and recognition measures and moving from more general to more specific questions
Corporate or family brand tracking: when marketers may also want to track the corporate or family brand separately or concurrently or both with individual products.
Global tracking: if your tracking covers diverse geographic markets – especially in both developing and developed countries then you may need a broader se of background measures to put the brand developments in those markets in the right perspective.
STRATEGIC BRAND MANAGEMENT
It involves 3
Whom to track (target market): tracking often concentrates on current customers, but it can also be rewarding to monitor nonusers of the brand or even of the product category as a whole.
When and where to track (how frequently)
How to interpret brand tracking: which elements of the brand should you use in tracking studies? Marketers use the brand name, but it may also make sense to use a logo or symbol in probing brand structures if these elements can play a visible and important role in the decision process.
STRATEGIC BRAND MANAGEMENT
Establishing of Brand Equity Measurement System
A brand equity measurement system is a set of organizational processes designed to improve the understanding and use of the brand equity concept within a firm:
Brand equity charter
Brand equity report
Brand equity responsibilities
A brand equity measurement system is a set of research procedures that is designed to provide timely, accurate, and actionable information for marketers so that they can make the best possible tactical decisions in the short run and strategic decisions in the long-run.
STRATEGIC BRAND MANAGEMENT
1. Brand Equity Charter
Provides general guidelines to marketing managers within the company as well as key marketing partners outside the company & Should be updated annually
the first step in establishing a brand equity management system is to formalize the company view of brand equity into a document, the brand equity charter, that provides relevant guidelines to marketing managers within the company as well as key marketing partners outside the company such as ad agency staff.
STRATEGIC BRAND MANAGEMENT
Describe the scope of the key brands.
Specify actual and desired equity for the brand.
Explain how brand equity is measured.
Suggest how brand equity should be measured.
Outline how marketing programs should be devised
Specify the proper treatment for the brand in terms of trademark usage, packaging, and communication
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2. Brand Equity Report
Assembles the results of the tracking survey and other relevant performance measures.
To be developed monthly, quarterly, or annually.
Provides descriptive information as to what is happening with the brand as well as diagnostic information on why it is happening.
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STRATEGIC BRAND MANAGEMENT
Brand equity report: the second step in establishing a successful brand equity management system is to assemble the results of the tracking surveys and other relevant performance measures for the brand into a brand equity report or scorecard to be distributed to management on a regular basis.
The brand equity report should describe what is happening with the brand as well as why it is happening, if should include all relevant internal & external measures of brand performance and sources and outcomes of brand equity.
Organizational Design & Structures: the firm should organize its marketing function to optimize brand equity, several trends have emerged in organizational design and structure that reflect the growing recognition of the importance of the brand and the challenges of managing brand equity carefully.
STRATEGIC BRAND MANAGEMENT
3.Brand Equity Responsibilities
Organizational responsibilities and processes that aim to maximize long-term brand equity
Establish position of VP or Director of Equity Management to oversee implementation of Brand Equity Charter and Reports
Ensure that, as much as possible, marketing of the brand is done in a way that reflects the spirit of the charter and the substance of the report
STRATEGIC BRAND MANAGEMENT
Conducting the Brand Audit
A brand audit is a comprehensive examination of a brand involving activities to assess the health of the brand, uncover its sources of equity and suggest ways to improve and leverage that equity.
A brand audit requires understanding sources of brand equity from the perspective of both the firm and the consumer.
Specifically, the brand audit consists of two activities:
Brand Inventory
Brand Exploratory
Brand Inventory
The purpose of the brand inventory is to provide a complete, up-to-date profile of how all the products and services sold by a company are marketed and branded.
For each product, the relevant brand elements must be identified, as well as the supporting marketing program. This information should be summarized both visually and verbally.
Although primarily a descriptive exercise, some useful analysis can be conducted.
Consistency
The brand exploratory is research activity designed to identify potential sources of brand equity.
The brand exploratory provides detailed information as to what consumers think of and feel about the brand.
Although reviewing past studies and interviewing relevant personnel provides some insights, additional research is often required.
To allow a broad range of issues to be covered and also permit those issues to be pursued in-depth, qualitative research techniques are often employed first.
To provide a more specific assessment of the sources of brand equity, a follow-up quantitative phase is often necessary.
STRATEGIC BRAND MANAGEMENT
Brand Equity Charters
Brand Equity Reports
Brand Equity Overseers
STRATEGIC BRAND MANAGEMENT

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