Ashley Drake just purchased a small clothing boutique two blocks from your campus. The current name of the store is College Fashions. She feels she needs a new name that projects an image of offering trendy, hip fashions to your college’s students. What name would you suggest? Discuss your brand name in terms of which category it fits and the four tests of quality names. To succeed, Ashley knows she needs to retain the store’s current customers as well as gain new ones. Outline a plan to rejuvenate the company’s brand image using the keys to image rejuvenation identified in Figure 2.5. Henry and Becky Thompson are planning to open a new floral and gift shop in Orlando, Florida. They want to project a trendy, upscale, and fashionable image. They are trying to decide on a name and logo. What should be the name of the company? What kind of logo should be developed? Brand image affects purchase decisions. Identify two brands you consider to hold a positive image, and explain why. Identify two brands that you believe should either change or rejuvenate their brand images and explain why. How can the change or rejuvenation be accomplished for each brand? Identify a brand that you have recently purchased that is not well-known, but you like. Using the concepts presented in the ‘Building Powerful Brands’ section of this chapter, discuss how the brand you identified can be built into a powerful brand. Be specific. Identify five different brands for which you have a high level of brand loyalty. Describe your level of loyalty and discuss why you are loyal. Explain how brand equity impacts your loyalty for each brand. Pick a private label that you have recently purchased. What is your evaluation of the private brand quality compared to national brands? The chapter discussed a number of changes in private label branding that has occurred (see Figure 2.19). Discuss each of these changes in relation to the private brand you picked. 2 Chapter Two Brand Management Copyright ©2016 Pearson Education, Inc. 2-1 Copyright ©2016 Pearson Education, Inc. 2-2 2 Brand Management Chapter Objectives 1. 2. 3. 4. 5. How does a brand image affect consumers, other businesses, and the company itself? What elements are involved in identifying, creating, rejuvenating, or changing a brand’s image? What are the different types of brand names? What are the characteristics of effective logos? What different kinds of brands can firms offer? Copyright ©2016 Pearson Education, Inc. 2-3 2 Brand Management Chapter Objectives 6. 7. 8. 9. How are brands developed, built, and sustained in order to build brand equity and fend off perceptions of brand parity? What current trends affect private brands? How are packages and labels used to support an IMC program, both domestically and in foreign settings? How are brands managed in international markets? Copyright ©2016 Pearson Education, Inc. 2-4 2 • • • 2008 recession changed dining out DineEquity purchased Applebee’s IHOP CEO — Julia A. Stewart • ‘Minnow swallows the whale’ • Act of retribution • Marketing emphasis • Product quality, price, promotions • Quality employment environment • • • Enhance dining experience ‘Girl’s Night Out’ Advertising agency — Crispin Porter Copyright ©2016 Pearson Education, Inc. 2-5 2 Brand Management Chapter Overview • • • • Managing a brand image Issues associated with developing and promoting brand names and logos Brand equity versus brand parity Importance of packaging and labels Copyright ©2016 Pearson Education, Inc. 2-6 Brand image advertisement by Kraft Foods Copyright ©2016 Pearson Education, Inc. 2-7 FIGURE 2.1 Components of a Brand Image Tangible Elements n n n n n n n Goods or services sold Retail outlets where the product is sold Advertising Marketing communications Name and logo Packaging and labels Employees Intangible Elements n Corporate personnel — Ideals — Beliefs — Conduct n n n n Environmental policies Corporate culture Country location Media reports Copyright ©2016 Pearson Education, Inc. 2-8 Role of Brand Image Consumer Perspective • Provides positive assurance • Unfamiliar settings • Little or no previous experience • Reduces search time • Provides psychological reinforcement • Provides social acceptance Copyright ©2016 Pearson Education, Inc. 2-9 FIGURE 2.3 Top 10 Corporate Global Brands Rank Company Brand Value (Billions) Country 1 Apple $98.3 United States 2 Google $93.3 United States 3 Coca-Cola $79.2 United States 4 IBM $78.8 United States 5 Microsoft $59.5 United States 6 General Electric $46.9 United States 7 McDonald’s $41.9 United States 8 Samsung $39.6 South Korea 9 Intel $37.3 United States 10 Toyota $35.3 Japan Source: Based on ‘2013 Ranking of Top 100 Brands,’ Interbrand, www.interbrand.com/en/best-globa-brands/2013/top100-list, accessed September 30, 2013. Copyright ©2016 Pearson Education, Inc. 2-10 Role of Brand Image Company Perspective • • • • • • • • Extension of feelings to new products Ability to charge more Consumer loyalty More frequent purchases Positive word-of-mouth Greater channel power Attracts higher quality employees More favorable ratings Copyright ©2016 Pearson Education, Inc. 2-11 Identifying the Desired Image •Evaluate current image •Ask customers •Ask non-customers •Can be strategic advantage Copyright ©2016 Pearson Education, Inc. 2-12 Creating the Right Image • Sends clear message • Portrays what the firm sells • Business-to-business may be challenging Copyright ©2016 Pearson Education, Inc. 2-13 Rejuvenating an Image • • • • • Sells new products Attracts new customers Retains current customers Key — Remain consistent with old and new Takes time and effort Copyright ©2016 Pearson Education, Inc. 2-14 FIGURE 2.5 Keys to Successful Image Rejuvenation n n n n Help former customers rediscover the brand Offer timeless consumer value Stay true to original, but contemporize Build a community Source: Based on ‘Comeback Kids: Haggar, Keds Stage Brand Revival,’ Advertising Age, October 30,2011, http://adage.com/print/230721. Copyright ©2016 Pearson Education, Inc. 2-15 Changing an Image • Extremely difficult • Necessary when target market declines or product no longer matches industry trends • Requires more than advertising • Begins internally — then moves outward Copyright ©2016 Pearson Education, Inc. 2-16 Corporate Names • • • • Overt names Implied names Conceptual names Iconoclastic names Copyright ©2016 Pearson Education, Inc. 2-17 FIGURE 2.7 Origins of Some Unique Corporate Names n Google — name started as a joke about the way search engines search for n Lego — combination of Danish phrase ‘leg godt’ which means ‘play well’ and n n Reebok — alternative spelling of ‘rhebok’ which is an African antelope Skype — original name was ‘sky-peer-to-peer,’ which was changed to ‘skyper’ n n Verizon – combination of Lain word ‘veritas’ which means ‘truth’ and ‘horizon’ Volkswagen – created by Adolph Hitler as a car for the masses that could n Yahoo — word from Jonathan Swift’s book Gulliver’s Travels, which information. Word ‘googol’ is one followed by 100 zeros. Latin word ‘lego’ which means ‘I put together.’ then to ‘skype.’ transport 2 adults and 3 children at speeds up to 62 mph. Name means ‘people’s car.’ represented a repulsive, filthy creature that resembled a Neanderthal man. Yahoo founders, Jerry Yang and David Filo considered themselves yahoos. Copyright ©2016 Pearson Education, Inc. 2-18 FIGURE 2.8 Tests of Quality Logos and Brand Names • Easily recognizable • Familiar • Consensual meaning • Stimulus codeability • Evokes positive feelings Copyright ©2016 Pearson Education, Inc. 2-19 FIGURE 2.9 Some of the Oldest Logos Company/Brand Year Company Founded Year Logo First Used John Deere 1837 1876 Coca-Cola 1886 1886 Johnson & Johnson 1886 1886 Union Pacific Railroad 1862 1888 Prudential Life Insurance 1875 1896 Campbell’s Soup 1869 1898 General Electric 1892 1900 Goodyear 1898 1901 Sherwin-Williams 1866 1905 DuPont 1802 1907 Source: Based on Samuel Weigley, Alexander Hess, and Paul Ausick, ‘The Oldest Company Logos in America,’ http://246wallst.com/2013/06/18/the-oldest-company-logos-in-america, June 18, 2013. Copyright ©2016 Pearson Education, Inc. 2-20 Brand Logos Aids in recall of specific brands • Aids in recall of advertisements • Reduces shopping effort • Reduces search time and evaluation of alternatives • Copyright ©2016 Pearson Education, Inc. 2-21 FIGURE 2 . 10 Tips on Creating or Changing Logos n n n n n The logo is a reflection of the brand. Creating logos requires knowledge and expertise. Use professional designers Make the logo simple Make the logo media transferrable Copyright ©2016 Pearson Education, Inc. 2-22 What colors should you use in your logo? n n n n n n Bonus Slide Black — seriousness, distinctiveness, boldness, power, sophistication, and tradition Blue — authority, dignity, security, faithfulness, heritage, corporate stability, and trust Brown/gold — history, utility, earthiness, richness, tradition, and conservative Gray/silver — somberness, authority, practicality, corporate mentality, and trust Green — tranquility, health, freshness, stability, and appetite Orange — fun, cheerfulness, warmth, exuberance, health, and youth Source: Adapted from ‘Jared McCarthy, ‘Logos: What Makes Them Work (Part 1of 2),’ (www.marketingprofs.com/5/mccarthy4.asp), February 22, 2005. Copyright ©2016 Pearson Education, Inc. 2-23 What colors should you use in your logo? n Pink — femininity, innocence, softness, health, and youth n Purple — sophistication, spirituality, wealth, royalty, youth, and mystery n Red — aggressiveness, passion, strength, vitality, fear, speed, and appetite n White/silver — purity, truthfulness, faith, contemporary, refined, and wealth n Yellow — youth, positive feelings, sunshine, cowardice, refinement, caution, and appetite Bonus Slide Source: Adapted from ‘Jared McCarthy, ‘Logos: What Makes Them Work (Part 1of 2),’ (www.marketingprofs.com/5/mccarthy4.asp), February 22, 2005. Copyright ©2016 Pearson Education, Inc. 2-24 Types of Brands • Family brands • Multiple products under one brand • Transfer associations • Brand extension • New good or service • Flanker brand • New brand within current category Copyright ©2016 Pearson Education, Inc. 2-25 FIGURE 2 . 12 Brands Sold by Procter & Gamble Cosmetics Dish washing Hair care CoverGirl Max Factor Cascade Dawn Ivory Joy Aussie Head & Shoulders Herbal Essences Pantene Copyright ©2016 Pearson Education, Inc. 2-26 FIGURE 2 . 13 Forms of Co-Branding (Alliance Branding) Ingredient Branding Co- Branding Cooperative Branding Complementary Branding Copyright ©2016 Pearson Education, Inc. 2-27 Developing Strong Brands Begins with understanding why consumers buy a brand. • • • • • • Where does your brand stand now? What are your objectives? What are you doing in terms of building your brand and business? What are your brand’s strengths? Weaknesses? Which opportunities should be pursued first? Where are the pitfalls? Copyright ©2016 Pearson Education, Inc. 2-28 FIGURE 2 . 14 Building Powerful Brands n n n n n n n n n Invest in the brand Create awareness Offer authenticity or uniqueness Build trust Deliver an experience Offer value Utilize social media Utilize mobile phones Act responsibly Copyright ©2016 Pearson Education, Inc. 2-29 Skyjacker has built a powerful brand by providing customers with a good experience and delivering value. Copyright ©2016 Pearson Education, Inc. 2-30 Brand Loyalty n Ultimate objective n Only brand that customers purchase n Drivers of brand loyalty — Emotion — Value n Consumer experience Copyright ©2016 Pearson Education, Inc. 2-31 F I G U R E 2 . 15 Top Brands (CLEI) Category Top Brand CLEI Emotional Engagement Athletic Footwear Sketchers 86% JP Morgan Chase 79% Car Insurance State Farm 82% Casual Dining Applebee’s 82% Clinique 93% Gasoline Shell 80% Major League Sports NFL 86% Pizza Domino’s 84% Quick Service Restaurant Subway 95% Diet Coke 89% Bank Cosmetics Soft Drinks (Diet) Source: Based on ‘Brand Keys 2013 Customer Loyalty Index Finds Seismic Shift I How Consumers Emotionally Engage with Products, Services,’ Press Release, http://brandkeys.com/wp-content/uploads/2013/02/2013-CLEI-Press-Release-FINALOverall.pdf Copyright ©2016 Pearson Education, Inc. 2-32 Brand Equity n Brand parity n Brand equity — Set of characteristics makes brand unique — Helps fight brand parity — Perceived better Copyright ©2016 Pearson Education, Inc. 2-33 F I G U R E 2 . 16 Methods of Measuring Brand Equity n n n n Financial value Stock market value Revenue premium Consumer value Copyright ©2016 Pearson Education, Inc. 2-34 F I G U R E 2 . 17 Top Ten Most Loved Brands Rank Company Emotional Index 1 Disney 74.7 2 Yahoo! 74.3 3 Google 74.2 4 Sony 74.1 5 Nestle 73.3 6 Auchan 72.9 7 Netflix 72.8 8 Whole Foods 72.7 9 Apple 72.7 10 Lowe’s 72.5 Source: Based on Christopher Heine, ‘Check Out the Top 100 Beloved Brands,’ Adweek, www.adweek.com/news/advertising-branding/check-out-the-top-100-beloved-brands, October 10, 2013. Copyright ©2016 Pearson Education, Inc. 2-35 Private Brands • Popularity has fluctuated • Connotation of low price, low quality • Historically à price-sensitive consumers • Retailers investing in private brands • Consumers see few differences Copyright ©2016 Pearson Education, Inc. 2-36 FIGURE 2 . 16 Changes in Private Labels • • • • • • Improved quality Perceived as a value purchase Higher loyalty towards retail outlets and lower loyalty towards specific brands Used to differentiate retail outlets Increased advertising of private brands Increased quality of in-store displays and packaging of private brands Copyright ©2016 Pearson Education, Inc. 2-37 Advantages to Retailers Private Labels • • • • • Higher gross margins Lower prices Greater loyalty to stores and brands within a store Differentiates stores from national brands J.C. Penney — private labels Copyright ©2016 Pearson Education, Inc. 2-38 FIGURE 2 . 19 Tactics Used to Combat Private Labels • • • • • Focus on core brands Increase advertising Introduce new products Focus on in-store selling, packaging Use alternative methods of marketing Source: Adapted from Vanessa L. Facenda, ‘A Swift Kick to the Privates,’ Brandweek, Vol. 48, No. 31 (September 3, 2007), pp. 24-28. Copyright ©2016 Pearson Education, Inc. 2-39 Packaging • • • • • Final opportunity to make impression 69% of purchase decisions made in-store Have three seconds to catch attention Must stand out Tell customers what is inside Copyright ©2016 Pearson Education, Inc. 2-40 FIGURE 2 . 18 Primary Purposes of Packaging n n n n n n n Protect product Provide for ease of shipping and handling Provide for easy placement on shelves Prevent or reduce theft Prevent tampering (drugs and food) Meet consumer needs for speed, convenience, and portability Communicate marketing message Copyright ©2016 Pearson Education, Inc. 2-41 Labels • Must meet legal requirements • Provide marketing opportunity Copyright ©2016 Pearson Education, Inc. 2-42 FIGURE 2 . 21 Uses for QR Codes Packages and Labels n n n n n n Access product information Access videos on product use Access recipes and nutritional information Compare sizes, brands, and styles Access product reviews and ratings Provide links to social media and entertainment sites Source: Based on Heidi Tolliver-Walker, ‘The Top Five Most Effective Ways to Use QR Codes on Packaging,’ Seybold Report: Analyzing Publishing Technologies, Vol. 12, No. 1, January 9, 2012, pp. 2-6 Copyright ©2016 Pearson Education, Inc. 2-43 Ethical Issues • Brand infringement • Brand name becomes a generic term • Domain or cyber squatting Copyright ©2016 Pearson Education, Inc. 2-44 International Implications • • • • • • • Adaptation vs. standardization Standardization reduces costs Shrinking world à standardization High-profile, high-involvement — global brand Low-involvement products — local brand Packaging and labeling Image and positioning issues Copyright ©2016 Pearson Education, Inc. 2-45 Blog Exercises Copyright ©2016 Pearson Education, Inc. 2-46 Integrated Advertising, Promotion, and Marketing Communications Copyright ©2016 Pearson Education, Inc. 2-47 th edition 8 Integrated Advertising, Promotion, and Marketing Communications Kenneth E. Clow Donald Baack P Pearson Purchase answer to see full attachment Explanation & Answer: 3 pages Tags: marketing promotion Integrated Advertising User generated content is uploaded by users for the purposes of learning and should be used following Studypool’s honor code & terms of service.