Lectures "Marketing management - Chapter 10: Crafting brand equity" provides students with the knowledge: Developing and establishing a brand positioning, differentiation strategies, positioning and branding a small business. Invite you to refer to the disclosures.
CHAPTER 10 CRAFTING BRAND EQUITY Nguyen Tien Dung, MBA Email: dung.nguyentien3@hust.edu.vn Chapter Questions ● How can a firm develop and establish an effective positioning in the market? ● How marketers identify and analyse competition? ● How are brands successfully differentiated? ● What are the differences in positioning and branding with a small business? © Nguyễn Tiến Dũng Main Contents Developing and Establishing a Brand Positioning Differentiation Strategies Positioning and Branding a Small Business © Nguyễn Tiến Dũng Developing and Establishing a Brand Positioning ● Determining a Competitive Frame of Reference ● Identifying Optimal Points-of-Difference and Points-of-Parity © Nguyễn Tiến Dũng Determining A Competitive Frame of Reference © Nguyễn Tiến Dũng Determining A Competitive Frame of Reference ● Identifying Competitors ● Analyzing Competitors © Nguyễn Tiến Dũng ● Four crucial questions for marketers to create value innovation by Kim and Mauborgne (Blue Ocean Strategy) Which of the factors that our industry takes for granted should we eliminate? Which factors should we reduce well below the industry’s standard? Which factors should we raise well above the industry’s standard? Which factors should we create that the industry has never offered? ● All three platforms on which value innovation can take place: physical product; service including maintenance, customer service, warranties, and training for distributors and retailers; and delivery (channels and logistics) © Nguyễn Tiến Dũng Analyzing Competitors © Nguyễn Tiến Dũng Identifying Optimal Points-of-Difference and Points-ofParity ● Points-of-Difference ● Points-of-Parity © Nguyễn Tiến Dũng Points-of-Difference ● Examples: ● Apple (design, ease-of-use, and irreverent attitude), ● Nike (performance, innovative technology, and winning), ● Southwest Airlines (value, reliability, and fun personality) ● Choose a brand association as a point of difference ● Desirable to consumer ● Deliverable by the company ● Differentiating from competitors © Nguyễn Tiến Dũng 10 Points-of-Parity ● Attribute or benefit associations that are not necessarily unique to the brand but may in fact be shared with other brands ● Category points-of-parity are attributes or benefits that consumers view as essential to a legitimate and credible offering within a certain product or service category ● Competitive points-of-parity are associations designed to overcome perceived weaknesses of the brand © Nguyễn Tiến Dũng 11 Perceptual map © Nguyễn Tiến Dũng 12 Brand Mantras ● A brand mantra is an articulation of the heart and soul of the brand and is closely related to other branding concepts like “brand essence” and “core brand promise.” ● Three key criteria: ● Communicate A good brand mantra should define the category (or categories) of business for the brand and set the brand boundaries It should also clarify what is unique about the brand ● Simplify An effective brand mantra should be memorable For that, it should be short, crisp, and vivid in meaning ● Inspire Ideally, the brand mantra should also stake out ground that is personally meaningful and relevant to as many employees as possible © Nguyễn Tiến Dũng 13 ● Authentic athletic performance © Nguyễn Tiến Dũng 14 Establishing Brand Positioning © Nguyễn Tiến Dũng 15 Establishing Brand Positioning ● Communicating category membership ● Announcing category benefits ● Comparing to exemplars ● Relying on the product descriptor ● Communicating POPs and PODs © Nguyễn Tiến Dũng 16 Differentiation Strategies ● Means of differentiation ● Rational versus Emotional branding © Nguyễn Tiến Dũng 17 Means of differentiation Product Differentiation Service Differentiation Channel Differentiation © Nguyễn Tiến Dũng Employee Differentiation Image Differentiation 18 Emotional Branding ● Brands that are lovemarks, according to Roberts, command both respect and love ● Love marks result from a brand’s ability to achieve mystery, sensuality, and intimacy ● Mystery draws together stories, metaphors, dreams, and symbols Mystery adds to the complexity of relationships and experiences because people are naturally drawn to what they don’t know ● Sensuality keeps the five senses of sight, hearing, smell, touch, and taste on constant alert for new textures, intriguing scents and tastes, wonderful music, and other sensory stimuli ● Intimacy means empathy, commitment, and passion The close connections that win intense loyalty as well as the small perfect gesture © Nguyễn Tiến Dũng 19 ● In general, the firm should monitor three variables when analyzing potential threats posed by competitors: ● Share of market—The competitor’s share of the target market ● Share of mind—The percentage of customers who named the competitor in responding to the statement,“Name the first company that comes to mind in this industry.” ● Share of heart—The percentage of customers who named the competitor in responding to the statement,“Name the company from which you would prefer to buy the product.” © Nguyễn Tiến Dũng 20 Alternative Approaches to Positioning © Nguyễn Tiến Dũng 21 ● Brand narratives and storytelling ● Brand journalism ● Cultural branding © Nguyễn Tiến Dũng 22 Positioning and Branding a Small Business ● Creatively conduct low-cost marketing research ● Focus on building one or two strong brands based on one or two key associations ● Employ a well-integrated set of brand elements ● Create buzz and a loyal brand community ● Leverage as many secondary associations as possible © Nguyễn Tiến Dũng 23 ... © Nguyễn Tiến Dũng Analyzing Competitors © Nguyễn Tiến Dũng Identifying Optimal Points-of-Difference and Points-ofParity ● Points-of-Difference ● Points-of-Parity © Nguyễn Tiến Dũng Points-of-Difference... Reference ● Identifying Optimal Points-of-Difference and Points-of-Parity © Nguyễn Tiến Dũng Determining A Competitive Frame of Reference © Nguyễn Tiến Dũng Determining A Competitive Frame of... to as many employees as possible © Nguyễn Tiến Dũng 13 ● Authentic athletic performance © Nguyễn Tiến Dũng 14 Establishing Brand Positioning © Nguyễn Tiến Dũng 15 Establishing Brand Positioning