Brand+Meaning+and+Associations

Marketing 30th September, 2010: Inside out vs. outside in: short term vs. long term Things that reinforce your strategic advantage What are the things that allow us to compete in the market What is a strategic competitive advantage – helps you compete in the market place, different from competition and difficult to copy Management culture of GE; Brain on Brands: 1. Brains are affectively based (Emotion) Perception, create an environment that the customer has an emotional attachment with, higher quality of service. 2. Brands matter across lots of categories – Invest in the brands to make it a strategic advantage. 3. A brand that is established is a strategic asset – positive reinforcement of the brand promise. To deliver on capabilities Branding Definition: Brand is a name, term, design, symbol that identifies a firm's products and differentiates them from competitors' products Benefits of Branding: brands help customers identify specific products, help buyers evaluate the quality of products. Brands facilitates emotional attach, and foster brand loyalty. Cash Flow Equation: cash flows = price - cost over a given period Benefits of High brand awareness- gives you a competitive advantage in the market- I recently purchased a more expensive Apple MacBook Pro instead of a less expensive HP or Dell laptop because I like the way Apple's products are easy to use. Brand meanings and associations – brand meaning helps a firm introduce a new product that carries the name of one or more of its existing products because buyers are already familiar with those brands. Brand Promise: Psychological Right set of associations -> not to take risk psychologically Depending on the right target market-> consistency maintained with association From channel point ->know what you stand for Customer’s point -> research, reduce costs -> reduce psychological risk Competitors point -> barrier to entry, persistent cash flows, increased market share Value for seller -> positive cash flows Brands clearly have value – the estimates may be relatively similar Financial Value (NOPAT – Net operating profit after taxes): Financial value (nopat- net operating profit after taxes) x Portion of Purchase attributable to brand (brand value for one year) x brand strength* = $# Brant strength includes: * 1) Internal commitment to brand 2) Legal, proprietary protection 3) clarity of value proposition, internal 4) Authenticity of Brand Promise 5) Consistency of Brand promise across 6) Relevant to the target market, brand promise 7) Understanding of Brand Promise association 8) Salience of brand promise 9) Differentiations of Brand Promise 10) Flexibility of brand promise

A brand is a company's assets. When a brand is increased its values, the total asset value of the company is also increased. You will never know the value of your brand until you sell it, you could only estimate the value of your brand .The value of your brand is not recorded with your assets , it is something intangible.

How to make the brand stronger: Internal External (Market) Brand meaning: Customer perceptions: Brand dominance Managerial issues Sequential Brand Extensions Summary: