Lectures Brand Management
(26/08) Introduction – Brand management (lecture 1 + 2)
How do I get a buyer to prefer and buy my ‘commodity’?
- Differentiate it from competition and make it more attractive by branding your
‘commodity’.
Brands (brandr -> to burn)
A name, term, sign, symbol or design intended to create identification for the goods and
services of one seller of group of sellers. It derives a meaning, reputation, preference in the
eyes of the consumer (Louis Vuitton bag).
Redesigning Brands
Redesigning logos of brands can stimulate certain emotions. Logos will create recognition.
For example, McDonalds changing from bold red and yellow to green and yellow. This to
create a healthier image. However, the image of fast food might be too heavily linked to
unhealthiness that solely changing the brand logo might not work.
Different perspectives
- Brands vs. Products: Products that function for attention, acquisition, use or consumptions
that satisfies a need or want (Kotler). Branding is more than just a logo or design, the
meaning, reputation, preference of the brand name can make people pay three times as
much.
Four levels of Levitt:
+ total product = what the consumer thinks of the product (intangible)
,Brand Management Perspectives
Inside out: Brand from the organizations’ point of view:
– physical product: Ex. Philips problem: sole focus on the inside out point of view. With
that, they lost focus on their consumer which caused a decline in their market share.
Instead, they should have focused more on the consumer and what they preferred.
– Product-driven brand philosophy
Outside in: Brand from the customers’ point of view:
– psychological product
– people-driven brand philosophy
Brands (intangibles) have become the key source of corporate value. Whereas in 1975 it only
counted for 18%, nowadays it counts for almost 75%. In the 90’s there was a coke war
between Pepsi and Coca Cola. Blind taste test preferred the Pepsi sample, whereas brand
names revealed preferred Coca Cola. Because of these results, Coca Cola changed their
recipe to make the coke sweater. The values that these brand can be rational and tangible or
symbolic, emotional and intangible (Coca Cola). A brand can satisfy the same needs, but
differ in their symbolic value.
Product Brand
• Tangible • Intangible:
• Can be copied • Unique
• Can be outdated • Potentially timeless
• Involves transactions • Forms basis of connections
Organization Customer
A brand image is one of the most important valued asset that needs to be handled carefully.
Tangible assets such as management skills, marketing, and financial expertise are essential
for organizations.
Customer value: (engagement, convenience, fitness for use)
Best service, status, less risk, time efficient, authenticity, bargain
, surplus equals the perceived value (gains – pains)
Organization value proposition: (employees, products, processes)
Marketers needs to synchronize these different lenses by combining the different values.
Value propositions fundamentals
successful if it is easy to understand and to remember
1. Need: I understand that you are hungry. (compelling, defensible)
2. Approach: Let’s go to the Campus Center (address the need)
3. Benefits/costs: It has great food, it’s quiet
4. Competition/alternative: and we can continue our discussion better than at McDonald’s
The canvas business model (new preferred kind of model)
A value proposition is a promise of value to be delivered and acknowledged, and a belief
from the customer that value will be appealed and experienced. A value proposition can
apply to an entire organization, or parts thereof, customer accounts, products/services or
brands.
EXAMPLE - Airbnb
Gains: real authentic reviews from others, cheap, being around the locals
Pains: customers making a mess
Airbnb pain relievers: financial handling, 1 mln dollar guarantee (mess)
Airbnb is unlike hotels and most B&B’s, a community-based, two-sided online platform that
facilitates the process of booking private living spaces for travelers. On the one side it safely
enables house owners to list their space and earn rental money. On the other side it
provides travelers easy access to renting private homes. With over 1,500,000 listings in
34,000 cities and 190 countries, its wide coverage enables travelers to rent private homes all
over the world. Personal profiles as well as a rating and reviewing system provide
, information about the host and what is on offer. Vice versa, hosts can choose on their own
who to rent out their space to.
Problems:
- People are not aware of the pain and gains.
- The pain relievers did not actually relieve the pain.
EXAMPLE II - Segway
Segway did not properly segment the market (they targeted everyone). The cool factor
never reached its expected potential. The need was missing while the costs were too high
for most. Instead, electric step which properly segments the touristic market in certain
tourist areas (successful value proposition)
Checklist Value proposition
The Need was clearly presented in a compelling presentation.
• -Is the idea based on a clearly identifiable client/customer need?
• -Is it innovative, bold, and world-changing?
• -Has the need been clearly defined and supported; what is the critical issue?
The Approach will meet the Need.
• -Does the idea represent a truly original concept?
• -Has technical feasibility been demonstrated?
• -Has a reasonable strategy for moving ahead been made?
• -Is there a path to commercialization?
The Benefits of this project are clear.
• -Has the single most compelling benefit been identified?
• -Is the value proposition defined?
• -Is there intellectual property involved?
• -Is there market data to support the proposed strategy?
• -Does the idea have a competitive advantage?
• -Is it a viable investment candidate?
The Costs and Competition are clear.
• -Have the risks inherent in the idea been identified and dealt with?
• -Is there a clear distinctive competence?
• -Is feasibility based on evidence or assertions?
(26/08) Introduction – Brand management (lecture 1 + 2)
How do I get a buyer to prefer and buy my ‘commodity’?
- Differentiate it from competition and make it more attractive by branding your
‘commodity’.
Brands (brandr -> to burn)
A name, term, sign, symbol or design intended to create identification for the goods and
services of one seller of group of sellers. It derives a meaning, reputation, preference in the
eyes of the consumer (Louis Vuitton bag).
Redesigning Brands
Redesigning logos of brands can stimulate certain emotions. Logos will create recognition.
For example, McDonalds changing from bold red and yellow to green and yellow. This to
create a healthier image. However, the image of fast food might be too heavily linked to
unhealthiness that solely changing the brand logo might not work.
Different perspectives
- Brands vs. Products: Products that function for attention, acquisition, use or consumptions
that satisfies a need or want (Kotler). Branding is more than just a logo or design, the
meaning, reputation, preference of the brand name can make people pay three times as
much.
Four levels of Levitt:
+ total product = what the consumer thinks of the product (intangible)
,Brand Management Perspectives
Inside out: Brand from the organizations’ point of view:
– physical product: Ex. Philips problem: sole focus on the inside out point of view. With
that, they lost focus on their consumer which caused a decline in their market share.
Instead, they should have focused more on the consumer and what they preferred.
– Product-driven brand philosophy
Outside in: Brand from the customers’ point of view:
– psychological product
– people-driven brand philosophy
Brands (intangibles) have become the key source of corporate value. Whereas in 1975 it only
counted for 18%, nowadays it counts for almost 75%. In the 90’s there was a coke war
between Pepsi and Coca Cola. Blind taste test preferred the Pepsi sample, whereas brand
names revealed preferred Coca Cola. Because of these results, Coca Cola changed their
recipe to make the coke sweater. The values that these brand can be rational and tangible or
symbolic, emotional and intangible (Coca Cola). A brand can satisfy the same needs, but
differ in their symbolic value.
Product Brand
• Tangible • Intangible:
• Can be copied • Unique
• Can be outdated • Potentially timeless
• Involves transactions • Forms basis of connections
Organization Customer
A brand image is one of the most important valued asset that needs to be handled carefully.
Tangible assets such as management skills, marketing, and financial expertise are essential
for organizations.
Customer value: (engagement, convenience, fitness for use)
Best service, status, less risk, time efficient, authenticity, bargain
, surplus equals the perceived value (gains – pains)
Organization value proposition: (employees, products, processes)
Marketers needs to synchronize these different lenses by combining the different values.
Value propositions fundamentals
successful if it is easy to understand and to remember
1. Need: I understand that you are hungry. (compelling, defensible)
2. Approach: Let’s go to the Campus Center (address the need)
3. Benefits/costs: It has great food, it’s quiet
4. Competition/alternative: and we can continue our discussion better than at McDonald’s
The canvas business model (new preferred kind of model)
A value proposition is a promise of value to be delivered and acknowledged, and a belief
from the customer that value will be appealed and experienced. A value proposition can
apply to an entire organization, or parts thereof, customer accounts, products/services or
brands.
EXAMPLE - Airbnb
Gains: real authentic reviews from others, cheap, being around the locals
Pains: customers making a mess
Airbnb pain relievers: financial handling, 1 mln dollar guarantee (mess)
Airbnb is unlike hotels and most B&B’s, a community-based, two-sided online platform that
facilitates the process of booking private living spaces for travelers. On the one side it safely
enables house owners to list their space and earn rental money. On the other side it
provides travelers easy access to renting private homes. With over 1,500,000 listings in
34,000 cities and 190 countries, its wide coverage enables travelers to rent private homes all
over the world. Personal profiles as well as a rating and reviewing system provide
, information about the host and what is on offer. Vice versa, hosts can choose on their own
who to rent out their space to.
Problems:
- People are not aware of the pain and gains.
- The pain relievers did not actually relieve the pain.
EXAMPLE II - Segway
Segway did not properly segment the market (they targeted everyone). The cool factor
never reached its expected potential. The need was missing while the costs were too high
for most. Instead, electric step which properly segments the touristic market in certain
tourist areas (successful value proposition)
Checklist Value proposition
The Need was clearly presented in a compelling presentation.
• -Is the idea based on a clearly identifiable client/customer need?
• -Is it innovative, bold, and world-changing?
• -Has the need been clearly defined and supported; what is the critical issue?
The Approach will meet the Need.
• -Does the idea represent a truly original concept?
• -Has technical feasibility been demonstrated?
• -Has a reasonable strategy for moving ahead been made?
• -Is there a path to commercialization?
The Benefits of this project are clear.
• -Has the single most compelling benefit been identified?
• -Is the value proposition defined?
• -Is there intellectual property involved?
• -Is there market data to support the proposed strategy?
• -Does the idea have a competitive advantage?
• -Is it a viable investment candidate?
The Costs and Competition are clear.
• -Have the risks inherent in the idea been identified and dealt with?
• -Is there a clear distinctive competence?
• -Is feasibility based on evidence or assertions?
