Scribd Logo
Upload

Welcome to Scribd!

  • 33 views

    Lecture 7 - Branding Slides

    Uploaded by

    LIN XIAOLI
    This document discusses branding and the rise of direct-to-consumer brands. It defines what a brand is, outlines the benefits of branding such as reassurance and price premiums. It also examines how brands work by creating associations and consideration at different stages of the customer journey. The document also looks at how brands grow, discussing concepts like double jeopardy and the need for continuous communication and availability. It then outlines Keller's four steps to building brand equity and finally discusses the success of modern direct-to-consumer brands through insights, experience and digital marketing.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Lecture 7 - Branding Slides

    Uploaded by

    LIN XIAOLI
    33 views22 pages
    This document discusses branding and the rise of direct-to-consumer brands. It defines what a brand is, outlines the benefits of branding such as reassurance and price premiums. It also examines how brands work by creating associations and consideration at different stages of the customer journey. The document also looks at how brands grow, discussing concepts like double jeopardy and the need for continuous communication and availability. It then outlines Keller's four steps to building brand equity and finally discusses the success of modern direct-to-consumer brands through insights, experience and digital marketing.

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document discusses branding and the rise of direct-to-consumer brands. It defines what a brand is, outlines the benefits of branding such as reassurance and price premiums. It also examines how brands work by creating associations and consideration at different stages of the customer journey. The document also looks at how brands grow, discussing concepts like double jeopardy and the need for continuous communication and availability. It then outlines Keller's four steps to building brand equity and finally discusses the success of modern direct-to-consumer brands through insights, experience and digital marketing.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    33 views22 pages

    Lecture 7 - Branding Slides

    Uploaded by

    LIN XIAOLI
    This document discusses branding and the rise of direct-to-consumer brands. It defines what a brand is, outlines the benefits of branding such as reassurance and price premiums. It also examines how brands work by creating associations and consideration at different stages of the customer journey. The document also looks at how brands grow, discussing concepts like double jeopardy and the need for continuous communication and availability. It then outlines Keller's four steps to building brand equity and finally discusses the success of modern direct-to-consumer brands through insights, experience and digital marketing.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 22

    Branding

    UCD Michael Smurfit Scoil Ghnó


    School of Business Michael Smurfit UCD
    Agenda

    • What is a brand?
    • Benefits of Branding
    • How do brands work?
    • How do brands grow?
    • Building a brand
    • Brands in a digital age: DTC Brands
    What is Branding?

    – I’ll take the brands, you take the factories. We’ll get
    back together in five years time and see who is doing
    best”
    – Tony O’Reilly

    – “Of all the things that your company owns, brands are
    far and away the most important and the toughest.
    Founders die. Factories burn down. Machinery wears
    out. Inventories get depleted. Technology becomes
    obsolete. Brand loyalty is the only sound foundation on
    which business leaders can build enduring, profitable
    growth. “
    – Jim Mullen
    What is a Brand?
    • Name: Reebok

    • Term: The Ultimate Driving Machine?

    • Sign

    • Symbol

    • Design

    • Or Combination of These Identify the Offering of a Seller


    • About creating difference- could be functional and/or emotional
    • Need to teach ‘who’ the product is, what it does and why
    customers should care.
    Branding- Benefits

    • Benefits of Branding:
    • Re-assurance
    • Cues to purchase
    • Brand Extensions
    • Price Premium
    • Power- with suppliers and distributors
    • Defence against price competition
    • Consistent Stream of Income
    • Top Brands 2022?
    What is branding?
    Why is this important to a firm?
    • Customers want to buy brands
    – Second biggest deodorant brand in the world.
    – Targeted at 13-24- declines with age after.
    – Move (within Unilever Portfolio to Sure/Dove for Men) to
    other brands after
    • Pricing power
    – 53% price cut to match own label
    – Outsells own label 3:1
    • Negotiation strength
    – 100% distribution
    II. How do brands work?
    How do brands work?
    Post-
    purchase Ownership
    activities experience

    Credit Confirmation

    Customer Retention
    Trigger Purchase
    Customer Acquisition

    Consideration Conversion
    Pre- “In-store”
    purchase experience
    activities
    Source: Peter Farquhar/ George
    Day
    III. How do brands grow
    Brand loyalty is often a myth. "Your consumers
    are just somebody else's consumers who
    occasionally buy you" (Martin Weigel 2013)
    How do Brands Grow?
    • Sharp (2010)
    • Growth Comes from gaining new users rather than driving increased loyalty-
    most of a brands users will be light users therefore need to get non and light
    users rather than worrying so much about loyal users.
    Brand growth and decline come from getting new users rather than
    loyalty
    • Brands need to build mental and physical availability
    – Mental availability- many options, tend to make satisficing decisions.
    Brand loyalty is passive rather than active. Therefore need associations that
    can be recalled easily (usually have an emotional element) and need to be
    repeated continuously (i.e. continuous advertising) as well as refreshed
    (e.g. Gillette) – so get top of mind awareness
    – Physical Availability- i.e. distribution. Need to be able to buy. Bigger the
    brand the greater the chance of distribution everywhere.
    • Even though brands differentiate themselves, in reality consumers still react
    and buy within a repertoire. Key is not differentiation but distinctiveness for a
    How do brands grow: ‘Double Jeopardy’ Law
    How do brands grow: ‘Double Jeopardy’ Law
    How Do Brands Grow? Byron Sharp
    1. Continuously reach all buyers of the category (communication
    + distribution) – don’t ever be silent.
    2. Ensure the brand is easy to buy (be it availability, delivery,
    variants, pack sizes, ease of finance etc)
    3. Get noticed (grab attention & focus on brand salience to prime the
    user’s mind).
    4. Refresh & rebuild memory structures (respect existing
    associations that make the brand easy to notice & easy to buy)
    5. Create & use distinctive brand assets (sensory cues that get
    noticed & stay top of mind).
    6. Be consistent (avoid unnecessary changes, whilst keeping brand
    fresh & interesting).
    7. Stay Competitive (keep the brand easy to buy & avoid giving
    excuses not to buy).
    IV. Branding: 4 Steps of Building Brand
    Equity

    • (1) Ensure identification of the brand with customers and


    an association of the brand in customers mind with a
    product class or need
    • E.g. Orange Juice (class) or if thirsty (need)- Tropicana
    – Fundamental question a customer asks here is-
    • who are you? (Brand Identity)

    • (2)Firm needs to establish the brand meaning in the minds


    of consumers by linking it to a host of tangible and
    intangible brand associations
    • E.g. Zurich pensions- product performance (tangible) e.g. ROI,
    Imagery (intangible)- Safety and growth
    – Fundamental question a consumer asks here-
    – What are you? (brand meaning)
    • So key product benefits and the images that you want
    associated.
    IV. Branding: 4 Steps of Building Brand
    Equity
    • (3) The firm elicits the correct responses to this brand
    identification and brand meaning
    • Get thoughts (is it superior to other brands, credible) and
    feelings (likes and dislikes- associations like fun, warm etc.) to
    the brand
    • So you get judgements and feelings
    • Customer asks the questions- What about you? What do I think
    or feel about you? (brand responses)
    • (4) The firm converts brand responses to create an intense,
    active loyalist relationship between customers and the
    brand
    • E.g. Brand Communities- Apple, Harley-Davidson
    • Customers Asks the Question- what about you and me? What
    kind of association and how much of a connection would I like to
    have with you?
    4 Steps of Building Brand Equity
    (Keller)
    4. Intense and
    active brand
    loyalty
    Attachment
    Loyalty, sense of
    community, engagement

    3. Positive and
    accessible brand
    Rational Emotional evaluations
    evaluation evaluation
    Brand value, Feelings, social
    credibility approval, self respect
    2. Strong,
    favourable
    and unique brand
    Functional image Emotional image associations
    and benefits and benefits
    Physique (design), quality, Who, when, how, where used,
    reliability, service, price personality, history
    1. Deep and broad
    Brand awareness depth and breadth brand awareness
    Depth (unaided recall, aided recall, or recognition)
    and breadth (when?)
    Introduction – Direct to Consumer (DTC) Brands
    Rise of Direct to Consumer (DTC) Brands

    Direct-to-consumer (DTC) brands like Dollar Shave Club, Glossier or


    Warby Parker have seen huge growth, with many rapidly attaining
    valuations of > $1 billion.

    Many DTC brands have significantly disrupted existing markets by


    radically changing the ways they create and deliver value to
    customers.
    Rise of Direct to Consumer (DTC) Brands

    What makes DTC brands so successful?

    • Customer Insights – better understanding of customers and their


    frustrations.
    • R&D and Product Design – value proposition less about product
    features/more about convenience, price and experience.
    • Production – often outsourced, less capital intensive.
    • Marketing & Distribution – use of online platforms (e.g., Shopify); social
    media; digital
    • Customer Experience – better user experience, no hassle-returns, social
    media conversations.
    Direct to Consumer (DTC) Brands

    DTC Brands – Are they here to stay?


    Conclusion

    • What is a brand?
    • Benefits of Branding
    • How do brands work?
    • How do brands grow?
    • Building a brand
    • Brands in a digital age: DTC Brands

    You might also like