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Chapter 12 - Managing Brand Over Time

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Chapter 12 - Managing Brand Over Time

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AKMAL
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© © All Rights Reserved
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Strategic Brand Management: Building,

Measuring, and Managing Brand Equity


Fifth Edition, Global Edition

Chapter 14
Managing Brands Over Time

Copyright © 2020 Pearson Education Ltd. All Rights Reserved


Learning Objectives
14.1 Understand the important considerations in brand
reinforcement
14.2 Describe the range of brand revitalization options
available to a company
14.3 Outline the various strategies to improve brand
awareness and brand image
14.4 Define the key steps in managing a brand crisis

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Reinforcing Brands
• Maintaining Brand Consistency
• Protecting Sources of Brand Equity
• Fortifying versus Leveraging
• Fine-Tuning the Supporting Marketing Program

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Maintaining Brand Consistency
• Maintaining consistency involves two key aspects:
– Consistency of marketing support, and
– Consistency of brand associations

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Protecting Sources of Brand Equity
• Unless the company makes strategic positioning of the
brand less powerful, there is:
– Little need to deviate from a successful positioning
• Brands should always look for potentially powerful new
sources of brand equity
– Top priority is to preserve and defend those that
already exist
• Key sources of brand equity are of enduring value

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Fortifying Versus Leveraging
• Marketers can design marketing programs that mainly try
to capitalize on or maximize brand awareness and image
• Without its sources of brand equity, the brand itself may
not continue to yield valuable benefits

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Fine-Tuning the Supporting Marketing
Program
• Product-related performance associations
• Nonproduct-related imagery associations

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Revitalizing Brands
• In virtually every product category are examples of once
prominent and admired brands that have fallen on hard
times or even completely disappeared
– Brands such as Microsoft, GE, and Old Spice have
successfully repositioned their brands
• Two strategic options:
1. Expand the depth or breadth of brand awareness, or
both
2. Improve strength, favorability, and uniqueness of the
brand associations

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Expanding Brand Awareness
• Identifying Additional or New Usage Opportunities
• Identifying New and Completely Different Ways to Use the
Brand

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Improving Brand Image
• Identifying the Target Market
• Repositioning the Brand
• Changing Brand Elements

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Identifying the Target Market
• Key target market segments as part of the brand
revitalization strategy:
– Retaining vulnerable customers
– Recapturing lost customers
– Identifying neglected segments
– Attracting new customers

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Repositioning the Brand
• May require more compelling points-of-difference
• May need to reposition to establish a point-of-parity on
some key image dimension

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Changing Brand Elements
• May need to convey new information
• May need to signal that a brand has taken on new
meaning because something in the marketing program has
changed

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Adjustments to the Brand Portfolio
• Migration Strategies
• Acquiring New Customers
• Retiring Brands

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Migration Strategies
• Brand migration strategy
– Helps consumers understand how various brands in
the portfolio can satisfy their needs
▪ As they change over time or as products and
brands themselves change over time
• Managing brand transitions is especially important in
rapidly changing, technologically intensive markets
– Ideally, brands will be organized in consumers’ minds

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Acquiring New Customers
• Trade-offs between attracting new customers and retaining
existing ones
• Firms must proactively develop strategies to attract new
customers, especially younger ones

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Retiring Brands
• Some brands are not worth saving
– Sources of brand equity may have dried up
– Damaging and difficult-to-change new associations
may have been created

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Obsoleting Existing Products
• Technological changes and shifting consumer tastes can
be challenging for brands
– May not have kept up with changes in the marketplace
• Discontinuing brands (or deliberate obsoleting) may be a
bold move
– But one which paves the way for introducing
innovative, new brands

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Figure 14-9: Brand Reinforcement
Strategies

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Figure 14-10: Brand Revitalization
Strategies

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Strategic Brand Management: Building,
Measuring, and Managing Brand Equity
Fifth Edition, Global Edition

Chapter 15
Managing Brands Over
Geographic Boundaries
and Market Segments

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Learning Objectives (1 of 2)
15.1 Understand the role of a regional marketing strategy
with a focus on marketing based on geodemographics,
ethnicity, and age
15.2 Understand the rationale for developing a global brand
15.3 Outline the main advantages and disadvantages of
developing a global marketing program

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Learning Objectives (2 of 2)
15.4 Define a global brand and describe the strategic steps
in developing a global brand positioning
15.5 Describe how to tailor different marketing mix elements
to global markets
15.6 Describe some of the unique characteristics of brand
building in emerging growth markets such as China

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Regional Market Segments
• A regionalization strategy can make a brand more relevant
and appealing to an individual
• Downsides:
– Marketing efficiency may suffer and costs may rise with
regional marketing
– Regional campaigns may force local producers to
become more competitive
• Upside:
– Marketing can have a stronger impact

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Other Demographic and Cultural
Segments
• Marketing Based on Age
• Marketing Based on Ethnicity

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Marketing Based on Age
• Marketers particularly interested in millennials
• Younger generation may be more easily influenced by
trends and broad cultural movements due to media
exposure
– Brands can tap into global sensibilities of the youth
market

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Marketing Based on Ethnicity
Population Purchasing
Ethnic Group (United States) Power ($) Best Marketing Practices
African Americans 46.3 million 1.2 trillion Use ads featuring African Americans,
particularly using TV, radio, and social
media
Use of African American influencers to
speak directly to consumers

Hispanics and 56.6 million 1 trillion Use bilingual advertising


Latino-Americans Use pop culture influencers to represent
Hispanic and Latino pride Identify regional
differences

Asian Americans 21 million 962 billion Focus on distinct sub segments (e.g.,
Chinese Americans, Indian Americans)
Leverage the influence of online Asian
celebrities

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Global Branding
1. Why should a brand focus on global markets? What are
the advantages and disadvantages of expanding
internationally?
2. What is the definition of a global brand? What are some
factors which contribute to global brand equity?
3. What are some pros and cons of standardizing versus
customizing brand offerings? How should a brand
effectively customize various aspects of marketing mix?

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Why Should a Brand Focus on Global
Markets?
• Forces that have encouraged many firms to market their
brands internationally:
– Perception of slow growth and increased competition
in domestic markets
– Belief in enhanced overseas growth and profit
opportunities
– Desire to reduce costs from economies of scale
– Need to diversify risk
– Recognition of global mobility of customers

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Advantages of Global Marketing
Economies of scale in production and distribution
Lower marketing costs
Power and scope
Consistency in brand image
Ability to leverage good ideas quickly and efficiently
Uniformity of marketing practices

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Advantages of Global Marketing
Programs
• Economies of scale in production and distribution
• Lower marketing costs
• Power and scope
• Consistency in brand image
• Ability to leverage good ideas quickly and efficiently
• Uniformity of marketing practices

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Disadvantages of Global Marketing
Programs
• Differences in Consumer Needs, Wants, and Usage Patterns for
Products
• Differences in Consumer Response to Branding Elements
• Differences in Consumer Responses to Marketing Mix Elements
• Differences in Brand and Product Development and the
Competitive Environment
• Differences in the Legal Environment
• Differences in Marketing Institutions
• Differences in Administrative Procedures

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Strategies for Creating & Managing
Global Brands
• Most experts agree that to be regarded as a successful
global brand
– A company should derive at least half of the revenue
outside their domestic market
– Have much of their growth derived from these global
markets

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Creating Global Brand Equity
• Global brand equity can be built by achieving the following
for each global market:
1. Establishing breadth and depth of brand awareness
2. Creating points-of-parity and points-of-difference
3. Eliciting positive, accessible brand responses
4. Forging intense, active brand relationships

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Global Brand Positioning
• Because the brand is at an earlier stage of development
when going abroad:
– Awareness and key points-of-parity need to be
established first

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Customizing Marketing Mix Elements in
Local Markets for Global Brands
• Product Strategy
• Communication Strategy
• Distribution Strategy
• Pricing Strategy

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Marketing to Consumers in Developing
and Developed Markets
• Important basic distinction between countries that global
brands enter is whether they are developing or have
developed markets
– Some of the most important developing markets are
BRICS
▪ Brazil, Russia, India, China, and South Africa

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Ten Commandments to Building Global
Customer-Based Brand Equity
1. Understand similarities and differences in the global branding landscape.

2. Do not take shortcuts in brand building.

3. Establish marketing infrastructure.

4. Embrace integrated marketing communications.

5. Cultivate brand partnerships.

6. Balance standardization and customization.

7. Balance global and local control.

8. Establish operable guidelines.

9. Implement a global brand equity measurement system.

10. Leverage brand elements.

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Figure 15-4: Self-Evaluation Ratings for the
10 Commandments of Global Branding (1 of 4)
1. Understand similarities and differences in the global branding landscape.
– Have you tried to find as many commonalities as possible across markets?
– Have you identified what is unique about different markets?
– Have you examined all aspects of the marketing environment (e.g., stages of
brand development, consumer behavior, marketing infrastructure, competitive
activity, legal restrictions)?
– Have you reconciled these similarities and differences in the most cost-effective
and brand-building manner possible?

2. Do not take shortcuts in brand building.


– Have you ensured that the brand is being built from the bottom up strategically
by creating brand awareness first before crafting the brand image?
– Have you ensured that the brand is being built from the bottom up tactically by
determining the appropriate marketing programs and activity for the brand in
each market given the particular strategic goals?

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Figure 15-4: Self-Evaluation Ratings for the
10 Commandments of Global Branding (2 of 4)
3. Establish marketing infrastructure.
– Have you created the appropriate marketing infrastructure—in terms of
manufacturing, distribution, and logistics—from scratch, if necessary?
– Have you adapted to capitalize on the existing marketing infrastructure in other
countries?

4. Embrace integrated marketing communications.


– Have you considered nontraditional forms of communication that go beyond
conventional advertising?
– Have you ensured that all communications are integrated in each market and
are consistent with the brand’s desired positioning and heritage?

5. Cultivate brand partnerships.


– Have you formed partnerships with global and local partners to improve possible
deficiencies in your marketing programs?
– Have you ensured that all partnerships avoid compromising the brand promise
and do not harm brand equity in any way?

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Figure 15-4: Self-Evaluation Ratings for the
10 Commandments of Global Branding (3 of 4)
6. Balance standardization and customization.
– Have you been careful to retain elements of marketing programs that are
relevant and add value to the brand across all markets?
– Have you sought to find local adaptations and additions that complement and
supplement these global elements to achieve greater local appeal?

7. Balance global and local control.


– Have you established clear managerial guidelines as to principles and actions
that all global managers must adhere to?
– Have you carefully delineated the areas in which local managers are given
discretion and autonomy in their decision making?

8. Establish operable guidelines.


– Have you explicated brand management guidelines in a clear and concise
fashion in a document to be used by all global marketers?
– Have you established means of seamless communication between
headquarters and local and regional marketing organizations?

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Figure 15-4: Self-Evaluation Ratings for the
10 Commandments of Global Branding (4 of 4)
9. Implement a global brand equity measurement system.
– Do you conduct brand audits when appropriate in overseas markets?
– Have you devised a brand tracking system to provide timely, accurate, and
actionable information on brands in relevant markets?
– Have you established a global brand equity management system with brand
equity charters, brand equity reports, and brand equity overseers?

10. Leverage brand elements.


– Have you checked the relevance of brand elements in global markets?
– Have you established visual brand identities that transfer across market
boundaries?

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