What is the aim of brand essence and what are the three terms in a brand essence statement?
The aim of brand essence is not only to guide staff behaviour, but also to help them screen out actions that might create inappropriate customer perceptions.
Brand essence statement terms:
- Brand function
The nature of the product/service and/or the type of experiences or benefits the brand provides. For example, ‘performance’ (Nike).
- Descriptive modifier
To further clarify the brand function. For example, ‘athletic’ (Nike).
- Emotional modifier
To express how the brand delivers its benefits. For example, ‘authentic’ (Nike).
What are the elements of a good positioning statement?
- Target customer
Concise summary of the attitudinal and demographic description of the target group. - Market definition
Must clearly indicate what category the brand is competing in and in what context their brand has value to customers. - Brand promise
Must state the most compelling benefit (emotional/rational) that the brand can own for consumers relative to competition. - Reason to believe
Must provide proof of how the brand delivers what it promises. It must be unique, believable, important and usable.
The most common mistakes in crafting a positioning statement:
- Not defining the target customer precisely
- Listing multiple differentiators/benefits
- Developing benefits that aren’t unique or sustainable
- Not including the reason customers should believe the benefit promised
What’s the difference between a tagline/slogan and a positioning statement?
Positioning statements are for internal use only. The statement guides the marketing and operating decisions of the business. A tagline/slogan, on the other hand, is an external statement used in marketing efforts, based on its positioning statement, focused specifically on the value propositions to the customer.
What are the two considerations in choosing PODs? And what is the criteria to achieve them?
Desirability and deliverability.
Desirability:
- Relevance
Target customers must find the POD personally relevant and important
- Distinctiveness
Consumers must find the POD distinctive and superior
- Believability
A brand must offer a credible and compelling reason for choosing it over other options
Deliverability:
- Feasibility
The product and marketing must be designed to support the desired association
- Communicability
Factual, verifiable proof must be given, so that customers must understand the brand’s benefits and its desired associations
- Sustainability
The favourability of the brand association must have the ability to be reinforced and strengthened over time.
What are the two types of POPs? Explain them
Category and competitive POPs.
-Category POPs
Minimum features/benefits that a brand needs to offer to be a legitimate and credible competitor
- Competitive POPs
Associations designed to negate a competitor’s POD by showing that the brand can equal that benefit
What are the brand positioning strategies?
- Attribute positioning
Emphasises one or more outstanding attributes. For example, positioning cigarettes as light and tasty - Benefit positioning
Stresses unique benefits. For example, shaving company promising an even closer shave - Use/application positioning
Is based on how the product is used. For example, wine company positioned as wine to be enjoyed at all fun occasions. - User positioning
Focuses on its users. For example, a bungee jumping company may appeal to thrill-seekers and adrenaline junkies - Competitor positioning
Sets the offering up against competitors. For example, BMW may place their cars next to Mercedes - Product/service category positioning
May emphasise a category not traditionally associated with it to expand its business operations. For example, a museum may position itself as a tourist attraction - Quality/price positioning
May claim exceptional quality or the lowest price
What are the brand positioning pitfalls?
- Trying to build awareness before establishing a clear brand position
Marketers must know who they are before they can convince anyone of it. - Promoting attributes there isn’t demand for
For example, companies that sold analgesics claimed their brands were longer lasting than others, until they noticed customers wanted fast relief rather than sustained relief - Investing too heavily into PODs that are easy to copy
Positioning needs to keep competitors out, not draw them in. Barriers to entry need to be sustainable - Becoming so obsessed with competition that they abandon their established position
For example, a newspaper covering the same stories as competition, but alienating their audience - Trying to reposition a brand
This is usually difficult and sometimes impossible
What are the methods of updating brand positioning over time?
Laddering and reacting.
Laddering:
Laddering intends to deepen the meanings associated with the brand positioning. Laddering progresses from attributes, to benefits, which leads to values. A customer chooses a product that delivers an attribute (A), that provides benefits or consequences (B/C), that satisfies value (V).
Reacting:
When a competitor challenges an existing POD or attempts to overcome them, three options:
- Do nothing
If the competitive actions seem unfruitful, the best reaction is to stay on course.
- Go on the defensive
If the competitive action looks likely to disrupt the market, a defensive stance may be needed. One way is to add reassurances to product or advertising, which strengthens POPs and PODs.
- Go on the offensive
If the competitive actions seem potentially damaging, an offensive strategy may be needed. One option is a product launch or advertising campaign to fundamentally change the meaning of the brand.
What are the brand-defining roles?
- Master brand
The primary indicator of the offering and point of reference. A master brand uses just one brand to represent all offerings across all categories. For example, Toyota. - Endorser brand
Serves to provide credibility and substance to the offering - Sub-brand
When a new brand is used adjacent to an existing one. This strategy aims to leverage the recognition value and positive associations consumers have with the existing brand. Its role is to create a brand that is significantly different from the master brand. - Descriptor brand
Describe the offering, usually in functional terms. For example, aircraft engines, appliances - Product-brand
Defines a product offering consisting of a master brand and a sub-brand (Toyota Corolla), or a master brand with a descriptor (Orange Fanta) - Umbrella brand
Defines a grouping of product offerings (Microsoft Office Excel & Microsoft Office PowerPoint, etc.) under a common brand name (Microsoft Office) - Branded differentiators
Represents a brand or sub-brand that defines a feature (Ziploc Sandwich Bags with ColourLoc Zipper), ingredient (Ouma Sliced Rusks), service (Toyota iTouch), or programme (Kraft Kitchens) - Driver role
Reflects the degree to which the brand drives the purchase decision and defines user experience
Identify the brand roles in Riezebos, Kist and Kootstra’s brand portfolio roles and briefly discuss each
- Bastion Brand
Represents the hub of the different brand portfolio roles. Most profitable brand. Highest market share and turnover. Large financial and strategic advantages. High level of perceived performance, reasonably high psychosocial meaning. - Flanker Brand
Same price-profit ratio as bastions but cater for different needs. High strategic value is more important than financial advantages. High level of perceived performance, reasonably high psychosocial meaning. - Fighter brand
Protects the bastion from competitive discounted brands. Normally positioned between bastion and competitor. Based on low-cost strategy. High strategic value, average financial advantages. - Prestige brand
Protects bastion by catering for high-quality and luxury customers. Low strategic value, high financial advantage. Emphasises psychosocial meaning.
Identify the brand roles in Aaker’s brand portfolio roles and briefly discuss each
- Strategic brand
Main brand, should succeed and therefore is given all resources necessary. Three types:- Current power brand: Generates high sales and profits. Already large and projected to maintain/grow
- Future power brand: Projected to generate high sales and profit in future
- Linchpin brand: Indirectly influence high sales and market position in future. Serves as leverage point
- Branded energiser
Any branded product, promotion, sponsorship, symbol, or other that significantly enhances and energises the target brand - Silver bullet brand
Branded energisers can be sorted into high, medium and low priorities. Silver bullets are the most important brand energisers. Strategically important to positively support the image of another brand. - Flanker brand
Used when attacked by a competitor to save original brand’s image and brand equity. - Cash cow brand
Doesn’t require as much investment as other brands. Although sales is stagnant or declining, hardcore loyal customer base. Role of cash cow is to generate resources to be invested in other brands.
What is brand equity and customer equity?
Brand equity:
The set of intangible assets (or liabilities) inherent to a brand that add (or subtract) value to a firm and its customers.
Customer equity:
The sum of the customer lifetime values of the organisation
Identify the categories in Aaker’s model of brand equity and briefly explain each
- Brand awareness
Represents the strength of a brand’s presence in the consumer’s mind. It’s measured according to the different ways consumers remember a brand: Recognition, recall, top-of-mind, and domination. - Brand loyalty
Highly loyal customer base generates future sales and profit streams. High loyalty reduces marketing costs as it’s less costly to retain customers than acquire. Serves as an entry barrier. - Perceived quality
Can charge a price premium and in many instances, perceived quality is the reason-to-buy. - Brand associations
What connects the customer to the brand. They help create positive attitudes and feelings towards a brand, and hence, build brand equity. - Other proprietary assets
Assets such as channel relationships and patents which build competitive advantage.
What are the two areas where brand equity can be measured?
- Sources of brand equity
Understanding knowledge structures of consumers by measuring feelings, perceptions, images, beliefs and attitudes towards a brand. - Outcomes of brand equity
These include brand loyalty, price premiums, greater inelasticity, etc. Approaches to measuring include comparative methods such as conjoint analysis, and holistic methods.
Identify the stages in Keller’s brand equity pyramid and briefly discuss them
- Brand identity
Achieved by creating deep, broad-brand awareness in the target market. - Brand meaning
Achieved through brand performance, positive customer experience, meeting their needs, etc. - Brand response
Determined through brand judgments, customer evaluation of the brand, such as quality or credibility and brand feelings - Brand relationships
Determined by brand resonance. The nature, intensity and extent to which customers engage or bond with the brand
What are the six criteria for choosing brand elements?
- Memorability
Highly memorable elements help achieve brand awareness since they make it easy to recall or recognise when buying/consuming - Meaningfulness
Brand elements may take on any meaning, varying in descriptive and persuasive content - Likeability
Brand elements can be chosen that are rich in visual and verbal imagery, inherently fun and interesting, and aesthetically pleasing - Transferability
In general, the less specific the name, the more it can be transferred across categories - Adaptability
Refers to the adaptability of the brand name over time, due to changes in consumer values/opinions, or simply to remain contemporary - Protectability
Refers to how protectable the brand element is in both a legal and competitive sense
