Content Introduction Brand positioning 3 Plan and implement marketing brands 4 Criteria Tactics Strategies Value marketing brands 5 7 Improve and maintain the value of the brands 7 Conclusion Literature list 8 Brand management. Or literally: managing a brand. But what does it contain, brand management? How does it works and what can you accomplish with it? And most of all, why doesn’t it stops at the accomplishments? These are things that are going to be sorted out below.
Brand positioning Brand management starts with brand positioning. The positioning of a brand is classical finding the right place in the heads of people or a market segment, where through those are going to have the right image of a brand. First you have to know what market you are focusing on, who are your biggest competitors and why your brand is different than the other similar brands. In order to know this you have seven bases to know how the market you want to implement looks like.
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These seven are: Behavioral; brand loyalty, advantages, amounts of using, Demographical; income, age, gender and family, Psycho graphical; opinions, attitudes, values and epistyle, Geographical; regional or international, Nature of the product; where is it going to be used, what kind of product and what type of purchase, Purchase situation; location, who, type, and finally Demographical; compartment, amount of employees and production workers, departments amount and sales figures. So why are these seven important? Because, on the basis of those seven you can develop marketing programmer.
You can divide the consumers on basis of commitment, preparedness to try, anything you want. But with those seven you are not there yet. What about your competition? When you want to compete within a certain segment you first have to level yourself with the other brands in the segment of your choice. To do this you need to have some similar levels, so called points of parity. When you have a point of parity that is recognized by your costumers you are very far with your positioning. Customers are often prepared to do concessions and don’t need the brand to level at exact the same points.
But when you want to outstays your competitors, you have to show to your customers that you are clearly better than the competition, you have to achieve so called points of difference. The key to positioning s mostly about realizing the same level on key points as your competitors. After that are coming the points of difference. And elements, and implement them to build up your brand. To do this, there are several elements needed. The ones below explained are the elements that will help to reach this goal. First of all, to choose brand elements there has to be thought about the several criteria to get to that point.
The first three criteria are so called attack criteria. They are developed by professionals from the marketing industry to build up the brand. The last three are developed to maintain the brand value. These criteria are named low. Attacking criteria Easy to remember: Speaks for itself, easy to remember. Meaningful: What does it mean, is it convincing or meaningful. Attractive: Is it nice and fun; visual images; interesting Defending criteria Transferability: Transferable from and to countries, cultures and product categories. Adaptability: Future proof, flexible.
Profitability: Competition proof, legal. There are different brand elements to use for a brand. One of the most important ones is the name of a brand, which can say a lot about a brand. In which market segment it is operating, is it a young or an older company, what do they sell. But a strong name is difficult to fight. Companies are often struggling with law suits because the name looks to similar to the name of an other company, or it is already in use. Brands can’t always have it all. So, that’s way a name is not the only tactical brands can use.
Below are described some more tactics besides a name. Names: Names are also called the central point of a brand. It has to be easy to pronounce (In different languages, if a company wants to go abroad), easy to spell, feel homely, but unique. Logos/Symbols: Logos / symbols are almost that important as names. There are even mom brands that are more recognized by their logo then by their name, for example Apple phones and laptops and Mike. Logos can distinguish a brand from the other brands. Also is a logo often more easy to adjust in time than a name of a brand.
Brand personages: Brand personages are mostly developed when a brand is going to use commercials. A brand personage has often human characteristics, that will make the brand more approachable and likeable. An example is the living M&M’s of M and the little bear of Robin. Slogans: Slogans are informative or describing short sentences of a brand. These elf people understand what the purpose of brand is. They can add brand value. They are also very adjustable. Jingles: Jingles are little songs that describe a hidden message about the brand.
When the television was not really in use yet, Jingles were a solution to let people think about a brand, and let it stuck into people’s minds. Nowadays television and E- marketing are often more used, but Jingles are still very much around. Packaging: Packaging is a global word for every box, bag, bottle that is containing the product of a brand. Packages are meant for the consumer, so the consumer can ensure and store the product easily. Also the transport of the product is more easily, and the product is more protected.
Of course is it also meant to make De brand recognizable. How a brand can handle the external aspects is described. But how a brand can approach the customer, and how a customer will experience a brand in the best way is going to be explained below. Product strategy: The product is the centre of the equity of a brand. Marketers have to design, develop, sell, deliver, maintain and produce the product in that way that is a positive influence on the brand. Customers talk to each other about what they think f the product and how they experienced the product, but also the service.
Product is all about developing those main points, but also about the care towards the customers. Relation marketing, which includes for instance customer service, is equally important as the primary experience of customers. Because, your customers determine if your brand can survive, or not. Inform brand is what other people say about you when you are not in the room. ” Pricing strategy: The price is the heart of maintaining the business. When a brand is able to offer its products for a high price, it will regulate more profit.
A customer has a certain expectation of what the price for a product will be. When the customer is enthusiastic about the product, the price range will automatically lay higher then when the customer is not satisfied. “A great brand raises the bar, it adds a greater sense of purpose to the experience, whether it’s the challenge to do your best in sports and fitness, or the affirmation that the cup of coffee you’re drinking really matters. ” But not only that is for influence on the price. Also the production costs, material costs en product design and delivery are influencing the price.
To prevent ales droppings, marketers have to revalue and reconsider the price of products regularly. Channel strategy: Last but not least, channel strategy. Channel strategy is about how and in which way products are sold and distributed. Channel strategy is about how the management of in between channels is going. The first kind of channels are the indirect channels. These can be real estate agents, retailers, channels. Direct channels means directly trying to sell the product to the customer. This can be by mail, phone, brand shops, social networks and house-on-house selling.
In this way the company is directly binding with the customer. Brand stores have the advantage that they can decide their selves how they want to stall their products, and they have big collection. On the other hand, the indirect channels are often reaching a bigger audience. This kind of selling is from most influence on the brand equity, because especially retailers are reaching a much wider audience. Customers also might have a price range feeling with certain retailers, which is of influence on the price of the products of a brand.
After the positioning and implementing brands have to stop, take a step back, look at their brand and value it. How well is it going? What is the value of the brand at this point? And how is that measured? A brand can never measure exactly how it goes with them. But it does give a good direction on how it is going. But why is it important to know what the ‘price card’ of the brand is? For instance when another company wants to take over the company, it is handy to set a price card for the other company.
Also for book keeping reasons (taxes) it is essential to know what the figures are. And with setting a budget. A brand wants to know what they can spend and should spend on their marketing. In order to get to the value, there are five steps that have to be taken. The first one is market segmentation. Split up the customer market of the brand in separate parts and value these parts separately. For instance distribution, customer behavior, price height, old and new customers. Value every segment and add that up. The next one is a financial analysis.
Make a profit and loss account, a balance sheet and look at the profits. After that you have demand analysis. Estimate De role a brand has in the demand of goods from the customer. This is so called Role of Branding Index. (RIB) In 2010, this was for instance for hotels 30 %, consumer electricity 70 % and home devices 55 The fourth is competitive benchmarking. Measure the strong and weak competitive points of the brand. Make according to those figures a risk profile that shows the score of the strength of the brand.
This will establish by evaluating the market, growth expectations, legal defense ability and stability of the brand. This is called a brand consistency percentage. Finally, measure the Net Present value (NP) of the brand. Calculate this through the predicted brand equity minus the brand consistency percentage. NP outcome is not only about the current period, but also about the next period and how the brand an keep gaining equity. Improve and maintain the value of the brands value of their brands? In the previous part is explained how this can be measured.
Now the explanation of how this can be maintained. This all starts at the brand- product matrix. This matrix gives a graphical image of which products and brands a company sells and what the relations are. Shortly, it will show the brand expand strategy of a company. To improve the brand, companies look at how they can expand. These can contain, new products, wider range of the same products or expanding the brand geographical. The whole trick of maintaining and improving is bout measuring the risks, measuring the opportunities, and especially, never stop looking for new opportunities.