...How to Brand a Next-Generation Product When Apple launched its latest iPad, experts and nonexperts alike expected it to be dubbed "iPad 3," a natural follow-on to the second-generation iPad 2. Instead, the company called the new iPad just that: "the new iPad." Observers debated whether this was lazy branding or a very deliberate effort to market the iPad as a sibling to the Mac. Macs keep their names with each successive upgrade, analysts noted, while iPhones sport sequential numbers and letters to indicate improvements. Like Apple, most consumer-centric companies deal with the dilemma of how to brand the next- generation of an existing product. Product upgrades make up the majority of corporate research and development activity. That's why Harvard Business School marketing professors John T. Gourville and Elie Ofek were surprised to find a dearth of academic research on the subject. "There's a lot of research about new-product branding, but as best as we could tell, nobody had looked closely at the issue of how to brand a successive generation," Gourville says. To that end, Gourville and Ofek teamed up with London Business School professor Marco Bertini (HBS DBA '06) to suss out the best practices for branding next-generation products. "For managers, this is not a trivial decision," Ofek says. "Consumers don't necessarily read specs to learn about new features, but they'll always notice a new name. We thought we could come in and bring some guidelines and normative implications...
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...BAB 11 KEYNESIAN: KETEGARAN UPAH DAN HARGA (WAGE AND PRICE RIGIDITY) 1. PENDAPAT KEYNESIAN ▪ Ahli ekonomi kumpulan Keynesian merasa pesimis atau tidak yakin kepada kebolehan pasaran bebas untuk menyelaras dengan cepat dan cekap apabila berhadapan dengan kejutan. ▪ Keynesian mempercayai upah dan harga adalah rigid dan liat (wages and prices are rigid or sticky) dan tidak mudah diselaras untuk membersih pasaran (mencapai keseimbangan). ▪ Ini memberi implikasi bahawa ekonomi mungkin tidak berada dalam keadaan keseimbangan dalam jangka masa yang lama. ▪ Sebagai contoh, kemelesetan yang hebat merupakan satu keadaan ketakseimbangan dimana terdapat pengangguran yang tinggi ( penawaran buruh > permintaan buruh. ▪ Kerajaan perlu bertindak atau campur tangan untuk menghapuskan atau meminimum keadaan ekonomi dimana output rendah dan kadar pengangguran tinggi. 2. KETEGARAN UPAH BENAR (REAL-WAGE RIGIDITY) ▪ A nalisis dan dasar Keynesian bergantung kepada andaian bahawa upah dan harga tidak meyelaras dengan cepat untuk membersih pasaran. ▪ Keynesian membincangkan isu ketegaran upah kerana mereka tidak bersetuju dengan penerangan ahli ekonomi Klasik mengenai pengangguran. ▪ Mengikut prendapat Klasik, pengangguran ( semasa kemelesetan disebabkan oleh pengangguran geseran dan struktur Mengikut pendapat Keynesian , semasa kemelesetan terdapat keadaan di mana pekerja secara akif mencari pekerjaan dan majikan pula mencari pekerja. Tetapi, kajian...
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...What valuable functions can brands perform for a firm? Brands also perform valuable functions for firms. First, they simplify product handling or tracing. Brands help to organize inventory and accounting records. A brand also offers the firm legal protection for unique features or aspects of the product. 120. Describe the three ingredients of customer-based brand equity. There are three key ingredients of customer-based brand equity. 1. Brand equity arises from differences in consumer response. If no differences occur, the brand-name product is essentially a commodity, and competition will probably be based on price. 2. Differences in response are a result of consumers’ brand knowledge, all the thoughts, feelings, images, experiences, and beliefs associated with the brand. Brands must create strong, favorable, and unique brand associations with customers, as have Toyota (reliability), Hallmark (caring), and Amazon.com (convenience). 3. Brand equity is reflected in perceptions, preferences, and behavior related to all aspects of the marketing of a brand. Stronger brands lead to greater revenue. 121. Advertising agency Young and Rubicam (Y&R) developed a model of brand equity called Brand Asset Valuator (BAV). What is the intent of the BAV model? List and briefly characterize the four key components (pillars) of brand equity. Based on research with almost 800,000 consumers in 51 countries, BAV compares the brand equity of thousands of brands across hundreds of different...
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...“Your brand is what other people say about you when you’re not in the room” Jeff Bezos – Founder, Amazom.com Introduction What is Brand Development and why is it important? Simply explained, brand development is the process of improving a brand or improving customers’ knowledge and opinions of that brand. Branding is a vital and essential element for marketing to create value and connectivity with audiences. Customers do not simply purchase services and products purely on functionality, lowest price or that it is the most reasonable choice above all others, they do so because they love and trust certain brands which over time have become an irreplaceable necessity to their lives. A high equity brand gives its owner many advantages. In addition to the obvious benefit of driving market share, a strong brand can command a price premium, augment customer relationships as well as boost stock prices. Customer generated content is the easiest marketing method to build trust for your brand. When your customers are creating content for your brand, such as positive online reviews, case studies, testimonials, contests, social shares and other forms of participation, you not only build trust with new customers but you empower your best customers with the ability to be a crucial part of your branding. Keller's Brand Equity Model, also known as the Customer-Based Brand Equity (CBBE) Model illustrates four critical steps that one should to follow...
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...DOUGLAS B. HOLT Brands and Branding Branding has become one of the most important aspects of business strategy. Yet it is also one of the most misunderstood. Branding is sometimes considered to be merely an advertising function. And many managers and business writers hold the view that branding is about the management of product image, a supplementary task that can be isolated from the main business of product management. This note provides an alternative perspective, arguing that: * Branding is a strategic point of view, not a select set of activities. * Branding is central to creating customer value, not just images. * Branding is a key tool for creating and maintaining competitive advantage. * Brands are cultures that circulate in society as conventional stories. * Effective brand strategies must address the four distinct components of brand value. * Brand strategies must be “engineered” into the marketing mix. This note develops a set of concepts and frameworks to guide the design of brand strategies. From Value Proposition to the Brand Marketing strategies begin with the value proposition: the various types and amounts of value that the firm wants customers to receive from the market offering. The value proposition is value as perceived by the firm, value that the firm seeks to “build” into the product.1 In marketing, the value proposition is sometimes referred to as the positioning statement.2 Common wisdom in business often assumes...
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...Abstract Brands play a critical role in a firm's international marketing strategy. A coherent international brand architecture is a key component of the firm's overall international marketing strategy as it provides a framework to leverage strong brands into other markets, assimilate acquired brands, and rationalize the firm's international branding strategy. This paper looks at the various components of international brand architecture and the different types of architecture found among a sample of large international consumer goods companies. Based on these initial insights, some key issues that need further research are identified. Introduction Branding is a key element of a firm’s marketing strategy. Strong brands help establish the firm's identity in the market place, and develop a solid customer franchise (Aaker, 1996; Kapferer, 1997; Keller, 1998). Owning the number one or two brand in the product category provides manufacturers withas well as providing a weapon to counter growing retailer power (Barwise and Robertson, 1992). A strong brand name Theycan also provide the basis for brand extensions, which further strengthen the firm's position in the marketplace as well as potentially enhancing the brand’s value (Aaker and Keller, 1990). As firms move into international markets, branding plays an important role in its marketing strategy. In particular, a cautious branding strategy provides a means to enhance the firm’s visibility and integrate strategy across...
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...Product and Brand Management (MGMT-MKTG-638) - Revision Exercises - 1. “Customer analysis & competitor analysis are necessary for developing product strategy”. Comment. 2. Explain the steps involved in developing a new product with suitable examples. . Idea Generation The development of a product will start with the concept. The rest of the process will ensure that ideas are tested for their viability, so in the beginning all ideas are good ideas (To a certain extent!) Ideas can, and will come, from many different directions. The best place to start is with a SWOT analysis, (Strengths, Weaknesses, Opportunities and Threats), which incorporates current market trends. This can be used to analyse your company’s position and find a direction that is in line with your business strategy. In addition to this business-centred activity, are methods that focus on the customer’s needs and wants. This could be: •Under-taking market research •Listening to suggestions from your target audience – including feedback on your current products’ strengths and weaknesses. •Encouraging suggestions from employees and partners •Looking at your competitor’s successes and failures #2. Idea Screening This step is crucial to ensure that unsuitable ideas, for whatever reason, are rejected as soon as possible. Ideas need to be considered objectively, ideally by a group or committee. Specific screening criteria need to be set for this stage, looking at ROI, affordability...
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... Abstract A brand is the visual, emotional, rational, and cultural image that one can associate with a company product goods and/or services. A brand is a strategic element of a company’s overall marketing organization as it provides a structure to influence strong brands into other markets, integrate newer brands, and rationalize the company’s value based on the product and/or service the business offers. Introduction Living in a modernized era, with accelerating numbers of businesses built to satisfy consumer needs and wants, branding has become more of an important value in building a company’s image for its products or service. In conjunction with the company’s goals, employees, vendors, reporters, communities, target customers and consumer mix, which all are contributing factors in making the proper representation of what the business would like for people to see them as; furthermore the company’s branding will ultimately represent the understanding of the needs and wants of the customers and prospects the company seeks to target by incorporating the company’s brand at every point of public contact and with every marketing opportunity. Therefore, branding helps to establish the firm's identity in the market place, and develop a solid...
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...Chapter 8 – Developing a brand equity measurement and management system * Indirect approach: assess potential sources of CBBE by identifying and tracking consumers’ brand knowledge. * Direct approach: assess the actual impact of brand knowledge on consumer response to different aspects of the marketing program. * Brand equity measurement system: set of research procedures designed to provide marketers with timely, accurate, and actionable info about brands so they can make the best possible tactical decisions in the short run and strategic decisions in the long run. * New accountability- return of marketing investment. * Measuring the long-term value of marketing in terms of both its full short term and long-term impact on consumers is crucial for accurately assessing ROI. Brand Audits * Brand audit: a comprehensive examination of a brand to discover its sources of brand equity. Assesses the health of the brand, and suggests ways to improve and leverage its equity. * 2 steps in a brand audit: brand inventory and brand exploratory. * Marketing audit: comprehensive systematic, independent and periodic examination of a company’s marketing environment, objectives, strategies, and activities with a view of determining problem areas and opportunities and recommending a plan of action to improve the company’s marketing performance. * Brand inventory: provides a current profile of how all the products and services sold by a company are marketed...
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...In designing and evaluating a product or an ad campaign, marketers employ both art and science to develop the message strategy or positioning of an ad, what the ad attempts to convey about the brand, its creative strategy and how the ad expresses the brand claims (Kotler, 2012). The designers at ZIBA based in Portland, Oregon are experts at capturing what consumer’s want. This case study will discuss what occurs before Ziba develops or designs an advertising program. It will also discuss how Ziba contributes to brand recognition for product promotion in the marketplace and it’s effectiveness. Finally, this case analysis will explain how Ziba contributes to brand loyalty of a product and summarize concepts mentioned throughout this essay. Ziba is a design and innovation consultancy, a team of designers, strategists, thinkers and makers with a passion for solving problems while understanding people (Ziba, 2012). In order to understand what people want a team of designers at Ziba put a tremendous amount of work into consumer research before any product development begins. This extensive research is formulated into consumer incite by discovering new information and turning it into something unique that will attract consumers. An advantage that Ziba has over several design consultant agencies is their diverse staff of thinkers and strategist. This diversity not only contributes to product design, it also gives a 360-degree view of the target consumer. In developing an advertising...
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...Customer Based Brand Equity Model (CBBE) The CBBE model approaches brand equity from the perspective of the customer – whether customer is an individual or an organization. The CBBE model provides a unique point of view as to what brand equity is and how it should best be built, measured and managed. The power of a brand lies in what customers have learned, felt, seen and heard about the brand as a result of their experiences over time. The big challenge for marketers is to ensure that customers have the right type of experiences with their products and services. In order to do this, marketers must develop marketing programs in way that best fit into customers' mind and linked the brand to the desire customers' feelings, thoughts, actions and beliefs. So that customer-based brand equity is defined as, the differential effect that brand knowledge has on consumer response to the marketing of that brand. Customer-Based Brand Equity Pyramid Brand Salience: It's means broad awareness of the brand. The first step in building a brand equity is the brand awareness that contains two parts; brand recognitioin (how easily customer identify a brand after exposing some cue or a physical product) and brand recall (how easily customer recall the brand without showing a cue while making purchase decision or thinking the product category). We must consider both the breadth and depth of the brand awareness; the depth is that how likely it is for a brand element...
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...Designing and Implementing Brand Architecture Strategies DEVELOPING A BRAND ARCHITECTURE STRATEGY Definition: Brand Strategy/Brand Architecture tells marketers which brand name, logos, symbols and so forth to apply to new and existing products. Brand Architecture: It describes both brand breath or boundaries and its depth or complexity The Role of Brand Architecture: * To clarify brand awareness: Improve consumer understanding and communicate similarity and differences between individual products and services. * To improve brand image: Maximize transfer of equity between the brand and individual products and services to improve trial and repeat purchase. 3 Steps of Developing a brand architecture strategy: Step 1: Defining Brand Potential Define the brand potential by considering three important characteristics (1) the brand vision, (2) brand boundaries, (3) brand positioning. Articulating Brand vision: * Brand vision = Management view of brands long-term potential * Influenced by: * how well the firm is able to recognize the current and passive future brand equity. * Many firms have latent brand equity * that is never realized because the firms are unable or unwilling to consider all that the brand could and should become. * A good brand vision has a foot in present and future * Brand vision needs to be aspirational * so has room to grow and improve * Fundamentally brand visions relates the higher order...
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... Managing Brand Extensions Brand Mix ▪ Definitions ▪ Breadth and Depth of Brand Mix Brand Extensions ▪ How to make brand extensions? ▪ Advantages and disadvantages ▪ Examples 1.2 A company may have more than one brands in different product categories It is critical that the firm can help consumers understand its products and services and organize them in their minds. The brand-product matrix help to characterize and formulate branding strategies by defining various relationships among brands and products. 1.3 The brand-product matrix A graphical representation of all the brands and products sold by the firm Brands rows Products columns 1 A Brands B Products 2 3 4 C 1.4 P&G Matrix Shampoo Cosmetics Toothpaste Toothbrush Floss Brands 1.5 Definitions Brand line ▪ All products sold under a particular brand 1.6 P&G Matrix Brand Line 1.7 Definitions Brand line Brand portfolio ▪ The set of all brands in a particular category 1.8 P&G Matrix Brand Portfolio 1.9 Definitions Brand line Brand portfolio Brand mix ▪ The set of all brands that a particular seller/company makes available to buyers 1.10 P&G Matrix Brand Mix 1.11 Breadth of brand mix How many different products should we carry? (Whether we should go into a product category?) ▪ Aggregate market factors ▪ ▪ ▪ ▪ ▪ Market size Market growth...
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...Using new product development to grow a brand Introduction 1 2 Kellogg’s and the marketing mix With annual sales of more than £4.5 billion, Kellogg’s is the world’s leading producer of cereal products and convenience foods, such as cookies, crackers and frozen waffles. Its brands include Corn Flakes, Nutri-Grain and Rice Krispies. Managers can decide when to make key changes to a core product by analysing its position within the product life-cycle. Life-cycle analysis accepts that products have a finite life, and analysts chart a product’s performance through several phases, from its launch through various phases of growth until it reaches maturity and eventually decline. A product’s life cycle may last only a few months (e.g. with a fad, or In a rapidly changing and competitive business environment, it is not easy to predict: ◗ ◗ ◗ future trends in consumer tastes and preferences competitors’ actions market conditions. Kellogg’s is a global organisation. Its products are manufactured in 19 countries worldwide and sold in more than 180 countries. In an uncertain world where the organisation’s strategy is to focus on products and brands that are either the market leader or in a strong second position the company believes that this focus upon core and successful products enables it to provide consistent and reliable returns and rewards for its stakeholders. craze) or, as with Special K, for many years. Although it was a successful product, Kellogg’s recognised...
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...Chapter 8 PRODUCTS, SERVICES, AND BRANDS: BUILDING CUSTOMER VALUE MARKETING STARTER: CHAPTER 8 Nike: Building Deep-Down Brand-Customer Relationships Synopsis Marketing is all about creating brands that connect with customers, and few marketers have done that as well as Nike. During the past several decades, Nike has built the Nike swoosh into one of the world’s best-known brand symbols. During the 1980s, Nike revolutionized sports marketing. It powered its way through the early 1990s, aggressively adding products in a dozen new sports, including baseball, golf, skateboarding, wall climbing, bicycling, and hiking. In the late 1990s, however, Nike stumbled and its sales slipped. Nike needed to rekindle the brand’s meaning to consumers. To turn things around, Nike returned to its roots: new-product innovation and a focus on customer relationships. This time, Nike shifted toward cutting-edge digital and social marketing tools to interact with customers to build brand experiences and community. Nike is now building communities of customers who talk not just with the company about the brand, but with each other as well. Thanks to efforts like Nike+, along with a host of other new digital and social media approaches, Nike has built a new kinship and sense of community with and between the brand and its customers. The company’s outstanding success results from much more than just making and selling good sports gear. It’s based on a deep-down connection between the iconic Nike brand and...
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