Branding In Tough Economic Times. Virginia Vann Vice President of Institutional Marketing Woodruff Arts Center

Transcription

1 Branding In Tough Economic Times Virginia Vann Vice President of Institutional Marketing Woodruff Arts Center

2 Branding Basics 2

3 Definition of A Brand A name, term, sign, symbol or design or combination of them which is intended to identify the goods or services of one seller and to differentiate them from those of competitors Source: Dictionary of Marketing Terms, American Marketing Association,

4 Another Way of Saying It A brand is a distinctive identity that differentiates a relevant, enduring, and credible promise of value associated with a product, service, or organization and indicates the source of that promise. Source: S. Ward, L. Light, and J. Goldstine, What High-Tech Managers Need to Know About Brands, Harvard Business review, July-August,

5 Brand Positioning The place a brand occupies in the minds of target market consumers relative to competitive alternatives. Defines the specific niche the brand occupies in the mind of the customer. Focused on one brand attribute or known for 5

6 Brand Positioning Refreshment Family fun/magic Disposable Performance/fun to drive 6

7 Brand Equity Brand Equity is a set of brand assets and liabilities linked to a brand, its name and symbol, that add to or subtract from the value provided by a product or service without the brand identified. Brand equity and brand value come from keeping the promise 7

8 The Importance of Brand Brands are becoming increasingly important to consumers. 8

9 The Importance of Brand Six Reasons Why Reason #1: When There Are Too Many Choices and Too Little Time, Brands Are the Shortcut Time is becoming our most precious commodity Fully employed households (nearly 70%) Longer working hours longest since WWII , cell phones, PDA s, etc. driving anywhere, anytime connectivity Internet provides almost infinite set of alternatives 9

10 The Importance of Brand Six Reasons Why Reason #2: So Much Product Noise that Consumers Are Listening Less Communication overload has led to tune-out Average consumer exposed to more than 500 product messages per day ( it s just advertising ) New communications channels mean even more messages and less listening 10

11 The Importance of Brand Six Reasons Why Reason #3: Product Parity Very few bad or poor quality products Little physical differentiation Instant imitation (nothing new or different for long) A level playing field differentiated only by brand 11

12 The Importance of Brand Six Reasons Why Reason #4: Brand-Cluster Buying Has Become Standard Purchasing Practice The days of generics are over Brand set loyalty rules today s purchasing behavior Any of three brands within the acceptable brand set will do Little willingness or need to purchase outside the acceptable brand set 12

13 The Importance of Brand Six Reasons Why Reason #5: No-Service /Self-Service Selling Environments When there are no produce advisors, brands are the only guide to quality

14 The Importance of Brand Six Reasons Why Reason #6: Remote Buying Will Increase Electronic ordering/purchasing will become even more prevalent

15 Brand Definition Evolution The way we think about brands is changing

16 Branding: The Old World We used to think a brand was a: Name Symbol Logo Organization Actual Product or Service Set of characteristics and expectations A Promise A Campaign Positioning Marketing s Responsibility 16

17 Branding: The New World A brand is an intangible asset that resides in people s mi nds, whi ch i s def i ned by t he expect at i ons peopl e have about t he benef i t s t hey wi l l r ecei ve. These expect at i ons of benef i t s ar e devel oped over t i me by communi cat i ons and - more i mport ant l y - by act i ons. Branding is Experiential 17

18 Harley Davidson Understands The Brand Experience The secret to our enduring brand lies in delivering an experience rather than just a collection of products and services." Harley-Davidson annual report

19 Delivering meaningful experiences is the new branding requirement Strong brands deliver a consistent, compelling customer experience at all points of availability We try to create, in our stores, an oasis, a little neighborhood spot where you can take a break, listen to some jazz, and ponder universal or personal or even whimsical questions over a cup of coffee --Howard Schultz, CEO 19

20 In Summary Successful Brands Aren t Created in the Marketing Department alone They re Created in Every Area of the Operation Defined every day by decisions and actions that occur in every part of the operation Every decision is made with impact on brand in mind Every person in the company has a personal stake in the brand

21 Building & Maintaining a Brand (with and without $$$) 1. Be Relevant Cingular Brand Promise: We promise to better enable you to speak and be heard, to listen and learn, to recognize and be recognized, by creating opportunities and removing barriers to self expression. Alliance Theatre Brand Promise: A season at the Alliance will engage your heart, mind and funny bone through theatre that is original, worthy and memorable. 21

22 Building & Maintaining a Brand (with and without $$$) 2. Integrate Into Everything You Do Cingular Brand Personality: Creative. Optimistic. Fun. Simple. Confident. Trustworthy. Alliance Brand Personality: Innovative. Powerful. Memorable. Sophisticated. Engaging. Accessible. 22

23 Building & Maintaining a Brand (with and without $$$) 3. Be Consistent 23

24 Building & Maintaining a Brand (with and without $$$) 4. Never Underestimate The Power of Your Employees 24

25 Building & Maintaining a Brand (with and without $$$) 1. Be Relevant 2. Integrate Into Everything You Do 3. Be Consistent 4. Never Underestimate The Power of Your Employees 25

26 Tough Economic Times A Brand Risk & A Brand Opportunity

27 Pricing Brand Risk: Discounting and Product Devaluation Brand Opportunity: Increasing Pricing Band Targeted Price Promotions Adding Value Highlighting Price Advantage 27

28 Promotion Brand Risk: Stop Spending Brand Opportunity: Capitalize On Consumer Wants Value Trust Nostalgia Affordable Escapism 28

29 Branding Branding $$$ = $ Good Times Tough Times

30 "A brand takes a long time to build, and a long time to destroy, and both happen as a result of lots and lots of small actions. If you want to be strong, each point along the way has to be as close to perfect as possible. Michael Eisner, CEO Disney,