BRANDING
Brands and products are relevant if meet core
human drives:
Acquiring material goods, immaterial status
feel connected, be part of a
Bonding
community
curiosity and experience new
Learning
things, be prepared for future
identify threats and avoid risks,
Defending
protect self and others
if provide solution (information & value)
if identify itself with a category
Value of brand: Compare benefits of a branded
item with of a non-branded item
Attractiveness of market
Market Growth, size, margin, competition
Brand quality, awareness, differentiation
Empty markets are hard to find. Most markets
not attractive as strong brands or companies are
present. Possible to create new products that
have advantages
Evaluate the attractiveness of market, create a
unique brand that is hard to imitate is a solution.
Brand association
Who do they target? (segmentation)
With what position/association?
Positioning/differentiation
Segmentation
Identify serial killer profiles: obtain information
through surveys or purchase records to
characterize individuals into clusters or segments.
Besides, ask about what attributes they value,
which brands they consider, how would they rate
each brand for each attribute. Look at the top
most-valued attributes, or summarize many
dimensions into two or three.
Typical segmentation criteria:
Purchasing
Geographic Demographic
Process
Beliefs/attitu Preference/Needs
Situational
des /Requirement
(from easy to hard, from not predict behavior to
predict behavior)
How consumer makes decision
Need-Search-Choice: Consumers usually have
access to many alternative solutions. They will
search for information through heuristics and
evaluate smaller sets of choices, make trade-offs
between attributes and alternatives.
Perceptual Map
If brand does not satisfy the heuristic, it can never
be chosen because it is not considered. Using
information, identify the relation between
product characteristics and consumer choice.
Consumer are more likely to have ideal points.
Build a perceptual map, use info which attributes
are important, how consumers segments
evaluate different alternatives, what are ideal
points. Use perceptual map to detect
opportunities and identify competition.
Competition/brand alternative
Marketing warfare
Market leader, defend market share,
40%
expand the total market, attack yourself
Market challenger, frontal attack, flank
30%
attack
20% Market follower, innovation imitation
Marketer nicher, leader in small market,
10%
create new niches
Brand alternative
Pros: increased credibility,
economies of scale,
communication synergies
Brand house Cons: less freedom to create a
distinct image for offerings,
master brand could lack in
terms of credibility
Pros: strengthens the master
brand, provides some freedom
to create distinct associations
for endorsed brands
Endorsement
Cons: requires significant
investments, especially if the
introduction of a new corporate
master brand is warranted
Pros: clear positioning with
unique brand associations
House of possible, no risk of brand
brands dilution possible, no risk of
negative effect on master brand
if another brand fail
 Cons: the most costly SUCCESS (message + media) Simple, Unexpected,
alternative, would not enhance Concrete, Credible, Emotional, Story-telling,
master brand equity Salience of brand
Online/Digital media
New Product not all products transition well from the offline
Adoption gap: Failure of adopting an innovation world to the online world. However, if you decide
is often due to three underestimated obstacles. to go online, therere a number of alternative
understand offerings tools to reach a consumer (sponsored search,
understanding gap
benefits SEO, online distribution, social media)
perceive offering to be Digital concern: do not pay for clicks that you
attractiveness gap
attractive would get organically, choose well your
behavior change intent to purchase keywords, make sure that social media can
gap offering generate purchase, or if not, that theres a clear
Output of a gap analysis: image creating mechanism in this tool. Digital
ACCORD. Advantage, complexity, compatibility, communication has one advantage, its ROI can
observability, risk, divisibility really be measured, but be sure to understand
Predict demand for a new product the statistics and to impute the final purchase to
Concept purchase 24% sure, 51% maybe the correct media.
intent: Push and Pull strategy
Adjusted trial rate: industry rule of thumb Push strategy: involves taking the product
60% sure, 30% maybe directly to the customer via whatever means,
60%*24%+30%*51%=29.7% ensuring the customer is aware of your brand at
Marketing plan distribution 80%, the point of purchase. Taking the product to the
adjustment awareness 50% customer
Estimated trial rate: 29.7%*80%*50%=11.9% Pull strategy: involves motivating customers to
Total market 77.4M, Trial population seek out your brand in an active process. Getting
77.4M*11.9%=9.2M, the customer to come to you.
Repeat rate: average product 39%,
Number of repeat: purchase occasions=2.5, Pricing
Average repeat transaction quantity=1.4 units, Pricing theories cost-based, competition, value-
Predicted Sales 12.6M units demand, target return
Reference price:
Communication usual price, last price Knowledge or
Communication process: paid experience
(5M) fair price, upper- Perception of Value
Researching customer value: product manager bound price,
describes the product and consumer, Mission + competitor price
Money, serves as guideline for the expected future price, Expectations
communication agency usual discounted price
Propose a campaign: communication agency
describes the Media + Message, necessary Price discrimination: customers in different
investment, predicts results segments have different price elasticity of
Implementation decision: clarification or demand and different reservation price, selling a
update first 4Ms + get ready for Measurement, product at two or more different prices that do
analysis of advertisement and quality check, not reflect a proportional change in costs,
implementation and measure of results. maximize profits by charging them different
prices