MKT 510 Lecture Notes - Lecture 11: High Tech, Yoplait, Corporate Social Responsibility

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11 Aug 2016
Mkt 510: Chapter 11
Chapter 11: Designing and Implementing Brand Architecture Strategies
- Brand architecture strategy: helps marketers determine which products and
services to introduce, and which brand names, logos, symbols, and so forth to
apply to new and existing products
- Two major roles for brand architecture:
1. to clarify brand awareness: improve consumer understanding and
communicate similarity and differences between individual products and
2. to improve brand image: maximize transfer of equity between the brand
and individual products and services to improve trial and repeat
- There are 3 main steps in developing a brand architecture strategy:
1. Defining the potential of a brand in terms of its “market footprint”
2. Identifying the product and service extensions that will allow the brand
to achieve that potential
3. Specifying the brand elements and positioning associated the specific
products and services for the brand
Step 1: Defining Brand Potential
- during this step there are 3 important characteristics that need to be
considered: the brand vision, the brand boundaries, and the brand
oArticulating the brand vision
Brand vision it the managements view of the brands long-term
It is influenced by how well the firm is able to recognize the
current and possible future brand equity
A good brand vision has a foot in both the present and the
oDefining the brand boundaries
Is based on the brand vision and positioning
It means identifying the products or services the brand should
offer, the benefits it should supply, and the needs it should
Marketers must evaluate extending their brand carefully and
launch new products selectively
oCrafting the Brand Positioning
Brand positioning puts some specificity into a brand vision
There are 4 main ingredients: comparative frame of reference,
PODs, POPs, and brand mantra
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Step 2: Identifying Brand Extension Opportunities
- A brand extension is a new product introduced under an existing brand name
oLine extensions: new product introductions within existing categories
– Ex. Tide Total Care laundry detergent
oCategory extensions: new product extensions outside existing
categories – Ex. Tide Dry Cleaners retail outlets
- Its important to carefully plan the optimal sequence of brand extensions to
achieve brand potential
- The key is to understand equity implications of each extensions in terms of
PODs and POPs
- Having too many brand extensions can lead to failure
- In order to be successful marketers must be rigorous and disciplined in their
analysis and development of brand extensions
Step 3: Branding New Products and Services
- The final step in developing the brand architecture is to decide on the specific
brand elements to use for any particular new product or service associated
with the brand
- New products and services must be branded in a way to maximize the brands
overall clarity and understanding to consumers and customers
- Sub-brands: are an extremely popular form of brand extension in which the
new product carries both the parent brand name and a new name – Ex. Apple
iPad, Ford fusion etc.
- Sub-brands play an important brand architecture role by signalling to
consumers to expect similarities and differences in the new product
- brand portfolio: includes all brands sold by a company in a product category
- we judge a brand portfolio based on it ability to maximize brand equity – not
a single brand within the portfolio should harm or decrease the equity of
- multiple brands allow a firm to pursue different price segments, different
channels of distribution, different geographic boundaries etc.
- the basic principle in designing a brand portfolio is to maximize market
coverage so that no potential customers are being ignored, but minimize
brand overlap so that brands aren’t competing among themselves to gain the
same customers approval – each brand should have a distinct target market
and positioning
Flankers (Fighter Brands)
- The purpose of flanker brands typically is to create stronger POPs with
competitors’ brands so that more important (and more profitable) flagship
brands can retain their desired positioning
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- Many firms are introducing discount brands as flankers, to better compete
with store brands and private labels and to protect their higher-priced brand
Cash Cows
- Some brands may be kept around despite their diminishing sales because
they still manage to hold on to a sufficient number of customers and maintain
their profitability with virtually no marketing support
- Marketers can effectively milk these cash cows by capitalizing on their source
of existing brand equity
Low-End, Entry-Level, or High-End, Prestige Brands
- The role of a relatively low-priced brand in the brand portfolio often may be
used to attract customers to the brand franchise
- The role of a relatively high-priced brand in the brand family is often to add
prestige and credibility to the entire portfolio
- Brand hierarchy: is a useful means of graphically portraying a firm’s
branding strategy by displaying the number and nature of common and
distinctive brand elements across the firms products, revealing their elicit
- We can construct a hierarchy to represent how (if at all) products are nested
with other products because of their common brand elements
- Levels of brand hierarchy:
1. Corporate or company brand (General Motors)
2. Family Brand (Buick)
3. Individual Brand (Regal)
4. Modifier (designating item or model)
5. Product description (midsize luxury sport sedan automobile)
Levels of a Brand Hierarchy
Corporate or Company Brand Level
- The highest level of the hierarchy
- We refer to corporate and company brands interchangeably, recognizing that
consumers may not necessarily draw a distinction between two or know that
corporations may subsume multiple companies
- For legal reasons, the company or corporate brand is almost always present
somewhere on the product or package, although the name of the company
subsidiary may appear instead of the corporate name
- Corporate image: the consumer associations to the company or corporations
making the product or providing the service
Family Brand Level
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