MGMC11H3 Chapter Notes - Chapter 13: Brand Equity, Market Failure, Umbrella Brand

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MGMC11 – Chapter 13: Managing Brands Over Time:
Consumer response to PAST marketing activity  brand knowledge  consumer response to CURRENT marketing
activity  CHANGED brand knowledge  consumer response to FUTURE marketing activity
Reinforcing Brands:
- Marketing actions that consistently convey the meaning of the brand to consumers in terms of brand awareness
and brand image
- Things to consider:
oWhat products does the brand represent, what benefits does it supply, and what needs does it satisfy?
oHow does the brand make those product superior? What strong, favourable, and unique brand
associations exist in the minds of consumers?
- Depends on the firm’s general approach to product development, branding strategies, and other strategic
concerns
-One rule for modern branding: brands can never stand still  must constantly move forward
- Maintaining brand consistency:
oCritical to maintain the strength and favourability of brand associations
oMarket leaders and failures
Inadequate marketing support  dangerous when combined with price decreases
Repositioning or change ad agencies too often can lead to consumers questioning the brand and
product
oConsistency and change
May require numerous tactical shifts and changes in order to maintain the strategic direction of
the brand
Most effective tactics for a particular brand at any one time can vary to create the same desired
knowledge structures in consumers’ minds
Price go up/down, product features may be added/dropped, ad campaigns may use
different creative strategies and slogans, different brand extensions may be
introduced/withdrawn
Advertising equity  retention of key elements of the marketing program and the preservation
of the brand meaning
Sometimes need to return to their roots to remind existing or lapsed customers or to attract
new ones
Old advertising elements or marketing appeals have enduring meaning with older
customers but are relevant to younger consumers
Examine entire marketing program to determine which elements make strong contributions to
brand equity that must be protected
- Protecting sources of brand equity
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- Fortifying vs. leveraging:
oConstant trade-off between activities that fortify brand equity and those that leverage/capitalize on
existing brand equity
oCan design marketing programs that mainly try to capitalize on or maximize brand awareness and image
Easier to neglect and diminish brand and its sources of equity
- Fine-tuning the supporting marketing program:
oShould only make changes when it’s clear the marketing program and tactics are no longer making the
desired contributions to maintaining or strengthening brand equity
oProduct-related performance associations
Critical for maintaining/enhancing brand equity: innovation in product design, manufacturing,
and merchandising
Failure to innovate can have dire consequences  bankruptcy, removal of divisions, etc.
Product advances: brand extensions on a new/improved/existing brands’ product ingredient or
feature
Important to not change products too much
Critical if the brand meaning for consumers is composed of product design/makeup
Should ensure consumers that it is a better product but not necessarily a new one
Ex: new coke and classic coke
Timing of announcement and intro of a product improvement is vital
Brand improvement is announced too soon  may stop buying existing products
Too late  competitors may already have taken advantage of the market opportunity
oNon-product-related imagery associations
Critical: relevance in user and usage imagery
Intangible nature  easier to change
Ill-conceived or too-frequent changes of positioning can blur the image of a brand and confuse
or alienate consumers
Dangerous to flip-flop between product-related performance and non-product-related imagery
associations
Different marketing and advertising approaches
Significant re-positioning may be dangerous
Brand images can be extremely sticky  strong associations formed  difficult to change
Consumers may choose to ignore or are unable to remember new positioning when
strong but different brand associations already exist in memory
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For dramatic re-positioning strategies to work, must present convincing new brand claims in a
compelling fashion
Revitalizing Brands:
- Return to roots to recapture lost sources of equity
oMarketers need to accurately and completely characterize:
Breadth and depth of brand awareness
Strength, favourability, and uniqueness of brand associations and brand responses held in
consumer memory
Nature of consumer-brand relationships
oSpecial brand audit may be necessary
- Brand meaning has no meaning and needs to change to recapture market leadership
oKey brand associations functioning as PODs
oPOPs to properly position the brand
oLinking of positive and negative associations
oDecide whether to retain same positioning or create a new one  decide which positioning to adopt
Desirability, deliverability, and differentiability of different possible positions based on
consumer, company, and competitive considerations
- Comebacks must make more “revolutionary” than “evolutionary” changes to reinforce brand meaning
oPositioning is appropriate but marketing program is source of problem (fail to deliver)  back-to-basics
strategy
oOld positioning is no longer viable and reinvention is necessary  easiest to revive a brand that has
simply been forgotten  pure reinvention strategy
-Market failures  insufficient consumers are attracted to a brand  much less damaging than product failures
oRelaunches can sometimes prove successful
-Product failures  brand fundamentally fails to live up to its consumer promise
oDifficult to overcome strong, negative associations
- Two strategic options based on CBBE framework:
oExpand the depth/breadth of brand awareness, or both, by improving consumer recall and recognition
of the brand during purchase or consumption settings
oImprove the strength, favourability, and uniqueness of the brand associations making up the brand
image  may require programs directed at existing or new brand associations
- Can refurbish lost sources of brand equity and establish new ones in the same 3 ways we create brand equity:
oChanging brand elements
oChanging the supporting marketing program
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Document Summary

Mgmc11 chapter 13: managing brands over time: Consumer response to past marketing activity brand knowledge consumer response to current marketing activity changed brand knowledge consumer response to future marketing activity. Marketing actions that consistently convey the meaning of the brand to consumers in terms of brand awareness and brand image. Depends on the firm"s general approach to product development, branding strategies, and other strategic concerns. One rule for modern branding: brands can never stand still must constantly move forward. Maintaining brand consistency: critical to maintain the strength and favourability of brand associations, market leaders and failures. Inadequate marketing support dangerous when combined with price decreases. Repositioning or change ad agencies too often can lead to consumers questioning the brand and product: consistency and change. May require numerous tactical shifts and changes in order to maintain the strategic direction of the brand.

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