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Chapter 6-9 PBM

Chapter Six discusses the importance of brand strategy and marketing strategy in building brand equity through integrated and personalized marketing programs. It highlights the evolution of marketing due to technological advancements and changing consumer behaviors, emphasizing experiential, one-to-one, and permission marketing. Additionally, it covers product strategy, pricing strategy, channel strategy, and communication strategy as essential components in enhancing brand equity.

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0% found this document useful (0 votes)
27 views24 pages

Chapter 6-9 PBM

Chapter Six discusses the importance of brand strategy and marketing strategy in building brand equity through integrated and personalized marketing programs. It highlights the evolution of marketing due to technological advancements and changing consumer behaviors, emphasizing experiential, one-to-one, and permission marketing. Additionally, it covers product strategy, pricing strategy, channel strategy, and communication strategy as essential components in enhancing brand equity.

Uploaded by

minale desta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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CHAPTER - SIX

BRAND STRATEGY AND MARKETING STRATEGY


6.1 Designing Marketing Programs to Build Brand Equity
At the core of building brand equity are marketing programs or strategies. Marketing activities
can facilitate increasing brand awareness as well as creating the right brand image. Marketing
activities can be weaved around product, pricing and distribution channel. But the way these
marketing activities are carried out has gone under revolutionary change owing to the modern
technology driven world.
New Perspectives on Marketing
 The strategy and tactics behind marketing programs have changed dramatically in recent
years as firms have dealt with enormous shifts in their external marketing environments.
Some of these changes include:
• Rapid technological developments
• Greater customer empowerment
• Fragmentation of traditional media
• Growth of interactive and mobile marketing options
• Channel transformation and disintermediation
• Increased competition and industry convergence
• Globalization and growth of developing markets
• Heightened environmental, community, and social concerns
• Severe economic recession.
 The new marketing environment of the twenty-first century has forced marketers to
fundamentally change the way they develop their marketing programs.
 Integration and personalization, in particular, have become increasingly crucial factors in
building and maintaining strong brands, as companies strive to use a broad set of tightly
focused personally meaningful marketing activities to win customers.
1. Integrating Marketing
 In today’s marketplace, there are many different means by which products and services and
their corresponding marketing programs can build brand equity. Channel strategies,
communication strategies, pricing strategies, and other marketing activities can all enhance
or detract from brand equity.

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2. Personalizing Marketing
To adapt to the increased consumer desire for and competitive forces impelling toward
personalization, marketers are embracing concepts such as experiential marketing, one-to-one
marketing, and permission marketing.
Experiential marketing
 Experiential marketing is the concept of creating an experience that integrates elements of
emotions, logic, and general thought processes to connect with the consumer.
 Experiential marketing promotes a product by not only communicating a product’s features
and benefits but also connecting it with unique and interesting experiences.
 One marketing writer describes experiential marketing by,” the idea is not to sell something,
but to demonstrate how a brand can enrich a customer’s life”.
 This unique concept is associated with brands and the experience consumer has with them.
 Columbia University’s Bernd Schmitt describes how experiential marketing differs from
traditional marketing in several distinct ways.
 Focuses on customer experience
 Focuses on consumption situation
 View consumers as rational and emotional animals
 Engages all 5 senses i.e. see, hear, touch, smell & touch
 Objective of experiential marketing is to establish the connection in such a way that the
consumer responds to a product offering based on both emotional and rational
response levels.
 Nowadays striking displays with powerful visual elements: such as websites, visual
media such as print ads are made visually appealing.
One-To-One Marketing
 One-to-one marketing is thus based on several fundamental strategies:
• Focus on individual consumers through consumer databases—“We single out consumers.”
• Respond to consumer dialogue via interactivity—“The consumer talks to us.”
• Customize products and services—“We make something unique for him or her.”
Another tenet of one-to-one marketing is treating different consumers differently because of their
different needs, and their different current and future value to the firm.

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Permission marketing
 Permission marketing encourages consumers to participate in a long-term interactive
marketing campaign in which they are rewarded in some way for paying attention to
increasingly relevant messages. E.g. Amazon takes permission from the consumer before
sending recommendations.
 This permission marketing enables companies to build a unique brand images leading to
strong brand equity.
 Permission marketing is capturing marketers’ interest because of the powerful technology
that now exists on the internet.
 With the help of large databases and advanced software, companies can store customer data
and process this information to send targeted, personalized marketing messages to customers.
 Five Steps in Permission Marketing
• Must offer overt, obvious, and clearly delivered incentive to prospect to volunteer
• Must offer a curriculum over time, teaching the consumer about the product or service
• Must reinforce the incentive over time
• Must increase the level of permission the marketer receives from the customer
• Must leverage permission to generate profits
6.1. Product Strategy
 At the heart of a great brand is invariably a great product. Designing and
implementing a product or service that fully satisfies consumers’ needs
and wants is a prerequisite for successful marketing, regardless of
whether the product is tangible or intangible. This section considers two
topics:
I. Perceived quality and value

Perceived quality and value has been defined as customers’ perception of


the overall quality or superiority of a product or service relative to relevant
alternatives and with respect to its intended purpose.

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Research identified the following general dimensions of product quality:

 Performance- levels at which the primary characteristics of the product


operate (e.g. low, medium, high, or very high).
 Features- secondary elements of a product that complement the
primary characteristics.
 Conformance quality- degree to which the products meet
specifications and is absent of defect.
 Reliability- consistency of performance over time and from purchase to
purchase.
 Durability- expected economic life of the product.
 Serviceability- eases of servicing the product.
 Style and design- appearance or feel of quality.
 Consumer beliefs among these dimensions often underlie perceptions of
quality of the product that, in turn, can influence attitudes and behavior
towards a brand.
II. Relationship Marketing Issues
 With this relationship marketing, marketers attempt to transcend the
simple purchase exchange process with consumers to make more
meaningful and richer contact.
 Relationship marketing attempts to provide a more holistic, personalized
brand experience to create stronger consumer ties.
 Relationship marketing is based on the premise that current customers
are the key to long-term brand success.
 Relationship marketing is one means of customer retention. Hence,
customer retention can provide the following benefits.
 Acquiring new customers can cost five times more than the costs
involved in satisfying and retaining current customers.
 The average company loses 10% of its customers each year.
 A 5% reduction in customer defection rate can increase profits by 25%
to 80% depending on the industry.

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 The customer profit rate tends to increase over the life of the
retained customer.

In this session, there are three important relationship marketing issues


that should be considered.

 These Relationship marketing issues are:


o Mass customization,
o after marketing and
o Loyalty programs.
 Mass customization: the concept behind mass customization, namely
making products to fit the customer’s exact specifications, is an old, but
advent digital-age technology enables companies to offer customized
products.
 Mass customization enables consumers to distinguish themselves with
even basic purchases. “Customization addresses the need for
individually”, said McElligote advertising analyst. E.g. Nike enables
customers to put their own personalized message on a pair of shoes with
the NIKEiD Program. At the NIKEiD website, visitors can make a
customized shoe by selecting the size, width, and color Schemes and
affixing an eight-character personal ID to their creation.
 Mass customization can offer supply side benefits too. Inventory can be
reduced, saving ware house space and discount leftover merchandizes.
 Mass customization is not restricted to products: many service
organizations such as banks are developing such market strategy.
 After marketing: are those marketing activities that occur after
customer purchase. Innovative design, testing, quality production and
effective communication through mass customization or any other means
are the most important consideration in enhancing product consumption
experience that builds brand equity.

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 The term after marketing describes a necessary new mind-set that
reminds business of the importance of a lasting relationship with
customers, to extend their lifetimes.
 After marketing can also involve the sale of related,
complementary products that are ingredients, help to make up a
system.
 Seven after marketing activities:
 Establishing and maintaining customer information file (tracking all
current, potential, inactive, and past customers).
 “Blueprinting” customer contacts.
 Analyzing customer feedback (explore nature of satisfaction and
dissatisfactions).
 Conducting customer satisfaction surveys
 Formulating and managing communication programs (sending
customers proprietary magazines newsletters).
 Hosting special customer events or programs (celebrating
relationship with the brand).
 Identifying and reclaiming lost customers (one of the best source of
new customers).
 Loyalty programs: loyalty or frequency of programs have become
one popular means by which marketers can create strong ties to
customers.
 The purpose of frequency marketing has been defined as
“identifying, maintaining, and increase the yield from a firm’s ‘best’
customers through long-term, interactive, value-added
relationships.
 Loyalty programs which are practiced by many business
organizations include: membership reward program, incentives,
free trip, etc.

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 Some tips for building effective loyalty programs as follow:
Know your audience: most loyalty marketers employed
sophisticated databases and software to determine which customer
segment to target with a given program. It is important to target
consumers whose purchasing behavior can be changed by the
program.
Change is good: marketers must consistently update the program to
attract new customers and prevent other companies in their category
from developing “me-too” programs. “Any loyalty programs that stays
static will die”, said one executive.
Listen to best customers: suggestions and complaints from top
customers must be carefully considered, because they can lead to
improvements in the program.
Engaging people: it is important to make customers want to join the
program. This includes making the program easy to use and offering
immediate rewards when customers sign-up. Once they become
members, customers must be made to “feel special”, for example by
send them birth day greetings, special offerings or invitations to
special events.

6.2 Pricing Strategy

 Price is the one revenue generating element of the traditional marketing


mix, and Price premiums are among the most important brand equity
benefits of building a strong brand. This section considers different
consumers price perception and different pricing strategies that the firm
must adopt to build brand equity.

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 Pricing is crucial for brand image. To establish price, product cost should
not be the only consideration. But consumer perception for potential
product value and sensitivity to price is also of equal importance.
Competitor’s price also cannot be ignored because price war will not
benefit anyone in the market. An effort has to be made to educate the
consumer about cost of serving them, for them to understand price of
product.
 Choosing a pricing strategy to build brand equity involves determining the
following:
A method or approach for how price will be set.
A policy or set of guidelines for the depth and duration of promotions and
discounts over time.

6.3 Channel Strategy

 Marketing channels are defined as sets of interdependent


organizations involved in the process of making a product or service
available for use or consumption.
 Chanel strategy involves the design and management of
intermediaries such as wholesalers, distributors, brokers and
retailers.

Chanel design

 Chanel design can be classified in to direct and indirect channels.


 Direct channels involve selling through personal contacts from the
company to prospective customers by mail, phone, electronic means,
in-person visits and so forth.
 In direct channels involve selling through third party
intermediaries such as agents or brokers, wholesalers or distributers
and retailers or dealers.
 One study suggests that direct channels may be profitable when the
following are true:

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 Product information needs are high
 Product customization is high
 Product quality assurance is important
 Purchase lot size is important
 Logistics are important
 On the other hand, indirect channels may be profitable when:
 A broad assortment is essential
 Availability is crucial

6.4 Communications Strategy

 Marketing programs play an important role in building up of brand


equity.
 These marketing programs are related to product, price and
distribution channels and these programs are necessary to create
brand image and also to build brand awareness.
 This task is done through medium of marketing communication, in its
most form is advertising.
 Marketing communication is essential in establishing point of
similarity, as well point of difference with competition, making an
impression in consumer’s mind leading to development of strong
consumer based brand equity and also to develop long- lasting
relationship.
Marketing communication options
 Advertising is any paid form of non-personal presentation and
promotion of ideas, goods or services by an identified sponsor.
 Advertising plays an important and often controversial role in
contributing to brand equity.
 When we say it is controversial meaning difficult to quantify and
predict.

Types of advertising mediums

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Television- is the most powerful medium because it allows for sight,
sound and motion and reaches a broad spectrum of consumers.
Print media- offer a stark contrast to broadcast media. Most important,
b/c of their self-placed nature, magazines and newspapers can provide
detailed product information. The two main print media magazines and
news-papers have many of the same advantages and disadvantages.
Magazines are effective at building user and usage imagery. News-
papers are more timely and pervasive.
Direct response- refers to the use of mail, telephone and other non
personal contact tools.
Online- the two crucial online brand-building tools are Web site and
interactive ads.
Event marketing and sponsorship- refers to public sponsorship
events related to sport, art, entertainment or social causes.
Consumer promotion- are designed to change the choices, quantities,
or timing of consumers’ product purchase. e.g. samples,
demonstrations, coupons, refund, contest, bonus, price-off, etc.

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CHAPTER - 7. DESIGNING AND IMPLEMENTING BRANDING STRATEGIES

7.1. The brand-product matrix


 To characterize the product and branding strategy of a firm, one useful
tool is the brand-product matrix, a graphical representation of all
the brands and products sold by the firm.

4 1
2
 The matrix (or grid) has the brands of a firm as rows and the
corresponding products as columns.
 The rows of the brand-product matrix represent brand-product
relationships and capture the brand extension strategy of the firm in
terms of the number and nature of products sold under the firm’s
brands.
 A brand line consists of all products—original as well as line and
category extensions—sold under a particular brand.

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 Thus, a brand line would be one row of the matrix. A potential new
product extension for a brand must be judged by how effectively it
leverages existing brand equity from the parent brand to the new
product, as well as how effectively the extension, in turn, contributes
to the equity of the parent brand.
 The columns of the brand-product matrix, on the other hand,
represent product-brand relationships and capture the brand
portfolio strategy in terms of the number and nature of brands to be
marketed in each category.
 The brand portfolio is the set of all brands and brand lines that a
particular firm offers for sale to buyers in a particular category.

 A product line is a group of products within a product category that


are closely related because they function in a similar manner, are sold
to the same customer groups, are marketed through the same type of
outlets, or fall within given price ranges.
 A product line may be composed of different brands or a single family
brand or individual brand that has been line extended.
 A product mix (or product assortment) is the set of all product
lines and items that a particular seller makes available to buyers.
 Thus, product lines represent different sets of columns in the brand-
product matrix that, in total, make up the product mix.
 A brand mix (or brand assortment) is the set of all brand lines that
a particular seller makes available to buyers.

7.2 Designing a Branding Strategy

 The branding strategy for a firm reflects the number and nature
of common and distinctive brand elements applied to the different
products sold by the firm.
 In other words, branding strategy involves deciding which brand
names, logos, symbols, and so forth should be applied to which

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products and the nature of new and existing brand elements to be
applied to new products.
 A branding strategy for a firm can be characterized according to
its breadth (i.e., in terms of brand-product relationships and brand
extension strategy) and its depth (i.e., in terms of product-brand
relationships and the brand portfolio or mix).
 For example, a branding strategy can be seen as both deep and
broad if the firm has a large number of brands, many of which
have been extended into various product categories.
 In other words, branding strategy involves deciding which brand
names, logos, symbols, and so forth should be applied to which
products and the nature of new and existing brand elements to be
applied to new products.
 Today, branding is such a strong force that hardly anything goes
unbranded. Assuming a firm decides to brand its products or
services, it must choose which brand names to use. Three
general brand strategies are popular:

 Individual or separate family brand names. Consumer


packaged-goods companies have a long tradition of branding
different products by different names. A major advantage of
individual or separate family brand names is that if a product
fails or appears to be of low quality, the company has not
tied its reputation to it. Companies often use different brand
names for different quality lines within the same product
class.
 Corporate umbrella or company brand name. Many
firms, such as Heinz and GE, use their corporate brand as an
umbrella brand across their entire range of products.
Campbell Soup introduces new soups under its brand name
with extreme simplicity and achieves instant recognition.

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Sales of the new product are likely to be strong if the
manufacturer’s name is good. Corporate-image associations
of innovativeness, expertise, and trustworthiness have been
shown to directly influence consumer evaluations.

 Finally, a corporate branding strategy can lead to greater intangible


value for the firm.
• Sub-brand name. Sub-brands combine two or more of the corporate
brand, family brand, or individual product brand names.
Many durable-goods makers such as Honda, Sony, and Hewlett-Packard use
sub-brands for their products. The corporate or company name legitimizes,
and the individual name individualizes, the new product.*
Inv00141//*

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CHAPTER -8

BRAND NAMES AND BRAND EXTENSIONS


8.1 New Products and Brand Extensions

As a background, it is worthwhile to first consider the sources of growth for a


firm. One useful perspective is offered by Anosoff’s product/market
expansion grid. As shown in Figure 8.1, growth strategies can be categorized
according to whether they involve existing or new product and or target
existing or new markets.

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Figure 8.1, Ansoff’s Growth Share Matrix

Product

Existing New

Brand Line extension (1) Brand extension (2)


Existing
Names Multi brands (4) New brands (3)

New

 Deciding how to brand new products is especially critical. A firm has


three main choices:
1. It can develop new brand elements for the new product.
2. It can apply some of its existing brand elements.
3. It can use a combination of new and existing brand elements.
When a firm uses an established brand to introduce a new product, the
product is called a brand extension. When marketers combine a new brand
with an existing brand, the brand extension can also be called a sub-brand.

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The existing brand that gives birth to a brand extension or sub-brand is the
parent brand. If the parent brand is already associated with multiple
products through brand extensions, it can also be called a master brand or
family brand.
8.1.1 Brand Extensions
A Brand Extension occurs when a firm uses an established brand name to
introduce a new product (approaches 2 or 3). When a new brand is combined
with an existing brand (approach 3) also called a sub-brand. An existing
brand that gives birth to a brand extension is the parent brand. If the
parent brand is already associated with multiple products through brand
extensions, then it may also be called a family brand.
Types of Brand Extension
 Line Extension
The parent brand is used to brand a new product that targets a new market
segment with in a product category currently served by the parent brand.
A line extension often adds a different flavor or ingredient variety, a different
form or size, or a different application for the brand. E. g: Head & Shoulders
 Category Extension
The parent brand is used to enter a different product category from that
currently served by the parent brand.

8.2 Advantages of Brand extensions


Well- planned and well-implemented extensions offer a number of
advantages to marketers. These advantages can broadly be categorized as
those that facilitate new product acceptance and those that provide
feedback benefits to the parent brand or company as whole.
 Facilitate New Product Acceptance
A familiar brand name reduces the risk and as a brand extension is more
likely to succeed
 Improve brand image
 Reduce risk perceived by Customers

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 Permit consume variety-seeking
 Increase the probability of gaining distribution and trial
 Increase efficiency of promotional expenditures
 Reduce costs of introductory & follow-up marketing programs (save
40-80%) E.g. Apple iPods
 Avoid costs of developing a new brand
 Allow for packaging & labeling efficiencies
 Provide Feedback Benefits to the Parent Brand and Company
 Clarify Brand meaning – e.g. Cadbury’s means ‘sweetness and
celebration’
 Enhance the Parent brand image – by adding new brand
associations
 Bring in new customers and increase market coverage.
 Revitalize the brand
 Permit subsequent extensions
Disadvantages of Brand Extensions
Despite their potential advantages, brand extensions have a number of disadvantages
Can confuse or frustrate consumers: a Different variety of line extensions may confuse
and perhaps even frustrate consumers about which version of the product is the “right
one” for them.
Can encounter retailer resistance: retailers often feel that many line extensions are
merely “me-too” products that duplicate existing brands in a product category and should
not be stocked even if there is space. Wal-Mart, the biggest retailer in the United States,
attempts to stock the items that sell best, dropping as many as 20 percent of slow-moving
items from its shelves annually.
Can fail & hurt parent brand image: The worst possible scenario for an extension is not
only to fail, but to harm the parent brand image in the process. Unfortunately, these
negative feedback effects can sometimes happen. Understanding when unsuccessful
brand extensions may damage the parent brand is important.
E.g Xerox Computers-synonymous with copiers & no one believed they could
make computers

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Can succeed but cannibalize sales of parent brand: Even if sales of a brand extension
are high and meet targets, success may result merely from consumers switching from
existing offerings of the parent brand—in effect cannibalizing it.
 Amul Butter-”reduced salt butter” is slowly eating up Amul normal butter.
Can dilute brand meaning: The potential drawbacks of a brand extension’s lack of
identification with any one category and a weakened image may be especially evident
with high-quality or prestige brands. To protect their brands from dilution, many up-and-
coming fashion companies and designers seeking to establish their brand through a
family of brand extensions are now forging exclusive licensing partnerships with a single
retailer.
Can cause the company to forgo the chance to develop a new brand
One easily overlooked disadvantage of brand extensions is that by introducing a new product as
a brand extension, the company forgoes the chance to create a new brand, with its own unique
image and equity.
8.3 How Consumers Evaluate Extensions

Conditions that should hold true to result in favorable evaluation of an


extension
 Consumers have some awareness of and positive associations about
the brand in memory, unless there existed some type of potentially
beneficial consumer knowledge about the parent brand, it is difficult to
expect consumers to form favorable expectations of an extension.
 At least some of these positive associations are evoked by the
brand extension: consumers are likely to infer associations similar in
strength; favorability; and uniqueness to the parent brand when the
brand extension is seen as being similar or close in fit to the parent
brand.
 Negative associations are not transferred from the parent
brand: ideally, any negative associations that do exist for the parent
brand would be left behind and not play a prominent role in the
evaluation of the extension.

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 Negative associations are not created by the brand extension:
consumers must also not infer any new attribute or benefit
associations that did not characterize the parent brand but which they
see as a potential drawback to the extension.
The more these four assumptions hold true, the more likely it is that
consumers will form favorable attributes towards an extension.

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CHAPTER -9: MANAGING BRANDS OVER TIME
One of the obvious challenges in managing brands is constant change in the marketing
environment.
Shifts in consumer behavior, competitive strategies, government regulations, technological
advances and other areas can profoundly affect the fortunes of a brand. Besides these external
forces, the firm’s own strategic focus may force minor or major adjustments in the way it
markets its brands. Effective brand management thus requires proactive strategies designed to at
least maintain—if not actually enhance—customer-based brand equity in the face of all these
different forces.
9.1 Reinforcing Brands
Because consumer responses to marketing activity depend on what they
know and remember about a brand, short-term marketing actions, by
changing brand knowledge, necessarily increase or decrease the long-term
success of future marketing actions.
As a company’s major enduring asset, a brand needs to be carefully
managed so its value does not depreciate. Marketers can reinforce brand
equity by consistently conveying the brand’s meaning in terms of (1) what
products it represents, what core benefits it supplies, and what needs it
satisfies; and (2) how the brand makes products superior, and which strong,
favorable, and unique brand associations should exist in consumers’ minds.
NIVEA, one of Europe’s strongest brands, has expanded from a skin cream
brand to a skin care and personal care brand through carefully designed and
implemented brand extensions that reinforce the brand promise of “mild,”
“gentle,” and “caring.”
Reinforcing brand equity requires that the brand always be moving forward—
in the right direction and with new and compelling offerings and ways to
market them. In virtually every product category, once-prominent and
admired brands—such as Fila, Oldsmobile, Polaroid, and Circuit City— have
fallen on hard times or gone out of business.
An important part of reinforcing brands is providing consistent marketing
support and Protecting Sources of Brand Equity.

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Maintaining Brand Consistency
Without question, the most important consideration in reinforcing brands is consistency in the
nature and amount of marketing support the brand receives.
 Brand consistency is critical to maintaining the strength and favorability of brand
associations.
 Consistency doesn’t mean uniformity with no changes: While there is little need to
deviate from a successful position, many tactical changes may be necessary to maintain
the strategic thrust and direction of the brand.
 When change is necessary, marketers should vigorously preserve and defend sources of
brand equity.
Protecting Sources of Brand Equity
 Although brands should always look for potentially powerful new sources of brand
equity, a top priority is to preserve and defend those that already existed.
 Ideally, the key sources of brand equity are of enduring value. Unfortunately, marketers
can easily overlook that value as they attempt to expand the meaning of their brands and
add new product-related or non-product-related brand associations.
9.2 Brand Revitalization
 Expand the depth and/or breadth of awareness by improving consumer
recall and recognition of the brand during purchase or consumption
settings.
 Often, the first thing to do in revitalizing a brand is to understand
what the sources of brand equity were to begin with.
 Are positive associations losing their strength or uniqueness? Have
negative associations become linked to the brand? Then decide
whether to retain the same positioning or create a new one, and if so,
which new one.
 Sometimes the actual marketing program is the source of the problem,
because it fails to deliver on the brand promise. Then a “back to
basics” strategy may make sense.

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Strategies to Revitalize Brands
There is obviously a continuum of revitalization strategies, with pure “back
to basics” at one end, pure “reinvention” at the other and many
combinations in between. The following are revitalizing strategies:

1. Expanding brand awareness: Increasing the level or quantity of


consumption and Increasing the frequency of consumption
2. Improving brand image: through;
a. Repositioning the brand- by establishing more compelling points of
difference and point of parity on some key image dimension.

b. Changing brand elements- Convey new information or signal that the


brand has taken on new meaning
3. Entering new markets- One strategic option for revitalizing a fading
brand is simply to more or less abandon the consumer group that
supported the brand in the past to target a completely new market
segment.

4. Marketers often focus on taking action with one or more of four key target market segments:
Retaining vulnerable customers
Recapturing lost customers
Identifying neglected segments
Attracting new customers
9.3 Adjustments to the Brand Portfolio
 A brand can only be stretched so far, and all the segments the firm
would like to target may not view the same brand equally
favorably. Marketers often need multiple brands in order to pursue
these multiple segments.
 Management brand equity and brand portfolio requires taking long
term view of the brand. It is necessary to carefully consider the role of
different brands and the relationship among different brands in the
portfolio over time. In particular, a brand migration strategy needs to

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be designed and implemented so that customers could understand
how various brands in the portfolio can satisfy their needs as they
potentially change over time.

 Migration strategies: A corporate or family branding strategy in


which brands are ordered in a logical manner could provide the
hierarchical structure in consumers’ minds to facilitate brand
migration. Example: BMW with its 3-, 5-, and 7-series numbering
systems.

 Acquiring new customers: Tradeoffs in their marketing efforts


between attracting new customers and retaining existing ones. Firms
must proactively develop strategies to attract new customers,
especially younger ones.

 Retiring brands: because of dramatic or divers changes in the


market place, some brands are just not worth saving. Their source of
brand equity may have essentially dried up or, even worth, damaging
and difficult to change new associations may have been created.

Several options are possible to deal with a fading brand. One is, reduce
the number of product types (e.g. packaging size or variations).

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