Transcript emotional brand values

Topic 2
An introduction to
marketing and the concept
of brand
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia
T2-1
Topic overview
 The meaning of brand
 The difference between rational and emotional
brand values
 Introduction to terms such as rational and
emotional brand values, attributes and
personality in branding
 The four choices involved in developing a
brand strategy
 Co-branding and brand equity
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia
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What is marketing?
 Marketing involves finding out about the:
– target market (who a company will sell to)
– product or service (what they plan to sell)
– price (at what price)
– placement (where)
– promotion (how they will promote their product or
service)
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia
T2-3
Communicating the brand to
the consumer
 As far as the consumer is concerned ‘all ads
are brand ads’ (Batey 2002, p. 90).
 Organisations must design their
communication with purchasers so that they
are likely to purchase and re-purchase
products.
 Communication of the organisation’s brand is
very important.
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia
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Activity 1
 Complete activity 1 on p. 252 of your textbook.
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia
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What is a brand?
 A brand refers to a name, term, symbol or
design, or a combination of these, that
identifies a product. ‘A brand includes the use
of a name, a trademark, and practically all
other means of product identification.’
(Quester, McGuiggan, Perreault & McCarthy
2005, p. 275).
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia
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Rational and emotional brand
values
 According to Batey (2002, p. 85), a brand
offers a long-lasting appeal that is made up of
rational brand values and emotional brand
values.
 Rational brand values are made up of
attributes and tangible benefits.
 Emotional brand values are made up of
personality and intangible benefits.
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia
T2-7
Explaining key vocabulary
 Attributes are concerned with the product; its
functions and physical characteristics.
 Tangible benefits can be defined by asking:
What will it do for me? What are the
consequences of these attributes that make
the brand desirable?
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia
T2-8
Explaining key vocabulary (cont.)
 Personality can be defined by thinking about
the brand as if it was a person and asking what
kind of person it would be.
 Intangible benefits can be defined by
answering the question: What feelings are
evoked by the brand? What are the end
emotional rewards I can expect from using the
brand?
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia
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Activities 2 and 3
 Complete activities 2 and 3 on pp 254–257 of
your textbook.
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia
T2-10
Branding strategy
 Once an organisation has decided on whether
to brand or not it needs to develop an
appropriate strategy. A company has four
choices for brand strategy (adapted from
Armstrong & Kotler 2003, p. 296):
– line extensions
– brand extensions
– multibrands
– new brands.
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia
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Branding strategy (cont.)
 Line extensions—different items in a product
category under the same brand name (e.g.
Dannon yoghurts introduced fat-free, economy
size and new flavours).
 Brand extensions—Mattel extended the
Barbie doll brand to furnishings, electronics,
books, CAT machinery and work wear .
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia
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Branding strategy (cont.)
 Multibrands—additional brands in same
category to suit different cultures or countries
(e.g. Proctor and Gamble sell ‘Tide’ in the US
and ‘Ariel’ in Europe).
 New brands—Companies such as Matsushita
in Japan have created new brands owned by
them, such as Panasonic and National.
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia
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Co-branding
 ‘The practice of using the established brand
names of two different companies’ (e.g. Mattel
and Coca-Cola co-marketed a Barbie soda
drink (Armstrong & Kotler 2003,
p. 295)).
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia
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Activity 4
 Complete activity 4 on p. 257 of your textbook.
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia
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Brand equity
 Quester et al. (2005, p. 279) describe brand
equity as ‘the value to a company of the
brand’s overall position in the market’.
 These writers explain that if a high number of
satisfied customers insist on a particular brand,
retailers will naturally want to stock the brand
and equity will therefore be high.
 The true value of a brand is based on the
extent to which it has high brand loyalty, name
awareness, perceived quality and other assets
such as patents and trademarks.
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia
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Brand equity (cont.)
 Aaker’s (1991, p. 270) model of brand equity
shows that a number of assets determine the
value of the brand to both the organisation and
the customer.
 Marketing professionals learn how these
assets vary between brands so that customers
come to prefer one brand over another. This
preference gives one product or service a
competitive advantage over another (Aaker
1991, p. 270).
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia
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Activity 5
 Complete activity 5 on p. 258 of your textbook.
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia
T2-18
Summary
 Marketing involves consideration of the target
market, the product or service, the price,
placement and how the product will be
promoted.
 Organisations must communicate effectively
with purchasers so that they are likely to keep
purchasing the product (Batey 2002, p. 90).
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia
T2-19
Summary (cont.)
 According to Batey (2002, p. 85), a brand is
made up of rational and emotional brand
values.
 Rational brand values are made up of
attributes and tangible benefits
 Emotional brand values are made up of
personality and intangible benefits.
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia
T2-20
Summary (cont.)
 Attributes are concerned with the functions
and physical characteristics of a product.
 Tangible benefits relate to what it is the
product does for the purchaser that makes it
desirable.
 Personality is concerned with working out the
kind of person a brand would be.
 Intangible benefits explore the desirable
feelings evoked by the brand.
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia
T2-21
Summary (cont.)
 Developing a brand strategy involves making
choices about line extensions, brand
extensions, multibrands and new brands.
 A company may also co-brand by combining
two established brand names.
 Quester et al. (2005, p. 279) describe brand
equity as ‘the value to a company of the
brand’s overall position in the market’.
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia
T2-22
Summary (cont.)
 The true value of a brand is based on how
loyal customers are, name awareness and
perceived quality.
 Aaker (1991, p. 270) showed how various
assets determine the value of the brand to both
the organisation and the customer.
 Customers prefer one brand over another
depending on these assets (Aaker 1991,
p. 270).
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia
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References
 Aaker, D.A. 1991, Managing brand equity, The
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Free Press, New York.
Armstrong, G. & Kotler, P. 2003, Marketing. An
Introduction, 6th edn, Prentice Hall, New Jersey.
Batey, I. 2002, Asian branding: a great way to fly,
Prentice Hall, Singapore.
Keller, K.L. 2003, Strategic brand management,
Pearson Education, New Jersey.
Quester, P., McGuiggan, R., Perreault, W.,
McCarthy, E. 2005, Marketing: creating and
delivering value, 4th edn, McGraw-Hill, Sydney.
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia
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