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1、What Is A Brand?“A brand is a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competition.”American Marketing AssociationWhat Is A Brand?Asset that drives premium prici
2、ng and future cash flowsSignal of quality and a trust markRelationshipA set of rational and emotional associations that identify and differentiate a company or its offerA form of self expressionDeterminants of Brand Strength“It takes 7 to 10 times the cost and effort to secure a new customer as it d
3、oes to keep an existing customer”“An increase in customer loyalty of only 5% can lift lifetime profits per customer by as much as 95%”“50% of customers are willing to try a new product from a preferred brand because of the implied endorsement, credibility and trust.”Customer Loyalty and AdvocacyPrem
4、ium Pricing“I would buy again”“I would highly recommend”“I would travel farther”“I would wait longer”“I would pay more”Investing In Their Brands Top 20 Global Marketers2003 Expenditures In Measured Media (In Billions)2003 Expenditures In Measured Media (In Billions) 1. Procter all the rest are costs
5、.”Peter DruckerThe Allure of Global BrandsEconomies of scale across multiple marketsUniformity of imageResponsiveness to global customersThe laws of BrandingThe law of expansion the power of a brand is inversely proportional to its scopeChevrolet, FordAm Ex (senior, student, membership miles, optima
6、 etc)Levis (27 different cuts custom fit 31-19%)Crest 38 SKUs 36%, today over 50 SKUs 25%The power of a brand is not the sales generated by the brand (competition)Overzealous brand namesVaseline intensive care suntan lotion Gillette clear gel antiperspirantStarbucks corp. : a coffee shop that specia
7、lizes in coffee Toys “R” Us : 20% of toys in US (specialty store or category killer) Babies “R” US, Kids “R” US Narrow the focus: contracting the category not expanding it Stock in depth: 10,000 toys versus 3,000 toys in department store Buy cheap: makes money buying Dominate the category Microsoft
8、95% desktop computer operating systems Intel 80% microprocessors Coca-Cola 70% of cola NOKIA (paper, chemicals, rubber products, electronics, machinery, computers, mobile phones)Contraction a brand becomes stronger when you narrow its focusPublicity the birth of a brand is achieved with publicity no
9、t advertisingBody shop: Anita Roddick traveled the world fro publicity pushing ideas about environmental protectionStarbucks, Wal-Mart: brands dont create publicity, people doBest way to generate publicity: be firstBand-Aid, CNN, Compaq, Gore-Tex, Time, Hertz, Xerox, Playboy, Intel Fast development:
10、 fax vs internetAdvertising once born a brand needs advertising to stay healthyShift from publicity to advertisingShould leaders advertise? Heinz Americas favorite ketchup Budweiser, king of beers Coca-cola the real thing Visa, its everywhere you want to be Almost every ad makes some type of better
11、product claim. What happens when you say our product is the leader?Advertising is a powerful tool not to build a brand or leadership but to maintain leadershipWord a brand should strive to own a word in the mind of consumer Mercedes-Benz: prestige Volvo: safety BMW: fun to drive Own a category word
12、Kleenex is tissue Make me a Xerox copy, hand me the Scotch tape Fed Ex in the delivery business (Emery Air Freight leader), CEO narrowed its focus overnight only: Fed Ex the generic term for overnight delivery Branding a prestige product or service: Make it more expensive than competition Find a cor
13、e word for prestige Mercedes “Engineered like no other car in the world”Credentials crucial ingredient in the success of any brand is its claim to authenticity Customers disbelieve most product claims Coca-cola: the real thing Credentials will make prospects believe almost anything Leadership is the
14、 most direct way to establish credentials Polaroid leader in instant photography but the brand couldnt be stretched to conventional 35mm film against Kodak Many companies run branding programs devoid of credentials: Tastes great, saves money, whitens teeth Find credentials that can be exploited or c
15、reate credentials by inventing a product category The leading Mexican beer The leading ice beerQuality Quality is important but brands are not built by quality aloneDoes quality keep time better than Swatch?Does coca-cola taste better than Pepsi?There is no correlation between success in the market
16、place and comparative testingFor a powerful brand build a powerful perception of quality in the minds of consumersContraction, name, price Conventional wisdom: marketing a high quality product at a comparable price: QUALITY STRATEGY Deliberately start at a higher price then find what you can put in the brand to justify it Rolex made watches bigger and heavier Montblanc made pens fatterCategor
