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CHAPTER11:

DESIGNINGANDIMPLEMENTING

BRANDINGSTRATEGIESKevinLaneKellerTuckSchoolofBusinessDartmouthCollege1CHAPTER11:

DESIGNINGANDIMPBrandingstrategy

Brandingstrategyiscriticalbecauseitisthemeansbywhichthefirmcanhelpconsumersunderstanditsproductsandservicesandorganizethemintheirminds.Twoimportantstrategictools:Thebrand-productmatrixandthebrandhierarchyhelptocharacterizeandformulatebrandingstrategiesbydefiningvariousrelationshipsamongbrandsandproducts.2BrandingstrategyBrandingstrBrandingStrategyorBrandArchitectureThebrandingstrategyforafirmreflectsthenumberandnatureofcommonordistinctivebrandelementsappliedtothedifferentproductssoldbythefirm.Whichbrandelementscanbeappliedtowhichproductsandthenatureofnewandexistingbrandelementstobeappliedtonewproducts3BrandingStrategyorBrandArcTheroleofBrandArchitectureClarify:brandawarenessImproveconsumerunderstandingandcommunicatesimilarityanddifferencesbetweenindividualproductsMotivate:brandimageMaximizetransferofequityto/fromthebrandtoindividualproductstoimprovetrialandrepeatpurchase4TheroleofBrandArchitectureBrand-ProductMatrixMustdefine:Brand-Productrelationships(rows)LineandcategoryextensionsProduct-Brandrelationships(columns)Brandportfolio1234ABCProductsBrands5Brand-ProductMatrixMustdefinImportantDefinitionsProductlineAgrouppfproductswithinaproductcategorythatarecloselyrelatedProductmix(productassortment)ThesetofallproductlinesanditemsthataparticularsellermakesavailabletobuyersBrandmix(brandassortment)Thesetofallbrandlinesthataparticularsellermakesavailabletobuyers6ImportantDefinitionsProductlBreadthofaBrandingStrategyBreadthofproductmixAggregatemarketfactorsCategoryfactorsEnvironmentalfactorsDepthofproductmixExaminingthepercentageofsalesandprofitscontributedbyeachitemintheproductlineDecidingtoincreasethelengthoftheproductlinebyaddingnewvariantsoritemstypicallyexpandsmarketcoverageandthereforemarketsharebutalsoincreasescosts7BreadthofaBrandingStrategyDepthofaBrandingStrategyThenumberandnatureofdifferentbrandsmarketedintheproductclasssoldbyafirmReferredtoasbrandportfolioThereasonistopursuedifferentmarketsegments,differentchannelsofdistribution,ordifferentgeographicboundariesMaximizemarketcoverageandminimizebrandoverlap8DepthofaBrandingStrategyThFordBrandPortfolio9FordBrandPortfolio9DesigningaBrandPortfolio

Basicprinciples:MaximizemarketcoveragesothatnopotentialcustomersarebeingignoredMinimizebrandoverlapsothatbrandsaren’tcompetingamongthemselvestogainthesamecustomer’sapproval10DesigningaBrandPortfolioBaBrandRolesinthePortfolioFlankersCashcowsLow-endentry-levelHigh-endprestigebrands11BrandRolesinthePortfolioFlBrandHierarchyAmeansofsummarizingthebrandingstrategybydisplayingthenumberandnatureofcommonanddistinctivebrandelementsacrossthefirm’sproducts,revealingtheexplicitorderingofbrandelementsAusefulmeansofgraphicallyportrayingafirm’sbrandingstrategy12BrandHierarchyAmeansofsummBrandHierarchyTree:ToyotaToyotaCorporationToyota(Trucks)Toyota(SUV/vans)LexusToyotaFinancialServicesToyota(Cars)CorollaPriusAvalonCelicaECHOMatrixMR2SpyderCamryCESLESELEXLEPlatinumEditionXLXLSSESLE13BrandHierarchyTree:ToyotaToBrandHierarchyLevelsFamilyBrand(Buick)CorporateBrand(GeneralMotors)Modifier:ItemorModel(Ultra)IndividualBrand(ParkAvenue)14BrandHierarchyLevelsFamilyBCorporateBrandEquityOccurswhenrelevantconstituentsholdstrong,favorable,anduniqueassociationsaboutthecorporatebrandinmemoryEncompassesamuchwiderrangeofassociationsthanaproductbrand15CorporateBrandEquityOccurswFamilyBrandsBrandsappliedacrossarangeofproductcategoriesAnefficientmeanstolinkcommonassociationstomultiplebutdistinctproducts16FamilyBrandsBrandsappliedacIndividualBrandsRestrictedtoessentiallyoneproductcategoryTheremaybemultipleproducttypesofferedonthebasisofdifferentmodels,packagesizes,flavors,etc.17IndividualBrandsRestrictedtoModifiersSignalsrefinementsordifferencesinthebrandrelatedtofactorssuchasqualitylevels,attributes,functions,etc.Playsanimportantorganizingroleincommunicatinghowdifferentproductswithinacategorythatsharethesamebrandnameare18ModifiersSignalsrefinementsoCorporateImageDimensionsCorporateproductattributes,benefitsorattitudesQualityInnovativenessPeopleandrelationshipsCustomerorientationValuesandprogramsConcernwiththeenvironmentSocialresponsibilityCorporatecredibilityExpertiseTrustworthinessLikability19CorporateImageDimensionsCorpBrandHierarchyDecisionsThenumberoflevelsofthehierarchytouseingeneralHowbrandelementsfromdifferentlevelsofthehierarchyarecombined,ifatall,foranyoneparticularproductHowanyonebrandelementislinked,ifatall,tomultipleproductsDesiredbrandawarenessandimageateachlevel20BrandHierarchyDecisionsThenNumberofHierarchyLevelsPrincipleofsimplicityEmployasfewlevelsaspossiblePrincipleofclarityLogicandrelationshipofallbrandelementsemployedmustbeobviousandtransparent21NumberofHierarchyLevelsPrinLevelsofAwarenessandAssociationsPrincipleofrelevanceCreateglobalassociationsthatarerelevantacrossasmanyindividualitemsaspossiblePrincipleofdifferentiationDifferentiateindividualitemsandbrands22LevelsofAwarenessandAssociLinkingBrandsatDifferentLevelsPrincipleofprominenceTherelativeprominenceofbrandelementsaffectsperceptionsofproductdistanceandthetypeofimagecreatedfornewproducts23LinkingBrandsatDifferentLeLinkingBrandsAcrossProductsPrincipleofcommonalityThemorecommonelementssharedbyproducts,thestrongerthelinkages24LinkingBrandsAcrossProductsBrandArchitectureGuidelines

AdoptastrongcustomerfocusAvoidover-brandingEstablishrulesandconventionsandbedisciplinedCreatebroad,robustbrandplatformsSelectivelyemploysub-brandsasmeansofcomplementingandstrengtheningbrandsSelectivelyextendbrandstoestablishnewbrandequityandenhanceexistingbrandequity25BrandArchitectureGuidelinesCorporateBrandCampaign

Differentobjectivesarepossible:BuildawarenessofthecompanyandthenatureofitsbusinessCreatefavorableattitudesandperceptionsofcompanycredibilityLinkbeliefsthatcanbeleveragedbyproduct-specificmarketingMakeafavorableimpressiononthefinancialcommunityMotivatepresentemployeesandattractbetterrecruitsInfluencepublicopiniononissues26CorporateBrandCampaignDiffeUsingCauseMarketingtoBuildBrandEquityTheprocessof

formulatingandimplementingmarketing

activitiesthatarecharacterizedbyanofferfromthefirmtocontributeaspecifiedamounttoadesignatedcausewhencustomersengageinrevenue-providingexchangesthatsatisfyorganizationalandindividualobjectives27UsingCauseMarketingtoBuildAdvantagesofCauseMarketingBuildingbrandawarenessEnhancingbrandimageEstablishingbrandcredibilityEvokingbrandfeelingsCreatingasenseofbrandcommunityElicitingbrandengagement28AdvantagesofCauseMarketingBGreenMarketingAspecialcaseofcausemarketingthatisparticularlyconcernedwiththeenvironmentExplosionofenvironmentallyfriendlyproductsandmarketingprograms29GreenMarketingAspecialcaseCrisisMarketingGuidelinesThetwokeystoeffectivelymanagingacrisisarethatthefirm’sresponseshouldbeswiftandthatitshouldbesincere.30CrisisMarketingGuidelinesTheCHAPTER11:

DESIGNINGANDIMPLEMENTING

BRANDINGSTRATEGIESKevinLaneKellerTuckSchoolofBusinessDartmouthCollege31CHAPTER11:

DESIGNINGANDIMPBrandingstrategy

Brandingstrategyiscriticalbecauseitisthemeansbywhichthefirmcanhelpconsumersunderstanditsproductsandservicesandorganizethemintheirminds.Twoimportantstrategictools:Thebrand-productmatrixandthebrandhierarchyhelptocharacterizeandformulatebrandingstrategiesbydefiningvariousrelationshipsamongbrandsandproducts.32BrandingstrategyBrandingstrBrandingStrategyorBrandArchitectureThebrandingstrategyforafirmreflectsthenumberandnatureofcommonordistinctivebrandelementsappliedtothedifferentproductssoldbythefirm.Whichbrandelementscanbeappliedtowhichproductsandthenatureofnewandexistingbrandelementstobeappliedtonewproducts33BrandingStrategyorBrandArcTheroleofBrandArchitectureClarify:brandawarenessImproveconsumerunderstandingandcommunicatesimilarityanddifferencesbetweenindividualproductsMotivate:brandimageMaximizetransferofequityto/fromthebrandtoindividualproductstoimprovetrialandrepeatpurchase34TheroleofBrandArchitectureBrand-ProductMatrixMustdefine:Brand-Productrelationships(rows)LineandcategoryextensionsProduct-Brandrelationships(columns)Brandportfolio1234ABCProductsBrands35Brand-ProductMatrixMustdefinImportantDefinitionsProductlineAgrouppfproductswithinaproductcategorythatarecloselyrelatedProductmix(productassortment)ThesetofallproductlinesanditemsthataparticularsellermakesavailabletobuyersBrandmix(brandassortment)Thesetofallbrandlinesthataparticularsellermakesavailabletobuyers36ImportantDefinitionsProductlBreadthofaBrandingStrategyBreadthofproductmixAggregatemarketfactorsCategoryfactorsEnvironmentalfactorsDepthofproductmixExaminingthepercentageofsalesandprofitscontributedbyeachitemintheproductlineDecidingtoincreasethelengthoftheproductlinebyaddingnewvariantsoritemstypicallyexpandsmarketcoverageandthereforemarketsharebutalsoincreasescosts37BreadthofaBrandingStrategyDepthofaBrandingStrategyThenumberandnatureofdifferentbrandsmarketedintheproductclasssoldbyafirmReferredtoasbrandportfolioThereasonistopursuedifferentmarketsegments,differentchannelsofdistribution,ordifferentgeographicboundariesMaximizemarketcoverageandminimizebrandoverlap38DepthofaBrandingStrategyThFordBrandPortfolio39FordBrandPortfolio9DesigningaBrandPortfolio

Basicprinciples:MaximizemarketcoveragesothatnopotentialcustomersarebeingignoredMinimizebrandoverlapsothatbrandsaren’tcompetingamongthemselvestogainthesamecustomer’sapproval40DesigningaBrandPortfolioBaBrandRolesinthePortfolioFlankersCashcowsLow-endentry-levelHigh-endprestigebrands41BrandRolesinthePortfolioFlBrandHierarchyAmeansofsummarizingthebrandingstrategybydisplayingthenumberandnatureofcommonanddistinctivebrandelementsacrossthefirm’sproducts,revealingtheexplicitorderingofbrandelementsAusefulmeansofgraphicallyportrayingafirm’sbrandingstrategy42BrandHierarchyAmeansofsummBrandHierarchyTree:ToyotaToyotaCorporationToyota(Trucks)Toyota(SUV/vans)LexusToyotaFinancialServicesToyota(Cars)CorollaPriusAvalonCelicaECHOMatrixMR2SpyderCamryCESLESELEXLEPlatinumEditionXLXLSSESLE43BrandHierarchyTree:ToyotaToBrandHierarchyLevelsFamilyBrand(Buick)CorporateBrand(GeneralMotors)Modifier:ItemorModel(Ultra)IndividualBrand(ParkAvenue)44BrandHierarchyLevelsFamilyBCorporateBrandEquityOccurswhenrelevantconstituentsholdstrong,favorable,anduniqueassociationsaboutthecorporatebrandinmemoryEncompassesamuchwiderrangeofassociationsthanaproductbrand45CorporateBrandEquityOccurswFamilyBrandsBrandsappliedacrossarangeofproductcategoriesAnefficientmeanstolinkcommonassociationstomultiplebutdistinctproducts46FamilyBrandsBrandsappliedacIndividualBrandsRestrictedtoessentiallyoneproductcategoryTheremaybemultipleproducttypesofferedonthebasisofdifferentmodels,packagesizes,flavors,etc.47IndividualBrandsRestrictedtoModifiersSignalsrefinementsordifferencesinthebrandrelatedtofactorssuchasqualitylevels,attributes,functions,etc.Playsanimportantorganizingroleincommunicatinghowdifferentproductswithinacategorythatsharethesamebrandnameare48ModifiersSignalsrefinementsoCorporateImageDimensionsCorporateproductattributes,benefitsorattitudesQualityInnovativenessPeopleandrelationshipsCustomerorientationValuesandprogramsConcernwiththeenvironmentSocialresponsibilityCorporatecredibilityExpertiseTrustworthinessLikability49CorporateImageDimensionsCorpBrandHierarchyDecisionsThenumberoflevelsofthehierarchytouseingeneralHowbrandelementsfromdifferentlevelsofthehierarchyarecombined,ifatall,foranyoneparticularproductHowanyonebrandelementislinked,ifatall,tomultipleproductsDesiredbrandawarenessandimageateachlevel50BrandHierarchyDecisionsThenNumberofHierarchyLevelsPrincipleofsimplicityEmployasfewlevelsaspossiblePrincipleofclarityLogicandrelationshipofallbrandelementsemployedmustbeobviousandtransparent51NumberofHierarchyLevelsPrinLevelsofAwarenessandAssociationsPrincipleofrelevanceCreateglobalassociationsthatarerelevantacrossasmanyindividualitemsaspossiblePrincipleofdifferentiationDifferentiateindividualitemsandbrands52LevelsofAwarenessandAssociLinkingBrandsatDifferentLevelsPrincipleofprominenceTherelativeprominenceofbrandelementsaffectsperceptionsofproductdistanceandthetypeofimagecreatedfornewproducts53LinkingBrandsatDifferentLeLinkingBrandsAcrossProductsPrincipleofcommonalityThemorecommonelementssharedbyproducts,thestrongerthelinkages54LinkingBrandsAcrossProductsBrandArchitectureGuidelines

AdoptastrongcustomerfocusAvoidover-brandingEstablishrulesandconventionsandbedisciplinedCreatebroad,robustbrandplatfor

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