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Advanced Marketing (Subject) / . (Lesson)

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• Brands are importnt They represent key assets of a brand They need to be managed properly to maximize their value The digital landscape has an impact on brand management  Brands have high financial values  Apple Microsoft McDonalds Disney hp Google GE Mercedes
• What is a brand? - It is the added value given to a product -> the brand will influence the buyer  - a brand is more than a product Product: Attributes - Quality Symbols - Other associations - User imagery - Country of origin - Emotional benefits - Brand personality - it is a set of tangible and intangible benefits that differentiate the brand versus all others - the power of the brand resides in the mind of consumers
• What can be branded? Consumer goods Geographic location On-line products People and organizations Causes Retailors and distributors Perishable products Sports,arts and entertainment Services B to B products High tech products
• Firms using brand management Consumer goods MARS Services EXKI Industrial products ArcelorMittal Industrial components Intel
• Advantages of brands 1. Firm Differentiation Consumer loyality Possibility of premium price Financial capitalization Legal protection -> Creation of a barrier to entry 2. Consumer Identification Origin, traceable Guarantee Constant quality Value of sign/part of a community
• Difficulties of branding in the digital age High cost of brand creation and brand support Increased power of consumers Less controllable brand image Fragmentation of media/internet impact Aggressive private label competition
• All New challenges of brand building in the digital age Need to manage brands in social networks Need to create communities of fans (brand activism) Need to innovate continuously Need to build the brand at contact points (experiential marketing) Need to be ethical Needto answer to the individualized needs of consumers
• Challenges of brand building in the digital age Need to manage brands in social networks brand needs to exist in social networks, brand needs to be activated properly (conversation, fun) it can not be too "advertising like" it needs to be managed by specialists Need to create communities of fans (brand activism) community is much more than a group (common goals and ideals) in a community, some people are passionate, some are engaged, others are followers communities are ennetial to make the brand alive  no fans = no brand Need to innovate continuously need to champion innovation for a strong brand, you need strong product innovation is necessary in any sectors brand: not communication management Need to build the brand at contact points (experiential marketing) too much media fregmentation all brands must think of their activation plan: acting with communities, at the point of consumtion, with prescribers, with virtual communities use of experiential marketing Need to be ethical brand should demonstrate good values consumers on the net are attentive to these values pension funds are interestes Need to answer to the individualized needs of consumers mass customization is a new way to attract consumers it is now possible thanks to new technology people can get products that fulfill perfectly theirs needs
• New concepts in brand management Consumer's engagement Experiential marketing 2 key concepts: - the company should: engage consumers and offer an experience in a coherent and integrated strategy including off-line and on-line marketing tools 1. Build a consumer experience: - Before, the marketer had to develop a product - Now, he should deliver a positive experience thourhg all touching points of consumers 2. Customer engagement and experience are key drivers - You need to give to customers reasons to choose to build a relationship with the brand - Every touchpoint is important - Marketing should be granted greater status in the firm - Consumer want the most pleasant experience - If consumer is satisfied, he will be more brand loyal and recommend - if he is not happy, this might be amplified by the net
• Branding Strategies Brand extension Brand architecture Brand portfolio management Brand name change Brand revitalisation
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• Branding Strategies Brand extension Brand architecture Brand portfolio management Brand name change Brand revitalisation
• Brand extension definition + examples Transfer the name and the image of a brand to gain a competitive advantage in a new category - e.g. ho camera and laptop Examples: Used in the past in luxury and in industrial sectors - LV Tasche + Uhr, hp camera + laptop Systematically used by Janapese companies - Yamaha Klavier + Motoroller
• Pro and Con's of Brand extension Advantages: Avoid the costs of launching a brand Lower brand supportes costs, especially in advertising Use of excisting awareness Use of existing image Revitalise the brand Better accepted with the trade Enhance the parent brand image Disadvantages: Dillution of the mother brand image (no fit between both product categories) Innovation is hidden by the excisting brand name Destruction of the existing brand capital Cannibalisation of the mother brand
• Different classifications of brand extensions 1. Brand or line extensions Line extensions: Launch of products under the same name in the same category: Ariel Powder, liquid, compact etc Brand extensions: Launch of products under the same name in other category: Bic razor, Bic Pen, Bic lighter 2. Horizontal and vertical extensions# Horizontal: We keep the same price bracket Vertical: Upward or downward extensions  Extensions to the low-end of the market: Mercedes A Extension to the high-end of the market: VW Phaeton Extension to both sides: Accor Group: Formule 1, Ibis, Novotel, Sofitel) 3. continuous and discontinuous extensions Continuous brand extension: A sport brand can cover other sports (Adidas, Nike) A brand that masters optics can extend into photocopying (Canon, Minolta) Discontinuous brand extension: Real diversification (Yamaha and motorbikes)
• Brand extension process (JNK) What are brand equities? What is the intrinsic attractiveness of likely extension category Can the brand assets be tranfered? What is the relevance of these assets? What is the ability of the company to deliver the expected benefits? What is the perceived superiority of the extension to existing competitors? What is the ability of the firm to sustain competition in the extension? What are the feedback effects on the parent brand? 
• Reasons for Name changes and brand transfer More than a name change One of the most risky strategy Risk depends on the nature of the name (umbrella brand, product brand) Reasons of brand name transfers: Many brands in M&A Necessity to build big international brands Stop of activites Merger Bad names Lost court case Problem with some names 
• Brand name transfers Advantages: More modern image when oldfashioned More international Less linked to a certain activity Eliminate mistakes Difficulties Name used in every language Not protected Enormous costs (creation 15000 to 30000 euros + legal protection + awareness creation) Example: France Telecome -> orange in 2012 = 200 million euros
• Different strategies when it comes to brand name changes drastic change without announcement drastic change with annoucement co-branding during a certain period of time Key success factors of name changes: Motivation of all departments of the company Seen as an opportunity, not a constraint Prepared well in advance All consumers should be informed Have the financial means Make is easy for the distribution Necessity to be rapid Inform clearly the consumers

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