Competitive Success: How Branding Adds Value

Preface xvii

Acknowledgments xxiii

Part I Understanding the Importance of Brand 1

1 Competitive Success 3

Preview 3

Historical Snapshot 4

Strategic Overview 6

B2C and B2B Companies 6

Product versus Brand 6

Product 6

Brand definitions 7

Expanded brand definitions 10

Competitive Arenas 12

Global 12

Regional 13

National 13

Local 13

Niche 14

New Brand Definition 15

Brand Value and Brand Equity Introduction 16

Tactical Overview 17

Why Branding is Important 17

Five Levels of Branding 18

Implications 20

Brand Sustainability 20

Measurement 21

Awareness 21

Brand Scorecards 23

Brand Assets 23

Brand Liabilities 23

Summary 25

Discussion Questions 26

Case Briefs 26

2 Brand Value 31

Preview 31

Brand Equity and Brand Value Revisited 32

Brand Building to Create Brand Value 33

Dimensions of Brand Value 34

Trusted Reputation 34

Touchpoints 35

Tangible Touchpoints 35

Intangible Touchpoints 35

Organizational 36

Societal Relevance 37

Individual Value 38

Corporate Social Responsibility 39

Financial 41

Understanding and Measuring Brand Value 42

Simplified Brand Valuation 42

MacInnis and Park Brand Equity Methodology 42

Formal Brand Valuation 44

BrandFinance Brand Valuation Methodology 44

Interbrand Brand Valuation Methodology 48

Differences in Brand Value Results 50

Consumer-Based Brand Equity 51

The Young & Rubicam Brand Asset® Valuator 51

MillwardBrown BrandDynamics™ Pyramid 52

Measurement 53

Customer Brand Value 53

Summary 54

Discussion Questions 55

3 Brand Portfolios and Architecture 59

Preview 59

Brand Portfolios 60

What is Brand Architecture? 61

Brand Relationship Spectrum 62

Branded House 62

Sub-Brands 63

House of Brands 64

Endorsed Brands 65

Overlap 66

Brand Hierarchy 67

Corporate/Company Brand 68

Family Brand 69

Individual Brand 70

Modifiers 71

Brand Relationship Spectrum and Brand Hierarchy 73

Similarities 73

Differences 73

Which is Better? 73

Building Brand Strength 73

Line Extensions 74

Stretching a Brand Vertically 76

Brand Extensions 78

Cobranding 79

Associations 81

Focal 82

Superordinate 82

Subordinate 82

Associations as Touchpoints 82

Measurement 83

Brand Contribution and Review Analysis 83

Impact on Brand Architecture 86

Summary 86

Discussion Questions 87

Part II New Brand Frameworks 93

4 The New Brand Building Framework: Destiny-Distinction-Culture-Experiences (DDCE) 95

Preview 95

New Brand Framework 96

Understanding the Big Picture 96

Brand Framework Elements 97

Destiny 98

Distinction 100

Culture 101

Experiences 101

Using the DDCE Framework 104

Relationship to Brand Value, Customer Equity, Purpose Brands 110

Measurement 113

Market Share 113

Relative Market Share 114

Brand Development Index 115

Category Development Index 115

Customer Lifetime Value 116

Approach 1 116

Approach 2 117

Summary 118

Discussion Questions 118

5 Brand Destiny 121

Preview 121

Destiny 122

Four Subcomponents of Successful Brand Destiny 123

Ultimate Dream 123

Aspiration 124

Vision 126

Creating Value 130

Contribution and Impact 130

Competencies and Skills 130

Values 131

Living the Values 132

Personality 135

Actions 136

Intellect 136

Emotions 137

Instincts 138

Authenticity 138

Measurement 140

Destiny Diagnostic 140

Summary 142

Discussion Questions 144

6 Brand Distinction 147

Preview 147

Brand Distinction's Role in the Firm 148

Four Subcomponents of Successful Brand Distinction 148

Heritage 149

Uniqueness 150

Precedents 150

Core Competences 151

Context 152

Customers 153

Company 153

Competitors 153

Collaborators 153

Conditions 154

Goals 157

Growth Strategies 158

Brand Distinction as Inspiration 163

Positioning 164

Measurement 166

Market Growth 167

Share of Wallet/Share of Customer 167

Market Penetration 168

Summary 170

Discussion Questions 170

7 Brand Culture 173

Preview 173

Brand Culture 174

Brand Management and Senior Management 177

Four Subcomponents of Successful Brand Cultures 179

Competencies 180

Behaviors 182

The Five Ambassadors 182

Organization 189

Decision-Making Process 192

Clear Roles and Responsibilities 192

Active Coordination 193

Problem Solving, Not Finger Pointing 193

Humanistic, Not Mechanistic 194

Social Fabric 195

Internal Branding 196

Five Es of Internal Branding 197

Educate 198

Exchange 198

Excite 199

Engage 199

Exemplify 200

Managing the Brand Throughout the Company 200

Strengths 200

Consistent Brand Image 200

Common Marketing Plans and Activities 201

Leverage Budgets Effectively 201

Challenges 201

Brand Culture Interactivity 204

Measurement 206

Recruiting 206

Sales/Profits per Employee 207

Turnover Rate 208

Summary 210

Discussion Questions 210

8 Overview of Brand Experiences 215

Preview 216

What are Experiences? 216

Four Subcomponents of Successful Brand Experiences 216

An Experience Mandate 217

Senior Management 218

Marketing 218

Product 219

Support 219

Human Resources 220

Finance 220

Sales 220

Partners 221

Front Lines 221

Experiential Marketing 221

Sense 221

Feel 222

Think 222

Act 222

Relate 222

The Importance of Being Special 223

The Importance of Creativity 224

The Importance of Engaging and Relating 228

Whole Brain Not Half Brain 230

Applicable to All? 230

Measurement 231

Snapshot Surveys 231

Objective Scoring 231

Detailed Questionnaires 231

Direct Observation 231

Summary 232

Discussion Questions 232

9 Brand Experiences: Customers and Solutions 235

Preview 235

Customers 236

Segmentation, Targeting, Positioning (STP) 237

Segmentation 238

Targeting 246

Positioning 248

Customer Cycle and Brand Growth 252

Brand Lifecycle and Marketing Changes 256

Solutions 258

Brand-Product Relationship 259

Product Taxonomy 260

Brand-Product Combinations 260

Product 261

Marketing and Product Development 262

Specialty 263

Status Quo 264

Keeping Growth Strong 264

Price 265

Cost 266

Pricing Strategies 266

Brand Pricing Criteria 268

Pricing and the Lifecycle 269

Measurement 271

Customer Measures 272

Per Customer Acquisition Costs 272

Retention Rate 273

Segment Profitability 274

Pricing Measures 275

Mark-up Price 276

Summary 277

Discussion Questions 278

10 Brand Experiences: Marketing Communications and Environment 283

Preview 284

Marketing Communications 284

Objectives 287

Modes, Implementation, Measurement 287

Traditional Marketing 288

Traditional Marketing Characteristics 289

Traditional Marketing Communications 289

Traditional Marketing Tools 289

Television Advertising 289

Radio 290

Sales Promotion 291

Print 291

Direct Marketing 292

Team and/or Event Sponsorship 292

Event/Trade Show Booth 293

Sales/Business Development 294

Public Relations 295

Hospitality/VIP Venues 295

Outdoor Advertising 295

Traditional Marketing Brand Planning 297

Traditional Marketing Costs 299

Nontraditional Marketing (NT Marketing) 300

Nontraditional Marketing Characteristics 300

Nontraditional Marketing Communications 301

Nontraditional Marketing Tools 302

Multimedia 302

Web 303

Search 304

Banners 305

Interstitial 305

Blogs 306

Podcasts 307

Social Media and Web 2.0 307

Mobile 308

Customer Relationship Management (CRM) 309

Business Intelligence/Analytics 309

Personalization 310

Email Marketing 311

Permission Marketing 311

Partnerships 312

Nontraditional Marketing Brand Planning 312

Nontraditional Marketing Costs 313

Nontraditional Marketing Growth 314

Mobile 315

Blogs 317

Podcasts 317

Social Media 317

IMC Trends 318

Impact on Consumer Decision-Making 320

Communication Effectiveness 322

Creative Execution 323

Creative Challenges: Getting the Point Across 323

Message 326

Message Guidelines 327

Imagery 328

Brand Lifecycle 331

Environment 332

Implications for Brands 332

Environment Factors in Creating Successful Brand Experiences 332

Hire Right People 333

Innovation and Creativity 334

Channel Design 335

Authenticity and Integrity 341

Measurement 343

Marketing Communications Measures 344

Ad-to-Sales Ratio 344

Response Rate 345

Conversion Rate 345

Share of Voice 346

Cost per Thousand 347

Cost per Click 347

Cost per Order 348

Environment Measures 348

Experiential Marketing 349

Summary 350

Discussion Questions 351

Case Brief 352

Part III Brand Leadership 361

11 Brand Leadership: Senior Management, Team, Planning, Mapping 363

Preview 363

Senior Management 364

Team 365

Team Capabilities 365

Business/Brand Strategy (and Likely Team Leader) 365

Category Management 365

Product Management 366

Creative Management 366

Marketing Communications 367

Marketing Research 367

Business Development 367

Team Needs 367

Strategic Insight 367

Brand "Ownership" (Who is Responsible/Accountable?) 367

Customer Proximity 368

Tactical Management/Execution 368

Expertise/Specialists 369

Alignment and Collaboration 369

Measurement/Review/Adjustment 369

Planning 369

Principles 369

Brand Planning Framework 370

Brand Plan 371

Overview 371

Brand Analysis 372

Financial Analysis 374

Mapping 374

Brand Touchpoints Map 374

Customer Experience Journey Map 377

Measurement 382

Summary 382

Discussion Questions 382

Index 385