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*,11.,*,Click to edit Master title style,*,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,CHAPTER 11:DESIGNING AND IMPLEMENTING BRANDING STRATEGIES,Kevin Lane Keller,Tuck School of Business,Dartmouth College,1,Brandingstrategy,Brandingstrategy iscritical because itisthemeans bywhich the firmcanhelpconsumers understand its products and servicesandorganizethem intheir minds.,Twoimportant strategictools:The,brand-product matrix,andthe,brand hierarchy,helptocharacterizeandformulate brandingstrategies by defining various relationshipsamong brands and products.,2,BrandingStrategy orBrand Architecture,The,brandingstrategy,fora firm reflectsthenumberandnature of commonordistinctivebrand elements applied to the differentproductssold by the firm.,Which brandelementscanbeappliedto whichproducts and the natureofnewandexistingbrand elementsto be applied tonewproducts,3,TheroleofBrand Architecture,Clarify:brand awareness,Improveconsumerunderstanding and communicate similarity and differences between individualproducts,Motivate:brandimage,Maximizetransfer ofequityto/fromthebrand toindividualproductstoimprovetrial and repeatpurchase,4,Brand-Product Matrix,Mustdefine:,Brand-Product relationships(rows),Lineandcategory extensions,Product-Brand relationships(columns),Brand portfolio,1,2,3,4,A,B,C,Products,Brands,5,Important Definitions,Productline,A grouppf productswithin aproductcategory that are closely related,Productmix(productassortment),Thesetof all product linesanditems thata particularsellermakes availableto buyers,Brand mix(brandassortment),Thesetof all brandlines thata particularsellermakes availableto buyers,6,Breadthof aBranding Strategy,Breadthof product mix,Aggregate marketfactors,Categoryfactors,Environmental factors,Depth ofproductmix,Examining the percentageofsales and profits contributed byeach item in the product line,Decidingtoincreasethelengthof the product lineby adding new variants or itemstypically expands marketcoverage and thereforemarket sharebutalso increasescosts,7,Depth ofa BrandingStrategy,Thenumber and nature ofdifferent brands marketed in the product classsoldbya firm,Referred to as,brand portfolio,The reason isto pursue different market segments,different channelsof distribution,or different geographic boundaries,Maximize market coverage andminimize brand overlap,8,Ford Brand Portfolio,9,Designing a Brand Portfolio,Basic principles:,Maximize market coverage,so thatno potentialcustomers arebeing ignored,Minimize brandoverlap,so thatbrandsarentcompeting among themselvesto gainthe same customersapproval,10,Brand Roles inthe Portfolio,Flankers,Cash cows,Low-endentry-level,High-end prestige brands,11,Brand Hierarchy,A meansof summarizing the brandingstrategy by displaying thenumberand nature ofcommonand distinctive brandelements across thefirmsproducts,revealing the explicit orderingof brand elements,A useful meansof graphically portraying afirms branding strategy,12,Brand Hierarchy Tree:Toyota,Toyota,Corporation,Toyota,(Trucks),Toyota,(SUV/vans),Lexus,Toyota,Financial,Services,Toyota,(Cars),Corolla,Prius,Avalon,Celica,ECHO,Matrix,MR2,Spyder,Camry,CE,S,LE,SE,LE,XLE,Platinum,Edition,XL,XLS,SE,SLE,13,Brand Hierarchy Levels,FamilyBrand(Buick),Corporate Brand(General Motors),Modifier:Itemor Model(,Ultra,),Individual Brand(Park Avenue),14,Corporate Brand Equity,Occurswhen relevantconstituents hold strong,favorable,and unique associations about thecorporate brand in memory,Encompasses amuch wider range of associations than a product brand,15,FamilyBrands,Brandsappliedacrossa range of product categories,An efficient means tolink common associations tomultiple butdistinct products,16,Individual Brands,Restricted toessentially one product category,There may be multipleproduct typesoffered on the basisof differentmodels,package sizes,flavors,etc.,17,Modifiers,Signalsrefinements or differencesin thebrand relatedto factors such as quality levels,attributes,functions,etc.,Plays an important organizing rolein communicating howdifferent products within acategory thatshare the samebrandname are,18,Corporate Image Dimensions,Corporate product attributes,benefits orattitudes,Quality,Innovativeness,Peopleand relationships,Customer orientation,Valuesand programs,Concernwith the environment,Socialresponsibility,Corporate credibility,Expertise,Trustworthiness,Likability,19,Brand Hierarchy Decisions,The number oflevelsof thehierarchy to use in general,How brand elements from different levels of thehierarchy arecombined,if at all,for anyoneparticular product,How anyone brand element islinked,if atall,to multiple products,Desiredbrandawareness andimage at eachlevel,20,Numberof Hierarchy Levels,Principle of simplicity,Employas fewlevelsas possible,Principle of clarity,Logic and relationship of all brandelementsemployed mustbe obvious andtransparent,21,Levelsof Awareness and Associations,Principle of relevance,Createglobalassociations that arerelevant across as many individualitemsas possi
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