Brand Development Process
Brand Development Process
Brand Development Process
Presented by :
RAHIM JABBAR
POINTS OF DISCUSSION
Session -1 & 2 (09:15 to 10:30): 75 minutes
Understanding Consumers
Who are they? Major models of thinking about consumers Factors Determining Consumer Values Behavior : Over and Covert Behavior Covert Behavior: Values, Norms and Beliefs Determinants of Behavior Cultural Background of Behavior Hierarchy of Human Needs Fishbeins Theory of Consumer Choice Process
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Key Points
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Apply insights from knowledge on brand development to develop messages and stories around the brand
RETURN On INVESTMENT
INVEST
The Firms
TARGET MARKET
THE RETURNS
VALUES
TO THE
CONSUMERS/ CUSTOMERS
SATISFACTION
TRANSACTION
THE FIRM THE
OFFERING S
THE MONEY
INCOME/ EARNING
1. Marketing is a major element of the core business processes of creating value added through inducing and stimulating transactions/exchanges 2. Business transaction can only be realized through offering product/service (=the offer) as a means of exchanging values between the consumers/customers/clients and the firms/companies. 3. Consumers/customers/clients will consider any offer (be it product or service) as bringing values to them if the offer helps them achieve their goals , satisfy their wants and fulfill their needs
4. Values, therefore can be seen as special meanings attached to a particular consumption occasion of using or consuming a product or the event of receiving a particular service. (This is a pragmatic/utilitarian use of the word value) 5. At this point, marketers have two options: go with the product as a commodity wrap the values offered by the product through branding 6. Branding is a strategic option for marketing a product or service. Branding is a means of wrapping the values surrounding the product or service.
7. The task of marketing function is to find and create consumers/ customers/clients by transforming individual persons or groups of people from being lay people in the streets into obtaining some added values at consuming the offers/using the product or becoming recipients of the services ( to become consumers/ customers/clients). 8. After this transformation, the task is to manage the relationship (Customer/Consumer Relationship Management). 9. Managerially, the marketing process consists of development, creation, and activation of the marketing mix for the offer (product or service) destined for a specific target in mind.
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10. These days rarely do we find a single product for a single market (a single product-market category). The overwhelming majority of categories comprise of multi-products targeted at a variety of different groups of consumers/customers/clients. (Each group is conveniently called a segment of the market). 11. Due to the above reasons, the development of any offer (be it product or service) should go through the process of S.T.P. (Segmentation, Targeting and Positioning)
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12. Segmentation is the way you partition the market based on certain approach. Segmenting the market would facilitate in choosing the specific part of the market you want to target. 13. Targeting is the process matching your product/offer to specific part of the market. 14. Positioning is the way you differentiate your product/offer from same product category targeted to the same segment.
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Brand Concept:
The encapsulation of values that comprises the complex characters (i.e. attributes and benefits) that constitute the brand.
CONSUMERS:
Need structure Values & benefits Demand dynamics
Consumer Insights
DIFFERENTIATE COMPETITIVELY!!!
(Envisaged) COMPANYS BRAND :
Key differentiated mix of values that are competitive Salient attributes required
COST COMPARISON
Source: Adapted from Kenichi Ohmae , The Mind of the Strategist (1982)
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PRODUCT
Physical
IDEAS
EVENT S ENTITIES
Process
Effects
A T T R I B U T E S
GOALS
To be achieved
Psychological
NEEDS
To be fulfilled
Physiological / Biological
WANTS
To be satisfied
BENEFITS
Consumer Insights
BRAND
COPYRIGHT Rahim Jabbar 2002
WRAPPE R
& CAR R IE R
OF
VALUES : SPECIAL MEANINGS ATTACHED TO SPECIFIC USAGE/CONSUMPTION OCCASIONS/EVENTS BY CONSUMERS/CUSTOMERS/ CLIENTS WHEN: Their goals are achieved Their needs are fulfilled Their wants are satisfied
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BRAND CONCEPT: Developing a brand should start from core values that uniquely define the essence of your offer (product or service). The consumers/customers/clients (market segment) will happily buy and consume product or brand that is believed to help them achieve their goals, fulfill their needs and satisfy their wants. In other words, they will surely consider anything that brings values to them.(Beauty is in the eyes of the beholder).
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BRAND DEVELOPMENT PROCESS: CONSUMER VALUES BRAND CONCEPT BRAND CONCEPT (2): For example, people use furniture to give comfort and convenience to their life (i.e. not having to always stand neither sit nor lay their body on the floor). Furniture is the provider of values to the users, through giving the benefits of comfort (physiological need) and convenience (psychological needs). The maker arranges the properties of certain materials and design that give the attributes which deliver the required benefits. (KALAU DUDUK LUPA BERDIRI WHEN SITTING ON THIS, YOU WILL FORGET TO STAND UP) )
COPYRIGHT Rahim Jabbar 2002
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UNDERSTANDING CONSUMERS
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UNDERSTANDING CONSUMERS:
WHO ARE THEY?
HUMAN BEINGS
CONSUMERS
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UNDERSTANDING CONSUMERS:
MAJOR MODELS OF THINKING ABOUT CONSUMERS
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UNDERSTANDING CONSUMERS:
MAJOR MODELS OF THINKING ABOUT CONSUMERS (2)
UNDERSTANDING CONSUMERS:
MAJOR MODELS OF THINKING ABOUT CONSUMERS (3)
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Utilitarian Needs
Hedonic Needs
Pleasure Needs
Aesthetic Needs
NEEDS, WANTS, GOALS External Influences Culture Sub-Culture Demographic Social Status Reference Group Family
FULFILLMENT
VALUES
Benefits
Attributes
Product/ Services
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Values are general central principles concerning the patterns of behavior within a particular culture or society which its members hold in high regards. Values are related to being good or bad. Around those values, individual and social goals can be integrated. Values are transmitted and adopted through socialization process.
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Norms are standard patterns of behavior that are considered normal within a particular culture or society. Norms are related to right or wrong. Norms and values are transmitted and adopted through socialization process.
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Beliefs are emotional acceptance of some proposition, statement, or doctrines. Beliefs are learned expectations about the values of people, events and objects in the environment and the roles they play with respect to ones behavior.
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Actions
Conative component (disposition for action)
Evaluative component (positive or negative)
Attitudes
Cognitive component (Consciously held beliefs)
The Self
Beliefs
Emotional acceptance Of values & norms
Emotion
Instigating stimuli
Physiological correlates
Cognitive appraisal
Motivational properties
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Attitudes Beliefs
CULTURE
BEHAVIOR
Socialization process
Internalization process
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UNDERSTANDING CONSUMERS:
HIERARCHY OF HUMAN NEEDS (MASLOW PYRAMID)
Self-actualization
Growth, Accomplishment Personal Development Self Respect, Status Achievement Recognition Belonging , Acceptance,
Esteem
Social needs
Physiological needs
Hunger
Thirst
Sleep
Sex
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UNDERSTANDING CONSUMERS:
FISHBEINS THEORY OF CONSUMER CHOICE
Drinking COCA COLA gives me the feeling of pride/belonging to my peers/ gives me a tasty thirst quenching
Peer
Family
Enabling Condition
Authority
Subjective Norm
Personality Tendency
Motivation to Comply
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BRAND
Requirements Provided by the brand
SOCIAL APPRECIATION
BRAND IMAGE
Social needs CONVENIENCE Safety & security SAFETY/ CONSISTENCY PERFORMANCE DESIGN QUALITY PRODUCT QUALITY FUNCTIONAL PERFORMANCE
Physiological needs
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THEIR BRAND
Layers of the Brand
Rational layer
Identity/Character
Personality
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Symbols
Meanings
BRAND
Touch-points
VALUES
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VALUES
sought by the target market
In the forms of
BENEFITS
required
ATTRIBUTES
that bring BENEFITS
That support
PROPERTIES/ CHARACTERISTICS
that represent VALUES
SERVICES
IDEAS
EVENTS
ANATOMY OF THE BRAND: A PARTICULAR ARRANGEMENT OF BRAND COMPONENTS TO PRODUCE A UNIQUE MIX OF VALUES
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3)
Creative selection & Development: (the way, the feel, the mood, etc)
2)
Symbolic elements **) to communicate the meanings (e.g. something exclusive, only for a happy few)
4) 1)
Cultural meanings*) available in the society (e.g. Respectability is a valid goal in life) Product, Packaging & Campaign communication (color coding, verbal/visual cues, etc) at a Price
6)
Secondary meaning transfer****) The product become the locus of selected meanings, and the consumers use the product to create notions of self and the world
Primary meaning transfer***): (e.g. BMW is the status symbol a successful Yuppie)
5)
***)Transfer of meanings from to total stimuli to the product/brand through repeated associative process ****) Transfer of meanings from the product to the users/consumers.
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UNDERSTANDING COMMUNICATION
The Major Principles of Communications: 1. Communication is a symbolic process Symbols are arbitrary People give meanings to symbols convention Symbols will vary and may change 2. Perception is the key to communication. 3. Communication has got content and relationship dimension. The communication content is aimed to help shape certain perception. 4. Communication takes place at different levels of intensity 5. Communication takes place within space and time contexts 6. Communication involves prediction and expectation of the communication participants. The ultimate aim of communication is to help achieve communicators objective of informing and influencing the other (s).
Sources: Collected from a number of textbooks on Communications
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UNDERSTANDING COMMUNICATION
The Major Principles of Communications: 7. Communication is systemic in its nature: Internal system Frame of reference Field of experience Cognitive structure Thinking pattern Internal moods External system Choice of words Tones etc 8. Similarity of social and cultural background will facilitate communication 9. Communication is going through a series of internal and external processes; it is dynamic and transactional.
Sources: Collected from a number of textbooks on Communications
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DEVELOPING MESSAGES FOR THE BRAND WHAT (THE MESSAGES) WHOSE (COMMUNICATION TARGET)
MINDS AND HEARTS
TO BE PUT INTO
FOR THEM
GOALS
VALUES
OFFERED TO
TARGET CONSUMERS
WHO REQUIRE
TO SATISFY
WANTS
DEVELOPING MESSAGES FOR THE BRAND BASIC QUESTIONS IN DEVELOPING BRAND MESSAGES (WHAT TO SAY) COPY STRATEGY WHO ARE YOU? (YOUR COMPANY)? WHAT DO YOU STAND FOR? WHAT DOES YOUR BRAND STAND FOR? WHOM ARE YOU SPEAKING TO? WHAT DO YOU WANT TO HELP THEM TO UNDERSTAND? WHAT DO YOU MANT THEM TO BELIEVE IN? WHAT DO YOU WANT THEM TO DO?
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DEVELOPING MESSAGES FOR THE BRAND COPY STRATEGY CREATIVE STRATEGY ADVERTISING ATTEMPTS
WHAT
BENEFITS
ADVANTAGES
VALUES
COPY STRATEGY CREATIVE STRATEGY
TARGET CONSUMERS
CONVERSION INTO
DEVELOPING MESSAGES FOR THE BRAND Proposed Selling Idea/Unique Selling Proposition It is a clear and simple statement that tells the target consumers why your product is different to make it stand out of the crowd. In a crowded market place you must be either BETTER or CHEAPER (or GIVING MORE VALUE) than your competitors. An example: OLYMPUS Camera: All the features of a professional camera without the fuss.
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DEVELOPING MESSAGES FOR THE BRAND Proposed Selling Idea/Unique Selling Proposition Find, develop and ascertain that your product/service has something unique to offer. What can you offer that is different? only one: being the only one of its kind better than the others: superior to all others unusual: different from others in a way that makes something worthy of note limited to somebody or something: limited to a specific place, situation, group, person, or thing
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DEVELOPING MESSAGES FOR THE BRAND Proposed Selling Idea/Unique Selling Proposition Before developing a USP, it helps to know: The features of the product/service How and why the customers uses the product services Features of competitive products
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DEVELOPING MESSAGES FOR THE BRAND: Proposed Selling Idea/Unique Selling Proposition (2)
Steps to develop a USP List all main features of the product. (Features describe what the product/ service does). Features can be: quality, type and level of service, price, functional or technical characteristics. Convert each feature into benefit. (A benefit describes what customer need it fulfils). Customer buy benefit, therefore obtaining value from that. An example: Feature of an industrial machine : reliability, which means available for more hours of the working day ( benefit for the buyer). Rank the benefits according to their relative importance to the customer Group the benefits into standard ones, i.e. available to all competitive products or the different and special (unique) to your product/service) If no anything special or different, you have to develop at least one unique benefit ( it is all in the mind/perception)
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Consumer Psychology
SELECTED POSITIONING
COPY STRATEGY
Should be CORRECT
Should be CLEAR
Should be COMPETITIVE
Should be CREDIBLE
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Copyright Rahim Jabbar/1999
KEY POINTS
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KEY POINTS
THE STARTING POINT Developing a brand starts from deep consumer insights. Consumer insights pertain to penetrating understanding of the underlying dynamics of consumer perceptions, attitudes and behavior. Deep consumer insights will result in workable solutions to consumers problems/challenges (related to the product/service in hands) through configurational learning about consumer values. Configurational learning is gestalt learning. Gestalt = a set regarded as a whole: a set of elements such as a persons thoughts and experiences considered as a whole and regarded as amounting to more than the sum of its parts.
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References (1)
Capon, Noel and James M. Hulbert, Marketing Management in the 21st Century, Prentice Hall, 2001 Davidson, Hugh, Even More Offensive Marketing, Penguin Books, 1997 Hiam, Alexander and Charles D. Schewe, The Portable MBA in Marketing, John Wiley & Sons, Inc., 1992 Jabbar, Rahim, Approaches towards Segmentation, Targeting & Positioning, 2002, (unpublished) Business Week, 2001, The 100 Most Valuable Global Brands WIPO, Intellectual Property, A Power Tool for Economic Growth, 2002, internet edition, accessed through: http://www.wipo/int/about_wipo/gen/wipo.dgo/wipo_pub_888/ html
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References (2) Kennedy,Carol, Managing with the Gurus, Top level Guidance on 20 management techniques, Century Business Book, 1996 Cowley, Don, Ed. Understanding Brands, Kogan Page 1991 Aaker, David A. Managing Brand Equity The Free Press,1991 Temporal, Paul, Branding in Asia, 2001 Knapp, Duane E, The Brand Mindset, The Mc-Graw Hill Companies Inc., 2000 Upshaw, Lynn B., Building Brand Identity, John Wiley & Sons Inc., 1995. Arnold, David, The Handbook of Brand Management, Century Business, 1992. Woodruff, Robert & Gardial, Sarah F., Understanding Customer Values & Satisfaction, Blackwell Business, 2000.
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