Title: Brand Equity: The Role of Brand Identity Based IMC
1Brand Equity The Role of Brand Identity Based IMC
- A Presentation to Campus Communicators of Texas
Tech University and TTU Health Science Center - August 24, 2006
- Bob McDonald
- Assistant Professor of Marketing
- Rawls College of Business
2The Goal
- Brand Equity
- Customer-Based (Keller 1993)
- Strong, highly favorable brand associations
- Brand Awareness Brand Image
- Image is in the eye of the beholder (i.e., the
customer owns the image).
3Brand Equity Strategy I
- A set of processes that include acquiring,
developing, nurturing, and leveraging an
effectiveness-enhancing, high-equity brand or
portfolio of brands. - (Madhavaram, Badrinarayanan, and McDonald 2005)
4Brand Equity Strategy II
- Why have a brand equity strategy?
- To achieve competitive advantage
- This in turn leads to superior financial
performance. (Hunt forthcoming)
5Marketing Communications
- Voice of the brand.
- Means by which companies establish dialogue with
customers. - Keller 2001
6IMC
- Integrated Marketing Communications
- Not just a collection of promotional tools or a
budgetary allocation exercise. - Must be strategically developed (Kitchen et al.
2004) - Must harness synergy across multiple media.
(Naik and Raman 2003)
7IMC Strategy
- A set of processes that include the planning,
development, execution, and evaluation of
coordinated, measurable, persuasive brand
communications programs over time with consumers,
customers, prospects, employees, associates, and
other targeted, relevant external and internal
audiences. (Madhavaram, Badrinarayanan, and
McDonald 2005)
8Brand Identity Strategy I
- To have a successful IMC strategy, must first
have a strong Brand Identity Strategy.
9Brand Identity Strategy II
- Brand Identity Strategy is defined as
- A set of processes that include the coordinated
efforts of brand strategists in (1) developing,
evaluating, and maintaining the brand
identity/identities, and (2) communicating the
brand identity/identities to all individuals and
groups (internal and external to the firms)
responsible for the firms marketing
communication. - (Madhavaram, Badrinarayanan, and McDonald 2005)
10Brand Identity I
- Before we can achieve brand equity, i.e., a
positive brand image, we must know the brands
identity. - Brand identity is the unique set of brand
associations that a brand strategist aspires to
create or maintain. (Aaker 1996) - The brand owner defines the brand identity.
11Brand Identity II
- Unlike Superman and Spiderman, marketers do not
want to keep their identities secret. - Brand owner must understand and clearly express
aspirations for the brand. - These aspirations must be shared with all brand
stewards, those responsible for communicating the
brand to others.
12Figure1 Brand Equity Strategy A Schematic
Brand Identity Interface
Brand Equity Interface
IMC Strategy
Brand Equity
Brand Identity Strategy
Brand
Brand
Identity Contacts
Equity Contacts
Environment, competitors brands, and changing
customer needs and preferences
13Brand Contacts
- There are many types of brand contacts.
- Two that the brand strategist can affect
- Brand Identity Contacts
- Brand Equity Contacts
14Brand Identity Contacts
- All message-carrying interactions concerning the
brand between the brand strategists and the brand
stewards. (Madhavaram, Badrinarayanan, and
McDonald 2005)
15Brand Stewards
- All internal and external entities that have
responsibility for communicating the brand to
customers, prospects, and publics. - Advertising PR agencies
- Direct Marketers
- Salespeople
- Anyone who communicates the brand.
- (Madhavaram, Badrinarayanan, and McDonald 2005)
16Brand Equity Contacts
- All marketer-sponsored interactions concerning
the brand between brand stewards and customers,
prospects, and publics that are intended to
create or maintain strong and highly favorable
associations. (Madhavaram, Badrinarayanan, and
McDonald 2005) - Ties back to Kellers definition of brand equity.
17Figure1 Brand Equity Strategy A Schematic
Brand Identity Interface
Brand Equity Interface
IMC Strategy
Brand Equity
Brand Identity Strategy
Brand
Brand
Identity Contacts
Equity Contacts
Environment, competitors brands, and changing
customer needs and preferences
18IMC ? Brand Equity
- Brand Communication
- The glue that enables the connection between the
firms efforts and customers favorable response.
19Brand Communication
- Communication is a crucial (not only) driver of
brand equity. - Brand Communication is transmitted through a
combination of vehicles, not just broadcast
advertising. - Brand Communication can be meticulously planned
or unplanned. - Some important brand contacts are not
controllable by the brand strategist.
20Brand Identity ? IMC
- Brand identity helps establish relationship
between brand and customer via value
propositions. - Functional, Emotional, Self-Expressive Benefits
- Yet, it is extremely difficult for brand image
to match perfectly with brand identity due to the
complex nature of the communications system. - (Madhavaram, Badrinarayanan, and McDonald 2005)
- Goal Brand Image-Identity Congruence.
21Image ? Identity
- Per Aaker (1996), brand image should be an input
to brand identity. - Brand Strategists
- Carefully analyze own brand image, competitors
brand images, changing customer preferences and
needs. - Use to guide creation, management, or adaptation
of Brand Identity. - (Feedback Loop in Model)
22Identity Communication
- Positioning suitable for identity?
- How is identity to be communicated to brand
stewards? - How to guide brand stewards?
- Potential for conflicting messages.
- Brand Identity Strategy MUST guide the IMC
Strategy.
23Figure 2 A Conceptual Framework
24Brand Equity Contact Factors
- Synergy
- Combined efforts exceed sum of individual
efforts. - IMC Effectiveness
25SYNERGY
- Interactivity
- Processes that link customers to company and its
brands - Strategic Consistency
- Coordination of all messages in the promotion of
brands - Complementarity
- Reinforcing effects of individual communication
efforts
- (Madhavaram, Badrinarayanan, and McDonald 2005)
26Brand Identity Contact Factors
- Brand Identity-Oriented Culture
- Places high priority on brand identity
- Establishes behavioral norms in support of brand
identity - Top Management Support
- Brand Identity is strategic
- TMT sets culture
- Internal Market Orientation
- Apply customer approach internally
27Conclusion
- Know your brands identity.
- Communicate that identity to brand stewards.
- Identity guides IMC.
- Compare brand image to brand identity.
- A match is ideal.
- Look at competitors images, as well as
customers preferences and needs. - Adjust identity.
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