12BrandManagementFacilitation:BrandManagementFacilitation:ASystemsDynamicApproachASystemsDynamicApproachForDecisionMakersForDecisionMakersPeterOtto/PAD824,Fall2001PeterOtto/PAD824,Fall2001AConceptualFrameworkAConceptualFramework3Today‘sPresentationToday‘sPresentation•DefinitionDefinition•KeytermsinbrandmanagementKeytermsinbrandmanagement•ThebrandmanagementmodelThebrandmanagementmodel•SectoroverviewSectoroverview•BehaviorofthemodelBehaviorofthemodel•ThedissertationmodelThedissertationmodel•Q&AQ&A4ABrandMarkswhatPeopleABrandMarkswhatPeopleThinkandFeelThinkandFeel•ItisarationalandemotionalformulabasedItisarationalandemotionalformulabasedonthesumoftrust,relevance,andonthesumoftrust,relevance,andsignificancethatrelatespeopletoafirm,asignificancethatrelatespeopletoafirm,aproduct,oraservicethroughouttheirlife.product,oraservicethroughouttheirlife.5MarketDynamicsMarketDynamicsBusinessesandmarketsinwhichbrandsplayBusinessesandmarketsinwhichbrandsplayanimportantrolearebothhighlycomplex:animportantrolearebothhighlycomplex:•Theyaretightlycoupled:therearelotsofTheyaretightlycoupled:therearelotsofcomplexinteractions,interventionsbasedoncomplexinteractions,interventionsbasedonasingleactionareunlikelytoproveasingleactionareunlikelytoprovesuccessfulinthelongtermsuccessfulinthelongterm•Theybehavecounter-intuitively–theycanTheybehavecounter-intuitively–theycanbehaveintheoppositemannertowhichonebehaveintheoppositemannertowhichoneintendsintends6MarketDynamicscont.MarketDynamicscont.•Theyexhibittrade-offsTheyexhibittrade-offs•Theyarepolicyresistant–attemptingtoTheyarepolicyresistant–attemptingtoinfluencethesysteminonedirectionwillofteninfluencethesysteminonedirectionwilloftencausesomereactionwhichminimizesthecausesomereactionwhichminimizestheimpactoftheoriginalactionimpactoftheoriginalaction•Andtheyaredynamic–changesoccuronAndtheyaredynamic–changesoccuronmanydifferenttimescalesmanydifferenttimescales7BrandManagementBrandManagementSomeKeyTermsSomeKeyTerms•BrandAwarenessBrandAwareness•BrandLoyaltyBrandLoyalty•MotivationMotivation•DesiretoBuyBrandDesiretoBuyBrand•PerceivedQualityPerceivedQuality•SatisfactionSatisfaction•NegativeProductImageNegativeProductImage•PositiveProductQualityPositiveProductQuality•BrandEquityBrandEquity8TheDimensionsinBrandTheDimensionsinBrandBuildingBuilding•BrandidentityBrandidentity•BrandawarenessBrandawareness•FamiliarityandknowledgeofthebrandFamiliarityandknowledgeofthebrand•ConsiderationtoevaluatethebrandConsiderationtoevaluatethebrand•PurchasePurchase•BrandloyaltyBrandloyalty(orbrandequity)(orbrandequity)9AManager‘sGoalmustbetoAManager‘sGoalmustbetoBuildBrandEquityBuildBrandEquity•AbrandcanonlybestrongifAbrandcanonlybestrongifitithasastronghasastrongsupplyofloyalcustomerssupplyofloyalcustomers•BrandequitythereforecanbedefinedasaBrandequitythereforecanbedefinedasameasureofstrengthofconsumers‘measureofstrengthofconsumers‘attachmenttoabrand.attachmenttoabrand.10BrandEquityBrandEquitySource:Interbrand1999,TheWorldBiggestBrandsBrandNameIndustryBrandValue($USm)BrandValueasa%ofMarketCapitalisationCoca-ColaBeverages83,84559%MicrosoftSoftware56,65421%IBMComputers43,78128%GeneralElectricDiversified33,50210%FordAutos33,19758%DisneyEntertainment32,27561%IntelChips30,02121%McDonald'sFastFood26,23164%AT&TTelecom24,18124%MarlboroTobacco2...
