minors_Lecture_1 copy.pdf
- 1. SERVICE BRANDING EXPERIENCE, BRAND, AND BRANDING
- 2. Chair of Product-Market Relations SERVICE BRANDING INTRODUCTION 2 • Contextualizing Service Branding • Experience • Brand – Key Concepts • Brand Experience • Different Views of Branding
- 3. Chair of Product-Market Relations SERVICE BRANDING CONTEXTUALIZING 3 Translating Brand Strategy into Customer Experiences
- 4. Chair of Product-Market Relations SERVICE BRANDING CONTEXTUALIZING 4 • The Brand Experience Manual: Addressing The Gap Between Brand Strategy And New Service Development. • http://designresearch.no/news/brand-experience-manual- addressing-gap-brand-strategy-new-service-development
- 5. Chair of Product-Market Relations SERVICE BRANDING THE BRAND EXPERIENCE MANUAL: ADDRESSING THE GAP BETWEEN BRAND STRATEGY AND NEW SERVICE DEVELOPMENT. 5 Findings: • Current Brand Manuals • The inadequateness of brand manuals noticed by Kapferer (2011) was confirmed in the empirical research. • Generic Brand Manuals vs. Specific Design Manuals • Brand Manuals are for Marketing • The evolution of Branding • From a Marker to a Proposition • Marketing Evolution • Increased Transparency and the need to deliver the Brand
- 6. Chair of Product-Market Relations 6 Findings: • A New Branding • Focus on the Customer Experience • Need to Engage all Stakeholders (within and with out the company) • Corporate Issues • Need for organizational support • Culture issues • Internal vs. External values – experience the brand internally • The Current New Service Development Process • Coping mechanisms • Need for shared and formalized view of the experience proposition SERVICE BRANDING THE BRAND EXPERIENCE MANUAL: ADDRESSING THE GAP BETWEEN BRAND STRATEGY AND NEW SERVICE DEVELOPMENT.
- 7. Chair of Product-Market Relations SERVICE BRANDING EXPERIENCE 7 Different Views of the Concept § Phenomenological - Perception § Interaction - Moment § Economic Offering • Extraordinary Experience
- 8. Chair of Product-Market Relations SERVICE BRANDING EXPERIENCE 8 Service Dominant Logic § Phenomenological view of Experiences § Focus on customers’ perceptions • Experience is the outcome from the interaction – product, service, ‘experience’ • Whether planned or not, there is always an experience • There always is on experience • Experiences cannot be designed – but enabled
- 9. Chair of Product-Market Relations SERVICE BRANDING EXPERIENCE 9 Two Selves § Experiencing Self § Remembering Self • It is the remembering self that influences your decision • TED Talks - The riddle of experience vs. memoryhttps://www.ted.com/talks/daniel_kahneman_the_riddle_of_experience_vs_ memory
- 10. Chair of Product-Market Relations SERVICE BRANDING EXPERIENCE 10 Experience and Meaning “People do not perceive pure forms, unrelated objects, or things as such but as meanings” (Krippendorff, 1989, p.12)
- 11. Chair of Product-Market Relations SERVICE BRANDING EXPERIENCE 11 Experience and Meaning § As phenomenological responses to events, experiences are the customers’ interpretation of the meanings communicated through the interaction • Experiences are not only good and bad • Experience is not the same as satisfaction • It is this meaning proposition that differentiates an offering from the competitors’ • It is this perception that creates value
- 12. Chair of Product-Market Relations SERVICE BRANDING EXPERIENCE 12 Experience and Meaning https://www.youtube.com/watch?v=Hbib-A6NpW8 https://www.youtube.com/watch?v=a4JdQi60an0&t=1s
- 13. Chair of Product-Market Relations SERVICE BRANDING EXPERIENCE - BRAND 13 What defines the Experience? “Engineering an experience begins with the deliberate setting of a targeted customer experience and results in the successful registration of that perception on customer`s minds” (Carbone and Haeckel, 1994, p.9).
- 14. Chair of Product-Market Relations SERVICE BRANDING BRAND – KEY CONCEPTS 14 What is a Brand? § Brand Identity • “A set of associations the brand strategist seeks to create or maintain” (Aaker, Joachimsthaler) • For Grönroos brand identity describes the image the marketer wants to create. The brand is in fact the image, the customers perception. § Brand Image • “The current brand`s association” (Aaker, Joachimsthaler)
- 15. Chair of Product-Market Relations SERVICE BRANDING BRAND – KEY CONCEPTS 15 “A brand is the identity of a good, or a service, which a marketer wants to create, whereas the brand image is the image of the good, or service, which is formed in the customer`s mind” (Grönroos)
- 16. Chair of Product-Market Relations SERVICE BRANDING BRAND – KEY CONCEPTS 16 Customer Based Brand Equity (Keller) “The premise of the CBBE model is that the power of a brand lies in what customers have learned, felt, seen, and heard about a brand as a result of their experiences over time” • The brands reside in the customers mind as a network of meaning associations • Marketers have to ensure that customers have the right experience
- 17. Chair of Product-Market Relations SERVICE BRANDING BRAND – KEY CONCEPTS 17 Brand Associations “A brand association is anything “linked” in memory to a brand... The association not only exist but has a level of strength. A link to a brand will be stronger when it is based on many experiences or exposures to communication, rather than few. It will also be stronger when it is supported by a network if other links”
- 18. Chair of Product-Market Relations SERVICE BRANDING BRAND – KEY CONCEPTS 18 What is a Brand Equity? § Brand awereness consists of brand recognition and brand recall • Brand recognition – confirm prior exposure to the brand (assisted) • Brand recall – retrieve the brand from the memory (non-assisted) § Brand image is created by maerkting programs that link string and favorable associations to the brand in memory § Brands are only relevant when they are powerful enough to influence customers’ preferences and attitudes • It is this power to influence customers’ choices that creates value to the brand – the projected profits discounted to the current value (Interbrand)
- 19. Chair of Product-Market Relations SERVICE BRANDING BRAND – KEY CONCEPTS 19 “A brand is said to have a positive brand equity when customers react more favorably to a product and the way it is marketed when the brand is identified than when it is not” (Keller)
- 20. Chair of Product-Market Relations SERVICE BRANDING BRAND – KEY CONCEPTS 20
- 21. Chair of Product-Market Relations SERVICE BRANDING BRAND – KEY CONCEPTS 21
- 22. Chair of Product-Market Relations SERVICE BRANDING BRAND – KEY CONCEPTS 22 Brand as Identity • The brand is a promise that is communicated trhough the touch-points • Brand identity as the brand manifestations, the visual and verbal expressions of the brand • “Visual identity triggers perceptions and unlock associations” • When is it needed: New company, new name, revitalizing the brand, creating and integrated system, company merge.
- 23. Chair of Product-Market Relations SERVICE BRANDING BRAND – KEY CONCEPTS 23 Developing a Brand Identity § Strategic Brand Analysis: • Customer Analysis • Who are you serving • Competitors Analysis • What is the best position • The threats and opportunities • Self Analysis • Internal capabilities • Key competencies
- 24. Chair of Product-Market Relations SERVICE BRANDING BRAND – KEY CONCEPTS 24 Post-Modern Brand “From having been a mere marker that identifies the producer or the origin of a product, today the brand has become the sign that is consumed” (Salzer-Mörling and Strannergård)
- 25. Chair of Product-Market Relations SERVICE BRANDING BRAND – KEY CONCEPTS 25 Evolving Marketing Practices (Goodyear) Stage 1 – Seller`s Market – Consumer has pretty much no choice Stage 2 –Marketing – Competition starts • functional differentiation • where classic branding transition happens Stage 3 – Classic branding • Emotional differentiation • Brand awareness Stage 4 – Customer Driven marketing • Image/sign building • The consumer starts to own the brand
- 26. Chair of Product-Market Relations SERVICE BRANDING BRAND – KEY CONCEPTS 26 Evolving Branding Practices (Goodyear) Classic Branding • Unbranded • Brand as reference – quality and label • Brand as personality – emmotional connection • Brand as icon – image and symbolism Post Modern branding • Brand as company – integrated communications • Brand as policy – social and political agenda
- 27. Chair of Product-Market Relations SERVICE BRANDING BRAND – KEY CONCEPTS 27 Evolving Brand § The role of the brand is evolving, this doesn’t mean that the previous role is no longer necessary, but mostly that a new layer of complexity has been added • Brand as a marker • Brand as identity • Brand as sign (image) • Brand as relationship • Brand as the corporation
- 28. Chair of Product-Market Relations SERVICE BRANDING BRAND – KEY CONCEPTS 28 Brand Relationship “The brand is created in the mind of the customer following a flow of brand contacts – interactions between customers and supplier or service provider, including physical products, service processes, information, etc., and planned marketing communication elements – in the ongoing relationship between two parties” (Grönroos)
- 29. Chair of Product-Market Relations SERVICE BRANDING BRAND – KEY CONCEPTS 29 Brand Relationship § Service oriented view § It is created in the interactions between consumers and the brand`s touch-points over time. § All touch-points influence the customers perception • Unplanned communication – Internet chat groups, word of mouth, TV news • Planned communication – Advertisement, events, mailing • Product message – Appearance or products, ease of use • Service message – Personnel, service recover
- 30. Chair of Product-Market Relations SERVICE BRANDING BRAND EXPERIENCE 30 Experience – Meaning (over Relationships) “Neural network models are based on the principle that the brain stores engrams by strengthening connections between different neurons that participate in the encoding of an experience. When we encode an experience, connections between active neurons are reinforced, and this specific patter of brains activity constitutes the engrams” (Batey)
- 31. Chair of Product-Market Relations SERVICE BRANDING BRAND EXPERIENCE 31 Meaningful Brand Experiences § Brand Experience – similarly to the concept of experience • Phenomenological – Remembering Self • Interaction – Experiencing Self § It is the experiencing self that informs the remembering self • Although not always perfectly • Through this interactions, the customers experience the brand proposition § Supports a third view of experience - the brand as a meaning proposition
- 32. Chair of Product-Market Relations SERVICE BRANDING BRAND EXPERIENCE 32 Meaningful Brand Experiences
- 33. Chair of Product-Market Relations SERVICE BRANDING DIFFERENT VIEWS OF BRANDING 33 Brand Orientation • Brands as strategic resource • Brand Mission as the point of depature • Market Orientation – the customer is king • Brand Orientation – a new layer on the top of the customer orientation where the customers needs are satisfied in a brands framework • Market orientation + resources orientation • Long term (as oposed to market orientation short term)
- 34. Chair of Product-Market Relations SERVICE BRANDING BRAND EXPERIENCE 34 Brand Orientation “Managing a brand-oriented company requires a certain approach and brand competence. By focusing on brands, the management combines and develops the resource base in order to underpin the strategic brand, and vice-versa” (Urde)
- 35. Chair of Product-Market Relations SERVICE BRANDING DIFFERENT VIEWS OF BRANDING 35 Corporate Branding § Enabling the organization behind the brand • Product brands are focused in the customer • Corporate brands are focused at all stakeholders § The Post Modern Shift and Marlboro Friday • Nike is a corporate brand that integrates a wide range of activities • Marlboro is still a Phillip Morris product
- 36. Chair of Product-Market Relations SERVICE BRANDING DIFFERENT VIEWS OF BRANDING 36 Corporate Branding “First and foremost, branding an enterprise is not the same things as branding a product. And, although corporate and product brands share some similarities, assumptions about product branding can sometimes leave the wrong impression of what corporate branding entails” (Schultz and Hatch)
- 37. Chair of Product-Market Relations SERVICE BRANDING DIFFERENT VIEWS OF BRANDING 37 Corporate Branding § Branding an enterprise involves everyone that is important for the company § Product brands marketing is short-term oriented, and corporate brands focus on longer term brand building § Products try to build awareness, corporations, images and relationships § Corporate brands marketing need a stronger brand-orientation than product brands (consequence of the long term orientation) • Corporate brand cannot only focus on the future, it has to look at its heritage, they live with the corporation • Product brands dies with products, and are easier to replace
- 38. Chair of Product-Market Relations SERVICE BRANDING DIFFERENT VIEWS OF BRANDING 38 VCI Alignment model • Strategic Vision – corporate strategy • Organizational Culture – employees reality • Stakeholders Image – consumers and stakeholders perceptions “The combination of vision, culture, and images represents in one way or another everything the organization is, says, and does” (Schultz et al.)
- 39. Chair of Product-Market Relations SERVICE BRANDING DIFFERENT VIEWS OF BRANDING 39 Corporate Branding § A shift from standalone products and services to the branding of the organization itself § Corporate branding can be seem as a move toward a more integrated relationship between internal and external stakeholders § Create coherence across organization § Aligning organizational culture, strategic vision and stakeholder image in an organizational identity § Who the company is, how it`s different and engage stakeholders § Corporate branding as cross-disciplinary and cross-functional
- 40. Chair of Product-Market Relations SERVICE BRANDING DIFFERENT VIEWS OF BRANDING 40 Corporate Branding “Corporate branding can be best described as the process of creating, nurturing, and sustaining a mutually rewarding relationship between a company, its employees, and external stakeholders” (Schultz et al.)
- 41. Chair of Product-Market Relations SERVICE BRANDING DIFFERENT VIEWS OF BRANDING 41 Corporate Branding • The ultimate brand management has to deliver a consistent and distinctive customer experience • Strong organizations stress the role of organizational culture in promoting on-brand customer service behaviors, sustaining lasting effects • Successful service brands stress the role of their people in delivering a distinctive brand experience • Balance external proposition with internal values, making a link between brand, culture and customer experience
- 42. Chair of Product-Market Relations SERVICE BRANDING DIFFERENT VIEWS OF BRANDING 42 Corporate Branding Even in the most Orwellian world, the company cannot control all these touch points • A brand is a promise of future performance and experience • Whether this promise is delivered or not affect the relationship building • Service delivery is the only way to control the brand, and again, the best way to achieve consistency here is by empowering the employees • The image cannot be controlled • Several different elements influence the image • Many outside the corporation • Increasing number of interaction in service and product delivery
- 43. Chair of Product-Market Relations SERVICE BRANDING DIFFERENT VIEWS OF BRANDING 43 Corporate Branding “Brands should be both a source of differentiation and a promise of performance. The presentation of the brand is an element in the way customers perceive the brand, but it`s not the brand itself. Rather, a brand is something that exists in people`s minds” (Ind)
- 44. Chair of Product-Market Relations SERVICE BRANDING DIFFERENT VIEWS OF BRANDING 44 Corporate Branding – Service Context § Dominance of Service Industry • Recent deregulation, privatization and break of monopolies • Increased competition in many service industries • Global expansion and cultural issues “The services sector has become a dominant force in the economy of many Western countries and has created a wealth of new jobs: in the UK two-thirds of the workforce are now employed in service companies, in the USA three quarters”
- 45. Chair of Product-Market Relations SERVICE BRANDING DIFFERENT VIEWS OF BRANDING 45 Service – It is a Spectrum, not a Bipolarity
- 46. Chair of Product-Market Relations SERVICE BRANDING DIFFERENT VIEWS OF BRANDING 46 Service Marketing § IHIP Characteristics • Tangibility • Heterogeneity • Inseparability • Perishability § IHIP constitute the main received wisdom in service marketing § However, some approaches now consider it dated, and no longer relevant
- 47. Chair of Product-Market Relations SERVICE BRANDING DIFFERENT VIEWS OF BRANDING 47 Corporate Branding – Service Context “A brand is a cluster of functional and emotional values which promises a unique and welcome experience” (de Chernatony) § Proposing a balanced perspective • Traditionally brand management has taken an external perspective • With the grown of service sector and greater interaction between customer and staff the author proposed a balanced perspective
- 48. Chair of Product-Market Relations SERVICE BRANDING DIFFERENT VIEWS OF BRANDING 48 Corporate Branding – Service Context “… brand management, or managing promises, is not primarily about focusing on customers. Instead, a more balanced perspective is needed by also focusing on staff. If staff are genuinely committed to a set of values, they are more likely to deliver the brand`s promise” (de Chernatony)
- 49. Chair of Product-Market Relations SERVICE BRANDING DIFFERENT VIEWS OF BRANDING 49 Corporate Branding – Service Context • Brands exist in a continuous process where senior managers specify the brands core values, which are enacted by the staff for customers` interpretation and redefinitions. These consumers actions will inform the managers on how to update the brand values. • It is in the ongoing interaction between customers and staff that the brand lives • The importance of aligning internal and external values • Culture as a glue that can link geographically disperse staff • Focus on internal culture reduces variability of the service
- 50. Chair of Product-Market Relations SERVICE BRANDING DIFFERENT VIEWS OF BRANDING 50 Brand Equity – Service Context “Service companies build strong brands through branding distinctiveness and message consistency, by performing their service well, from reaching customers emotionally, and by associating their brands with trust” (Berry)
- 51. Chair of Product-Market Relations SERVICE BRANDING DIFFERENT VIEWS OF BRANDING 51 Brand Equity – Service Context Image from Berry (2000)