The 3i model

Silvia Rita Sedita

silvia.sedita@unipd.it
Source: Adapted from Kotler et al. 2010
How to create value in
Marketing 3.0?

Brand management
 Definitions
The most basic definition of a brand is that it is a name, term, sign, symbol, or design (or
combination thereof) intended to identify the goods and services of a seller and differentiate
them from the competition.
A brand comes to embody elements of the product and the intellectual property (e.g.
trademarks, patents, trade dress, wordmarks and design marks) that the brand uses to
speak to the world.
The brand can also be thought of as the embodiment of a promise from the manufacturer to
the consumer, a communication of quality, product origin, integrity and consistency that a
consumer can count on when purchasing a product that is sold under the banner of the
brand, as signaled by the trademarked symbols.
A brand and its trademarked markers can be defined as the unique property of a specific
owner [that] has been developed over time so as to embrace a set of values and attributes
(both tangible and intangible) which meaningfully and appropriately differentiate products
which are otherwise very similar.
The brand has the ability to reassure consumers as to the quality and origin and ... provide
them with a kind of route map through what would otherwise be a bewildering range of
alternatives.
Source: Murphy, J.M, Brand Strategy, Cambridge: Director Books, 1990
Note: Here I use the term trademark to refer to any of the intellectual property associated
with the brand, such as brand name and characteristic typeface, logos, word marks, package
design, trade dress, or other patented features.
 Why brands?
For manufacturers
Brands provide benefits to
manufacturers by allowing
for higher margins.
For consumers
Brands and their trademarked
symbols provide benefits to
consumers by helping them
navigate or choose among
brands and by providing
reassurance about the quality,
origin or other key
characteristics of the product.
Information search reduction
Risks reduction
Higher quality
Emotional needs and prestige
 Value for consumers
Navigation
Trademarks or brands provide
assistance in identifying their
preferred brand.
Brands provide the consumer with a
way to make quick decisions about
purchases.
Elimination of uncertainty
Particularly in products that do not
have significant difference in features,
the brand allows the consumers
comfort in their choice.
Shopping experience is less stressful
Source: Elaborated on Joyce, 2013
Reassurance
Regarding the origin and quality of
consumerspreferred brand.
Trademarks communicate the intrinsic
attributes of the product or service
and reassure consumers that they
have made the right choice
Guarentee
Quality and consistency regardless of
the circumstances or channel of
purchase.
A consumer knows that a
trademarked product purchased
online will be the same as one
purchased at another online retailer, a
retail store, or a mass merchandiser.
 Value for companies
Price premiums
Consumers will pay more for the same
product if it is branded. This value of a
brand is created over many years of
investment by the manufacturer.
The Lacoste crocodile is worth $85
[when added to a shirt or other piece
of clothing]. It took 75 years to create
this value.
International Expansion
A strong brand can make it easier for a
firm to enter foreign markets because,
even if consumers in the market have
never tried the firms products, they
may be aware of its brand and even
feel that they have some knowledge
about the firms products.

Consumers in the United Kingdom are willing to

pay more than 140 times more for Evian
bottled water than they do for tap water.
Consumers perceive bottled water to be purer
and cleaner than tap water, despite the fact
that tap water is generally more tightly
regulated than bottled water and consumers
generally cannot tell the two types apart in
blind taste tests

Source: Elaborated on Joyce, 2013

 Co-branding
When a brand name or logo is shared between two different
products or services, it is referred to as a co-brand.
The purpose of a co-brand is for both the primary product
associated with the brand and trademark and the secondary
product on which the brand and trademark are applied to both
benefit from the brand equity that has been created for the
separate brands.
These co-branding alliances are valuable for both parties as the
extend the perceptions and other dimensions of brand equity
into a different category and, when successful, enhance each
brand separately.
There is an increasing use of co-branding in the fashion industry
Source: Elaborated on Jean-Noel Kapferer, The New Strategic Brand Management:
Advanced Insights and Strategic Thinking , 5th Edition, 2012. London: Kogan Page. Pages
166-170.
 Co-branding

https://www.youtube.com/watch?v=pyV57QlGUGI

https
://www.youtube.com/watch?v=pPviiyHvk7A&list=UUzcYyo1s0W
iFBzoCpQw4p_Q
 The case of Bayer Aspirin
Quality Bayer (%) Generic (%)
provides rapid relief 53 24
alleviates muscle pain 49 22
reduces inflammation 42 28
provides lasting relief 41 26
valid for the treatment of acute pain 33 5
relieves arthritic pain 30 17
eases menstrual discomfort 9 18
cause gastric distress 11 14
easy to assume 62 48
good value for money 59 68
a modern brand 51 31
prevents heart attacks 41 19
recommended by doctors 37 16

Source: John Quelch (1997), Bayer AG (A), Harvard Business School case #9-598-031
 Brand power
Despite the fact that Bayer aspirin and generic or store
brand aspirins are identical in their formulation,
consumers perceived Bayer aspirin to be more
effective, easier to take, and faster-acting.
As a result of these perceptions, the Bayer product
was considered to provide good value for money by
almost as many consumers as the unbranded product,
despite a much higher price.
Consumers therefore would choose Bayer from among
the various brands offered.

Source: Quelch (1997)

 Packaging
Packaging with its trademarked components
plays an important in role in building and
maintaining brand equity.
Packaging is so important that marketers often
think of it as a 5th P, to go with the
traditional 4 Ps of marketing product,
price, promotion and place (also known as
channel.)

Source: Elaborated on Keller, Kevin Lane: Strategic Brand Management,

3rd edition, Upper Saddle River, NJ: Prentice-Hall 2008
 Packaging
For example, Absolut Vodkas distinctive bottle shape has been featured in
more than 1,500 different print ads around the globe, as well as being
recreated in such unusual media as a giant ice sculpture, a corn field,
crystal and a designer dress. In 2008, the Absolut brand was the key asset
acquired in the takeover of Vin & Spirit by Pernod Ricard for 20.8 times
earnings (EBITDA*) Source Joyce (2013)
*EBITDA Earnings Before Interest Taxes Depreciation and Amortization

Colors and shapes on packaging can

also be used to build upon the value
of the brand.
The term trade dress is used to
describe the overall appearance of
the package. Elements of trade dress
include patented packaging design
and trademarked graphics along
with graphics, color and shape.

http://www.absolutad.com/absolut_about/history/advertising/
http://carolinads.wordpress.com/absolut-vodka/
Brand extension
Brand extension is a
marketing strategy in
which a firm
marketing a product
with a well-developed
image uses the same
brand name in a
different product
category.

Organizations use this

strategy to increase
and leverage brand
equity
Source: Adapted from Kotler et al. 2010
 Brand identity
Brand identity
Brand identity is the embodiment of how the company wants its brand
or brands to be recognized by the consumer. A firm invests to build a
strong brand identity because a strong and clear brand identity makes
it easier for consumers to buy the firms products instead of those of its
competitors.
A strong brand identity is one that builds a high level of brand awareness and
recognition and helps to differentiate the brand in the eyes of consumers.
is about positioning your brand in the minds of the consumers.
Positioning must be relevant to the rational needs and wants of the consumers
It includes brand names, patents and trademarks, logos and graphics,
all of which help the consumer to recognize the product and associate
it with the brand.

Source: Adapted from Kotler et al. 2010

 Trademark and logo
A strong trademark or logo can identify a product
and act as a sort of shorthand expression of the
brand and its values, evoking the brand in the
consumers mind through just a glance.
For example, consider the following graphic logos:

Source: Elaborated on William Joyce, 2013

 Trademark and logo
The logos are much m

The logos are much more effective and efficient

communicators of brand values than the
corresponding words

Source: Elaborated on William Joyce, 2013

 Brand image
Brand image
is about acquiring the consumers heart share.
brand value should appeal to consumers emotional
needs and wants beyond product functionalities and
features.
Brand integrity
is about touching the spirit of the consumers
It is about being credible, fulfilling your promise, and
establishing consumers trust in your brand.

Source: Adapted from Kotler et al. 2010

 Differentiation
According to Michael Porter of the Harvard Business School,
differentiation is one of the generic strategies that a firm can
use to gain a competitive advantage in the marketplace.
Differentiation involves offering something that your
competitors do not, such as superior service, higher quality or a
distinct design.
Differentiation serves two purposes
it provides customers with a reason to choose the company's product
over a competitor's
it allows a firm to charge a premium price. Ultimately, consumers are
willing to pay more for products they perceive as providing specific
benefits that are lacking in competing products.
 Positioning
Placing a company or a brand (sometimes they are the same) in the
consumers mind in relation to the competition.
For example, McDonald's positions itself as a low-cost, quick provider
of meals, while a restaurant like Spago Beverly Hills provides high-
quality meals in an upscale environment for a premium price.
Products and services are positioned to meet the needs of different
consumers, with the most successful offering multiple products that
are positioned differently.
For instance, the Holiday Inn operates hotels under various brands,
such as Holiday Inn Express, which is positioned as a low-cost, no frills
hotel, and Holiday Inn Select, which is positioned as an upscale,
premium-priced hotel -- there's something for everyone who needs a
hotel.