Suggested Readings – Oren Jacob

We had a great time with BIB class.  There were some really awesome pitches – incredible! 

Here are 3 very easy, short reads for your students, all of which are gems.

http://www.amazon.com/Directing-Film-David-Mamet/dp/0140127224

http://www.amazon.com/Blink-Eye-Revised-2nd/dp/1879505622/ref=sr_1_1?ie=UTF8&s=books&qid=1241633596&sr=1-1

http://www.amazon.com/Making-Movies-Sidney-Lumet/dp/0679756604/ref=pd_bxgy_b_text_b

You can buy all 3 together from amazon for about $35… I found the 3-for deal on the OnDirectingFilm page.  Oren Jacob

short article on ethical marketing

Just posting the link to a short article I found on ethical marketing, particularly related to small companies in cosmetics

http://www.cosmeticsdesign-europe.com/Products-Markets/Businesses-should-go-ethical-despite-downturn-says-guide

“Green” Brands

In advance of our session on socially responsible brands, I thought I’d share some highlights from an interesting survey by Generate Insights on Millenials’ perceptions:

http://www.marketingcharts.com/topics/behavioral-marketing/confused-teens-choose-less-expensive-over-green-8820/

• Words associated with the green movement: responsible, smart, cool, reality
• 63% of 21-29 years old and 65% of 18-21 years old would purchase a more expensive brand that gives 5% back to an environmental cause; HOWEVER, only 29% of 13-17 years old would choose the more expensive brand
• “The top three biggest hurdles this generation faces when embracing the green movement are cost (41%), proof that they’re making a difference (24%), and ease of use ( 12%)”
• “76% of Millennials feel it’s very important or important for brands to get involved in the green movement”
• “Interestingly, the majority of Millennials surveyed found it confusing as to why products that are better for the environment are more expensive. Generate Insight noted that the extra cost – without consistent explanation – discourages the majority of shoppers from embracing and contributing to the green movement.”

The last bullet presents an interesting marketing issue: how does a brandeffectively communicate / justify a price premium?

 

5/1 Measuring Brand Value

5/1 Measuring Brand Value

• Measure both sides of the Brand Pyramid
  • Consumer Questions
  • Ideal Outcomes
  • Don’t break the bank
    • Measuring brand value can be done cost-effectively, with small sample sizes
      • Surveys (n=25+)
      • Focus Groups (n=6)
      • One on one in depth interviews (2-3)
      • Choose Respondents Wisely
        • Best feedback comes from a balance of love/hate respondents
        • Use Quantitative and Qualitative Research
          • Qualitative Tools – Interviews, Focus Groups
            • Ask questions about: Open-ended, “Think back,” Make a list, Creating associations, Sorting pictures, complete a sentence, personification, drawings
• Quantitative Tools – Surveys
  • Ask questions about: Awareness, Recall, Recognition, Associations, Brand Attributes, Brand Personality, Attitudes, Judgments, Feelings, Attachment (relationship)
  • Reputable Brand Valuation Sources:
    • Interbrand, Brand X, Landor
    • 2009 Brand Valuations (Interbrand)

Google – $100B, Microsoft – $76B, Coke – $67B, IBM – $67B, McDonald’s $67B, Apple – $66B, China Mobile – $61B, GE – $60B, Vodafone – $54B

• Interbrand Valuation Method:
  • Assess income due to brand (e.g., $100B)
  • Back out value of tangibles (e.g., 6%)
  • Adjust for last two years (operating income)
  • Subtract income tax (e.g., 40%)
  • Determine multiplier (price/earnings ratio – e.g., 15) *
  • Brand value (e.g., $750B)
    • *Each firm has its own way of determining multiplier
    • Brand is an intangible asset
      • Many companies are shifting accounting practices away from categorizing money spent on brand as an expense (e.g. software engineering)
      • Brand Extensions
        • Many brands transition over time
          • E.g. LEVI’S dockers…Dockers by Levi’s…DOCKERS
• When to extend brand
  • Minimum Rule – “Do no harm”
  • Make sure the extension fits with the parent
  • Test purchase intent and quality perception on extension alone, e.g. Dockers, then on parent + extension, e.g. Levi’s Dockers
  • BMW Case Study
    • BMW Z3
      • BMW getting boring
      • Introduce Z3
      • Loses money, but builds brand (based on survey of big 5 dimensions of brand personality – sincerity, excitement, competence, sophistication, ruggedness)
      • Made exciting through: BMW Films, James Bond
      • Mediation Analysis used to determine effect on sales