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BRANDING

A VEHICLE FOR COMPETITIVE ADVANTAGE


Richard Gilbert, Ph.D., H.E., OIA

American University of Health Science

Brands are all about trust The reason consumers flock to some brands and ignore others is that behind the brand stands an unspoken promise of value. That is why brands are becoming even more important drivers of growth.

Brand is an experience

A brand is essentially a container for a custumers complete experience with the offer and the company.
(Sergio Zyman)

What is a Brand?

User

Culture Personality

Attributes Benefits

Values

The Brand as an Open System.


Chanels, contacts Relationships with customers Personality Codes/Tone Symbols User Imagery Name Tribes Cultures Groups Emotional benefits

Corporation Economy

Competition
Organizations associations Skills

(Core) Offer
(Tangible Products & Services)

Origin

.Scope .Attributes .Uses .Quality/ Value .Functional Benefits

Self-expressive benefits

This Brand System interacts AS ...

1) .. A SOCIO-ECONOMIC AGENT
2) .. A CORPORATE ASSET 3) .. A STRATEGIC MARKETING TOOL 4) .. A COMMUNICATION & SELLING AGENT

THE BRAND AS A SOCIO-ECONOMIC AGENT


PART OF EACH INDIVIDUALS AND SOCIETAL GROUPS SET OF REFERENCES
A POWERFUL SOCIAL DRIVER A GLOBAL CEMENT A VALUE ADDING ECONOMIC AGENT

Brand Strategic Role


Brand Equity

Cash flow booster

Consumer Response Booster

THE BRAND AS A CORPORATE ASSET


A PROTECTED PROPERTY (owner's right to use)
BOOK VALUE, GOODWILL. - ASSET that can be sold and bought MARKETING NON TANGIBLE ASSET precisely measurable and valuable (when brand is on sale) : STRENGTH , LEADERSHIP & EQUITY, ie capacity to justify price.

Y&R s Brandasset Valuator PowerGrid

Emerging potential

Leadership

Brand Strength

DREK
DR

DREK
Eroding Potential

New/unfocused

EK

D R

EK

Brand Stature

Differenciation Relevance Esteem Knowledge


Monash University MBA - January 2002 - Prof. A. Hutinel 26

BRAND EQUITY & MARKETING ASSETS

RATE OF LOYALTY CAPACITY TO BUILD IT


LEVEL AND SCOPE OF AWARENESS

LEVEL & DISTINCTIVENESS OF PERCEIVED QUALITY


MEASURED STRENGTH OF IMAGE AND IDENTITY

UNIQUENESS OF PERCEIVED POSITIONNING


PREFERENCE POWER OF PERCEIVED BENEFITS

Building Brand Equity


Perceived PreferenceBrand Name Quality Associations Awareness Other Brand Brand Brand Assets Equity Loyalty Value To Firm (Name & Helps Programs Symbol) Brand Loyalty Value To Customer
Info Processing Confidence in Buying Use Satisfaction Prices Brand Extensions Trade Leverage Competitive Advantage

THE BRAND AS A COMMUNICATION & SELLING AGENT


* A RELATIONSHIP ACTOR/BUILDER

* AN INFLUENCER
* IT GIVES MEANINGS TO PRODUCTS/SERVICES ... * ... AND A CREATOR OF NEW WORLDS

A modern brand is
A persona that overlays and includes the physical products/services the sum of fundamental values and attributes ascribed to it by people the entity that the consumers construct from the products meanings, symbols and images that they perceive as defining the brand.

From Traditional to Experiential Branding


From Brands as identifiers
Names, logos, slogans build awareness and image
TO Brands as experience providers Names, logos, slogans, events, customer contacts which build sensory, affective, creative relations and ways of being (lifestyles) with the brands

Implications on Higher Education

New Demands on Higher Education


Changing landscape of competition in HE Two university models: Do-it-All versus Do-it Different & Well

Branding as a vehicle for competitive niche marketing.

THE CHANGING LANDSCAPE OF COMPETITION IN HIGHER EDUCATION (many countries)


BEFORE: HE SECTOR nationally organised & regulated Funding centralized Competition limited & structured: e.g. polytechnics versus universities National (do-it-all) model for the university sector vis--vis job spec., pay scales, nominal standards, pension schemes, balance teaching/research

THE CHANGING LANDSCAPE OF COMPETITION IN HIGHER EDUCATION


EMERGING (DIRECTION) Competition increasing National (new universities), Europe, Anglophone international (USA, Canada, Australia, India?) Pressures towards diversification of funding regimes Competition within many countries less structured/less limited: e.g. new universities, RAE, Russell Group, internationalization of Oxbridge & LSE, Bifurcation between teaching & research National models under pressure (pay differentials, limited term teaching contracts, international headhunting, overseas students

THE CHANGING LANDSCAPE OF COMPETITION IN HIGHER EDUCATION


CHARACTERIZATION: Place versus space: plight of cities in a global economy Place bound cities cant move and follow mobile capital

IMPERATIVE: To divert capital flows through particular cities To embed economic activity To develop economic activity less vulnerable to the vagaries of capital flight

CHANGING COMPETITION IN HIGHER EDUCATION

Implications for urban economic strategy? Higher value-added activities less vulnerable Headquarter & R&D functions less prone to relocation LESSON: Do not produce high-volume, low value products. Go for higher value, lower volume knowledge intensive, products.

CHANGING COMPETITION IN HIGHER EDUCATION

Implications for urban economic strategy?


Importance of place-branding and place-marketing image /liveability

Imperative:

Need to attract mobile, metropolitan middle classes


Importance of good living environment, good food, good schools, liberal metropolitan activities and values

CHANGING COMPETITION IN HIGHER EDUCATION

HOW DOES THIS APPLY TO UNIVERSITIES?

Place-bound communities (like cities)

Need to divert capital & embed economic activity

CHANGING COMPETITION IN HIGHER EDUCATION

What kinds of capital?


A) HUMAN CAPITAL: Better undergraduate students

Better post-graduate students More international students

Better academic staff

CHANGING COMPETITION IN HIGHER EDUCATION

What kinds of capital?


B) FINANCE CAPITAL Capital investment (block funding, private sector)

Discretionary research funding (research councils)


Ancillary revenue streams Short courses, Commercial management of estates Commercial management of other assets [merchandising?] IPR/patenting/commercialisation of research Private benefactors (alumni schemes etc)

CHANGING COMPETITION IN HIGHER EDUCATION

Key strategic problem: How to divert flows and attract these different forms of capital? Solution SENSE OF PLACE /COMMUNITY (PLACE-MARKETING, IMAGE, LIVEABILITY, AUTHENTICITY) HIGHER VALUE-ADDED NICHE PRODUCT, LESS VULNERABLE TO COMPETITIVE PRESSURES. Do something other universities dont and preferably can not do.

Do-it-Different and Do-it-Well

CAMPUS MICRO-ECONOMY AS NODAL LEVER FOR ACCESSING WIDER NATIONAL & GLOBAL CAPITAL FLOWS FINANCE CAPITAL Capital investment Research funding Benefactors Ancillary revenue streams HUMAN CAPITAL World class staff Students

CAMPUS ECONOMY & COMMUNITY

BRAND
CURRICULUM RESEARCH

LOCATION & LANDSCAPE

TWO MODELS: DO-It-ALL or DO-it-Different and Do-it-Well


The traditional model: Do-it-All Universities
Renaissance man Enlightenment universalism Shared perception of a proper university: Full suite of science and humanities departments Commitment to uneconomic, high prestige subjects (philosophy, classics , chemistry) Medical school Highly centralised regulation and financing From polytechnics to new universities: A rush to join the high table

DO-It-ALL or DO-it-Different and Do-it-Well

The traditional model: Do-it-All Universities

ACHIEVEMENTS: British Education as international brand/benchmark Standardized level of provision and quality

DO-it-Different & Do-it-Well

American universities never like this.

Expansion of mass higher education + globalizing competition brings new pressures for market differentiation

Do-it-Different & Do-it-Well


Small always struggled to do it all Traded on difference (e.g. Agricultural vs. Business)

Do-it-Different & Do-it-Well


Vulnerability: Small campus university, rural location. Too small to compete head-to-head Lacks large urban home market

Increasing competition from new universities


Lacks access to exciting metropolitan life

DANGER: Being pushed down, pushed mainstream

Do-it-Different & Do-it-Well


Opportunity: Already primed by history & tradition + location for Do-it-Different & Well Possibility of creating a market niche for a higher value, low volume, and more locally embedded product. Possibility of deciding how and against which institutions to compete (or better still side-step competition)

RESPONSE: Aggressive & concerted niche marketing and lateral competition

BRANDING: A VEHICLE FOR COMPETITIVE ADVANTAGE

Framework tying together:

Place-marketing & liveability Higher value added product

Specifically: Research Teaching Physical infrastructure and operations Sense of place & community

BRANDING: A VEHICLE FOR COMPETITION ADVANTAGE


A= Interdisciplinary research focus B= Interdisciplinary focus on teaching, including innovative links with NGOs and industry. C= Liveability and sense of place (e.g. cinema, cafes, live music, music festivals, quality of retail outlets, second hand bookshop etc) D = Architecture, localisation of food, energy, and material inputs BRANDING RESEARCH TEACHING

D
CAMPUS ARCHITECTURE & OPERATIONS

CAMPUS COMMUNITY

BRANDING: A VEHICLE FOR COMPETITIVE ADVANTAGE

Interdisciplinary research:

BRANDING: A VEHICLE FOR COMPETITIVE ADVANTAGE

Interdisciplinary research:

Teaching:

Collegiality, learning culture, participation, engagement

Campus community and social life Liveabilty

food culture, book shops, cinema, small bars, deli., farmers market,

Economy

Keep the money on campus

Campus community and social life Economy

Keep the money on campus: short courses, training

Thank You