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Brand Management Facilitation:A Systems Dynamic ApproachFor Decision Makers Peter Otto / PAD 824, Fall 2001 Today‘s Presentation Definition Key terms in brand management The brand management model Sector overview Behavior of the model The dissertation model QA A Brand Marks what People Think and Feel It is a rational and emotional formula based on the sum of trust, relevance, and significance that relates people to a firm, a product, or a service throughout their life. Market Dynamics Businesses and markets in which brands play an important role are both highly complex: They are tightly coupled: there are lots of complex interactions, interventions based on a single action are unlikely to prove successful in the long term They behave counter-intuitively – they can behave in the opposite manner to which one intends Market Dynamics cont. They exhibit trade-offs They are policy resistant – attempting to influence the system in one direction will often cause some reaction which minimizes the impact of the original action And they are dynamic – changes occur on many different timescales Brand ManagementSome Key Terms Brand Awareness The Dimensions in Brand Building Brand identity Brand awareness Familiarity and knowledge of the brand Consideration to evaluate the brand Purchase Brand loyalty (or brand equity) A Manager‘s Goal must be to Build Brand Equity A brand can only be strong if it has a strong supply of loyal customers Brand equity therefore can be defined as a measure of strength of consumers‘ attachment to a brand. Brand Equity Purpose and Goal of the Model Brand equity is a complex system and difficult to manage and understand. A simulation model will be used, to identify key leverage points to understand the behavior of the system, thus reduce uncertainty in decision making. The Brand Management Model BrandManagementA ConceptualizedSector Overview Vensim? Brand Awareness/Effectiveness Sector Model Behavior Model Behavior Weakness of the Model Does