Creating Brand Equity Marketing Management, 13 th ed 10
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-2 Chapter Questions What is a brand and how does branding work? What is brand equity? How is brand equity built, measured, and managed? What are the important decisions in developing a branding strategy?
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-3 Steps in Strategic Brand Management Identifying and establishing brand positioning Planning and implementing brand marketing Measuring and interpreting brand performance Growing and sustaining brand value
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-4 The Role of Brands Identify the maker Simplify product handling Organize accounting Offer legal protection
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-5 The Role of Brands Signify quality Create barriers to entry Serve as a competitive advantage Secure price premium
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-6 Brand Knowledge Knowledge Thoughts Experiences Beliefs Images Feelings
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-7 Advantages of Strong Brands Table 10.1 Improved perceptions of product performance Greater loyalty Less vulnerability to competitive marketing actions Less vulnerability to crises Larger margins More inelastic consumer response Greater trade cooperation Increased marketing communications effectiveness Possible licensing opportunities
Brand Asset Evaluator (BAV) Key Components Energized Brand Strategy Brand Stature (A report card on past performance) Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-8 Differentiation Energy Relevance Esteem Knowledge
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-9 Figure 10.2 Brand Dynamics Pyramid Presence Do I Know about it? Relevance Does it offer me something? Performance Can it deliver? Advantage Does it offer better than others? Bonding Nothing else beats it! Strong Relationship Weak Relationship
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-10 Aaker Model Brand Identity Extended Identity Elements Brand Essence Core Identity Elements
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-11 Figure 9.4 Brand Resonance Pyramid
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-12 Drivers of Brand Equity Brand Elements (Brand Identities like logo) Marketing Activities (Shell/Caltex promoting) Meaning Transference (Brand spokesperson)
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-13 Brand Elements Elements Slogans Brand names URLs Logos Symbols Characters
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-14 Brand Element Choice Criteria Memorable (LG, Lux) Meaningful (Fair & Lovely, Close-up) Likeability (Seasons Canaola) Transferable (Amazon.com) Adaptable (Lifebuoy) Protectible (Xerox, Pampers)
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-15 Designing Holistic Marketing Activities Personalization (Nippon Paints) Integration (Blending 4 P’s) Internalization (Disney)
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-16 Figure 10.4 Secondary Sources of Brand Knowledge
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-17 Measuring Brand Equity Brand Audits (Health of the Brand) Brand Tracking (To facilitate day to day decisions) Brand Valuation (Value of Brand)
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-18 Branding Terms Brand line Brand mix Brand extension Sub-brand Parent brand Family brand Line extension Category extension Branded variants Licensed product Brand dilution Brand portfolio
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-19 Brand Naming Individual names (UL) Blanket family names (Tata) Separate family names (Dawod Group) Corporate name- individual name combo (Kellogg’s, Sony))
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-20 Brand Roles in a Brand Portfolio Flankers Low-end Entry-level High-end Prestige Cash Cows