Brand A name, term, sign, symbol, package design, or combination of these elements intended to identify and distinguish a product or service from its competitors

Brand Consumers identify the source of a product signal quality reduce risk and search cost Product Makers assign responsibility

Key Concepts: 1. Brand Equity 2. Brand Extensions 6/24/2018 Brand Management Key Concepts: 1. Brand Equity 2. Brand Extensions

6/24/2018 Brand Equity Set of brand assets and liabilities linked to a brand’s name and symbol A preferred brand name is a valuable strategic asset/resource. Generates value to the customer that can emerge as: preference beyond objectively rated attributes enhanced brand loyalty

Brand Equity The value that a firm aims to generate with its marketing programs for a brand The accrued marketing and financial value, both tangible and intangible Values of brand Equity Charge premium price Maintain higher awareness of the product Reduces perceived risk Simplifies the decision process

Brand Equity Allows Brand Extensions 6/24/2018 Brand Equity Allows Brand Extensions Using the same brand name for a new product or form 40% of all new products 2/3 of all successful new supermarket products Many different types of brand extensions

Brand Extension Strategies 6/24/2018 Brand Extension Strategies Line extension extending existing brand name in same category Most “new products” are line extensions Courtyard by Marriott Kleenex scented tissues Euro-Disney

Brand Extension Strategies 6/24/2018 Brand Extension Strategies Franchise or brand extension existing brand name in a new category Domino’s (Oreos) Desert Pizza Gerber Life Insurance (for child) Pillsbury Microwave Popcorn Sunkist Vitamin C tablets ESPN – The Magazine

Best Situations for Successful Brand Extensions 6/24/2018 Best Situations for Successful Brand Extensions Strong brand associations exist. These associations provide a point of differentiation and an advantage for the extension. Extension may help the core brand by reinforcing the key associations (e.g., Sunkist Vitamins) avoiding negative associations Adding to brand name recognition

Summary about Extending Product Life Cycle: Decline May Be Forestalled 6/24/2018 (New users or new uses)

6/24/2018 Summary Good marketing builds brands that are the prime financial assets of the firm Growing and maintaining brand equity is the key to successful marketing Brand extensions trade off the brand equity of the parent/mother brand Success depends on fit of the extended product with appropriate positive associations attributed to parent brand

Team Any questions?