Marketing Management, 14th ed 10 Creating Brand Equity Marketing Management, 14th ed

What is a Brand? A brand is a name, term, sign, symbol or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 9-2

The Role of Brands Identify the maker Simplify product handling Organize accounting Offer legal protection Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 9-3

The Role of Brands (cont..) Signify quality Create barriers to entry Serve as a competitive advantage Secure price premium Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 9-4

What is Branding? Branding is endowing products and services with the power of the brand. Branding can be done to products, services, places, stores, persons, organizations etc. Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 9-5

What is Brand Equity? Brand equity is the added value endowed on products and services, which may be reflected in the way consumers, think, feel, and act with respect to the brand. Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 9-6

Brand Equity Models Brand Asset Valuator BRANDZ Brand Resonance Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 9-7

BAV Key Components Energized Differentiation: Degree of Difference Relevance: Appropriateness for consumer Esteem: How much respected the brand is? Knowledge: Awareness about the brand Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 9-8

BRANDZ: Brand Dynamics Pyramid Strong Relationship Bonding: Nothing else beats it Advantage: Does it offer something better than the others? Performance: Can it deliver? Relevance: Does it offer me something? Presence: Do I Know about it? Weak Relationship Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 9-9

Brand Resonance Pyramid Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 9-10

Building Brand Equity Choosing Brand Elements Product/Service Accompanying Marketing Activities Meaning Transfer through other 3Ps Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 9-11

Brand Elements Brand names URLs Slogans Elements Logos Characters Symbols Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 9-12

Brand Element Choice Criteria Memorable Meaningful Likeability Transferable Adaptable Protectable Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 9-13

Designing Holistic Marketing Activities Brand Contact Integrated Marketing Internal Branding Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 9-14

Internal Branding Choose the right moment Link internal and external marketing Bring the brand alive for employees Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 9-15

Measuring Brand Equity Brand Audits Brand Tracking Brand Valuation Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 9-16

Managing Brand Equity Brand Reinforcement Brand Revitalization Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 9-17

Devising a Branding Strategy: Branding Strategy/Brand Achitecture Develop new brand elements Apply existing brand elements Use a combination of old and new elements 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 Video icon links to snippet on Swiss Army’s brand extensions. Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 9-19

Brand Extension: When a firm uses an established brand to introduce a new product, the product is called a brand extension. Sub-brand: When marketers combine a new brand with an existing brand, the brand extension can be called a sub-brand. Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 9-20

Parent Brand: The existing brand that gives birth to a brand extension or sub-brand is the parent brand. Master Brand/Family Brand: If the parent brand is already associated with multiple products through brand extensions, it can be called a master brand/family brand. Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 9-21

Brand Extension Categories Line extension: Here the parent brand covers a new product within a product category it currently serves with the help of flavors, forms, colors etc. Category extension: Here marketers use the parent brand to enter a different product category, such as Honda is covering automobiles, motorcycles, lawn mowers etc. Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 9-22

Brand Line: It consists of all products- originals as well as line and category extension-sold under a particular brand. Brand Mix/Brand Assortment: It is the set of all brand lines that a particular seller makes. Branded Variants: These are specific brand lines supplied to specific retailers or distribution channels. Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 9-23

Licensed Product: It is the product whose brand name has been licensed to other manufacturers that actually make the product. Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 9-24

Branding Decision: Alternative Branding Strategies Individual or Separate Family Brand names Corporate Umbrella or Company Brand Name Sub-Brand Name Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 9-25

Reasons for Brand Portfolios Increasing shelf presence and retailer dependence in the store Attracting consumers seeking variety Increasing internal competition within the firm Yielding economies of scale in advertising, sales, merchandising, and distribution Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 9-26

Brand Roles in a Brand Portfolio Flankers Cash Cows Low-end Entry-level High-end Prestige Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 9-27