CHAPTER:15 Closing Observations

Learning Objectives Understand the six future brand imperatives Identify the ten criteria for the brand report card Outline the seven deadly sins of brand management

Strategic Brand Management Guidelines Summary of Customer-Based Brand Equity Framework Tactical Guidelines

Summary of Customer-Based Brand Equity Framework Sources of brand equity Outcomes of brand equity Summary of customer-based brand equity framework Strategic brand management: Includes the design and implementation of marketing programs and activities to build, measure, and manage brand equity. Brand awareness: Related to the strength of the brand node or trace in memory, as reflected by consumers’ ability to recall or recognize the brand under different conditions. Brand image: Consumer perceptions of and preferences for a brand, measured by the various types of brand associations held in memory.

Figure 15.1 - Summary of Brand Knowledge

Sources of Brand Equity Dimensions of brand associations depend on three factors: Strength Favorability Uniqueness Sources of brand equity Strength - Function of both the amount, or quantity, of processing that information initially receives, and the nature, or quality, of the processing. Favorability - Favorable associations for a brand are those that are desirable to customers, successfully delivered by the product, and conveyed by the supporting marketing program. Uniqueness - To create the differential response that leads to customer-based brand equity, marketers need to associate unique, meaningful points-of-difference to the brand that provide a competitive advantage and a reason for consumers to buy it.

Figure 15.2 - Determinants of Desired Brand Knowledge Structures

Outcomes of Brand Equity Benefits for the brand Improved perceptions of product performance Greater customer loyalty Less vulnerability to competitive marketing actions Less vulnerability to marketing crises Higher margins

Outcomes of Brand Equity More inelastic consumer response to price increases More elastic consumer response to price decreases Greater trade cooperation and support Increased marketing communication effectiveness Possible licensing opportunities Additional brand extension opportunities

Tactical Guidelines Building Brand Equity Measuring Brand Equity Managing Brand Equity

Figure 15.3 - Building Customer-Based Brand Equity

Figure 15.4 - Guidelines for Building Brand Equity

Building Brand Equity A dominant theme across many of these different ways to build brand equity is the importance of: Complementarity: Choosing different brand elements and supporting marketing activities Potential contribution to brand equity of one compensates for the shortcomings of others Consistency: Across elements helps create the highest level of awareness and the strongest and most favorable associations possible

Measuring Brand Equity A set of research procedures designed to provide timely, accurate, and actionable information for marketers about their brands Implementing a brand equity measurement system has three steps: Conducting brand audits Designing brand tracking studies Establishing a brand equity management system Measuring brand equity The dominant theme in measuring brand equity is the need to employ a full complement of research techniques and processes that capture as much as possible the richness and complexity of brand equity. Multiple techniques and measures are needed to tap into all the various sources and outcomes of brand equity, to help interpret brand equity research, and to ensure that actionable information is obtained at the right time.

Figure 15.5 - Guidelines for Measuring Brand Equity

Figure 15.6 - Managing Customer-Based Brand Equity

Figure 15.6 - Managing Customer-Based Brand Equity

Figure 15.7 - Guidelines for Managing Brand Equity

Managing Brand Equity The dominant themes in managing brand equity: The importance of maintaining balance in marketing activities Making moderate levels of change in the marketing program over time

What Makes a Strong Brand? Understand brand meaning and market appropriate products and services in an appropriate manner Properly position the brand Provide superior delivery of desired benefits Employ a full range of complementary brand elements, supporting marketing activities, and secondary associations

What Makes a Strong Brand? Embrace integrated marketing communications and communicate with a consistent voice Measure consumer perceptions of value and develop a pricing strategy accordingly Establish credibility and appropriate brand personality and imagery

What Makes a Strong Brand? Maintain innovation and relevance for the brand Strategically design and implement a brand architecture strategy Implement a brand equity management system Ensures that marketing actions properly reflect the brand equity concept

Figure 15.8 - Seven Deadly Sins of Brand Management

Figure 15.9 - Future Brand Imperatives Fully and accurately factor the consumer into the branding equation Successful brands create mental structures and knowledge in consumers’ minds that cause them to favor the brand. Consumer insights are used to skillfully manage customers and brands and to maximize brand equity and customer equity. Customer diversity - Due to customer diversity and increasing segmentation, concepts such as permission marketing, one-to-one marketing, and brand journalism are being introduced. Customer empowerment - The emergence of the Internet and social media have given consumers the ability, to seek information and arrive at preferred choices about products, services, and brands. Go beyond product performance and rational benefits Competitive advantages and brand strength will come from having better-designed products and services than competitors, providing a wider range of compelling consumer benefits as a result. Make the whole of the marketing program greater than the sum of the parts The art and science of integrated marketing is to optimally design and implement any one channel or communication activity so that it creates not only direct effects, but also indirect effects that increase the impact of other channel or communication options. Social media - An online, interactive communications programs typically includes some or all of the following: a well-designed Web site; e-mails; banner, rich media, or other forms of electronic ads; search advertising; and social media.

Figure 15.9 - Future Brand Imperatives Understand where you can take a brand (and how) Growth requires a well implemented brand architecture strategy that clarifies three key issues: The potential of a brand in terms of the breadth of its “market footprint”. The types of product and service extensions that would allow a brand to achieve that potential. The brand elements, positioning, and images that identify and are associated with all the offerings of a brand in different markets and to different consumers. Do the “right thing” with brands Cause marketing - Effective cause marketing programs can accomplish a number of objectives for a brand: build brand awareness, enhance brand image, establish brand credibility, evoke brand feelings, create a sense of brand community, and elicit brand engagement. Protecting brand equity - Brands are allowed to profitably grow while preserving close bonds with consumers and benefits to society as a whole. Take a big picture view of branding effects. Know what is working (and why) Justifying brand investments - Any particular marketing activity may increase the breadth or depth of brand awareness; establish or strengthen performance-related or imagery-related brand associations; elicit positive judgments or feelings; create stronger ties or bonds with the brand; initiate brand-related actions such as search, word-of-mouth, and purchase. Its effects may be enduring as well as short-term. Achieving deeper brand understanding - The stronger the brand, the more power brand marketers have with distributors and retailers, and the easier it is to implement marketplace programs to capitalize on brand equity. Extracting proper price premiums that reflect the value of the brand—and not over or underpricing—is one of the most critical financial considerations for branding. Finding the branding sweet spot Brand balance New capabilities for brand marketers

To Sum Up.. Effective brand management requires consistent application of guidelines across all aspects of the marketing program Each branding situation and application is unique and requires careful scrutiny and analysis How best to apply, or perhaps in some cases ignore various recommendations and guidelines