Brand Equity 2010

Understanding Brand Equity Key Concepts Brand – what and how Understanding Brand Equity

Copyright 2007, Prentice-Hall Inc.

Brand Simply put, a brand is a promise. By identifying and authenticating a product or service it delivers a pledge of satisfaction and quality. A set of assets (or liabilities) linked to a brand's name and symbol that adds to (or subtracts from) the value provided by a product or service…

Brand A brand is the most valuable real-estate in the world, a corner of the consumer's mind. A brand is a collection of perceptions in the mind of the consumer.

What is a Brand? Name, logo, slogan and/or design Embodiment of all the information connected to a product or service Associations and expectations about a product or service TRUST

Copyright 2007, Prentice-Hall Inc.

The Power of a Strong Brand MRI Study Strong brands produced activity in the part of the brain associated with: Positive emotions Self-identification Rewards Weak brands provoked activity in the parts of the brain associated with: Negative emotion Memory (requiring brain to work harder) Cars and insurance – well known (Volkswagen) and lesser known (Seat)

Marketing Beyond the Monkey Stimulus, response End of supply chain Consumption as improving physical Passive recipient Beyond Creating meaning Beginning Consumption as improving life Active creator

“Whenever life becomes unbearable, man has found a new way to look upon it” Theodore Zeldin, historian

“We tell ourselves stories in order to live “We tell ourselves stories in order to live. Good stories make the world more bearable.” Joan Didion

Progression to Brands From Storytelling, To Mass Media

To Brands Brands symbolize shorthand material representing certain ideas or ideals that seem important to us at the time

Marketing Beyond the Monkey Growth lies not in making more ‘stuff’, but in making ‘stuff’ more meaningful

Brands as Belief “As human beings, we are hard-wired to believe.” Patrick Hanlon, Primal Branding Brands are belief systems Believing is belonging “In a parity world, my best friend wins”

Maslow’s Hierarchy of Need

Belief System Creation Story Creed Leader Sacred Words Icons Pagans Rituals

Belief System Creation Story Leader Creed Sacred Words Pagans Icons Rituals

The Creation Story

The Creed Core Set of Principles

The Creed Starbucks Coffee Company provides an uplifting experience that enriches people’s lives one moment, one human being, one extraordinary cup of coffee at a time.

Icons Sensory Imprints that Instantly Summon the Brand Essence Sound

The Rituals The repeated interactions that people have with your enterprise The meaningful repeated points of contact between you and your guest, customer, client or target market

The Pagans, or Nonbelievers The Uncola Mac and PC

Sacred Words The language. If you know the language, you belong. Quad Venti Skinny with Whip Iced Caramel Macchiato Ttyl g2g2wk lyl USN – probs, jakes, sip, gaf, gaffleton pie Probs – a sarcastic probably Jakes – comes from joking. Means not serious. Can’t be taken seriously. Those shoes are jakes. Sip – a dis Gaf – to not care. I have a math test tomorrow – gaf. Add the pie and it is extreme.

The Leader Leader as catalyst, risk taker, visionary, iconoclast against the odds

Link to the movie is behind the photo

Brand For brand, use TED Talk: http://www.ted.com/talks/view/id/848

Brand Value to Consumers Benefits Received Can be: Real/Tangible Perceived/Intangible All relative to competitors Price Paid Relative to competitors for the Value always from the consumer’s perspective

Brand Equity Brand equity—the added value endowed on products and services, reflected in how customers think, feel, and act with respect to the brand, as well as in the prices, market share, and profitability the brand commands for the firm.

Customer-based Brand Equity Customer-based brand equity—the differential effect that brand knowledge has on consumer response to that brand’s marketing. Arises from customer response Differential response is reflected in perceptions, preferences, and behaviors

T-Mobile Heathrow http://youtu.be/NB3NPNM4xgo?hd=1

Lebron James http://www.youtube.com/watch?v=cdtejCR413c http://www.thestar.com/sports/basketball/article/8 82538--lebron-james-and-the-era-of-confessional- advertising?bn=1 http://adage.com/columns/article?article_id=1467 76

Measurement of Brand Equity Economic value of the brand asset itself The price premium (to the end consumer or the trade) that the brand commands The long term consumer loyalty the brand evokes The market share gains that result

Demand Curve Shift The power of the brand to shift the consumer demand curve (to achieve a price premium or a market share gain).

Brand Equity Pyramid Most enduring but hardest to deliver Beliefs & Values Benefits Easy to deliver and to imitate Features & Attributes

Brand Equity Pyramid Salience Performance Imagery Judgments Feelings Resonance Identity: Who are you? Meaning: What are you? Response: What about you? Relationship: What about you and me? Brand Equity Pyramid Marketing Management July-Aug. 2001 Kevin Keller – Tuck - Building Customer-based Brand Equity

Subdimensions of Brand Building Blocks Salience Category Identification Needs Satisfied Performance Primary Characteristics Secondary Features Product Reliability Durability and Serviceability Service Effectiveness Efficiency and Empathy Style and Design Price Imagery User Profiles Purchase and Usage Situations Personality and Values History, Heritage, and Experience Judgments Quality Credibility Consideration Superiority Feelings Warmth Fun Excitement Security Social Approval Self-Respect Resonance Loyalty Attachment Community Engagement Subdimensions of Brand Building Blocks Who are you? What are you? What about you? What about you and me?

Brand Equity Pyramid Building Customer-based Brand Equity

Brand Development Strategies

Brand Development Line extension: Brand extension: introduction of additional items in a given product category under the same brand name (e.g., new flavors, forms, colors, ingredients, or package sizes). Brand extension: using a successful brand name to launch a new or modified product in a new category.