2. 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

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

4. Key Concepts: 1. Brand Equity 2. Brand Extensions
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Brand Management
Key Concepts:
1. Brand Equity
2. Brand Extensions

5. 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

6. 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

7. Brand Equity Allows Brand Extensions
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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

8. Brand Extension Strategies
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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

9. Brand Extension Strategies
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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

10. Best Situations for Successful Brand Extensions
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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

11. Summary about Extending Product Life Cycle: Decline May Be Forestalled
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(New users or new uses)

12. 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

13. Team
Any questions?