1. CHAPTER:15 Closing Observations

2. 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

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

4. 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.

5. Figure 15.1 - Summary of Brand Knowledge

6. 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.

7. Figure 15.2 - Determinants of Desired Brand Knowledge Structures

8. 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

9. 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

10. Tactical Guidelines Building Brand Equity Measuring Brand Equity
Managing Brand Equity

11. Figure 15.3 - Building Customer-Based Brand Equity

12. Figure 15.4 - Guidelines for Building Brand Equity

13. 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

14. 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.

15. Figure 15.5 - Guidelines for Measuring Brand Equity

16. Figure 15.6 - Managing Customer-Based Brand Equity

17. Figure 15.6 - Managing Customer-Based Brand Equity

18. Figure 15.7 - Guidelines for Managing Brand Equity

19. 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

20. 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

21. 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

22. 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

23. Figure 15.8 - Seven Deadly Sins of Brand Management

24. 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; s; banner, rich media, or other forms of electronic ads; search advertising; and social media.

25. 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

26. 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