Marketing Management, 12/eA South Asian Perspective

10 Creating

Brand Equity

9-2

Chapter Questions What is a brand and how does branding

work? What is brand equity? How is brand equity built, measured, and

managed? What are the important decisions in

developing a branding strategy?

9-3

Brand

A name, term, sign, symbolor design, or a combination of them,

intended to identify the goodsor services of one seller or group

of sellers and to differentiatethem from those of competitors.

9-4

Attributes of Strong Brands Excels at delivering

desired benefits Stays relevant Priced to meet

perceptions of value Positioned properly Communicates

consistent brand messages

Well-designed brand hierarchy

Uses multiple marketing activities

Understands consumer-brand relationship

Supported by organization Monitors sources of brand

equity

9-5

The Role of Brands

Identify the maker Simplify product

handling Organize accounting Offer legal protection

Signify quality Create barriers to

entry Serve as a

competitive advantage

Secure price premium

9-6

Branding

Endowing products and serviceswith the power of a brand.

9-7

Brand Equity

The differential effect that brandknowledge has on consumer

response to the marketing of that brand.

9-8

Brand Associations

Strong Unique Favorable

9-9

Marketing Advantages of Strong Brands Improved perceptions of

product performance Greater loyalty Less vulnerable to

competition Less vulnerable to crises Larger margins Inelastic consumer

response to price increases

Elastic consumer response to price decreases

Greater trade cooperation Increase in effectiveness

of IMC Licensing opportunities Brand extension

opportunities

9-10

Brand Promise

The marketer’s vision of whatthe brand must be and do for

Consumers.

9-11

Brand Equity Models

Brand Asset Valuator Aaker Model

BRANDZ Brand Resonance

9-12

Drivers of Brand Equity

Brand elements Marketing activities Meaning transference

9-13

Brand Elements

Brand names Slogans Characters

URLs Logos Symbols

9-14

Brand Element Choice Criteria

Memorable Meaningful Likeability

Transferable Adaptable Protectible

9-15

Slogans

Like a good neighbor, State Farm is there

Just do it Nothing runs like a

Deere Help is just around the

corner Save 15% or more in 15

minutes or less

We try harder We’ll pick you up Nextel – Done Zoom Zoom I’m lovin’ it Innovation at work This Bud’s for you Always low prices

9-16

Measuring Brand Equity

Brand audits Brand tracking Brand valuation

9-17

Interbrand’s Brand Equity Formula Brand earnings Brand sales Costs of sales Marketing costs Overhead expenses Remuneration of

capital charge Taxation

Brand strength Leadership (25%) Stability (15%) Market (10%) Geographic spread

(25%) Trend (10%) Support (10%) Protection (5%)

9-18

Managing Brand Equity

Brand reinforcement Brand revitalization Brand crises

9-19

Devising a Branding Strategy

Develop new brand elements Apply existing brand elements Use a combination of old and new

9-20

Branding Terms

Brand line Brand mix Brand extension Sub-brand Parent brand Family brand

Line extension Category extension Branded variants Licensed product Brand dilution Brand portfolio

9-21

Brand Naming

Individual names Blanket family names Separate family names Corporate name/individual name combo

9-22

Brand Roles in a Brand Portfolio

Flankers Cash cows Low-end entry-level High-end prestige