CREATING BRAND EQUITYPresented bySony Kusumasondjaja, SE., M.Com

What is Brand?A name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller to differentiate them for those of competitorsThe differences may be functional/rational, or more symbolic/emotional

To brand the product is to teach consumers:WHO THE PRODUCT ISWHAT THE PRODUCT DOESWHY CONSUMERS SHOULD CARE

The Role of BrandsBrands help to organize inventory and accounting recordsBrands help legal protection for unique features of the productBrand signal certain level of qualityBrands ease consumers to choose which products to buy

For successful branding Consumers must be convinced that there are meaningful differences among brands in the product categoryConsumers must not think that all brands in the category are the same

Consumer-Based Brand EquityThe differential effect that brand knowledge has on consumer response to the marketing of that brandA brand is said to have positive customer-based brand equity when consumers react more favorably to a product and the way it is marketed when the brand is identified as compared to when it is not

3 Key Issues Brand equity arises from differences in consumer responseThe differences in response are a result of consumers knowledge about the brandThe differential response by consumers that makes up the brand equity is reflected in perceptions, preferences, and behavior

6 Criteria in Choosing Brand ElementsMEMORABLEMEANINGFULLIKEABILITYTRANSFERABLEADAPTABLEPROTECTIBLE

Branding Strategy (1)BRAND EXTENTIONS(Parent vs Sub Brand)LINE EXTENTIONSCATEGORY EXTENTIONSBRAND LINEBRAND MIX

BRANDING STRATEGIESINDIVIDUAL NAMESBLANKET FAMILY NAMESSEPARATE FAMILY NAMES FOR ALL PRODUCTSCORPORATE NAME COMBINED WITH INDIVIDUAL PRODUCT NAMES

Advantages of Brand ExtensionsNew Product SuccessPositive Feedback Effects

Disadvantages of Brand ExtensionsBrand dilutionIt harms the parent brand imageCannibalization effect

Reasons for introducing multiple brands in a categoryTo increase shelf presenceTo attract consumers seeking variety who may otherwise have switched to another brand To increase internal competition within the firmTo yield economies of scale in ads, sales, merchandising, and physical distribution