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Building & Managing Brand Equity
Chapter Nine
Copyright © 2007 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without the express written permission of the copyright owner is unlawful. Requests for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein.
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BrandAssociations
BrandLoyalty
Brand Awareness
BrandEquity
Brand equity—Assets and liabilities connected to the brand
Figure 9.1
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sWorld’s Most Valuable Brands
20052005 2008 2008 20092009
1. Coca-Cola
2. Microsoft
3. IBM
4. GE
5. Intel
6. Nokia
7. Disney
8. McDonald’s
9. Marlboro
10.Mercedes
1. Coca-Cola
2. IBM
3. Microsoft
4. GE
5. Nokia
6. Toyota
7. Intel
8. McDonald’s
9. Disney
10.GoogleSource: Interbrand Surveys, Apr. 2008 & Sept. 2009
1. Coca-Cola
2. IBM
3. Microsoft
4. GE
5. Nokia
6. McDonald’s
7. Google
8. Toyota
9. Intel
10.Disney
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Brand Identity Principles• Multiple dimensions—not just a three word
phrase• No restrictions—beyond attributes/benefits• Dimensions are prioritized
– Core identity—more important elements• Source of differentiation, resonance, and strategy• Drive major programs, initiatives
– Extended identity provides texture and completeness—helps determine what is on-brand
• Essence—Optional • Internal communication
– vs. position/tagline—what we communicate externally now
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Why Brand Identity?
ExternallyShape our brand imageProvide basis for relationships and choice
Internally Stimulate programs and prioritize
initiativesInspire people
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Brand Identity Potential Dimensions
• Attributes/benefits/branded differentiators• Personality• Organizational associations• Emotional & self-expressive benefits• Product class relevance-scope
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SimpleAs Dell
Value forPerformance
Customization
Incredible ServiceDell Responds
Direct ModelLatest
Technology
Close to CustomerUnderstands needs• Equipment• Communication
Personality Competent, Successful Serious (not Apple) Approachable
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Identify Core Identity Elements
Spirit of Excellence
Worldlybut Informal
TechnologyThat Fits
Core Identity
Confident, Competent
SupportWorld HealthGlobal Network
Of Local Experts
OpenCommunicator
TeamSolutions
Core—Most Important
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The Brand Essence
Spirit of Excellence
Worldlybut Informal
TechnologyThat Fits
Core Identity
Commitment toExcellence—anytime, anywhere, whatever it
takes
Confident, Competent
SupportWorld HeathGlobal Network
Of Local Experts
OpenCommunicator
TeamSolutions
A compact theme or concept that representsmuch or all of the core identity
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The Brand Essence
Essence: A compact theme or concept that representsmuch or all of the core identity—for internal communication
vs. Tagline: Summarizes the position—for external communicationTagline can be but rarely is the essence Do you Yahoo? Did somebody say McDonald’s Like a rock (Chevy Trucks)
Essence can be understated Just works better focused on functional benefits German engineering (VW) Casual luxury (Banana Replubic) focused on emotional benefits Power to be your best (Apple) Do more (American Express) Note the dual meaning
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Nike Core Identity & Essence
Brand Identity Model™
Performingat Your
Best
• Brand Essence– Performing at Your Best
• Core Identity– Excellence/Winning– Exhilaration– Individual Success– Technological Advancement
Illustrative
ExhilarationExcellence
TechnologicalAdvancement
IndividualSuccess
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Brand Identity Objectives
• Resonate• Differentiate or reflect
points of parity• Have or Gain
Credibility• Reflect Strategy• Have Clarity
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Resonate with Customers
TeamSolutions
Resonance—it should matter to customers & add value e.g. Customer now demand total solutions
Close toCustomers
Geographically & Culturally
AnticipateNeeds
Customized Solutions
Collaborative
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Differentiation/Points of Parity
TeamSolutions
Collaborative
Differentiation—Unique or different assets and programs e.g. Multi-cultural staff
Parity—dimensions on which the brand needs to be perceived as adequate so that competitor brand strengths are neutralized
Close toCustomers
Geographically & Culturally
AnticipateNeeds
Customized Solutions
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Credibility—Proof Points & Strategic Imperatives
Proof points—Existing strengths and programs that provide credibility e.g. Have the organizational scope and capability to do it all
TeamSolutions
Close toCustomers
Geographically & Culturally
AnticipateNeeds
Customized Solutions
Collaborative
Strategic Imperative—Assets and Programs needed to deliver future credibilitye.g. Build incentives—team behavior and culture; reduce arrogance
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Positioning
Identity Rich Long-term
Position Focused Immediate
Depth Time Frame
Brand identityAspirational associationsCustomer promise
PositioningShort-term communication objectives
Positioning
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Key Learnings• Brand equity, a key asset for any business, consists of brand awareness,
brand loyalty, and brand associations.
• Awareness provides a sense of familiarity, credibility, and relevance in that customers are more likely to consider brands that are top-of-mind.
• A core loyal customer base reduces the cost of marketing, provides a barriers to competitors, supports a positive image, and provides time to respond to competitor moves.
• Brand associations can and should go beyond attributes and benefits to include such associations as brand personality, organizational intangibles, and product category associations.
• The brand identity represents aspirational associations. The most important of these, the core identity, should be supported by proof points and/or strategic imperatives and should be the driver of strategic programs including product development.
• While the identity represents long-term aspirational associations and is multidimensional, the position represents the short-term communication objectives and is more focused.