9/8/2025

Chapter Questions
1  What is a brand and how does branding
work?
 What is brand equity?
9  How is brand equity built, measured, and
Creating Brand Equity managed?
 What are the important decisions in
developing a branding strategy?

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Steps in
What is a Brand?
Strategic Brand Management
A brand is a name, term, sign, symbol or
 Identifying and establishing brand design, or a combination of them, intended
positioning to identify the goods or services of one seller
 Planning and implementing brand or group of sellers and to differentiate them
marketing from those of competitors.
 Measuring and interpreting brand
performance
 Growing and sustaining brand value

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The Role of Brands The Role of Brands

 Identify the maker  Signify quality

 Simplify product handling  Create barriers to entry
 Organize accounting  Serve as a competitive advantage
 Offer legal protection  Secure price premium

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What is Branding? What is Brand Equity?

Branding is endowing products Brand equity is the added value endowed

and services with the on products and services, which may be
reflected in the way consumers, think, feel,
power of the brand.
and act with respect to the brand.

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Advantages of Strong Brands Virgin Atlantic’s Brand Promise

 Improved  Larger margins

perceptions of  More inelastic
product consumer response
performance  Greater trade
 Greater loyalty cooperation
 Less vulnerability to  Increased marketing
competitive communications
marketing actions effectiveness
 Less vulnerability to  Possible licensing
crises opportunities
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What is a Brand Promise? Brand Equity Models

A brand promise is the marketer’s vision of

what the brand must be and do for consumers. Brand Asset Valuator (BAV)

Brandz

Brand Resonance

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Figure 9.2 Universe of

Figure 9.1 BAV Model
Brand Performance

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Figure 9.3 Figure 9.4 Brand Resonance

Brand Dynamics Pyramid Pyramid

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MasterCard Created An
Brand Building Blocks
Emotional Bond to its Brand

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Drivers of Brand Equity Brand Elements

 Brand names  Symbols

 Slogans  Logos
 Characters  URLs

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Brand Element Choice Criteria Slogans

Memorable
 Like a good  We try harder
Meaningful neighbor, State  We’ll pick you up
Farm is there  Nextel – Done
Likeable  Just do it  Zoom Zoom
 Nothing runs like a I’m lovin’ it
Transferable 
Deere
 Innovation at work
Adaptable  Save 15% or more
in 15 minutes or  This Bud’s for you
Protectable less  Always low prices

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Figure 9.5 Secondary Sources of

Internal Branding
Brand Knowledge
 Choose the right moment
 Link internal and external marketing
 Bring the brand alive for employees

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Figure 9.6 Brand Value Chain Measuring Brand Equity

 Brand audits
 Brand tracking
 Brand valuation

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Table 9.4 Figure 9.7 Interbrand Brand

The 10 Most Valuable Brands Valuation Method

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Managing Brand Equity Devising a Branding Strategy

 Brand reinforcement  Develop new brand elements

 Brand revitalization  Apply existing brand elements
 Use a combination of old and new

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Branding Terms Reasons for Brand Portfolios

 Brand line  Line extension

 Brand mix  Category extension
 Brand extension  Branded variants
 Sub-brand  Licensed product
 Parent brand
 Family brand

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Brand Roles in a Brand Portfolio Brand Extensions

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

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For Review

 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?

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9-35