Strategic Brand
Management
Building, Measuring, and
Managing Brand Equity
Fifth Edition
Kevin Lane Keller
Tuck School of Business
Dartmouth College
Vanitha Swaminathan
Katz Graduate School of Business
University of Pittsburgh
BRIEF CONTENTS
PART I Opening Perspectives 1
CHAPTER 1 Brands and Brand Management 1
PART II Developing a Brand Strategy 37
CHAPTER 2 Customer-Based Brand Equity and Brand Positioning 37
CHAPTER 3 Brand Resonance and the Brand Value Chain 76
PART III Designing and Implementing Brand Marketing Programs 111
CHAPTER 4 Choosing Brand Elements to Build Brand Equity 111
CHAPTER 5 Designing Marketing Programs to Build Brand Equity 147
CHAPTER 6 Integrating Marketing Communications to Build Brand Equity 184
CHAPTER 7 Branding in the Digital Era 219
CHAPTER 8 Leveraging Secondary Brand Associations to Build Brand Equity 261
PART IV Measuring And Interpreting Brand Performance 297
CHAPTER 9 Developing a Brand Equity Measurement and Management
System 297
CHAPTER 10 Measuring Sources of Brand Equity: Capturing Customer
Mind-Set 331
CHAPTER 11 Measuring Outcomes of Brand Equity: Capturing Market
Performance 370
PART V Growing and Sustaining Brand Equity 395
CHAPTER 12 Designing and Implementing Brand Architecture Strategies 395
CHAPTER 13 Introducing and Naming New Products and Brand Extensions 438
CHAPTER 14 Managing Brands Over Time 481
CHAPTER 15 Managing Brands Over Geographic Boundaries and Market
Segments 516
PART VI Closing Perspectives 549
CHAPTER 16 Closing Observations 549
vii
CONTENTS
Preface xxi
About the Authors xxix
PART I Opening Perspectives 1
CHAPTER 1 Brands and Brand Management 1
Preview 2
What Is a Brand? 2
Brand Elements 2
Brands versus Products 3
BRANDING BRIEF 1-1: Coca-Cola’s Branding Lesson 5
Why Do Brands Matter? 6
Consumers 6
Firms 7
Can Anything Be Branded? 8
BRANDING BRIEF 1-2: Branding Commodities 9
Physical Goods 10
THE SCIENCE OF BRANDING 1-1: History of Branding 10
THE SCIENCE OF BRANDING 1-2: Understanding Business-to-Business Branding 11
Services 12
BRANDING BRIEF 1-3: Adobe 13
Retailers and Distributors 14
Digital Brands 14
People and Organizations 16
Sports, Arts, and Entertainment 17
BRANDING BRIEF 1-4: Place Branding 19
Geographic Locations 19
Ideas and Causes 19
What Are the Strongest Brands? 19
THE SCIENCE OF BRANDING 1-3: On Brand Relevance and Brand Differentiation 21
Branding Challenges and Opportunities 22
Unparalleled Access to Information and New Technologies 22
Downward Pressure on Prices 22
Ubiquitous Connectivity and the Consumer Backlash 23
Sharing Information and Goods 23
Unexpected Sources of Competition 24
Disintermediation and Reintermediation 24
Alternative Sources of Information about Product Quality 25
Winner-Takes-All Markets 25
Media Transformation 26
The Importance of Customer-Centricity 27
The Brand Equity Concept 28
Strategic Brand Management Process 29
Identifying and Developing Brand Plans 29
Designing and Implementing Brand Marketing Programs 29
ix
x CONTENTS
Measuring and Interpreting Brand Performance 30
Growing and Sustaining Brand Equity 31
Review 31
Discussion Questions 32
BRAND FOCUS 1.0: Unlocking the Secrets of Digital Native Brands 32
Notes 34
PART II Developing a Brand Strategy 37
CHAPTER 2 Customer-Based Brand Equity and Brand Positioning 37
Preview 38
Customer-Based Brand Equity 38
Defining Customer-Based Brand Equity 38
Brand Equity as a Bridge 39
Making a Brand Strong: Brand Knowledge 41
Sources of Brand Equity 42
Brand Awareness 42
Brand Image 46
Identifying and Establishing Brand Positioning 47
Basic Concepts 47
Target Market 48
Nature of Competition 51
Points-of-Parity and Points-of-Difference 52
BRANDING BRIEF 2-1: Subaru Finds Its Groove 52
Positioning Guidelines 54
Defining and Communicating the Competitive Frame of Reference 54
Choosing Points-of-Difference 55
Establishing Points-of-Parity and Points-of-Difference 56
BRANDING BRIEF 2-2: Positioning Politicians 57
Straddle Positions 58
Updating Positioning over Time 59
THE SCIENCE OF BRANDING 2-1: Brand Values Pyramid 61
Developing a Good Positioning 63
Defining a Brand Mantra 63
Brand Mantras 63
BRANDING BRIEF 2-3: Nike Brand Mantra 64
BRANDING BRIEF 2-4: Disney Brand Mantra 65
THE SCIENCE OF BRANDING 2-2: Branding Inside the Organization 67
Review 67
Discussion Questions 68
BRAND FOCUS 2.0: The Marketing Advantages of Strong Brands 68
Notes 70
CHAPTER 3 Brand Resonance and the Brand Value Chain 76
Preview 77
Building a Strong Brand: The Four Steps of Brand Building 77
Brand Salience 77
Brand Performance 82
Brand Imagery 83
CONTENTS xi
THE SCIENCE OF BRANDING 3-1: How Customer Experiences Define a Brand 86
Brand Judgments 87
Brand Feelings 89
Brand Resonance 90
BRANDING BRIEF 3-1: Building Brand Communities 91
Brand-Building Implications 92
BRANDING BRIEF 3-2: How Digital Platform-Based Brands Create Customer Engagement 97
The Brand Value Chain 98
Value Stages 99
Implications 101
Review 102
Discussion Questions 104
BRAND FOCUS 3.0: Creating Customer Value 104
Notes 107
PART III Designing and Implementing Brand Marketing Programs 111
CHAPTER 4 Choosing Brand Elements to Build Brand Equity 111
Preview 112
Criteria for Choosing Brand Elements 112
Memorability 113
Meaningfulness 113
Likability 113
Transferability 113
Adaptability 114
THE SCIENCE OF BRANDING 4-1: Counterfeit Business Is Booming 115
Protectability 116
Options and Tactics for Brand Elements 117
Brand Names 117
URLs 123
Logos and Symbols 124
Characters 125
BRANDING BRIEF 4-1: StarKist’s Charlie the Tuna 126
Slogans 128
BRANDING BRIEF 4-2: Updating Betty Crocker 128
Jingles 131
Packaging 132
Putting It All Together 136
BRANDING BRIEF 4-3: Do-Overs with Brand Makeovers 136
Review 138
Discussion Questions 139
BRAND FOCUS 4.0: Legal Branding Considerations 139
Notes 142
CHAPTER 5 Designing Marketing Programs to Build Brand Equity 147
Preview 148
New Perspectives on Marketing 148
Integrating Marketing 150
xii CONTENTS
BRANDING BRIEF 5-1: Yeti Is the “Cooler” Brand 150
Personalizing Marketing 151
Reconciling the Different Marketing Approaches 156
Product Strategy 156
Perceived Quality 156
Managing Customers Post-Purchase 157
Pricing Strategy 159
THE SCIENCE OF BRANDING 5-1: Understanding Consumer Price Perceptions 160
Consumer Price Perceptions and Setting Prices 160
Summary 165
Channel Strategy 166
Channel Design 166
THE SCIENCE OF BRANDING 5-2: Research on Omnichannel 168
Indirect Channels 168
BRANDING BRIEF 5-2: Chew on This: How Milk-Bone Brushing Chews Connected with Customers 170
Direct Channels 172
Online Strategies 174
Summary 174
Review 175
Discussion Questions 175
BRAND FOCUS 5.0: Private-Label Strategies and Responses 176
Notes 179
CHAPTER 6 Integrating Marketing Communications to Build Brand Equity 184
Preview 185
The New Media Environment 186
Challenges in Designing Brand-Building Communications 186
Role of Multiple Communications 188
Four Major Marketing Communication Options 188
Advertising 188
THE SCIENCE OF BRANDING 6-1: The Importance of Database Marketing 195
Promotion 198
Online Marketing Communications 200
Events and Experiences 200
BRANDING BRIEF 6-1: Brand Building via the X Games 203
Brand Amplifiers 205
Public Relations and Publicity 205
Word-of-Mouth 206
Developing Integrated Marketing Communication Programs 206
Criteria for IMC Programs 207
THE SCIENCE OF BRANDING 6-2: Coordinating Media to Build Brand Equity 209
Using IMC Choice Criteria 211
Review 211
Discussion Questions 212
BRAND FOCUS 6.0: Empirical Generalizations in Advertising 213
Notes 215
CONTENTS xiii
CHAPTER 7 Branding in the Digital Era 219
Preview 220
Key Issues for Branding in the Digital Era 220
Changes in the Consumer Decision Journey 220
Growth of Online Retailing 222
BRANDING BRIEF 7-1: The Phenomenal Rise of Amazon 222
Advertising and Promotions Using Digital Channels 224
BRANDING BRIEF 7-2: Igniting a Digital Firestorm 224
One-to-Many to Many-to-Many Channels 225
Increase in Consumer Touchpoints 226
Increase in Data Availability 226
Digital Personalization 227
Loss of Control over Brand Message and Co-Creation of Brand Meaning 229
User Experience Is the Key to Digital Brand Success 231
THE SCIENCE OF BRANDING 7-1: Is Co-Creation of Brands and Products
Always Good? 231
Brands as Cultural Symbols 232
Brand Engagement 233
Brand Engagement Pyramid 234
Negative Brand Engagement 234
BRANDING BRIEF 7-3: Shaving the Price of Razors 235
THE SCIENCE OF BRANDING 7-2: Drivers of Brand Engagement 236
Digital Communications 236
Company Web Sites 238
E-mail Marketing 238
BRANDING BRIEF 7-4: Campaigning Using Clicks with Google AdWords 240
Overview of Social Media Paid Channels 242
Facebook 242
Twitter 245
Instagram 245
Pinterest 246
Video 246
Global Use of Social Media 247
BRANDING BRIEF 7-5: On Being Social in China 247
Mobile Marketing 248
BRANDING BRIEF 7-6: Turning Flight Delays into Marketing Opportunities 249
Influencer Marketing and Social Media Celebrities 250
Content Marketing 251
Guidelines for Good Content Marketing 251
Case Studies 252
Legal and Ethical Considerations 252
The Pros and Cons of Paid Channels and the Need for Integration 253
Brand Management Structure 254
Review 255
Discussion Questions 255
BRAND FOCUS 7.0: Understanding How Online Word-of-Mouth Influences Brands and
Brand Management 256
Notes 257
xiv CONTENTS
CHAPTER 8 Leveraging Secondary Brand Associations to Build Brand Equity 261
Preview 262
Conceptualizing the Leveraging Process 263
Creation of New Brand Associations 263
Effects on Existing Brand Knowledge 263
Guidelines 265
Company 266
BRANDING BRIEF 8-1: IBM Promotes a Smarter Planet 266
Country of Origin and Other Geographic Areas 268
BRANDING BRIEF 8-2: Selling Brands the New Zealand Way 270
Channels of Distribution 272
THE SCIENCE OF BRANDING 8-1: Understanding Retailers’ Brand Images 272
Co-Branding 273
Guidelines 274
THE SCIENCE OF BRANDING 8-2: Understanding Brand Alliances 275
Ingredient Branding 277
BRANDING BRIEF 8-3: Ingredient Branding the DuPont Way 279
Licensing 280
Guidelines 282
Celebrity Endorsement 283
Potential Problems 284
BRANDING BRIEF 8-4: Rachael Ray’s Nutrish 285
Guidelines 287
BRANDING BRIEF 8-5: Managing a Person Brand 288
Social Influencers as the New Celebrities 289
Sporting, Cultural, or Other Events 289
Third-Party Sources 290
Review 291
Discussion Questions 291
BRAND FOCUS 8.0: Going for Corporate Gold at the Olympics 292
Notes 293
PART IV Measuring And Interpreting Brand Performance 297
CHAPTER 9 Developing a Brand Equity Measurement and Management
System 297
Preview 298
The New Accountability 298
Conducting Brand Audits 299
Brand Inventory 300
Brand Exploratory 302
Brand Positioning and the Supporting Marketing Program 306
THE SCIENCE OF BRANDING 9-1: The Role of Brand Personas 307
Designing Brand Tracking Studies 308
What to Track 308
BRANDING BRIEF 9-1: Sample Brand Tracking Survey 309
Big Data and Marketing Analytics Dashboards 311
Marketing Analytics Dashboards 312
CONTENTS xv
BRANDING BRIEF 9-2: How Taco Bell Uses Data-Driven Social Media Marketing to Engage
Its Customers 312
Establishing a Brand Equity Management System 314
BRANDING BRIEF 9-3: Understanding and Managing the Mayo Clinic Brand 314
Brand Charter or Bible 316
Brand Equity Report 317
Brand Equity Responsibilities 318
THE SCIENCE OF BRANDING 9-2: Maximizing Internal Branding 318
Review 321
Discussion Questions 321
BRAND FOCUS 9.0: Sample Rolex Brand Audit 322
Notes 329
CHAPTER 10 Measuring Sources of Brand Equity: Capturing Customer
Mind-Set 331
Preview 332
Qualitative Research Techniques 332
BRANDING BRIEF 10-1: Digging Beneath the Surface to Understand
Consumer Behavior 333
Free Association 334
THE SCIENCE OF BRANDING 10-1: Using Text Mining to Uncover Brand
Associations and Positioning 336
Projective Techniques 336
BRANDING BRIEF 10-2: Once Upon a Time . . . You Were What You Cooked 337
Zaltman Metaphor Elicitation Technique 338
Neural Research Methods 339
Brand Personality and Values 341
Ethnographic and Experiential Methods 342
BRANDING BRIEF 10-3: Making the Most of Consumer Insights 342
BRANDING BRIEF 10-4: Netnography as a Digital Research Technique 343
BRANDING BRIEF 10-5: How P&G Innovates Using Qualitative
Research Data 345
Summary 345
Quantitative Research Techniques 345
Brand Awareness 346
Brand Image 348
Social Media Listening and Monitoring 350
BRANDING BRIEF 10-6: Gatorade’s Social Media Command Center 351
Brand Responses 352
BRANDING BRIEF 10-7: Understanding Attribution Modeling 353
Brand Relationships 354
THE SCIENCE OF BRANDING 10-2: Understanding Brand Engagement 357
Comprehensive Models of Consumer-Based Brand Equity 359
Review 359
Discussion QuestIons 360
BRAND FOCUS 10.0: Young & Rubicam’s Brand Asset Valuator 361
Notes 367
xvi CONTENTS
CHAPTER 11 Measuring Outcomes of Brand Equity: Capturing Market
Performance 370
Preview 371
Comparative Methods 372
Brand-Based Comparative Approaches 372
Marketing-Based Comparative Approaches 373
Conjoint Analysis 375
Holistic Methods 376
Residual Approaches 377
Valuation Approaches 378
Brand Valuation: A Review of Major Approaches 382
Interbrand 382
BrandZ 383
Brand Finance 384
Comparing the Major Brand Valuation Approaches 384
THE SCIENCE OF BRANDING 11-1: Understanding Brand Valuation 386
Review 387
Discussion Questions 388
BRAND FOCUS 11.0: Financial Perspectives on Brands and the Brand Value Chain 389
Notes 391
PART V Growing and Sustaining Brand Equity
CHAPTER 12 Designing and Implementing Brand Architecture Strategies 395
Preview 396
Developing a Brand Architecture Strategy 396
THE SCIENCE OF BRANDING 12-1: The Brand–Product Matrix 397
Step 1: Defining Brand Potential 398
BRANDING BRIEF 12-1: Google: Expanding Beyond Search 399
Step 2: Identifying Brand Extension Opportunities 401
Step 3: Specifying Brand Elements for Branding New Products and Services 402
Summary 402
Brand Portfolios 402
BRANDING BRIEF 12-2: Expanding the Marriott Brand 403
Brand Hierarchies 406
Levels of a Brand Hierarchy 407
Designing a Brand Hierarchy 409
BRANDING BRIEF 12-3: Netflix: Evolving a Brand Architecture to Grow the Brand 409
Corporate Branding 416
BRANDING BRIEF 12-4: Corporate Reputations: The Most Admired U.S. Companies 417
THE SCIENCE OF BRANDING 12-2: Brand Architecture Strategies: House of Brands or Branded House? 417
Corporate Image Dimensions 418
BRANDING BRIEF 12-5: Corporate Innovation at 3M 419
Managing the Corporate Brand 422
THE SCIENCE OF BRANDING 12-3: When Brands Trade Hands 425
Brand Architecture Guidelines 427
Review 428
Discussion Questions 429
CONTENTS xvii
BRAND FOCUS 12.0: Corporate Social Responsibility And Brand Strategy 430
Notes 434
CHAPTER 13 Introducing and Naming New Products and Brand
Extensions 438
Preview 439
New Products and Brand Extensions 439
BRANDING BRIEF 13-1: Growing the McDonald’s Brand 440
Advantages of Extensions 442
Facilitate New-Product Acceptance 442
Provide Feedback Benefits to the Parent Brand 445
Disadvantages of Brand Extensions 447
Can Confuse or Frustrate Consumers 447
Can Encounter Retailer Resistance 447
Can Fail and Hurt Parent Brand Image 448
Can Succeed but Cannibalize Sales of Parent Brand 448
Can Succeed, but Diminish Identification with Any One Category 448
BRANDING BRIEF 13-2: Are There Any Boundaries to the Virgin Brand Name? 449
Can Succeed, but Hurt the Image of the Parent Brand 450
Can Dilute Brand Meaning 450
Can Cause the Company to Forego the Chance to Develop a New Brand 451
Understanding How Consumers Evaluate Brand Extensions 451
Managerial Assumptions 452
Brand Extensions and Brand Equity 452
Vertical Brand Extensions 454
THE SCIENCE OF BRANDING 13-1: Scoring Brand Extensions 454
BRANDING BRIEF 13-3: Levi’s Extends Its Brand 457
Evaluating Brand Extension Opportunities 458
Define Actual and Desired Consumer Knowledge about the Brand 459
Identify Possible Extension Candidates 459
Evaluate the Potential of the Extension Candidate 459
Design Marketing Programs to Launch Extension 461
Evaluate Extension Success and Effects on Parent Brand Equity 462
Extension Guidelines Based on Academic Research 462
Review 470
Discussion Questions 470
BRAND FOCUS 13.0: Apple: Creating a Tech Megabrand 471
Notes 475
CHAPTER 14 Managing Brands Over Time 481
Preview 482
Reinforcing Brands 482
Maintaining Brand Consistency 485
BRANDING BRIEF 14-1: Patagonia 486
BRANDING BRIEF 14-2: Pabst 488
Protecting Sources of Brand Equity 489
BRANDING BRIEF 14-3: Volkswagen 490
THE SCIENCE OF BRANDING 14-1: Understanding Brand Crises 491
Fortifying versus Leveraging 493
Fine-Tuning the Supporting Marketing Program 493
xviii CONTENTS
Revitalizing Brands 495
BRANDING BRIEF 14-4: Harley-Davidson Motor Company 496
BRANDING BRIEF 14-5: A New Morning for Mountain Dew 498
BRANDING BRIEF 14-6: Remaking Burberry’s Image 499
Expanding Brand Awareness 501
Improving Brand Image 504
Adjustments to the Brand Portfolio 507
Migration Strategies 507
Acquiring New Customers 507
Retiring Brands 507
Obsoleting Existing Products 508
Review 509
Discussion Questions 510
BRAND FOCUS 14.0: Responding to a Brand Crisis 511
Notes 513
CHAPTER 15 Managing Brands Over Geographic Boundaries and Market
Segments 516
Preview 517
Regional Market Segments 517
Other Demographic and Cultural Segments 518
Marketing Based on Age 518
Marketing Based on Ethnicity 520
Global Branding 521
BRANDING BRIEF 15-1: Marketing to Ethnic Groups 522
Why Should a Brand Focus on Global Markets? 524
Advantages of Global Marketing 524
Disadvantages of Global Marketing 525
THE SCIENCE OF BRANDING 15-1: Key Insights Regarding Global Brand Strategies Based on
Research Findings 527
Strategies for Creating & Managing Global Brands 529
Creating Global Brand Equity 529
Global Brand Positioning 529
BRANDING BRIEF 15-2: Coca-Cola’s Global Brand Strategy with Local Elements 531
Customizing Marketing Mix Elements in Local Markets for Global Brands 532
Product Strategy 532
Communication Strategy 533
Pricing Strategy 533
Marketing to Consumers in Developing and Developed Markets 534
Ten Commandments to Building Global Customer-Based Brand Equity 534
BRANDING BRIEF 15-3: Marketing to Bicultural Consumers Using Bilingual Advertising 536
BRANDING BRIEF 15-4: Managing Global Nestlé Brands 538
Review 542
Discussion Questions 542
BRAND FOCUS 15.0: China’s Global Brand Ambitions 543
Notes 544
CONTENTS xix
PART VI Closing Perspectives 549
CHAPTER 16 Closing Observations 549
Preview 550
Strategic Brand Management Guidelines 550
Summary of Customer-Based Brand Equity Framework 550
Tactical Guidelines 552
What Makes a Strong Brand? 556
BRANDING BRIEF 16-1: The Brand Report Card 556
BRANDING BRIEF 16-2: Reinvigorating Branding at Procter & Gamble 558
Future Brand Priorities 560
Fully and Accurately Factor the Consumer into the Branding Equation 560
Go Beyond Product Performance and Rational Benefits 562
Make the Whole of the Marketing Program Greater Than the Sum of the Parts 563
Understand Where You Can Take a Brand (and How) 565
Do the “Right Thing” with Brands 566
Take a Big Picture View of Branding Effects. Know What Is Working (and Why) 566
Finding the Branding Sweet Spot 567
New Capabilities for Brand Marketers 568
Review 570
Discussion Questions 570
BRAND FOCUS 16.0: Special Applications 570
Notes 576
Index 579