9
Creating
Brand Equity
Marketing Management, 13th ed
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?
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall
ESPN: A Strong Brand
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall
Steps in
Strategic Brand Management
Identifying and establishing brand
positioning
Planning and implementing brand
marketing
Measuring and interpreting brand
performance
Growing and sustaining brand value
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall
What is a Brand?
A brand is a name, term, sign, symbol
or design, or a combination of them,
intended to identify the goods or
services of one seller or group of
sellers and to differentiate them from
those of competitors.
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The Role of Brands
Identify
Identify the
the maker
maker
Simplify
Simplify product
product handling
handling
Organize
Organize accounting
accounting
Offer
Offer legal
legal protection
protection
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The Role of Brands
Signify
Signify quality
quality
Create
Create barriers
barriers to
to entry
entry
Serve
Serve as
as aa competitive
competitive
advantage
advantage
Secure
Secure price
price premium
premium
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What is Branding?
Branding is endowing
products and services with the
power of the brand.
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What is Brand Equity?
Brand equity is the added value
endowed on products and services,
which may be reflected in the way
consumers, think, feel, and act with
respect to the brand.
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Brand Knowledge
Thoughts
Feelings
Knowledge
Images
Beliefs
Experiences
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Advantages of Strong Brands
Improved
perceptions of
product
performance
Greater loyalty
Less vulnerability
to competitive
marketing actions
Less vulnerability
to crises
Larger margins
More inelastic
consumer response
Greater trade
cooperation
Increased marketing
communications
effectiveness
Possible licensing
opportunities
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Apple is a Strong Brand
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What is a Brand Promise?
A brand promise is the marketers
vision of what the brand must be and
do for consumers.
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Burger King Builds Its Brand with
Social Connectivity
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Brand Equity Models
Brand Asset Valuator
Aaker Model
BRANDZ
Brand Resonance
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BAV Key Components
Differentiation
Energy
Relevance
Esteem
Knowledge
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Figure 9.3 Brand Dynamics Pyramid
Strong Relationship
Bonding
Advantage
Performance
Relevance
Presence
Weak Relationship
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Aaker Model
Brand Identity
Core Identity
Elements
Extended Identity
Elements
Brand Essence
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Figure 9.4 Brand Resonance Pyramid
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Drivers of Brand Equity
Brand Elements
Marketing Activities
Meaning Transference
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Brand Elements
Brand
names
Slogans
Characters
URLs
Elements
Logos
Symbols
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Brand Element Choice Criteria
Memorable
Meaningful
Likeability
Transferable
Adaptable
Protectible
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Slogans
Like a good
neighbor, State
Farm is there
Just do it
Nothing runs like a
Deere
Save 15% or more
in 15 minutes or
less
We try harder
Well pick you up
Nextel Done
Zoom Zoom
Im lovin it
Innovation at work
This Buds for you
Always low prices
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Designing Holistic Marketing Activities
Personalization
Integration
Internalization
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Internal Branding
Choose the right moment
Link internal and external marketing
Bring the brand alive for employees
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Figure 9.5 Secondary Sources of
Brand Knowledge
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Measuring Brand Equity
Brand
Brand Audits
Audits
Brand
Brand Tracking
Tracking
Brand
Brand Valuation
Valuation
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Table 9.2 The 10 Most Valuable Brands
Brand
2006 Brand Value (Billions)
Coca-Cola
$67.00
Microsoft
$56.93
IBM
$56.20
GE
$48.91
Intel
$38.32
Nokia
$30.13
Toyota
$27.94
Disney
$27.85
McDonalds
$27.50
Mercedes-Benz
$22.13
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Managing Brand Equity
Brand
Brand Reinforcement
Reinforcement
Brand
Brand Revitalization
Revitalization
Brand
Brand Crises
Crises
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Interbrands Steps in Calculating
Brand Equity
Market segmentation
Financial analysis
Role of branding
Brand strength
Brand value calculation
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Devising a Branding Strategy
Develop
Develop new
new brand
brand
elements
elements
Apply
Apply existing
existing brand
brand
elements
elements
Use
Use aa combination
combination of
of
old
old and
and new
new
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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
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Brand Naming
Individual
Individual names
names
Blanket
Blanket family
family names
names
Separate
Separate family
family names
names
Corporate
Corporate namenameindividual
individual name
name combo
combo
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Reasons for Brand Portfolios
Increasing shelf presence and retailer
dependence in the store
Attracting consumers seeking variety
Increasing internal competition within
the firm
Yielding economies of scale in
advertising, sales, merchandising, and
distribution
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Brand Roles in a Brand Portfolio
Flankers
Cash Cows
Low-end
Entry-level
High-end
Prestige
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Marketing Debate
Are brand extensions good or bad?
Take a position:
1. Brand extensions can endanger brands.
or
2. Brand extensions are an important
brand-growth strategy.
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall
Marketing Discussion
How can you relate the different models
brand equity presented in this chapter?
How are they similar? Different?
Can you reconstruct a brand-equity
Model that incorporates the best of each?
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall