9
Creating
Brand Equity
Marketing Management,
STIEPARI 25 B
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 9-2
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 9-3
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
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-4
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
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-5
Brand Knowledge
Thoughts Feelings
Knowledge
Images
Beliefs
Experiences
Advantages of Strong Brands
• Improved • Larger margins
perceptions of • More inelastic
product consumer response
performance • Greater trade
• Greater loyalty cooperation
• Less vulnerability • Increased marketing
to competitive communications
marketing actions effectiveness
• Less vulnerability • Possible licensing
to crises opportunities
Brand Equity Models
• Brand Asset Valuator
• Aaker Model
• BRANDZ
• Brand Resonance
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-8
BAV Key Components
Differentiation
Energy
Relevance
Esteem
Knowledge
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-9
Figure 9.3 Brand Dynamics Pyramid
Strong Relationship
Bonding
Advantage
Performance
Relevance
Presence
Weak Relationship
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-10
Aaker Model
Core Identity
Brand Identity
Elements
Extended Identity
Brand Essence
Elements
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-11
Figure 9.4 Brand Resonance Pyramid
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-12
Drivers of Brand Equity
Brand Elements
Marketing Activities
Meaning Transference
Brand Elements
Brand
names URLs
Slogans
Elements
Logos
Characters
Symbols
Brand Element Choice Criteria
• Memorable
• Meaningful
• Likeability
• Transferable
• Adaptable
• Protectible
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-15
Designing Holistic Marketing Activities
Personalization
Integration
Internalization
Internal Branding
• Choose the right moment
• Link internal and external marketing
• Bring the brand alive for employees
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-17
Measuring Brand Equity
Brand
Brand Audits
Audits
Brand
Brand Tracking
Tracking
Brand
Brand Valuation
Valuation
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-18
Managing Brand Equity
Brand
Brand Reinforcement
Reinforcement
Brand
Brand Revitalization
Revitalization
Brand
Brand Crises
Crises
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-19
Interbrand’s Steps in Calculating
Brand Equity
• Market segmentation
• Financial analysis
• Role of branding
• Brand strength
• Brand value calculation
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-20
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
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-21
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
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-22
Brand Roles in a Brand Portfolio
Flankers Cash Cows
Low-end High-end
Entry-level Prestige
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 9-24
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 9-25