Chapter 8 Questions
• What is a brand and how does branding work?
• What is brand equity and how is it built, measured, and managed?
• What are the important decisions in developing a branding strategy?
Strategic Brand Management
• Identifying and establishing brand positioning
• Planning and implementing brand marketing
• Measuring and interpreting brand performance
• Growing and sustaining brand value
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
The Role of Brands
• Identify the maker
• Simplify product handling
• Organize accounting
• Oﬀer legal protection
The Role of Brands
• Signify quality
• Create barriers to entry
• Serve as a competitive advantage
• Secure price premium
What is Branding?
•Branding is endowing products
and services with the power of
•Teaching customers “who”
the product is
•Tells customers what the
•Reinforces why consumers
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
• What are some of your favorite brands?
• What feelings do you get when you think go these brands?
What comes to mind when you
think of these brand retailers?
Advantages of Strong Brands
• Improved perceptions of product
• Greater loyalty
• Less vulnerability to competitive
• Less vulnerability to crises
• Larger margins
• More inelastic consumer response
• Greater trade cooperation
• Increased marketing
• Possible licensing opportunities
What is a Brand Promise?
• A brand promise is the marketer’s vision of what the brand must be and do
• What do you think the brand promise is for the retailers we discussed?
Brand Asset Valuator
Strong New Brands: Higher in
Energized Differentiation, low
esteem and knowledge
Leadership Brands: High in all
Declining Brands: High
Knowledge, low everything
Figure 8.3 Brand
Think of Brands in these
Building Brand Equity
1.Identify Brand Elements (Name, Logo, URL, etc) and identities that make up
2.The Product, Service, and All Marketing Activities and Marketing Programs
3. Other associations indirectly transferred to the brand (Figure 8.4 Page 119)
• Brand names
• Social Media Presence
• Customer Service Strategy
Brand Element Choice Criteria
• Building the Brand
• Memorable: Is the elements easily
recalled and recognized at
purchase and consumption (Tide)
• Meaningful: Is the element credible
and suggestive of the category?
Does it suggest something about
an ingredient or brand user?
• Likable: Is the element appealing
and likable visually or in other
• Defending a Brand
• Transferrable: Can the element
introduce new products in the
same category or other
category? (Amazon, Soap.com,
• Adaptable: Can the element be
adapted and updated (Betty
• Protectable: Is the element
legally and competitively
Cult Brands: Building Equity
Measuring Brand Equity
• Brand audits: A consumer focused series of procedures to asses the health
of the brand, uncover its sources of equity, and suggest ways to improve and
leverage it’s equity.
• Brand tracking: Qualitative Marketing Research that collects data from
consumers over time to provide baseline information on how brands and
marketing programs are performing
• Brand valuation: The actual ﬁnancial value of a brand
Interbrand Retail US
• Flankers: Fighter brands are positioned alongside competitor brands so that
more important and more proﬁtable ﬂagship brands can retain their desire
• Cash cows: Still proﬁtable without much marketing, dwindling sales, but still
• Low-end, entry-level: Attract customers to the brand franchise with lower
• High-end prestige: Higher priced, adds prestige and credibility to overall
• Most products are Brand Extensions (80-90%) - as they create new demand
based on trends, customer tastes, without building the brand from scratch
each time a new product is launched.
• A key trend is ease and convenience “Lifehacks”