Chapter 9 Creating Brand Equity
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Chapter 9 Creating Brand Equity Chapter 9 Creating Brand Equity Presentation Transcript

  • Chapter 9Creating Brand Equity Philip Kotler Kevin Lane Keller Donna Sia, Shelle Caiga, Rhea Jardin May 4, 2012 www.hypermarketing2.co m
  • Outline: What do we have to know?1. What is brand and how does branding work?2. What is brand equity?3. How is brand equity built, measured and managed?4. What are the important decisions in developing a branding strategy? hypermarketing2.co www. m
  • What is brand?Brand is a “name, term, sign, symbol, or design or combination of then, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.” hypermarketing2.co www. m
  • How does branding work? Branding is endowing products and services with the power of a brand.It creates mental structures that help consumers organize their knowledge about products and services in a way that clarifies their decision making and, in the process, provides value to the chain. hypermarketing2.co www. m
  • What is Brand Equity?Brand equity is the added value endowed on products and services.It may be reflected in the way consumers think, feel and act with respect to the brand, as well as in the prices, market share and profitability the brand commands for the firm. hypermarketing2.co www. m
  • Outline: Like playing basketball, managing a brand involves strategies…Step 1. Identify and establish Step 3. Measure and interpret Brand Positioning Brand PerformanceStep 2. Plan and implement Step 4. Grow and sustain Brand Marketing Brand Value www.hypermarketing2.co m
  • What can branding do to your business?Identifies themaker &signifiesquality Creates barriers to entry Serves as competitive Offers legal protection advantage www.hypermarketing2.co m
  • What can branding do to your business? Loyola Schools AGSB School of LawSecures price premium School of Medicine Organizes accounting and simplifies product handling hypermarketing2.co www. m
  • Provide customers the right type ofexperience to create desired brandknowledge. Hi, I’m Jersey 17, I am passionate and I try to be the best at what I do especially basketball. Jersey 17’s Brand Print hypermarketing2.co www. m
  • Provide customers the right type ofexperience to create desired brandknowledge. What is important to me is to give my fans a good game and give my best for the team. Jersey 17’s Brand Print hypermarketing2.co www. m
  • Provide customers the right type ofexperience to create desired brandknowledge. Even though I am busy with my career, I was still able to finish my education & start my own business Jersey 17’s Brand Print hypermarketing2.co www. m
  • Provide customers the right type ofexperience to create desired brandknowledge. I hope I inspire young athletes to pursue their dreams, whatever sport they are into. Jersey 17’s Brand Print hypermarketing2.co www. m
  • Provide customers the right type ofexperience to create desired brandknowledge. Thoughts & Beliefs Images Feelings Jersey 17’s Brand Print hypermarketing2.co www. m
  • What STRONG brands do…Improved perceptions of product performance Greater Loyalty hypermarketing2.co www. m
  • What STRONG brands do… Large Margins hypermarketing2.co www. m
  • What STRONG brands do…Less vulnerability to competitive marketing actionsMore inelastic consumer responseIncreased marketing communications effectiveness hypermarketing2.co www. m
  • One comparative measure of brand equity is the BAVBrand Asset Evaluator (BAV) compares brand equity of thousands of brands across hundreds of categories and these are its four pillars (Derek) Brand Equity Differentiation Knowledge Relevance Esteem Energy www. hypermarketing2.co m
  • Develop your brand’s identity. Brand Essence Extended Identity Core Identity Aaker Model hypermarketing2.co www. m
  • Develop your brand’s identityby: Brand Essence: Movement for self-esteem Campaign for real beauty Empowering Women Aaker Model hypermarketing2.co www. m
  • Develop your brand’s identityby: Brand Essence: Movement for self- Extended esteem Identity: Dove Men + Campaign for real Care beauty Aaker Model www.hypermarketing2.co m
  • Develop your brand’s identityby: Brand Essence: Movement for self- Extended esteem Identity: Dove Men + Core Campaign for real Care Identity: beauty Beautiful Skin Aaker Model www.hypermarketing2.co m
  • Brand building follows a sequential series of steps: Strong relationship High share of category expenditure Bonding Advantage Performance Relevance Weak relationship/ Low share of category Presence expenditureBrand Dynamics Pyramid www.hypermarketing2.co m
  • Building relationship with a brand… Do I know about it? Presence PresenceBrand Dynamics Pyramid www.hypermarketing2.co m
  • Building relationship with a brand… Does it offer me something? Relevance PresenceBrand Dynamics Pyramid www.hypermarketing2.co m
  • Building relationship with a brand… Can it deliver? Bonding Advantage Performance Relevance PresenceBrand Dynamics Pyramid www.hypermarketing2.co m
  • Building relationship with a brand… Does it offer something Bonding better than others? Advantage Performance Relevance PresenceBrand Dynamics Pyramid www.hypermarketing2.co m
  • Building relationship with a brand… Bonding Advantage Nothing elseI Performance Relevance beats it! PresenceBrand Dynamics Pyramid www.hypermarketing2.co m
  • Building relationship with a brand… Resonance Judgment & Feelings Performance & Imagery Presence Brand SalienceBrand Resonance Pyramid hypermarketing2.co www. m
  • What drives brand equity?Brand Elements Men and Women for others… The Ateneo Way… hypermarketing2.co www. m
  • Like the person of your dreams, brand elements should be…Likeable ProtectibleMemorable AdaptableMeaningful Transferable? hypermarketing2.co www. m
  • What drives brand equity?Marketing Activities hypermarketing2.co www. m
  • What drives brand equity?Meaning Transference Mirrors your brand www.hypermarketing2.co m
  • Brands are not built by advertising alone. Designing Holistic Marketing ActivitiesPersonalize Integrate Internalize hypermarketing2.co www. m
  • Measuring Brand EquityBrand Audits Health of brand Source of brand equity Ways to improve equity Where, how much &Brand-Tracking what ways brand value is being created?Brand Valuation Financial Value of the brand hypermarketing2.co www. m
  • In summary: Brand Elements Brand Valuation The company Thoughts & Beliefs Images Bonding Brand Advantage Feelings Performance Relevance Presence PresenceMarketing Activities and Meaning Transference Brand Relationship Consumer www.hypermarketing2.co m
  • CREATINGBRANDEQUITY MARKMA Rhea G. Jardin May 4, 2012 hypermarketing2.co www. m
  • Chapter 9Creating Brand Equity Philip Kotler Kevin Lane Keller Donna Sia, Shelle Caiga, Rhea Jardin May 4, 2012 www.hypermarketing2.co m
  • What is a Brand? A product or service whose dimensions differentiate it in some way from other products or services designed to satisfy the same need hypermarketing2.co www. m
  • hypermarketing2.cowww. m
  • Role of Brands1. Identify the source or maker of the product that satisfies the consumers’ needs2. Simplifies product handling or tracing3. Offers firm legal protection with intellectualproperty rights4. Signals level of quality so that buyers caneasily choose the product again hypermarketing2.co www. m
  • What is Branding?- Endowing products and services with the power of the brand by creating differences between products- “who” the product is, what the product does and why consumers should care hypermarketing2.co www. m
  • Brand Equity- the added value on products and services- reflected on how consumers think, feel and act on the brand- reflected in the prices, market share and profitability for the firm hypermarketing2.co www. m
  • Customer-based brand equityA. Positive – customers react more favorably toa product and the way it is marketedB. Negative – customers react less favorably tomarketing activity for the brandThree (3) key ingredients:1. Consumer response2. Consumer’s knowledge about the brand3. Consumer’s perceptions, preferences and behavior hypermarketing2.co www. m
  • Brand Knowledge1. Quality is the critical factor not the quantity2. Dictates future directions for the brand basedon how consumers think and feel about the brandBrand promise - the marketer’s vision of what thebrand must be and do for consumers hypermarketing2.co www. m
  • Five pillars of brand equity1. Differentiation – measures the degree to whicha brand is seen as different from others2. Energy – measures the brand’s sense ofmomentum3. Relevance – measures the breadth of a brand’sappeal4. Esteem – measures how well the brand isregarded and respected5. Knowledge – measures how familiar andintimate consumers are with the brand hypermarketing2.co www. m
  • Five pillars of brand equity + + = energized brand strength- point to the brand’s future value + = brand stature- “report card” of past performance“Pillar’s pattern” reveal a brand’s current andfuture status www.hypermarketing2.co m
  • BrandDynamics Pyramid-Developed by Millward Brown of BRANDZMarketing as a model of brand strengthNothing else beats it BondingDoes it offer something Advantagebetter than the others?Can it deliver? PerformanceDoes it offer me Relevancesomething?Do I know Presence about it? www. hypermarketing2.co m
  • BrandDynamics Pyramid-Developed by Millward Brown of BRANDZMarketing as a model of brand strengthNothing else beats it Bonding Strong relationship / HighDoes it offer something share of category expenditure Advantagebetter than the others?Can it deliver? PerformanceDoes it offer me Relevancesomething?Do I know Presence Weak relationship / about it? Low share of category expenditure www. hypermarketing2.co m
  • Brand Resonance ModelStages of Brand Brand Brand building Branding objective at Development blocks each stage 4. Relationships Resonance = what about Intense, active you and me? loyalty 3. Response = what about Judgments Feelings Positive, accessible you? reactions 2. Meaning = Performance Imagery Points-of-parity & what are you? difference Salience 1. Identity = Deep, broad brand who are you? awareness hypermarketing2.co www. m
  • Brand Resonance ModelBrand salience – how often and how easily customers think of the brand under various purchase or consumption situationsBrand performance – how well the product or service meets customers’ functional needsBrand imagery – the ways in which brand attempts to meet customers’ psychological or social needsBrand judgments – focus on customers’ own personal opinions and evaluationsBrand feelings – customers’ emotional responses and reactions with respect to the brandBrand resonance – nature of the relationship customers have with the brand (“in sync” with it) www.hypermarketing2.co m
  • Brand equity drivers1. Initial choices for the brand elements or identities making up the brand2. The way the brand is integrated into the supporting marketing program3. The associations indirectly transferred to the brand by linking the brand to some other entity www.hypermarketing2.co m
  • Brand element choice criteria1. Memorable – how easily the brand element is recalled and recognized (i.e. short names)2. Meaningful – credibility of the brand, product ingredient or type of person who might use the brand3. Likeable – how visually and verbally appealing is the brand element4. Transferable – can the brand element be used to introduce new products in the same or different categories? www.hypermarketing2.co m
  • Brand element choice criteria5. Adaptable – how adaptable and updatable is the brand element Betty Crocker in 1936 Betty Crocker in 19866. Protectible – brand names that become synonymous with product categories www. hypermarketing2.co m
  • Measuring brand equity1. Brand audit - measures “where the brand has been”2. Brand-tracking studies – measure “where the brand is now” and whether marketing programs are having the intended effects www.hypermarketing2.co m
  • Measuring brand equityBrand valuation – estimating the total financial value of the brand Rank Brand 2006 Brand Value (Billions) 1 Coca-cola $67.00 2 Microsoft $56.93 3 IBM $56.20 4 GE $48.91 5 Intel $38.32 6 Nokia $30.13 7 Toyota $27.94 8 Disney $27.85 9 McDonald’s $27.50 10 Mercedes-Benz $22.13 hypermarketing2.co www. m
  • Managing brand equity1. Brand reinforcement - requires innovation and relevance throughout the marketing program - brand must be moving forward in the right direction with new offerings and ways to market them2. Brand revitalization - reinvention strategy - renewal of commitment to quality www.hypermarketing2.co m
  • Brand Equityreflected on where customers price market share profitability quality is a factor over quantity Pillars of brand equity: differentiation energy relevance esteem knowledge energized brand strength brand staturecriteria for brand element:memorable/short meaningful likeable transferrable adaptable protectible www. hypermarketing2.co m
  • CREATINGBRANDEQUITY MARKMA Rhea G. Jardin May 4, 2012 hypermarketing2.co www. m
  • Chapter 9Creating Brand Equity Philip Kotler Kevin Lane Keller Donna Sia May 4, 2012 hypermarketing2.co www. m
  • Outline: What do we have to know?1. What is brand and how does branding work?2. What is brand equity?3. How is brand equity built, measured and managed?4. What are the important decisions in developing a branding strategy? hypermarketing2.co www. m
  • What is brand?Brand is a “name, term, sign, symbol, or design or combination of then, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.” hypermarketing2.co www. m
  • How does branding work? Branding is endowing products and services with the power of a brand.It creates mental structures that help consumers organize their knowledge about products and services in a way that clarifies their decision making and, in the process, provides value to the chain. hypermarketing2.co www. m
  • What is Brand Equity?Brand equity is the added value endowed on products and services.It may be reflected in the way consumers think, feel and act with respect to the brand, as well as in the prices, market share and profitability the brand commands for the firm. hypermarketing2.co www. m
  • Outline: Like playing basketball, managing a brand involves strategies…Step 1. Identify and establish Step 3. Measure and interpret Brand Positioning Brand PerformanceStep 2. Plan and implement Step 4. Grow and sustain Brand Marketing Brand Value www.hypermarketing2.co m
  • What can branding do to your business?Identifies themaker &signifiesquality Creates barriers to entry Serves as competitive Offers legal protection advantage www.hypermarketing2.co m
  • What can branding do to your business? Loyola Schools AGSB School of LawSecures price premium School of Medicine Organizes accounting and simplifies product handling hypermarketing2.co www. m
  • Provide customers the right type ofexperience to create desired brandknowledge. Hi, I’m Jersey 17, I am passionate and I try to be the best at what I do especially basketball. Jersey 17’s Brand Print hypermarketing2.co www. m
  • Provide customers the right type ofexperience to create desired brandknowledge. What is important to me is to give my fans a good game and give my best for the team. Jersey 17’s Brand Print hypermarketing2.co www. m
  • Provide customers the right type ofexperience to create desired brandknowledge. Even though I am busy with my career, I was still able to finish my education & start my own business Jersey 17’s Brand Print hypermarketing2.co www. m
  • Provide customers the right type ofexperience to create desired brandknowledge. I hope I inspire young athletes to pursue their dreams, whatever sport they are into. Jersey 17’s Brand Print hypermarketing2.co www. m
  • Provide customers the right type ofexperience to create desired brandknowledge. Thoughts & Beliefs Images Feelings Jersey 17’s Brand Print hypermarketing2.co www. m
  • What STRONG brands do…Improved perceptions of product performance Greater Loyalty hypermarketing2.co www. m
  • What STRONG brands do… Large Margins hypermarketing2.co www. m
  • What STRONG brands do…Less vulnerability to competitive marketing actionsMore inelastic consumer responseIncreased marketing communications effectiveness hypermarketing2.co www. m
  • One comparative measure of brand equity is the BAVBrand Asset Evaluator (BAV) compares brand equity of thousands of brands across hundreds of categories and these are its four pillars (Derek) Brand Equity Differentiation Knowledge Relevance Esteem Energy www. hypermarketing2.co m
  • Develop your brand’s identity. Brand Essence Extended Identity Core Identity Aaker Model hypermarketing2.co www. m
  • Develop your brand’s identityby: Brand Essence: Movement for self-esteem Campaign for real beauty Empowering Women Aaker Model hypermarketing2.co www. m
  • Develop your brand’s identityby: Brand Essence: Movement for self- Extended esteem Identity: Dove Men + Campaign for real Care beauty Aaker Model www.hypermarketing2.co m
  • Develop your brand’s identityby: Brand Essence: Movement for self- Extended esteem Identity: Dove Men + Core Campaign for real Care Identity: beauty Beautiful Skin Aaker Model www.hypermarketing2.co m
  • Brand building follows a sequential series of steps: Strong relationship High share of category expenditure Bonding Advantage Performance Relevance Weak relationship/ Low share of category Presence expenditureBrand Dynamics Pyramid www.hypermarketing2.co m
  • Building relationship with a brand… Do I know about it? Presence PresenceBrand Dynamics Pyramid www.hypermarketing2.co m
  • Building relationship with a brand… Does it offer me something? Relevance PresenceBrand Dynamics Pyramid www.hypermarketing2.co m
  • Building relationship with a brand… Can it deliver? Bonding Advantage Performance Relevance PresenceBrand Dynamics Pyramid www.hypermarketing2.co m
  • Building relationship with a brand… Does it offer something Bonding better than others? Advantage Performance Relevance PresenceBrand Dynamics Pyramid www.hypermarketing2.co m
  • Building relationship with a brand… Bonding Advantage Nothing elseI Performance Relevance beats it! PresenceBrand Dynamics Pyramid www.hypermarketing2.co m
  • Building relationship with a brand… Resonance Judgment & Feelings Performance & Imagery Presence Brand SalienceBrand Resonance Pyramid hypermarketing2.co www. m
  • What drives brand equity?Brand Elements Men and Women for others… The Ateneo Way… hypermarketing2.co www. m
  • Like the person of your dreams, brand elements should be…Likeable ProtectibleMemorable AdaptableMeaningful Transferable? hypermarketing2.co www. m
  • What drives brand equity?Marketing Activities hypermarketing2.co www. m
  • What drives brand equity?Meaning Transference Mirrors your brand www.hypermarketing2.co m
  • Brands are not built by advertising alone. Designing Holistic Marketing ActivitiesPersonalize Integrate Internalize hypermarketing2.co www. m
  • Measuring Brand EquityBrand Audits Health of brand Source of brand equity Ways to improve equity Where, how much &Brand-Tracking what ways brand value is being created?Brand Valuation Financial Value of the brand hypermarketing2.co www. m
  • In summary: Brand Elements Brand Valuation The company Thoughts & Beliefs Images Bonding Brand Advantage Feelings Performance Relevance Presence PresenceMarketing Activities and Meaning Transference Brand Relationship Consumer www.hypermarketing2.co m
  • Chapter 9Creating Brand Equity Philip Kotler Kevin Lane Keller Donna Sia May 4, 2012 hypermarketing2.co www. m