Brand equity


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  • Video icon links to snippet on Swiss Army’s brand extensions.
  • Brand equity

    1. 1. Creating Brand Equity 10 Marketing Management A South Asian Perspective, 13 th ed
    2. 2. Steps in Strategic Brand Management <ul><li>Identifying and establishing brand positioning </li></ul><ul><li>Planning and implementing brand marketing </li></ul><ul><li>Measuring and interpreting brand performance </li></ul><ul><li>Growing and sustaining brand value </li></ul>
    3. 3. What is a Brand? <ul><li>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. </li></ul>
    4. 4. The Role of Brands Identify the maker Simplify product handling Organize accounting Offer legal protection
    5. 5. The Role of Brands Signify quality Create barriers to entry Serve as a competitive advantage Secure price premium
    6. 6. What is Branding? <ul><li>Branding is endowing products and services with the power of the brand. </li></ul>
    7. 7. The Scope of Branding <ul><li>Brand differences are often related to attributes or benefits of product itself. </li></ul><ul><li>Branding can be of : </li></ul><ul><li>Physical goods </li></ul><ul><li>Services </li></ul><ul><li>A store </li></ul><ul><li>A person </li></ul><ul><li>A place </li></ul><ul><li>An organization </li></ul><ul><li>An Idea </li></ul>
    8. 8. What is Brand Equity? <ul><li>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. </li></ul>
    9. 9. <ul><li>Customer Based Brand Equity </li></ul><ul><ul><li>Power of a brand lies in what customer have seen, read, heard, learnt, thought and felt about the brand over the time. </li></ul></ul><ul><ul><li>Ingredients of customer based brand equity : </li></ul></ul><ul><ul><li>Brand equity arises from differences in consumer response. </li></ul></ul><ul><ul><li>Differences in response are a result of consumer’s knowledge about the brand. </li></ul></ul><ul><ul><li>Differential response by the customers that makes up brand equity is reflected in perceptions, preferences and behavior related to all aspects of marketing of a brand. </li></ul></ul>
    10. 10. Brand Equity as a Bridge <ul><li>The quality of investment in brand building is the critical factor, not necessarily the quantity </li></ul>Brand Promise <ul><li>Marketer’s vision of what the brand must be and do for the consumers. </li></ul>
    11. 11. Key Benefits of Brand Equity <ul><li>Improved perceptions of product performance </li></ul><ul><li>Greater Loyalty </li></ul><ul><li>Less vulnerability to competitive marketing </li></ul><ul><li>Less vulnerability to marketing crises </li></ul><ul><li>Larger Margins </li></ul><ul><li>More inelastic consumer response to price increase </li></ul><ul><li>Additional Brand extension opportunities </li></ul>
    12. 12. Brand Equity Models <ul><li>Brand Asset Valuator </li></ul><ul><li>Aaker Model </li></ul><ul><li>BRANDZ </li></ul><ul><li>Brand Resonance </li></ul>
    13. 13. BAV Key Components Differentiation Degree to which a brand is seen different Energy Brand’s Sense of Momentum Relevance Breadth of brand’s appeal Esteem How well the brand is respected Knowledge How familiar and intimate consumers are Brand Strength Brand Stature
    14. 14. Power Grid Brand Strength Brand Stature Up-coming / Niche Low earning / High Potential Leaders High earning / High Potential Declining Leaders High earning / Low Potential Eroded / Commoditized Seriously Challenged New / Underdeveloped
    15. 15. Figure 10.3 Brand Dynamics Pyramid Presence Relevance Performance Advantage Bonding Strong Relationship Weak Relationship
    16. 16. Aaker Model Brand Identity Extended Identity Elements Brand Essence Core Identity Elements
    17. 17. Figure 10.3 Brand Resonance Pyramid
    18. 18. Drivers of Brand Equity Brand Elements Marketing Activities Meaning Transference
    19. 19. Brand Knowledge Knowledge Thoughts Experiences Beliefs Images Feelings
    20. 20. Brand Elements Elements Slogans Brand names URLs Logos Symbols Characters
    21. 21. Brand Element Choice Criteria <ul><li>Memorable </li></ul><ul><li>Meaningful </li></ul><ul><li>Likeability </li></ul><ul><li>Transferable </li></ul><ul><li>Adaptable </li></ul><ul><li>Protectible </li></ul>
    22. 22. Slogans <ul><li>Like a good neighbor, State Farm is there </li></ul><ul><li>Just do it </li></ul><ul><li>Nothing runs like a Deere </li></ul><ul><li>Save 15% or more in 15 minutes or less </li></ul><ul><li>We try harder </li></ul><ul><li>We’ll pick you up </li></ul><ul><li>Nextel – Done </li></ul><ul><li>Zoom Zoom </li></ul><ul><li>I’m lovin’ it </li></ul><ul><li>Innovation at work </li></ul><ul><li>This Bud’s for you </li></ul><ul><li>Always low prices </li></ul>
    23. 23. Designing Holistic Marketing Activities Personalization Integration Internalization
    24. 24. Internal Branding <ul><li>Choose the right moment </li></ul><ul><li>Link internal and external marketing </li></ul><ul><li>Bring the brand alive for employees </li></ul>
    25. 25. Figure 10.4 Secondary Sources of Brand Knowledge
    26. 26. Measuring Brand Equity Brand Audits Brand Tracking Brand Valuation
    27. 27. Table 10.2 The 10 Most Valuable Brands $22.13 Mercedes-Benz $27.50 McDonald’s $27.85 Disney $27.94 Toyota $30.13 Nokia $38.32 Intel $48.91 GE $56.20 IBM $56.93 Microsoft $67.00 Coca-Cola 2006 Brand Value (Billions) Brand
    28. 28. Managing Brand Equity Brand Reinforcement Brand Revitalization Brand Crises
    29. 29. Interbrand’s Steps in Calculating Brand Equity <ul><li>Market segmentation </li></ul><ul><li>Financial analysis </li></ul><ul><li>Role of branding </li></ul><ul><li>Brand strength </li></ul><ul><li>Brand value calculation </li></ul>
    30. 30. Devising a Branding Strategy Develop new brand elements Apply existing brand elements Use a combination of old and new
    31. 31. Branding Terms <ul><li>Brand line </li></ul><ul><li>Brand mix </li></ul><ul><li>Brand extension </li></ul><ul><li>Sub-brand </li></ul><ul><li>Parent brand </li></ul><ul><li>Family brand </li></ul><ul><li>Line extension </li></ul><ul><li>Category extension </li></ul><ul><li>Branded variants </li></ul><ul><li>Licensed product </li></ul><ul><li>Brand dilution </li></ul><ul><li>Brand portfolio </li></ul>
    32. 32. Brand Naming Individual names Blanket family names Separate family names Corporate name-individual name combo
    33. 33. Reasons for Brand Portfolios <ul><li>Increasing shelf presence and retailer dependence in the store </li></ul><ul><li>Attracting consumers seeking variety </li></ul><ul><li>Increasing internal competition within the firm </li></ul><ul><li>Yielding economies of scale in advertising, sales, merchandising, and distribution </li></ul>
    34. 34. Brand Roles in a Brand Portfolio Flankers Low-end Entry-level High-end Prestige Cash Cows
    35. 35. Marketing Debate <ul><li>Are brand extensions good or bad? </li></ul><ul><li>Take a position: </li></ul><ul><li>Brand extensions can endanger brands. </li></ul><ul><li>or </li></ul><ul><li>2. Brand extensions are an important </li></ul><ul><li>brand-growth strategy. </li></ul>
    36. 36. Marketing Discussion <ul><li>How can you relate the different models </li></ul><ul><li>brand equity presented in this chapter? </li></ul><ul><li>How are they similar? Different? </li></ul><ul><li>Can you reconstruct a brand-equity </li></ul><ul><li>Model that incorporates the best of each? </li></ul>