Brand equity

Creating Brand Equity 10 Marketing Management A South Asian Perspective, 13 th ed

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

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.

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 the brand.

The Scope of Branding
Brand differences are often related to attributes or benefits of product itself.
Branding can be of :
Physical goods
Services
A store
A person
A place
An organization
An Idea

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.

Customer Based Brand Equity
Power of a brand lies in what customer have seen, read, heard, learnt, thought and felt about the brand over the time.
Ingredients of customer based brand equity :
Brand equity arises from differences in consumer response.
Differences in response are a result of consumer’s knowledge about the brand.
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.

Brand Equity as a Bridge
The quality of investment in brand building is the critical factor, not necessarily the quantity
Brand Promise
Marketer’s vision of what the brand must be and do for the consumers.

Key Benefits of Brand Equity
Improved perceptions of product performance
Greater Loyalty
Less vulnerability to competitive marketing
Less vulnerability to marketing crises
Larger Margins
More inelastic consumer response to price increase
Additional Brand extension opportunities

Brand Equity Models
Brand Asset Valuator
Aaker Model
BRANDZ
Brand Resonance

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

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

Figure 10.3 Brand Dynamics Pyramid Presence Relevance Performance Advantage Bonding Strong Relationship Weak Relationship

Aaker Model Brand Identity Extended Identity Elements Brand Essence Core Identity Elements

Figure 10.3 Brand Resonance Pyramid

Drivers of Brand Equity Brand Elements Marketing Activities Meaning Transference

Brand Knowledge Knowledge Thoughts Experiences Beliefs Images Feelings

Brand Elements Elements Slogans Brand names URLs Logos Symbols Characters

Brand Element Choice Criteria
Memorable
Meaningful
Likeability
Transferable
Adaptable
Protectible

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
We’ll pick you up
Nextel – Done
Zoom Zoom
I’m lovin’ it
Innovation at work
This Bud’s for you
Always low prices

Designing Holistic Marketing Activities Personalization Integration Internalization

Internal Branding
Choose the right moment
Link internal and external marketing
Bring the brand alive for employees

Figure 10.4 Secondary Sources of Brand Knowledge

Measuring Brand Equity Brand Audits Brand Tracking Brand Valuation

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

Managing Brand Equity Brand Reinforcement Brand Revitalization Brand Crises

Interbrand’s Steps in Calculating Brand Equity
Market segmentation
Financial analysis
Role of branding
Brand strength
Brand value calculation

Devising a Branding Strategy Develop new brand elements Apply existing brand elements Use a combination of old and new

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

Brand Naming Individual names Blanket family names Separate family names Corporate name-individual name combo

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

Brand Roles in a Brand Portfolio Flankers Low-end Entry-level High-end Prestige Cash Cows

Marketing Debate
Are brand extensions good or bad?
Take a position:
Brand extensions can endanger brands.
or
2. Brand extensions are an important
brand-growth strategy.

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?

Brand equity

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