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 :
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
Marketer’s vision of what the brand must be and do for the consumers.
Key Benefits of Brand Equity
Improved perceptions of product performance
Less vulnerability to competitive marketing
Less vulnerability to marketing crises
More inelastic consumer response to price increase
Additional Brand extension opportunities
Brand Equity Models
Brand Asset Valuator
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
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