15.3Summary of Customer-Based BrandSummary of Customer-Based BrandEquity FrameworkEquity Framework Sources of brand equitySources of brand equity StrengthStrength FavorabilityFavorability UniquenessUniqueness Outcomes of brand equityOutcomes of brand equity Greater loyaltyGreater loyalty Less vulnerability to competitive marketing actionsLess vulnerability to competitive marketing actions Less vulnerability to marketing crisesLess vulnerability to marketing crises Larger marginsLarger margins More inelastic consumer response to price increasesMore inelastic consumer response to price increases More elastic consumer response to price decreasesMore elastic consumer response to price decreases Greater trade cooperation and supportGreater trade cooperation and support Increased marketing communication effectivenessIncreased marketing communication effectiveness Possible licensing opportunitiesPossible licensing opportunities Additional brand extension opportunitiesAdditional brand extension opportunities
15.4Tactical GuidelinesTactical Guidelines Building brand equityBuilding brand equity1.1. Through the initial choice of the brand elementsThrough the initial choice of the brand elementsmaking up the brandmaking up the brand2.2. Through marketing activities and the design of theThrough marketing activities and the design of themarketing programmarketing program3.3. Through the leverage of secondary associationsThrough the leverage of secondary associationsthat link the brand to other entitiesthat link the brand to other entities
15.5Guidelines for Building Brand EquityGuidelines for Building Brand Equity Mix and match brand elements Create a rich brand image and high perceivedquality Adopt value-based pricing strategy Consider a range of distribution options Mix marketing communication options Leverage secondary associations
15.6Importance of Complementarity andImportance of Complementarity andConsistencyConsistency CComplementarityomplementarity means choosing different brandmeans choosing different brandelements and supporting marketing activities so thatelements and supporting marketing activities so thatthe potential contribution to brand equity of onethe potential contribution to brand equity of onecompensates for the shortcomings of others.compensates for the shortcomings of others. A high degree ofA high degree of consistencyconsistency across these elements helpsacross these elements helpsto create the highest level of awareness and theto create the highest level of awareness and thestrongest and most favorable associations possible.strongest and most favorable associations possible.
15.7Guidelines for Measuring Brand EquityGuidelines for Measuring Brand Equity Formalize the firm’s view of brand equity Conduct brand inventories Conduct consumer tracking studies Assemble results of outcome measures Establish a department to oversee theimplementation
15.8Guidelines for Managing Brand EquityGuidelines for Managing Brand Equity Define brand hierarchy Create global associations Introduce brand extensions Clearly establish the roles of brands in theportfolio Reinforce brand equity over time Enhance brand equity over time Identify differences in consumer behavior indifferent market segments
15.9Characteristics of Strong BrandsCharacteristics of Strong BrandsManagersManagers Understand brand meaning and market appropriate products in anUnderstand brand meaning and market appropriate products in anappropriate mannerappropriate manner Properly position the brandProperly position the brand Provide superior delivery of desired benefitsProvide superior delivery of desired benefits Employ a full range of complementary brand elements andEmploy a full range of complementary brand elements andsupporting marketing activitiessupporting marketing activities Embrace integrated marketing communications and communicateEmbrace integrated marketing communications and communicatewith a consistent voicewith a consistent voice Measure consumer perceptions of value and develop a pricingMeasure consumer perceptions of value and develop a pricingstrategy accordinglystrategy accordingly Establish credibility and appropriate brand personality and imageryEstablish credibility and appropriate brand personality and imagery Maintain innovation and relevance for the brandMaintain innovation and relevance for the brand Strategically design and implement a brand hierarchy and brandStrategically design and implement a brand hierarchy and brandportfolioportfolio Implement a brand equity management system to ensure thatImplement a brand equity management system to ensure thatmarketing actions properly reflect the brand equity conceptmarketing actions properly reflect the brand equity concept
15.10Seven Deadly Sins of Brand ManagementSeven Deadly Sins of Brand Management1.1. Failure to understand the full meaning of theFailure to understand the full meaning of thebrandbrand2.2. Failure to live up to the brand promiseFailure to live up to the brand promise3.3. Failure to adequately support the brandFailure to adequately support the brand4.4. Failure to be patient with the brandFailure to be patient with the brand5.5. Failure to adequately control the brandFailure to adequately control the brand6.6. Failure to properly balance consistency andFailure to properly balance consistency andchange with the brandchange with the brand7.7. Failure to understand complexity of brandFailure to understand complexity of brandequity measurement and managementequity measurement and management
15.11Industrial and B2B BrandingIndustrial and B2B Branding Adopt a corporate or family branding strategyAdopt a corporate or family branding strategy Link non-product-related imagery associationsLink non-product-related imagery associations Employ full range of marketing communicationEmploy full range of marketing communicationoptionsoptions Leverage equity of other companies that areLeverage equity of other companies that arecustomerscustomers Segment markets carefully and develop tailoredSegment markets carefully and develop tailoredbranding and marketing programsbranding and marketing programs
15.12Guidelines for High-Tech BrandingGuidelines for High-Tech Branding Establish brand awareness and rich brand imageEstablish brand awareness and rich brand image Create corporate credibility associationsCreate corporate credibility associations Leverage secondary associations of qualityLeverage secondary associations of quality Avoid overbranding productsAvoid overbranding products Selectively introduce new products as newSelectively introduce new products as newbrands and clearly identify the nature of brandbrands and clearly identify the nature of brandextensionsextensions
15.13Guidelines for Service BrandingGuidelines for Service Branding Maximize service qualityMaximize service quality Employ a full range of brand elements to enhanceEmploy a full range of brand elements to enhancebrand recallbrand recall Create and communicate strong organizationalCreate and communicate strong organizationalassociationsassociations Design corporate communication programs thatDesign corporate communication programs thataugment consumers’ service encounters andaugment consumers’ service encounters andexperiencesexperiences Establish a brand hierarchy using distinct family orEstablish a brand hierarchy using distinct family orindividual brands as well as meaningful ingredientindividual brands as well as meaningful ingredientbrandsbrands
15.14Guidelines for Branding RetailersGuidelines for Branding Retailers Create a brand hierarchy consisting of the storeCreate a brand hierarchy consisting of the storeas a whole as well as individual departmentsas a whole as well as individual departments Enhance the manufacturer’s brand equity byEnhance the manufacturer’s brand equity bycommunicating PODscommunicating PODs Establish brand equity at all levels of the brandEstablish brand equity at all levels of the brandhierarchyhierarchy Create multichannel shopping experienceCreate multichannel shopping experience Avoid overbrandingAvoid overbranding
15.15Guidelines for Small Business BrandingGuidelines for Small Business Branding Emphasize building one or two strong brandsEmphasize building one or two strong brands Focus the marketing program on one or two keyFocus the marketing program on one or two keyassociationsassociations Employ a well-integrated set of brand elements thatEmploy a well-integrated set of brand elements thatenhances both brand awareness and imageenhances both brand awareness and image Design creative brand-building push campaignsDesign creative brand-building push campaigns Leverage as many secondary associations asLeverage as many secondary associations aspossiblepossible
15.16Guidelines for Online BrandingGuidelines for Online Branding Don’t forget the brand building basicsDon’t forget the brand building basics Create strong brand identityCreate strong brand identity Generate strong consumer pullGenerate strong consumer pull Selectively choose brand partnershipsSelectively choose brand partnerships Maximize relationship marketingMaximize relationship marketing
15.17Future Brand PrioritiesFuture Brand Priorities How will branding change in the coming years?How will branding change in the coming years?What are the biggest branding challenges? WhatWhat are the biggest branding challenges? Whatwill make a successful “twenty-first-centurywill make a successful “twenty-first-centurybrand”?brand”?
15.18Building Brand EquityBuilding Brand Equity Brand elementsBrand elements In a cluttered, competitive marketplace, the brandIn a cluttered, competitive marketplace, the brandelements that make up the brand will have to doelements that make up the brand will have to domore and more of the selling job.more and more of the selling job. Marketing programsMarketing programs Strong brands in the twenty-first century also willStrong brands in the twenty-first century also willrise above others by better understanding the needs,rise above others by better understanding the needs,wants, and desires of consumers and creatingwants, and desires of consumers and creatingmarketing programs that fulfill and even surpassmarketing programs that fulfill and even surpassconsumer expectations.consumer expectations.
15.19Measuring Brand EquityMeasuring Brand Equity Marketers of successful twenty-first-centuryMarketers of successful twenty-first-centurybrands will create formalized measurementbrands will create formalized measurementapproaches and processes that ensure theyapproaches and processes that ensure theycontinually monitor their sources of brandcontinually monitor their sources of brandequity and those of competitors.equity and those of competitors.
15.20Managing Brand EquityManaging Brand Equity It will be essential in building strong twenty-first-It will be essential in building strong twenty-first-century brands to align internal and external brandcentury brands to align internal and external brandmanagement.management. Internal brand managementInternal brand management ensures that employees andensures that employees andmarketing partners appreciate and understand basic brandingmarketing partners appreciate and understand basic brandingnotions and how they can affect the equity of brands.notions and how they can affect the equity of brands. External brand managementExternal brand management requires understanding the needs,requires understanding the needs,wants, and desires of consumers and creating brandwants, and desires of consumers and creating brandmarketing programs that fulfill and even surpass consumermarketing programs that fulfill and even surpass consumerexpectations.expectations. Companies must also align bottom-up and top-downCompanies must also align bottom-up and top-downmarketing management .marketing management .
15.21Achieving Marketing BalanceAchieving Marketing Balance The most fundamental challenge of marketingThe most fundamental challenge of marketingand brand management is reconciling the manyand brand management is reconciling the manypotential trade-offs in marketing decisionspotential trade-offs in marketing decisions There are three means or levels of achievingThere are three means or levels of achievingmarketing balance, in increasing order ofmarketing balance, in increasing order ofpotential effectiveness:potential effectiveness: AlternateAlternate DivideDivide FinesseFinesse