CREATING BRAND EQUITY DAVID AAKER
CREATING BRAND EQUITY  <ul><li>BUILDING A STRONG BRAND REQUIRES CAREFUL PLANNING &  GREAT DEAL  </li></ul><ul><li>OF LONG-...
The scope of branding <ul><li>All about creating differences </li></ul><ul><li>Differences often related to attributes or ...
Defining brand equity <ul><li>Brand equity is the added value endowed to products & services </li></ul><ul><li>Marketers &...
A. Customer-based brand equity <ul><li>A BRAND IS SAID TO HAVE A POSITIVE CUSTOMER-BASED BRAND EQUITY WHEN CONSUMERS REACT...
Brand equity as a bridge <ul><li>All marketing spends each year on products & services should be thought of as investments...
Brand equity models <ul><li>  Aaker’s model </li></ul>
A. Aaker’s model <ul><li>DAVID AAKER VIEWS BRAND EQUITY AS A SET OF 5 CATEGORIES OF ASSETS & LIABILITIES LINKED TO  BRAND ...
BRAND IDENTITY <ul><li>BRAND IDENTITY IS A UNIQUE SET OF BRAND ASSOCIATIONS THAT THE BRAND STRATEGIST ASPIRES TO CREATE OR...
BRAND IDENTITY( contd.) <ul><li>BRAND IDENTITY SHOULD HELP ESTABLISH A RELATIONSHIP BETWEEN THE BRAND & THE CUSTOMER BY GE...
BRAND IDENTITY (contd.) <ul><li>CONSISTS OF  12 DIMENSIONS OF BRAND   ORGANIZED AROUND  4 PERSPECTIVES : </li></ul><ul><li...
<ul><li>STRATEGIC BRAND ANALYSIS </li></ul><ul><li>Customer analysis Competitor analysis Self-analysis </li></ul><ul><li>T...
A McDonald’s  Brand Identity <ul><li>MCDONALD’S, WHICH DOES ABOUT $26 BILLION OF BUSINESS IN 79 COUNTRIES, HAS ONE OF THE ...
McDonald’s Core Identity <ul><li>Value offering: McDonald’s provides value as defined by the product, special offers, & bu...
McDonald’s Extended Identity <ul><li>Convenience: most convenient, quick-service restaurant – located close to where peopl...
McDonald’s Value Proposition <ul><li>Functional benefits: good-tasting hamburgers, fries, & drinks that provide value, ext...
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brand equity

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brand equity

  1. 1. CREATING BRAND EQUITY DAVID AAKER
  2. 2. CREATING BRAND EQUITY <ul><li>BUILDING A STRONG BRAND REQUIRES CAREFUL PLANNING & GREAT DEAL </li></ul><ul><li>OF LONG-TERM INVESTMENT. </li></ul><ul><li>AT THE HEART OF A SUCCESSFUL BRAND IS A GREAT PRODUCT OR SERVICE, BACKED BY A CREATIVELY DESIGNED </li></ul><ul><li>& EXECUTED MARKETING. </li></ul>
  3. 3. The scope of branding <ul><li>All about creating differences </li></ul><ul><li>Differences often related to attributes or benefits of product itself, or </li></ul><ul><li>By understanding consumer motivations & desires & creating relevant & appealing images round their products </li></ul><ul><li>Branding can be applied virtually anywhere a consumer has a choice </li></ul>
  4. 4. Defining brand equity <ul><li>Brand equity is the added value endowed to products & services </li></ul><ul><li>Marketers & researchers use various perspectives to study brand equity </li></ul><ul><li>Customer-based brand equity can be defined as the differential effect that brand knowledge has on consumer response to marketing of that brand </li></ul>
  5. 5. A. Customer-based brand equity <ul><li>A BRAND IS SAID TO HAVE A POSITIVE CUSTOMER-BASED BRAND EQUITY WHEN CONSUMERS REACT FAVOURABLY TO A PRODUCT & THE WAY IT IS MARKETED WHEN THE BRAND IS IDENTIFIED AS COMPARED TO WHEN IT IS NOT: </li></ul><ul><li>3 main ingredients to this definition: </li></ul><ul><li>Brand equity arises from differences in consumer response </li></ul><ul><li>Differences as a result of consumer’s knowledge about the brand </li></ul><ul><li>Reflected in perceptions, preferences, & behaviour related to all aspects of the marketing of a brand </li></ul>
  6. 6. Brand equity as a bridge <ul><li>All marketing spends each year on products & services should be thought of as investments in consumer brand knowledge </li></ul><ul><li>It is actually possible to “overspend” on brand building </li></ul><ul><li>At the same time, the brand knowledge created by these marketing investments dictates appropriate future directions for the brand </li></ul>
  7. 7. Brand equity models <ul><li> Aaker’s model </li></ul>
  8. 8. A. Aaker’s model <ul><li>DAVID AAKER VIEWS BRAND EQUITY AS A SET OF 5 CATEGORIES OF ASSETS & LIABILITIES LINKED TO BRAND THAT ADD OR SUBTRACT FROM THE VALUE PROVIDED BY THE PRODUCT OR SERIVICE TO FIRM AND/OR TO THE FIRM’S CUSTOMERS: </li></ul><ul><li>These categories of brand assets are: </li></ul><ul><li>Brand loyalty </li></ul><ul><li>Brand awareness </li></ul><ul><li>Perceived quality </li></ul><ul><li>Brand association </li></ul><ul><li>Other proprietary assets (patents, trademarks, channel relationships) </li></ul>
  9. 9. BRAND IDENTITY <ul><li>BRAND IDENTITY IS A UNIQUE SET OF BRAND ASSOCIATIONS THAT THE BRAND STRATEGIST ASPIRES TO CREATE OR MAINTAIN THESE ASSOCIATIONS REPRESENT WHAT THE BRAND STANDS FOR & IMPLY A PROMISE TO CUSTOMERS FROM THE ORGANIZATION MEMBERS </li></ul>
  10. 10. BRAND IDENTITY( contd.) <ul><li>BRAND IDENTITY SHOULD HELP ESTABLISH A RELATIONSHIP BETWEEN THE BRAND & THE CUSTOMER BY GENERATING A VALUE PROPOSITION INVOLVING FUNCTIONAL, EMOTIONAL, OR SELF-EXPRESSIVE BENEFITS </li></ul>
  11. 11. BRAND IDENTITY (contd.) <ul><li>CONSISTS OF 12 DIMENSIONS OF BRAND ORGANIZED AROUND 4 PERSPECTIVES : </li></ul><ul><li>As a product: product scope, product attributes, quality/value, uses, user, country of origin </li></ul><ul><li>As an organization: organizational attributes, local vs. global </li></ul><ul><li>As a person: brand personality, brand-customer relationships </li></ul><ul><li>As a symbol: visual imagery/metaphors, heritage </li></ul><ul><li>CORE & EXTENDED IDENTITY: </li></ul><ul><li>Core identity : central timeless essence of the brand – remains constant as brand travels to new markets/products </li></ul><ul><li>Extended identity : includes various brand identity elements, organised into cohesive & meaningful groups </li></ul>
  12. 12. <ul><li>STRATEGIC BRAND ANALYSIS </li></ul><ul><li>Customer analysis Competitor analysis Self-analysis </li></ul><ul><li>Trends Brand image/identity Existing brand image </li></ul><ul><li>Motivation Strengths, strategies Brand heritage </li></ul><ul><li>Unmet needs Vulnerabilities Strengths, capabilities </li></ul><ul><li>Segmentation Organization values </li></ul><ul><li>BRAND IDENTITY SYSTEMS </li></ul><ul><li>BRAND IDENTITY </li></ul><ul><li>Extended </li></ul><ul><li>Core </li></ul><ul><li>Brand as Brand as Brand as Brand as </li></ul><ul><li>Product organization person symbol </li></ul><ul><li>1.Product scope 7.Organization attributes 9.Personality 11.Visual </li></ul><ul><li>2.Product attributes 8.Local vs. global 10.Brand- imagery & </li></ul><ul><li>3.Quality/value customer metaphors </li></ul><ul><li>4.Uses relationships 12.Brand </li></ul><ul><li>5.Users heritage </li></ul><ul><li>6.Country of origin </li></ul><ul><li>VALUE PROPOSITION CREDIBILITY </li></ul><ul><li>*Functional *Emotional *Self-expressive *Support other brands </li></ul><ul><li>BRAND-CUSTOMER RELATIONSHIPS </li></ul><ul><li>BRAND IDENTITY IMPLEMENTATION </li></ul><ul><li>BRAND POSITION </li></ul><ul><li>*Subset of the brand identity& value proposition *To be actively communicated </li></ul><ul><li>*At a target audience *Providing competitive advantage </li></ul><ul><li>EXECUTION </li></ul><ul><li>*Generate alternatives *Symbols & metaphors *Testing </li></ul><ul><li>TRACKING </li></ul>
  13. 13. A McDonald’s Brand Identity <ul><li>MCDONALD’S, WHICH DOES ABOUT $26 BILLION OF BUSINESS IN 79 COUNTRIES, HAS ONE OF THE MOST SUCCESSFUL BRANDS. </li></ul><ul><li>THE FOCUS FOR MCDONALD’S HAS BEEN ON VALUE, IN PART BECAUSE CUSTOMERS VALUE CONSCIOUS & IN PART BECAUSE IT MUST COMPETE WITH AGGRESSIVE VALUE APPROACH OF PEPSICO’S TACO BELL. </li></ul><ul><li>HOWEVER, THE BRAND AS SYMBOLIZED BY THE GOLDEN ARCHES HAS A RICH IDENTITY THAT PROVIDES SEVERAL LINKS TO THE CUSTOMER </li></ul>
  14. 14. McDonald’s Core Identity <ul><li>Value offering: McDonald’s provides value as defined by the product, special offers, & buying experience given the price </li></ul><ul><li>Food quality: consistently hot, good-tasting at any McDonald’s in the world </li></ul><ul><li>Service: fast, accurate, friendly, & hassle free </li></ul><ul><li>Cleanliness: operations are always spotless on both sides of the counter </li></ul><ul><li>User: families & kids are a focus, but serves a wide clientele </li></ul>
  15. 15. McDonald’s Extended Identity <ul><li>Convenience: most convenient, quick-service restaurant – located close to where people live, work, & gather; features efficient, time-saving service; & serves easy-to-eat food </li></ul><ul><li>Product scope: fast food, hamburgers, children’s entertainment </li></ul><ul><li>Sub-brands: Big Mac, Egg McMuffin, Happy Meals, Extra Value Meals, … </li></ul><ul><li>Corporate citizenship: Ronald McDonald children’s Charities, Ronald McDonald House </li></ul><ul><li>Brand personality: family oriented, all-American, genuine, wholesome, cheerful, fun </li></ul><ul><li>Relationship: family/fun associations are inclusive, McDonald’s is part of the good times </li></ul><ul><li>Ronald McDonald’s Children’s Charities engender respect, liking, & admiration </li></ul><ul><li>Logo: Golden Arches </li></ul><ul><li>Characters: Ronald McDonald; McDonald’s dolls & toys </li></ul>
  16. 16. McDonald’s Value Proposition <ul><li>Functional benefits: good-tasting hamburgers, fries, & drinks that provide value, extras such as play grounds, prizes, premiums, & games </li></ul><ul><li>Emotional benefits: Kids – fun via excitement of birthday parties, relationship with Ronald McDonald & other characters, & feeling of special family times </li></ul><ul><li>Adults – warmth via link to family events & experiences reinforced by the McDonald’s emotional advertising </li></ul>
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