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MARKMA - Chapter 9

MARKMA - Chapter 9

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  • 1. CREATINGBRANDEQUITY MARKMA Rhea G. Jardin May 4, 2012 hypermarketing2.com www.
  • 2. What is a Brand? A product or service whose dimensions differentiate it in some way from other products or services designed to satisfy the same need hypermarketing2.com www.
  • 3. Differences maybe related to:A. Product performance of the brand1. Functional - 𝑓 𝑥2. Rational -3. TangibleB. What the brand represents1. Symbolic2. Emotional3. Intangible hypermarketing2.com www.
  • 4. Role of Brands1. Identify the source or maker of the product that satisfies the consumers’ needs2. Simplifies product handling or tracing3. Offers firm legal protection with intellectualproperty rights4. Signals level of quality so that buyers caneasily choose the product again hypermarketing2.com www.
  • 5. What is Branding?- Endowing products and services with the power of the brand by creating differences between products- “who” the product is, what the product does and why consumers should care hypermarketing2.com www.
  • 6. Brand Equity- the added value on products and services- reflected on how consumers think, feel and act on the brand- reflected in the prices, market share and profitability for the firm hypermarketing2.com www.
  • 7. Customer-based brand equityA. Positive – customers react more favorably toa product and the way it is marketedB. Negative – customers react less favorably tomarketing activity for the brandThree (3) key ingredients:1. Consumer response2. Consumer’s knowledge about the brand3. Consumer’s perceptions, preferences and behavior hypermarketing2.com www.
  • 8. Brand Knowledge1. Quality is the critical factor not the quantity 2. Dictates future directions for the brand basedon how consumers think and feel about the brandBrand promise - the marketer’s vision of what thebrand must be and do for consumers hypermarketing2.com www.
  • 9. Five pillars of brand equity 1. Differentiation – measures the degree to whicha brand is seen as different from others 2. Energy – measures the brand’s sense ofmomentum3. Relevance – measures the breadth of a brand’sappeal4. Esteem – measures how well the brand isregarded and respected5. Knowledge – measures how familiar andintimate consumers are with the brand hypermarketing2.com www.
  • 10. Five pillars of brand equity + + = energized brand strength- point to the brand’s future value + = brand stature- “report card” of past performance“Pillar’s pattern” reveal a brand’s current andfuture status www.hypermarketing2.com
  • 11. BrandDynamics Pyramid-Developed by Millward Brown of BRANDZMarketing as a model of brand strengthNothing else beats it BondingDoes it offer something Advantagebetter than the others?Can it deliver? PerformanceDoes it offer me Relevancesomething?Do I know Presence about it? hypermarketing2.com www.
  • 12. BrandDynamics Pyramid-Developed by Millward Brown of BRANDZMarketing as a model of brand strengthNothing else beats it Bonding Strong relationship / HighDoes it offer something share of category expenditure Advantagebetter than the others?Can it deliver? PerformanceDoes it offer me Relevancesomething?Do I know Presence Weak relationship / about it? Low share of category expenditure hypermarketing2.com www.
  • 13. Brand Resonance ModelStages of Brand Brand Brand building Branding objective at Development blocks each stage 4. Relationships Resonance = what about Intense, active you and me? loyalty 3. Response = Judgments Feelings Positive, what about accessible you? reactions 2. Meaning = Performance Imagery Points-of- what are you? parity & difference Salience 1. Identity = Deep, broad who are you? brand awareness hypermarketing2.com www.
  • 14. Brand Resonance ModelBrand salience – how often and how easily customers think of the brand under various purchase or consumption situationsBrand performance – how well the product or service meets customers’ functional needsBrand imagery – the ways in which brand attempts to meet customers’ psychological or social needsBrand judgments – focus on customers’ own personal opinions and evaluationsBrand feelings – customers’ emotional responses and reactions with respect to the brandBrand resonance – nature of the relationship customers have with the brand (“in sync” with it) www.hypermarketing2.com
  • 15. Brand equity drivers1. Initial choices for the brand elements or identities making up the brand2. The way the brand is integrated into the supporting marketing program3. The associations indirectly transferred to the brand by linking the brand to some other entity hypermarketing2.com www.
  • 16. Brand element choice criteria1. Memorable – how easily the brand element is recalled and recognized (i.e. short names)2. Meaningful – credibility of the brand, product ingredient or type of person who might use the brand3. Likeable – how visually and verbally appealing is the brand element4. Transferable – can the brand element be used to introduce new products in the same or different categories? www.hypermarketing2.com
  • 17. Brand element choice criteria5. Adaptable – how adaptable and updatable is the brand element Betty Crocker in 1936 Betty Crocker in 19866. Protectible – brand names that become synonymous with product categories www. hypermarketing2.com
  • 18. Measuring brand equity1. Brand audit - measures “where the brand has been”2. Brand-tracking studies – measure “where the brand is now” and whether marketing programs are having the intended effects hypermarketing2.com www.
  • 19. Measuring brand equityBrand valuation – estimating the total financial value of the brand Rank Brand 2006 Brand Value (Billions) 1 Coca-cola $67.00 2 Microsoft $56.93 3 IBM $56.20 4 GE $48.91 5 Intel $38.32 6 Nokia $30.13 7 Toyota $27.94 8 Disney $27.85 9 McDonald’s $27.50 10 Mercedes-Benz $22.13 hypermarketing2.com www.
  • 20. Managing brand equity1. Brand reinforcement - requires innovation and relevance throughout the marketing program - brand must be moving forward in the right direction with new offerings and ways to market them2. Brand revitalization - reinvention strategy - renewal of commitment to quality www.hypermarketing2.com
  • 21. Brand Equityreflected on where customers price market share profitability quality is a factor over quantity Pillars of brand equity: differentiation energy relevance esteem knowledge energized brand strength brand staturecriteria for brand element:memorable/short meaningful likeable transferrable adaptable protectible www. hypermarketing2.com
  • 22. CREATINGBRANDEQUITY MARKMA Rhea G. Jardin May 4, 2012 hypermarketing2.com www.