Business creating-brand-equity


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Business creating-brand-equity

  1. 1. 10 Creating Brand EquityMr. Ajit AryaFaculty-MarketingDepartment of Business StudiesC. U. Shah College of Engg. & Tech.
  2. 2. Chapter Questions• What is a brand and how does branding work?• What is brand equity?• How is brand equity built, measured, and managed?• What are the important decisions in developing a branding strategy?
  3. 3. BARISTA: A Strong Brand
  4. 4. Kerala Tourism has successfully branded thedestination with a brand name, logo, and the tagline“God’s Own Country”
  5. 5. 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.
  6. 6. The Role of BrandsIdentify the maker Simplify product handling Organize accounting Offer legal protection
  7. 7. The Role of Brands Signify quality Create barriers to entry Serve as a competitive advantage Secure price premium
  8. 8. What is Branding? Branding is endowingproducts and services with the power of the brand.
  9. 9. Advantages of Branding• Consumer’s viewpoint 1. Product quality 2. Increased shopper efficiency 3. Calls attention to new products 4. Reduces psychological risk• Seller’s viewpoint 1. Handling orders, accounting, tracking down problems 2. Trademark identification – legal protection 3. Brand loyalty 4. Reduces need for in-store contact 5. Facilitates segmentation, promotion, and pricing (competitive advantage)
  10. 10. What is Brand Equity? Brand equity is the added valueendowed on products and services, which may be reflected in the wayconsumers, think, feel, and act with respect to the brand.
  11. 11. Brand KnowledgeThoughts Feelings Knowledge Images Beliefs Experiences
  12. 12. Advantages of Strong Brands• Improved perceptions of product • Larger margins performance • More inelastic• Greater loyalty consumer response• Less vulnerability to • Greater trade competitive marketing cooperation actions • Increased marketing• Less vulnerability to communications crises effectiveness • Possible licensing opportunities
  13. 13. Apple is a Strong Brand
  14. 14. What is a Brand Promise? A brand promise is the marketer’svision of what the brand must be and do for consumers.
  15. 15. Brand Equity Models• Brand Asset Valuator • Aaker Model • BRANDZ • Brand Resonance
  16. 16. BAV Key Components Differentiation Energy Relevance Esteem Knowledge
  17. 17. Brand Dynamics Pyramid Strong Relationship Bonding Advantage Performance Relevance Presence Weak Relationship
  18. 18. Aaker Model Core Identity Brand Identity ElementsExtended Identity Brand Essence Elements
  19. 19. Brand Resonance Pyramid
  20. 20. Drivers of Brand Equity Brand Elements Marketing Activities Meaning Transference
  21. 21. Brand Elements Brand names URLsSlogans Elements Logos Characters Symbols
  22. 22. Brand Element Choice Criteria• Memorable• Meaningful• Likeability• Transferable• Adaptable• Protectible
  23. 23. Slogans• Like a good neighbor, • We try harder State Farm is there • We’ll pick you up• Just do it • Nextel – Done• Nothing runs like a • Zoom Zoom Deere • I’m lovin’ it• Save 15% or more in • Innovation at work 15 minutes or less • This Bud’s for you • Always low prices
  24. 24. Designing Holistic Marketing ActivitiesPersonalization IntegrationInternalization
  25. 25. Internal Branding• Choose the right moment• Link internal and external marketing• Bring the brand alive for employees
  26. 26. Secondary Sources of Brand Knowledge
  27. 27. Measuring Brand EquityBrand Audits Brand Tracking Brand Valuation
  28. 28. The 10 Most Valuable BrandsBrand 2006 Brand Value (Billions)Coca-Cola $67.00Microsoft $56.93IBM $56.20GE $48.91Intel $38.32Nokia $30.13Toyota $27.94Disney $27.85McDonald’s $27.50Mercedes-Benz $22.13
  29. 29. Managing Brand Equity Brand Reinforcement Brand Revitalization Brand Crises
  30. 30. Interbrand’s Steps in Calculating Brand Equity • Market segmentation • Financial analysis • Role of branding • Brand strength • Brand value calculation
  31. 31. Devising a Branding Strategy Develop new brand elements Apply existing brand elements Use a combination of old and new
  32. 32. Branding Terms• Brand line • Line extension• Brand mix • Category• Brand extension extension• Sub-brand • Branded variants• Parent brand • Licensed product• Family brand • Brand dilution • Brand portfolio
  33. 33. • Line extensions refers to new sizes, styles, or related products – Coca-Cola line extensions
  34. 34. • Brand licensing licensing: practice allowing other companies to use a brand name in exchange for a payment – Nabisco Licenses Its Oreo Brand to Post Cereal
  35. 35. • Brand extension extension: application of a popular brand name to a new product in an unrelated product category – Example: Utility Lighter – A Bic Brand Extension
  36. 36. • Family brand brand: brand name that identifies several related products – Heinz A well known family brand
  37. 37. Brand NamingIndividual names Blanket family names Separate family names Corporate name- individual name combo
  38. 38. 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
  39. 39. Brand Roles in a Brand Portfolio Flankers Cash Cows Low-end High-end Entry-level Prestige
  40. 40. Thank You!!!