Brand equity ppt of mba

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Brand equity ppt of mba

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Brand equity ppt of mba

  1. 1. Marketing Management © 2010 South-Western, a part of Cengage Learning
  2. 2. Brands
  3. 3. Brands <ul><li>Marketers believe that brands have value, above and beyond the benefits of the product itself </li></ul><ul><li>Brand </li></ul><ul><ul><li>portfolio of qualities associated with a name </li></ul></ul><ul><ul><ul><li>More than just a name </li></ul></ul></ul>
  4. 4. Brands <ul><li>Qualities associated with the brand </li></ul><ul><ul><li>Some qualities are under marketer control </li></ul></ul><ul><ul><ul><li>Product shape </li></ul></ul></ul><ul><ul><ul><li>Product packaging </li></ul></ul></ul><ul><ul><ul><li>Logos, shapes & symbols </li></ul></ul></ul><ul><ul><ul><li>Colors </li></ul></ul></ul><ul><ul><ul><li>Jingles & slogans </li></ul></ul></ul><ul><ul><ul><li>Spokespeople </li></ul></ul></ul><ul><ul><li>Some are not </li></ul></ul><ul><ul><ul><li>Personal memories about brands </li></ul></ul></ul>
  5. 5. Brand Name <ul><li>A brand is first and foremost a name </li></ul><ul><ul><li>Some names immediately convey information </li></ul></ul><ul><ul><ul><li>Geek Squad </li></ul></ul></ul><ul><ul><li>Some names suggest their benefits </li></ul></ul><ul><ul><ul><li>Motorola's Razr phone </li></ul></ul></ul><ul><ul><li>Some names are those of their founder </li></ul></ul><ul><ul><ul><li>Trump Tower </li></ul></ul></ul><ul><li>Try to choose brand names that convey information about the benefits of brand </li></ul>
  6. 6. Customer Benefits of Branding <ul><li>For the customer </li></ul><ul><ul><li>Brands convey information </li></ul></ul><ul><ul><ul><li>Sony is quality. Anything from Sony is quality </li></ul></ul></ul><ul><ul><li>Brands signal consistent quality </li></ul></ul><ul><ul><ul><li>Brands allow for predictability regarding quality </li></ul></ul></ul><ul><ul><li>Brands confer status </li></ul></ul><ul><ul><ul><li>Some brands bolster consumer’s self-image </li></ul></ul></ul><ul><ul><li>Brands reduce the risk of purchase </li></ul></ul><ul><ul><li>Brands make purchase decisions easier </li></ul></ul><ul><ul><ul><li>Customers know what they are getting </li></ul></ul></ul>
  7. 7. Company Benefits of Branding <ul><li>For the company </li></ul><ul><ul><li>Brands enhance loyalty </li></ul></ul><ul><ul><ul><li>If brand satisfies, brand image is solidified </li></ul></ul></ul><ul><ul><li>Brands allow charging premium prices </li></ul></ul><ul><ul><li>Brands assist in STP </li></ul></ul><ul><ul><ul><li>Multiple brands allow firms to target multiple segments </li></ul></ul></ul><ul><ul><li>Brands inoculate the company from some competitive action </li></ul></ul><ul><ul><li>Brands encourage channel partners’ support </li></ul></ul>
  8. 8. Brand Associations <ul><li>Product attributes </li></ul><ul><ul><li>Color, size, shape, flavor, etc. </li></ul></ul><ul><li>Product benefits </li></ul><ul><ul><li>More intangible than product attributes </li></ul></ul><ul><ul><ul><li>This sweater is flattering </li></ul></ul></ul>
  9. 9. Brand Associations <ul><li>Emotional benefits </li></ul><ul><ul><li>More intangible than product benefits </li></ul></ul><ul><ul><ul><li>A flattering sweater is a means to achieving the goal of being attractive </li></ul></ul></ul><ul><li>Benefits are more meaningful and easier to claim as an advantage BUT…harder to create </li></ul>
  10. 10. Brand Associations <ul><li>Brands can serve social functions </li></ul><ul><ul><li>Brands can be expressions of the customer’s ideal self </li></ul></ul><ul><ul><ul><li>Teenagers with the “right” shoes </li></ul></ul></ul><ul><ul><li>Brands can become the focal point of bonding </li></ul></ul><ul><ul><ul><li>Harley Davidson Riders </li></ul></ul></ul>
  11. 11. Brand Personalities <ul><li>Brand personalities can capture something specific or holistic about the brand position in the marketplace </li></ul><ul><ul><li>MTV is not just a music cable station—it’s a way of life for young, cool people </li></ul></ul><ul><li>Brand personality profiles are not better than others…they are just different </li></ul>
  12. 12. Brand Communities <ul><li>Some customers are so passionate about their love for certain brands that they like to connect with other like-minded customers </li></ul><ul><ul><li>HOGS riding groups, Harry Potter blogs, etc. </li></ul></ul><ul><li>Marketers can encourage and build upon these communities </li></ul>
  13. 13. Branding Strategies <ul><li>Umbrella Brands </li></ul><ul><ul><li>Company attaches same brand name to all of its products </li></ul></ul><ul><ul><ul><li>Subsequent product introductions are easier for the customer to understand and accept </li></ul></ul></ul><ul><ul><ul><li>Higher initial awareness levels </li></ul></ul></ul><ul><ul><ul><li>Stronger financial outcomes for company </li></ul></ul></ul><ul><ul><ul><ul><li>Honda </li></ul></ul></ul></ul>
  14. 14. Branding Strategies <ul><li>House of brands </li></ul><ul><ul><li>Company introduces a new brand name for every major line of product it brings to the marketplace </li></ul></ul><ul><ul><ul><li>Problems of one brand shouldn’t negatively affect other brands </li></ul></ul></ul><ul><ul><ul><li>Companies can reach multiple segments </li></ul></ul></ul><ul><ul><ul><ul><li>P&G </li></ul></ul></ul></ul>
  15. 15. Brand Extensions <ul><li>Brand extensions </li></ul><ul><ul><li>Marketer leverages the brand’s good name to get customers to buy something new </li></ul></ul><ul><ul><ul><li>Line extensions: apply to a product within a product line </li></ul></ul></ul><ul><ul><ul><li>Category extensions: apply to a product in a different product line </li></ul></ul></ul>
  16. 16. Co-branding <ul><li>Co-branding </li></ul><ul><ul><li>Two companies collaborate in a joint venture to create a good or service for the customer </li></ul></ul><ul><ul><ul><li>Cole Haan shoes with Nike Air technology </li></ul></ul></ul><ul><li>Ingredient branding </li></ul><ul><ul><li>One of the companies and its product is the primary host and the other company and its product add value to the host product </li></ul></ul><ul><ul><ul><li>American Airlines serving Starbucks coffee </li></ul></ul></ul>
  17. 17. Co-branding <ul><li>Co-branding works well when a company is introducing a new product attribute </li></ul><ul><ul><li>Adding cough medicine to candy </li></ul></ul><ul><li>Self-branding (Branding one of their own ingredients to differentiate its quality from competitors) works better when tweaking a minor attribute </li></ul><ul><ul><li>Tide’s “EverFresh” scent </li></ul></ul>
  18. 18. Global Brands <ul><li>Global brands </li></ul><ul><ul><li>At least 30% of the brand’s revenues come from other countries </li></ul></ul><ul><li>Options </li></ul><ul><ul><li>Glocalization: manufacture globally, brand locally </li></ul></ul><ul><ul><li>Use the same name globally </li></ul></ul><ul><ul><ul><li>Greater advantages to maintaining single brand worldwide </li></ul></ul></ul>
  19. 19. Store Brands <ul><li>Private label brands </li></ul><ul><ul><li>Less expensive and more of a “me-too” product offering </li></ul></ul><ul><ul><ul><li>Target’s “Archer Farms,” Kroger’s “Private Selection,” and Costco’s “Kirkland Signature” </li></ul></ul></ul><ul><ul><li>The retailer can offer decent quality for lower prices due to reduced advertising costs </li></ul></ul>
  20. 20. Brand Equity <ul><li>Brand Equity </li></ul><ul><ul><li>The worth of a brand </li></ul></ul><ul><li>Measurement Approaches </li></ul><ul><ul><li>Determining the price premium of brand </li></ul></ul><ul><ul><ul><li>“ How much are you willing to pay for gas at Shell?” vs. </li></ul></ul></ul><ul><ul><ul><li>“ How much are you willing to pay at a local station?” </li></ul></ul></ul><ul><ul><li>Comparing branded and unbranded </li></ul></ul><ul><ul><ul><li>“ How much do you like this $799 Sony flat screen with screen-within-a-screen?” vs. </li></ul></ul></ul><ul><ul><ul><li>“ How much do you like this $799 unknown brand flat screen sharing the same features?” </li></ul></ul></ul>
  21. 21. Brand Equity <ul><li>Measurement Approaches, cont. </li></ul><ul><ul><li>Interbrand: assess the value of a firm, subtract its physical and financial assets </li></ul></ul><ul><ul><ul><li>Brand contribution index varies by product category: high for cologne, lower for retailers </li></ul></ul></ul>

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