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BMGT 411: Chapter 8, Brand Equity
Chapter 8 Questions
• What is a brand and how does branding work?

• What is brand equity and how is it built, measured, a...
Steps in 

Strategic Brand Management
• Identifying and establishing brand positioning

• Planning and implementing brand ...
What is a Brand?
• A brand is a name, term, sign,
symbol or design, or a
combination of them, intended
to identify the goo...
Attributes of Great Brands
The Role of Brands
• Identify the maker

• Simplify product handling

• Organize accounting

• Offer legal protection
The Role of Brands
• Signify quality

• Create barriers to entry

• Serve as a competitive advantage

• Secure price premi...
What is Branding?
•Branding is endowing products
and services with the power of
the brand. 

•Teaching customers “who”
the...
What is Brand Equity?
• Brand equity is the added value endowed on products and services, which
may be reflected in the way...
Brand Equity
What comes to mind when you
think of these brand retailers?

!
Why?
Advantages of Strong Brands
• Improved perceptions of product
performance

• Greater loyalty

• Less vulnerability to comp...
What is a Brand Promise?
• A brand promise is the marketer’s vision of what the brand must be and do
for consumers.

• Wha...
Brand Equity Models
Brand Asset Valuator (BAV)
Brandz
Brand Resonance
Brand Asset Valuator
(BAV) 	
Strong New Brands: Higher in
Energized Differentiation, low
esteem and knowledge
!
Leadership...
Figure 8.2 

Brand Dynamics
BrandZ Model
Figure 8.3 Brand
Resonance Pyramid
Think of Brands in these
Stages?
Building Brand Equity
1.Identify Brand Elements (Name, Logo, URL, etc) and identities that make up
the brand

2.The Produc...
Brand Elements
• Brand names

• Slogans

• Characters

• Symbols

• Logos

• URLs

• Social Media Presence

• Customer Ser...
Brand Element Choice Criteria
• Building the Brand

• Memorable: Is the elements easily
recalled and recognized at
purchas...
Betty Crocker Images	 Brand of General Mills
The Color of a Brand
The Color of a Brand
Secondary Sources of
Brand Knowledge
Cult Brands: Building Equity
Without Promotions
http://www.youtube.com/watch?
v=ZUG9qYTJMsI&feature=playe
r_embedded#!
Measuring Brand Equity
• Brand audits: A consumer focused series of procedures to asses the health
of the brand, uncover i...
Interbrand Retail US
Brand Valuations	
http://www.interbrand.com/en/
best-global-brands/2013/BGB-
Interactive-Charts.aspx
Branding Terms (Page 122)
• Brand line

• Brand mix

• Brand extension

• Sub-brand

• Parent brand

• Family brand

• Lin...
Branding Decisions
• Individual or Separate Family Brand Names: Individual names of brands
across multiple categories, eve...
Branding Decisions
• Corporate Umbrella or Company Brand Name: Use one name across a variety
of products. Becoming very po...
Branding Decisions
• Sub Brand Names: Combines corporate umbrella brands with individual or
family brands
Brand Portfolios
• Flankers

• Cash cows

• Low-end, entry-level

• High-end prestige
Brand Portfolios
• Flankers: Fighter brands are positioned alongside competitor brands so that
more important and more pro...
Brand Extensions
• Most products are Brand Extensions (80-90%) - as they create new demand
based on trends, customer taste...
Final Notes on Brands
Final Notes on Brands
Bmgt 411 chapter_8
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Bmgt 411 chapter_8

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bmgt_411_marketing_management_ chris lovett fall 2014

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Bmgt 411 chapter_8

  1. 1. BMGT 411: Chapter 8, Brand Equity
  2. 2. Chapter 8 Questions • What is a brand and how does branding work? • What is brand equity and how is it built, measured, and managed? • What are the important decisions in developing a branding strategy?
  3. 3. Steps in 
 Strategic Brand Management • Identifying and establishing brand positioning • Planning and implementing brand marketing • Measuring and interpreting brand performance • Growing and sustaining brand value
  4. 4. 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.
  5. 5. Attributes of Great Brands
  6. 6. The Role of Brands • Identify 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 endowing products and services with the power of the brand. •Teaching customers “who” the product is •Tells customers what the product does •Reinforces why consumers should care
  9. 9. What is Brand Equity? • Brand equity is the added value endowed on products and services, which may be reflected in the way consumers, think, feel, and act with respect to the brand. • What are some of your favorite brands? • Why? • What feelings do you get when you think go these brands?
  10. 10. Brand Equity What comes to mind when you think of these brand retailers? ! Why?
  11. 11. Advantages of Strong Brands • Improved perceptions of product performance • Greater loyalty • Less vulnerability to competitive marketing actions • Less vulnerability to crises • Larger margins • More inelastic consumer response • Greater trade cooperation • Increased marketing communications effectiveness • Possible licensing opportunities
  12. 12. What is a Brand Promise? • A brand promise is the marketer’s vision of what the brand must be and do for consumers. • What do you think the brand promise is for the retailers we discussed?
  13. 13. Brand Equity Models Brand Asset Valuator (BAV) Brandz Brand Resonance
  14. 14. Brand Asset Valuator (BAV) Strong New Brands: Higher in Energized Differentiation, low esteem and knowledge ! Leadership Brands: High in all categories ! ! Declining Brands: High Knowledge, low everything else
  15. 15. Figure 8.2 
 Brand Dynamics BrandZ Model
  16. 16. Figure 8.3 Brand Resonance Pyramid Think of Brands in these Stages?
  17. 17. Building Brand Equity 1.Identify Brand Elements (Name, Logo, URL, etc) and identities that make up the brand 2.The Product, Service, and All Marketing Activities and Marketing Programs 3. Other associations indirectly transferred to the brand (Figure 8.4 Page 119)
  18. 18. Brand Elements • Brand names • Slogans • Characters • Symbols • Logos • URLs • Social Media Presence • Customer Service Strategy
  19. 19. Brand Element Choice Criteria • Building the Brand • Memorable: Is the elements easily recalled and recognized at purchase and consumption (Tide) • Meaningful: Is the element credible and suggestive of the category? Does it suggest something about an ingredient or brand user? (Diehard) • Likable: Is the element appealing and likable visually or in other ways? (iPad) • Defending a Brand • Transferrable: Can the element introduce new products in the same category or other category? (Amazon, Soap.com, Wag.com, diapers.com) • Adaptable: Can the element be adapted and updated (Betty Crocker image) • Protectable: Is the element legally and competitively protected? Google
  20. 20. Betty Crocker Images Brand of General Mills
  21. 21. The Color of a Brand
  22. 22. The Color of a Brand
  23. 23. Secondary Sources of Brand Knowledge
  24. 24. Cult Brands: Building Equity Without Promotions http://www.youtube.com/watch? v=ZUG9qYTJMsI&feature=playe r_embedded#!
  25. 25. Measuring Brand Equity • Brand audits: A consumer focused series of procedures to asses the health of the brand, uncover its sources of equity, and suggest ways to improve and leverage it’s equity. • Brand tracking: Qualitative Marketing Research that collects data from consumers over time to provide baseline information on how brands and marketing programs are performing • Brand valuation: The actual financial value of a brand
  26. 26. Interbrand Retail US Brand Valuations http://www.interbrand.com/en/ best-global-brands/2013/BGB- Interactive-Charts.aspx
  27. 27. Branding Terms (Page 122) • Brand line • Brand mix • Brand extension • Sub-brand • Parent brand • Family brand • Line extension • Category extension • Branded variants • Licensed product
  28. 28. Branding Decisions • Individual or Separate Family Brand Names: Individual names of brands across multiple categories, even though the company that makes the products are the same
  29. 29. Branding Decisions • Corporate Umbrella or Company Brand Name: Use one name across a variety of products. Becoming very popular as a strategy of private label products.
  30. 30. Branding Decisions • Sub Brand Names: Combines corporate umbrella brands with individual or family brands
  31. 31. Brand Portfolios • Flankers • Cash cows • Low-end, entry-level • High-end prestige
  32. 32. Brand Portfolios • Flankers: Fighter brands are positioned alongside competitor brands so that more important and more profitable flagship brands can retain their desire positioning • Cash cows: Still profitable without much marketing, dwindling sales, but still profitable • Low-end, entry-level: Attract customers to the brand franchise with lower prices • High-end prestige: Higher priced, adds prestige and credibility to overall portfolio
  33. 33. Brand Extensions • Most products are Brand Extensions (80-90%) - as they create new demand based on trends, customer tastes, without building the brand from scratch each time a new product is launched. • A key trend is ease and convenience “Lifehacks”
  34. 34. Final Notes on Brands
  35. 35. Final Notes on Brands

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