Chapter 9: Creating Brand Equity


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Chapter 9: Creating Brand Equity

  1. 1. CHAPTER 9: CREATING BRAND EQUITY Increasing Value Through Strategic Brand Management Anna Michelle P. Gatbonton September 17, 2013
  2. 2. 1. What is Brand? 2. The Role of Brands 3. Defining Brand Equity 4. Customer Based Brand Equity 5. How to build brand equity 6. Brand Naming Strategies Outline: The 6 Concepts in Brand Equity
  3. 3. 1. What is Brand? BRAND Name Term SignSymbol Design To identify the goods or services of a seller and to differentiate them from competitors
  4. 4. 1. Can you recognize these brands?
  5. 5. 1. APPLE: A Branding Success Story
  6. 6. 2. Why brand matters Distinguish goods of one producer from those of another Simplifies decision making and reduces risks for the consumers Simplify Product handling or tracing & help organize inventory and accounting records Protect unique features or aspects of the product Secure competitive advantage through brand loyalty
  7. 7. 2. How Apple Uses Branding Distinguishing Producers: Apple vs. Microsoft Simplifying Consumers Decision Making: Apple as the preferred brand of graphic artists Simplifying Product Handling: iMac, iPod, iPad Protect Unique features: iOS & Itunes available to Apple users Brand Loyalty: The MAC Community
  8. 8. 3. Brand Equity is important to Companies because it is… The added value endowed on products and services May be reflected in the way consumers Think Feel Act As well as Prices Market Share Profitability
  9. 9. 3. Brand Equity could either make or break a company Positive Customer Based Brand Equity •Consumers act more favorably to the product and the way it is marketed when the brand is identified, than when it is not identified Negative Customer Based Brand Equity •If consumers react less favorably to marketing activity for the brand
  10. 10. What do Customers think of Apple? - Apple has a high brand equity - For the hip and stylish generation - A lifestyle indicator - Consumers don’t mind paying a higher premium - Apple means quality
  11. 11. BRAND arises from Differences in RESPONSE 4. There are 3 key ingredients of customer- based brand equity
  12. 12. Usually true for commodities and generic version of the products Competition Must be based on 4. If There is no Response
  13. 13. Brand knowledge consists of thoughts, feelings, images, experiences, beliefs, and so on that it becomes associated with the brand 4. It could also be a result of consumers knowledge of the brand
  14. 14. PERCEPTION PREFERENCES BEHAVIOR 4. …Or a response on how it is marketed
  15. 15. 4. How high is Apple’s Brand Equity?
  16. 16. 5. How to Build your Brand Equity 1. Initial Choices for the brand elements or identities making up the brand 1. Brand names 6. Spokespeople 2. URLs 7. Slogans 3. Logos 8. Jingles 4. Symbols 9. Packages 5. Characters 10. Signage
  17. 17. 5. Keep in mind that brand elements should be… • How easy to recall and recognize? Memorable • Is it credible & suggestive of the category? • Does it suggest something about the product?Meaningful • How aesthetically appealing? • Is it likable visually, verbally and other ways? Likable • Can it be used to introduce new products in the same market segment?Transferable • How adaptable and updatable is the brand? Adaptable • How legally protectible is the brand element? • How competitively protectible?Protectible
  18. 18. 5. Designing holistic marketing activities can also build brand equity 2. Products and services and all accompanying marketing activities and supporting marketing programs
  19. 19. 5. Use new themes in designing brand-building marketing programs Personalize Integrate Internalize
  20. 20. 5. Build your brand equity by ‘borrowing’ it 3. Create brand equity by linking brand to other information in memory that conveys meaning to consumers
  21. 21. 4. Brands can also link to other sources
  22. 22. 5. How does Apple Build its Brand Equity? Brand Equity Driver What Apple is Doing 1. Brand Element - The Iconic logo - Putting I to its consumer products (iPod, iMac, iTunes) 2. Marketing Activities - Hyped product launches - Experiential marketing - Build a community 3. Secondary Brand Associations - Steve Jobs - The Apple Store
  23. 23. 6. Strategies to Brand Naming 1. Individual Names Generals Mills  1. Blanket Family Names Heinz
  24. 24. 6. Strategies to Brand Naming 3. Separate Family Names for all products Sears 4. Corporate name combined with individual product names Sony
  25. 25. … phone … music player … tablet … personal computer 6. Apple and Its iNaming Strategy
  26. 26. Branding is an important marketing tool whose main goal is to:  Identify and differentiate  Create value to the consumers …In Summary
  27. 27. CHAPTER 9: CREATING BRAND EQUITY A Show & Tell Assignment Anna Michelle P. Gatbonton September 17, 2013