The document discusses integrated marketing communications and customer-based brand equity. It defines the roles of marketing communications in informing, persuading, and building relationships with consumers to contribute to brand equity. It emphasizes that different communication options can accomplish different objectives depending on their strengths. The key is for marketers to evaluate all options to create the desired brand knowledge structures effectively and at optimal cost.

1. 1
BRAND MANAGEMENT

2. 2
What is a Brand?
 A brand is a name, term, sign, symbol,
or design which is intended to identify the
goods or services of one seller or group
of sellers and to differentiate them from
those of competitors.

3. 3
New Branding Challenges
 Brands are important as ever
 Consumer need for simplification
 Consumer need for risk reduction
 Brand management is as difficult as ever
 Savvy consumers
 Increased competition
 Decreased effectiveness of traditional
marketing tools and emergence of new
marketing tools
 Complex brand and product portfolios

4. 4
The Customer/Brand Challenge
 In this difficult environment, marketers
must have a keen understanding of:
 customers
 brands
 the relationship between the two

5. 5
The Concept of Brand Equity
 The brand equity concept stresses the
importance of the brand in marketing
strategies.
 Brand equity is defined in terms of the
marketing effects uniquely attributable to
the brand.
 Brand equity relates to the fact that different
outcomes result in the marketing of a product or
service because of its brand name, as compared to if
the same product or service did not have that name.

6. 6
The Concept of
Customer-Based Brand Equity
 Customer-based brand equity
 Differential effect
 Customer brand knowledge
 Customer response to brand marketing

7. 7
Determinants of
Customer-Based Brand Equity
 Customer is aware of and familiar with the
brand
 Customer holds some strong, favorable, and
unique brand associations in memory

8. 8
Building
Customer-Based Brand Equity
 Brand knowledge structures depend on . . .
 The initial choices for the brand elements
 The supporting marketing program and the
manner by which the brand is integrated into
it
 Other associations indirectly transferred to
the brand by linking it to some other entities

9. 9
Benefits of
Customer-Based Brand Equity
 Enjoy greater brand loyalty, usage, and
affinity
 Command larger price premiums
 Receive greater trade cooperation &
support
 Increase marketing communication
effectiveness
 Yield licensing opportunities
 Support brand extensions.

10. 10
Customer-Based Brand Equity
as a “Bridge”
 Customer-based brand equity represents
the “added value” endowed to a product
as a result of past investments in the
marketing of a brand.
 Customer-based brand equity provides
direction and focus to future marketing
activities

11. 11
The Key to Branding
 For branding strategies to be successful,
consumers must be convinced that there
are meaningful differences among brands
in the product or service category.
 Consumer must not think that all brands
in the category are the same.
 PERCEPTION = VALUE

12. 12
Strategic Brand Management
 Strategic brand management involves the design and
implementation of marketing programs and activities to
build, measure, and manage brand equity.
 The strategic brand management process is defined as
involving four main steps:
1) Identifying and establishing brand positioning and values
2) Planning and implementing brand marketing programs
3) Measuring and interpreting brand performance
4) Growing and sustaining brand equity

13. 13
Strategic Brand Management Process
Mental maps
Competitive frame of reference
Points-of-parity and points-of-difference
Core brand values
Brand mantra
Mixing and matching of brand elements
Integrating brand marketing activities
Leveraging of secondary associations
Brand Value Chain
Brand audits
Brand tracking
Brand equity management system
Brand-product matrix
Brand portfolios and hierarchies
Brand expansion strategies
Brand reinforcement and revitalization
KEY CONCEPTS
STEPS
Grow and Sustain
Brand Equity
Identify and Establish
Brand Positioning and Values
Plan and Implement
Brand Marketing Programs
Measure and Interpret
Brand Performance

14. 14
Motivation for
Customer-Based Brand Equity Model
 Marketers know strong brands are
important but aren’t always sure how to
build one.
 CBBE model was designed to be …
 comprehensive
 cohesive
 well-grounded
 up-to-date
 actionable

15. 15
Rationale of
Customer-Based Brand Equity Model
 Basic premise: Power of a brand resides in the
minds of customers
 Challenge is to ensure customers have the right
types of experiences with products & services
and their marketing programs to create the
right brand knowledge structures:
 Thoughts
 Feelings
 Images
 Perceptions
 Attitudes

16. 16
Building
Customer-Based Brand Equity
 Building a strong brand involves a series of
steps as part of a “branding ladder”
 A strong brand is also characterized by a
logically constructed set of brand “building
blocks.”
 Identifies areas of strength and weakness
 Provides guidance to marketing activities

17. 17
CUSTOMER-BASED BRAND EQUITY PYRAMID
RESONANCE
SALIENCE
JUDGMENTS FEELINGS
PERFORMANCE IMAGERY
4. RELATIONSHIPS =
What about you & me?
3. RESPONSE =
What about you?
2. MEANING =
What are you?
1. IDENTITY =
Who are you?

18. 18
Salience Dimensions
 Depth of brand awareness
 Ease of recognition & recall
 Strength & clarity of category membership
 Breadth of brand awareness
 Purchase consideration
 Consumption consideration

19. 19
Performance Dimensions
 Primary characteristics & supplementary
features
 Product reliability, durability, and
serviceability
 Service effectiveness, efficiency, and
empathy
 Style and design
 Price

20. 20
Imagery Dimensions
 User profiles
 Demographic & psychographic characteristics
 Actual or aspirational
 Group perceptions -- popularity
 Purchase & usage situations
 Type of channel, specific stores, ease of purchase
 Time (day, week, month, year, etc.), location, and context of
usage
 Personality & values
 Sincerity, excitement, competence, sophistication, &
ruggedness
 History, heritage, & experiences
 Nostalgia
 Memories

21. 21
Judgment Dimensions
 Brand quality
 Value
 Satisfaction
 Brand credibility
 Expertise
 Trustworthiness
 Likability
 Brand consideration
 Relevance
 Brand superiority
 Differentiation

22. 22
Feelings Dimensions
 Warmth
 Fun
 Excitement
 Security
 Social approval
 Self-respect

23. 23
Resonance Dimensions
 Behavioral loyalty
 Frequency and amount of repeat purchases
 Attitudinal attachment
 Love brand (favorite possessions; “a little pleasure”)
 Proud of brand
 Sense of community
 Kinship
 Affiliation
 Active engagement
 Seek information
 Join club
 Visit web site, chat rooms

24. 24
Customer-Based Brand Equity Model
Consumer-
Brand
Resonance
Brand Salience
Consumer
Judgments
Consumer
Feelings
Brand
Performance
Brand
Imagery
INTENSE, ACTIVE
LOYALTY
RATIONAL &
EMOTIONAL
REACTIONS
POINTS-OF-
PARITY &
POINTS-OF-
DIFFERENCE
DEEP, BROAD
BRAND
AWARENESS

25. 25
Brand Positioning
 Define competitive frame of
reference
 Target market
 Nature of competition
 Define desired brand knowledge
structures
 Points-of-parity
 necessary
 competitive
 Points-of-difference
 strong, favorable, and unique brand associations

26. 26
Issues in Implementing
Brand Positioning
 Establishing Category Membership
 Identifying & Choosing POP’s & POD’s
 Communicating & Establishing POP’s &
POD’s
 Sustaining & Evolving POD’s & POP’s

27. 27
Establishing Category
Membership
 Product descriptor
 Exemplar comparisons

28. 28
Identifying & Choosing
POP’s & POD’s
 Desirability criteria (consumer
perspective)
 Personally relevant
 Distinctive & superior
 Believable & credible
 Deliverability criteria (firm
perspective)
 Feasible
 Profitable
 Pre-emptive, defensible & difficult to attack

29. 29
Major Challenges in Positioning
 Find compelling & impactful points-
of-difference (MacMillan & McGrath,
HBR, ‘97)
 How do people become aware of their need for your
product and service?
 How do consumers find your offering?
 How do consumers make their final selection?
 How do consumers order and purchase your product
or service?
 What happens when your product or service is
delivered?
 How is your product installed?
 How is your product or service paid for?

30. 30
Major Challenges in Positioning
 Find compelling & impactful points-
of-difference (cont.)
 How is your product stored?
 How is your product moved around?
 What is the consumer really using your product for?
 What do consumers need help with when they use
your product?
 What about returns or exchanges?
 How is your product repaired or serviced?
 What happens when your product is disposed of or
no longer used?

31. 31
Communicating & Establishing
POP’s & POD’s
 Create POP’s and POD’s in the face
of attribute & benefit trade-offs
 Price & quality
 Convenience & quality
 Taste & low calories
 Efficacy & mildness
 Power & safety
 Ubiquity & prestige
 Comprehensiveness (variety) & simplicity
 Strength & refinement

32. 32
Strategies to Reconcile
Attribute & Benefit Trade-Offs
 Establish separate marketing programs
 Leverage secondary association (e.g., co-
brand)
 Re-define the relationship from negative
to positive

33. 33
Sustaining & Evolving
POP’s & POD’s
 Core Brand Values &
Core Brand Proposition

34. 34
Core Brand Values
 Set of abstract concepts or phrases that
characterize the 5-10 most important
dimensions of the mental map of a brand.
 Relate to points-of-parity and points-of-
difference
 Mental Map  Core Brand Values  Brand
Mantra

35. 35
Brand Mantras
 A brand mantra is an articulation of the “heart
and soul” of the brand.
 Brand mantras are short three to five word phrases
that capture the irrefutable essence or spirit of the
brand positioning and brand values.
 Nike
 Authentic Athletic Performance
 Disney
 Fun Family Entertainment

36. 36

37. 37

38. Outline
 The mandate for effectiveness
 What makes an ad effective?
 The world of advertising
 The five players of advertising
 The evolution of advertising
Introduction to
Advertising

39. 39
The Mandate for
Effectiveness
 Today advertising
is in a bind
 Advertisers
expect specific
results that lead to
sales
 Advertising must
be effective

40. 40
 Effective ads
work on two
levels: with
consumers and
with advertisers
 Characteristics of
effective ads:
 Strategy
 -
What Makes an Ad
Effective?

41. 41
Defining advertising
• A paid form of
communication
• A sponsor is
identified
• Tries to
persuade or
influence the
consumer to do
The World of Advertising

42. 42
Types of Advertising
 Brand advertising
 Retail/local
advertising
 Political
advertising
 Directory
advertising
 Direct-response
 Business-to-
business
advertising
 Institutional
advertising
 Public service
advertising (PSA)
 Interactive
advertising

43. 43
 Marketing role
 Communication
role
 Economic role
 Societal role
The Roles of Advertising

44. 44
Functions of Advertising


45. 45
 Advertiser
 Advertising
agency
 The advertising
department
 The in-house
agency
 Media
 Vendors
The Five Players of Advertising

46. 46
 Age of print
 Industrial
revolution and
emergence of
consumer society
 Modern
advertising:
Agencies, science
and creativity
The Evolution of Advertising

47. 47
 Interactive
advertising
 Globalization
 Niche marketing
 Integrated
marketing
communications
(IMC)
Current Advertising Issues

48. 48
 Brand
personalities
 Branding
 Trust
 Brand image
 Brand
relationships
 Brand equity
How Brands Work

49. 49
Complex,
Varied
Marketing
Activity
Comprehensive,
Robust
Marketing
Measures
Detailed,
Rich
Marketing
Models
MARKETING PLANNING PROCESS

50. 50
Role of Integrated Marketing
Communications
 Marketing communications …
 are the “voice” of the brand and are a means
by which it can establish a dialogue and build
relationships with consumers.
 allow marketers to inform, persuade, incent,
and remind consumers directly or indirectly
 can contribute to brand equity by
establishing the brand in memory and linking
strong, favorable, and unique associations to
it.

51. 51
Role of Integrated Marketing
Communications (Cont.)
 Consumers can be told or shown how and why a
product is used, by what kind of person, and where
and when;
 Consumers can learn about who makes the product
and what the company and brand stand for
 Consumers be given an incentive or reward for trial
or usage
 Brands can be linked to other …
 People
 Places
 Events
 Brands
 Experiences
 Feelings
 Things

52. 52
Simple Test for
Marketing Communications
1. 3. 2.
Current Desired
Brand Brand
Knowledge Knowledge

53. 53
Integrated Marketing Communications
and Customer-Based Brand Equity
 One implications of the CBBE framework
is that the manner in which brand
associations are formed does not matter
-- only the resulting strength, favorability,
and uniqueness

54. 54
Designing Integrated Marketing
Communications Programs
 From the perspective of customer-based brand
equity, marketers should evaluate all possible
communication options available to create
knowledge structures according to effectiveness
criteria as well as cost considerations.
 Different communication options have different
strengths and can accomplish different
objectives.

55. 55
Alternative Communication Options
(Consumer)
 Media Advertising (TV, radio, newspapers, magazines)
 Direct Response Advertising
 Interactive (on-line) Advertising & Web Sites
 Outdoor Advertising (billboards, posters, cinema)
 Point-of-Purchase Advertising
 Trade Promotions
 Consumer Promotions
 Sponsorship of Event Marketing
 Publicity or Public Relations

56. 56
Alternative Communication Options
(Business-to-Business)
 Media Advertising (TV, radio, newspaper, magazines)
 Trade Journal Advertising
 Interactive (on-line) Advertising & Web Sites
 Directories
 Direct Mail
 Brochures & Sales Literature
 Audio-Visual Presentation Tapes
 Giveaways
 Sponsorship or Event Marketing
 Exhibitions, Trade Shows, Conventions
 Publicity or Public Relations

57. 57
Print Ad Evaluation Criteria
 Is the message clear at a glance?
 Is the benefit in the headline?
 Does the illustration support the
headline?
 Does the first line of the copy support or
explain the headline and illustration?
 Is the ad easy to read and follow?
 Is the product easily identified?
 Is the brand or sponsor clearly identified?

58. 58
Ad Campaign Considerations
 Campaigns make brands -- not single ads
 Be creative and develop creative themes
 Avoid slavishly sticking to executional formulas
 Brand communications should sing like a choir
 Multiple voices
 Multiple notes
 Find fresh consumer insights & compelling
brand truths
 Productively conduct ad research

59. 59
IMC Case Study
CMPB Success Factors
 Smart strategy
 Relative deprivation
 Imaginative creative
 Funny but relevant
 Clever hook
 “Got milk?” slogan
 Timely secondary media
 In store
 Right partners

60. 60
Common Mistakes in
Developing Advertising
 Failure to distinguish ad positioning (what
you say) from ad creative (how you say
it)
 Mistaken assumptions about consumer
knowledge
 Improperly positioned
 Failure to break through the clutter
 Distracting, overpowering creative in ads

61. 61
Common Mistakes in
Developing Advertising
(cont.)
 Under-branded ads
 Failure to use supporting media
 Changing campaigns too frequently
 Substituting ad frequency for ad quality

62. 62
Communication
Option A
Communication Option C
Communication
Option B
Audience
Audience Communication Option Overlap
Note: Circles represent the market segments reached by various communication options.
Shaded portions represent areas of overlap in communication options.

63. 63
Evaluating IMC Programs
 Coverage - what proportion of the target
audience is reached by each
communication option employed, as well
as how much overlap exists among
options
 Cost - what is the per capita expense

64. 64
Evaluating IMC Programs
(cont.)
 Contribution - the collective effect on
brand equity in terms of
 enhancing depth & breadth of awareness
 improving strength, favorability, &
uniqueness of brand associations
 Commonality - the extent to which
information conveyed by different
communication options share meaning

65. 65
Evaluating IMC Programs
(cont.)
 Complementarity - the extent to which
different associations and linkages are
emphasized across communication
options
 Versatility - the extent to which
information contained in a communication
option works with different types of
consumers
 Different communications history
 Different market segments

66. 66
“Keller Be’s”
 Be analytical: Use frameworks of consumer behavior
and managerial decision-making to develop well-
reasoned communication programs
 Be curious: Fully understand consumers by using all
forms of research and always be thinking of how you
can create added value for consumers
 Be single-minded: Focus message on well-defined
target markets (less can be more)
 Be integrative: reinforce your message through
consistency and cuing across all communications

67. 67
“Keller Be’s”
 Be creative: State your message in a unique
fashion; use alternative promotions and media
to create favorable, strong, and unique brand
associations
 Be observant: Monitor competition,
customers, channel members, and employees
through tracking studies
 Be realistic: Understand the complexities
involved in marketing communications
 Be patient: Take a long-term view of
communication effectiveness to build and
manage brand equity