1) The document discusses key concepts related to brand equity including definitions of a brand, the roles and benefits of brands for consumers and marketers, the differences between brands and products, and factors that contribute to strong brand equity such as brand loyalty and awareness. 2) Customer-based brand equity is defined as the differential effect that brand knowledge has on consumer response to marketing for that brand. Strong brands can provide benefits like greater customer loyalty and larger margins. 3) Elements of brand equity include the brand name, logo, symbols, and marketing activities associated with the brand. Brand equity must be managed through strategies that leverage these elements and associations to reinforce or revitalize the brand over time.

1. Creating
Brand Equity
Cha pte r 9

2. ATC “Old Boys”
Othma n Ahma d
Za za li Moha me d S ofia n
Zuhre n Md. Na s ir

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7. What is “Brand” ?
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9. Brand
“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.”

10. The Role of Brands
Roles of Bands are
easily defined by
“benefits”:
• Co ns um e r
Be ne fits
• M rke te r Be ne fits
a
• Ide ntify s ource /ma ke r
• S implifie s De cis ion
Ma king
• Re duce s Ris k
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11. The Role of Brands
Roles of Bands are
easily define by
“benefits”:
• Co ns um e r
Be ne fits
• M rke te r Be ne fits
a
• S implify product
ha ndling
• P rote ct unique
fe a ture s
• Cre a te loya lty
• Es ta blis h ba rrie rs to
e ntry
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12. Scope of Branding
 “Bra nding” is e ndowing
products a nd s e rvice s
with the powe r of a
bra nd – by giving na me s
us ing bra nd e le me nts to
he lp ide ntify it
 The ke y to “bra nding” is
tha t cons ume rs mus t
not think tha t a ll bra nds
in the ca te gory a re the
s a me
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13. Brand Equity
The added value endowed on
products and services because of the
brand.
- Reflected in how consumers think, and act
with respect to the brand, as well as the prices,
market share, and profitability that the brand
commands.
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14. Brand Equity
“The value of a brand. From a consumer
perspective, brand equity is based on
consumer attitudes about positive brand
attributes and favorable consequences of
brand use.”
– American Marketing Association
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15. Brand vs Product
A product is something that is made in a factory;
A brand is something that is bought by a
customer.
A product can be copied by a competitor;
A brand is unique.
A product can be quickly outdated;
A successful brand is timeless.
– Stephen King (WPP Group, London)
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16. World’s Most Valuable Brand 2012
Top 10 global brands in Impact Media Value as published in Forbes magazine.
Source: General Sentiment Inc.
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17. Here’s the catch: “All news is good news” theory of publicity. So the lingering bad
vibes directed at Mark Zuckerberg & Co. in the wake of May’s mishandled IPO are
responsible for its rise to the top.
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18. Malaysian Netizens Online Statistics
Malaysia social media users has on the HIGHEST average
friends
233 online
90% of Malaysian internet users visit social media sites
77% of Malaysian web users shared their thoughts on a brand via social
media in the past 12 months.
136,000 Malaysian users on Foursquare.
Sources: We are social, December 2011
12.5 million Malaysian Facebook users (2012)
Accounts or 47% of Malaysia population
Increased from 10mill (2011), and 5.5mill (2010)
Sources: www.socialbakers.com

19. Customer-based Brand Equity
 This is one of the approach to view brand equity.
 Define as; the differential effect that brand knowledge has on
consumer response to the marketing of that brand
Diffe re nce s in
cons ume r re s pons e
Result of
marketing
program
Consumer reaction
towards marketing
program
Cons ume rs ’ bra nd knowle dge
P e rce ptions , pre fe re nce s , a nd
be ha viors
Stronger brands,
greater revenue
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20. 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

21. Advantages of Strong Brands
• Improve d pe rce ptions of product pe rforma nce
• Gre a te r loya lty
• La rge r Ma rgins
• Le s s vulne ra bility to compe titive ma rke ting a ctions
• Le s s vulne ra ble to ma rke ting cris is
• Incre a s e d ma rke ting communica tions e ffe ctive ne s s
• Improve d e mploye e re cruiting a nd re te ntion
• Gre a te r fina ncia l ma rke t re turns
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22. Brand Promise
 Is the ma rke te r’s vis ion
of wha t the bra nd mus t
be a nd do for
cons ume rs
 Cons ume rs will de cide
ba s e d on wha t the y
think a nd fe e l a bout the
bra nd
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23. Brand Promise
1
Wha ttis bra nd
Wha is bra nd
promis ee??
promis
2
Expla na tion
Expla na tion
3
Exa mple ss
Exa mple
Brand Promise identifies the single Most
Important measurable in building value
What is the promise you’re making to your
customers that both really matters to them
and makes you different from your
competitors?
P e a ce of mind
Pos laju
Broadband leader
in Malaysia

24. Points of Difference
• Exa mple s :
Brands
Association
Qua lity a nd de pe nda bility
S a fe ty
Qua lity a nd pre s tige
???
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25. Building Brand Equity
Brands
Elements
Brand
Equity
Marketing
Activities
Other
Association
Brand Names, Logos,
Symbols,
Spokesperson, slogans,
jingles, signage
Product and service and
all accompanying
marketing activities and
supporting programs.
indirectly transferring
the brand by linking it
to some other entity,
such as a person, place,
or thing
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26. Brands Elements
Brands Elements
Criteria:
• Bra nd Build e rs
• De fe ns ive
• Me mora ble
• Me a ningful
• Like a ble
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27. Brands Elements
Brands Elements
Criteria:
• Bra nd Build e rs
• De fe ns ive
• Tra ns fe ra ble
• Ada pta ble
• P rote cta ble
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28. Brand Communities
Specialized community of consumers and
employees whose identification and activities
focus around the brand.
Three Characteristics identify brand
communities:
i) Consciousness (kesedaran),
ii) Shared ritual, stories, and traditions that
help to convey the meaning of the community
iii)Shared moral responsibility or duty to both
the community as a whole and individual
community members.

29. Leveraging Secondary Association
Secondary Source of Brand Knowledge

30. Managing Brand Equity
A COMPREHENSIVE FRAMEWORK FOR
MANAGING BRAND EQUITY
The intangible assets of brands create the basis of brand equity.
Brand equity consists of five different asset dimensions. These
assets include:
1) brand loyalty,
2) brand awareness,
3) perceived quality,
4) brand associations, and
5) other proprietary assets such as patents, trademarks and
channel relationships. If managed well, these assets add value to
the product or service and create additional customer satisfaction,
which, in turn, provide a number of benefits to the firm. (Aaker
1991, 19–21)

31. Brand Reinforcement
-In the market where products are related,branding
can have a large effect on the price that customer will
able to pay.
-Therefore brands add value to a basic product or
service to rule of higher price,or contribute higher
market share than an unbranded equivalent.
-Brand reinforcement is an activity associated with
getting consumer who have tried a particular brand to
become repeat purchasers and with attracting new
users.Brand reinforcement is a primary objective of the
development stage of the products’s life cycle

32. Brand Revitalization
• Change in the consumer taste and preference.
• Emergence of new competitors or new technology,
new development in the marketing environment
could potential affect the fortunes of a brand.

33. Branding Strategy
A firm’s bra nding s tra te gy –
ofte n ca lle d bra nd a rchite cture
re fle cts the numbe r a nd
na ture of common a nd
dis tinctive e le me nts a pplie d.

34. Branding Strategy
3 choices
• De ve lop ne w bra nd
• Apply s ome e xis ting bra nd
• Us e combina tion – ne w a nd e xis ting

35. Branding Strategy

36. Branding Strategy

37. Branding Strategy

38. BRANDING DECISION
• Corpora tion ha ve to ma ke
de cis ion : Individua l Bra nd or S e pa ra te Bra nd
 Corpora te umbre lla or comp bra nd
 Combine d of compa ny with ind pdct

39. Branding Decision

40. Brand Portfolio
• Multiple bra nd a re ofte n ne ce s s a ry
to purs ue multiple ma rke t s e gme nt
• S ome a dva nta ge s : Incre a s ing s he lf pre s e nce a nd re ta ile r
de pe nde nce
 Attra cting cus tome r for va rie ty
 Incre a s ing inte rna l compe tition within the firm
 Economie s of s ca le in a dve rtis ing, s a le s ,
me rcha ndis ing a nd phys ica l dis tribution

41. Type and Role of Brand Portfolio

42. Brand Extension
Advantage
Disadvantage
Improve Odds of Ne w P roduct
S ucce s s
On the downs ide ma y ca us e d bra nd
na me not s trongly ide ntifie d with
a nyone product
P os itive Fe e dba ck Effe cts
Bra nd dilution – le s s cus tome r’s
a tte ntion

43. Success Characteristic
•
•
•
•
Marketers should judge and ask:Does the parent brand have strong equity?
Is there a strong basis of fit?
Will the extension have the optimal-of-parity and
point-of-different?
• How can marketing programs enhance extension
equity?
• What implications will the extension have for
parent brand equity and profitability?
• How should feedback effects best be managed?

44. S umma ry – Bra nd Vide o
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45. Thank You.
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