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Framework for Marketing Management
8
Creating Brand Equity
1
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-2
Chapter 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?
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-3
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
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-4
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.
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-5
The Role of Brands
 Identify the maker
 Simplify product handling
 Organize accounting
 Offer legal protection
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-6
The Role of Brands
 Signify quality
 Create barriers to entry
 Serve as a competitive advantage
 Secure price premium
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-7
What is Branding?
Branding is endowing products
and services with the
power of the brand.
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-8
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.
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
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-9
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-10
What is a Brand Promise?
A brand promise is the marketer’s vision of
what the brand must be and do for consumers.
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-11
Brand Equity Models
Brand Asset Valuator (BAV)
Brandz
Brand Resonance
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-12
Figure 8.1 BAV Model
Figure 8.2
Brand Dynamics Pyramid
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-13
Figure 8.3 Brand Resonance
Pyramid
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-14
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-15
Brand Elements
 Brand names
 Slogans
 Characters
 Symbols
 Logos
 URLs
Brand Element Choice Criteria
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-16
Memorable
Meaningful
Likeable
Transferable
Adaptable
Protectable
Figure 8.4 Secondary Sources of
Brand Knowledge
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-17
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-18
Internal Branding
 Choose the right moment
 Link internal and external marketing
 Bring the brand alive for employees
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-19
Measuring Brand Equity
 Brand audits
 Brand tracking
 Brand valuation
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-20
Managing Brand Equity
 Brand reinforcement
 Brand revitalization
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-21
Devising a Branding Strategy
 Develop new brand elements
 Apply existing brand elements
 Use a combination of old and new
Branding Terms
 Brand line
 Brand mix
 Brand extension
 Sub-brand
 Parent brand
 Family brand
 Line extension
 Category extension
 Branded variants
 Licensed product
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-22
Reasons for Brand Portfolios
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-23
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-24
Brand Roles in a Brand Portfolio
 Flankers
 Cash cows
 Low-end, entry-level
 High-end prestige
Brand Extensions
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-25
For Review
 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?
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-26

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Kotler framework 5e_08_sppt

  • 1. Framework for Marketing Management 8 Creating Brand Equity 1
  • 2. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-2 Chapter 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. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-3 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. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-4 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. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-5 The Role of Brands  Identify the maker  Simplify product handling  Organize accounting  Offer legal protection
  • 6. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-6 The Role of Brands  Signify quality  Create barriers to entry  Serve as a competitive advantage  Secure price premium
  • 7. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-7 What is Branding? Branding is endowing products and services with the power of the brand.
  • 8. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-8 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.
  • 9. 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 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-9
  • 10. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-10 What is a Brand Promise? A brand promise is the marketer’s vision of what the brand must be and do for consumers.
  • 11. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-11 Brand Equity Models Brand Asset Valuator (BAV) Brandz Brand Resonance
  • 12. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-12 Figure 8.1 BAV Model
  • 13. Figure 8.2 Brand Dynamics Pyramid Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-13
  • 14. Figure 8.3 Brand Resonance Pyramid Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-14
  • 15. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-15 Brand Elements  Brand names  Slogans  Characters  Symbols  Logos  URLs
  • 16. Brand Element Choice Criteria Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-16 Memorable Meaningful Likeable Transferable Adaptable Protectable
  • 17. Figure 8.4 Secondary Sources of Brand Knowledge Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-17
  • 18. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-18 Internal Branding  Choose the right moment  Link internal and external marketing  Bring the brand alive for employees
  • 19. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-19 Measuring Brand Equity  Brand audits  Brand tracking  Brand valuation
  • 20. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-20 Managing Brand Equity  Brand reinforcement  Brand revitalization
  • 21. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-21 Devising a Branding Strategy  Develop new brand elements  Apply existing brand elements  Use a combination of old and new
  • 22. Branding Terms  Brand line  Brand mix  Brand extension  Sub-brand  Parent brand  Family brand  Line extension  Category extension  Branded variants  Licensed product Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-22
  • 23. Reasons for Brand Portfolios Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-23
  • 24. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-24 Brand Roles in a Brand Portfolio  Flankers  Cash cows  Low-end, entry-level  High-end prestige
  • 25. Brand Extensions Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-25
  • 26. For Review  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? Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-26