Chapter 9: Creating Brand Equity

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CHAPTER 9:
CREATING BRAND
EQUITY
Increasing Value Through Strategic Brand
Management
Anna Michelle P. Gatbonton
September 17, 2013

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

1. What is Brand?
BRAND
Name
Term
SignSymbol
Design
To identify the goods or services of a seller and
to differentiate them from competitors

1. Can you recognize these
brands?

1. APPLE: A Branding Success
Story

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

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

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

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

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

BRAND arises from
Differences in RESPONSE
4. There are 3 key ingredients of
customer- based brand equity

Usually true for commodities and
generic version of the products
Competition Must be based on
4. If There is no Response

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

PERCEPTION
PREFERENCES
BEHAVIOR
4. …Or a response on how it is
marketed

4. How high is Apple’s Brand
Equity?

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

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

5. Designing holistic
marketing activities can also
build brand equity
2. Products and services and all
accompanying marketing activities
and supporting marketing programs

5. Use new themes in
designing brand-building
marketing programs
Personalize
Integrate
Internalize

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

4. Brands can also link to
other sources

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

6. Strategies to Brand Naming
1. Individual Names
Generals Mills 
1. Blanket Family Names
Heinz

6. Strategies to Brand Naming
3. Separate Family Names for all
products
Sears
4. Corporate name combined with
individual product names
Sony

… phone
… music player
… tablet
… personal computer
6. Apple and Its iNaming
Strategy

Branding is an important marketing
tool whose main goal is to:
 Identify and differentiate
 Create value to the consumers
…In Summary

CHAPTER 9:
CREATING BRAND
EQUITY
A Show & Tell Assignment
Anna Michelle P. Gatbonton
September 17, 2013

Chapter 9: Creating Brand Equity

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Chapter 9: Creating Brand Equity