This document discusses creating brand equity. It defines a brand and brand equity, and explains that brand equity is built through branding activities that endow products with meaning and differentiate them from competitors. Brand equity is measured using various models that assess brand knowledge, perceptions, preferences and behavior. Managing brand equity involves reinforcing brand associations through integrated marketing activities and ensuring internal branding. Choosing brand elements, extensions, and architecture are important strategic decisions for building brand equity over time.

1. Creating Brand Equity
NAJIH SURAYA (15/391824/PEK/21270)
NINA RATNA (15/391827/PEK/21273)

2. Questions
1. What is a brand, and how does the
branding work?
2. What is brand equity?
3. How is brand equity build?
4. How is brand equity measured?
5. How is brand equity msnsged?
6. What is brand architechture?
7. What is customer equity?

3. A brand as “a name, term, sign, symbol, or design or a combination
of them, intended to identify the goods or services of one seller or
group sellers and to differentiate them from those of
competitors”
How does branding work?

4. Brands identify the maker of a product and
allow consumers to assign responsibility for its
performance to that maker or distributor.
The Role of Brands
A PromisePersonal
Meaning /
Identity
Legal protection
Simplify
product
Brand Signals CUSTOMER
FIRMS

5. The Scope of Brands
Branding is the process of endowing products and
services with the power of a brand. It’s all about
creating differences between products.

6. Endowed to product and services with consumers
Defining Branding Equity
Think, feel, and act with respect to the brand
Negative customer-
based brand equity
Positive customer-based
brand equity
Customer-
based
brand
equity
differences in
consumer
response
brand
knowledge
perceptions,
preferences, &
behavior
Brand
Equity
Models

7. Company appears to have come up with
another brand winner

8. Some Key Benefits of brand equity

9. Building Brand Equity
Brand Asset Valuator Model
Source: Courtesy of BrandAsset
Consulting, a division of Young &
Rubicam

10. The Universe of Brand Performance

11. Brand Dynamics employs a set of simple scores that summarize a brand’s equity
and are relatable directly to real world financial and business outcomes.
Brandz Marketing
power
potentia
l
premium
meaningful
salient
different
Brand
Association
Brand
Predisposition
M
A
R
K
ET
Brand Dynamics Models

12. Brand Resonance Model
The brand resonance model also views brand building as an ascending series
of steps, from bottom to top:

13. Brand Resonance Pyramid
http://www.mastercardbrandcenter.com

14. Brand Saline
Brand Performance
Brand Imagery
Brand Judgement
Brand Resonance
Brand Feeling

15. Building Brand Equity

16. Choosing Brand Elements
Marketers should choose brand
elements to build as much brand
equity as possible

17. Designing Holistic Marketing Activities
personal observation and use
word of mouth
interactions with company
A brand contact is any information-bearing
experience, whether positive or negative, a customer
or prospect has with the brand, its product category,
or its market.

18. Integrated marketing
Integrated marketing is about mixing and
matching marketing activities to maximize their
individual and collective effects.
Advertising Sales Promotion
Personal Selling Public Relation (PR)
Word of MouthEvent

20. Leveraging Secondary Associations
Secondary Source
of Brand Knowledge

21. Internal Branding
» Internal branding consists of activities and processes that help inform and
inspire employees about brands. Holistic marketers must go even further and
train and encourage distributors and dealers to serve their customers well.
Poorly trained dealers or other intermediaries can ruin the best efforts to build
a strong brand image.
Brand bonding occurs when customers experience the company as delivering
on its brand promise. All the customers’ contacts with company employees and
communications must be positive.
The brand promise will not be delivered
unless everyone in the company lives the
brand.

22. Principles for internal branding

23. The Brand Value Chain

24. Measuring Brand Equity
» Due to brand equity to perform a useful strategic function and guide
marketing decisions, marketers need to fully understand the sources of
brand equity and how they affect outcomes of interest and how these
sources and outcomes change, if at all, over time. Brand audits are
important for the former; brand tracking for the latter.
Brand Audit Brand Tracking Studies

25. The world's 10 Most Valuable Brands in
2015

26. What is a Brand Worth?

27. Managing Brand Equity
Marketers can reinforce brand equity
by consistently conveying the brand’s
meaning in terms of
»what products it represents, what
core benefits it supplies, and what
needs it satisfies;
»how the brand makes products
superior and which strong, favorable,
and unique brand associations should
exist in consumers’ minds.
Any new development in the
marketing environment can affect a
brand’s fortunes.
Nevertheless, a number of brands have
managed to make impressive
comebacks in recent years.
Brand Revitalization
Brand Reinforcement

28. Devising a Branding Strategy
When a firm uses an established
brand to introduce a new
product, the product is called a
brand extension.
develop new brand elements
for the new product
apply some of its existing
brand elements
use a combination of new
and existing brand elements
Deciding how to brand new products is
especially critical. A firm has three main
choices:
Brand
Architechture

29. Devising a Branding Strategy

30. Branding Decisions
Individual /
separate
family brand
names
Corporate
umbrella /
company brand
name
Sub-brand
name
General
Branding
Strategies

31. Brand Portfolios
Multiple Brands Reasons
1. Increasing shelf presence and retailer
dependence in the store
2. Attracting consumers seeking variety
who may otherwise have switched to
another brand
3. Increasing internal competition within
the firm
4. Yielding economies of scale in
advertising, sales, merchandising, and
physical distribution
Brand portfolio is the set
of all brands and brand
lines a particular firm
offers for sale in a
particular category or
market segment.

32. Brand Portfolio Example
Starwood Hotels

33. Brand Roles
Flankers /
Fighter
Brand
Low End
Entry
Level
Cash Cow
High End
Prestige

34. Flankers /
Fighter
Brand
Low End
Entry
Level
High End
Prestige
Cash Cow

35. Brand Extensions

36. Success Characteristic
Research Insights on Brand Extensions
Source: kevin Lane keller, Strategic Brand Management,
4th
ed. (Upper Saddle River, NJ: Pearson, 2013).

37. Customer Equity
The brand equity and customer equity perspectives certainly share
many common themes. Both emphasize the importance of
customer loyalty and the notion that we create value by having as
many customers as possible pay as high a price as possible.
The aim of customer relationship management (CRM) is to
produce high customer equity. Although we can calculate it in
different ways, one definition is “the sum of lifetime values of all
customers.”
Acquisition Retention
Customer Lifetime ValueAdd-on Spending

38. Marketing Memo
“Twenty-First-Century Branding”

39. THANK YOU!
FOR YOUR ATTENTION
Email :
najih.suraya@gmail.com
Phone : 085643811541Magister Manajemen
UGM