9

Creating
Brand Equity

Marketing Management, 13th ed

 Chapter Questions

• What is a brand and how does

branding work?
• What is brand equity?
• How is brand equity built, measured,
and managed?
• What are the important decisions in
developing a branding strategy?

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-2

 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 © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-3

 Google - 2002 Brand of the
Year

9-4
 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.

9-5
 The Role of Brands

Identify
Identify the
the maker
maker

Simplify
Simplify product
product handling
handling

Organize
Organize accounting
accounting

Offer
Offer legal
legal protection
protection

9-6
 The Role of Brands

Signify
Signify quality
quality

Create
Create barriers
barriers to
to entry
entry

Serve
Serve as
as aa competitive
competitive
advantage
advantage

Secure
Secure price
price premium
premium

9-7
 Branding

Endowing products and

Services with the power
of a brand.

9-8
 Brand Equity

The differential effect that

Brand knowledge has on
Consumer response to
the marketing of that
brand.
9-9
 Advantages of Strong Brands

• Improved • Larger margins

perceptions of • More inelastic
product consumer response
performance • Greater trade
• Greater loyalty cooperation
• Less vulnerability • Increased marketing
to competitive communications
marketing actions effectiveness
• Less vulnerability • Possible licensing
to crises opportunities
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-10
 Brand Promise

The marketer’s vision of

what the brand must be
and do for Consumers.

9-11
 Brand Equity Models

• Brand Asset Valuator

• Aaker Model
• BRANDZ
• Brand Resonance

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-12

 BAV Key Components
• Differentiation—degree to which a
brand as different from others
• Relevance—breadth of a brand’s
appeal
• Esteem—how well the brand is
regarded and respected
• Knowledge—how familiar and intimate
consumers are with the brand

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-13

 Brand Knowledge

Thoughts Feelings

Knowledge

Beliefs Images

Experiences

9-14
 Secondary Sources of
Brand Knowledge

9-15
 Aaker Model
• Brand identity—unique set of brand associations
that represent what the brand stands for and
promises to customers (e.g., Ajax—industrial service
company)
• Core identity elements—product scope, attributes,
quality/value, uses, users, country of origin,
organizational attributes, brand personality, and
symbols (e.g., Ajax has a spirit of excellence)
• Brand essence—communicate the brand identity in
a compact and inspiring way (e.g., Ajax has a
commitment to excellence)

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-16

 Aaker Model – Brand Assets

Brand loyalty

Brand associations Brand awareness

Perceived quality

9-17
 The BRANDZ Model

Bonding
nothing better

Advantage—better
than others
Performance—can it deliver?

Relevance—does it offer me
something
Presence—Do I know about it?
9-18
 Brand Resonance Pyramid

9-19
 Drivers of Brand Equity

Brand Elements

Marketing Activities

Meaning Transference

9-20
 Brand Elements

Brand
names

Slogans
Elements
Logos

Characters
Symbols

9-21
Brand Elements

9-22
 Brand Element Choice Criteria

• Memorable--recall and recognized

• Meaningful--credible
• Transferable--introduce new product
• Adaptable--updatable
• Protectible-- legality

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-23

 Slogans
• Hamara Bajaj • We are
• Just do it listening.
• Desh ki • Thanda matlab
Dhadkan coca cola

9-24
 The 10 Most Valuable Brands

Brand 2006 Brand Value (Billions)

Coca-Cola $67.00
Microsoft $56.93
IBM $56.20
GE $48.91
Intel $38.32
Nokia $30.13
Toyota $27.94
Disney $27.85
McDonald’s $27.50
Mercedes-Benz $22.13
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-25
 Managing Brand Equity

Brand
Brand Reinforcement—
Reinforcement—
meaning
meaning of
of the
the brand
brand

Brand
Brand Revitalization—retain
Revitalization—retain same
same
or
or create
create new
new positioning
positioning

Brand
Brand Crises
Crises

9-26
 Devising a Branding Strategy

Develop
Develop new
new brand
brand elements
elements

Apply
Apply existing
existing brand
brand elements
elements

Use
Use aa combination
combination of
of old
old and
and new
new

9-27
 Brand Naming
Individual
Individual names
names (e.g.,
(e.g., General
General
Mills—Bisquick,
Mills—Bisquick, Gold
Gold Meal
Meal Flour)
Flour)

Blanket
Blanket family
family names
names (e.g.,
(e.g.,
Heinz,
Heinz, General
General Electric)
Electric)

Separate
Separate family
family names
names (e.g.,
(e.g.,
Sears
Sears uses
uses Kenmore,
Kenmore, Cratsman)
Cratsman)

Corporate
Corporate name
name combined
combined with
with
individual
individual product
product names
names (e.g.,
(e.g.,
Kellogg’s
Kellogg’s Rice
Rice Krispies,
Krispies, Raisin
Raisin Brain)
Brain)

9-28
Major
Major Brand
Brand Decisions
Decisions

Brand
Brand Name
Name Selection
Selection
Selection
Selection
Protection
Protection

Brand
Brand Sponsor
Sponsor
Manufacturer’s
Manufacturer’s Brand
Brand
Private
Private Brand
Brand
Licensed
Licensed Brand
Brand
Co-branding
Co-branding

Brand
Brand Strategy
Strategy
Line
Line Extensions
Extensions
Brand
Brand Extensions
Extensions
Multibrands
Multibrands
New
New Brands
Brands
 Brand
Brand Strategy
Strategy

Product Category
Existing New
Brand Name

Existing Line Brand

Extension Extension

New New
Multibrands
Brands
Brand
Brand Strategy
Strategy

• Line Extension
• Existing brand names extended to new forms, sizes,
and flavors of an existing product category.
• Brand Extension
• Existing brand names extended to new product
categories.
• Multibrands
• New brand names introduced in the same product
category.
• New Brands
• New brand names in new product categories.
 Study Question 1
The American Marketing Association defines a
________ 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 of sellers and to
differentiate them from those of competitors.”

A. holistic product concept

B. product concept
C. service concept
D. Brand
E. brand image
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-32
 Study Question 2
Consumers learn about brands through
________ and product marketing
programs.

A.the mass media

B.past experiences with the product
C.the sales force
D.shopping bots
E.independent information sources

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-33

 Study Question 3
The premise of ________ models is that the
power of a brand lies in what customers have
seen, read, learned, thought, and felt about the
brand over time.

A.product-based brand equity

B.service-based brand equity
C.functional-based brand equity
D.mission-driven brand equity
E.customer-based brand equity
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-34
 Study Question 4
________ can be defined as the differential
effect that brand knowledge has on consumer
response to the marketing of that brand.

A.Mission-driven brand equity

B.Customer-based brand equity
C.Product-driven brand equity
D.Service-driven brand equity
E.Function-based brand equity

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-35

 Study Question 5
When a consumer expresses thoughts,
feelings, images, experiences, beliefs, and
so on that become associated with the
brand, the consumer is expressing brand
________.

A.Knowledge
B.Loyalty
C.Behavior
D.Preference
E.equity
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-36