MARKETING MANAGEMENT

Creating
Brand Equity
 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?

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 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

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 The Role of Brands

• Identify the maker

• Simplify product handling
• Organize accounting
• Offer legal protection

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 The Role of Brands

• Signify quality
• Create barriers to entry
• Serve as competitive advantage
• Secure price premium

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Marketing Advantages of Strong Brands

• Improved • More elastic

perceptions response to price
• Greater loyalty decreases
• Less vulnerable to • Greater trade
competition cooperation
• Less vulnerable to • Increased marketing
crises communications
• Larger margins • Possible licensing
• More inelastic opportunities
response to price • Brand extension
increases opportunities
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 Branding

Endowing products and services

with the power of a brand

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 Brand Equity

The added value endowed to products,

reflected in how consumers
think, feel, and act
with respect to the brand,
as well as the
prices, market share, and profitability
that the brand commands for the firm

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 Brand Equity

• Brand equity arises from differences in

consumer response to the brand
• Differences in response are a result of
brand knowledge
• Differential response is reflected in
perception, preferences, and behavior
related to the marketing of the brand

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 Brand Associations

• Brand associations should be:

• Strong
• Unique
• Favorable

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 Brand Promise

The marketer’s vision of what

the brand must be and do for
consumers

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 Drivers of Brand Equity

• Brand elements
• Marketing activities
• Meaning transference

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 Brand Elements

• Brand names • URLs

• Slogans • Logos
• Characters • Symbols

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 Brand Element Choice Criteria

Building the Brand Defending the Brand

• Memorable • Transferable
• Meaningful • Adaptable
• Likeability • Protectible

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 Slogans

• Like a good neighbor, • We try harder

State Farm is there • We’ll pick you up
• Just do it • Nextel–Done
• Nothing runs like a • Zoom Zoom
Deere • I’m lovin’ it
• Help is just around • Innovation at work
the corner
• This Bud’s for you
• Save 15% or more in
15 minutes or less • Always low prices

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 According to BrandDirectory

• Brand Value is also referred to has Brand Equity.

• A brand can be an intangible asset, used by
consultants like Brand Finance to rationalise the
variation between a company's "book value" and
market value.
• Groundbreaking research conducted by Brand
Finance demonstrated that 62% of the world's
business is now intangible. This represents $19.5
trillion of $31.6 trillion global market value.

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 Measuring Brand Equity

• Brand audits
• Brand tracking
• Brand valuation
• http://brandirectory.com/league_tables/tab
le/global-500-2012

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 Managing Brand Equity

• Brand reinforcement
• Brand revitalization
• Brand crises

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 Devising a Branding Strategy

• Develop new brand elements

• Apply existing brand elements
• Use a combination of old and new

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 Branding New Products

• Brand extension • Category extension

• Sub-brand • Brand line
• Parent brand • Brand mix
• Family brand • Branded variants
• Line extension • Licensed product

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 Brand Naming

• Individual names
• Blanket family names
• Separate family names
• Corporate name-individual name combo

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Advantages
• Improved odds of success
• Development of positive
consumer expectations
• Access to retailer support
• Leverage of current brand
awareness
• Economies of scale
advertising, packaging,
distribution
Brand Extensions
Disadvantages
• Dilution of brand name
• Risk to brand integrity
• Risk of harm to parent
brand
• Cannibalization of parent
brand
• Lost opportunity to create
new brand
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Reasons for Multiple Brands in Portfolio

• To increase shelf presence and retailer

dependence
• To attract consumers seeking variety
• To increase internal competition
• To yield economies of scale

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 Brand Roles in a Brand Portfolio

• Flankers • Cash Cows

• Low-end • High-end
Entry-level Prestige

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