strategic brand management chapter 1

CHAPTER ONE -

INTRODUCTION TO STRATEGIC

BRAND MANAGEMENT

Course Title: Strategic Brand Management

Introduction

A name becomes a brand when consumers

associate it with a set of tangible and intangible

benefits that they obtain from the product or

service

It is the seller’s promise to deliver the same

bundle of benefits/services consistently to

buyers (Brand Promise Brand Equity)

Steps in the

Strategic Brand Management Process

1. Identifying and establishing brand positioning

2. Planning and implementing brand marketing

3. Measuring and interpreting brand

performance

4. Growing and sustaining brand value

Definition

“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”

Role of Brands

Consumer Benefits Identify source/maker

Simplifies decision making

Reduces risk

Marketer Benefits Simplify product handling

Protect unique features

Create loyalty

Establish barriers to entry

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

Brand Elements

Brand Names

URLs

Logos

Symbols

Characters

Spokespeople

Slogans

Jingles

Packages

Brand Element Choice Criteria

Memorable

Meaningful

Likeability

Transferable

Adaptable

Protectible

Elements and Measurement

BRAND EQUITY

Introduction

Brands have financial value because they have

created assets in the minds and hearts of customer,

distributors, prescribers and opinion leaders.

Brand Equity

When a commodity becomes a brand, it is said to have

equity.

The premium a brand can command in the market

The difference between the perceived value and the

intrinsic value

Customer-Based Brand Equity

It is the differential effect that brand

knowledge has on consumer response to

the marketing of that brand

A positive CBBE means customers might

be more accepting to the marketing

activities (ie. the marketing mix) for a

brand

Aaker’s Brand Equity Model

Aaker’s Brand Equity Model

Brand Equity Framework

Brand Equity

Brand Awareness

Brand Recall

Brand Recognition

Brand Attributes & Associations

Uniqueness Favorability Relevance

Brand Loyalty

Perceived Quality

Brand Associations: Uniqueness

USP Unique Selling Proposition

Product-related

Image Related

Points of Difference - How brand is unique

Points of Parity - How brand is similar to others

Brand Equity Framework

Brand Knowledge

Knowledge

Thoughts

Experiences

BeliefsImages

Feelings

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CUSTOMER-BASED BRAND EQUITY PYRAMID

RESONANCE

SALIENCE

JUDGMENTS FEELINGS

PERFORMANCE IMAGERY

4. RELATIONSHIPS =

What about you & me?

3. RESPONSE =

What about you?

2. MEANING =

What are you?

1. IDENTITY =

Who are you?

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Customer-Based Brand Equity Model

Consumer-

Brand

Resonance

Brand Salience

Consumer

JudgmentsConsumer

Feelings

Brand

PerformanceBrand

Imagery

INTENSE, ACTIVE

LOYALTY

RATIONAL &

EMOTIONAL

REACTIONS

POINTS-OF-

PARITY &

POINTS-OF-

DIFFERENCE

DEEP, BROAD

BRAND

AWARENESS

Customer-Based Brand Equity

Pyramid

Brand Salience - How brand stands out from the rest (Prominence)

Brand Performance - How product meets customers’ functional needs

Brand Imagery - Strong, Unique Associations

How brand meets psychological or social needs

Brand Judgments - Personal opinions & evaluations of brand

Brand Feelings - Emotional responses to brand

Brand Resonance - Intense loyalty, Active involvement with brand