chapter9 ppt group3

www.hypermarketing2.com

CREATING

BRAND

EQUITY

MARKMA

Rhea G. Jardin

May 4, 2012

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A product or service whose

dimensions differentiate it in

some way from other products or

services designed to satisfy the

same need

What is a Brand?



Differences maybe related to:

A. Product performance of the brand

1. Functional - 𝑓 𝑥

2. Rational -

3. Tangible

B. What the brand represents

1. Symbolic

2. Emotional

3. Intangible



1. Identify the source or maker of the product

that satisfies the consumers’ needs

2. Simplifies product handling or tracing

3. Offers firm legal protection with intellectual

property rights

4. Signals level of quality so that buyers can

easily choose the product again

Role of Brands



- Endowing products and services with the

power of the brand by creating differences

between products

- “who” the product is, what the product does

and why consumers should care

What is Branding?



- the added value on products and services

- reflected on how consumers think,

feel and act on the brand

- reflected in the prices, market share

and profitability for the firm

Brand Equity



A. Positive – customers react more favorably to

a product and the way it is marketed

B. Negative – customers react less favorably to

marketing activity for the brand

Three (3) key ingredients:

1. Consumer response

2. Consumer’s knowledge about the brand

3. Consumer’s perceptions, preferences and

behavior

Customer-based brand equity



1. Quality is the critical factor not the quantity

2. Dictates future directions for the brand based

on how consumers think and feel about the brand

Brand promise - the marketer’s vision of what the

brand must be and do for consumers

Brand Knowledge



1. Differentiation – measures the degree to which

a brand is seen as different from others

2. Energy – measures the brand’s sense of

momentum

3. Relevance – measures the breadth of a brand’s

appeal

4. Esteem – measures how well the brand is

regarded and respected

5. Knowledge – measures how familiar and

intimate consumers are with the brand

Five pillars of brand equity



+ + = energized brand strength

- point to the brand’s future value

+ = brand stature

- “report card” of past performance

“Pillar’s pattern” reveal a brand’s current and

future status

Five pillars of brand equity



BrandDynamics Pyramid

-Developed by Millward Brown of BRANDZ

Marketing as a model of brand strength

Nothing else beats it

Does it offer something

better than the others?

Can it deliver?

Does it offer me

something?

Do I know

about it?

Bonding

Advantage

Performance

Relevance

Presence



BrandDynamics Pyramid

-Developed by Millward Brown of BRANDZ

Marketing as a model of brand strength

Nothing else beats it Strong relationship / High

Does it offer something share of category expenditure

better than the others?

Can it deliver?

Does it offer me

something?

Do I know Weak relationship /

about it? Low share of category

expenditure

Bonding

Advantage

Performance

Relevance

Presence



Brand Resonance Model

Stages of Brand Brand Brand building Branding objective at

Development blocks each stage

4. Relationships

= what about

you and me?

3. Response =

what about

you?

2. Meaning =

what are you?

1. Identity =

who are you?

Intense, active

loyalty

Positive,

accessible

reactions

Points-of-

parity &

difference

Deep, broad

brand

awareness

Resonance

Judgments Feelings

Performance Imagery

Salience



Brand salience – how often and how easily customers think of the brand

under various purchase or consumption situations

Brand performance – how well the product or service meets customers’

functional needs

Brand imagery – the ways in which brand attempts to meet customers’

psychological or social needs

Brand judgments – focus on customers’ own personal opinions and

evaluations

Brand feelings – customers’ emotional responses and reactions with respect

to the brand

Brand resonance – nature of the relationship customers have with the brand

(“in sync” with it)

Brand Resonance Model



1. Initial choices for the brand elements or identities making

up the brand

2. The way the brand is integrated into the supporting

marketing program

3. The associations indirectly transferred to the brand by

linking the brand to some other entity

Brand equity drivers



1. Memorable – how easily the brand element is recalled and

recognized (i.e. short names)

2. Meaningful – credibility of the brand, product ingredient or

type of person who might use the brand

3. Likeable – how visually and verbally appealing is the brand

element

4. Transferable – can the brand element be used to introduce

new products in the same or different categories?

Brand element choice criteria



5. Adaptable – how adaptable and updatable is the brand

element

Betty Crocker in 1936 Betty Crocker in 1986

6. Protectible – brand names that become synonymous with

product categories

Brand element choice criteria



1. Brand audit - measures “where the brand has been”

2. Brand-tracking studies – measure “where the brand is now” and

whether marketing programs are having the intended effects

Measuring brand equity



Brand valuation – estimating the total financial value of the brand

Measuring brand equity

Rank Brand 2006 Brand Value

(Billions)

1 Coca-cola $67.00

2 Microsoft $56.93

3 IBM $56.20

4 GE $48.91

5 Intel $38.32

6 Nokia $30.13

7 Toyota $27.94

8 Disney $27.85

9 McDonald’s $27.50

10 Mercedes-Benz $22.13



1. Brand reinforcement

- requires innovation and relevance throughout the marketing

program

- brand must be moving forward in the right direction with new

offerings and ways to market them

2. Brand revitalization

- reinvention strategy

- renewal of commitment to quality

Managing brand equity



reflected on where

customers price market share profitability quality is a factor over quantity

Pillars of brand equity:

differentiation energy relevance esteem knowledge

energized brand strength brand stature

criteria for brand element:

memorable/short meaningful likeable transferrable

adaptable protectible

Brand Equity



CREATING

BRAND

EQUITY

MARKMA

Rhea G. Jardin

May 4, 2012



chapter9 ppt group3

Business