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Creating Brand Equity
Marketing Management, 13th ed
9
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-2
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?
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ESPN: A Strong Brand
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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
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What is a Brand?
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.
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The Role of Brands
Identify the makerIdentify the maker
Simplify product handlingSimplify product handling
Organize accountingOrganize accounting
Offer legal protectionOffer legal protection
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The Role of Brands
Signify qualitySignify quality
Create barriers to entryCreate barriers to entry
Serve as a competitive advantage
Serve as a competitive advantage
Secure price premiumSecure price premium
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What is Branding?
Branding is endowing products and services with the
power of the brand.
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What is Brand Equity?
Brand equity is the added value endowed on products and services, which may be reflected in the way
consumers, think, feel, and act with respect to the brand.
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Brand Knowledge
Knowledge
Thoughts
Experiences
BeliefsImages
Feelings
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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
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Apple is a Strong Brand
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What is a Brand Promise?
A brand promise is the marketer’s vision of what the brand must be and
do for consumers.
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-14
Burger King Builds Its Brand with Social Connectivity
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Brand Equity Models
• Brand Asset Valuator
• Aaker Model
• BRANDZ
• Brand Resonance
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BAV Key Components
Differentiation
Energy
Relevance
Esteem
Knowledge
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Figure 9.3 Brand Dynamics Pyramid
Presence
Relevance
Performance
Advantage
Bonding
Strong Relationship
Weak Relationship
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Aaker Model
Brand Identity
Extended Identity
ElementsBrand Essence
Core Identity
Elements
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Figure 9.4 Brand Resonance Pyramid
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Drivers of Brand Equity
Brand Elements
Marketing Activities
Meaning Transference
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Brand Elements
ElementsSlogans
Brand
names URLs
Logos
SymbolsCharacters
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Brand Element Choice Criteria
• Memorable• Meaningful• Likeability• Transferable• Adaptable• Protectible
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Slogans
• Like a good neighbor, State Farm is there
• Just do it• Nothing runs like a
Deere• Save 15% or more
in 15 minutes or less
• We try harder• We’ll pick you up• Nextel – Done• Zoom Zoom• I’m lovin’ it• Innovation at work• This Bud’s for you• Always low prices
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Designing Holistic Marketing Activities
Personalization
Integration
Internalization
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Internal Branding
• Choose the right moment
• Link internal and external marketing
• Bring the brand alive for employees
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Figure 9.5 Secondary Sources of Brand Knowledge
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Measuring Brand Equity
Brand AuditsBrand Audits
Brand TrackingBrand Tracking
Brand ValuationBrand Valuation
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Table 9.2 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
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Managing Brand Equity
Brand ReinforcementBrand Reinforcement
Brand RevitalizationBrand Revitalization
Brand CrisesBrand Crises
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Interbrand’s Steps in Calculating Brand Equity
• Market segmentation
• Financial analysis
• Role of branding
• Brand strength
• Brand value calculation
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Devising a Branding Strategy
Develop new brand elements
Develop new brand elements
Apply existing brand elements
Apply existing brand elements
Use a combination of old and new
Use a combination of old and new
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Branding Terms
• Brand line• Brand mix• Brand extension• Sub-brand• Parent brand• Family brand
• Line extension• Category extension• Branded variants• Licensed product• Brand dilution• Brand portfolio
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Brand Naming
Individual namesIndividual names
Blanket family namesBlanket family names
Separate family namesSeparate family names
Corporate name-individual name combo
Corporate name-individual name combo
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Reasons for Brand Portfolios
• Increasing shelf presence and retailer dependence in the store
• Attracting consumers seeking variety
• Increasing internal competition within the firm
• Yielding economies of scale in advertising, sales, merchandising, and distribution
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Brand Roles in a Brand Portfolio
Flankers
Low-end
Entry-level
High-end
Prestige
Cash Cows
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Marketing Debate
Are brand extensions good or bad?
Take a position:1. Brand extensions can endanger brands.
or
2. Brand extensions are an important brand-growth strategy.
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Marketing Discussion
How can you relate the different modelsbrand equity presented in this chapter? How are they similar? Different? Can you reconstruct a brand-equity Model that incorporates the best of each?