15.1

CHAPTER 15:CHAPTER 15: CLOSING OBSERVATIONS CLOSING OBSERVATIONS

Kevin Lane KellerKevin Lane KellerTuck School of BusinessTuck School of Business

Dartmouth CollegeDartmouth College

15.2

Brand Knowledge StructureBrand Knowledge Structure

Brand awareness, depth, and breadth

Brand associations

15.3

Summary of Customer-Summary of Customer-Based Brand Equity Based Brand Equity

FrameworkFramework Sources of brand equitySources of brand equity StrengthStrength Favorability Favorability UniquenessUniqueness

Outcomes of brand equityOutcomes of brand equity Greater loyaltyGreater loyalty Less vulnerability to competitive marketing actionsLess vulnerability to competitive marketing actions Less vulnerability to marketing crisesLess vulnerability to marketing crises Larger marginsLarger margins More inelastic consumer response to price increasesMore inelastic consumer response to price increases More elastic consumer response to price decreasesMore elastic consumer response to price decreases Greater trade cooperation and supportGreater trade cooperation and support Increased marketing communication effectivenessIncreased marketing communication effectiveness Possible licensing opportunitiesPossible licensing opportunities Additional brand extension opportunitiesAdditional brand extension opportunities

15.4

Tactical GuidelinesTactical Guidelines

Building brand equityBuilding brand equity1.1. Through the initial choice of the brand Through the initial choice of the brand

elements making up the brand elements making up the brand

2.2. Through marketing activities and the Through marketing activities and the design of the marketing program design of the marketing program

3.3. Through the leverage of secondary Through the leverage of secondary associations that link the brand to associations that link the brand to other entitiesother entities

15.5

Guidelines for Building Brand Guidelines for Building Brand EquityEquity

Mix and match brand elements Create a rich brand image and high

perceived quality Adopt value-based pricing strategy Consider a range of distribution

options Mix marketing communication

options Leverage secondary associations

15.6

Importance of Importance of Complementarity and Complementarity and

ConsistencyConsistency

CComplementarityomplementarity means choosing different means choosing different brand elements and supporting marketing brand elements and supporting marketing activities so that the potential contribution activities so that the potential contribution to brand equity of one compensates for the to brand equity of one compensates for the shortcomings of others. shortcomings of others.

A high degree of A high degree of consistencyconsistency across these across these elements helps to create the highest level elements helps to create the highest level of awareness and the strongest and most of awareness and the strongest and most favorable associations possible. favorable associations possible.

15.7

Guidelines for Measuring Guidelines for Measuring Brand EquityBrand Equity

Formalize the firm’s view of brand equity

Conduct brand inventories Conduct consumer tracking studies Assemble results of outcome

measures Establish a department to oversee

the implementation

15.8

Guidelines for Managing Guidelines for Managing Brand EquityBrand Equity

Define brand hierarchy Create global associations Introduce brand extensions Clearly establish the roles of brands

in the portfolio Reinforce brand equity over time Enhance brand equity over time Identify differences in consumer

behavior in different market segments

15.9

Characteristics of Strong Characteristics of Strong Brands ManagersBrands Managers

Understand brand meaning and market appropriate Understand brand meaning and market appropriate products in an appropriate mannerproducts in an appropriate manner

Properly position the brandProperly position the brand Provide superior delivery of desired benefitsProvide superior delivery of desired benefits Employ a full range of complementary brand elements Employ a full range of complementary brand elements

and supporting marketing activitiesand supporting marketing activities Embrace integrated marketing communications and Embrace integrated marketing communications and

communicate with a consistent voicecommunicate with a consistent voice Measure consumer perceptions of value and develop a Measure consumer perceptions of value and develop a

pricing strategy accordinglypricing strategy accordingly Establish credibility and appropriate brand personality Establish credibility and appropriate brand personality

and imageryand imagery Maintain innovation and relevance for the brandMaintain innovation and relevance for the brand Strategically design and implement a brand hierarchy and Strategically design and implement a brand hierarchy and

brand portfoliobrand portfolio Implement a brand equity management system to ensure Implement a brand equity management system to ensure

that marketing actions properly reflect the brand equity that marketing actions properly reflect the brand equity conceptconcept

15.10

Seven Deadly Sins of Brand Seven Deadly Sins of Brand ManagementManagement

1.1. Failure to understand the full meaning Failure to understand the full meaning of the brandof the brand

2.2. Failure to live up to the brand promiseFailure to live up to the brand promise3.3. Failure to adequately support the brandFailure to adequately support the brand4.4. Failure to be patient with the brandFailure to be patient with the brand5.5. Failure to adequately control the brandFailure to adequately control the brand6.6. Failure to properly balance consistency Failure to properly balance consistency

and change with the brandand change with the brand7.7. Failure to understand complexity of Failure to understand complexity of

brand equity measurement and brand equity measurement and managementmanagement

15.11

Industrial and B2B Industrial and B2B BrandingBranding

Adopt a corporate or family branding Adopt a corporate or family branding strategystrategy

Link non-product-related imagery Link non-product-related imagery associationsassociations

Employ full range of marketing Employ full range of marketing communication optionscommunication options

Leverage equity of other companies that Leverage equity of other companies that are customersare customers

Segment markets carefully and develop Segment markets carefully and develop tailored branding and marketing tailored branding and marketing programsprograms

15.12

Guidelines for High-Tech Guidelines for High-Tech BrandingBranding

Establish brand awareness and rich Establish brand awareness and rich brand imagebrand image

Create corporate credibility Create corporate credibility associationsassociations

Leverage secondary associations of Leverage secondary associations of qualityquality

Avoid overbranding productsAvoid overbranding products Selectively introduce new products as Selectively introduce new products as

new brands and clearly identify the new brands and clearly identify the nature of brand extensions nature of brand extensions

15.13

Guidelines for Service Guidelines for Service BrandingBranding

Maximize service qualityMaximize service quality Employ a full range of brand elements to Employ a full range of brand elements to

enhance brand recallenhance brand recall Create and communicate strong organizational Create and communicate strong organizational

associationsassociations Design corporate communication programs Design corporate communication programs

that augment consumers’ service encounters that augment consumers’ service encounters and experiencesand experiences

Establish a brand hierarchy using distinct Establish a brand hierarchy using distinct family or individual brands as well as family or individual brands as well as meaningful ingredient brandsmeaningful ingredient brands

15.14

Guidelines for Branding Guidelines for Branding RetailersRetailers

Create a brand hierarchy consisting of Create a brand hierarchy consisting of the store as a whole as well as the store as a whole as well as individual departmentsindividual departments

Enhance the manufacturer’s brand Enhance the manufacturer’s brand equity by communicating PODsequity by communicating PODs

Establish brand equity at all levels of Establish brand equity at all levels of the brand hierarchythe brand hierarchy

Create multichannel shopping Create multichannel shopping experienceexperience

Avoid overbrandingAvoid overbranding

15.15

Guidelines for Small Business Guidelines for Small Business BrandingBranding

Emphasize building one or two strong Emphasize building one or two strong brandsbrands

Focus the marketing program on one or Focus the marketing program on one or two key associationstwo key associations

Employ a well-integrated set of brand Employ a well-integrated set of brand elements that enhances both brand elements that enhances both brand awareness and imageawareness and image

Design creative brand-building push Design creative brand-building push campaignscampaigns

Leverage as many secondary associations Leverage as many secondary associations as possibleas possible

15.16

Guidelines for Online Guidelines for Online BrandingBranding

Don’t forget the brand building Don’t forget the brand building basicsbasics

Create strong brand identityCreate strong brand identity Generate strong consumer pullGenerate strong consumer pull Selectively choose brand Selectively choose brand

partnershipspartnerships Maximize relationship marketingMaximize relationship marketing

15.17

Future Brand PrioritiesFuture Brand Priorities

How will branding change in the How will branding change in the coming years? What are the biggest coming years? What are the biggest branding challenges? What will branding challenges? What will make a successful “twenty-first-make a successful “twenty-first-century brand”? century brand”?

15.18

Building Brand EquityBuilding Brand Equity Brand elementsBrand elements

In a cluttered, competitive marketplace, the In a cluttered, competitive marketplace, the brand elements that make up the brand will brand elements that make up the brand will have to do more and more of the selling job. have to do more and more of the selling job.

Marketing programsMarketing programs Strong brands in the twenty-first century Strong brands in the twenty-first century

also will rise above others by better also will rise above others by better understanding the needs, wants, and understanding the needs, wants, and desires of consumers and creating desires of consumers and creating marketing programs that fulfill and even marketing programs that fulfill and even surpass consumer expectations. surpass consumer expectations.

15.19

Measuring Brand EquityMeasuring Brand Equity

Marketers of successful twenty-first-Marketers of successful twenty-first-century brands will create century brands will create formalized measurement approaches formalized measurement approaches and processes that ensure they and processes that ensure they continually monitor their sources of continually monitor their sources of brand equity and those of brand equity and those of competitors. competitors.

15.20

Managing Brand EquityManaging Brand Equity It will be essential in building strong It will be essential in building strong

twenty-first-century brands to align twenty-first-century brands to align internal and external brand management. internal and external brand management. Internal brand management Internal brand management ensures that ensures that

employees and marketing partners appreciate employees and marketing partners appreciate and understand basic branding notions and and understand basic branding notions and how they can affect the equity of brands. how they can affect the equity of brands.

External brand managementExternal brand management requires requires understanding the needs, wants, and desires understanding the needs, wants, and desires of consumers and creating brand marketing of consumers and creating brand marketing programs that fulfill and even surpass programs that fulfill and even surpass consumer expectations. consumer expectations.

Companies must also align bottom-up and Companies must also align bottom-up and top-down marketing management .top-down marketing management .

15.21

Achieving Marketing Achieving Marketing BalanceBalance

The most fundamental challenge of The most fundamental challenge of marketing and brand management is marketing and brand management is reconciling the many potential trade-offs reconciling the many potential trade-offs in marketing decisions in marketing decisions

There are three means or levels of There are three means or levels of achieving marketing balance, in achieving marketing balance, in increasing order of potential increasing order of potential effectiveness:effectiveness: Alternate Alternate Divide Divide Finesse Finesse