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 sellers promise to deliver the
same bundle of benefits/services
consistently to buyers (Brand Promise
Brand Equity)

Steps in the
Strategic Brand Management Process

1.

2.

3.

4.

Identifying and establishing brand

positioning
Planning and implementing brand
marketing
Measuring and interpreting brand
performance
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

BRAND EQUITY
Elements and Measurement

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

Aakers Brand Equity Model

Aakers Brand Equity Model

Brand Equity Framework

Brand Equity Framework

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 Knowledge
Thoughts

Feelings
Knowledge
Images

Beliefs
Experiences

CUSTOMERBASEDBRANDEQUITYPYRAMID

RESONANCE

JUDGMENTS

PERFORMANCE

FEELINGS

IMAGERY

SALIENCE
21

4.RELATIONSHIPS=
4.RELATIONSHIPS=
Whataboutyou&me?
Whataboutyou&me?

3.RESPONSE=
3.RESPONSE=
Whataboutyou?
Whataboutyou?

2.MEANING=
2.MEANING=
Whatareyou?
Whatareyou?

1.IDENTITY=
1.IDENTITY=

Whoareyou?
Whoareyou?

Customer-Based Brand Equity

Model
INTENSE,ACTIVE
INTENSE,ACTIVE
LOYALTY
LOYALTY

Consumer
Brand
Resonance

Consumer
Judgments

Brand
Performance

22

Consumer
Feelings

Brand
Imagery

BrandSalience

RATIONAL&
RATIONAL&
EMOTIONAL
EMOTIONAL
REACTIONS
REACTIONS
POINTSOF
POINTSOF
PARITY&
PARITY&
POINTSOF
POINTSOF
DIFFERENCE
DIFFERENCE
DEEP,BROAD
DEEP,BROAD
BRAND
BRAND
AWARENESS
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