Session 4 B Fs

08-08-2017
Chapter
11
Creating
Brand Equity
Copyright © 2016 Pearson Education Ltd. 11-1
Learning Objectives
1. What is a brand, and how does branding work?
2. What is brand equity?
3. How is brand equity built?
4. How is brand equity measured?
5. How is brand equity managed?
6. What is brand architecture?
7. What is customer equity?
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How Does
Branding Work?
• American Marketing Association
– 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”
A brand is a promise between the firm

and the consumer.
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The role of brands

• Brands’ role for consumers
 Set and fulfill expectations

 Reduce risk
 Simplify decision making
 Take on personal meaning
 Become part of identity
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The role of brands

• Brands’ role for firms
 Simplify product handling

 Organize inventory & accounting
 Offer legal protection
 Create brand loyalty
 Secure competitive advantage
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• To firms, brands represent enormously valuable pieces of

legal property that can influence consumer behavior, be
bought and sold, and provide their owner the security of
sustained future revenues.
• Companies have paid dearly for brands in mergers or

acquisitions, often justifying the price premium on the basis of
the extra profits expected and the difficulty and expense of
creating similar brands from scratch.
The Scope of Branding

• Branding
– The process of
endowing products
and services with
the power of a
brand
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Defining Brand Equity

• Brand equity
– Added value endowed to products with
consumers

• Customer-based brand equity
– The differential effect brand knowledge has
on consumer response to the marketing of
that brand
 Differences in consumer response

 Brand knowledge
 Perceptions, preferences, and behavior
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• Brand promise
– The marketer’s vision of what the brand must
be and do for consumers
Brand Equity Models
BrandAsset® Valuator
Brandz
Brand Resonance Model
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Brand Equity Models

• BrandAsset®
Valuator
– Energized
differentiation
– Relevance
– Esteem
– Knowledge
Figure 11.2
The Universe of Brand Performance
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Brand Equity Models

• Brandz
– Meaningful, different, & salient associations
– Power, premium, & potential outcomes
Brand Equity Models

• Brand Resonance Pyramid
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Building Brand Equity

• Brand equity drivers
Brand element or identity choices
Product & accompanying marketing
Other associations
Building Brand Equity

• Brand element choice criteria
Memorable Meaningful
Protectable Likable
Adaptable Transferable
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Memorable
Meaningful
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Likable
Designing Holistic Marketing

Activities
• Brand contact
– Any information-bearing experience (positive
or negative) a customer or prospect has with
the brand, its product category, or its market
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Leveraging
Secondary Associations
INTERNAL BRANDING
• Activities and processes that help
inform/inspire employees about brands
Choose the right Link internal & external

moment marketing
Bring the brand alive for

Keep it simple
employees
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Measuring Brand Equity

• Brand value chain

• Brand audit
• Brand-tracking studies
• Brand valuation
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Figure 11.7
Interbrand Brand Valuation Method
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Managing Brand Equity

• Brand reinforcement
– Requires the brand
always be moving
forward
• Brand revitalization
– Almost any kind
starts with the
product
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Devising a
Branding Strategy
Can develop new brand elements for

new product
Can apply some of existing brand

elements
Can use a combination of new &

existing brand elements
Devising a
Branding Strategy
• Brand extension • Category extension
• Sub-brand • Brand line
• Parent brand • Brand mix
• Master/family brand • Branded variants
• Line extension • Licensed product
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Branding Decisions
• Alternative branding strategies
Individual or separate
family brand names
Corporate umbrella or company

brand name
Sub-brand name
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Branding Decisions
• House of brands
• A branded house
– Flagship product
Brand Portfolios
• The set of all brands and brand lines a
particular firm offers for sale in a particular
category or market segment
Flankers Cash cows
Low-end entry level High-end prestige
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Brand Extensions
• Introducing a host of new products under a
firm’s strongest brand names
 Improved odds of new-product success

 Positive feedback effects
 Risk of brand dilution
 May harm parent brand
 Firm forgoes creating new brand
Brand Extensions
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CUSTOMER EQUITY
• The sum of lifetime
values of all customers
• Is affected by customer
acquisition, retention,
and cross-selling
THANK YOU
22

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08-08-2017

Copyright © 2016 Pearson Education Ltd. 11-1

Copyright © 2016 Pearson Education Ltd. 11-2

Copyright © 2016 Pearson Education Ltd. 11-3

A brand is a promise between the firm

Copyright © 2016 Pearson Education Ltd. 11-4

The role of brands

 Set and fulfill expectations

Copyright © 2016 Pearson Education Ltd. 11-5

Copyright © 2016 Pearson Education Ltd. 11-6

Copyright © 2016 Pearson Education Ltd. 11-7

The role of brands

 Simplify product handling

Copyright © 2016 Pearson Education Ltd. 11-8

• To firms, brands represent enormously valuable pieces of

• Companies have paid dearly for brands in mergers or

Copyright © 2016 Pearson Education Ltd. 11-9

The Scope of Branding

Copyright © 2016 Pearson Education Ltd. 11-10

Defining Brand Equity

Copyright © 2016 Pearson Education Ltd. 11-11

Defining Brand Equity

 Differences in consumer response

Copyright © 2016 Pearson Education Ltd. 11-12

Defining Brand Equity

Copyright © 2016 Pearson Education Ltd. 11-13

Brand Equity Models

Brand Resonance Model

Copyright © 2016 Pearson Education Ltd. 11-14

Brand Equity Models

Copyright © 2016 Pearson Education Ltd. 11-15

Copyright © 2016 Pearson Education Ltd. 11-16

Brand Equity Models

Copyright © 2016 Pearson Education Ltd. 11-17

Brand Equity Models

Copyright © 2016 Pearson Education Ltd. 11-18

Building Brand Equity

Brand element or identity choices

Product & accompanying marketing

Copyright © 2016 Pearson Education Ltd. 11-19

Building Brand Equity

Copyright © 2016 Pearson Education Ltd. 11-20

Copyright © 2016 Pearson Education Ltd. 11-21

Copyright © 2016 Pearson Education Ltd. 11-22

Copyright © 2016 Pearson Education Ltd. 11-23

Designing Holistic Marketing

Copyright © 2016 Pearson Education Ltd. 11-24

Copyright © 2016 Pearson Education Ltd. 11-25

Choose the right Link internal & external

Bring the brand alive for

Copyright © 2016 Pearson Education Ltd. 11-26

Measuring Brand Equity

Copyright © 2016 Pearson Education Ltd. 11-27

Measuring Brand Equity

Copyright © 2016 Pearson Education Ltd. 11-28

Measuring Brand Equity

Copyright © 2016 Pearson Education Ltd. 11-29

Copyright © 2016 Pearson Education Ltd. 11-30

Managing Brand Equity

Copyright © 2016 Pearson Education Ltd. 11-31

Copyright © 2016 Pearson Education Ltd. 11-32

Can develop new brand elements for

Can apply some of existing brand