BRAND MANAGEMENT

CLOSING OBSERVATIONS Chapter 15

LEARNING OBJECTIVES

Understand the six future brand imperatives

Identify the ten criteria for the brand report card
Outline the seven deadly sins of brand
management
STRATEGIC BRAND MANAGEMENT GUIDELINES

Summary of Customer-Based
Brand Equity Framework

Tactical Guidelines
SUMMARY OF CUSTOMER-BASED BRAND EQUITY
FRAMEWORK

Sources of brand equity

Outcomes of brand equity
FIGURE - SUMMARY OF BRAND KNOWLEDGE
SOURCES OF BRAND EQUITY
Dimensions of brand associations depend on three
factors:
• Strength - Function of both the amount, or quantity, of
processing that information initially receives, and the
nature, or quality, of the processing.

• Favorability - Favorable associations for a brand are

those that are desirable to customers, successfully
delivered by the product, and conveyed by the
supporting marketing program. buy it.
SOURCES OF BRAND EQUITY

Dimensions of brand associations depend on

three factors:

•Uniqueness - To create the differential response

that leads to customer-based brand equity,
marketers need to associate unique, meaningful
points-of-difference to the brand that provide a
competitive advantage and a reason for
consumers to buy it.
FIGURE 15.2 - DETERMINANTS OF DESIRED BRAND
KNOWLEDGE STRUCTURES
OUTCOMES OF BRAND EQUITY

Benefits for the brand

 Improved perceptions of product performance
 Greater customer loyalty
 Less vulnerability to competitive marketing
actions
 Less vulnerability to marketing crises
 Higher margins
OUTCOMES OF BRAND EQUITY
 More inelastic consumer response to price increases
 More elastic consumer response to price decreases
 Greater trade cooperation and support
 Increased marketing communication effectiveness
 Possible licensing opportunities
 Additional brand extension opportunities
TACTICAL GUIDELINES

Building Brand Equity

Measuring Brand Equity

Managing Brand Equity

FIGURE - BUILDING CUSTOMER-BASED BRAND EQUITY
FIGURE - GUIDELINES FOR BUILDING BRAND EQUITY
BUILDING BRAND EQUITY

A dominant theme across many of these

different ways to build brand equity is the
importance of:
 Complementarity: Choosing different brand elements
and supporting marketing activities
 Potential contribution to brand equity of one compensates for the
shortcomings of others
 Consistency: Across elements helps create the highest
level of awareness and the strongest and most
favorable associations possible
MEASURING BRAND EQUITY

A set of research procedures designed to

provide timely, accurate, and actionable
information for marketers about their
brands
Implementing a brand equity measurement
system has three steps:
 Conducting brand audits
 Designing brand tracking studies
 Establishing a brand equity management system
FIGURE 15.5 - GUIDELINES FOR MEASURING BRAND EQUITY
FIGURE - MANAGING CUSTOMER-BASED BRAND EQUITY
FIGURE - MANAGING CUSTOMER-BASED BRAND EQUITY
FIGURE - GUIDELINES FOR MANAGING BRAND EQUITY
MANAGING BRAND EQUITY

The dominant themes in managing brand

equity:
 The importance of maintaining balance in marketing
activities
 Making moderate levels of change in the marketing
program over time
WHAT MAKES A STRONG BRAND?

▪ Understand brand meaning and market

appropriate products and services in an
appropriate manner
▪ Properly position the brand
▪ Provide superior delivery of desired benefits
▪ Employ a full range of complementary brand
elements, supporting marketing activities, and
secondary associations
WHAT MAKES A STRONG BRAND?

▪ Embrace integrated marketing communications

and communicate with a consistent voice
▪ Measure consumer perceptions of value and
develop a pricing strategy accordingly
▪ Establish credibility and appropriate brand
personality and imagery
WHAT MAKES A STRONG BRAND?

Maintain innovation and relevance for the

brand
Strategically design and implement a
brand architecture strategy
Implement a brand equity management
system
 Ensures that marketing actions properly reflect the
brand equity concept
FIGURE - SEVEN DEADLY SINS OF BRAND MANAGEMENT
FIGURE - FUTURE BRAND IMPERATIVES
FIGURE - FUTURE BRAND IMPERATIVES
FULLY AND ACCURATELY FACTOR THE CONSUMER INTO
THE BRANDING EQUATION
• Successful brands create mental structures and
knowledge in consumers’ minds that cause them to
favor the brand.
• Consumer insights are used to skillfully manage
customers and brands and to maximize brand equity
and customer equity.
• Customer diversity - Due to customer diversity and
increasing segmentation, concepts such as permission
marketing, one-to-one marketing, and brand
journalism are being introduced.
FULLY AND ACCURATELY FACTOR THE CONSUMER INTO
THE BRANDING EQUATION

• Customer empowerment - The emergence of

the Internet and social media have given
consumers the ability, to seek information and
arrive at preferred choices about products,
services, and brands.
GO BEYOND PRODUCT PERFORMANCE AND RATIONAL
BENEFITS

• Competitive advantages and brand strength

will come from having better-designed products
and services than competitors, providing a
wider range of compelling consumer benefits
as a result.
MAKE THE WHOLE OF THE MARKETING PROGRAM
GREATER THAN THE SUM OF THE PARTS
• The art and science of integrated marketing is to
optimally design and implement any one channel or
communication activity so that it creates not only direct
effects, but also indirect effects that increase the impact
of other channel or communication options.
• Social media - An online, interactive communications
programs typically includes some or all of the
following: a well-designed Web site; e-mails; banner,
rich media, or other forms of electronic ads; search
advertising; and social media.
UNDERSTAND WHERE YOU CAN TAKE A BRAND
(AND HOW)

• Growth requires a well implemented

brand architecture strategy that clarifies
three key issues:
• The potential of a brand in terms of the breadth of
its “market footprint”.
• The types of product and service extensions that
would allow a brand to achieve that potential.
• The brand elements, positioning, and images that
identify and are associated with all the offerings of
a brand in different markets and to different
consumers.
DO THE “RIGHT THING” WITH BRANDS
• Cause marketing - Effective cause marketing programs
can accomplish a number of objectives for a brand:
build brand awareness, enhance brand image,
establish brand credibility, evoke brand feelings,
create a sense of brand community, and elicit brand
engagement.
• Protecting brand equity - Brands are allowed to
profitably grow while preserving close bonds with
consumers and benefits to society as a whole.
TAKE A BIG PICTURE VIEW OF BRANDING EFFECTS.
KNOW WHAT IS WORKING (AND WHY)

• Justifying brand investments - Any particular

marketing activity may increase the breadth or
depth of brand awareness; establish or
strengthen performance-related or imagery-
related brand associations; elicit positive
judgments or feelings; create stronger ties or
bonds with the brand; initiate brand-related
actions such as search, word-of-mouth, and
purchase.
• Its effects may be enduring as well as short-term.
TAKE A BIG PICTURE VIEW OF BRANDING EFFECTS.
KNOW WHAT IS WORKING (AND WHY)

• Achieving deeper brand understanding -

The stronger the brand, the more power
brand marketers have with distributors
and retailers, and the easier it is to
implement marketplace programs to
capitalize on brand equity.
• Extracting proper price premiums that reflect the
value of the brand—and not over or
underpricing—is one of the most critical financial
considerations for branding.
TO SUM UP..
Effective brand management requires consistent
application of guidelines across all aspects of the
marketing program
Each branding situation and application is unique and
requires careful scrutiny and analysis
 How best to apply, or perhaps in some cases ignore various
recommendations and guidelines