10 Ippt

10
Creating Brand Equity

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?
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e. 10-2
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
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.
The Role of Brands
▪ Identify the maker

▪ Simplify product handling
▪ Organize accounting
▪ Offer legal protection
The Role of Brands
▪ Signify quality
▪ Create barriers to entry
▪ Serve as a competitive advantage
▪ Secure price premium
What Is Branding?
Branding is endowing products
and services with the power of the
brand.
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.
Advantages of Strong Brands
▪ Improved perceptions ▪ Larger margins

of product performance ▪ More inelastic
▪ Greater loyalty consumer response
▪ Less vulnerability to ▪ Greater trade
competitive marketing cooperation
actions ▪ Increased marketing
▪ Less vulnerability to communications
crises effectiveness
▪ Possible licensing
opportunities
What Is a Brand Promise?
Brand Equity Models
Brand Asset Valuator (BAV)
Brand
Brand Resonance
Figure 10.1 BAV Model
Source: Courtesy of
BrandAsset®
Consulting,
a division of Young &
Rubicam.
Figure 10.2 Universe of
Brand Performance
Figure 10.3
Brand Dynamics Pyramid
Source: BrandDynamics™ Pyramid. Reprinted with permission of Millward Brown.
Figure 10.4 Brand Resonance
Pyramid
▪ Brand salience is how often and how easily customers think of
the brand under various purchase or consumption situations.
▪ Brand performance is how well the product or service meets
customers’ functional needs.
▪ Brand imagery describes the extrinsic properties of the
product or service, including the ways in which the brand
attempts to meet customers’ psychological or social needs.
▪ Brand judgments focus on customers’ own personal opinions
and evaluations.
▪ Brand feelings are customers’ emotional responses and
reactions with respect to the brand.
▪ Brand resonance describes the relationship customers have
with the brand and the extent to which they feel they’re “in
sync” with it.
Brand Building Blocks
Drivers of Brand Equity
Brand Elements
▪ Brand names ▪ Symbols

▪ Slogans ▪ Logos
▪ Characters ▪ URLs
Brand Element Choice Criteria
Memorable
Meaningful
Likeable
Transferable
Adaptable
Protectable
Slogans
▪ The Complete Man

(Raymond)
▪ The Joy of Flying
(Jet Airways)
▪ God’s Own Country
(Kerala Tourism)
Figure 10.5 Secondary Sources of
Brand Knowledge
Internal Branding
▪ Choose the right moment

▪ Link internal and external marketing
▪ Bring the brand alive for employees
Figure 10.6 Brand Value Chain
Source: Kevin Lane Keller, Strategic Brand Management, 3rd ed. (Upper Saddle River, NJ:
Prentice Hall, 2008). Printed and electronically reproduced by permission of Pearson Education,
Inc. Upper Saddle River, New Jersey.
Measuring Brand Equity
▪ Brand audits
▪ Brand tracking
▪ Brand valuation
Table 10.4
The 10 Most Valuable Brands
Figure 10.7 Interbrand Brand
Valuation Method
Managing Brand Equity
▪ Brand reinforcement
▪ Brand revitalization
▪ NIVEA, one of Europe’s strongest brands, has
expanded from a skin cream brand to a skin care and
personal care brand through carefully designed and
implemented brand extensions that reinforce the
brand promise of “mild,” “gentle,” and “caring.”
Reinforcing brand equity requires that the brand
always be moving forward— in the right direction and
with new and compelling offerings and ways to market
them. Many brand leaders have maintained their
leadership position by constantly striving to improve
their products and services and through relevant
marketing programs. This is illustrated by Parle-G,
one of India’s longest surviving brands.
Devising a Branding Strategy
▪ Develop new brand elements

▪ Apply existing brand elements
▪ Use a combination of old and new
Branding Terms
▪ Brand line ▪ Line extension

▪ Brand mix ▪ Category extension
▪ Brand extension ▪ Branded variants
▪ Sub-brand ▪ Licensed product
▪ Parent brand
▪ Family brand
Reasons for Brand Portfolios
Some other reasons for introducing multiple

brands in a category include increasing shelf
presence and retailer dependence in the store,
attracting consumers seeking variety, increasing
internal competition within the firm, and yielding
economies of scale in advertising, sales,
merchandising, and distribution.
Brand Roles in a Brand Portfolio
▪ Flankers
▪ Cash cows
▪ Low-end, entry-level
▪ High-end prestige
Brand Extensions: Advantages
▪ Improved odds of
new-product success
▪ Positive feedback effects
Brand Extensions: Disadvantages
▪ Brand dilution
▪ Brand confusion
▪ Damage to parent brand
▪ Cannibalization
For Review
▪ 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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Creating Brand Equity

▪ What is a brand and how does branding

▪ Identify the maker

Brand equity is the added value endowed

▪ Improved perceptions ▪ Larger margins

Brand Asset Valuator (BAV)

Source: BrandDynamics™ Pyramid. Reprinted with permission of Millward Brown.

▪ Brand names ▪ Symbols

▪ The Complete Man

▪ Choose the right moment

▪ Develop new brand elements

▪ Brand line ▪ Line extension

Some other reasons for introducing multiple

▪ What is a brand and how does branding

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