Creating Brand Equity

Discussion Questions
How do consumer characteristics infuence buying behavior?

What major psychological processes infuence consumer responses to

the marketing program?

How do consumers make purchasing decisions?

In what ways do consumers stray from a deliberative, rational decision

process?
Strategic Brand Management

Measure
/
Interpret

Plan Grow

Identify
Brand
 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 diferentiate them from those of
competitors.
Role of Brands
Consumer Benefts

Brands:

Identify source/maker

Determine the product’s relative

performance

Evaluate a product based on its

functional merits
Marketer Benefts

Brands:

Simplify product handling

Protect unique features

Create loyalty

Establish barriers to entry

Scope of Branding
 “A brand is a perceptual entity that is rooted in reality, but refects the
perceptions and perhaps even the idiosyncrasies of consumers.
Ultimately, a brand is something that resides in the minds of consumers.
Therefore, the scope of branding expands beyond boundaries.”

- Philip Kotler
Brand Equity
The commercial value that derives from consumer perception of the brand name
of a particular product or service, rather than from the product or service itself.
 Customer-based Brand
Equity

Diferences in Consumers’ brand

consumer response knowledge

Perceptions,
preferences, and
behaviors
 Brand Promise

Marketer’s vision of what the brand must be and do for consumers.

 Brand Equity
Models

Brand Asset Brand Resonance

Brand Asset BrandZ Brand Resonance
Valuator (BAV) BrandZ Model
Valuator (BAV) Model
 Brand Asset® Valuator Model
Energized
Diferentiation

Relevance

Esteem

Knowledge

Brand Brand
Strength Stature
 Universe of Brand Performance

These brands have Customers fnd these

relevance, but only brand irresistible. They
to a small have high earnings and
audience. margin power.

These brands
These brands are
can’t overcome
not well known.
what is already
Many are new,
known about
others are lost.
them.
 Brand Dynamics Pyramid

Strong relationship/
High share of category expenditure

Nothing else beats it Bonding

Does it ofer something better

Advantage
than others?

Can it deliver? Performance

Does it ofer me
something?
Relevance

Do I know about it? Presence

Weak relationship/
Low share of category expenditure
 Brand Resonance Pyramid

tages of Brand Development Brand Objective at Each Stage

4. Relationships =
What about Brand Building Intense, active loyalty
Brand Blocks
you and me?
Resonance

3. Response = What Positive, accessible

about you? Judgements Feelings reactions

2. Meaning = What are you? Points of parity and

Performance Imagery Diference

Salience Deep, broad brand

1. Identify = Who are you?
awareness
 Building Brand Equity

Brand
Elements

Brand Equity

Secondary Marketing
Associations Activities
Brand Elements
Brand Names
URLs
Logos
Symbols
Characters
Spokespeople
Slogans
Jingles
Packages
Signage
 Brand Elements Choice Criteria

Brand Builders
Memorable
Meaningful
Likable

Defensive
Transferable
Adaptable
Protectable
Developing Brand Elements

Easy to recall
Descriptive
Persuasive
 Holistic Marketing Activities

Observation Interactions w/ Company Word of Mouth

 Secondary Associations

Geographic Regions

Other Brands

Brand Characters

Spokespeople

Sporting Events
 Secondary Source of Brand Knowledge

Alliances Ingredients Company Extensions

Other
Brands
Country of
Employees Origin
People BRAND Places

Endorsers Channels
Things

Events Third-party
Causes
Ecosystems
 Internal Branding

Employees

Brand
Promise

Partners
Brand Communities
Members have:

Brand connection

Shared rituals/stories

Responsibility to community
Measuring Brand
Equity

Brand Audit
 Brand Value Chain
Value Stages

Marketing
Customer Brand Shareholder
Program
Mind-set Performance Value
Investment

• Product • Awareness • Price premiums • Stock price

• Communications • Associations • Price elastics • P/E ratio
• Trade • Attitudes • Market share • Market capitalization
• Employee • Attachment • Expansion success
• Other • Activity • Cost structure
• Proftability

Progra Custom
Market
m er
Multipliers Multipli Multipli
Multipli
er
er er

• Clarity • Competitive reactions • Market dynamics

• Relevance • Channel support • Growth potential
• Distinctiveness • Customer size & profle • Risk profle
• Consistency • Brand contribution
 World’s 10 Most Valuable Brands

2009 Brand
Rank Brand
Value (Billions)
1 Coca-Cola $68.7
2 IBM $60.2
3 Microsoft $56.6
4 GE $47.8
5 Nokia $34.9
6 McDonald’s $32.3
7 Google $32.0
8 Toyota $31.3
9 Intel $30.6
10 Disney $28.4
 Inter-brand Brand Valuation

Market Segments
Market Segments

Competitiv
Financial Demand
e Bench-
Analysis Drivers
marking

Intangible Role of Brand

Earnings Branding Strength

Brand
Brand
Discount
Earnings
Rate

Brand Value
Brand Value
(net present value of future brand
(net present value of future brand
earnings)
earnings)
 Managing Brand Equity

Brand Revitalization Brand Reinforcement

Branding Strategy

Develop new brand

elements

Apply existing brand

elements

Combine new and existing

elements
 Branding Strategy

Parent Brand
(Master or Family
Brand)

Line Extension Category Extension

Tide Honda
- Fruit on the - Automobiles
Bottom - Lawn Mowers
- Fruit Blends
 Branding Decisions

Individual Brand Names Company Brand Sub-brand Name

Bisquick GE Kellogg’s Rice Krispies

Gold Medal Heinz Frosted Flakes
Wheaties Campbell Soup
Yoplait
 Brand Portfolio

A brand portfolio is the set of all brands and brand lines a

particular frm ofers for sale in a particular category or
market segment.
 Brand Portfolio - Sony

Televisio Portable
Compute Sony
Cameras ns Electroni Games
r Pictures
Theatre cs
Televisions
VAIO
Cyber-shot
- Notebook Walkman
Home Movies
- Desktop Video MP3
Alpha SLR theatre -Theatre
systems -DVD
Digital Rolly
HandyCam -Blue-ray
Home PlayStati
Blu-ray
Reader on
Printers Disc Television
Disc Burner Digital - PS3
-Comedy
Book - PS2
Digital DVD -Drama
Location - Portable
picture players -Daytime
Free Sony Cell
frames -Cartoons
Phone
Home
mylo
Photo audio Music
GPS
services component
Software
s
 Brand Roles

High-end Prestige Low-end Entry Level Cash Cows Flankers

Brand Extensions

Improve the odds of new-product success