CATERINA FOX

GLOBAL BRAND MANAGEMENT

SPRINT 1: UNIT 1
STUDYGOALS

− You will learn what brands are and why branding is important.
− You will understand the concept of brand equity.
− You will appreciate the differences between brand
management and brand leadership.
− You will hear about the importance of integrating all marketing
activities.
AGENDA

Definitions Brands/Branding 1

Brand Equity 2

Brand Management/ Brand Leadership 3

Integrating Marketing Activities 4

Intro Case

UNIT 1
“NEW COKE“
INTRO CASE

− Early 80s Coke was losing market Photo 1: Experimenting with liquids

share to its biggest competitor,

Pepsi
− Coke was far outspending Pepsi on
advertising, by upwards of $100
million per year
− In blind taste-tests, Coke drinkers
preferred Pepsi

.
Photo Source: Microsoft Archive, 2023.
INTRO CASE

− "If we have twice as many vending Photo 1: Experimenting with liquids

machines, dominate fountain, have

more shelf space, spend more on
advertising, and are competitively
priced, why are we losing share?
you have to begin asking about
taste."

.
Photo Source: Microsoft Archive, 2023.
INTRO CASE

− September 1984: New recipe Photo 1: Experimenting with liquids

− Before: Pepsi had beaten Coke by

anywhere from 10 to 15 points
Now: Coke beat Pepsi by as much
as 6 to 8 points
− April 23, 1985: New Coke was
released
"Changing Coke is like
− June: Boycott God making the grass
purple or putting toes on
our ears or teeth on our
knees."
.
Photo Source: Microsoft Archive, 2023.
INTRO CASE

What had gone wrong?

− Trusting surveys over focus groups
− Ignoring brand equity
− Brands are not just product names, but something more!

Update: 2003 Neuromarketing

− During consumption, brain activity was measured in an MRI scanner
− No brands: more brain activity in "reward center" for Pepsi, preference for Pepsi
− With brands: more brain activity when drinking Coca-Cola, preference for Coke
− Activity in the area in the brain that stands for the "self-image of the person“,
connecting the Coke brand to memories and impressions, self-esteem
Topic 1

UNIT 1
DEFINITIONS BRANDS/BRANDING
WHAT ARE BRANDS?

Why do we need branding?

− Stand out in buyers’ markets
− Form relationships with customers
WHAT ARE BRANDS?

What is a brand?
− Brand ≠ Product
− "name, term, design, symbol, or any other feature that identifies one
seller's good or service as distinct from those of other sellers.“ (AMA)
− “[…] a set of mental associations, held by the consumer, which add to
the perceived value of a product or service” (Keller, 1998)
− Intangible, conditional assets and primary measures of competitive
advantage (Aaker, 2012)
WHAT ARE BRANDS?

What is a global brand?

− Addresses similar consumer needs
− Multi-market reach and a geographical balance in sales
− Perceived as the same brand world-wide (name, logo,
positioning strategy)
− Awareness and acceptance in multiple regions of the world
− Centrally coordinated marketing strategies and programs
Topic 2

UNIT 1
BRAND EQUITY
BRAND EQUITY

What is brand equity?

Value for Consumers Value for Organization

Identify products  Create competitive advantage
 Reduce risk
Reduce risk & search costs
 Generate profit
Simplify purchasing decision
Add excitement
Signal hidden qualities

Brand equity is the added value endowed to a product.

BRAND EQUITY

Brand equity is a Brand Value

multidimensional construct! Net discounted
cashflow
attributable to the
brand
Brand Strength
(Market share, market
penetration, growth rate,
loyalty rate, price premium
etc.)

Brand Assets
(brand loyalty, brand awareness,
perceived quality, brand associations,
other proprietary brand assets)
Topic 3

UNIT 1
BRAND MANAGEMENT/ BRAND LEADERSHIP
BRAND MANAGEMENT/ BRAND LEADERSHIP

Brand

Economic
downturns
BRAND MANAGEMENT/ BRAND LEADERSHIP

Organi-
Identify and develop Brand zational
brand plans structures
Brand concept and
processes

Design and implement

brand marketing programs Brand- Brand
building
programs architecture

Measure and interpret

brand performance
− Brand leadership is more strategic and visionary.
− The goal is to build brand equity rather than just manage
brand images.
Grow and sustain brand
equity − Can encompass multiple products and markets and is
therefore more suited to an international business context.
Topic 4

UNIT 1
INTEGRATING MARKETING ACTIVITIES
INTEGRATINGMARKETING ACTIVITIES

Brand
name and
symbol

Brand
concept

Marketing Mix
SUMMARY

1. Brand management is crucial in today’s competitive markets.

2. Brand management is the act of creating marketing programs to
build strong brands.
3. All marketing activities should be integrated to generate brand
equity.
QUELLENVERZEICHNIS

Aaker, D. A. (2012). Win the brand relevance battle and then build competitor barriers. California Management Review, 54(2), 43–57.

AMA. (2013). Brand awareness: Experience, engage, and be “content.” AMA Marketing Watch. EBSCO Publishing Inc.

Keller, K. L. (1998). Strategic brand management: Building, measuring and managing brand equity. Hemel Hempstead: Prentice-Hall International.