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9
Creating Brand Equity
 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.

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9-2

The Role of Brands

Identify the maker

Simplify product handling

Organize accounting

Offer legal protection

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-3

The Role of Brands

Signify quality

Create barriers to entry

Serve as a competitive
advantage

Secure price premium

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-4

 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.

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9-5

 Advantages of Strong Brands

 Improved  Larger margins

perceptions of  More inelastic
product consumer response
performance  Greater trade
 Greater loyalty cooperation
 Less vulnerability to  Increased marketing
competitive communications
marketing actions effectiveness
 Less vulnerability to  Possible licensing
crises opportunities
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9-6
 Virgin Atlantic’s Brand Promise

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9-7

 What is a Brand Promise?

A brand promise is the marketer’s vision of

what the brand must be and do for consumers.

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9-8

 Brand Elements

Brand
names URLs

Slogans
Elements
Logos

Characters
Symbols

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-9

 Slogans

 Like a good  We try harder

neighbor, State  We’ll pick you up
Farm is there  Nextel – Done
 Just do it  Zoom Zoom
 Nothing runs like a  I’m lovin’ it
Deere
 Innovation at work
 Save 15% or more
in 15 minutes or  This Bud’s for you
less  Always low prices

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9-10

 Table 9.4
The 10 Most Valuable Brands

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 Brand Roles in a Brand Portfolio

Flankers Cash Cows

Low-end High-end
Entry-level Prestige

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-12

 Brand Extensions

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9-13