CHAPTER 15:

CLOSING OBSERVATIONS

Kevin Lane Keller

Tuck School of Business
Dartmouth College

15.1
 Brand Knowledge Structure

 Brand awareness, depth, and breadth

 Brand associations

15.2
Summary of Customer-Based Brand
Equity Framework
 Sources of brand equity
 Strength
 Favorability
 Uniqueness
 Outcomes of brand equity
 Greater loyalty
 Less vulnerability to competitive marketing actions
 Less vulnerability to marketing crises
 Larger margins
 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
15.3
 Tactical Guidelines
 Building brand equity
1. Through the initial choice of the brand elements
making up the brand
2. Through marketing activities and the design of the
marketing program
3. Through the leverage of secondary associations
that link the brand to other entities

15.4
Guidelines for Building Brand Equity
 Mix and match brand elements
 Create a rich brand image and high perceived
quality
 Adopt value-based pricing strategy

 Consider a range of distribution options

 Mix marketing communication options

 Leverage secondary associations

15.5
Importance of Complementarity and
Consistency

 Complementarity means choosing different brand

elements and supporting marketing activities so that
the potential contribution to brand equity of one
compensates for the shortcomings of others.
 A high degree of consistencyacross these elements helps
to create the highest level of awareness and the
strongest and most favorable associations possible.

15.6
Guidelines for Measuring Brand Equity
 Formalize the firm’s view of brand equity
 Conduct brand inventories
 Conduct consumer tracking studies
 Assemble results of outcome measures

 Establish a department to oversee the

implementation

15.7
Guidelines for Managing Brand Equity
 Define brand hierarchy
 Create global associations

 Introduce brand extensions

 Clearly establish the roles of brands in the

portfolio
 Reinforce brand equity over time
 Enhance brand equity over time

 Identify differences in consumer behavior in

different market segments

15.8
 Characteristics of Strong Brands
Managers
 Understand brand meaning and market appropriate products in an
appropriate manner
 Properly position the brand
 Provide superior delivery of desired benefits
 Employ a full range of complementary brand elements and
supporting marketing activities
 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
 Maintain innovation and relevance for the brand
 Strategically design and implement a brand hierarchy and brand
portfolio
 Implement a brand equity management system to ensure that
marketing actions properly reflect the brand equity1cc5o.n9cept
Seven Deadly Sins of Brand Management
1. Failure to understand the full meaning of the
brand
2. Failure to live up to the brand promise
3. Failure to adequately support the brand
4. Failure to be patient with the brand
5. Failure to adequately control the brand
6. Failure to properly balance consistency and
change with the brand
7. Failure to understand complexity of brand
equity measurement and management
15.10
 Industrial and B2B Branding
 Adopt a corporate or family branding strategy
 Link non-product-related imagery associations

 Employ full range of marketing communication

options
 Leverage equity of other companies that are
customers
 Segment markets carefully and develop tailored
branding and marketing programs

15.11
 Guidelines for High-Tech Branding
 Establish brand awareness and rich brand image
 Create corporate credibility associations

 Leverage secondary associations of quality

 Avoid overbranding products

 Selectively introduce new products as new

brands and clearly identify the nature of brand
extensions

15.12
 Guidelines for Service Branding
 Maximize service quality
 Employ a full range of brand elements to enhance
brand recall
 Create and communicate strong organizational
associations
 Design corporate communication programs that
augment consumers’ service encounters and
experiences
 Establish a brand hierarchy using distinct family or
individual brands as well as meaningful ingredient
brands
15.13
 Guidelines for Branding Retailers
 Create a brand hierarchy consisting of the store
as a whole as well as individual departments
 Enhance the manufacturer’s brand equity by
communicating PODs
 Establish brand equity at all levels of the brand
hierarchy
 Create multichannel shopping experience

 Avoid overbranding

15.14
Guidelines for Small Business Branding
 Emphasize building one or two strong brands
 Focus the marketing program on one or two key
associations
 Employ a well-integrated set of brand elements that
enhances both brand awareness and image
 Design creative brand-building push campaigns

 Leverage as many secondary associations as

possible

15.15
 Guidelines for Online Branding
 Don’t forget the brand building basics
 Create strong brand identity

 Generate strong consumer pull

 Selectively choose brand partnerships

 Maximize relationship marketing

15.16
 Future Brand Priorities
How will branding change in the coming years?
What are the biggest branding challenges? What
will make a successful “twenty-first-century
brand”?

15.17
 Building Brand Equity
 Brand elements
 In a cluttered, competitive marketplace, the brand
elements that make up the brand will have to do
more and more of the selling job.
 Marketing programs
 Strong brands in the twenty-first century also will
rise above others by better understanding the needs,
wants, and desires of consumers and creating
marketing programs that fulfill and even surpass
consumer expectations.

15.18
 Measuring Brand Equity
Marketers of successful twenty-first-century
brands will create formalized measurement
approaches and processes that ensure they
continually monitor their sources of brand
equity and those of competitors.

15.19
 Managing Brand Equity
 It will be essential in building strong twenty-first-
century brands to align internal and external brand
management.
 Internal brand management ensures that employees and
marketing partners appreciate and understand basic branding
notions and how they can affect the equity of brands.
 External brand management requires understanding the needs,
wants, and desires of consumers and creating brand
marketing programs that fulfill and even surpass consumer
expectations.
 Companies must also align bottom-up and top-down
marketing management .

15.20
 Achieving Marketing Balance
 The most fundamental challenge of marketing
and brand management is reconciling the many
potential trade-offs in marketing decisions
 There are three means or levels of achieving
marketing balance, in increasing order of
potential effectiveness:
 Alternate
 Divide
 Finesse

15.21