MARKETING MANAGEMENT

CHAPTER 6b

BRAND BUILDING

Le Nguyen Hau
School of Industrial Management – HCMUT

2019
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CONTENT

1. Branding

2. Brand equity

3. Branding strategy

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I. BRANDING

A brand is “a name, term, sign, symbol, 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” (AMA)

 A brand differentiates it in some way from other products or

services designed to satisfy the same need.
 Differences may be functional, rational, or tangible (product
performance).
 Or more symbolic, emotional, or intangible (meanings in a
more abstract sense.

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 I. BRANDING
The Role of Brand:
For consumers:
 Set and fulfill expectations
 Reduce risk
 Simplify decision making
 Take on personal meaning
 Become part of identity
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For firms:
 Simplify product handling
 Organize inventory &
accounting
 Offer legal protection
 Create brand loyalty
 Secure competitive advantage.
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I. BRANDING
The advantages of strong brands
Improved perceptions of product Greater trade cooperation & support
performance
Greater loyalty Increased marketing communications
effectiveness
Less vulnerability to competitive Possible licensing opportunities
marketing actions
Less vulnerability to marketing crises Additional brand extension
opportunities
Larger margins Improved employee recruiting and
retention
More inelastic consumer response to Greater financial market returns
price increases
More elastic consumer response to
price decreases
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I. BRANDING
 Branding is the process of endowing products (services)
with the power of a brand.

 It’s all about creating differences between products.

 Tell consumers “who” the product is, by giving it a name

and other elements to identify it, and what the product
does and why consumers should care.

 Create consumer’s knowledge of products  ease their

decision making and eventually provides value to the firm.

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II. BRAND EQUITY

Brand equity is the additional value a product receives

from having a known brand.

 It is the price difference that a consumer pays when they

buy a branded product over a non-branded version of the
same product.

 Reflected in the way consumers think, feel, act with the

brand, and in the price, market share, and profitability it
commands (ie. differences in brand knowledge, perceptions,
preferences, and consumer response behavior).

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II. BRAND EQUITY

Therefore: A brand equity can be postive or negative

Positive when consumers react more favorably to a product

and the way it is marketed compared to when it is not identified.

Negative when consumers react less favorably to marketing

activity for the brand under the same circumstances.

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II. BRAND EQUITY

BRAND EQUITY MODELS:

 BrandAsset® Valuator (BAV) (by Young & Rubicam)

 Brandz (by Millward Brown and WPP)

 Brand Resonance Model (by Keller)

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II. BRAND EQUITY

Building brand equity: by creating the right brand

knowledge with right consumers.

Three main sets of brand equity drivers:

1. The initial choices for the brand elements (name, URL, logo,
symbol, character, slogan, jingle, package, signage).
2. The product + service + all related marketing activities.
3. Other associations indirectly transferred to the brand by
linking it to some other entity (person, place, thing).

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II. BRAND EQUITY

Choosing Brand elements:

 Brand elements (logo, slogan, name, etc) are devices, which

can be trademarked, that identify and differentiate the brand.

 Most strong brands employ multiple brand elements.

 The test is what consumers would think or feel about the

product if the brand element were all they knew.

Criteria to choose brand elements:

 Memorable, Meaningful, Likable.
 Transferable, Adaptable, Protectable

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II. BRAND EQUITY

Designing holistic marketing activities:

 Customers know a brand thru ads & other touch points: personal
observation/use, WOM, firm’s staff, online, etc.

  manage the experiences thru contacts that affect consumers’

knowledge, thinking, feeling, or acting toward the brand.

 May use other ways: online clubs, consumer communities, trade

shows, event marketing, sponsorship, factory visits, public relations
and press releases, and social marketing.

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III. BRANDING STRATEGY
Branding decisions - Three branding strategies:

Individual or separate family brand names (house of brands):

 Use different brand names for different products.
 The firm is not tied its reputation to the success/failure of a brand.

Corporate umbrella or company brand name (branded house):

 Use umbrella brand for entire range of products
 Lower costs for brand development
 Can lead to better firm’s intangible value
 Promising when having a flagship product or good firm’s name.
.
Sub-brand name:
 Combine the above.
 The corporate name legitimizes, individual name individualizes.
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III. BRANDING STRATEGY
Brand portfolio:

 The set of all brands / brand lines that a firm offers in a market.
 Multiple brands  multiple segments.
 Increasing shelf presence and retailer dependence in the store.
 Attracting consumers who seek variety.
 Increasing internal competition within the firm.
 Economies of scale in marketing activities.
 The principle is to maximize market coverage, but minimize overlap
 Each brand should be differentiated and appealing to a large-
enough segment to justify its marketing and production costs.
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 End of Ch.6b

Thanks for your attention !

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