MARKETING MANAGEMENT

12th edition
9
Creating
Brand Equity

Kotler Keller
Chapter Questions
 What is a brand and how does branding
work?
 What is brand equity?
 How is brand equity built, measured, and
managed?
 What are the important decisions in
developing a branding strategy?

9-2
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 differentiate
them from those of competitors.

9-3
Attributes of Strong Brands
 Excels at delivering  Well-designed brand
desired benefits hierarchy
 Stays relevant  Uses multiple marketing
 Priced to meet activities
perceptions of value  Understands consumer-
brand relationship
 Positioned properly
 Supported by organization
 Communicates
consistent brand
 Monitors sources of brand
equity
messages

9-4
The Role of Brands
 Identify the maker  Signify quality
 Simplify product  Create barriers to
handling entry
 Organize accounting  Serve as a
 Offer legal protection competitive
advantage
 Secure price premium

9-5
Branding

Endowing products and services

with the power of a brand.

9-6
Brand Equity

The differential effect that brand

knowledge has on consumer
response to the
marketing of that brand.

9-7
Brand Associations
 Strong
 Unique
 Favorable

9-8
Marketing Advantages of Strong Brands
 Improved perceptions of
product performance
 Greater loyalty
 Less vulnerable to
competition
 Less vulnerable to crises
 Larger margins
 Inelastic consumer
response to price increases
 Elastic consumer
response to price
decreases
 Greater trade cooperation
 Increase in effectiveness
of IMC
 Licensing opportunities
 Brand extension
opportunities
9-9
Brand Promise

The marketer’s vision of what

the brand must be and do for
Consumers.

9-10
Brand Equity Models

 Brand Asset Valuator

 Aaker Model
 BRANDZ
 Brand Resonance

9-11
Drivers of Brand Equity
 Brand elements
 Marketing activities
 Meaning transference

9-12
Brand Elements
 Brand names  URLs
 Slogans  Logos
 Characters  Symbols

9-13
Brand Element Choice Criteria

 Memorable  Transferable
 Meaningful  Adaptable
 Likeability  Protectible

9-14
Slogans
 Like a good neighbor,
State Farm is there
 Just do it
 Nothing runs like a
Deere
 Help is just around the
corner
 Save 15% or more in 15
minutes or less
 We try harder
 We’ll pick you up
 Nextel – Done
 Zoom Zoom
 I’m lovin’ it
 Innovation at work
 This Bud’s for you
 Always low prices
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Measuring Brand Equity
 Brand audits
 Brand tracking
 Brand valuation

9-16
Interbrand’s Brand Equity
Formula
 Brand earnings  Brand strength
 Brand sales  Leadership (25%)
 Costs of sales  Stability (15%)
 Market (10%)
 Marketing costs
 Geographic spread (25%)
 Overhead expenses
 Trend (10%)
 Remuneration of  Support (10%)
capital charge
 Protection (5%)
 Taxation

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Managing Brand Equity
 Brand reinforcement
 Brand revitalization
 Brand crises

9-18
Devising a Branding Strategy
 Develop new brand elements
 Apply existing brand elements
 Use a combination of old and new

9-19
Branding Terms
 Brand line  Line extension
 Brand mix  Category extension
 Brand extension  Branded variants
 Sub-brand  Licensed product
 Parent brand  Brand dilution
 Family brand  Brand portfolio

9-20
Brand Naming

 Individual names
 Blanket family names
 Separate family names
 Corporate name/individual name combo

9-21
Brand Roles in a Brand Portfolio

 Flankers
 Cash cows
 Low-end entry-level
 High-end prestige

9-22