LECTURE-1, 2 ,& 3

COURSE INSTRUCTOR : Ms. Rizwana Hameed

Creating
Brand Equity & Crafting
Brand Positioning
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?
Steps in Strategic Brand Management

• Identifying and establishing brand positioning.

• Planning and implementing brand marketing.

• Measuring and interpreting brand performance.

• Growing and sustaining brand value.

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.
What is Branding?

Branding is endowing products and services

with the power of the brand.
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.
The Role of Brands
• Identify the maker
• Simplify product handling
• Organize accounting
• Offer legal protection
• Signify quality
• Create barriers to entry
• Serve as a competitive advantage
• Secure price premium
Advantages of Strong Brands
• Improved • Larger margins
perceptions of • More inelastic
product consumer response
performance
• Greater trade
• Greater loyalty cooperation
• Less vulnerability • Increased marketing
to competitive communications
marketing actions effectiveness
• Less vulnerability • Possible licensing
to crises opportunities
What is a Brand Promise?

A brand promise is the marketer’s vision of what

the brand must be and do for consumers.
Brand Equity Models

• Brand Asset Valuator

• Aaker Model
• BRANDZ
• Brand Resonance/Keller Model
Brand Asset Valuator (BAV)

Advertising agency Young and Rubicam (Y & R)

developed a model of brand equity called Brand
Asset Valuator (BAV)
BAV Key Components

• Energized differentiation---- measures the degree to

which a brand is seen as different from others, and its
perceived momentum and leadership.
• Relevance--- measures the appropriateness and breadth
of a brand’s appeal.
• Energized differentiation +Relevance= Brand Strength
• Esteem--- measures perceptions of quality and loyalty, or
how well the brand is regarded and respected.
• Knowledge--- measures how aware and familiar
consumers are with the brand.
• Esteem+ Knowledge=Brand Stature
BAV Key Components…
Aaker Model

• Brand identity
• The unique set of brand associations.
• Core identity elements
• Typically 8-10 elements that represent concepts.
• Extended identity elements
• Add texture & guidance.
• Brand essence
• Brand identity in a compact & inspiring way.
BRANDZ
• Marketing research consultants Millward Brown and WPP have
developed the BrandZ model of brand strength, at the heart of
which is the Brand Dynamics pyramid.
• Presence. Active familiarity based on past trial,saliency,or
knowledge of brand promise.
• Relevance. Relevance to consumer’s needs,in the right price
range or in the consideration set.
• Performance. Belief that it delivers acceptable product
performance and is on the consumer’s short-list • Advantage. Belief
that the brand has an emotional or rational advantage over other
brands in the category .
• Bonding. Rational and emotional attachments to the brand to the
exclusion of most other brands.
BRANDZ
Brand Resonance Model/Keller Model
Brand Resonance Model/Keller Model
Brand salience is how often and how easily customers think of the
brand under various purchase or consumption situations.
Brand performance is how well the product or service meets
customers 'functional needs.
Brand imagery describes the extrinsic properties of the product or
service, including the ways in which the brand attempts to meet
customers 'psychological or social needs.
Brand judgments focus on customers’ own personal opinions and
evaluations.
Brand feelings are customers’ emotional responses and reactions
with respect to the brand.
Brand resonance describes the relationship customers have with
the brand and the extent to which they feel they’re “in sync "with it.
Drivers of Brand Equity

• Brand elements
• Designing Holistic Marketing activities
• Meaning transference
Brand Elements

These are those trademarkable devices that identify &

differentiate the brand.

Brand names

Characters Symbols

Logos

Slogans

URLs
BRAND LOGO
BRAND CHARACTERS
BRAND SYMBOL
Slogans
• Like a good neighbor,
State Farm is there
• Just do it
• Nothing runs like a
Deere
• I’m lovin’ it
• We try harder
• Always low prices
Brand Element Choice Criteria

• Memorable
• Meaningful
• Likeability
• Transferable
• Adaptable
• Protectible
Designing Holistic Marketing Activities

• Personalization
• Integration
• Internalization
Internal Branding

• Choose the right moment

• Link internal and external marketing
• Bring the brand alive for employees
Measuring Brand Equity

• Brand audits
• A consumer focused series of procedures to
assess the health of the brand (Equity)
• Brand tracking
• Quantitative data from consumers on a routine
basis over time.
• Brand valuation
• Total financial value of the brand.
Measuring Brand Equity
The 10 Most Valuable Brands

Brand Brand Value (Billions)

Coca-Cola $67.00
Microsoft $56.93
IBM $56.20
GE $48.91
Intel $38.32
Nokia $30.13
Toyota $27.94
Disney $27.85
McDonald’s $27.50
Mercedes-Benz $22.13
Managing Brand Equity
• Brand reinforcement
• Marketers can reinforce brand equity by consistently conveying the brand’s
meaning in terms of
• (1) what products it represents, what core benefits it supplies, and what
needs it satisfies; and
• (2) how the brand makes products superior, and which strong,favorable,and
unique brand associations should exist in consumers 'minds

• Brand revitalization
• Often, the first thing to do in revitalizing a brand is to understand what the
sources of brand equity were to begin with. Are positive associations losing
their strength or uniqueness? Have negative associations become linked to
the brand? Then decide whether to retain the same positioning or create a
new one, and if so, which new one.

• Brand Crisis
Managing Brand Equity
Devising a Branding Strategy

• Develop new brand elements

• Apply existing brand elements
• Use a combination of old and new
Individuals Tasks …

Are Brand Extensions Good or Bad? Some critics vigorously

denounce the practice of brand extensions, because they feel that too
often companies lose focus and consumers become confused. Other
experts maintain that brand extensions are a critical growth strategy and
source of revenue for the firm.

•Take a position:
• Brand extensions can endanger brands. (Sec B-Boys)
OR
• Brand extensions are an important brand-growth strategy. (Sec
C-Boys)
 Branding Terms
• Brand line • Line extension
• All products • New product with in a
product category
• Brand mix
• Set of all brand lines • Category extension
• Brand extension • Branded variants
• Introduce a new product
• Sub-brand
• Brand extension can also called
sub- brand

• Parent brand e.g Lifebuoy

• Family brand e.g Honda
Brand Roles in a Brand Portfolio
• Flankers
• Cash cows
• Low-end entry-level
• High-end prestige
Crafting Brand Positioning Task
Note : All students of respective sections(A,B,C,D) in
their group formation would attempt this task and
compile & submit report for the following five
statements.
•1. How can a firm develop and establish an effective positioning
in the market?
•2. How do marketers identify and analyze competition?
•3. How are brands successfully differentiated?
•4. What are the differences in positioning and branding with a
small business?
•5. What is your favorite TV ads? Why? How effective are the
message and creative strategies? How is it creating consumer
preference and loyalty and building brand equity?
Case Study Discussion (Girls)
Case Study Discussion (Boys)

McDonalds ……….

Note: Reding time is 15-20min

only
"Success doesn't come to you,
you go to it."
Marva Collins