Creating Brand Equity

Contains hidden slides to be readCreating Brand Equity

Chapter Questions 10-2What 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?

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Kerala Tourism has successfully branded the destination with a brand name, logo, and the tagline Gods Own Country 10-3

Steps in Strategic Brand Management 10-4Identifying and establishing brand positioningPlanning and implementing brand marketingMeasuring and interpreting brand performanceGrowing and sustaining brand value

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What is a Brand? 10-5A 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.

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The Role of Brands 10-6

Identify the makerSimplify product handlingOrganize accountingOffer legal protection

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The Role of Brands 10-7

Signify qualityCreate barriers to entryServe as a competitive advantageSecure price premium

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What is Branding? 10-8Branding is endowing products and services with the power of the brand.

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What is Brand Equity? 10-9Brand 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.

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Brand Knowledge 10-10KnowledgeThoughtsExperiencesBeliefsImagesFeelings

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Advantages of Strong Brands 10-11Improved perceptions of product performanceGreater loyaltyLess vulnerability to competitive marketing actionsLess vulnerability to crisesLarger marginsMore inelastic consumer response more loyaltyIncreased marketing communications effectiveness

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Apple is a Strong Brand 10-12

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What is a Brand Promise? 10-13A brand promise is the marketers vision of what the brand must be and do for consumers.

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Brand Equity Models -vvv imp! 10-14

Brand Asset ValuatorAaker ModelBRANDZBrand Resonance

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BAV Key Components 10-15DifferentiationEnergyRelevanceEsteemKnowledge

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Figure 10.3 Brand Dynamics Pyramid 10-16PresenceRelevancePerformanceAdvantageBonding

Strong RelationshipWeak Relationship

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Aaker Model 10-17Brand IdentityExtended Identity ElementsBrand EssenceCore IdentityElements

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Figure 10.3 Brand Resonance Pyramid 10-18

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Brand Elements 10-19ElementsSlogansBrandnamesURLsLogosSymbolsCharacters

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Brand Element Choice Criteria

MemorableMeaningfulLikeabilityTransferableAdaptableProtectible

10-20

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Slogans 10-21Like a good neighbor, State Farm is thereJust do itNothing runs like a DeereSave 15% or more in 15 minutes or lessWe try harderWell pick you upNextel DoneZoom ZoomIm lovin itInnovation at workThis Buds for youAlways low prices

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Designing Holistic Marketing Activities 10-22

PersonalizationIntegrationInternalization

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Internal Branding 10-23Choose the right momentLink internal and external marketingBring the brand alive for employees

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Figure 10.4 Secondary Sources of Brand Knowledge 10-24

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Measuring Brand Equity 10-25

Brand AuditsBrand TrackingBrand Valuation

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Table 10.2 The 10 Most Valuable Brands 10-26Brand2006 Brand Value (Billions)Coca-Cola$67.00Microsoft$56.93IBM$56.20GE$48.91Intel$38.32Nokia$30.13Toyota$27.94Disney$27.85McDonalds$27.50Mercedes-Benz$22.13

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Managing Brand Equity 10-27

Brand ReinforcementBrand RevitalizationBrand Crises

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Interbrands Steps in Calculating Brand Equity 10-28Market segmentationFinancial analysisRole of brandingBrand strengthBrand value calculation

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Devising a Branding Strategy 10-29

Develop new brand elementsApply existing brand elementsUse a combination of old and new

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Branding Terms 10-30Brand lineBrand mixBrand extensionSub-brandParent brandFamily brandLine extensionCategory extensionBranded variantsLicensed productBrand dilutionBrand portfolio

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Brand Naming 10-31

Individual namesBlanket family namesSeparate family namesCorporate name-individual name combo

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Reasons for Brand Portfolios 10-32Increasing shelf presence and retailer dependence in the storeAttracting consumers seeking varietyIncreasing internal competition within the firmYielding economies of scale in advertising, sales, merchandising, and distribution

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Brand Roles in a Brand Portfolio 10-33FlankersLow-endEntry-levelHigh-endPrestigeCash Cows

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Marketing Debate 10-34Are brand extensions good or bad?

Take a position:Brand extensions can endanger brands.

or

2. Brand extensions are an important brand-growth strategy.

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Marketing Discussion 10-35How can you relate the different modelsbrand equity presented in this chapter?How are they similar? Different?Can you reconstruct a brand-equity Model that incorporates the best of each?

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Crafting the Brand Positioning

. 11-37Chapter QuestionsHow can a firm choose and communicate an effective positioning in the market?How are brands differentiated?What marketing strategies are appropriate at each stage of the product life cycle?What are the implications of market evolution for marketing strategies?

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. 11-38Positioning of Caf Coffee Day

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. 11-39What is Positioning?Positioning is the act of designing the companys offering and image to occupy a distinctive place in the mind of the target market.

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. 11-40Value PropositionsScorpio, Mahindra and MahindraA vehicle that provides the luxury and comfort of a car, and the adventure and thrills of an SUV DominosA good hot pizza, delivered to your door within 30 minutes of ordering, at a moderate price

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. 11-41Defining AssociationsPoints-of-difference (PODs)Attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brandPoints-of-parity(POPs)Associations that are not necessarily unique to the brand but may be shared with other brands

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. 11-42Establishing Category MembershipThis four-in-one entertainment solution from Konica failed to establish category membership

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. 11-43Conveying Category Membership

Announcing category benefitsComparing to exemplarsRelying on the product descriptor

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. 11-44Consumer Desirability Criteria for PODs

RelevanceDistinctivenessBelievability

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. 11-45Deliverability Criteria for PODs

FeasibilityCommunicabilitySustainability

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. 11-46Examples of Negatively Correlated Attributes and BenefitsLow-price vs. High qualityTaste vs. Low caloriesNutritious vs. Good tastingEfficacious vs. MildPowerful vs. SafeStrong vs. RefinedUbiquitous vs. ExclusiveVaried vs. Simple

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. 11-47Addressing negatively correlated PODs and POPsPresent separatelyLeverage equity of another entityRedefine the relationship

. 11-48Differentiation StrategiesProductChannelImagePersonnel

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. 11-49Marketing DebateDo brands have finite lives?

Take a position:Brands cannot be expected to last forever.

or

2. There is no reason for a brand to ever become obsolete.

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. 11-50Marketing DiscussionWhat strategies do firms use totry to position themselves on thebasis of pairs of attributes andbenefits?

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