Lecture 1 - Student Handout

Lecture 1

Brand Equity and Brand Elements

Dr. Lucy [email protected]

Agenda• Week Overview

– Monday + Tuesday: Branding– Wednesday + Thursday : Marketing Communication – Coursework

• What is a Brand?– Brand Concept– Brand Elements

• What is a strong Brand?– Brand Equity– Sources of Brand Equity

Week Overview

Week OverviewMon

10th MayTue

11th MayWed

12th MayThur

13th May8:30-9:159:25-10:10 Introduction

of BrandingBrand Extensions

Integrated Marketing Communication

Personal Selling and PR

10:30-11:1511:25-12:10

Brand Positioning

Global BrandDiscussion1

MarCom Psychology

Ethics and Marketing

14:00-14:4514:55-15:40

Brand Strategy

E-MarComAdvertising

Other Tools andDiscussion2

Discussion 1

• Choose two of your favourite fashion brands in China: one locally from China and one from abroad.

– Who are their target markets?– What are their products?– What are their main points of parity and points

of difference?– Do you agree with their positioning strategy?– How might the strategies be improved in your

opinion?

Discussion 2• Choose two of your favourite fashion

brands in China: one locally from China and one from abroad.

– What media do they choose to communicate with their target markets?

– How do they use Internet as a tool? – What are the messages they intend to deliver? – Does the messages correspond to the brand

images?– How might the strategies be improved in your

opinion?

What is a Brand?

A brand is a “name, term, sign, symbol, name, term, sign, symbol, or design, or a combinationor design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition.

--American Marketing Associations (1992)

www.marketingpower.com

Brand Elements

• Basic elements include…

– Brand Name – Logos and Symbols

Keller (2008) Chapter 4

Brand Elements


– Web address

– Characters

www.wellbeing.comwww.diy.com


Brand Elements


– Packaging

– Music

– Slogans


www.thedieline.com

Putting it all together…

• Brand Identity

The common element sending a single message amid the wide variety of its products, actions and communications

Kapferer (2007)

6 Facets of Brand Identity

Personality

Culture

Self-ImageReflection

Relationship

Physique

Kapferer (2007)

Inte

rnal

isat

ion

Ext

erna

lisat

ion

Sender

Receiver

What is a strong Brand?

The result of a strong brand is that customers’ willingness to buy one brand is more than its competitors

Brand Equity

• Does a brand worth a penny?

– Brands have financial value because they have created assets in the minds and hearts of customer, distributors, prescribers and opinion leaders.

Kapferer (2007)

Brand Equity

• Customer-Based Brand Equity (CBBE)

– It is the differential effect that brand knowledge has on consumer response to the marketing of that brand

– A positive CBBE means customer might be more accepting to the marketing activities (ie. the marketing mix) for a brand

Keller (2008) & Keller (1993), “Conceptualizing, Measuring and Managing Customer-Based Brand Equity,” Journal of Marketing, 57(1), pp. 1-29

Sources of Brand Equity

CBBE

Brand Awareness Brand Association



CBBE


Brand Recall Brand Recognition


Sources of Brand Equity• Brand Recall

– Consumers’ ability to retrieve the brand from memory when given the product category, the needs fulfilled by the category, or a purchase or usage situation as a cue

• Brand Recognition

– Consumers’ ability to confirm prior exposure to the brand when given the brand as a cue



• How people process information?

– When decisions are made at the point of purchase, where brand name, logo, packaging, and so on will be physically present and visible, brand recognition would be important

– When decision are made in settings away from the point of purchase, brand recall would be more important


• How to increase Brand Awareness?

– Repeated exposure to increase familiarity

– Strong association with appropriate product category or relevant purchase or consumption cue

Alba and Hutchinson, (1987), “Dimensions of Consumer Expertise,” Journal of Consumer Research, 13(4), pp. 411-453


CBBE


Strength Favourability Uniqueness



• Strength

– Personal Relevance of the brand and the Consistency with which the brand is presented over time can strengthen the brand association.


• Favourability

– Favourable association for a brand are those associations that are desirable to consumers, successfully delivered by the product, and conveyed by the supporting marketing program


• Uniqueness

– The uniqueness of the brand gives consumers a compelling reason why they should prefer this brand than the others


• How to create Brand Association ?

– Brand positioning strategy which give unique, meaningful points of differences to the brand to provide a competitive advantage and a reason why consumers should buy

Lecture 1 - Student Handout

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