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Chapter 9 - Creating Brand Equity

This document discusses key concepts related to branding, including definitions of a brand and brand equity. It also summarizes several models of measuring brand equity, such as brand asset valuing, the Aaker model, and brand resonance pyramid. The role of brands in simplifying products and creating legal protection and competitive advantage is outlined. Steps in strategic brand management like positioning and measuring performance are also summarized.

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420 views

Chapter 9 - Creating Brand Equity

This document discusses key concepts related to branding, including definitions of a brand and brand equity. It also summarizes several models of measuring brand equity, such as brand asset valuing, the Aaker model, and brand resonance pyramid. The role of brands in simplifying products and creating legal protection and competitive advantage is outlined. Steps in strategic brand management like positioning and measuring performance are also summarized.

Uploaded by

rabeeka7
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Lecturer: Ambreen Bashir

Institute of Business Management


Karachi

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?

ESPN: A Strong Brand

What is a Brand

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.
Goods????
Person????
Organization???
Place???
Idea???
Service????

Branding:
Endowing products and services with the power of the brand

Buyers viewpoint
Gives personality
Helps find products
with desired benefits
Aids repeat purchase
Suggests quality of
product

Sellers viewpoint
Basis of product
story
Gives legal
protection
Helps in segmenting
markets
Symbol of ongoing
promise

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

The Role of Brands


Identify the maker
Simplify product handling
Organize accounting

Offer legal protection

The Role of Brands


Signify quality
Create barriers to entry

Serve as a competitive
advantage
Secure price premium

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.
Customer-based brand equity- the differential effect
that brand knowledge has on consumer response to
marketing of that brand; can be positive or negative.
There are 3 key points regarding customer based
brand equity:

Customer-based brand equity


Brand equity is based on differences in consumer

response- otherwise?????????
These differences in response are due to consumers
knowledge about the brand (brand associations)
This differential response is reflected in perceptions,
preferences and behavior related to all aspects of
marketing of a brand

Brand Knowledge
Thoughts

Feelings
Knowledge
Images

Beliefs

Experiences

Advantages of Strong Brands


Improved perceptions Larger margins
of product
More inelastic

performance
Greater loyalty
Less vulnerability to
competitive
marketing actions
Less vulnerability to
crises

consumer response
Greater trade
cooperation
Increased marketing
communications
effectiveness
Possible licensing
opportunities

Apple is a Strong Brand

What is a Brand Promise?


A brand promise is the marketers vision of what the
brand must be and do for consumers.

Burger King Builds Its Brand with Social


Connectivity

Brand Equity Models


Brand Asset Valuator
Aaker Model
BRANDZ

Brand Resonance

BAV Key Components


Differentiation
Energy

Relevance
Esteem
Knowledge

Figure 9.3 Brand Dynamics Pyramid


Strong Relationship

Bonding
Advantage

Performance
Relevance

Presence
Weak Relationship

Aaker Model
Brand Identity

Core Identity
Elements

Extended Identity
Elements

Brand Essence

Figure 9.4 Brand Resonance Pyramid

Drivers of Brand Equity

Brand Elements
Marketing Activities

Meaning Transference

Brand Elements
Brand
names
Slogans

URLs

Elements
Logos

Characters

Symbols

Brand Element Choice Criteria


Memorable
Meaningful
Likeability

Transferable
Adaptable
Protectible

Slogans
Like a good neighbor,

We try harder

State Farm is there


Just do it
Nothing runs like a
Deere
Save 15% or more in 15
minutes or less

Well pick you up

Nextel Done
Zoom Zoom
Im lovin it
Innovation at work
This Buds for you
Always low prices

Designing Holistic Marketing Activities

Personalization

Integration

Internalization

Internal Branding
Choose the right moment
Link internal and external marketing
Bring the brand alive for employees

Figure 9.5 Secondary Sources of


Brand Knowledge

Measuring Brand Equity


Brand Audits

Brand Tracking

Brand Valuation

Table 9.2 The 10 Most Valuable Brands


Brand

2006 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

McDonalds

$27.50

Mercedes-Benz

$22.13

Managing Brand Equity


Brand Reinforcement

Brand Revitalization

Brand Crises

Interbrands Steps in Calculating Brand Equity


Market segmentation
Financial analysis
Role of branding
Brand strength

Brand value calculation

Devising a Branding Strategy


Develop new brand
elements
Apply existing brand
elements
Use a combination of
old and new

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

Brand Naming
Individual names
Blanket family names
Separate family names

Corporate nameindividual name combo

Reasons for Brand Portfolios


Increasing shelf presence and retailer dependence in

the store
Attracting consumers seeking variety
Increasing internal competition within the firm
Yielding economies of scale in advertising, sales,
merchandising, and distribution

Brand Roles in a Brand Portfolio


Flankers

Cash Cows

Low-end
Entry-level

High-end
Prestige

Marketing Debate
Are brand extensions good or bad?
Take a position:
1. Brand extensions can endanger brands.
or
2. Brand extensions are an important
brand-growth strategy.

Marketing Discussion
How can you relate the different models
brand 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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