Strategic brand management by kevin lane keller

STRATEGIC BRAND MANAGEMENT
BUILDING, MEASURING, AND MANAGING
BRAND EQUITY
Kevin Lane Keller
Collected by: Ileush Cornell, Brand Strategist, Bangladesh, Blog: www.ileush.blogspot.com
1

What is a Brand?
American Marketing Association’s definition
A brand is a name, term, sign, symbol, or design which is
intended to identify the goods or services of one seller or
group of sellers and to differentiate them from those of
competitors.
• Attributes that identify the brand are called – Brand
Elements (based on people, place, objects, animals, etc.)
• Practicing managers define brands as more than that.
This distinction is important since it can lead to confusion.
2

What is a Brand?
Brand versus Product –
Product – is anything that can be offered to a market
for attention, acquisition, use or consumption that
may satisfy a need or a want (goods, services,
retail store, person, organization, idea)
• Kotler defines 5 levels of a product
1. Core benefit level – fundamental need or want that
is satisfied
2. Generic product level – basic version – attributes
necessary for functioning (stripped down level)
3. Expected product level – what customer’s
normally expect
4. Augmented product level – additional attributes,
benefits that distinguish it from competition
5. Potential product level – all transformation that it
might undergo in the future

What is a Brand?
A Brand is therefore a Product – that also has dimensions that
differentiates it from other products designed to satisfy the
same need (competition)
• Differences may be -
• Rational and tangible – related to product performance
(3M, Sony, Gillette)
• Symbolic, emotional, intangible – related to what the
brand represents (Coca Cola, Calvin Kline, Marlboro)
• What distinguishes a brand from a commodity gives it
equity - the sum total of consumer perceptions and
feelings about how it performs (3M, Sony, Gillette)
• The name and what it stands for
• The company associated with the brand

New Concept of Brand Equity (BE)
BE is defined differently by many but there is
a point of consensus. It is agreed that -
• BE relates to marketing effects that are
uniquely attributable to the brand
• BE relates to the fact that different outcomes
result in the marketing of a product or service
because of its brand name, as compared to if
the same product or service did not have that
name.
• BE concept in marketing - stresses the
importance of the brand in marketing
strategies.

New Concept of Brand Equity
There is also agreement about - Branding is about
creating differences
• Differences in outcome - arise from ‘added value’
endowed to a product as a result of past marketing
activities for the brand
• This value can be created for a brand in many ways
• Brand value can be exploited to benefit of the firm in
many different ways
• BE provides the common denominator for
interpreting marketing strategies and assessing the
value of the brand

Why Brands Matters?
Brand Value created translates to financial profits for the firm as:
• Creates perceived differences through branding
• Develops a loyal consumer franchise
The brand is an intangible valued asset that needs to be handled
carefully.

Why Brands Matter
• Customers
• Risk reducer
• Search cost reducer
• Signal of quality
• Symbolic device for self expression
• Promise, bond, pact, with maker of the product
• Means of identification of source of product for assignment of responsibility to product
maker
• Manufacturer
• Means of identification for handling, tracing
• Signal of quality level to satisfied customers
• Competitive advantage
• Financial return
• Legal protection of unique features

Why Brands Matter
• It creates a relationship between brand and consumer
• a bond / pact. trust and loyalty and in return …….
• expect consistent product performance, appropriate price, distribution and
other actions
• Brands take on a special meaning and change the experience and
perception of a product that leads to greater satisfaction
• Customers with past experience learn more about the brand
• The advantages
• Lowers search cost internally and externally
• The value may not be only functional in nature
• They are symbolic devices allowing them to project their self image
• Extremely important with credence goods to signal quality
• Brands reduce risk particularly in BtoB settings

Benefits of Customer-Based Brand Equity
• Branding is a powerful means of securing a competitive advantage
• Brand experience can last for years and cannot be duplicated
• Enjoy greater brand loyalty, usage, and affinity
• Predictability and security of demand
• Command larger price premiums on a regular basis, also
during A&Ms
• Creates entry barriers for others
• Receive greater trade cooperation & support
• Increase marketing communication effectiveness
• Yield licensing opportunities
• Support brand extensions
10

Anything Can Be Branded
Branding is possible for -
• B to B products
• High-tech products
• Services
• Retailers and Distributors
• Online products and services
• People and Organizations
• Sports
• Arts, Entertainment
• Geographic location
• Ideas and causes

Anything Can Be Branded
To brand a product what needs to be done is -
Consumer has to be
• Taught to identify the brand – label, name and other elements
• Learn the brand meaning - functional, emotional and symbolical
• Know the brand difference from other similar product brands
(performance / image and non-product related considerations)
Commodities have been branded – atta, salt

Determinants of Customer-Based Brand Equity
• Customer is aware of and familiar with the brand
• Customer holds some strong, favorable, and unique brand
associations in memory
13

The Concept of CBBE and Marketing
• Customer-based brand equity - creates
• Differential effect of brand because of …
• Customer brand knowledge…which generates
• Customer response to brand marketing
14

Brand Equity and Marketing Management
• BE concept stresses - importance of the brand in
marketing strategies
• BE is defined in terms of the marketing effects uniquely
attributable to the brand.
• Brand equity relates to the fact that different outcomes
result in the marketing of a product or service because
of its brand name, as compared to if the same product
or service did not have that name.
15

Building Customer-Based Brand Equity
• Brand knowledge structures depend on . . .
• The initial choices for the brand elements
• The supporting marketing program and the manner by which
the brand is integrated into it
• Other associations indirectly transferred to the brand by linking
it to some other entities
16

The Key to Successful Branding
For branding strategies to be successful –
• Consumers must be convinced that there are meaningful
differences among brands
• Consumer must not think that all brands in the category are the
same.
PERCEPTION = VALUE
17

Customer-Based Brand Equity as a “Bridge”
• CBBE represents the “added value” endowed to a
product as a result of past investments in the
marketing of a brand.
• CBBE therefore provides direction and focus to
future marketing activities
18

Strategic Brand Management
• Strategic brand management involves design and
implementation of marketing programs and activities
• to build,
• measure,
• manage BE
• Strategic brand management process involves four
main steps:
1) Identify and establish brand positioning and values
2) Plan and implement brand marketing programs
3) Measure and interpret brand performance
4) Grow and sustain BE
19

STEPS KEY CONCEPTS
Identify and Establish
Brand Positioning and Values
Plan and Implement
Brand Marketing Programs
Measure and Interpret
Brand Performance
20
Strategic Brand Management Process
Mental maps
Competitive frame of reference
Points-of-parity and points-of-difference
Core brand values
Brand mantra
Mixing and matching of brand elements
Integrating brand marketing activities
Leveraging of secondary associations
Brand Value Chain
Brand audits
Brand tracking
Brand equity management system
Brand-product matrix
Brand portfolios and hierarchies
Brand expansion strategies
Brand reinforcement and revitalization
Grow and Sustain
Brand Equity

New Branding Challenges
• Brands are important as ever
• Consumer need for simplification
• Consumer need for risk reduction
• Brand management is as difficult as ever
• Savvy consumers
• Increased competition
• Decreased effectiveness of traditional marketing tools and
emergence of new marketing tools
• Complex brand and product portfolios
21

The Customer/Brand Challenge
• In this difficult environment, marketers must have a keen
understanding of:
• customers
• brands
• the relationship between the two
22

Strategic brand management by kevin lane keller

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Strategic brand management by kevin lane keller