8/10/2019 Brand Equity.ppt
1/37
Creating
Brand Equity
Market ing Management, 13thed
9
8/10/2019 Brand Equity.ppt
2/37
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-2
Chapter Questions
What is a brand and how doesbranding work?
What is brand equity?
How is brand equity built, measured,and managed?
What are the important decisions indeveloping a branding strategy?
8/10/2019 Brand Equity.ppt
3/37
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-3
ESPN: A Strong Brand
http://espn.go.com/8/10/2019 Brand Equity.ppt
4/37
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-4
Steps in
Strategic Brand Management
Identifying and establishing brandpositioning
Planning and implementing brandmarketing
Measuring and interpreting brand
performance Growing and sustaining brand value
8/10/2019 Brand Equity.ppt
5/37
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-5
What is a Brand?
A brandis a name, term, sign, symbolor design, or a combination of them,
intended to identify the goods or
services of one seller or group ofsellers and to differentiate them from
those of competitors.
8/10/2019 Brand Equity.ppt
6/37
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-6
The Role of Brands
Identify the maker
Simplify product handling
Organize accounting
Offer legal protection
8/10/2019 Brand Equity.ppt
7/37
8/10/2019 Brand Equity.ppt
8/37
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-8
What is Branding?
Branding is endowingproducts and services with the
power of the brand.
8/10/2019 Brand Equity.ppt
9/37
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-9
What is Brand Equity?
Brand equityis the added valueendowed on products and services,which may be reflected in the way
consumers, think, feel, and act withrespect to the brand.
8/10/2019 Brand Equity.ppt
10/37
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-10
Brand Knowledge
Knowledge
Thoughts
Experiences
BeliefsImages
Feelings
8/10/2019 Brand Equity.ppt
11/37
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-11
Advantages of Strong Brands
Improvedperceptions ofproduct
performance Greater loyalty
Less vulnerabilityto competitive
marketing actions Less vulnerability
to crises
Larger margins
More inelasticconsumer response
Greater tradecooperation
Increased marketingcommunicationseffectiveness
Possible licensingopportunities
8/10/2019 Brand Equity.ppt
12/37
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-12
Apple is a Strong Brand
http://www.apple.com/8/10/2019 Brand Equity.ppt
13/37
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-13
What is a Brand Promise?
A brand promiseis the marketersvision of what the brand must be and
do for consumers.
8/10/2019 Brand Equity.ppt
14/37
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-14
Burger King Builds Its Brand with
Social Connectivity
8/10/2019 Brand Equity.ppt
15/37
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-15
Brand Equity Models
Brand Asset Valuator
Aaker Model BRANDZ
Brand Resonance
8/10/2019 Brand Equity.ppt
16/37
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-16
BAV Key Components
Differentiation
Energy
Relevance
Esteem
Knowledge
8/10/2019 Brand Equity.ppt
17/37
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-17
Figure 9.3 Brand Dynamics Pyramid
Presence
Relevance
Performance
Advantage
Bonding
Strong Relationship
Weak Relationship
8/10/2019 Brand Equity.ppt
18/37
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-18
Aaker Model
Brand Identity
Extended Identity
ElementsBrand Essence
Core Identity
Elements
8/10/2019 Brand Equity.ppt
19/37
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-19
Figure 9.4 Brand Resonance Pyramid
8/10/2019 Brand Equity.ppt
20/37
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-20
Drivers of Brand Equity
Brand Elements
Marketing Activities
Meaning Transference
8/10/2019 Brand Equity.ppt
21/37
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-21
Brand Elements
ElementsSlogans
Brand
names URLs
Logos
SymbolsCharacters
8/10/2019 Brand Equity.ppt
22/37
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-22
Brand Element Choice Criteria
Memorable
Meaningful
Likeability
Transferable
Adaptable
Protectible
8/10/2019 Brand Equity.ppt
23/37
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-23
Slogans
Like a goodneighbor, StateFarm is there
Just do it Nothing runs like a
Deere
Save 15% or morein 15 minutes orless
We try harder
Well pick you up
NextelDone
Zoom Zoom
Im lovin it
Innovation at work
This Buds for you
Always low prices
8/10/2019 Brand Equity.ppt
24/37
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-24
Designing Holistic Marketing Activities
Personalization
Integration
Internalization
8/10/2019 Brand Equity.ppt
25/37
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-25
Internal Branding
Choose the right moment
Link internal and external marketing
Bring the brand alive for employees
8/10/2019 Brand Equity.ppt
26/37
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-26
Figure 9.5 Secondary Sources of
Brand Knowledge
8/10/2019 Brand Equity.ppt
27/37
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-27
Measuring Brand Equity
Brand Audits
Brand Tracking
Brand Valuation
8/10/2019 Brand Equity.ppt
28/37
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-28
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 $27.94Disney $27.85
McDonalds $27.50
Mercedes-Benz $22.13
8/10/2019 Brand Equity.ppt
29/37
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-29
Managing Brand Equity
Brand Reinforcement
Brand Revitalization
Brand Crises
8/10/2019 Brand Equity.ppt
30/37
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-30
Interbrands Steps in Calculating
Brand Equity
Market segmentation
Financial analysis
Role of branding Brand strength
Brand value calculation
8/10/2019 Brand Equity.ppt
31/37
8/10/2019 Brand Equity.ppt
32/37
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-32
Branding Terms
Brand line
Brand mix
Brand extension
Sub-brand
Parent brand
Family brand
Line extension
Category extension
Branded variants
Licensed product
Brand dilution
Brand portfolio
http://localhost/var/www/apps/conversion/tmp/scratch_2/09_Swiss_Army.mov8/10/2019 Brand Equity.ppt
33/37
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-33
Brand Naming
Individual names
Blanket family names
Separate family names
Corporate name-individual name combo
8/10/2019 Brand Equity.ppt
34/37
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-34
Reasons for Brand Portfolios
Increasing shelf presence and retailerdependence in the store
Attracting consumers seeking variety
Increasing internal competition withinthe firm
Yielding economies of scale inadvertising, sales, merchandising, anddistribution
8/10/2019 Brand Equity.ppt
35/37
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-35
Brand Roles in a Brand Portfolio
Flankers
Low-endEntry-level High-endPrestige
Cash Cows
8/10/2019 Brand Equity.ppt
36/37
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-36
Marketing Debate
Are brand extensions good or bad?
Take a position:1. Brand extensions can endanger brands.
or
2. Brand extensions are an importantbrand-growth strategy.
8/10/2019 Brand Equity.ppt
37/37
Copyright 2009 Pearson Education Inc Publishing as Prentice Hall 9 37
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-equityModel that incorporates the best of each?