Brand Management #6

5th Session

Pulung S. Perbawani SIP., MM.

Yogyakarta, March 31st 2011

Back to the question that we asked on the first day of class:

What is a brand?

We have defined it as:‘Brain space’A set of associations in memoryThose associations that create differentiation

related to the brand in memory, resulting in brand equity

The sum total of all the different values that people attach to a brand name

Ultimately intangibleExists only in people’s minds, YET has

bankable powerCommon denominator to interpret the

potential effects and trade offs of various strategies and tactics and for assessing the value of a brand

Stresses the importance of the role of the brand in marketing strategies

A set of marketing effects uniquely attributed to the brand

A set of stored values that consumers associated with a Product/Service

Represents the ADDED VALUE endowed as a result of past marketing investments

Bridge between the past and future possibilities

Brand Equity (Aaker) – Brand assetsBrand Equity (Keller) - Customer-based brand

equityBrand Equity (Kotler) - Financial aspects

“A set of assets such as name awareness, loyal customers,

perceived quality and associations that are linked to the

brand (its name and symbol) and add (or subtract)

value to the product or service being offered.”David Aaker

“The differential effect that brand knowledge has on

consumer response to the marketing of that brand ….

The unique “brain-space” that your brand occupies in the

minds of your customers… CBBE”Kevin Lane Keller

Arises from difference inCONSUMER’s response

What CONSUMER learned,felt, seen, heard, experiencedover time

Reflected in CONSUMER

perceptions, preferences, and

behavior related to all aspects

of the marketing of a brand

Greater loyalty, lesser vulnerabilityLarger marginsAdditional brand extension opportunitiesHigher pricesChannel power - greater trade cooperation and

supportAdditional retail shelf spaceReduces customer switching behaviorPrevents erosion of market shareLegal protection of the brandLicensing opportunities

Shortcut for interpreting, processing andstoring information

Gives confidence in the purchasing decisionEnhances use satisfaction

Enhance the effectiveness and efficiency of marketing programs

Decrease brand switchingHigher prices and marginsTrade leverageCompetitive advantage

We create brand equity by creating an integrated

Brand that:Maximizes the creation of brain-spaceBy ensuring that every interaction with what

the company teaches and reinforces the brand promise

Explain further about awareness and loyalty aspect of Brand Equity.

Search for cases and examples on Marketing (brand) communication that emphasizes on the aspect of Awareness and Loyalty aspect.