MARKETING MANAGEMENT12th edition 9 Creating Brand Equity Kotler Keller
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?
Brand 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.
Excels at delivering desired benefits Stays relevant Priced to meet perceptions of value Positioned properly Communicates consistent brand messages Well-designed brand hierarchy Uses multiple marketing activities Understands consumer-brand relationship Supported by organization Monitors sources of brand equity Attributes of Strong Brands
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
Branding Endowing products and services with the power of a brand.
Brand Equity The differential effect that brand knowledge has on consumer response to the marketing of that brand.
Brand Knowledge Thoughts Feelings Knowledge Images Beliefs Experiences
Brand Associations Strong Unique Favorable
Improved perceptions of product performance Greater loyalty Less vulnerable to competition Less vulnerable to crises Larger margins Inelastic consumer response to price increases Elastic consumer response to price decreases Greater trade cooperation Increase in effectiveness of IMC Licensing opportunities Brand extension opportunities Marketing Advantages of Strong Brands
Brand Promise The marketer’s vision of what the brand must be and do for Consumers.
Brand Equity Models • Brand Asset Valuator • Aaker Model • BRANDZ • Brand Resonance
Brand Asset Valuator (BAV) Brand Equity Differentiation Knowledge Relevance Esteem
Aaker Model – Brand Identity Brand-as-product Brand-as-organization Brand-as-person Brand-as-symbol
Aaker Model – Brand Assets Brand loyalty Brand associations Brand awareness Proprietary assets Perceived quality
The BRANDZ Model Bonding Advantage Performance Relevance Presence
Drivers of Brand Equity Brand Elements Marketing Activities Meaning Transference
Brand Elements Brand names URLs Slogans Elements Logos Characters Symbols
Memorable Meaningful Likeability Transferable Adaptable Protectible Brand Element Choice Criteria
Like a good neighbor, State Farm is there Just do it Nothing runs like a Deere Help is just around the corner Save 15% or more in 15 minutes or less We try harder We’ll pick you up Nextel – Done Zoom Zoom I’m lovin’ it Innovation at work This Bud’s for you Always low prices Slogans
Designing Holistic Marketing Activities Personalization Integration Internalization
Measuring Brand Equity Brand Audits Brand Tracking Brand Valuation
Brand earnings Brand sales Costs of sales Marketing costs Overhead expenses Remuneration of capital charge Taxation Brand strength Leadership (25%) Stability (15%) Market (10%) Geographic spread (25%) Trend (10%) Support (10%) Protection (5%) Interbrand’s Brand Equity Formula
Managing Brand Equity Brand Reinforcement Brand Revitalization Brand Crises
Devising a Branding Strategy Develop new brand elements Apply existing brand elements Use a combination of old and new
Brand line Brand mix Brand extension Sub-brand Parent brand Family brand Line extension Category extension Branded variants Licensed product Brand dilution Brand portfolio Branding Terms
Brand Naming Individual names Blanket family names Separate family names Corporate name-individual name combo
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: • Brand extensions endanger brands. 2. Brand extensions are an important brand-growth strategy.
Marketing Discussion • How can you relate the different models of brand equity? How are they similar? Different? Can you construct a model that incorporates the best of each?