MM6016 BRANDING AND MARKETING COMMUNICATION

1. CONSUMER BASED BRAND EQUITY MM6016BRANDING AND MARKETING COMMUNICATION Master of Business Administration School of Business and Management Institut Teknologi Bandung

2. OVERVIEW We have learned: • The origin of brand • Traditional and practical meaning of brand • Brand evolvement • Brand classification • Strategic brand management steps • Relationship between brand and product • Relationship between elements of a brand system • Relationship between brand and consumer • Relationship between brand identity and brand image

3. TODAY’S LESSONS • Customer Based Brand Equity • Brand Positioning • Brand Audit

4. Customer Based Brand Equity • MM6016 Branding and Marketing Communication

5. Equity pada Brand • Wood (2000): brand equity merupakan hasil dari upaya untuk menggambarkan hubungan antara brand dan pelanggannya • Perkembangan istilah brand equity: • Perspektif akuntansi (orientasi pada perusahaan) • Perspektif pemasaran (orientasi pada pelanggan) • Perspektif integral (orientasi pada seluruh stakeholders)

6. Brand Equity: perspektif perusahaan

7. Brand Equity: perspektif pelanggan

8. Brand Equity: perspektif integral (1)

9. Brand Equity: perspektif integral (2)

10. Brand Relationship sebagai Perantara Sumber: Jones, Richard (2005), ‘Finding sources of brand value: Developing a stakeholder model of brand equity’, Journal of Brand Management, pg.10 Brand equity is created here

11. Customer Based Brand Equity • Alasan menggunakan perspektif konsumen: • Pertama, brand equity merupakanupayauntukmendefinisikanhubunganantarapelanggandengan brand (Wood, 2000). • Kedua, brand equity akanmemilikiarti yang komparatifdengan brand value, brand loyalty, dan brand image – sebagaimana yang telahdiklasifikasikanolehFeldwick (1996) – jikadilihatdarisudutpandangkonsumen. • Basis dalam menentukan Customer Equity

12. Brand Equity and Brand Value • Brand equity reflects the customer’s perception either for or against the brand. • A combination of marketing and operating tactics are used to help firms attract customers and create brand equity. • The accumulation of brand equity activities builds brand value. • Brand value is a measure of the difference of the net present cash flows from a branded offering over those of a lesser known or even unbranded offering. • Brand value is often a substantial percentage of total firm value.

13. Model CBBE

14. Model CBBE Aaker (1991) • Brand loyalty, yaknitingkatkesetiaanseseorangterhadapsebuahbrand, diwujudkan dalam pembelianyang berulang (repeat purchase) • Perceived quality, merupakanpersepsikonsumenmengenaikualitasdariproduk yang diberi brand tertentu. Dimensikualitassangatluas, mencakupreliabilitas, ketahanan, kualitasbahan, dankualitassecarakeseluruhan. • Brand awareness, merupakanukurandarikepopuleransebuah brand. Yang jugadidefinisikansebagaisuatupenerimaankonsumenterhadapsebuahmerekdalambenakmerekadimanaditunjukkandarikemampuanmerekamengingatdanmengenalikembalisebuahmerekkedalamkategoritertentu. • Brand association, merupakanresultan/ penjumlahandarisemuaciriterukurdanciritidakterukur yang dimilikiolehsuatu brand; sepertigagasan, kepercayaan, nilai-nilai, prasangka, danminat yang membuatnyaunik.

15. Model CBBE Aaker (1996) • Model 1991 ditambah dengan: • Market share • Distribution coverage • Price Premium

16. Model CBBE Keller (1993, 1998)

17. Model CBBE Keller (2003)

18. Model CBBE Campbell (2002)

19. Model CBBE Netemeyer (2004)

20. BrandAsset Valuator Young & Rubicam

21. BrandDynamics dari Milward Brown

22. Equity Engine dari Research International

23. Pemilihan Model • Model Akademik Generik lebih fleksibel untuk digunakan • Model Aaker lebih simpel; Model Keller lebih sistematik dan memisahkan bagian perusahaan dan respon konsumen; Model Netemeyer lebih fokus pada consumer decision making • Model Industri simpel dan praktis, namun tidak selalu bisa dipakai di berbagai konteks karena lack of comparability

24. INTRODUCTION

25. BACKGROUND (1) • The importance of brand in today’s business • Brand is important but not well understood

26. BACKGROUND (2) • Costly brand investment • Brand failure • Hard to imitate brand success strategy

27. COURSE FRAMEWORK

28. OBJECTIVES • Brand affective Brand cognitive

29. TOPICS • Introduction to Brand • Strategic Brand Management • Brand equity • Brand positioning • Brand audit • Brand communication • Brand reinforcement • Brand extension • Co-branding strategy • Brand revitalizationand rejuvenation • Brand portfolio strategy • Global branding Reference: Kevin L. Keller, 2008, Strategic Brand Management, 3rd Edition, Prentice Hall.

30. LEARNING METHODS

31. EVALUATION BC B AB A

32. ACSYS • Academic Systems (AcSys) • Introduced in 2009 • http://acsys.sbm.itb.ac.id (internal) • http://acsys1.sbm.itb.ac.id (external) • Username and Password • Check attachment, assignment, announcement, score and comments

33. NEED TO DISCUSS? • Director Room, MBA ITB Building • Call 022-2504308 ext 126 • E-mail reza@sbm-itb.ac.id • From Monday to Friday, 8am – 5pm

34. BRAND NEWS (1)

35. BRAND NEWS (2)

36. BRAND NEWS (3)

37. HISTORY OF BRAND • Old Norse word: “Brandr” = “To Burn” • Greeks and Romans puts their signatures/symbols on wet claypots • Pottery communities

38. TRADITIONAL BRAND DEFINITION • It’s a mark • Different forms: name, logo, symbol, design, or combination of those • Purpose: to differentiate • From tangible to intangible

39. PRACTICAL BRAND DEFINITION • Set of associations or known descriptions • Stored in people’s mind • Which is represented, at least, by name • From intangible to tangible • Holt (2003): “Brand is perceptual entity, rooted in reality”

40. OTHER BRAND DEFINITIONS (1) De Chernatony (2006) • Input perspective • Brand as logo • Brand as identity • Brand as quality indicator • Brand as values • Brand as vision • Output perspective • Brand as image • Brand as relationship • Time perspective • Brand is a dynamic entity

41. OTHER BRAND DEFINITIONS (2) • Berthon et al. (2007)  Brand Manifold

42. BRAND EVOLVEMENT • McEnaly and De Chernatony (1999)

43. BRAND EVOLVEMENT (2) • Kunde (2000)

44. BRANDS VS PRODUCTS

45. PRODUCTS VS BRANDS

46. RELATIONSHIP BETWEEN PRODUCT & BRAND (1)

47. RELATIONSHIP BETWEEN PRODUCT & BRAND (2) Branded product $$ Product’s visible and differentiating characteristics Brand’s intangible values & imagery Halo effect Product satisfaction Brand aspiration Expectations

48. RELATIONSHIP BETWEEN PRODUCT & BRAND (3) Core product benefit Brand building equity pyramid

49. Konsumen Konsumen Perusahaan Perusahaan Produk Brand Brand Produk Brand Konsumen Perusahaan (a) (b) (c) PRODUCT, BRAND AND CONSUMERS • Product used to dictates brand. The situation changed now • Brand influences purchase • Brand is perceived and experienced by consumers • Brand used to be company’s belonging, but now it is shared with consumers

50. BRAND IDENTITY AND IMAGE Brand perception process: Bottom-up Brand management process: top-down Permanent fluctuations of the market Evolution of competition, life stles, technology