Creating Brand Equity LECTURE-8
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?
Steps in Strategic Brand Management • Identifying and establishing brand positioning. • Planning and implementing brand marketing. • Measuring and interpreting brand performance. • Growing and sustaining brand value.
What is a Brand? A brand is 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.
The Role of Brands • Identify the maker • Simplify product handling • Organize accounting • Offer legal protection • Signify quality • Create barriers to entry • Serve as a competitive advantage • Secure price premium
What is Branding? Branding is endowing products and services with the power of the brand.
What is Brand Equity? Brand equity is the added value endowed on products and services, which may be reflected in the way consumers, think, feel, and act with respect to the brand.
Improved perceptions of product performance Greater loyalty Less vulnerability to competitive marketing actions Less vulnerability to crises Larger margins More inelastic consumer response Greater trade cooperation Increased marketing communications effectiveness Possible licensing opportunities Advantages of Strong Brands
What is a Brand Promise? A brand promise is 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) Advertising agency Young and Rubicam (Y & R) developed a model of brand equity called Brand Asset Valuator (BAV)
BAV Key Components • Differentiation • Measures the degree to which a brand is seen as different from others. • Energy • Measures the brand’s sense of momentum. • Relevance • Measure the breadth of a brand’s appeal.
BAV Key Components… • Esteem • Measures how well the brand is regarded & respected. • Knowledge • Measure how familiar & intimate consumers are with the brand.
Aaker Model • Brand identity • The unique set of brand associations. • Core identity elements • Typically 8-10 elements that represent concepts. • Extended identity elements • Add texture & guidance. • Brand essence • Brand identity in a compact & inspiring way.
Drivers of Brand Equity • Brand elements • These are those trademarkable devices that identify & differentiate the brand. • Marketing activities • Meaning transference
Brand names Slogans Characters Symbols Logos URLs Brand Elements
Brand Element Choice Criteria • Memorable • Meaningful • Likeability • Transferable • Adaptable • Protectible
Like a good neighbor, State Farm is there Just do it Nothing runs like a Deere I’m lovin’ it We try harder Always low prices Slogans
Designing Holistic Marketing Activities • Personalization • Integration • Internalization
Internal Branding • Choose the right moment • Link internal and external marketing • Bring the brand alive for employees
Measuring Brand Equity • Brand audits • A consumer focused series of procedures to assess the health of the brand (Equity) • Brand tracking • Quantitative data from consumers on a routine basis over time. • Brand valuation • Total financial value of the brand.
Managing Brand Equity • Brand reinforcement • Brand revitalization • Brand crises
Interbrand’s Steps in Calculating Brand Equity • Market segmentation • Financial analysis • Role of branding • Brand strength • Brand value calculation
Devising a Branding Strategy • Develop new brand elements • Apply existing brand elements • Use a combination of old and new
Brand line All products Brand mix Set of all brand lines Brand extension Introduce a new product Sub-brand Brand extension can also called sub- brand Parent brand e.g Lifebuoy Family brand e.g Honda Line extension New product with in a product category Category extension Branded variants Licensed product Brand dilution Brand portfolio Branding Terms
Reasons for Brand Portfolios • Increasing shelf presence and retailer dependence in the store. • Attracting consumers seeking variety. • Increasing internal competition within the firm. • Yielding economies of scale in advertising, sales, merchandising, and distribution.
Brand Roles in a Brand Portfolio • Flankers • Cash cows • Low-end, entry-level • High-end prestige
Bibliography • Marketing Management – A South Asian Perspective • by Philip Kotler, Kevin Lane Keller, Abraham Koshy & • Mithileshwar Jha, 13th Edition, Published by Pearson • Education, Inc. • Strategic Marketing Management – Meeting The • Global Marketing Challenges by Carol H. Anderson & • Julian W. Vincze Published by Houghton Mifflin Company. • Principles of Advertising & IMC by Tom Duncan 2nd • Edition, Published by McGraw-Hill Irwin. • Principles of Marketing by Philip Kotler & Gary Armstrong • Thirteenth Edition, Published by Prentice Hall