1. A FRAMEWORK for MARKETING MANAGEMENT
Chapter 8
Creating
Brand
Equity
Kotler Keller Cunningham 1

2. © Copyright 2008 Pearson Education Canada
Chapter Questions
What is a brand, and how does branding work?
What is brand equity, and how is it built, measured, and managed?
What are the important decisions in developing a branding strategy?
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3. Profile: Canadian Marketing Excellence SISU INC.
Making a commodity like vitamins and supplements “cool” was the challenge
Rebranding, repackaging, and marketing SISU’s line of over 150 products was the strategy
The brand was all about taking control over your health (hence the name SISU, which means fortitude in Finnish)
This notion had to be retained by the rebranding, even building on its Scandinavian roots
Grey Worldwide Northwest of Vancouver were
hired to give SISU a stripped down look, through
new packaging, labelling, and logos
Sales teams were re-motivated so that they could
re-educate retailers about the products
As a result, brand awareness increased by 33%
and sales went up by almost 5%
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4. 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
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5. The Role of Brands Identify the maker Simplify product handling
Organize accounting
Offer legal protection
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6. The Role of Brands Signify quality Create barriers to entry
Serve as competitive advantage
Secure price premium
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7. Marketing Advantages of Strong Brands
Improved perceptions
Greater loyalty
Less vulnerable to competition
Less vulnerable to crises
Larger margins
More inelastic response to price increases
More elastic response to price decreases
Greater trade cooperation
Increased marketing communications
Possible licensing opportunities
Brand extension opportunities
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8. Branding Endowing products and services with the power of a brand
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9. Anything Can Be Branded
A physical good
A service
A store
A person
A place
An organization
Or even an idea
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10. Brand Equity The added value endowed to products,
reflected in how consumers
think, feel, and act
with respect to the brand,
as well as the prices, market share,
and profitability that the brand
commands for the firm
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11. © Copyright 2008 Pearson Education Canada
Brand Equity
Brand equity arises from differences in consumer response to the brand
Differences in response are a result of brand knowledge
Differential response is reflected in perception, preferences, and behaviour related to the marketing of the brand
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12. © Copyright 2008 Pearson Education Canada
Brand Associations
Strong
Unique
Favourable
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13. Brand Promise The marketer’s vision of what
the brand must be and do for
consumers
Click on the video icon to view a clip about Starbucks’ brand.
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14. Drivers of Brand Equity
Brand elements
Marketing activities
Meaning transference
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15. © Copyright 2008 Pearson Education Canada
Brand Elements
Brand
names
URLs
Slogans
Elements
Logos
Characters
Symbols
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16. © Copyright 2008 Pearson Education Canada
Brand Elements
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17. Brand Element Choice Criteria
Building the Brand
Memorable
Meaningful
Likeable
Defending the Brand
Transferable
Adaptable
Protectable
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18. © Copyright 2008 Pearson Education Canada
Slogans
Like a good neighbour, State Farm is there
Just do it
Nothing runs like a Deere
Help is just around the corner
Help is close to home
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
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19. Designing Holistic Marketing Activities
Personalization
Integration
Internalization
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20. Marketing Skills JONES SODA
Entrepreneur Peter Van Stolk honed his skills in making Jones Soda a cult hit
The brand was initially placed in untraditional outlets that attract the Generation Y target segment; e.g. surfboard stores and record stores
Regular customers began asking for the soda in other stores, which led to Jones Soda becoming more widely available
Fans are able to submit their personal photos for possible use on a bottle label, thereby forging an emotional bond with customers
Jones Soda is now a cult brand with annual sales of $35 million
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21. Figure 8.1 Secondary Sources of Brand Knowledge
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22. Measuring Brand Equity
Brand audits
Brand tracking
Brand valuation
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23. © Copyright 2008 Pearson Education Canada
Managing Brand Equity
Brand reinforcement
Brand revitalization
Brand crises
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24. Devising a Branding Strategy
Develop new brand elements
Apply existing brand elements
Use a combination of
old and new
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25. Table 8.3 Branding New Products
Brand extension
Sub-brand
Parent brand
Family brand
Line extension
Category extension
Brand line
Brand mix
Branded variants
Licensed product
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26. Brand Naming Individual names Blanket family names
Separate family names
Corporate name –individual name combo
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27. © Copyright 2008 Pearson Education Canada
Brand Extensions
Advantages
Improved odds of success
Development of positive consumer expectations
Access to retailer support
Leverage of current brand awareness
Economies of scale in advertising, packaging, distribution
Disadvantages
Dilution of brand name
Risk to brand integrity
Risk of harm to parent brand
Cannibalization of parent brand
Lost opportunity to create new brand
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28. Reasons for Multiple Brands in Portfolio
To increase shelf presence and retailer dependence
To attract consumers seeking variety
To increase internal competition
To yield economies of scale
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29. Brand Roles in a Brand Portfolio
Flankers
Cash cows
Low-end
Entry-level
High-end
prestige
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30. For Discussion Can a brand be successful without strong brand equity?
Why or why not?
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