Brand Equity Brand Identity Positioning the competition means defining the rules of the game in the marketplace. –Sergio Zyman

A Brand is any... term… Coke symbol… or combination… name... Coca-Cola sign… design… …that distinguishes a product from its competition.

Brand Image A mental image that reflects the way consumers perceive a brand. Physical: design, letters, shapes, art, colors Physical: design, letters, shapes, art, colors Psychological: emotions, beliefs, values Psychological: emotions, beliefs, values A mental image that reflects the way consumers perceive a brand. Physical: design, letters, shapes, art, colors Physical: design, letters, shapes, art, colors Psychological: emotions, beliefs, values Psychological: emotions, beliefs, values

Characteristics of Good Brand Names Easy to say and remember Pronounceable in only one way Positive in connotation Communicative of product attributes Short and distinctive Legally protectable Virginia Slims Spic and Span Angel Duracell Jiffy Fruit 'n Fibre

Basic Branding Strategies Toothpaste Private Label Brands Manufacturer Brands Manufacturer Discount Brands Generics (no brand) Mint Flavor Toothpaste

Brand Equity Brand Equity is a set of assets (and liabilities) linked to a brand’s name and symbol that adds to (or substracts from) the value provided by a product or service to a firm and/or that firm’s customers.

Categories of Assets Brand name awareness Brand loyalty Perceived Quality Brand Associations Other Proprietary Brand Assets (e.g., channel relationships, patents,…)

Brand Equity Increases Value Brand Equity Brand Loyalty Brand Awareness Perceived Quality Brand Associations Other Brand Assets Value to Customer Value to Firm

Brand Name Awareness Anchor to which other associations can be attached Familiarity-liking Signal of substance/commitment Brands to be considered Examples: Coke: seal Coke: sealseal DuPont: strategic DuPont: strategicstrategic

Brand Loyalty Reduced marketing costs Trade leverage Attracting new customers Create awareness Create awareness Reassurance Reassurance Time to respond to competitive threats Examples: Delta ad Delta ad Delta ad Delta ad

Perceived Quality Reason-to-buyDifferentiate/PositionPrice Channel member interest ExtensionsExamples: Jack in the box: COPS Jack in the box: COPSCOPS American Express American Express American Express American Express

Brand Associations Help process/retrieve information Reason-to-buy Create positive attitude/feelings Extensions – Gerber Singles Gerber SinglesGerber SinglesExamples: Nordstrom: Reinvent Nordstrom: ReinventReinvent 7-Eleven: Belly-flop 7-Eleven: Belly-flopBelly-flop

Brand Equity and Brand Value Brand Equity provides value to customers: Interpretation/processing of information Interpretation/processing of information Confidence in the purchase decision Confidence in the purchase decision Use satisfaction Use satisfaction

Brand Equity and Brand Value Brand Equity provides value to firm: Efficiency and effectiveness of marketing programs Efficiency and effectiveness of marketing programs Brand loyalty Brand loyalty Prices/margins Prices/margins Brand extensions Brand extensions Trade leverage Trade leverage Competitive advantage Competitive advantage

Brand Building Inhibitors Pressure to compete on price Proliferation of competitors Fragmenting markets and media Complex brand strategies and relationships Bias toward changing strategies Bias against innovation Pressure to invest elsewhere Short-term pressures

Brand Equity and Brand Identity Brand Identity Brand Associations Brand Equity

Brand Identity A brand identity provides direction, purpose and meaning for the brand. It is central to a brand’s strategic vision and the driver of one of the four principal dimensions of brand equity: associations, which are the heart and soul of the brand.

Brand Identity Brand identity is a unique set of brand associations that the brand strategist aspires to create or maintain. These associations represent what the brand stands for and imply a promise to customers from the organization members.

Brand Identity is more than... Brand image (how the brand is perceived now) Brand position (the part of the brand identity and value proposition to be actively communicated to a target audience) Product attributes An external perspective (i.e., customer- based)

Brand Identity System A brand’s identity can be viewed from four perspectives: brand as product brand as product brand as organization brand as organization brand as person brand as person brand as symbol brand as symbol When we view a brand from all these perspectives, it is easier to develop/reinforce a Value Proposition, Credibility and, ultimately, a Relationship with the customer. HARLEY DAVIDSON SITE

Brand Identity System Brand Identity Brand as Product Brand as Organization Brand as Person Brand as Symbol Value PropositionCredibility Brand-Customer Relationship

Dimensions of Brand Identity Brand as Product Product Scope Product Scope Product Attributes Product Attributes Quality/value Quality/value Uses Uses Users Users Country of Origin Country of Origin Timex Ad Harley Site

Dimensions of Brand Identity Brand as Organization Organization attributes (e.g., innovation, consumer concern, trustworthiness) Organization attributes (e.g., innovation, consumer concern, trustworthiness) Local vs. global Local vs. global Enbridge Home Services Harley Site

Dimensions of Brand Identity Brand as Person Personality (e.g., genuine, energetic, rugged,…) Personality (e.g., genuine, energetic, rugged,…) Brand-customer relationships (e.g., friend, adviser,…) Brand-customer relationships (e.g., friend, adviser,…) Chevy Monte Carlo Ad Harley Site

Dimensions of Brand Identity Brand as symbol Visual imagery and metaphors Visual imagery and metaphors Brand heritage Brand heritage Apple Ad Harley Site

Value Proposition Functional Benefits: A BMW car handles well, even on ice. Emotional Benefits: Excited in a BMW. Self-Expressive Benefits: Sophisticated and successful in a BMW.

Brand Position Brand position is the part of the brand identity and value proposition that is to be actively communicated to the target audience and that demonstrates an advantage over competing brands JC Penney’s position JC Penney’s position JC Penney’s position JC Penney’s position Girl Scouts position Girl Scouts position Girl Scouts position Girl Scouts position

Brand Position What elements of BI to include? Candidates: Core identity: central, timeless essence of the brand (most unique, valuable aspects) Core identity: central, timeless essence of the brand (most unique, valuable aspects) Points of leverage: specific keys to success (e.g., Ronald McDonald) Points of leverage: specific keys to success (e.g., Ronald McDonald) The value proposition: a key benefit part of the value proposition (functional, self- expressive,…) The value proposition: a key benefit part of the value proposition (functional, self- expressive,…)

Brand identity & position provide value Guides and enhances brand strategy Improves brand memorability Provides meaning and focus to the organization Provides extension options Co-branding at Yahoo Co-branding at Yahoo Co-branding at Yahoo Co-branding at Yahoo In sum, provides: value proposition value proposition credibility to other brands credibility to other brands basis of relationship basis of relationship