GLOBAL MARKETING Brand Management Brand Equity

What is a brand? The name, term, sign, symbol, or design, or a combination of these, that identify the goods or services of one seller and that differentiate them from competitors’ brands. The best brands convey a sense of a quality promise.

Brand Equity A set of assets and liabilities linked to a brand’s name and symbol that add to or subtract from the value provided by a product or service to a firm and/or that firm’s customers

BRAND EQUITY BRAND AWARENESS PERCEIVED QUALITY BRAND LOYALTY BRAND IDENTITY

Perceived Quality Eight dimensions of perceived product quality:

Brand Awareness The level of familiarity consumers have with a brand name. The ability to link a brand name with a particular product. Can provide a competitive advantage: Product parity Low-involvement l High recognition

Brand Identity The associations attached to a firm and its brands Anything directly or indirectly linked in memory to a brand The most common associations are usually product attributes or customer benefits  Use or application  Lifestyle and feelings  Product class  Personality  Product user  Symbol

Brand Loyalty The tendency of customers to continue to use the same product over time Resistance to switching Based on: Simple habit Preference Switching costs

Willingness to defend the purchase of our products & recommends us to others Intentions to repurchase Willingness to wait for the company if competition launches a superior product Resistance to adverse opinions by experts: Does the customer trust us more than other credible sources? Willingness to pay a price premium over competitors’ products Lowest commitment Increasing evidence of commitment & loyalty and

Strong Brands: Excel at delivering benefits customers truly desire Stay relevant Base pricing strategy on consumers’ perceptions of value

Are properly positioned Are consistent Make sense hierarchically within a brand portfolio Make use of and coordinate a full repertoire of marketing activities to build equity

Are well-understood by brand managers, i.e., they know what the brand means to consumers Are given proper support that is sustained over time Are monitored by the company with respect to sources of brand equity

Managing Brands Make sure each brand has a strong, recognizable identity Make sure each brand has a unique core value proposition Make sure each brand is clearly positioned, providing guidance to marketing mix

Make sure the marketing mix decisions support and implement the brand identity and position Be consistent with respect to brand identity, positioning, and execution Make sure brands within a portfolio are consistent and synergistic

Leverage brands if reinforces brand identity

Branding Challenges To brand or not to brand? Brand sponsorship Manufacturer brand Distributor brand Licensed brand name Brand name decision

Leveraging the Brand: Product extensions New products in same product category owned by same company Examples:

Leveraging the Brand: Brand Extensions New products with same brand name in product category Examples: Require lower investment and lower risk than product extensions

Requires product differentiation and careful product positioning If not carefully positioned, may cannibalize core brand and increase marketing costs

Track brand equity over time Brand audit Brand inventory Brand exploratory