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MARKETING MANAGEMENT 12th edition
9 Creating Brand Equity Kotler Keller
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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?
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Google - 2002 Brand of the Year
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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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Attributes of Strong Brands
Excels at delivering desired benefits Stays relevant Priced to meet perceptions of value Positioned properly Communicates consistent brand messages Well-designed brand hierarchy Uses multiple marketing activities Understands consumer-brand relationship Supported by organization Monitors sources of brand equity
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The Role of Brands Identify the maker Simplify product handling
Organize accounting Offer legal protection
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The Role of Brands Signify quality Create barriers to entry
Serve as a competitive advantage Secure price premium
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Branding Endowing products and services with the power of a brand.
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Brand Equity The differential effect that brand
knowledge has on consumer response to the marketing of that brand.
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Brand Knowledge Thoughts Feelings Knowledge Images Beliefs Experiences
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Brand Associations Strong Unique Favorable
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Marketing Advantages of Strong Brands
Improved perceptions of product performance Greater loyalty Less vulnerable to competition Less vulnerable to crises Larger margins Inelastic consumer response to price increases Elastic consumer response to price decreases Greater trade cooperation Increase in effectiveness of IMC Licensing opportunities Brand extension opportunities
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Branding a Place
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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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The Virgin Brand
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Brand Equity Models Brand Asset Valuator Aaker Model BRANDZ
Brand Resonance
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Brand Asset Valuator (BAV)
Brand Equity Differentiation Knowledge Relevance Esteem
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Figure 9.1 BAV Power Grid
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Aaker Model – Brand Identity
Brand-as-product Brand-as-organization Brand-as-person Brand-as-symbol
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Aaker Model – Brand Assets
loyalty Brand associations Brand awareness Proprietary assets Perceived quality
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The BRANDZ Model Bonding Advantage Performance Relevance Presence
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Figure 9.2 Brand Resonance Pyramid
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Drivers of Brand Equity
Brand Elements Marketing Activities Meaning Transference
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Brand Elements Brand names URLs Slogans Elements Logos Characters
Symbols
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Brand Elements
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Brand Element Choice Criteria
Memorable Meaningful Likeability Transferable Adaptable Protectible
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The cupped hands are an element of Allstate’s brand
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Slogans Like a good neighbor, State Farm is there Just do it
Nothing runs like a Deere Help is just around the corner Save 15% or more in 15 minutes or less 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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Designing Holistic Marketing Activities
Personalization Integration Internalization
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Figure 9.3 Secondary Sources of Brand Knowledge
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Measuring Brand Equity
Brand Audits Brand Tracking Brand Valuation
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Table 9.2 The 10 Most Valuable Brands
2004 Brand Value (Billions) Coca-Cola $67.39 Microsoft $61.37 IBM $53.79 GE $44.11 Intel $33.50 Disney $27.11 McDonald’s $25.00 Nokia $24.04 Toyota $22.67 Marlboro $22.13
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Interbrand’s Brand Equity Formula
Brand earnings Brand sales Costs of sales Marketing costs Overhead expenses Remuneration of capital charge Taxation Brand strength Leadership (25%) Stability (15%) Market (10%) Geographic spread (25%) Trend (10%) Support (10%) Protection (5%)
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Bucky Lasek for Campbell’s Soup at Hand
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Managing Brand Equity Brand Reinforcement Brand Revitalization
Brand Crises
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Surviving a Brand Crisis
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Devising a Branding Strategy
Develop new brand elements Apply existing brand elements Use a combination of old and new
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Branding Terms Brand line Brand mix Brand extension Sub-brand
Parent brand Family brand Line extension Category extension Branded variants Licensed product Brand dilution Brand portfolio
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Corporate name-individual name combo
Brand Naming Individual names Blanket family names Separate family names Corporate name-individual name combo
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Crest Whitestrips
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Brand Roles in a Brand Portfolio
Flankers Cash Cows Low-end Entry-level High-end Prestige
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Marketing Debate Are brand extensions good or bad? Take a position:
Brand extensions endanger brands. 2. Brand extensions are an important brand-growth strategy.
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Marketing Discussion How can you relate the different
models of brand equity? How are they similar? Different? Can you construct a model that incorporates the best of each?
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