1. Marketing Management, 13th ed9
Creating Brand Equity
Marketing Management, 13th ed

2. 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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3. 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
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

4. Google - 2002 Brand of the Year

5. 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.

6. Attributes of Strong Brands
Excels at delivering desired benefits
Stays relevant
Priced to meet perceptions of value
Positioned properly
Communicates consistent brand messages
Uses multiple marketing activities
Understands consumer-brand relationship
Supported by organization
Monitors sources of brand equity

7. The Role of Brands Identify the maker Simplify product handling
Organize accounting
Offer legal protection

8. The Role of Brands Signify quality Create barriers to entry
Serve as a competitive advantage
Secure price premium

9. Services with the power of a brand.
Branding
Endowing products and
Services with the power
of a brand.

10. The differential effect that Brand knowledge has on
Brand Equity
The differential effect that
Brand knowledge has on
Consumer response to
the marketing of that
brand.

11. Advantages of Strong Brands
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
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12. The marketer’s vision of what the brand must be and do for Consumers.
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.

13. Brand Equity Models Brand Asset Valuator Aaker Model BRANDZ
Brand Resonance
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14. BAV Key Components
Differentiation—degree to which a brand as different from others
Energy—sense of momentum
Relevance—breadth of a brand’s appeal
Esteem—how well the brand is regarded and respected
Knowledge—how familiar and intimate consumers are with the brand
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15. Brand Knowledge
Thoughts
Feelings
Knowledge
Images
Beliefs
Experiences

16. Secondary Sources of Brand Knowledge

17. Aaker Model
Brand identity—unique set of brand associations that represent what the brand stands for and promises to customers (e.g., Ajax—industrial service company)
Core identity elements—product scope, attributes, quality/value, uses, users, country of origin, organizational attributes, brand personality, and symbols (e.g., Ajax has a spirit of excellence)
Extended identity elements—add textual and guidance (e.g., Ajax is worldly but informal, confident and competent)
Brand essence—communicate the brand identity in a compact and inspiring way (e.g., Ajax has a commitment to excellence)
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18. Aaker Model – Brand Identity
Brand-as-product
Brand-as-organization
Brand-as-person
Brand-as-symbol

19. Aaker Model – Brand Assets
Brand loyalty
Brand associations
Brand awareness
Proprietary assets
Perceived quality

20. The BRANDZ Model Presence—Do I know about it?
Bonding
nothing better
Advantage—better than others
Performance—can it deliver?
Relevance—does something for me
Presence—Do I know about it?

21. Brand Resonance Pyramid

22. Drivers of Brand Equity
Brand Elements
Marketing Activities
Meaning Transference

23. Brand Elements Brand names URLs Slogans Logos Characters Symbols

24. Brand Elements

25. Brand Element Choice Criteria
Memorable--recall and recognized
Meaningful--credible
Likeability--aesthetically appealing
Transferable--introduce new product
Adaptable--updatable
Protectible-- legality
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26. Slogans Like a good neighbor, State Farm is there Just do it
Nothing runs like a Deere
We try harder
We’ll pick you up
Nextel – Done
Zoom Zoom
This Bud’s for you

27. Designing Holistic Marketing Activities
Personalization—brand and its marketing are as relevant as possible to as many customers as possible
Integration—mixing and matching marketing activities to maximize their individual and collective effects.
Internalization—activities and processes that help inform and inspire employees.
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28. Internal Branding
Choose the right moment—turning points and ideal opportunities
Link internal and external marketing —messages must match internal and external campaigns
Bring the brand alive for employees —such be informative and energizing
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29. Measuring Brand Equity
Brand Audits—assess health of brand, uncover sources of brand equity, ways to improve
Brand Tracking—baseline information about brands and marketing information
Brand Valuation—estimation of total financial value of the brand

30. The 10 Most Valuable Brands
2006 Brand Value (Billions)
Coca-Cola
$67.00
Microsoft
$56.93
IBM
$56.20 GE
$48.91
Intel
$38.32
Nokia
$30.13
Toyota
$27.94
Disney
$27.85
McDonald’s
$27.50
Mercedes-Benz
$22.13
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31. Managing Brand Equity Brand Reinforcement—meaning of the brand
Brand Revitalization—retain same or create new positioning
Brand Crises

32. Interbrand’s Steps in Calculating Brand Equity
Market segmentation—divide into mutually exclusive segments
Financial analysis—earnings attributed to the intangible assets of the business
Role of branding—degree that the brand directly influences drivers of demand
Brand strength—likelihood that the brand will realize forecast earnings
Brand value calculation—net present value of the forecast brand earnings; discounted by the brand discount rate
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33. Devising a Branding Strategy
Develop new brand elements
Apply existing brand elements
Use a combination of old and new

34. Branding Terms Brand line—all products
Category extension—parent brand is used to enter a different product category from the one it currently serves (Honda automobiles, motorcycles, snow- blowers)
Branded variants—specific bran lines supplied to specific retailers or distribution channels (low and high end cameras)
Licensed product—brand names that had been licensed to other manufacturers to make the product (franchises)
Brand dilution—occurs when consumers no longer associate a brand with a specific product or highly similar products and start thinking less of the brand
Brand portfolio—set of all brands and brand lines a particular firm offers for sale in a particular category or market segment
Brand line—all products
Brand mix—set of all brand lines made available to buyers
*Brand extension—established brand used to introduce a new brand (Hershey Kisses)
*Sub-brand—combine a new brand with an existing brand (American Express Blue Cards)
Parent brand—existing brand that give birth to a brand extension or sub-brand
Family brand—parent brand that is associated with multiple products through extensions (Kraft)
Line extension—parent brand covers a new product within a product categories it currently serves (Dannon yogurt introduced new favors)
* same
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35. Brand Naming Blanket family names (e.g., Heinz, General Electric)
Individual names (e.g., General Mills—Bisquick, Gold Meal Flour)
Blanket family names (e.g., Heinz, General Electric)
Separate family names (e.g., Sears uses Kenmore, Cratsman)
Corporate name combined with individual product names (e.g., Kellogg’s Rice Krispies, Raisin Brain)

36. 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
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37. Brand Roles in a Brand Portfolio
Flankers
Cash Cows
Low-end
Entry-level
High-end
Prestige

38. Brand Roles in a Brand Portfolio
Flankers—fighter brand (flagship)
Cash cows—capitalizing on existing brand equity
Low-end, entry-level—traffic builders
High-end prestige—add prestige and credibility to the entire portfolio
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

39. Study Question 1 The American Marketing Association defines a
________ as “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.”
holistic product concept
product concept
service concept
Brand
brand image
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40. Study Question 2 Consumers learn about brands through
________ and product marketing
programs.
the mass media
past experiences with the product
the sales force
shopping bots
independent information sources
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

41. Study Question 3 product-based brand equity service-based brand equity
The premise of ________ models is that the
power of a brand lies in what customers have
seen, read, learned, thought, and felt about the
brand over time.
product-based brand equity
service-based brand equity
functional-based brand equity
mission-driven brand equity
customer-based brand equity
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

42. Study Question 4 ________ can be defined as the differential
effect that brand knowledge has on consumer
response to the marketing of that brand.
Mission-driven brand equity
Customer-based brand equity
Product-driven brand equity
Service-driven brand equity
Function-based brand equity
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

43. Study Question 5 When a consumer expresses thoughts,
feelings, images, experiences, beliefs, and
so on that become associated with the
brand, the consumer is expressing brand
________.
Knowledge
Loyalty
Behavior
Preference
equity
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall