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© 2010 South-Western, a part of Cengage Learning
All rights reserved.
PowerPoint Presentation by Charlie Cook
The University of West Alabama
CHAPTER
2
Eighth Edition
Marketing Communications Challenges:
Enhancing Brand Equity, Influencing
Behavior, and Being Accountable
1. Explain the concept of brand equity from both the
company’s and the customer’s perspectives.
2. Describe the positive outcomes that result from
enhancing brand equity.
3. Appreciate a model of brand equity from the
customer’s perspective.
4. Understand how marcom efforts must influence
behavior and achieve financial accountability
Chapter Objectives
After reading this chapter you should be able to:
© 2010 South-Western, a part of Cengage Learning. All rights reserved. 2–2
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 2–3
Introduction:
Introduction:
Framework for Marcom Process
Framework for Marcom Process
Fundamental
Decisions
Desired


Outcomes
Implementation
Decisions
Evaluation and
Corrective Action
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 2–4
Basic IMC Issues
Basic IMC Issues
How to enhance
brand equity
How to affect
customer
behavior
How to justify
marcom
investments
How to
demonstrate
financial
accountability
Marketing
Communicators
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 2–5
Basic IMC Issues
Basic IMC Issues


What can marketing communicators do to
What can marketing communicators do to
enhance the equity of their brands?
enhance the equity of their brands?

How can marketing communicators affect the
How can marketing communicators affect the
behavior of their present and prospective
behavior of their present and prospective
customers?
customers?

How can marketing communicators justify their
How can marketing communicators justify their
investments in advertising, sales promotions,
investments in advertising, sales promotions,
and other marcom elements?
and other marcom elements?

How can marketing communications
How can marketing communications
demonstrate financial accountability?
demonstrate financial accountability?
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 2–6
Brand
Brand

Brand

Brand

Is a name, term, sign, symbol, or design.
Is a name, term, sign, symbol, or design.

Identifies and differentiates goods and services of one
Identifies and differentiates goods and services of one
seller or group of sellers from those of the
seller or group of sellers from those of the
competition.
competition.

Communicates a particular set of values.
Communicates a particular set of values.

Brand Equity
Brand Equity

Can be considered either from the perspective of the
Can be considered either from the perspective of the
organization that owns it or from the vantage point of
organization that owns it or from the vantage point of
the customer.
the customer.

Is valuable when consumers believe the brand can
Is valuable when consumers believe the brand can
deliver on its promises.
deliver on its promises.
© 2010 South-Western, a part of

Cengage Learning. All rights
reserved. 2–7
A Firm-Based Perspective on Brand Equity
A Firm-Based Perspective on Brand Equity
Higher
market share
Increased
brand loyalty
Premium
pricing
Revenue
premiums
Effects of Brand
Equity Increases
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 2–8
Children’s Taste Preferences (In percents)
Table 2.1
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 2–9
Brand Equity Increases
Brand Equity Increases

Revenue Premium
Revenue Premium

The revenue differential between a branded item and
The revenue differential between a branded item and

a corresponding private labeled item.
a corresponding private labeled item.

Revenue premium for a branded item (
Revenue premium for a branded item (
b
b
)
)
compared to
compared to
a private label (
a private label (
pl
pl
) =
) =
(volume
(volume
b
b
)(price
)(price
b
b
)
)


(volume

(volume
pl
pl
)(price
)(price
pl
pl
)
)
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 2–10
A Customer-Based Brand Equity Framework
Figure 2.1
Source: Adapted from Kevin Lane Keller, “Conceptualizing, Measuring, and Managing
Customer-Based Brand Equity,” Journal of Marketing 57 (January 1993), 7.
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 2–11
Forms of Brand Knowledge
Forms of Brand Knowledge

Brand Awareness
Brand Awareness

Whether a brand name comes to mind when
Whether a brand name comes to mind when
consumers think about a particular product category
consumers think about a particular product category


The ease with which the name is evoked
The ease with which the name is evoked

Brand Image
Brand Image

The types of associations that come to the
The types of associations that come to the
consumer’s mind when contemplating a particular
consumer’s mind when contemplating a particular
brand
brand

Top-of-Mind Awareness (TOMA)
Top-of-Mind Awareness (TOMA)

Occurs when a brand is the first brand that
Occurs when a brand is the first brand that
consumers recall when thinking about brands in a
consumers recall when thinking about brands in a
particular product category.
particular product category.
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 2–12
The Brand Awareness Pyramid
Figure 2.2
Source: David A. Aaker, Managing Brand Equity (New York: Free Press, 1991), 62.
© 2010 South-Western, a part of
Cengage Learning. All rights

reserved. 2–13
Brand Associations
Brand Associations
Positive
Attributes
Perceived
Benefits
Favorable
Attitude
Brand image
associations that
build brand equity
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 2–14
Dimensions of Brand Personalities
Dimensions of Brand Personalities
Excitement
Sincerity
Ruggedness
Sophistication
Competence
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 2–15
Ways of Enhancing Brand Equity
Ways of Enhancing Brand Equity
Speak-for-Itself
Message-Driven
Leveraging

Enhancing Brand
Equity
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 2–16
Leveraging Brand Meaning from Various Sources
Figure 2.3
Source: Kevin Lane Keller, “Brand Synthesis: The Multidimensionality of Brand Knowledge,”
Journal of Consumer Research 29 (March 2003), 598. By permission of the University of Chicago Press.
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 2–17
Types of Branding for Leveraging
Types of Branding for Leveraging

Co-Branding
Co-Branding

A partnership between two brands
A partnership between two brands

Ingredient Branding
Ingredient Branding

Inclusion of one brand within the other
Inclusion of one brand within the other
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 2–18
What Benefits Result from Enhancing

What Benefits Result from Enhancing
Brand Equity?
Brand Equity?

Increased consumer loyalty
Increased consumer loyalty

Long-term growth and profitability for the brand
Long-term growth and profitability for the brand

Maintain brand differentiation from competitive
Maintain brand differentiation from competitive
offerings
offerings

Insulate brand from price competition
Insulate brand from price competition
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 2–19
Measuring World-Class Brands
Measuring World-Class Brands
Quality
Salience
Equity
Evaluating
World-Class Brands
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 2–20

Characteristics of a World-Class Brand
Characteristics of a World-Class Brand

Delivers benefits
Delivers benefits
consumers want
consumers want

Stays relevant
Stays relevant

Price equals value
Price equals value

Good positioning
Good positioning

Consistency
Consistency

Fits into brand portfolio
Fits into brand portfolio

Brand helps build brand
Brand helps build brand
equity
equity

Brand’s managers
Brand’s managers

understand what the
understand what the
brand means to
brand means to
consumers
consumers

Support over long run
Support over long run

Monitoring of the sources
Monitoring of the sources
of brand equity
of brand equity
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 2–21
Top Ten World-Class Brands Overall (Among 1,030 total
brands included in EquiTrend’s Spring 2006 survey)
Table 2.2
Source: Spring 2006 EquiTrend brand study by Harris Interactive,
(accessed July 26, 2007).
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 2–22
Interbrand’s Top 20 Global Brands, 2007
Table 2.3
Source: Interbrand Report, “Best Global Brands 2007,” />© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 2–23

Affecting Behavior and Achieving
Affecting Behavior and Achieving
Marcom Accountability
Marcom Accountability

The Importance of Brand Awareness
The Importance of Brand Awareness

Creating brand awareness and boosting brand image
Creating brand awareness and boosting brand image
serve little positive effect unless individuals make
serve little positive effect unless individuals make
purchases or engage in desired behaviors
purchases or engage in desired behaviors

Marcom’s objective is ultimately to affect sales
Marcom’s objective is ultimately to affect sales
volume and revenue
volume and revenue
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 2–24
Measuring Marketing Investment
Measuring Marketing Investment
Performance
Performance

Return on Marketing Investment (ROMI)
Return on Marketing Investment (ROMI)


Measures the effect of marcom, or of its specific
Measures the effect of marcom, or of its specific
elements such as advertising, in terms of whether it
elements such as advertising, in terms of whether it
generates a reasonable revenue return on the
generates a reasonable revenue return on the
marcom investment
marcom investment

Why Measure Marcom Effectiveness?
Why Measure Marcom Effectiveness?

Demands for greater accountability on the marketing
Demands for greater accountability on the marketing
function
function

To become better at marcom activities
To become better at marcom activities
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 2–25
Measuring Marketing Investment
Measuring Marketing Investment
Performance
Performance

Difficulties in Measuring Marcom Effectiveness
Difficulties in Measuring Marcom Effectiveness


Choosing an appropriate metric
Choosing an appropriate metric

Gaining agreement on measures
Gaining agreement on measures

Collecting accurate data for marcom assessment
Collecting accurate data for marcom assessment

Determining effects of specific marcom elements
Determining effects of specific marcom elements

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