Marketing management topic 1 creating brand equity

MARKETING MANAGEMENT
Topic 1
Creating
Brand Equity

Kotler

Keller


Chapter Questions
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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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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
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Excels at delivering
desired benefits
Stays relevant
Priced to meet
perceptions of value
Positioned properly
Communicates
consistent brand
messages

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Well-designed brand
hierarchy

Uses multiple marketing
activities
Understands consumerbrand relationship
Supported by organization
Monitors sources of brand
equity

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

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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 Associations
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Strong
Unique
Favorable

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Marketing Advantages of Strong Brands
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Improved perceptions of
product performance
Greater loyalty
Less vulnerable to
competition
Less vulnerable to crises
Larger margins
Inelastic consumer
response to price increases

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Elastic consumer
response to price
decreases
Greater trade cooperation
Increase in effectiveness
of IMC
Licensing opportunities
Brand extension
opportunities

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Brand Promise
The marketer’s vision of what
the brand must be and do for
Consumers.

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Brand Equity Models
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Brand Asset Valuator
 Aaker Model

 BRANDZ
 Brand Resonance

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Drivers of Brand Equity
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Brand elements
Marketing activities
Meaning transference

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Brand Elements
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Brand names
Slogans
Characters

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URLs
Logos
Symbols

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Brand Element Choice Criteria
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Memorable
Meaningful
Likeability

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Transferable
Adaptable
Protectible

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Slogans
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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

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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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Measuring Brand Equity
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Brand audits
Brand tracking
Brand valuation

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Interbrand’s Brand Equity
Formula
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Brand earnings
Brand sales
Costs of sales

Marketing costs
Overhead expenses
Remuneration of
capital charge
Taxation

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Brand strength
Leadership (25%)
Stability (15%)
Market (10%)
Geographic spread (25%)
Trend (10%)
Support (10%)
Protection (5%)

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Managing Brand Equity
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Brand reinforcement
Brand revitalization
Brand crises

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Devising a Branding Strategy
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Develop new brand elements
Apply existing brand elements
Use a combination of old and new

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Branding Terms
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Brand line

Brand mix
Brand extension
Sub-brand
Parent brand
Family brand

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Line extension
Category extension
Branded variants
Licensed product
Brand dilution
Brand portfolio

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Brand Naming
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Individual names

Blanket family names
Separate family names
Corporate name/individual name combo

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Brand Roles in a Brand Portfolio
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Flankers
Cash cows
Low-end entry-level
High-end prestige

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