Strategic market management chapter 9

Chapter Nine

© 2007 John Wiley & Sons

Building & Managing Brand
Equity

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Chapter 9 - Building and Managing Brand Equity

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Brand
Awareness

© 2007 John Wiley & Sons

Brand
Equity
Brand
Associations

Brand
Loyalty

Brand equity—Assets and liabilities connected to the brand

Chapter 9 - Building and Managing Brand Equity

Figure 9.1

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Brand Awareness

• Provides sense of familiarity

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• Signal of commitment and substance
• Salience will help it get considered

Chapter 9 - Building and Managing Brand Equity

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Brand Loyalty

• Reduces marketing costs

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• Creates entry barrier

• Generates a positive image
• Provides time to respond to competitor moves

Chapter 9 - Building and Managing Brand Equity

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Brand Associations

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• Attribute/benefit associations provide a reasonto-buy but are easily copied.
• Going beyond to other value propositions
–
–
–
–
–
–

Product category—relevance
Personality
Organizational associations
Emotional or self-expressive benefits
The experience
Being global

Chapter 9 - Building and Managing Brand Equity

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Brand Identity
Brand Identity?

© 2007 John Wiley & Sons

Aspirational external brand image for internal
communication

Chapter 9 - Building and Managing Brand Equity

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Brand Identity Principles
• Multiple dimensions/elements—not just a
three word phrase
• No restrictions—beyond attributes/benefits
• Dimensions/Elements are prioritized
– Core identity—more important elements

© 2007 John Wiley & Sons

• Source of differentiation, resonance, parity, and strategy
• Drive major programs, initiatives

– Extended identity provides texture and
completeness—helps determine what is on-brand

• Essence—Optional
• Internal communication
– vs. position/tagline—what we communicate
externally now

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Why Brand Identity?
Externally
-Shape our brand image

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-Provide basis for relationships and choice
Internally
-Stimulate programs and prioritize initiatives
-Inspire people

Chapter 9 - Building and Managing Brand Equity

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Identify What to Stand for
B-to-B Service Company
Close to

Customers
Geographically &
Culturally
Value
Creation

Informal
World-Class

Open
Communication

Collaborator

© 2007 John Wiley & Sons

Local People
Culture

Committed
To Excellence

Bold
Without
Arrogance

Global

Best-of-Breed

Customized
Solutions

Chapter 9 - Building and Managing Brand Equity

Straightforward

World
Health

Resourceful

Gets Job
Done

Confident

Broad
Capability

Technology
that Works

Competent
Flexible

Dynamic

Diversified
Perspective

Experienced
Team
Oriented
Risk-Sharing
Partner
In-Depth
Understanding
Of Customers

Partner
With Customers
Multi-Cultural

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Brand Identity--Potential Dimensions
Attributes/benefits/branded differentiators
Personality
Organizational associations
Emotional & self-expressive benefits
Product class relevance-scope

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•
•
•
•

•

Chapter 9 - Building and Managing Brand Equity

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Customization

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Value for
Performance

Direct Model

Simple
As Dell

Close to Customer
Understands needs
•
Equipment
•
Communication

Chapter 9 - Building and Managing Brand Equity

Latest
Technology

Incredible Service
Dell Responds

Personality
Competent, Successful
Serious (not Apple)
Approachable
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Guidelines:
- Use only constructs that are helpful and fit!

© 2007 John Wiley & Sons

- Do not feel compelled to use all dimensions!

Chapter 9 - Building and Managing Brand Equity

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Identify Brand Identity Elements
Cluster & Label—Try different combinations
Partner
With Customers

Close to
Customers

Geographically &
Culturally

Customized
Solutions

Team
Solutions
Collaborative

© 2007 John Wiley & Sons

------------------------------------------------------------------------------------------------------.
Open
Communication

Partner
With Customers
Close to
Customers
Geographically &
Culturally

Chapter 9 - Building and Managing Brand Equity

Customized
Solutions
Collaborative

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Identify Brand Identity Elements
Cluster and Label

Confident,
Competent

Worldly
but Informal

Team
Solutions

© 2007 John Wiley & Sons

Spirit of
Excellence

Global Network
Of Local Experts

Chapter 9 - Building and Managing Brand Equity

Technology
That Fits

Support
World Heath

Open
Communicator
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Identify Core Identity Elements
Core—Most Important

Worldly
but Informal

Core Identity

© 2007 John Wiley & Sons

Spirit of
Excellence

Global Network
Of Local Experts

Chapter 9 - Building and Managing Brand Equity

Confident,
Competent

Team
Solutions

Technology

That Fits

Support
World Health

Open
Communicator
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The Brand Essence
A compact theme or concept that represents
much or all of the core identity

Worldly
but Informal

© 2007 John Wiley & Sons

Spirit of
Excellence

Global Network
Of Local Experts

Chapter 9 - Building and Managing Brand Equity

Core Identity
Commitment to
Excellence—anytime,

anywhere, whatever it
takes

Confident,
Competent

Team
Solutions
Support
World Heath

Technology
That Fits

Open
Communicator
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The Brand Essence
Essence: A compact theme or concept that represents
much or all of the core identity—for internal communication

© 2007 John Wiley & Sons

vs. Tagline: Summarizes the position—for external communication
Tagline can be but rarely is the essence
-Do you Yahoo?
-Did somebody say McDonald’s
-Like a rock (Chevy Trucks)

Essence can be:
-understated
Just works better
-focused on functional benefits
German engineering (VW)
Casual luxury (Banana Republic)
-focused on emotional benefits
Power to be your best (Apple)
Do more (American Express) - Note the dual meaning

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Nike Core Identity & Essence
Illustrative

• Brand Essence
Brand Identity Model™

– Performing at Your Best

• Core Identity

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Excellence

Exhilaration

Performing
at Your
Best
Individual
Success

Chapter 9 - Building and Managing Brand Equity

–
–
–
–

Excellence/Winning
Exhilaration
Individual Success
Technological Advancement

Technological
Advancement

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© 2007 John Wiley & Sons

Brand Identity Objectives

Chapter 9 - Building and Managing Brand Equity

• Resonate
• Differentiate or reflect
points of parity
• Reflect Strategy
• Have Clarity

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Resonate with Customers
Anticipate
Needs

© 2007 John Wiley & Sons

Close to
Customers
Geographically &
Culturally

Customized
Solutions

Team
Solutions
Collaborative

Resonance—it should matter to customers & add value
e.g. Customer now demand total solutions

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Differentiation/Points of Parity
Anticipate
Needs

Customized
Solutions

Team
Solutions

© 2007 John Wiley & Sons

Close to
Customers
Geographically &
Culturally

Collaborative

Differentiation—Unique or different assets and
programs
e.g. Multi-cultural staff
Parity—dimensions on which the brand needs to be
perceived as adequate so that competitor brand

strengths are neutralized

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Credibility—Proof Points &
Strategic Imperatives
Anticipate
Needs

Customized
Solutions

Team
Solutions

© 2007 John Wiley & Sons

Close to
Customers
Geographically &
Culturally

Collaborative

Proof points—Existing strengths and programs that provide credibility
e.g. Have the organizational scope and capability to do it all
Strategic Imperative—Assets and Programs needed to deliver future

credibility
e.g. Build incentives—team behavior and culture; reduce arrogance

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Reflect the Strategy
Anticipate
Needs

© 2007 John Wiley & Sons

Close to
Customers
Geographically &
Culturally

Customized
Solutions

Team
Solutions
Collaborative

Reflect strategy—it should reflect the strategy direction and initiatives
e.g. the firm is committed to breaking down silos
and creating a seamless systems solutions

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Positioning
Positioning
Brand identity
Aspirational associations
Customer promise

Positioning
© 2007 John Wiley & Sons

Short-term communication objectives
Depth

Time Frame

Identity

Rich

Long-term

Position

Focused

Immediate

Chapter 9 - Building and Managing Brand Equity


Position

© 2007 John Wiley & Sons

To inspire and serve athletes everywhere
• More focused
• More Immediate

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