1588462959-ch-09-creating-brand-equity.ppt

Brand Management

1. Kotler • Keller
Phillip Kevin Lane
Marketing Management • 14e

2. Creating Brand Equity

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Discussion Questions
1.How do consumer characteristics
influence buying behavior?
2.What major psychological processes
influence consumer responses to the
marketing program?
3.How do consumers make purchasing
decisions?
4.In what ways do consumers stray from a
deliberative, rational decision process?

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Strategic Brand Management
Identify
Plan
Measure/
Interpret
Grow

5. “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.”
Brand

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Role of Brands
Consumer Benefits
Brands:
•Identify source/maker
•Simplifies decision making
•Reduces risk

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Role of Brands
Brands:
•Simplify product handling
•Protect unique features
•Create loyalty
•Establish barriers to entry
Marketer Benefits

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Scope of Branding
Creating difference between products
Brand

9. The added value endowed on products
and services because of the brand.
Brand Equity

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Customer-based Brand Equity
Differences in
consumer response
Consumers’ brand
knowledge
Perceptions, preferences,
and behaviors

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Brand Promise
What the brand must be
and do for consumers.

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Brand Equity Models
1.BrandAsset Valuator (BAV)
2.BrandZ
3.Brand Resonance Model

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BrandAsset® Valuator Model

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Universe of Brand Performance
These brands have
relevance, but only
to a small audience.
These brands are
not well known.
Many are new,
others are lost.
Customers find
these brand
irresistible. They
have high earnings
and margin power.
These brands can’t
overcome what is
already known
about them.

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Brand Dynamics Pyramid

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Brand Resonance Pyramid

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Building Brand Equity
Brand Equity
Brand
Elements
Marketing
Activities
Secondary
Associations

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1.Brand Elements
•Brand Names
•URLs
•Logos
•Symbols
•Characters
•Spokespeople
•Slogans
•Jingles
•Packages
•Signage

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Brand Element Choice Criteria
Memorable
Meaningful
Likable
Transferable
Adaptable
Protectable
1.Brand Builders
2.Defensive

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Developing Brand Elements
•Easy to recall
•Descriptive
•Persuasive
What was the
name of that
cookie I like?

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2.Holistic Marketing Activities
Word of Mouth
Observation
Interactions w/company

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3.Secondary Associations
Brand
Geographic Regions
Other Brands
Characters
Spokespeople
Sporting Events

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Secondary Source of Brand Knowledge

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Internal Branding
Brand
Promise
Employees
Partners

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Brand Communities
Members have:
•Brand Connection
•Shared rituals/stories
•Responsibility to community
H.O.G.®
Harley Owners Group

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Measuring Brand Equity
Brand Audit
Brand-tracking Studies

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Brand Value Chain

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Rank Brand 2009 BrandValue (Billions)
1 Coca-Cola $68.7
2 IBM $60.2
3 Microsoft $56.6
4 GE $47.8
5 Nokia $34.9
6 McDonald’s $32.3
7 Google $32.0
8 Toyota $31.3
9 Intel $30.6
10 Disney $28.4
World’s 10 Most Valuable Brands

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Interbrand Brand Valuation

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Managing Brand Equity
Brand Reinforcement
Brand Revitalization

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Branding Strategy
Develop new brand elements
Apply existing brand elements
Combine new and existing elements

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Branding Strategy
Line Extension Category Extension
Parent Brand
(Master or Family Brand)
Tide
-Fruit on the Bottom
-Fruit Blends
Honda
-Automobiles
-Lawn Mowers

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Branding Decisions
Sub-brand name
Company Brand
GE, Heinz, Campbell Soup
Individual Brand Names
•Bisquick
•Gold Medal
•Wheaties
•Yoplait
Kellogg’s Rice Krispies, Frosted Flakes…

34. A brand portfolio is the set of all brands
and brand lines a particular firm offers
for sale in a particular category or
market segment.
Brand Portfolio

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Brand Portfolio -Sony
Computer Cameras
Televisions
Theatre
Portable
Electronics
Sony
Pictures
Games
VAIO
-notebook
-desktop
Digital Home
Disc Burner
Location Free
mylo
Software
Cyber-shot
Alpha SLR
HandyCam
Printers
Digital
picture
frames
Photo
services
Televisions
Home
theatre
systems
Blu-ray Disc
DVD players
Home audio
components
Walkman
Video MP3
Rolly
Reader
Digital Book
Sony Cell
Phone
GPS
Movies
-Theatre
-DVD
-Blue-ray
Television
-Comedy
-Drama
-Daytime
-Cartoons
Music
PlayStation
-PS3
-PS2
-Portable

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Brand Roles
Cash Cows
Flankers
Low-end Entry Level
High-end Prestige

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Brand Extensions
Improve the odds of new-product success