Transcript LECTURE 08.ppt

LECTURE-8
Creating
Brand Equity
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?
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.
What is a Brand?
A brand is 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.
The Role of Brands
•
•
•
•
•
•
•
•
Identify the maker
Simplify product handling
Organize accounting
Offer legal protection
Signify quality
Create barriers to entry
Serve as a competitive advantage
Secure price premium
What is Branding?
Branding is endowing products and services
with the power of the brand.
What is Brand Equity?
Brand equity is the added value endowed on
products and services, which may be reflected in
the way consumers, think, feel, and act with
respect to the brand.
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
What is a Brand Promise?
A brand promise is the marketer’s vision of what
the brand must be and do for consumers.
Brand Equity Models
• Brand Asset Valuator
• Aaker Model
• BRANDZ
• Brand Resonance
Brand Asset Valuator (BAV)
Advertising agency Young and Rubicam (Y & R)
developed a model of brand equity called Brand
Asset Valuator (BAV)
BAV Key Components
• Differentiation
• Measures the degree to which a brand is seen as
different from others.
• Energy
• Measures the brand’s sense of momentum.
• Relevance
• Measure the breadth of a brand’s appeal.
BAV Key Components…
• Esteem
• Measures how well the brand is regarded & respected.
• Knowledge
• Measure how familiar & intimate consumers are with
the brand.
Aaker Model
• Brand identity
• The unique set of brand associations.
• Core identity elements
• Typically 8-10 elements that represent concepts.
• Extended identity elements
• Add texture & guidance.
• Brand essence
• Brand identity in a compact & inspiring way.
Drivers of Brand Equity
• Brand elements
• These are those trademarkable devices that identify &
differentiate the brand.
• Marketing activities
• Meaning transference
Brand Elements
• Brand names
• Slogans
• Characters
• Symbols
• Logos
• URLs
BRAND LOGO
BRAND CHARACTERS
BRAND SYMBOL
Brand Element Choice Criteria
•
•
•
•
•
•
Memorable
Meaningful
Likeability
Transferable
Adaptable
Protectible
Slogans
• Like a good neighbor,
State Farm is there
• Just do it
• Nothing runs like a
Deere
• I’m lovin’ it
• We try harder
• Always low prices
Designing Holistic Marketing Activities
• Personalization
• Integration
• Internalization
Internal Branding
• Choose the right moment
• Link internal and external marketing
• Bring the brand alive for employees
Measuring Brand Equity
• Brand audits
• A consumer focused series of procedures to
assess the health of the brand (Equity)
• Brand tracking
• Quantitative data from consumers on a routine
basis over time.
• Brand valuation
• Total financial value of the brand.
The 10 Most Valuable Brands
Brand
Brand Value (Billions)
Coca-Cola
Microsoft
IBM
GE
$67.00
$56.93
$56.20
$48.91
Intel
Nokia
Toyota
$38.32
$30.13
$27.94
Disney
McDonald’s
Mercedes-Benz
$27.85
$27.50
$22.13
Managing Brand Equity
• Brand reinforcement
• Brand revitalization
• Brand crises
Interbrand’s Steps in Calculating Brand
Equity
•
•
•
•
•
Market segmentation
Financial analysis
Role of branding
Brand strength
Brand value calculation
Devising a Branding Strategy
• Develop new brand elements
• Apply existing brand elements
• Use a combination of old and new
Branding Terms
• Brand line
• All products
• Brand mix
•
Set of all brand lines
• Brand extension
• Introduce a new product
• Sub-brand
• Brand extension can also called
sub- brand
• Parent brand e.g Lifebuoy
• Family brand e.g Honda
• Line extension
• New product with in a
product category
•
•
•
•
•
Category extension
Branded variants
Licensed product
Brand dilution
Brand portfolio
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.
Brand Roles in a Brand Portfolio
•
•
•
•
Flankers
Cash cows
Low-end, entry-level
High-end prestige
Bibliography
 Marketing Management – A South Asian Perspective
by Philip Kotler, Kevin Lane Keller, Abraham Koshy &
Mithileshwar Jha, 13th Edition, Published by Pearson
Education, Inc.
 Strategic Marketing Management – Meeting The
Global Marketing Challenges by Carol H. Anderson &
Julian W. Vincze Published by Houghton Mifflin Company.
 Principles of Advertising & IMC by Tom Duncan 2nd
Edition, Published by McGraw-Hill Irwin.
 Principles of Marketing by Philip Kotler & Gary Armstrong
Thirteenth Edition, Published by Prentice Hall
"Success doesn't come to you,
you go to it."
Marva Collins
The End…