Creating
Brand Equity
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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?
10-2
Kerala Tourism has successfully branded
the destination with a brand name, logo,
and the tagline Gods Own Country
10-3
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
10-4
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.
10-5
The Role of Brands
Identify
Identify the
the maker
maker
Simplify
Simplify product
product
handling
handling
Organize
Organize accounting
accounting
Offer
Offer legal
legal
protection
protection
10-6
The Role of Brands
Signify
Signify quality
quality
Create
Create barriers
barriers to
to
entry
entry
Serve
Serve as
as a
a competitive
competitive
advantage
advantage
Secure
Secure price
price
premium
premium
10-7
What is Branding?
Branding is endowing products
and services with the power of
the brand.
10-8
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.
10-9
Advantages of Strong Brands
Improved
perceptions of
product
performance
Greater loyalty
Less vulnerability
to competitive
marketing actions
Less vulnerability
to crises
1011
Larger margins
More inelastic consumer response
more loyalty
Increased marketing
communications effectiveness
Apple is a Strong Brand
1012
What is a Brand Promise?
A brand promise is the marketers vision
of what the brand must be and do for
consumers.
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Brand Equity Models -vvv
imp!
Brand Asset Valuator
Aaker Model
BRANDZ
Brand Resonance
1014
BAV Key Components
Differentiation
Energy
Relevance
Esteem
Knowledge
1015
Figure 10.3 Brand Dynamics
Pyramid
Strong Relationship
Bonding
Advantage
Performance
Relevance
Presence
Weak Relationship
1016
Aaker Model
Brand Identity
Core Identity
Elements
Extended Identity
Elements
Brand Essence
1017
Figure 10.3 Brand Resonance Pyramid
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Brand Elements
Brand
names
Slogans
Elements
Characters
Symbols
10-
19
URLs
Logos
Brand Element Choice
Criteria
Memorable
Meaningful
Likeability
Transferable
Adaptable
Protectible
10-20
Internal Branding
Choose the right moment
Link internal and external marketing
Bring the brand alive for employees
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Figure 10.4 Secondary Sources of
Brand Knowledge
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Measuring Brand Equity
Brand
Brand Audits
Audits
Brand
Brand Tracking
Tracking
Brand
Brand Valuation
Valuation
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Table 10.2 The 10 Most Valuable Brands
Brand
2006 Brand Value (Billions)
Coca-Cola
$67.00
Microsoft
$56.93
IBM
$56.20
GE
$48.91
Intel
$38.32
Nokia
$30.13
Toyota
$27.94
Disney
$27.85
McDonalds
$27.50
Mercedes-Benz
$22.13
10-
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Managing Brand Equity
Brand
Brand Reinforcement
Reinforcement
Brand
Brand Revitalization
Revitalization
Brand
Brand Crises
Crises
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Devising a Branding Strategy
Develop
Develop new
new brand
brand
elements
elements
Apply
Apply existing
existing brand
brand
elements
elements
Use
Use a
a combination
combination of
of
old
old and
and new
new
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Branding Terms
Brand line
Brand mix
Brand extension
Line extension
Sub-brand
Category extension
Parent brand
Branded variants
Licensed product
Family brand
Brand dilution
Brand portfolio
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Brand Naming
Individual
Individual names
names
Blanket
Blanket family
family names
names
Separate
Separate family
family
names
names
Corporate
Corporate namenameindividual
individual name
name
combo
combo
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Crafting the Brand Positioning
Chapter Questions
How can a firm choose and communicate
an effective positioning in the market?
How are brands differentiated?
What marketing strategies are appropriate
at each stage of the product life cycle?
What are the implications of market
evolution for marketing strategies?
.
11-37
Positioning
of Caf
Coffee Day
11-38
What is Positioning?
Positioning is the act of designing the
companys offering and image to occupy a
distinctive place in the mind of the target
market.
.
11-39
Value Propositions
Scorpio, Mahindra and Mahindra
A vehicle that provides the luxury and
comfort of a car, and the adventure and
thrills of an SUV
Dominos
A good hot pizza, delivered to your door
within 30 minutes of ordering, at a moderate
price
.
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Defining Associations
Points-of-parity
Points-ofdifference
(POPs)
Associations
(PODs)
that are not
Attributes or
necessarily
benefits consumers
unique to the
strongly associate
brand but may
with a brand,
be shared with
positively evaluate,
other brands
and believe they
could not find to the
.
same extent with a
11-41
Establishing Category Membership
This four-in-one
entertainment
solution from
Konica failed to
establish category
membership
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Conveying Category
Membership
Announcing
Announcing category
category
benefits
benefits
Comparing
Comparing to
to exemplars
exemplars
Relying
Relying on
on the
the product
product
descriptor
descriptor
.
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Consumer Desirability Criteria for PODs
Relevance
Relevance
Distinctiveness
Distinctiveness
Believability
Believability
.
11-44
Deliverability Criteria for PODs
Feasibility
Feasibility
Communicability
Communicability
Sustainability
Sustainability
.
11-45
Examples of Negatively Correlated
Attributes and Benefits
Low-price vs.
High quality
Taste vs. Low
calories
Nutritious vs.
Good tasting
Efficacious vs.
Mild
Powerful vs.
Safe
Strong vs.
Refined
Ubiquitous vs.
Exclusive
Varied vs.
Simple
.
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Addressing negatively correlated
PODs and POPs
Present separately
Leverage equity of another entity
Redefine the relationship
.
11-47
Differentiation Strategies
Product
Personnel
Channel
Image
.
11-48
Marketing Debate
Do brands have finite lives?
Take a position:
1. Brands cannot be expected to last
forever.
or
2. There is no reason for a brand to
ever become obsolete.
.
11-49
Marketing Discussion
What strategies do firms use to
try to position themselves on the
basis of pairs of attributes and
benefits?
.
11-50
