MARKETING MANAGEMENT
12th edition9
Creating
Brand Equity
9-2
Chapter Questions
• What is a brand and how does branding
work?
• What is brand equity?
• How is brand equity built, measured, and
managed?
9-3
9-4
Brand
A name, term, sign, symbol
or design, or a combination of them,
intended to identify the goods
9-5
Attributes of Strong Brands
• Excels at delivering desired benefits
• Stays relevant • Priced to meet
perceptions of value • Positioned properly • Communicates
consistent brand messages
• Well-designed brand hierarchy
• Uses multiple
marketing activities • Understands
consumer-brand relationship
• Supported by organization
9-6
The Role of Brands
Identify the maker Identify the maker
Simplify product handling Simplify product handling
Organize accounting Organize accounting
9-7
The Role of Brands
Signify quality Signify quality
Create barriers to entry Create barriers to entry
Serve as a competitive advantage
Serve as a competitive advantage
9-8
Branding
9-9
Brand Equity
The differential effect that brand
knowledge has on consumer
response to the
9-10
Brand Knowledge
Knowledge
Thoughts
Experiences
Beliefs
Images
9-11
Brand Associations
Strong
Unique
9-12
Marketing Advantages of Strong Brands
• Improved perceptions of product performance
• Greater loyalty
• Less vulnerable to competition
• Less vulnerable to crises • Larger margins
• Inelastic consumer response to price increases
• Elastic consumer response to price decreases
• Greater trade cooperation • Increase in
effectiveness of IMC • Licensing opportunities • Brand extension
9-13
9-14
Brand Promise
The marketer’s vision of what
the brand must be and do for
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9-16
Brand Equity Models
• Brand Asset Valuator
• Aaker Model
• BRANDZ
9-17
Brand Asset Valuator (BAV)
9-18
9-19
Aaker Model – Brand Identity
Brand-as-product
9-20
Aaker Model – Brand Assets
Brand loyalty Brand
associations
Perceived quality
Brand awareness
9-21
The BRANDZ Model
Presence Relevance Performance
Advantage
9-23
Drivers of Brand Equity
Brand Elements
Marketing Activities
9-24
Brand Elements
Elements Slogans
Brand
names URLs
Logos
9-25
9-26
Brand Element Choice Criteria
• Memorable
• Meaningful
• Likeability
• Transferable
• Adaptable
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9-28
Slogans
• 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
• We try harder
• We’ll pick you up • Nextel – Done • Zoom Zoom • I’m lovin’ it
9-29
Designing Holistic Marketing
Activities
Personalization
Integration
9-30
9-31
Measuring Brand Equity
Brand Audits Brand Audits
Brand Tracking Brand Tracking
9-32
Table 9.2 The 10 Most Valuable Brands
Brand 2004 Brand Value (Billions)
9-33
Interbrand’s Brand Equity Formula
Brand earnings
• Brand sales • Costs of sales • Marketing costs
• Overhead expenses • Remuneration of
capital charge • Taxation
Brand strength
• Leadership (25%) • Stability (15%)
• Market (10%)
• Geographic spread (25%)
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9-35
Managing Brand Equity
Brand Reinforcement Brand Reinforcement
Brand Revitalization Brand Revitalization
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9-37
Devising a Branding Strategy
Develop new brand elements
Develop new brand elements
Apply existing brand elements
Apply existing brand elements
Use a combination of old and new
9-38
Branding Terms
• Brand line • Brand mix
• Brand extension • Sub-brand
• Parent brand • Family brand
• Line extension
• Category extension • Branded variants • Licensed product • Brand dilution
9-39
Brand Naming
Individual names Individual names
Blanket family names Blanket family names
Separate family names Separate family names
Corporate
name-individual name combo Corporate
9-40
9-41
Brand Roles in a Brand Portfolio
Flankers
Low-end
Entry-level
9-42
Marketing Debate
Are brand extensions good or bad?
Take a position:
9-43
Marketing Discussion
How can you relate the different
models of brand equity? How are
they similar? Different? Can you
