MARKETING MANAGEMENT
12
thedition
9 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
Brand
A name, term, sign, symbol
or design, or a combination of them, intended to identify the goods
9-4
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
Monitors sources of brand
9-5
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
9-6
Branding
9-7
Brand Equity
The differential effect that brand knowledge has on consumer
response to the
9-8
Brand Associations
Strong
Unique
9-9
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
9-10
Brand Promise
The marketer’s vision of what the brand must be and do for
9-11
Brand Equity Models
Brand Asset Valuator
Aaker Model
BRANDZ
9-12
Drivers of Brand Equity
Brand elements
Marketing activities
9-13
Brand Elements
Brand names Slogans
Characters
9-14
Brand Element Choice Criteria
Memorable Meaningful Likeability
9-15
Slogans
Like a good neighbor,
State Farm is there
Just do it
minutes or less
We try harder
We’ll pick you up Nextel – Done Zoom Zoom I’m lovin’ it
9-16
Measuring Brand Equity
Brand audits
Brand tracking
9-17
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%) Trend (10%)
9-18
Managing Brand Equity
Brand reinforcement
Brand revitalization
9-19
Devising a Branding Strategy
Develop new brand elements
Apply existing brand elements
9-20
Branding Terms
Brand line Brand mix
Brand extension Sub-brand
Parent brand Family brand
Line extension
Category extension Branded variants Licensed product Brand dilution
9-21
Brand Naming
Individual names
Blanket family names
Separate family names
9-22
Brand Roles in a Brand Portfolio
Flankers
Cash cows
Low-end entry-level
