Brand Equity

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• Brand Equity
• Brand Identity

Positioning the competition means definingthe
rules of the game in the marketplace.
Sergio Zyman
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A Brand is any...
that distinguishes a product from its
competition.
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Brand Image

• A mental image that reflects the way consumers
  perceive a brand.
  
• Physical design, letters, shapes, art, colors
• Psychological emotions, beliefs, values

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Characteristics of Good Brand Names
Easy to say and remember
Virginia Slims
Spic and Span
Pronounceable in only one way
Positive in connotation
Angel
Communicative of product attributes
Duracell
Jiffy
Short and distinctive
Legally protectable
Fruit 'n Fibre
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Basic Branding Strategies
Manufacturer Discount
Manufacturer Brands
Brands
Private Label Brands
Generics (no brand)
Toothpaste
Mint
Toothpaste
Toothpaste
Flavor
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Brand Equity

• Brand Equity is a set of assets (and
  liabilities) linked to a brands name and symbol
  that adds to (or substracts from) the value
  provided by a product or service to a firm and/or
  that firms customers.

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Categories of Assets

• Brand name awareness
• Brand loyalty
• Perceived Quality
• Brand Associations
• Other Proprietary Brand Assets (e.g., channel
  relationships, patents,)

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Brand Equity Increases Value
Brand Loyalty
Brand Awareness
Value to Customer
Perceived Quality
Brand Equity
Value to Firm
Brand Associations
Other Brand Assets
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Brand Name Awareness

• Anchor to which other associations can be
  attached
  
• Familiarity-liking
• Signal of substance/commitment
• Brands to be considered
• Examples
• Coke seal
• DuPont strategic

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Brand Loyalty

• Reduced marketing costs
• Trade leverage
• Attracting new customers
• Create awareness
• Reassurance
• Time to respond to competitive threats
• Examples
• Delta ad

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Perceived Quality

• Reason-to-buy
• Differentiate/Position
• Price
• Channel member interest
• Extensions
• Examples
• Jack in the box COPS
• American Express

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Brand Associations

• Help process/retrieve information
• Reason-to-buy
• Create positive attitude/feelings
• Extensions Gerber Singles
• Examples
• Nordstrom Reinvent
• 7-Eleven Belly-flop

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Brand Equity and Brand Value

• Brand Equity provides value to customers
• Interpretation/processing of information
• Confidence in the purchase decision
• Use satisfaction

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Brand Equity and Brand Value

• Brand Equity provides value to firm
• Efficiency and effectiveness of marketing
  programs
  
• Brand loyalty
• Prices/margins
• Brand extensions
• Trade leverage
• Competitive advantage

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Brand Building Inhibitors

• Pressure to compete on price
• Proliferation of competitors
• Fragmenting markets and media
• Complex brand strategies and relationships
• Bias toward changing strategies
• Bias against innovation
• Pressure to invest elsewhere
• Short-term pressures

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Brand Equity and Brand Identity
Brand Identity
Brand Associations
Brand Equity
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Brand Identity

• A brand identity provides direction, purpose and
  meaning for the brand. It is central to a
  brands strategic vision and the driver of one of
  the four principal dimensions of brand equity
  associations, which are the heart and soul of the
  brand.

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Brand Identity

• Brand identity is a unique set of brand
  associations that the brand strategist aspires to
  create or maintain. These associations represent
  what the brand stands for and imply a promise to
  customers from the organization members.

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Brand Identity is more than...

• Brand image (how the brand is perceived now)
• Brand position (the part of the brand identity
  and value proposition to be actively communicated
  to a target audience)
  
• Product attributes
• An external perspective (i.e., customer-based)

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Brand Identity System

• A brands identity can be viewed from four
  perspectives
  
• brand as product
• brand as organization
• brand as person
• brand as symbol
• When we view a brand from all these perspectives,
  it is easier to develop/reinforce a Value
  Proposition, Credibility and, ultimately, a
  Relationship with the customer.

HARLEY DAVIDSON SITE
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Brand Identity System
Brand Identity
Brand as Product
Brand as Organization
Brand as Person
Brand as Symbol
Value Proposition
Credibility
Brand-Customer Relationship
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Dimensions of Brand Identity

• Brand as Product
• Product Scope
• Product Attributes
• Quality/value
• Uses
• Users
• Country of Origin

Timex Ad Harley Site
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Dimensions of Brand Identity

• Brand as Organization
• Organization attributes (e.g., innovation,
  consumer concern, trustworthiness)
  
• Local vs. global

Enbridge Home Services Harley Site
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(No Transcript)
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Dimensions of Brand Identity

• Brand as Person
• Personality (e.g., genuine, energetic, rugged,)
• Brand-customer relationships (e.g., friend,
  adviser,)
  

Chevy Monte Carlo Ad Harley Site
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Dimensions of Brand Identity

• Brand as symbol
• Visual imagery and metaphors
• Brand heritage

Apple Ad Harley Site
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Value Proposition

• Functional Benefits A BMW car handles well,
  even on ice.
  
• Emotional Benefits Excited in a BMW.
• Self-Expressive Benefits Sophisticated and
  successful in a BMW.

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Brand Position

• Brand position is the part of the brand identity
  and value proposition that is to be actively
  communicated to the target audience and that
  demonstrates an advantage over competing brands
• JC Penneys position
• Girl Scouts position

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Brand Position

• What elements of BI to include? Candidates
• Core identity central, timeless essence of the
  brand (most unique, valuable aspects)
  
• Points of leverage specific keys to success
  (e.g., Ronald McDonald)
  
• The value proposition a key benefit part of the
  value proposition (functional, self-expressive,)
  

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Brand identity position provide value

• Guides and enhances brand strategy
• Improves brand memorability
• Provides meaning and focus to the organization
• Provides extension options
• Co-branding at Yahoo
• In sum, provides
• value proposition
• credibility to other brands
• basis of relationship