6b-1

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6b

• Creating Brand Equity

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Key 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?

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Google - 2002 Brand of the Year
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Brand
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.
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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 equity

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The Role of Brands
Identify the maker
Simplify product handling
Organize accounting
Offer legal protection
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The Role of Brands
Signify quality
Create barriers to entry
Serve as a competitive advantage
Secure price premium
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Branding
Endowing products and services with the power of
a brand.
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Brand Equity
The differential effect that brand knowledge has
on consumer response to the marketing of that
brand.
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Brand Knowledge
Thoughts
Feelings
Knowledge
Images
Beliefs
Experiences
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Brand Associations
Strong
Unique
Favorable
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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 opportunities

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Branding a Place
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Brand Promise
The marketers vision of what the brand must be
and do for Consumers.
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The Virgin Brand
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Brand Equity Models

• Brand Asset Valuator
• Aaker Model
• BRANDZ
• Brand Resonance

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Brand Asset Valuator (BAV)
Brand Equity
Differentiation
Knowledge
Relevance
Esteem
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BAV Power Grid
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Aaker Model Brand Identity
Brand-as-product
Brand-as-organization
Brand-as-person
Brand-as-symbol
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Aaker Model Brand Assets
Brand loyalty
Brand associations
Brand awareness
Perceived quality
Proprietary assets
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The BRANDZ Model
Bonding
Advantage
Performance
Relevance
Presence
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Brand Resonance Pyramid
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Drivers of Brand Equity
Brand Elements
Marketing Activities
Meaning Transference
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Brand Elements
Brand names
URLs
Slogans
Elements
Logos
Characters
Symbols
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Brand Elements
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Brand Element Choice Criteria

• Memorable
• Meaningful
• Likeability

• Transferable
• Adaptable
• Protectible

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The cupped hands are an element of Allstates
brand
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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
• Well pick you up
• Nextel Done
• Zoom Zoom
• Im lovin it
• Innovation at work
• This Buds for you
• Always low prices

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Designing Holistic Marketing Activities
Personalization
Integration
Internalization
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Secondary Sources of Brand Knowledge
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Measuring Brand Equity
Brand Audits
Brand Tracking
Brand Valuation
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The 10 Most Valuable Brands
Brand 2004 Brand Value (Billions)
Coca-Cola 67.39
Microsoft 61.37
IBM 53.79
GE 44.11
Intel 33.50
Disney 27.11
McDonalds 25.00
Nokia 24.04
Toyota 22.67
Marlboro 22.13
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Interbrands 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)
• Support (10)
• Protection (5)

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Bucky Lasek for Campbells Soup at Hand
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Managing Brand Equity
Brand Reinforcement
Brand Revitalization
Brand Crises
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Surviving a Brand Crisis
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Devising a Branding Strategy
Develop new brand elements
Apply existing brand elements
Use a combination of old and new
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Branding Terms

• Brand line
• Brand mix
• Brand extension
• Sub-brand
• Parent brand
• Family brand

• Line extension
• Category extension
• Branded variants
• Licensed product
• Brand dilution
• Brand portfolio

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Brand Naming
Individual names
Blanket family names
Separate family names
Corporate name-individual name combo
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Crest Whitestrips