Mm.08.10 deleted

04/10/23 16:03 Prof. U.M. Amin, CMS, JMI University, New Delhi

1

Marketing ManagementMBA CP 205


2

Creating Brand Equity


3

Learning Objectives:

• Know what is brand and how branding works.• Know what is brand equity.• Know how brand equity is built, measured, and managed.



4

Brand

A name, term, sign, symbolor design, or a combination of them,

intended to identify the goodsor services of one seller or group

of sellers and to differentiatethem from those of competitors.



5

• A brand is a product that adds dimensions that differentiate it in some way from other products designed to satisfy the same need.

• The differences may be functional, rational or tangible – related to product performance of the brand.

• They may also be more symbolic, emotional or intangible – related to what the brand represents.



6

The Roles of Brands

Identify the makerIdentify the maker

Simplify product handling

Simplify product handling

Organize accounting

Organize accounting

Offer legal protectionOffer legal protection



7

The Roles of Brands

Signify qualitySignify quality

Creates barriersTo entry

Creates barriersTo entry

Serves as a competitive advantage

Serves as a competitive advantage

Secure price premium

Secure price premium



8

• Brand identify source or maker of a product. Consumers evaluate identical products differently depending on how it is branded.

• Brands simplify product handling or tracing, help to organize inventory and accounting records.

• Brand offers the firm legal protection for its unique product features.

• Brand name can be protected through registered trade mark, manufacturing process through patent and packaging through copyright and design.



9

• Brands signal a certain quality so that satisfied consumers can choose the product again.

• Competitors can duplicate the product designs but can not easily match lasting impressions in consumers’ minds, thus branding can be a powerful means to secure competitive advantage.

• Strong brands result in better earnings and profit performance for the firms.



10


Ten Attributes of World’s Strongest Brands

• Excel at delivering desired benefits.

• Stay relevant.• Priced to meet

perceptions of value.• Positioned properly.• Communicate consistent

brand messages.

• Well-designed brand hierarchy.

• Use multiple marketing activities.

• Understand consumer-brand relationship.

• Supported by organization.• Monitor sources of brand

equity.


11

Branding

Endowing products and serviceswith the power of a brand.



12


Brand Equity

The differential effect that brandknowledge has on consumer

response to the marketing of that brand.


13

Brand Equity

• Brand equity is the added value endowed to products that may be reflected in how consumers think, feel and act w.r.t. to the brand.

• It is also reflected in the prices, market share and profitability that the brand commands for the firm.

• As per customer based brand equity perspective, the power of a brand lies in what customers have seen, read, heard, learnt, thought and felt about the brand over time.



14

• A brand has positive customer based brand equity when consumers react more favorably to a product.

• Brand equity arises from differences in consumer response.

• These differences are a result of a consumer’s knowledge about the brand.

• The differential response by consumers is reflected in perceptions, preferences and behavior related to all aspects of marketing of a brand.



15


Brand Knowledge

Knowledge

Thoughts

ExperiencesBeliefs Images

Feelings


16


Brand Associations

Strong

Unique

Favorable


17


Marketing Advantages of Strong Brands

• Improved perceptions of product performance.

• Greater loyalty.• Less vulnerable to

competition.• Less vulnerable to crises.• Higher 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.


18


Brand Promise

The marketer’s vision of whatthe brand must be and do for

Consumers.


19


Brand Equity Models

• Brand Asset Valuator•Aaker Model

•BRANDZ•Brand Resonance


20


Brand Asset Valuator (BAV)

Diff

ere

ntia

tion

Rele

van

ce

Este

em

Kn

ow

led

ge

Brand Equity


21

• Differentiation measures the degree to which a brand is seen as different from others.

• Relevance measures the breadth of a brand’s appeal.

• Differentiation and relevance determine Brand Strength and point to the future value of the brand.

• Esteem measures how well the brand is regarded and respected.



22

• Knowledge measures how familiar and intimate consumers are with the brand.

• Esteem and knowledge create Brand Stature and is more of a score card on past performance.

• Examining relationships in these four dimensions reveals much about brand’s current and future status.

• Brand strength and brand stature can be combined to form ‘Power grid’ that depicts stages in the cycle of brand development.



23


BAV Power Grid


24


Aaker Model – Brand Assets

Brandloyalty

Brandassociations

Perceivedquality

Brandawareness

Proprietaryassets


25


Aaker Model – Brand Identity

Brand-as-product

Brand-as-person Brand-as-symbol

Brand-as-organization

Four perspectives ……


26

• Brand-as-product: Product scope, attributes, quality/value, uses, users and country of origin.

• Brand-as-organization: Organizational attributes, local versus global.

• Brand-as-person: Brand personality, brand customer relationships.

• Brand-as-symbol: Visual imagery/metaphors and brand heritage.


Twelve dimensions built around four perspectives ……


27

• Brand identity is also seen as comprising of core identity and extended identity.

• Core identity represents the central, timeless essence of the brand.

• It remains constant as the brand travels to new markets and products.

• The extended identity includes various brand identity elements organized into cohesive and meaningful groups.


Core identity and extended identity ……


28

• At the core of the model is the Brand Dynamics pyramid.

• Brand building involves a series of sequential steps. The objectives at each step in ascending order are:

Presence: Do we know about it? Relevance: Does the brand offer us something? Performance: Can it deliver? Advantage: Does the brand offer something better than others? Bonding: Nothing else beats it.


‘BRANDZ’ Model of Brand Strength


29


The Brandz Model

Bonding

Advantage

Performance

Relevance

Presence


30

• The model also views brand building as an ascending series of steps from bottom to top. These are:

1. Ensuring identification of brand with customers and association of the brands in customers’ minds with specific product class/need.

2. Firmly establishing the totality of brand meaning in consumers’ minds by linking host of tangible and intangible brand associations.

3. Eliciting the proper consumer response in terms of brand related judgments and feelings.


‘Brand Resonance’ model


31

4. Converting brand response to create an intense, active loyalty relationship between consumer and the brand.

• Enacting the four steps involves six ‘Brand building blocks’.

A. Brand salience, relates to how often and easily the brand is evoked under various purchase and consumption situation.

B. Brand performance, relates to how the product meets the needs.

C. Brand imagery, deals with extrinsic properties of the products, including the ways to meet the psychological/social needs.



32

D. Brand judgments, focus on customers’ own personal opinions and evaluations.

E. Brand feelings, are customers’ emotional responses and reactions with respect to the brand.

F. Brand resonance refers to the nature of the relationship that customers have with the brand and the extent to which the customers feel that they are in ‘sync’ with the brand.



33


Brand Resonance Pyramid


34


Drivers of Brand Equity

Brand Elements

Marketing Activities

Meaning Transference


35

• The first set of brand equity driver is the initial set of the brand elements or identities making up the brand.

• The second set is the product, service and all accompanying marketing activities and supporting marketing programmes.

• The final set of brand equity driver includes other associations indirectly transferred to the brand by linking it to some other entity like person, place or thing.



36


Brand Elements

ElementsSlogans

Brandnames

URLs

Logos

SymbolsCharacters


37

• Brand elements are those trademarkable devices that serve to identify and differentiate the brand.

• Most strong brands employ multiple brand elements.

• The brand building ability of these elements is what consumers would think or feel about the product if they only knew only about the brand element.

• A brand element that provides a positive contribution to brand equity is one where consumers assumed or inferred certain valued associations or responses.



38


Brand Element choice criteria

• Memorable• Meaningful• Likeability

• Transferable• Adaptable• Protectible


39

Designing Holistic Marketing Activities

• The primary input to building brand equity comes from the product or service and the supporting marketing activities.

• Consumers come to know a brand through a range of contacts and touch points.

• A brand contact is any information bearing experience a consumer has with the brand, the product category or the market related to the product.

• Marketers create brand contacts through many avenues such as trade shows, event marketing, sponsorship and public relations.



40

Leveraging Secondary Associations

• The final way to build brand equity is to “borrow”.

• It involves linking brand associations to other entities that have their own associations, thus creating secondary brand associations.

• Brand equity is created by linking the brand to other information stored in consumers’ memory that conveys meaning to consumers.



41

Secondary Sources of Brand knowledge



42

Recap:

• Know what is brand and how branding works.• Know what is brand equity.• Know how brand equity is built, measured, and managed.


Business

Mm.08.10 deleted