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CREATING BRAND EQUITYCHAPTER 10
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PRESENTED BY
2
Name Roll no.
Sahil Rao 44
Taha Tarwala 52
Kunal Ramrakhiani 19
Ghansham Gaikwad 14
Shaeesta Chowdhary 47
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BRAND?
A Brand is a name, term, sign,
symbol or design, or a combinationintended to indentify the goods orservices of one seller or group ofsellers and to differentiate them
from those of competitors.
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THE ROLE OF BRANDS
Helps organization or individuals to assign responsibility.
Brands identify the source or maker of the product. Consumers may evaluate identical products differently
depending on how it was branded.
Brands perform valuable functions for firms, they simplifyproduct handling or tracing, help organize inventory and
accounting records, offers legal protection for uniquefeatures or aspects of the product.
Brand names can be protected through registeredtrademarks.
Manufacturing process can be protected through patents.
Packaging can be protected through copyrights andproprietary designs.
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Brands signal a certain level of quality so thatcustomers can easily select the product again.
It provides predictability and security of demand for thefirm.
It makes it difficult for the firms to enter the market.
It creates a sense of loyalty where the customer iswilling to pay a higher price often 20 to 25% more than
the competiting brand . Branding enables firms to secure a competitive
advantage.
Brands represent enormous valuable piece of legalproperty which influences consumer behavior.
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THE ROLE OF BRANDS
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THE SCOPE OF BRANDING
How do you brand a product? Although firmsprovide impetus to brand creation throughmarketing programs & other activitiesultimately a brand resides in the minds of
consumers. Branding is endowing products & services
with the power of a brand. Its all aboutcreating differences between products.
Branding creates mental structures that helpconsumers organize their knowledge aboutproducts and services in a way that clarifiestheir decision making and in the processprovide value to the firm.
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For Branding strategies to be successful and
brand value to be created, consumers mustbe convinced there are meaningfuldifferences among brands in the products orservice category.
Brand differences are often related toattributes or benefits of the products itself,Gillette and others have been leaders in theircategories for decades due to continualinnovation.
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THE SCOPE OF BRANDING
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WHAT IS BRAND EQUITY?
Brand Equity is the added value endowed onproducts and services. It may be reflected inthe way consumers think, feel and act
with respectto the brand, as well as in theprices, market share and profitability thebrand commands for the firm.
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BRAND EQUITY AS A BRIDGE
From the perspective of brand equitymarketers should think of all the dollarsspent on products & services each year asinvestments in consumer brand knowledge.
The quality of the investment in brandbuilding is the critical factor, not necessarilythe quantity, beyond some minimal thresholdamount.
The brand knowledge created by marketing
investments dictates appropriate futuredirections for the brand.
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BRAND EQUITY MODELS
1. BRAND ASSET VALUATOR
has 5 key components they can broadly classified as:
Differentiation
Energy
Relevance Esteem
Knowledge
Differentiation, Energy and Relevance combine to
determine Energized Brand Strength. These three
pillars point to the brands future value. Esteem and
Knowledge together create Brand Stature, which is
more of a report card on past performance.
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BRAND EQUITY MODELS
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2. BRANDZ :
Strongrelationship/high
share of categoryexpenditure
Presence
Relevance
Performance
Advantage
Bonding
Weakrelationship/lowshare of categoryexpenditure
Do I knowabout it?
Does it offerme smething
Can it deliver?
Does it offersomething betterthan the others?
Nothing else beats it
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BRAND EQUITY MODELS
BRAND EQUITY MODELS
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3. AAKER MODEL:
Marketing professor David Aaker viewsbrand equity as the brand awareness, brandloyalty and brand associations that combine
to add or subtract from the value providedby product or services.
Brand management starts with developingbrand identity, which promises to customers
an aspirational brand image.
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BRAND EQUITY MODELS
BRAND EQUITY MODELS
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4. BRAND RESONANCE MODEL
Brand Salience
Brand Performance
Brand Imagery
Brand Judgments Brand Feelings
Brand Resonance
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BRAND EQUITY MODELS
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BUILDING BRAND EQUITY
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BRAND EQUITY DRIVERS
Choosing Brand Elements Brand names, URLs, logos, symbols, characters,
slogans, jingles, packages and signage.
Designing Holistic Marketing Activities Product and services and all accompanying
marketing activities and supporting marketingprograms.
Leveraging Secondary AssociationsOther associations indirectly transferred to the
brand by linking it to some other entity ie person,place or thing. 17
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BRAND ELEMENTS
Brand Elements are those trademarkabledevices that identify and differentiate thebrand.
A brand element that provides a positive
contribution to the brand equity, conveyscertain valued associations or responses.
Based on its name alone, a consumer might
expect ColorStay lipsticks to be long lasting andSnackWell to be healthful snack foods.
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ELEMENTS
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CHOOSING BRAND ELEMENTS
Memorable Meaningful
Likable
Transferable
Adaptable
Protectable
ELEMENTS
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Defensive and deal with how toleverage and preserve the equity ina brand element in the face ofopportunities and constraints.
Brand Building
ELEMENTS
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1. Memorable How easily is the brand element recalled and
recognised? Short brand names such as Lux, LG
and Taj are memorable brand elements.
1. Meaningful
Does it suggest something about a productingredient or the type of person who might usethe brand? Consider the inherent meaning innames such as Fair & Lovely fairness cream,Close-Up toothpaste, and Mothers Recipe
pickles.
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ELEMENTS
ELEMENTS
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3. Likable Is it likable visually, verbally, and in other
ways? Concrete brand names such as Maharaja
evoke imagery.
4. Transferable Can the brand element be used to introduce
new products in the same or different
categories? Eg. Amazon.com, From initially anonline book seller, to selling diverse range ofproducts.
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ELEMENTS
ELEMENTS
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5. Adaptable How adaptable and updatable is the brand
element? Eg Lifebuoy made a shift in positioning
from male concept of health to a warmer andversatile benefit of health for the entire family.
6. Protectible How legally protectible is the brand element? How
competitively protectible? Names that becomesynonymous with product categories such as
Scotch Tape, Xerox and Fiberglass should retaintheir trademark rights and not become generic.
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ELEMENTS
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ACTIVITIES
Brands are not built by advertising alone, but alsothrough:
Personal observation and use
Word of mouth
Interactions with company personnel
Online or telephone experience
Payment transactions
Marketers are creating brand contacts and build
brand equity through many avenues such as: Clubs and consumer communities
Trade shows Event Marketing
Sponsorship
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HOLISTIC MARKETING ACTIVITIES
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Factory visits
Public relations and press release
Social cause marketing
Three Important new themes in designingbrand building marketing programs :
Personalization Integration
Internalization
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HOLISTIC MARKETING ACTIVITIES
HOLISTIC MARKETING ACTIVITIES
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PERSONALIZATION
Personalizing marketing is about making sure the
brand and its marketing are as relevant as possibleto as many customers as possible a challenge,given that no two customers are identical.
To adapt to the increased consumer desire for
personalization, marketers have embracedconcepts such as:
Experiential marketing
One-to-one marketing
Participatory marketing Permission marketing
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HOLISTIC MARKETING ACTIVITIES
HOLISTIC MARKETING ACTIVITIES
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INTEGRATION
Integration marketing is about mixing and matching
marketing activities to maximize their individualand collective effects
Although Apollo Tyres may invest in R&D andengage in advertising, promotion and other
communication to reinforce the tires durableassociation, it may chose to sponsor activities toensure that the brand is seen as contemporary andup-to-date.
Marketing programs should be put together so thatthe whole is greater than the sum of the parts.
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HOLISTIC MARKETING ACTIVITIES
HOLISTIC MARKETING ACTIVITIES
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INTERNALIZATION
Internal branding is activities and processes that
help to inform and inspire employees.
It is critical for service companies and retailers thatall employees have an up-to-date, deep
understanding of the brand and its promise.
Holistic marketers must go even further and trainand encourage distributors and dealers to serve theircustomers well.
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HOLISTIC MARKETING ACTIVITIES
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Alliances
Employees
Ingredients
Endorsers
Company
Countryof origin
Extensions
Channels
Events
OtherBrands
Causes
People
Third-partyendorsement
s
BRAND
Things
Places
Secondary Sources of Brand Knowledge
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MEASURING BRAND EQUITY
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Power of the brand
resides in the mind of
the consumer
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APPROACHES TOMEASURING BRAND EQUITY
Direct approach
Indirect approach
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BRAND VALUE CHAIN
Marketing
programinvestments
Customer
mind set
Brand
performance
Shareholder
value
Programmultiplier
Customer
multiplier
Marketmultiplier
ProductCommunicatios
TradeEmployee
other
AwarenessAssociations
AttitudesActivity
Price premiumsPrice elasticity
Market shareExpansion successCost structureProfitability
Stock priceP/E ratio
Market
capitalization
ClarityRelevance
Distinctivenesconsistency
Competitive reactionsChannel supportCustomer size & profile
Market dynamicsGrowth potential
risk profileBrand contribution
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For brand equity to perform a useful strategic functionsand guide marketing decision marketers need to
understand
1. The source of brand equity and how they affect outcomeof interest
2. How these sources and outcome changes, if at all , over
time
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BRAND AUDIT
Is as consumer- focused series of procedures to assess the
health of the brand uncover the sources of brand equity and
suggest ways to improve and leverage its equity
It allows marketers to keep their fingers on the pulse of their
brands so that they can manage them more proactively and
responsively
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BRAND TRACKING STUDIES
It collect quantitative data from consumers on a routine basis
over time to provide marketers with consistent, baseline
information about how their brands and marketing programs
are performing on key dimensions
Tracking studies are a means of understanding where , how
much , and in what ways brand value is being created, to
facilitate day to day decision making
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BRAND VALUATION
Is estimating the total financial value of the brand
John Stuart of Quaker Oats said If this business weresplit up , I would give you the land and bricks and mortar
, and I would take the brand and trademarks, and would
fare better then you
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WHAT IS A BRAND WORTH
Top brand management firm interbrand has developed a
model to formally estimate the dollar value of a brand
Interbrand defines brand value as the net present value of
the earning brand is expected to generate in the in the
future and believes both marketing and financial
analyses are equally important in determining the value
of a brand
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MANAGING BRAND
EQUITY
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Effective brand management requires a long term view
of marketing actions.
Because consumer responses to marketing activity
depend on what they know and remember about a brand ,
short term marketing actions , by changing brandknowledge , necessarily increase or decrease the long
term success of future marketing actions
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BRAND REINFORCEMENT
Brand equity is reinforced by marketing actions that
consistently convey the meaning of the brand in terms of
1. What products the brand represents, what core benefits itssuppliers and what needs it satisfies ; as well as
2. How the brand makes the products superior and which strong ,
favorable and unique brand associations should exist in theminds of the consumer
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Support thats consistent in amount and kind
Tactical changes may be necessary to maintain the strategic
thrust and direction to the brand
Marketers must recognize the trade off between activities thatfortify the brand and reinforce its meaning
E.g. Volvo
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BRAND REVITALIZATION
Changes in consumer tastes and preferences, the
emergence of new competitors or new technology or any
new development in the marketing environment can
affect the fortunes of a brand
E.g. voltas limited
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BRAND
Understand what the sources of brand equity were to begin
with
Are the positive associations losing their strength or
uniqueness
Have any negative associations become linked to the brand
Decide to retain the same positioning or to create a new one
E.g. Harley-Davidson
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However the old positioning is no longer viable and a
reinvention strategy in necessary
E.g. Mountain Dew
Combination of back to basics and reinvention
E.g. Cadbury's bournvita
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DEVISING A BRAND
STRATEGY
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DEVISING A BRAND STRATEGY
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Can develop new brand elements for thenew product
Can apply some of its existing brandelements
Can use a combination of new and existingbrand elements
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BRAND EXTENSION
When a firm uses an existing brand tointroduce a new product, the product iscalled a brand extension.
It can also be called as subbrand.
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BRAND EXTENSION
General categories Line extension
Category extension
Some terminologies Brand line
Brand mix
Branded variants
Licensed product
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BRANDING DECISIONS
Individual names
Blanket family names
Separate family names for all products
Corporate name combined with individualproduct names
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BRAND EXTENTIONS
ADVANTAGES OF BRAND EXTENSIONS
Improved odds of new product success
Positive feedback effects
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BRAND PORTFOLIO
The Brand portfolio is the set of all brands and brandlines a particular firm offers for sale in a particularcategory or market segment
Increasing shelf presence and retailer dependence inthe store
Attracting consumers seeking variety who mayotherwise have switched to another brand
Increasing internal competition within the firm
Yielding economies of scale in advertising,sales,merchandising and physical distribution
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CUSTOMER EQUITY
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CUSTOMER EQUITY
Marketing Memo: Twenty-First-Century Brandingoffers some contemporary perspectives on
enduring brand leadership.Customer equityhas one universally recognized
definition-the life time value of customers.
This value results from the current and future
customer profitabilityas well as such intangiblebenefits as testimonials and word of mouth sales.
Customer equity incorporates customer loyaltyto buy again and again, the faith to recommenda brand and the willingness to forgive the
inevitable mistakes that every firm makes.
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