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10
Creating Brand Equity
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Copyright 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e. 10-2
Chapter Questions
What is a brand and how does branding
work?
What is brand equity?
How is brand equity built, measured, andmanaged?
What are the important decisions in
developing a branding strategy?
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Steps in
Strategic Brand Management
Identifying and establishing brand
positioning
Planning and implementing brand
marketing
Measuring and interpreting brand
performance
Growing and sustaining brand value
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What Is a Brand?
A brandis a name, term, sign, symbol ordesign, 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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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
Secure price premium
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What Is Branding?
Branding is endowing products
and services with the power of the
brand.
Brand equityis the added value endowed
on products and services, which may be
reflected in the way consumers, think, feel,and act with respect to the brand.
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Consumer based brand equity
CBBE is thus the differential effect brand
knowledge has on consumer response to the
marketing of that brand.
Brand Promise: is the marketers vision ofwhat the brand must be and do for customers
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Advantages of Strong Brands
Improved perceptions
of product performance
Greater loyalty
Less vulnerability tocompetitive marketing
actions
Less vulnerability tocrises
Larger margins
More inelastic
consumer response
Greater tradecooperation
Increased marketing
communicationseffectiveness
Possible licensing
opportunities
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What Is a Brand Promise?
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Brand Equity Models
Brand Asset Valuator (BAV)
Brandz
Brand Resonance
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Figure 10.1 BAV Model
Source:
Courtesy of
BrandAsset
Consulting,
a division ofYoung &
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Figure 10.2 Universe of
Brand Performance
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Figure 10.3
Brand Dynamics Pyramid
Source: BrandDynamics Pyramid. Reprinted with permission of Millward Brown.
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Figure 10.4 Brand Resonance
Pyramid
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Drivers of Brand Equity
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Brand Elements
Brand names
Slogans
Characters
Logos
URLs
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Brand Element Choice Criteria
Memorable
Meaningful
Likeable
Transferable
Adaptable
Protectable
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Figure 10.5 Secondary Sources of
Brand Knowledge
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Figure 10.6 Brand Value Chain
Source: Kevin Lane Keller, Strategic Brand Management, 3rd ed. (Upper Saddle River, NJ:
Prentice Hall, 2008). Printed and electronically reproduced by permission of Pearson Education,Inc. Upper Saddle River, New Jersey.
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Measuring Brand Equity
Brand audits
Brand tracking
Brand valuation
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Figure 10.7 Interbrand Brand
Valuation Method
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Managing Brand Equity
Brand reinforcement
Brand revitalization
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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
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Reasons for Brand Portfolios
Some other reasons for introducing multiple
brands in a category include increasing shelf
presence and retailer dependence in the store,
attracting consumers seeking variety, increasinginternal competition within the firm, and yielding
economies of scale in advertising, sales,
merchandising, and distribution.
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Brand Roles in a Brand Portfolio
Flankers
Cash cows
Low-end, entry-level
High-end prestige
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Brand Extensions: Advantages
Improved odds of new-product success
Positive feedback effects
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Brand Extensions: Disadvantages
Brand dilution
Brand confusion
Damage to parent brand
Cannibalization
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For Review
What is a brand and how does branding
work?
What is brand equity?
How is brand equity built, measured, andmanaged?
What are the important decisions in
developing a branding strategy?