Scribd
Upload
53 views21 pages

504 8 Creating Brand Equity

The document discusses key concepts related to creating brand equity. It defines what a brand is and explains how brands identify products, simplify decisions for customers, and provide competitive advantages. Strong brands can create value through improved perceptions, greater loyalty, and price premiums. Brand equity is the added value provided to products and services based on customers' knowledge and experience with the brand. Marketing activities aim to build and defend brand equity over time.

Uploaded by

Anderson Kalleb
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
53 views21 pages

504 8 Creating Brand Equity

The document discusses key concepts related to creating brand equity. It defines what a brand is and explains how brands identify products, simplify decisions for customers, and provide competitive advantages. Strong brands can create value through improved perceptions, greater loyalty, and price premiums. Brand equity is the added value provided to products and services based on customers' knowledge and experience with the brand. Marketing activities aim to build and defend brand equity over time.

Uploaded by

Anderson Kalleb
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 21

Creating Brand

Equity
Key Concepts
What is a 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.
What does a Brand do?
Identify the maker

Simplify decision making and reduce risk

Simplify product handling and tracing

Organize inventory and accounting

Offer legal protection

Signify quality

Create barriers to entry

Secure a competitive advantage

Secure price premium


The Scope of Branding

Brandingendowing products and services


with the power of a brand.

Its all about creating differences between


products.
What is Brand Equity

Brand equitythe added value endowed on


products and services, reflected in how customers
think, feel, and act with respect to the brand, as
well as in the prices, market share, and
profitability the brand commands for the firm.
What is Brand Equity (2)

Customer-based brand equitythe differential


effect that brand knowledge has on consumer
response to that brands marketing.
Arises from customer response.
Differences in response are a result of brand knowledge.
Differential response is reflected in perceptions,
preferences, and behaviors related to the brands
marketing.
Marketing Advantages of
Strong Brands
Improved perceptions More elastic responses to
price decreases
Greater loyalty
Greater trade
Less vulnerable to cooperation
competitors
Increased marketing
Less vulnerable to crises communication
effectiveness
Larger margins
Possible licensing
More inelastic responses opportunities
to price increases
Brand extension
opportunities
What is a Brand Promise

The marketers vision of what the brand must


be and do for consumers.
Brand Equity Drivers

Brand elements

Marketing activities

Meaning transference
Criteria for Choosing
Brand Elements

Building the Brand Defending the Brand

Memorable Transferable

Meaningful Adaptable

Likeability Protectible
Designing Holistic
Marketing Activities
Personalizationensuring that the brand and
its marketing are as relevant as possible to as
many customers as possible.
Integrationmixing and matching marketing
activities to maximize their individual and
collective efforts.
Internalizationensuring employees and
marketing partners understand basic branding
notions and know how they can help (or hurt)
brand equity.
Leveraging Secondary
Associations

Linking the brand to other information in


memory that conveys meaning to consumers.
Sources:
Other brands
Places
Things
People
Measuring Brand Equity

Brand audit

Brand tracking

Brand valuation
Managing Brand Equity

Brand reinforcement

Brand revitalization
Brand Strategy and
Customer Equity

Develop new brand elements.

Apply existing brand elements.

Use a combination of old and new brand


elements.
Branding New Products
Brand extension Category extension

Sub-brand Brand line

Parent brand Brand mix

Family brand Branded variants

Line extension Licensed product


Branding Decisions

Individual names

Blanket family names

Separate family names for all products

Corporate name, combined with individual


product names
Brand Extensions
Advantages Disadvantages

Improved odds of success Brand dilution

Positive consumer Risk to brand integrity


expectations
Risk of harm to parent
Retailer support brand

Leverage current brand Cannibalization


awareness
Lost opportunity to create a
Reduced cost of the launch new brand
campaign

Feedback benefits
Reasons for Multiple
Brands in Portfolio

To increase shelf presence and retailer


dependence

To attract consumers seeking variety

To increase internal competition

To yield economies of scale


Brand Roles in a Brand
Portfolio
Flankersfighter brands.

Cash cowsmilk these brands because they


are profitable.

Low-end entry levelattract customers to the


franchise.

High-end prestigehigh-priced brand used to


add prestige and credibility.
Customer Equity

The sum of lifetime values of all customers.

Customer lifetime value is affected by revenue


and cost considerations related to:
Acquisition
Retention
Add-on spending

You might also like