CREATING
BRAND
EQUITY
WHAT IS 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 sellers and to differentiate
it in some way from those of
competitors.”
B R A N D S’ ROLE FOR CONSUMERS
A brand is a promise between the firm and the consumer. It is a
means to set consumers’ expectations and reduce their risk.
Consumers may evaluate the identical product differently
depending on how it is branded.
Brands can also take on personal meaning to consumers and
become an important part of their identity.
BRANDS’ ROLE FOR FIRMS
They simply product handling by helping organize inventory and accounting records.
A brand also offers the firm legal protection for unique features or aspects of the product.
The brand name can be protected through registered trademarks, manufacturing processes can be
protected through patents, and packaging can be protected through copyrights and proprietary designs.
These intellectual property rights ensure that the firm can safely invest in the brand and reap the benefits of a
valuable asset.
W H A T I S BRANDING
Branding is the process of endowing products
and services with the power of a brand. It’s all
about creating differences between products.
Marketers need to teach consumers “who” the
product is—by giving it a name and other brand
elements to identify it—as well as what the product
does and why consumers should care.
W H A T IS BRAND
EQUITY?
Is the added value endowed to products and services with consumers.
It may be reflected in the way consumers think, feel, and act with respect to the brand, as
well as in the prices, market share, and profitability it commands.
Brand promise is the marketer’s vision of what the brand must be and do for
consumers.
B R A N D EQUITY
MODELS
1. BRANDASSET® VALUATOR
ENERGIZED RELEVANCE - MEASURES ESTEEM - MEASURES
DIFFERENTIATION - THE APPROPRIATENESS PERCEPTIONS OF
MEASURES THE DEGREE AND BREADTH OF A QUALITY AND LOYALTY,
TO WHICH A BRAND IS BRAND’S APPEAL. OR HOW WELL THE
SEEN AS DIFFERENT BRAND IS REGARDED
FROM OTHERS AS WELL AND RESPECTED.
AS ITS PRICING POWER.
BRAND Z – BRAND
DY N A M I C S
BrandDynamics maintain that three different types of brand associations are crucial for building customer
predisposition to buy a brand—meaningful, different, and salient brand associations.
The success of a brand along those three dimensions, in turn, is reflected in three important outcome measures:
POWER - a prediction of the brand’s volume share.
PREMIUM - a brand’s ability to command a price premium relative to the category average.
POTENTIAL - the probability that a brand will grow value share.
BRAND RESONANCE
MODEL
| Fig. 11.4 | Brand Resonance Pyramid
Brand Salience Brand Imagery Brand Judgements Brand Feelings Brand Performance Brand
is how often and describes the focus on are is how well the describes the
how easily extrinsic customers’ own customers’ product or relationship
customers think properties of the personal service meets customers have
of the brand product or opinions and
emotional customers’ with the brand
under various service, evaluations. responses functional and the extent
purchase or including the and reactions needs. to which they
consumption ways in which with respect feel they’re “in
situations the the brand to the brand. sync” with it.
depth and attempts to
breadth of meet customers’
brand psychological or
awareness. social needs.
THERE ARE 3 MAIN SETS OF BRAND
EQUITY DRIVERS:
1. The initial choices for the brand elements of
identities making up the brand.
2. The product and service and all accompanying
marketing activities and supporting marketing
programs.
1. Other associations indirectly transferred to the
brand by linking it to some other entity (a person,
place, or thing).
C H O O S I N G BRAND ELEMENTS
Brand elements are devices, which can be trademarked, hat identify and differentiate
the brand.
B R AND ELEMENTS C H O I C E CRITERIA
BRAND BUILDING DEFENSIVE
INTERNAL BRANDING
Marketers must now ‘’walk the walk’’ to deliver the brand promise.
Internal branding
Consist of activities and processes that help inform and inspire employees about
brands. Holistic marketers must even further and train and encourage
distributors and dealers to serve their customers well.
Poorly trained dealers can ruin the best efforts to build a strong brand image.
T H E B R A N D VA L U E C H A I N
Is a structured approach to assessing the sources and outcomes of
brand equity and the way marketing activities creates brand value.
PROGRAM MULTIPLIER
determines the marketing program’s ability to
affect the customer mind- set and is a
function of the quality of the program investment
CUSTOMER MULTIPLIER
determines the extent to which value created in
The minds of customers affects market
performance
MARKET MULTIPLIER
determines the extent to which the value shown
by the market performance of a brand is manifested
in shareholder value.
OT H E R T E R M S TO R E M E M B E R
BRAND AUDIT – is a consumer BRAND TRACKING – studies collect BRAND VALUATION – marketers
focused series of procedures to quantitative date from consumers over should distinguish brand equity
assess the health of the bran, time to provide consistent, baseline from brand valuation, which is he
uncover its sources of brand information about how brands and job of estimating the total financial
equity, and suggest ways to marketing programs are performing value of the brand.
improve and leverage its equity.
Measuring Brand Equity
An indirect approach A direct approach
assesses potential assesses the actual
sources of brand equity impact of brand
by identifying and knowledge on consumer
tracking consumer brand response to different
knowledge structures aspects of the marketing.
BRAND REINFORCEMENT
Ø It refers to the set of activities where
companies ensure that brand equity
created doesn’t depreciate with time.
BRAND
REINFORCEMENT BRAND REVITALIZATION
VS. BRAND Ø The success of a brand can be
affected by any new marketing
REVITALIZATION environment developments.
Nevertheless, a number of brands have
managed to make impressive
comebacks in recent years. Focuses on
bringing bank brand relevance when
the brand is no longer known in the
market.
DE VIS ING B R A N D S T R A T E G Y
Brand architecture—reflects the number both
common and distinctive brand elements. Deciding how to brand new products is
especially critical.
THREE MAIN CHOICES OF FIRM ON DECIDING THE BRANDING OF
NEW PRODUCTS:
1. It can develop new brand elements for new products.
2. It can apply some of its existing brand elements.
3. It can use a combination for existing and new brand elements.
SUB-BRAND
SUB BRAND - Combines the new brand with an already established brand. Business creates
a secondary brand within its own brand. Helps build a quick association of the new brand
and also helps the new brand to en-cash the equity built by an already established
existing brand .
The existing brand which gives birth to the Sub-brand is the Parent Brand.
PARENT BRAND
Contain their own original messaging, logos, marketing campaigns, product line and
identities.
BRAND EXTENSION also called Brand
stretching.
vUse to apply their recognizable brand name to a new
product or service
vCompany uses one of its established brand names on a
new product or new product category
BRANDEXTENSION &
Licensed Product also known as brand
BRAND LICENSING license/licensing
v A product whose brand name has been licensed
to other manufacturers to make the product.
v Giving another company permission to use your
intellectual property on products they produce and sell.
2 TYPES OF BRAND EXTENSION
Line Extension Category Extension
Ø refers to the parent covering a new product within Ø A company uses the same brand to enter into a
the same product category. New product in this can completely unrelated product segment. The new
be a new flavor, new color, The new product should category to which the brands is extended can be
be in the same product category. related or unrelated to the existing product
categories
BRAND LINE VS. BRAND MIX
BRAND LINE
Range of the original and all variants of the products.
Products sold under a single brand name.
BRAND MIX (brand assortment)
The group of all of the brand lines by a seller that are
made available to the buyer. Comes into picture
primarily because of catering to needs to various
channel partners.
A L T E R N A T I V E BRANDING S T R A T E G I E S
HOUSE OF BRANDS VS BRANDED HOUSE
The use of individual or
separate family brand names
has been referred to as a
“house of brands” strategy,
whereas the use of an umbrella
corporate or company brand
name is a “branded house”
strategy.
FLANKERS - Flanker or fighter brands are positioned with
respect to competitors’ brands so that more important
(and more profitable) flagship brands can retain their
desired positioning.
4 TYPES OF
BRAND CASH COWS - Some brands may be kept around despite
dwindling sales because they manage to maintain their
PORTFOLIO profitability with virtually no marketing support.
Companies can effectively milk these “cash cow” brands
by capitalizing on their reservoir of brand equity
LOW END ENTRY LEVEL - The role of a relatively low-priced
brand in the portfolio often may be to attract customers
to the brand franchise. Retailers like to feature these
“traffic builders” because they are able to trade up
customers to a higher-priced brand.
HIGH END PRESTIGE - The role of a relatively high-priced
brand often is to add prestige and credibility to the entire
portfolio.
The Advantages and Disadvantages
of Brand Extension
A D VA N TA G E S O F B R A N D E X T E N S I O N S
Improved Odds Of New-Product Success - Consumers form expectations about a new product based
on what they know about the parent brand and the extent to which they feel this information is
relevant.
Positive Feedback Effects - besides facilitating acceptance of new products, brand extensions can
provide feedback benefits.
D I S A D VA N TA G E S O F B R A N D E X T E N S I O N S
Brand dilution - occurs when consumers no longer associate a brand with a specific or highly
similar set of products and start thinking less of the brand.
CUSTOMER
EQUITY
Customer Equity is the sum of the Customer Lifetime Value. Customerlifetime value is affected by revenue
and by the costs of customer acquisition, retention, and cross-selling.
Achieving brand equity should be a top priority for any organization.
The aim of customer relationship management (CRM) is to produce high customer equity.
Both emphasize the importance of customer loyalty and the notion that we
create value by having as many customers as possible pay as high a price as
possible.
