Brand Equity 2010 Key Concepts Brand what and
Brand Equity 2010
Key Concepts • Brand – what and how • Understanding Brand Equity 7 -2
Copyright 2007, Prentice. Hall Inc. 7 -3
Brand • Simply put, a brand is a promise. By identifying and authenticating a product or service it delivers a pledge of satisfaction and quality. • A set of assets (or liabilities) linked to a brand's name and symbol that adds to (or subtracts from) the value provided by a product or service… 7 -4
Brand • A brand is the most valuable real-estate in the world, a corner of the consumer's mind. • A brand is a collection of perceptions in the mind of the consumer. 7 -5
What is a Brand? Name, logo, slogan and/or design Embodiment of all the information connected to a product or service Associations and expectations about a product or service TRUST
Copyright 2007, Prentice. Hall Inc. 7 -7
The Power of a Strong Brand MRI Study • Strong brands produced activity in the part of the brain associated with: • Positive emotions • Self-identification • Rewards • Weak brands provoked activity in the parts of the brain associated with: • Negative emotion • Memory (requiring brain to work harder) 7 -8
Marketing Beyond the Monkey • Stimulus, response • End of supply chain • Consumption as improving physical • Passive recipient • Beyond • • Creating meaning Beginning Consumption as improving life Active creator 7 -9
• “Whenever life becomes unbearable, man has found a new way to look upon it” Theodore Zeldin, historian 7 -10
• “We tell ourselves stories in order to live. Good stories make the world more bearable. ” Joan Didion 7 -11
Progression to Brands From Storytelling, To Mass Media 7 -12
To Brands • Brands symbolize shorthand material representing certain ideas or ideals that seem important to us at the time 7 -13
Marketing Beyond the Monkey • Growth lies not in making more ‘stuff’, but in making ‘stuff’ more meaningful 7 -14
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Brands as Belief • “As human beings, we are hard-wired to believe. ” Patrick Hanlon, Primal Branding • Brands are belief systems • Believing is belonging • “In a parity world, my best friend wins” 7 -16
Maslow’s Hierarchy of Need 7 -17
Creation Story Belief System Leader Creed Sacred Words Pagans Rituals Icons
The Creation Story 7 -20
The Creed Core Set of Principles 7 -21
The Creed • Starbucks Coffee Company provides an uplifting experience that enriches people’s lives one moment, one human being, one extraordinary cup of coffee at a time. 7 -22
Icons Sensory Imprints that Instantly Summon the Brand Essence Sound 7 -23
The Rituals • The repeated interactions that people have with your enterprise • The meaningful repeated points of contact between you and your guest, customer, client or target market 7 -24
The Pagans, or Nonbelievers The Uncola Mac and PC 7 -26
Sacred Words • The language. If you know the language, you belong. • Quad Venti Skinny with Whip Iced Caramel Macchiato • Ttyl g 2 g 2 wk lyl • USN – probs, jakes, sip, gaffleton pie 7 -27
The Leader • Leader as catalyst, risk taker, visionary, iconoclast 7 -28 against the odds
Brand Value to Consumers Benefits Received Can be: Real/Tangible Perceived/Intangible All relative to competitors for the Price Paid Relative to competitors Value always from the consumer’s perspective
Brand Equity • Brand equity—the 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. 8 -32
Customer-based Brand Equity • Customer-based brand equity—the differential effect that brand knowledge has on consumer response to that brand’s marketing. • Arises from customer response • Differential response is reflected in perceptions, preferences, and behaviors
T-Mobile Heathrow • http: //youtu. be/NB 3 NPNM 4 xgo? hd=1
Lebron James • http: //www. youtube. com/watch? v=cdtej. CR 413 c • http: //www. thestar. com/sports/basketball/article/88 2538 --lebron-james-and-the-era-of-confessionaladvertising? bn=1 • http: //adage. com/columns/article? article_id=14677 6
Measurement of Brand Equity • Economic value of the brand asset itself • The price premium (to the end consumer or the trade) that the brand commands • The long term consumer loyalty the brand evokes • The market share gains that result 7 -36
Demand Curve Shift • The power of the brand to shift the consumer demand curve (to achieve a price premium or a market share gain). 7 -37
Brand Equity Pyramid Most enduring but hardest to deliver Beliefs & Values Benefits Features & Attributes Easy to deliver and to imitate
Resonance Relationship: What about you and me? Judgments. Feelings Response: What about you? Brand Equity Pyramid Performance Salience Imagery Meaning: What are you? Identity: Who are you?
Subdimensions of Brand Building Blocks Resonance Loyalty Attachment Community Engagement Feelings Judgments Warmth Quality Fun Credibility Excitement Consideration Security Superiority Social Approval Self-Respect Performance Primary Characteristics Secondary Features Product Reliability Durability and Serviceability Service Effectiveness Efficiency and Empathy Style and Design Price Imagery User Profiles Purchase and Usage Situations Personality and Values History, Heritage, and Experience Salience Category Identification Needs Satisfied What about you and me? What about you? What are you? Who are you?
Brand Equity Pyramid 7 -41
Brand Development Strategies 7 -42
Brand Development • Line extension: • introduction of additional items in a given product category under the same brand name (e. g. , new flavors, forms, colors, ingredients, or package sizes). • Brand extension: • using a successful brand name to launch a new or modified product in a new category. 7 -43
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