MARKETING MANAGEMENT 12 th edition 9 Creating Brand

MARKETING MANAGEMENT 12 th edition 9 Creating Brand Equity Kotler Keller

Chapter Questions • What is a brand how does branding work? • What is brand equity? • How is brand equity built, measured, and managed? • What are the important decisions in developing a branding strategy? 2

Google - 2002 Brand of the Year 3

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. 4

Attributes of Strong Brands • Excels at delivering desired benefits • Stays relevant • Priced to meet perceptions of value • Positioned properly • Communicates consistent brand messages • Well-designed brand hierarchy • Uses multiple marketing activities • Understands consumer-brand relationship • Supported by organization • Monitors sources of brand equity 5

The Role of Brands Identify the maker Simplify product handling Organize accounting Offer legal protection 6

The Role of Brands Signify quality Create barriers to entry Serve as a competitive advantage Secure price premium 7

Branding Endowing products and services with the power of a brand. 8

Brand Equity The differential effect that brand knowledge has on consumer response to the marketing of that brand. 9

Brand Knowledge Thoughts Feelings Knowledge Images Beliefs Experiences 10

Brand Associations Strong Unique Favorable 11

Marketing Advantages of Strong Brands • Improved perceptions of product performance • Greater loyalty • Less vulnerable to competition • Less vulnerable to crises • Larger margins • Inelastic consumer response to price increases • Elastic consumer response to price decreases • Greater trade cooperation • Increase in effectiveness of IMC • Licensing opportunities • Brand extension opportunities 12

Branding a Place 13

Brand Promise The marketer’s vision of what the brand must be and do for Consumers. 14

The Virgin Brand 15

Brand Equity Models • Brand Asset Valuator • Aaker Model • BRANDZ • Brand Resonance 16

Brand Asset Valuator (BAV) Brand Equity Knowledge Esteem Relevance Differentiation 17

Figure 9. 1 BAV Power Grid 18

Aaker Model – Brand Identity Brand-as-product Brand-as-organization Brand-as-person Brand-as-symbol 19

Aaker Model – Brand Assets Brand loyalty Brand associations Proprietary assets Brand awareness Perceived quality 20

The BRANDZ Model Bonding Advantage Performance Relevance Presence 21

Figure 9. 2 Brand Resonance Pyramid 22

Drivers of Brand Equity Brand Elements Marketing Activities Meaning Transference 23

Brand Elements Brand names Slogans Characters URLs Elements Logos Symbols 24

Brand Elements 25

Brand Element Choice Criteria • Memorable • Meaningful • Likeability • Transferable • Adaptable • Protectible 26

The cupped hands are an element of Allstate’s brand 27

Slogans • Like a good neighbor, State Farm is there • Just do it • Nothing runs like a Deere • Help is just around the corner • Save 15% or more in 15 minutes or less • • We try harder We’ll pick you up Nextel – Done Zoom I’m lovin’ it Innovation at work This Bud’s for you Always low prices 28

Designing Holistic Marketing Activities Personalization Integration Internalization 29

Figure 9. 3 Secondary Sources of Brand Knowledge 30

Measuring Brand Equity Brand Audits Brand Tracking Brand Valuation 31

Table 9. 2 The 10 Most Valuable Brands Brand Coca-Cola Microsoft IBM 2004 Brand Value (Billions) $67. 39 $61. 37 $53. 79 GE Intel Disney Mc. Donald’s Nokia Toyota Marlboro $44. 11 $33. 50 $27. 11 $25. 00 $24. 04 $22. 67 $22. 13 32

Interbrand’s Brand Equity Formula Brand earnings • Brand sales • Costs of sales • Marketing costs • Overhead expenses • Remuneration of capital charge • Taxation Brand strength • Leadership (25%) • Stability (15%) • Market (10%) • Geographic spread (25%) • Trend (10%) • Support (10%) • Protection (5%) 33

Bucky Lasek for Campbell’s Soup at Hand 34

Managing Brand Equity Brand Reinforcement Brand Revitalization Brand Crises 35

Surviving a Brand Crisis 36

Devising a Branding Strategy Develop new brand elements Apply existing brand elements Use a combination of old and new 37

Branding Terms • • • Brand line Brand mix Brand extension Sub-brand Parent brand Family brand • • • Line extension Category extension Branded variants Licensed product Brand dilution Brand portfolio 38

Brand Naming Individual names Blanket family names Separate family names Corporate nameindividual name combo 39

Crest Whitestrips 40

Brand Roles in a Brand Portfolio Flankers Cash Cows Low-end Entry-level High-end Prestige 41

Marketing Debate ü Are brand extensions good or bad? Take a position: 1. Brand extensions endanger brands. 2. 2. Brand extensions are an important 3. brand-growth strategy. 42

Marketing Discussion ü How can you relate the different models of brand equity? How are they similar? Different? Can you construct a model that incorporates the best of each? 43