Marketing Management Arab World Edition Kotler Keller Hassan

Marketing Management Arab World Edition Kotler, Keller, Hassan, Baalbaki and Shamma Chapter 9 Creating Brand Equity

Chapter Questions 1. What is a brand how does branding work? 2. What is brand equity? 3. How is brand equity built, measured, and managed? 4. Exercise to build a brand Copyright © 2012 Pearson Education 9 -2

What is a Brand How Does Branding Work? Chapter Question 1: What is a brand how does branding work? What is a brand? A brand is 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. Copyright © 2012 Pearson Education 9 -3

Chapter Question 1: What is a brand how does branding work? 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 Copyright © 2012 Pearson Education 9 -4

Chapter Question 1: What is a brand how does branding work? The Scope of Branding What is branding? • Branding is endowing products and services with the power of the brand. Copyright © 2012 Pearson Education 9 -7

Chapter Question 2: What is brand equity? Defining Brand Equity • Brand equity is the added value endowed on products and services. • It may be reflected in the way consumers think, feel and act towards the brand. Copyright © 2012 Pearson Education 9 -8

Chapter Question 2: What is brand equity? Brand Equity as a Bridge • Brand equity can be thought of as providing marketers with a vital strategic ‘bridge’ from their past to their future • A brand promise is the marketer’s vision of what the brand must be and do for consumers. Copyright © 2012 Pearson Education 9 -9

Chapter Question 2: What is brand equity? Brand Equity Models Four established brand equity models: • Brand Asset Valuator (BAV) • BRANDZ • Aaker Model • Brand Resonance Copyright © 2012 Pearson Education 9 -10

Chapter Question 2: What is brand equity? Brand Equity Models Brand Asset Valuator (BAV) (Y&R) = 500. 000 X 44 Count X 1000 s Brands Key Components (D. E. R. E. K. ): • Differentiation • Energy • Relevance • Esteem • Knowledge (D. E. R. E. K. ): D + E + R = energized brand strength Sense of momentum Future value Brand’s Appeal Respected E + K = Brand Stature Familiar & intimate Copyright © 2012 Pearson Education Past Performance 9 -11

Chapter Question 2: What is brand equity? Brand Equity Models Aaker Model Key Components: Brand Management start with : • Brand identity 8 -12 elements • Core identity elements • Extended identity elements • Brand essence Scope/attributes/value/quality organizational attributes/ band personality Copyright © 2012 Pearson Education Inspiring communication 9 -13

Chapter Question 3: How is brand equity built, measured and managed? Building Brand Equity Three ways to build brand equity (“drivers”): 1. Brand elements: • The initial choices for the brand elements or identities making up the brand. • Brand names, URLs, logos, symbols, characters, spokespeople, slogans, jingles, packages, and signage. 2. Marketing activities: • The product and service and all accompanying marketing activities and supporting marketing programs. 3. Leveraging secondary associations • Linking the brand to other information meaningful to consumers. Copyright © 2012 Pearson Education 9 -15

Chapter Question 3: How is brand equity built, measured and managed? Choosing Brand Elements Brand element choice criteria: 1. Memorable: 2. Meaningful: suggest something relate to the product. 3. Likeability: Appealing 4. Transferable: Wide to new products (Amazon) 5. Adaptable: Updatable 6. Protectable: How legally protectable (Apple Vs Generic Fiberglass-Xerox) Copyright © 2012 Pearson Education easy to recall 9 -16

Chapter Question 3: How is brand equity built, measured and managed? Designing Holistic Marketing Activities Holistic marketers emphasize three themes in designing brandbuilding marketing programs: • Personalization: Mass Mk. T 50 s- Permission Mk. T • Integration: from brand identity to brand Image • Internalization : • Internal branding : Activities inspire employees (Disney) Copyright © 2012 Pearson Education 9 -17

Chapter Question 3: How is brand equity built, measured and managed? Leveraging Secondary Associations • The third way to build brand equity is to ‘borrow’ it. • Linking the brand to other information meaningful to consumers. Fig. 9. 4: Secondary Sources of Brand Knowledge Copyright © 2012 Pearson Education 9 -18

Chapter Question 3: How is brand equity built, measured and managed? Measuring Brand Equity Two basic approaches to measuring brand equity: • Indirect approach: assesses potential sources of brand equity by identifying and tracking consumer brand knowledge structures • Direct approach: assesses the actual impact of brand knowledge on consumer response to different aspects of the marketing Copyright © 2012 Pearson Education 9 -19

Chapter Question 3: How is brand equity built, measured and managed? Measuring Brand Equity • Brand audit: a consumer-focused exercise to assess the health of the brand, uncover its sources of brand equity, and suggest ways to improve and leverage its equity. • Brand-tracking studies: collect quantitative data from consumers to provide baseline information about how brands and marketing programs are performing. Copyright © 2012 Pearson Education 9 -20

Chapter Question 3: How is brand equity built, measured and managed? Brand Revitalization Brands can be affected by: • Changes in consumer tastes and preferences • Emergence of new competitors • New technologies • New developments in the marketing environment Harley recovered from near bankruptcy and revitalized its brand with a renewed commitment to quality and to grass-roots marketing efforts that appeal to its imageconscious customers. Copyright © 2012 Pearson Education 9 -24

Devising a Branding Strategy Chapter Question 4: What are the important decisions in developing a branding strategy? When a firm introduces a new product, it has 3 main choices: • It can develop new brand elements for the new product. • It can apply some of its existing brand elements. • It can use a combination of new and existing brand elements. Copyright © 2012 Pearson Education 9 -25

Devising a Branding Strategy Chapter Question 4: What are the important decisions in developing a branding strategy? Branding terms: • Brand line • Line extension • Brand mix • Category extension • Branded variants • Sub-brand • Licensed product • Parent brand • Brand dilution • Family brand • Brand portfolio Copyright © 2012 Pearson Education 9 -26

Chapter Question 4: What are the important decisions in developing a branding strategy? Branding Decisions Four general strategies for choosing brand names: • Individual names • Blanket family names • Separate family names • Corporate name/individual name combo Copyright © 2012 Pearson Education 9 -27

Chapter Question 4: What are the important decisions in developing a branding strategy? Brand Extensions Advantages of brand extensions: • Improved odds of new-product success • Positive feedback effects Disadvantages of brand extensions • Brand dilution • Cannibalizing Copyright © 2012 Pearson Education 9 -28

Chapter Question 4: What are the important decisions in developing a branding strategy? Brand Portfolios Reasons for introducing multiple brands in a category include: • Increasing shelf presence and retailer dependence in the store • Attracting consumers seeking variety • Increasing internal competition within the firm • Yielding economies of scale in advertising, sales, merchandising, and distribution Copyright © 2012 Pearson Education 9 -29

Chapter Question 4: What are the important decisions in developing a branding strategy? Brand Portfolios Brand roles in a brand portfolio: • Flankers • Cash cows • Low-end, entry-level • High-end prestige Armani’s line of luxury clothing is differentiated to appeal to three distinct price tiers, each with different styles and levels of luxury and customization. Copyright © 2012 Pearson Education 9 -30

Chapter Question 4: What are the important decisions in developing a branding strategy? Customer

Chapter Question 4: What are the important decisions in developing a branding strategy? Exercise Building A creative Brand 1 - Build a creative Brand to your company 2 - Include : • Associated Word • Slogan • Color • Design • Logo 3 - allocated time is 20 -30 min 4 - 2 Min for presentation 5 - 1 Min for evaluation Copyright © 2012 Pearson Education 9 -32

Credits Slide 1 Image courtesy of My. Diamond. Reproduced with permission • Slide 13 Brand. Dynamics™ Pyramid. Reprinted by permission of Millward. Brown Optimor; Figure 9. 5 from Strategic Brand Management, 3 rd edition, Prentice Hall (Keller, K. L. , 2008), copyright © 2008. Printed and electronically reproduced by permission of Pearson Education, Inc. , Upper Saddle River, New Jersey • Slide 22 Strategic Brand Management, 3 rd edition, Prentice Hall (Keller, K. L. , 2008), copyright © 2008. Printed and electronically reproduced by permission of Pearson Education, Inc. , Upper Saddle River, New Jersey • Slide 24 “The World’s Most Valuable Brands”, Forbes, 28 July 2010, (Badenhausen, K. ). Reprinted by permission of Forbes Media LLC, copyright © 2011 • Slide 27 Getty Images: Justin Sullivan • • • Slide 33 Corbis: WWD / Condé Nast Slide 34 Scott Bedbury, A New Brand World (New York: Viking Press, 2002). Copyright © 2001 by Scott Bedbury. Used by permission of Viking Penguin, a division of Penguin Group (USA) Inc