MARKETING MANAGEMENT Building Brand Equity Chapter 9 International

MARKETING MANAGEMENT Building Brand Equity Chapter 9 International Business School Sun Yat-sun University Co-Instructor: Jiang Lianxiong(蒋廉雄): pusjlx@mail. sysu. edu. cn Feng Rui(冯睿) : fengrui 080730@gmail. com

Contents of Chapter 9 • Defining Brand Equity • Developing a Branding Strategy • Chapter Case: P&G • Planning and Implementing a Brand Marketing Program • Measuring Brand Equity • Managing Brand Overtime 2

Defining Brand Equity 3

Defining Brand Equity What is a Brand? 4

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. 5

What is a Brand? User Culture Attributes Personality Benefits Values 6

The Role of Brands • Identify the maker • Signify quality • Simplify product handling • Create barriers to entry • Organize accounting • Serve as competitive advantage • Offer legal protection • Secure price premium 7

The Scope of Branding • • Physical goods Service Person Place Organization Idea ……. 8

What is Branding? Endowing products and services with the power of a brand. 9

What is Brand Equity? The added value endowed to products, reflected in how consumers think, feel, and act with respect to the brand, as well as the prices, market share, and profitability that the brand commands for the firm. 10

Brand Equity • Brand equity arises from differences in consumer response to the brand • Differences in response are a result of brand knowledge • Differential response is reflected in perception, preferences, and behavior related to the marketing of the brand 11

Brand Value Chain 12

Marketing Advantages of Strong Brands • Improved perceptions • Greater loyalty • Less vulnerable to competition • Less vulnerable to crises • Larger margins • More inelastic response to price increases • More elastic response to price decreases • Greater trade cooperation • Increased marketing communications • Possible licensing opportunities • Brand extension opportunities 13

Drivers of Brand Equity Brand Elements Marketing Activities Meaning Transference 14

Brand Knowledge Thoughts Feelings Knowledge Beliefs Images Experiences 15

Brand Associations • Brand associations should be: • Strong • Unique • Favorable 16

Secondary Sources of Brand Knowledge 17

Hypothetical Haier Associations Map 18

Developing a Branding Strategy 19

Steps/Tasks in Strategic Brand Management • Identifying and establishing brand positioning • Planning and implementing brand marketing • Measuring and interpreting brand performance and brand equity • Growing and sustaining brand value 20

An Overview of Branding Strategic Decisions Branding Decision • Brand • No brand Brand. Sponsor Decision Brand. Name Decision Brand. Strategy Management Decision Over-time • Manufacturer brand • Distributor (private) brand • Licensed brand • Co-branding • Individual brand names • Blanket family name • Separate family names • Companyindividual names • Line extension • Brand extension • Multibrands • New brands • Cobrands • Repositioning • Reinforc e • Revituali zation • Adustme nt to brand protfolio 21

Devising a Brand Strategies Brand Name Product Category Existing New Existing Line Extension Brand Extension New Multibrands New Brands 22

Brand Portfolio/Brand Naming Individual names Blanket family names Separate family names Corporate nameindividual name combo 23

Individual names/多品牌策略 24

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 25

Blanket family names/统一品牌策略 26

Corporate name-individual names /企业名称＋个别品牌策略 28

Branding New Products • • • Brand extension Sub-brand Parent brand Family brand Line extension • • • Category extension Brand line Brand mix Branded variants Licensed product 29

Co-Branding and Ingredient Branding • • Co-branding • Two or more well-known brands combined into a joint product or marketed together • Benefits - can increase sales, produce more information on consumers, reduce costs, accelerate adoption by virtue of combined brands • Risks - lose control, overexposure leading to dilution of association transfer, lose focus on existing brands Ingredient branding – create brand equity by including materials, components as part of a product into other branded products (e. g. “Intel inside”) 30

Brand Extensions • use existing brand to introduce a new product Advantages Disadvantages • Improved odds of success • Development of positive consumer expectations • Access to retailer support • Leverage of current brand awareness • Economies of scale in advertising, packaging, distribution • Dilution of brand name • Risk to brand integrity • Risk of harm to parent brand • Cannibalization of parent brand • Lost opportunity to create new brand 31

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 32

Brand Roles in a Brand Portfolio Flankers Cash Cows Low-end Entry-level High-end Prestige 33

Designing Holistic Marketing Activities Personalization Integration Internalization Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9 -34 34

Internal Branding • Choose the right moment • Link internal and external marketing • Bring the brand alive for employees 35

Devising and Implementing a Branding Program 36

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

Brand Elements Brand names Slogans Characters URLs Elements Logos Symbols 38

Good Brand Names: Distinctive Suggest Product Qualities Suggest Product Benefits Lack Poor Foreign Language Meanings Easy to: Pronounce Recognize Remember 39

Brand logos 40

Brand logos 41

Brand logos 43

Brand Element Choice Criteria Building the Brand Defending the Brand • Memorable • Meaningful • Likeable • Transferable • Adaptable • Protectable 44

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 45

Measuring Brand Equity 46

Measuring Brand Equity Brand audits Brand tracking Brand valuation 47

Brand Equity and Brand Valuation • Brand equity is the positive differential effect that knowing the brand name has on customer response to the product or service • One measure of equity is the extent to which customers are willing to pay more for the brand • Brand valuation is the process of estimating the total financial value of a brand 48

Brand Valuation TOP 10 Global Brands 2007 SOURCE: The 100 Top Brands. Business. Week. August 6, 2007: p. 59 49

Interbrand Valuation Method 50

Brand Equity Models • Brand Asset Valuator • Aaker Model • BRANDZ • Brand Resonance 51

BAV Key Components Differentiation Energy Relevance Esteem Knowledge 52

Brand Dynamics Pyramid Strong Relationship Bonding Advantage Performance Relevance Presence Weak Relationship 53

Aaker Model Brand Identity Core Identity Elements Extended Identity Elements Brand Essence 54

Brand Resonance Pyramid 55

Managing Brand Over Time 56

Managing Brand Over Time Brand Reinforcement Brand Revitalization Brand Crises 57

Brand Reinforcement • Requires innovation and relevance • Marketing activity must be consistent and move the brand forward and in the right direction • Marketing Insight: • The Basic Defects in Branding of China 58

Brand Revitalization • Improve strength, favorability, and uniqueness of brand image • Restore fading brand • “Return to roots” • Establish new sources of brand equity • Refresh brand • Expand the depth and/or breadth of brand awareness by improving consumer recall and recognition • Marketing in China: • Revitalize China’s Time-honored Brands 59

Brand Revitalization • Marketing in China: • Revitalize China’s Time-honored Brands Chinese Time-honored Brands Western Brands Introvert, Moderate Extrovert, Show-off Universal, Collective Different, Individual Harmonious, Steady Competitive, Creative Emphatic of internal quality Emphatic of communication Balanced Adore elegance, decency 60

Marketing Discussion Branding versus OEM ? 61

Marketing Discussion Are brand extensions good versus bad? Brand extensions can endanger brands. versus Brand extensions are an important brand-growth strategy. 62

Cases Discussion Chapter Case: P&G 1. With P&G being the most successful global supplier of consumer goods, what are the major features of its marketing innovation? 2. Analyze the strengths and weaknesses of P&G’s multibrand strategy. 63

Review 1. What is a brand how does branding work? 2. What are the important decisions in developing a branding strategy? 3. What is brand equity, and how is it built , managed, and measured? 64