bmgt_411_marketing_management_ chris lovett fall 2014

1. BMGT 411: Chapter 8, Brand Equity

2. Chapter 8 Questions
• What is a brand and how does branding work?
• What is brand equity and how is it built, measured, and managed?
• What are the important decisions in developing a branding strategy?

3. Steps in
Strategic Brand Management
• Identifying and establishing brand positioning
• Planning and implementing brand marketing
• Measuring and interpreting brand performance
• Growing and sustaining brand value

4. 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.

5. Attributes of Great Brands

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

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

8. What is Branding?
•Branding is endowing products
and services with the power of
the brand.
•Teaching customers “who”
the product is
•Tells customers what the
product does
•Reinforces why consumers
should care

9. What is Brand Equity?
• Brand equity is the added value endowed on products and services, which
may be reflected in the way consumers, think, feel, and act with respect to
the brand.
• What are some of your favorite brands?
• Why?
• What feelings do you get when you think go these brands?

10. Brand Equity
What comes to mind when you
think of these brand retailers?
!
Why?

11. Advantages of Strong Brands
• Improved perceptions of product
performance
• Greater loyalty
• Less vulnerability to competitive
marketing actions
• Less vulnerability to crises
• Larger margins
• More inelastic consumer response
• Greater trade cooperation
• Increased marketing
communications effectiveness
• Possible licensing opportunities

12. What is a Brand Promise?
• A brand promise is the marketer’s vision of what the brand must be and do
for consumers.
• What do you think the brand promise is for the retailers we discussed?

13. Brand Equity Models
Brand Asset Valuator (BAV)
Brandz
Brand Resonance

14. Brand Asset Valuator
(BAV)
Strong New Brands: Higher in
Energized Differentiation, low
esteem and knowledge
!
Leadership Brands: High in all
categories
!
!
Declining Brands: High
Knowledge, low everything
else

15. Figure 8.2
Brand Dynamics
BrandZ Model

16. Figure 8.3 Brand
Resonance Pyramid
Think of Brands in these
Stages?

17. Building Brand Equity
1.Identify Brand Elements (Name, Logo, URL, etc) and identities that make up
the brand
2.The Product, Service, and All Marketing Activities and Marketing Programs
3. Other associations indirectly transferred to the brand (Figure 8.4 Page 119)

18. Brand Elements
• Brand names
• Slogans
• Characters
• Symbols
• Logos
• URLs
• Social Media Presence
• Customer Service Strategy

20. Brand Element Choice Criteria
• Building the Brand
• Memorable: Is the elements easily
recalled and recognized at
purchase and consumption (Tide)
• Meaningful: Is the element credible
and suggestive of the category?
Does it suggest something about
an ingredient or brand user?
(Diehard)
• Likable: Is the element appealing
and likable visually or in other
ways? (iPad)
• Defending a Brand
• Transferrable: Can the element
introduce new products in the
same category or other
category? (Amazon, Soap.com,
Wag.com, diapers.com)
• Adaptable: Can the element be
adapted and updated (Betty
Crocker image)
• Protectable: Is the element
legally and competitively
protected? Google

21. Betty Crocker Images Brand of General Mills

22. The Color of a Brand

23. The Color of a Brand

24. Secondary Sources of
Brand Knowledge

25. Cult Brands: Building Equity
Without Promotions
http://www.youtube.com/watch?
v=ZUG9qYTJMsI&feature=playe
r_embedded#!

26. Measuring Brand Equity
• Brand audits: A consumer focused series of procedures to asses the health
of the brand, uncover its sources of equity, and suggest ways to improve and
leverage it’s equity.
• Brand tracking: Qualitative Marketing Research that collects data from
consumers over time to provide baseline information on how brands and
marketing programs are performing
• Brand valuation: The actual financial value of a brand

27. Interbrand Retail US
Brand Valuations
http://www.interbrand.com/en/
best-global-brands/2013/BGB-
Interactive-Charts.aspx

28. Branding Terms (Page 122)
• Brand line
• Brand mix
• Brand extension
• Sub-brand
• Parent brand
• Family brand
• Line extension
• Category extension
• Branded variants
• Licensed product

29. Branding Decisions
• Individual or Separate Family Brand Names: Individual names of brands
across multiple categories, even though the company that makes the
products are the same

30. Branding Decisions
• Corporate Umbrella or Company Brand Name: Use one name across a variety
of products. Becoming very popular as a strategy of private label products.

31. Branding Decisions
• Sub Brand Names: Combines corporate umbrella brands with individual or
family brands

32. Brand Portfolios
• Flankers
• Cash cows
• Low-end, entry-level
• High-end prestige

33. Brand Portfolios
• Flankers: Fighter brands are positioned alongside competitor brands so that
more important and more profitable flagship brands can retain their desire
positioning
• Cash cows: Still profitable without much marketing, dwindling sales, but still
profitable
• Low-end, entry-level: Attract customers to the brand franchise with lower
prices
• High-end prestige: Higher priced, adds prestige and credibility to overall
portfolio

34. Brand Extensions
• Most products are Brand Extensions (80-90%) - as they create new demand
based on trends, customer tastes, without building the brand from scratch
each time a new product is launched.
• A key trend is ease and convenience “Lifehacks”

35. Final Notes on Brands

36. Final Notes on Brands