Creating Brand Equity

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Creating Brand Equity
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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.
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The Role of Brands
Identify the maker
Simplify product handling or tracing
Organize accounting and inventory records
Offer legal protection for unique features or
aspects of product
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The Role of Brands
Signify quality
Create barriers to entry
Serve as a competitive advantage
Secure price premium
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Branding
Endowing products and services with the power of
a brand.
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Brand Equity
The differential effect that brand knowledge has
on consumer response to the marketing of that
brand.
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Brand Knowledge
Thoughts
Feelings
Knowledge
Images
Beliefs
Experiences
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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

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Branding a Place
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Brand Promise
The marketers vision of what the brand must be
and do for Consumers.
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The Virgin Brand
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Brand Equity Models

• Brand Asset Valuator
• Aaker Model
• BRANDZ
• Brand Resonance

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Brand Asset Valuator (BAV)
Brand Equity
Differentiation
Knowledge
Relevance
Esteem
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Aaker Model Brand Identity
Brand-as-organization (Organizational Attributes,
local vs. global)
Brand-as-product (Scope, attributes,
quality/value, uses, users, Country of origin)
Brand-as-person (Brand Personality, customer
relationships)
Brand-as-symbol (visual imagery/metaphors, Brand
heritage)
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Aaker Model Brand Assets
Brand loyalty
Brand associations
Brand awareness
Proprietary Assets (patents, trademarks, channel
relationships)
Perceived quality
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The BRANDZ Model (sequential steps)
Bonding (best)
Advantage (better)
Performance (deliver)
Relevance (value)
Presence (awareness)
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Brand Resonance Pyramid (sequential series of
steps)
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Drivers of Brand Equity
Brand Elements
Marketing Activities
Meaning Transference
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Brand Elements
Brand names
URLs
Slogans
Elements
Logos
Characters
Symbols
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Brand Elements
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Brand Element Choice Criteria

• Memorable
• recall
• Meaningful
• credible
• Likeability
• appealing

• Transferable
• other products or locations
• Adaptable
• updatable is brand elements
• Protectible
• legally

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The cupped hands are an element of Allstates
brand
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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
• Well pick you up
• Nextel Done
• Zoom Zoom
• Im lovin it
• Innovation at work
• This Buds for you
• Always low prices

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Designing Holistic Marketing Activities
Personalization (Internet, experiential,
one-to-one, permission)
Integration (mixing/matching marketing
activities to maximize individual/collective
effects)
Internalization (activities/processes to
inform/inspire employees)
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Measuring Brand Equity
Brand Audits (health of brand)
Brand Tracking (over time)
Brand Valuation (financial worth)
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The 10 Most Valuable Brands
Brand 2004 Brand Value (Billions)
Coca-Cola 67.39
Microsoft 61.37
IBM 53.79
GE 44.11
Intel 33.50
Disney 27.11
McDonalds 25.00
Nokia 24.04
Toyota 22.67
Marlboro 22.13
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Managing Brand Equity
Brand Reinforcement (consistently convey the
meaning of the brand)
Brand Revitalization
Brand Crises
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Devising a Branding Strategy
Develop new brand elements
Apply existing brand elements
Use a combination of old and new
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Brand Naming
Individual names (not tied to company reputation)
Blanket family names (create brand-name
recognition)
Separate family names (very different products)
Corporate name-individual name combo (sub-branding
Kelloggs Rice Krispies, Raisin Bran, Corn
Flakes)
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Brand Roles in a Brand Portfolio
Flankers (attack competitor brands so flagship
brands retain desired positioning)
Cash Cows (milk reservoir of existing brand
equity)
Low-end Entry-level (attract customers)
High-end Prestige (adds value credibility to
entire portfolio)
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Branding A Service Organization

• A strong service brand is essentially a promise
  of future satisfaction
• Blend (customers point of view) of what the
  organization
• states it is,
• what others say, and
• how the organization performs the service
• Principal components of a service brand
• Presented Brandcontrolled communications
• Brand Awarenessability to recognize recall
  brand
• External Branduncontrolled communications
• Brand Meaningdominant perceptions of brand
• Brand Equity--differential effect that brand
  knowledge has on consumer response to the
  marketing of that brand.

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A Service-Branding Model
Presented Brand
Brand Awareness

• External Brand
• Communications

Brand Equity
Customer Experiences with Company
Brand Meaning
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Cultivating Brand Equity
Internalize the Brand
Dare to be Different
Brand Equity
Determine your own Fame
Emotional Connection
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Dare to be Different

• The strongest brands reveal a conscious effort to
  be different
• Branding strategy goal is to reinforce a
  demonstrably different service experience with a
  demonstrably different brand presentation
• Starbucks could squeeze more tables and chairs
  into their stores, but doing so would undermine
  what they are really selling a respite and a
  social experience
• Because of its two-by-two configuration of
  leather seats (instead of the more common
  three-by-three seating), Midwest Express
  Airlines all coach service seems like first
  class.
• Enterprise Rent-A-Car customer-contact employees
  dress for differentiation. Men wear suits and
  women dresses or shirts and hose.

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Determine Your Own Fame

• Service companies strengthen brand equity by
  focusing on underserved marketing needs.
• Service companies with strong brand equity
  provide a service that customers truly value
  perform it better than competitors and
  effectively tell their story through
  communications that create awareness, stimulate
  trial, and reinforce customers experiences
• Charles Schwab Corporation gave investors who
  knew what stocks they wanted to buy or sell the
  opportunity to do so without paying full
  commissions for advice they did not use.
• In Zagats (1997) survey of 60 of the worlds
  largest airlines on comfort, service, timeliness,
  and food, Midwest Express ranked 1st in the
  United States and was the only U.S. airline to
  place in the worlds Top 10

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Make An Emotional Connection

• Great Brands reach beyond the purely rational and
  purely economic level to spark feelings of
  closeness, affection, and trust.
• Consumers live in an emotional world their
  emotions influence their decisions.
• Great Brands transcend specific product features
  and benefits and penetrate peoples emotions.
• Charlotte Beers (1998), chairman of J. Walter
  Thompson, stated The truth is, what makes a
  brand powerful is the emotional involvement of
  customers
• The Globetrotters is a magical branda brand that
  evokes images of fun and laugher, respect and
  decency, hard work, and good values.
• Midwest Express could portray chocolate chip
  cookies in its advertising, but far more powerful
  is actually baking them onboard for passengers
  and serving them with a warm smile

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Internalize the Brand

• Internalizing the brand involves explaining and
  selling the brand to employees. Most of all,
  internalizing the brand involves involving
  employees in the care and nurturing of the brand
• Enterprise Rent-A-Car
• Well pick you up
• Midwest Express noted that its employees are the
  most important audience for its marketing
  efforts.