Ch'2 The MARCOM Process and Brand Equity Enhancement

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• Ch.2 The MARCOM Process and Brand Equity
  Enhancement
• Objectives

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A model of the MARCOM decision-making process

• Marcom Program
• Fundamental decision
• Positioning (what to say)
• Targeting (whom to say)
• Setting objectives (What to accomplish)
• Budgeting (How much to spend)

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A model of the MARCOM decision-making process

• Marcom Program
• Implementation Decisions
• Mixing Elements
• Creating Messages
• Selecting Media
• Establishing Momentum

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A model of the MARCOM decision-making process

• Marcom Program
• Outcomes
• Enhance Brand equity
• Affecting Behavior
• Evaluations
• Measures of communication outcomes brand
  awareness, message comprehension, attitude toward
  the brand, and purchase intentions
• Corrective action call for greater investment,
  revised strategy

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What is Brand?

• Name, term, sign, symbol, or design, or
  combination of them intended to identify the
  goods and services of one seller or group of
  sellers and to differentiate them from those of
  competition (American Marketing Association)

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Unique Personalities of Brand

• More than just a name
• Volvo Safety
• Perdue Freshness
• Personalities of consumer brand
• Sincerity
• Excitement
• Competence
• Sophistication
• Ruggedness

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Definition of Brand Equity

• Brand Equity
• A brand possesses equity to the extent that
• consumers are familiar with the brand and
• have stored in their memory warehouses
• favorable, strong and unique brand
• associations

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Two forms of Brand Knowledge

• Brand Awareness
• An issue of whether a brand name comes to
• mind when consumers think about a
• particular product category and the ease
• with which the name is evoked

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Two forms of Brand Knowledge

• Brand Image
• The types of associations that come to
• the consumers mind when
• contemplating a particular brand

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Consumer-Based Brand Equity Framework
Brand Knowledge
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The Brand Awareness Pyramid

• Unaware of Brand
• Brand Recognition
• Brand Recall
• Top of Mind (TOMA)

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Brand Equity Enhancement

• Brand equity enhanced by
• Name awareness
• Positive associations
• Perceived quality
• Strong brand loyalty

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The Value of Brand Equity

• Brand 2001 Value in Billions
• Coca-Cola 68.9
• Microsoft 65.1
• IBM 52.8
• General Electric 42.8
• Nokia 35.0
• Intel 34.7
• Disney 32.6
• Ford 30.1
• McDonalds 25.3
• ATT 22.8
• Source Business Week Online/Interbrand

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Co-Branding and Ingredient Branding
Co-Branding

• Two or more brands enter into a partnership that
  potentially serves to enhance both brands equity
  and profitability
• An important requirement for successful
  co-branding logical fit between the two
  brands (e.g. Harley-Davidson with a line of
  flashlights)

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Co-Branding and Ingredient Branding
Ingredient Branding

• A special type of alliance between branding
  partners
• e.g., Intel Inside Lycra