CHAPTER 15: CLOSING OBSERVATIONS

1
CHAPTER 15 CLOSING OBSERVATIONS

• Kevin Lane Keller
• Tuck School of Business
• Dartmouth College

2
Brand Knowledge Structure

• Brand awareness, depth, and breadth
• Brand associations

3
Summary of Customer-Based Brand Equity Framework

• Sources of brand equity
• Strength
• Favorability
• Uniqueness
• Outcomes of brand equity
• Greater loyalty
• Less vulnerability to competitive marketing
  actions
• Less vulnerability to marketing crises
• Larger margins
• More inelastic consumer response to price
  increases
• More elastic consumer response to price decreases
• Greater trade cooperation and support
• Increased marketing communication effectiveness
• Possible licensing opportunities
• Additional brand extension opportunities

4
Tactical Guidelines

• Building brand equity
• Through the initial choice of the brand elements
  making up the brand
• Through marketing activities and the design of
  the marketing program
• Through the leverage of secondary associations
  that link the brand to other entities

5
Guidelines for Building Brand Equity

• Mix and match brand elements
• Create a rich brand image and high perceived
  quality
• Adopt value-based pricing strategy
• Consider a range of distribution options
• Mix marketing communication options
• Leverage secondary associations

6
Importance of Complementarity and Consistency

• Complementarity means choosing different brand
  elements and supporting marketing activities so
  that the potential contribution to brand equity
  of one compensates for the shortcomings of
  others.
• A high degree of consistency across these
  elements helps to create the highest level of
  awareness and the strongest and most favorable
  associations possible.

7
Guidelines for Measuring Brand Equity

• Formalize the firms view of brand equity
• Conduct brand inventories
• Conduct consumer tracking studies
• Assemble results of outcome measures
• Establish a department to oversee the
  implementation

8
Guidelines for Managing Brand Equity

• Define brand hierarchy
• Create global associations
• Introduce brand extensions
• Clearly establish the roles of brands in the
  portfolio
• Reinforce brand equity over time
• Enhance brand equity over time
• Identify differences in consumer behavior in
  different market segments

9
Characteristics of Strong Brands Managers

• Understand brand meaning and market appropriate
  products in an appropriate manner
• Properly position the brand
• Provide superior delivery of desired benefits
• Employ a full range of complementary brand
  elements and supporting marketing activities
• Embrace integrated marketing communications and
  communicate with a consistent voice
• Measure consumer perceptions of value and develop
  a pricing strategy accordingly
• Establish credibility and appropriate brand
  personality and imagery
• Maintain innovation and relevance for the brand
• Strategically design and implement a brand
  hierarchy and brand portfolio
• Implement a brand equity management system to
  ensure that marketing actions properly reflect
  the brand equity concept

10
Seven Deadly Sins of Brand Management

• Failure to understand the full meaning of the
  brand
• Failure to live up to the brand promise
• Failure to adequately support the brand
• Failure to be patient with the brand
• Failure to adequately control the brand
• Failure to properly balance consistency and
  change with the brand
• Failure to understand complexity of brand
  equity measurement and management

11
Industrial and B2B Branding

• Adopt a corporate or family branding strategy
• Link non-product-related imagery associations
• Employ full range of marketing communication
  options
• Leverage equity of other companies that are
  customers
• Segment markets carefully and develop tailored
  branding and marketing programs

12
Guidelines for High-Tech Branding

• Establish brand awareness and rich brand image
• Create corporate credibility associations
• Leverage secondary associations of quality
• Avoid overbranding products
• Selectively introduce new products as new brands
  and clearly identify the nature of brand
  extensions

13
Guidelines for Service Branding

• Maximize service quality
• Employ a full range of brand elements to enhance
  brand recall
• Create and communicate strong organizational
  associations
• Design corporate communication programs that
  augment consumers service encounters and
  experiences
• Establish a brand hierarchy using distinct family
  or individual brands as well as meaningful
  ingredient brands

14
Guidelines for Branding Retailers

• Create a brand hierarchy consisting of the store
  as a whole as well as individual departments
• Enhance the manufacturers brand equity by
  communicating PODs
• Establish brand equity at all levels of the brand
  hierarchy
• Create multichannel shopping experience
• Avoid overbranding

15
Guidelines for Small Business Branding

• Emphasize building one or two strong brands
• Focus the marketing program on one or two key
  associations
• Employ a well-integrated set of brand elements
  that enhances both brand awareness and image
• Design creative brand-building push campaigns
• Leverage as many secondary associations as
  possible

16
Guidelines for Online Branding

• Dont forget the brand building basics
• Create strong brand identity
• Generate strong consumer pull
• Selectively choose brand partnerships
• Maximize relationship marketing

17
Future Brand Priorities

• How will branding change in the coming years?
  What are the biggest branding challenges? What
  will make a successful twenty-first-century
  brand?

18
Building Brand Equity

• Brand elements
• In a cluttered, competitive marketplace, the
  brand elements that make up the brand will have
  to do more and more of the selling job.
• Marketing programs
• Strong brands in the twenty-first century also
  will rise above others by better understanding
  the needs, wants, and desires of consumers and
  creating marketing programs that fulfill and even
  surpass consumer expectations.

19
Measuring Brand Equity

• Marketers of successful twenty-first-century
  brands will create formalized measurement
  approaches and processes that ensure they
  continually monitor their sources of brand equity
  and those of competitors.

20
Managing Brand Equity

• It will be essential in building strong
  twenty-first-century brands to align internal and
  external brand management.
• Internal brand management ensures that employees
  and marketing partners appreciate and understand
  basic branding notions and how they can affect
  the equity of brands.
• External brand management requires understanding
  the needs, wants, and desires of consumers and
  creating brand marketing programs that fulfill
  and even surpass consumer expectations.
• Companies must also align bottom-up and top-down
  marketing management .

21
Achieving Marketing Balance

• The most fundamental challenge of marketing and
  brand management is reconciling the many
  potential trade-offs in marketing decisions
• There are three means or levels of achieving
  marketing balance, in increasing order of
  potential effectiveness
• Alternate
• Divide
• Finesse