© 2007 John Wiley & Sons Chapter 9 - Building and Managing Brand Equity PPT 9-1 Building & Managing...

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Chapter 9 - Building and Managing Brand Equity PPT 9-1

Building & Managing Brand Equity

Chapter Nine

Copyright © 2007 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without the express written permission of the copyright owner is unlawful. Requests for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein.

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BrandAssociations

BrandLoyalty

Brand Awareness

BrandEquity

Brand equity—Assets and liabilities connected to the brand

Figure 9.1

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sWorld’s Most Valuable Brands

20052005 2008 2008 20092009

1. Coca-Cola

2. Microsoft

3. IBM

4. GE

5. Intel

6. Nokia

7. Disney

8. McDonald’s

9. Marlboro

10.Mercedes

1. Coca-Cola

2. IBM

3. Microsoft

4. GE

5. Nokia

6. Toyota

7. Intel

8. McDonald’s

9. Disney

10.GoogleSource: Interbrand Surveys, Apr. 2008 & Sept. 2009

1. Coca-Cola

2. IBM

3. Microsoft

4. GE

5. Nokia

6. McDonald’s

7. Google

8. Toyota

9. Intel

10.Disney

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Brand Identity Principles• Multiple dimensions—not just a three word

phrase• No restrictions—beyond attributes/benefits• Dimensions are prioritized

– Core identity—more important elements• Source of differentiation, resonance, and strategy• Drive major programs, initiatives

– Extended identity provides texture and completeness—helps determine what is on-brand

• Essence—Optional • Internal communication

– vs. position/tagline—what we communicate externally now

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Why Brand Identity?

ExternallyShape our brand imageProvide basis for relationships and choice

Internally Stimulate programs and prioritize

initiativesInspire people

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Brand Identity Potential Dimensions

• Attributes/benefits/branded differentiators• Personality• Organizational associations• Emotional & self-expressive benefits• Product class relevance-scope

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SimpleAs Dell

Value forPerformance

Customization

Incredible ServiceDell Responds

Direct ModelLatest

Technology

Close to CustomerUnderstands needs• Equipment• Communication

Personality Competent, Successful Serious (not Apple) Approachable

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Identify Core Identity Elements

Spirit of Excellence

Worldlybut Informal

TechnologyThat Fits

Core Identity

Confident, Competent

SupportWorld HealthGlobal Network

Of Local Experts

OpenCommunicator

TeamSolutions

Core—Most Important

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The Brand Essence

Spirit of Excellence

Worldlybut Informal

TechnologyThat Fits

Core Identity

Commitment toExcellence—anytime, anywhere, whatever it

takes

Confident, Competent

SupportWorld HeathGlobal Network

Of Local Experts

OpenCommunicator

TeamSolutions

A compact theme or concept that representsmuch or all of the core identity

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The Brand Essence

Essence: A compact theme or concept that representsmuch or all of the core identity—for internal communication

vs. Tagline: Summarizes the position—for external communicationTagline can be but rarely is the essence Do you Yahoo? Did somebody say McDonald’s Like a rock (Chevy Trucks)

Essence can be understated Just works better focused on functional benefits German engineering (VW) Casual luxury (Banana Replubic) focused on emotional benefits Power to be your best (Apple) Do more (American Express) Note the dual meaning

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Nike Core Identity & Essence

Brand Identity Model™

Performingat Your

Best

• Brand Essence– Performing at Your Best

• Core Identity– Excellence/Winning– Exhilaration– Individual Success– Technological Advancement

Illustrative

ExhilarationExcellence

TechnologicalAdvancement

IndividualSuccess

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Brand Identity Objectives

• Resonate• Differentiate or reflect

points of parity• Have or Gain

Credibility• Reflect Strategy• Have Clarity

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Resonate with Customers

TeamSolutions

Resonance—it should matter to customers & add value e.g. Customer now demand total solutions

Close toCustomers

Geographically & Culturally

AnticipateNeeds

Customized Solutions

Collaborative

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Differentiation/Points of Parity

TeamSolutions

Collaborative

Differentiation—Unique or different assets and programs e.g. Multi-cultural staff

Parity—dimensions on which the brand needs to be perceived as adequate so that competitor brand strengths are neutralized

Close toCustomers


AnticipateNeeds


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Credibility—Proof Points & Strategic Imperatives

Proof points—Existing strengths and programs that provide credibility e.g. Have the organizational scope and capability to do it all

TeamSolutions

Close toCustomers


AnticipateNeeds


Collaborative

Strategic Imperative—Assets and Programs needed to deliver future credibilitye.g. Build incentives—team behavior and culture; reduce arrogance

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Chapter 9 - Building and Managing Brand Equity

Positioning

Identity Rich Long-term

Position Focused Immediate

Depth Time Frame

Brand identityAspirational associationsCustomer promise

PositioningShort-term communication objectives

Positioning

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Key Learnings• Brand equity, a key asset for any business, consists of brand awareness,

brand loyalty, and brand associations.

• Awareness provides a sense of familiarity, credibility, and relevance in that customers are more likely to consider brands that are top-of-mind.

• A core loyal customer base reduces the cost of marketing, provides a barriers to competitors, supports a positive image, and provides time to respond to competitor moves.

• Brand associations can and should go beyond attributes and benefits to include such associations as brand personality, organizational intangibles, and product category associations.

• The brand identity represents aspirational associations. The most important of these, the core identity, should be supported by proof points and/or strategic imperatives and should be the driver of strategic programs including product development.

• While the identity represents long-term aspirational associations and is multidimensional, the position represents the short-term communication objectives and is more focused.

© 2007 John Wiley & Sons Chapter 9 - Building and Managing Brand Equity PPT 9-1 Building & Managing...

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