10 Kotler chapter 11 Marketing

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10

Creating Brand Equity


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Copyright 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from

the United States edition of Marketing Management, 14e. 10-2

Chapter Questions

What is a brand and how does branding

work?

What is brand equity?

How is brand equity built, measured, andmanaged?

What are the important decisions in

developing a branding strategy?


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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


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What Is a Brand?

A brandis a name, term, sign, symbol ordesign, 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

Organize accounting

Offer legal protection

Signify quality

Create barriers to entry Serve as a competitive advantage

Secure price premium


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What Is Branding?

Branding is endowing products

and services with the power of the

brand.

Brand equityis 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.


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Consumer based brand equity

CBBE is thus the differential effect brand

knowledge has on consumer response to the

marketing of that brand.

Brand Promise: is the marketers vision ofwhat the brand must be and do for customers


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Advantages of Strong Brands

Improved perceptions

of product performance

Greater loyalty

Less vulnerability tocompetitive marketing

actions

Less vulnerability tocrises

Larger margins

More inelastic

consumer response

Greater tradecooperation

Increased marketing

communicationseffectiveness

Possible licensing

opportunities


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What Is a Brand Promise?


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Brand Equity Models

Brand Asset Valuator (BAV)

Brandz

Brand Resonance


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Figure 10.1 BAV Model

Source:

Courtesy of

BrandAsset

Consulting,

a division ofYoung &


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Figure 10.2 Universe of

Brand Performance


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Figure 10.3

Brand Dynamics Pyramid

Source: BrandDynamics Pyramid. Reprinted with permission of Millward Brown.


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Figure 10.4 Brand Resonance

Pyramid


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Drivers of Brand Equity


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Brand Elements

Brand names

Slogans

Characters

Logos

URLs


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Brand Element Choice Criteria

Memorable

Meaningful

Likeable

Transferable

Adaptable

Protectable


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Figure 10.5 Secondary Sources of

Brand Knowledge


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Figure 10.6 Brand Value Chain

Source: Kevin Lane Keller, Strategic Brand Management, 3rd ed. (Upper Saddle River, NJ:

Prentice Hall, 2008). Printed and electronically reproduced by permission of Pearson Education,Inc. Upper Saddle River, New Jersey.


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Measuring Brand Equity

Brand audits

Brand tracking

Brand valuation


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Figure 10.7 Interbrand Brand

Valuation Method


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Managing Brand Equity

Brand reinforcement

Brand revitalization


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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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Branding Terms

Brand line

Brand mix

Brand extension

Sub-brand

Parent brand

Family brand

Line extension

Category extension

Branded variants

Licensed product


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Reasons for Brand Portfolios

Some other reasons for introducing multiple

brands in a category include increasing shelf

presence and retailer dependence in the store,

attracting consumers seeking variety, increasinginternal competition within the firm, and yielding

economies of scale in advertising, sales,

merchandising, and distribution.


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Brand Roles in a Brand Portfolio

Flankers

Cash cows

Low-end, entry-level

High-end prestige


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Brand Extensions: Advantages

Improved odds of new-product success

Positive feedback effects


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Brand Extensions: Disadvantages

Brand dilution

Brand confusion

Damage to parent brand

Cannibalization


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For Review

What is a brand and how does branding

work?

What is brand equity?

How is brand equity built, measured, andmanaged?

What are the important decisions in

developing a branding strategy?

10 Kotler chapter 11 Marketing

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