Brand Equity 2010

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• Brand – what and how

• Understanding Brand Equity

Key Concepts

Copyright 2007, Prentice-Hall Inc.

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Brand

• Simply put, a brand is a promise. By identifying and authenticating a product or service it delivers a pledge of satisfaction and quality.

• A set of assets (or liabilities) linked to a brand's name andsymbol that adds to (or subtracts from) the value provided by a product or service…

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Brand

• A brand is the most valuable real-estate in the world, a corner of the consumer's mind.

• A brand is a collection of perceptions in the mind of the consumer.

What is a Brand?Name, logo, slogan and/or designEmbodiment of all the information connected

to a product or serviceAssociations and expectations about a

product or serviceTRUST

Copyright 2007, Prentice-Hall Inc.

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The Power of a Strong BrandMRI Study

• Strong brands produced activity in the part of the brain associated with:• Positive emotions• Self-identification• Rewards

• Weak brands provoked activity in the parts of the brain associated with:• Negative emotion• Memory (requiring brain

to work harder)

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Marketing Beyond the Monkey

• Monkey• Stimulus, response

• End of supply chain

• Consumption as improving physical

• Passive recipient

• Beyond• Creating meaning

• Beginning

• Consumption as improving life

• Active creator

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• “Whenever life becomes unbearable, man has found a new way to look upon it” Theodore Zeldin, historian

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• “We tell ourselves stories in order to live. Good stories make the world more bearable.”

Joan Didion

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Progression to Brands

From Storytelling,

To Mass Media

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To Brands

• Brands symbolize shorthand material representing certain ideas or ideals that seem important to us at the time

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Marketing Beyond the Monkey

• Growth lies not in making more ‘stuff’, but in making ‘stuff’ more meaningful

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Brands as Belief

• “As human beings, we are hard-wired to believe.” Patrick Hanlon, Primal Branding

• Brands are belief systems

• Believing is belonging

• “In a parity world, my best friend wins”

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Maslow’s Hierarchy of Need

Belief System

Creation Story

Creed

IconsRitualsPagans

Sacred Words

Leader

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The Creation Story

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The CreedCore Set of Principles

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The Creed

• Starbucks Coffee Company provides an uplifting experience that enriches people’s lives one moment, one human being, one extraordinary cup of coffee at a time.

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IconsSensory Imprints that Instantly

Summon the Brand Essence

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The Rituals

• The repeated interactions that people have with your enterprise

• The meaningful repeated points of contact between you and your guest, customer, client or target market

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The Pagans, or Nonbelievers

Mac and PC

The Uncola

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Sacred Words

• The language. If you know the language, you belong.

• Quad Venti Skinny with Whip Iced Caramel Macchiato

• Ttyl g2g2wk lyl

• USN – probs, jakes, sip, gaf, gaffleton pie

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The Leader

• Leader as catalyst, risk taker, visionary, iconoclast against the odds

Brand Value to ConsumersBenefits ReceivedCan be:

Real/TangiblePerceived/Intangible

All relative to competitors

Price PaidRelative to competitors

Value always from the consumer’s perspective

for the

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Brand Equity

• Brand equity—the added value endowed on products and services, reflected in how customers think, feel, and act with respect to the brand, as well as in the prices, market share, and profitability the brand commands for the firm.

Customer-based Brand Equity

• Customer-based brand equity—the differential effect that brand knowledge has on consumer response to that brand’s marketing.• Arises from customer response

• Differential response is reflected in perceptions, preferences, and behaviors

T-Mobile Heathrow

• http://youtu.be/NB3NPNM4xgo?hd=1

Lebron James

• http://www.youtube.com/watch?v=cdtejCR413c

• http://www.thestar.com/sports/basketball/article/882538--lebron-james-and-the-era-of-confessional-advertising?bn=1

• http://adage.com/columns/article?article_id=146776

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Measurement of Brand Equity

• Economic value of the brand asset itself

• The price premium (to the end consumer or the trade) that the brand commands

• The long term consumer loyalty the brand evokes

• The market share gains that result

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Demand Curve Shift

• The power of the brand to shift the consumer demand curve (to achieve a price premium or a market share gain).

Brand Equity Pyramid

Features & Attributes

Benefits

Beliefs & Values

Most enduring but hardest to deliver

Easy to deliver and to imitate

Salience

Performance Imagery

JudgmentsFeelings

ResonanceBrand Equity Pyramid

SalienceCategory Identification

Needs Satisfied

PerformancePrimary Characteristics

Secondary FeaturesProduct Reliability

Durability and Serviceability

Service EffectivenessEfficiency and Empathy

Style and DesignPrice

ImageryUser Profiles

Purchase and UsageSituations

Personality andValues

History, Heritage,and Experience

JudgmentsQuality

CredibilityConsideration

Superiority

FeelingsWarmth

FunExcitement

SecuritySocial Approval

Self-Respect

ResonanceLoyalty

AttachmentCommunityEngagement

Subdimensions of Brand Building Blocks

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Brand Equity Pyramid

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Brand Development Strategies

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Brand Development

• Line extension: • introduction of additional items in a given

product category under the same brand name (e.g., new flavors, forms, colors, ingredients, or package sizes).

• Brand extension: • using a successful brand name to

launch a new or modified product in a new category.