CHAPTER ONE -INTRODUCTION TO STRATEGIC BRAND MANAGEMENT

Course Title: Strategic Brand Management

Introduction

A name becomes a brand when consumers associate it with a set of

tangible and intangible benefits that they obtain from the product or service

It is the seller’s promise to deliver the same bundle of benefits/services consistently to buyers (Brand Promise Brand Equity)

Steps in theStrategic Brand Management Process

1. Identifying and establishing brand positioning

2. Planning and implementing brand marketing

3. Measuring and interpreting brand performance

4. Growing and sustaining brand value

Definition

“A brand is a name, term, sign, symbol or design, 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”

Role of Brands

Consumer Benefits Identify source/maker Simplifies decision making Reduces risk

Marketer Benefits Simplify product handling Protect unique features Create loyalty Establish barriers to entry

Advantages of Strong Brands Improved perceptions of product performance Greater loyalty Less vulnerability to competitive marketing

actions Less vulnerability to crises Larger margins More inelastic consumer response Greater trade cooperation Increased marketing communications

effectiveness Possible licensing opportunities

Brand Elements

Brand Names URLs Logos Symbols Characters Spokespeople Slogans Jingles Packages

Brand Element Choice Criteria Memorable Meaningful Likeability Transferable Adaptable Protectible

Elements and Measurement

BRAND EQUITY

Introduction

Brands have financial value because they have created assets in the minds and hearts of

customer, distributors, prescribers and opinion leaders.

Brand Equity When a commodity becomes a brand, it is said to

have equity. The premium a brand can command in the

market The difference between the perceived value and

the intrinsic value

Customer-Based Brand Equity

It is the differential effect that brand knowledge has on consumer response to the marketing of that brand

A positive CBBE means customers might be more accepting to the marketing activities (ie. the marketing mix) for a brand

Aaker’s Brand Equity Model

Aaker’s Brand Equity Model

Brand Equity Framework

Brand Equity

Brand Awareness

Brand Recall

Brand Recognitio

n

Brand Attributes

& Associatio

ns

Uniqueness

Favorability Relevance

Brand Loyalty

Perceived Quality

Brand Associations: Uniqueness

USP Unique Selling Proposition Product-related Image Related

Points of Difference - How brand is unique Points of Parity - How brand is similar to

others

Brand Equity Framework

Brand Knowledge

Knowledge

Thoughts

Experiences

Beliefs Images

Feelings

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CUSTOMER-BASED BRAND EQUITY PYRAMID

RESONANCE

SALIENCE

JUDGMENTS FEELINGS

PERFORMANCE IMAGERY

4. RELATIONSHIPS =

What about you & me?

4. RELATIONSHIPS =

What about you & me?

3. RESPONSE =

What about you?

3. RESPONSE =

What about you?

2. MEANING =

What are you?

2. MEANING =

What are you?

1. IDENTITY =

Who are you?

1. IDENTITY =

Who are you?

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Customer-Based Brand Equity Model

Consumer-BrandResonance

Brand Salience

Consumer Judgments

Consumer Feelings

BrandPerformance

BrandImagery

INTENSE, ACTIVE LOYALTY

INTENSE, ACTIVE LOYALTY

RATIONAL & EMOTIONAL REACTIONS

RATIONAL & EMOTIONAL REACTIONS

POINTS-OF-PARITY &

POINTS-OF-DIFFERENCE

POINTS-OF-PARITY &

POINTS-OF-DIFFERENCE

DEEP, BROAD BRAND

AWARENESS

DEEP, BROAD BRAND

AWARENESS

Customer-Based Brand Equity Pyramid

Brand Salience - How brand stands out from the rest (Prominence)

Brand Performance - How product meets customers’ functional needs

Brand Imagery - Strong, Unique Associations How brand meets psychological or social needs Brand Judgments - Personal opinions &

evaluations of brand Brand Feelings - Emotional responses to brand Brand Resonance - Intense loyalty, Active

involvement with brand