Ch 09 Creating Brand Equity

www.kerwinchu.blogspot.comBe Greedy When Everyone Is Fearful

Chapter 9 – Marketing Management

By Philip Kotler & Kevin Lane Keller

May 2013

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Prepared By:Kerwin Wesley Chu



c1: What is a Brand and its Role

c2: What is Brand Equity

c2: Brand Asset Valuator

c4: Brand Element Choice Criteria

c5: Managing Brand Equity

Chapter Outline

Concept 1



c6: Creating Brand Portfolios

c7: Summary

Chapter Outline

Concept 1



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.

What is a Brand

Concept 1



What is a Brand

Concept 1

Name

Symbol/Sign

Design

ServicesOffered

Similar to individuals a

brand provides the IDENTITY to a

product.



Identify the maker

Simplify product handling

Organize accounting

Offer legal protection

Roles of Brand

Concept 1



Signify quality

Create barriers to entry

Serve as a competitive advantage

Secure price premium

Roles of Brand

Concept 1



Example of Brands

Concept 1-Example

Toothpastes being referred to as Colgate, a brand.

Sodas are equated to Coke.

Laundry detergents associated always with Tide.



What is Brand Equity

Concept 2

Think Feel

Consumers

Consumers

Added Value consumers see, think and feelof the brand with respect to other brands.

See



What is Brand Equity

Concept 2- Example

Identical 100% cotton White Shirt

HANES – Php 500 NIKE– Php 1,250

Sporty

Cool

Trendy

VS

Plain

Simple

Soft


Copyright © 2009 Pearson Education, Inc. Publishing as Prentice HallConcept 3

Brand Asset Valuator

BRAND VALUEA metric applied for the measurement

of brand value of an entity.



Components of Brand Asset Valuator

Differentiation - ability of a brand to stand apart from its competitors.

Relevance - how closely can the consumers relate to the brand’s offering

Energy – brings the brand alive.



Esteem -refers to consumer’s perception about the brand

Knowledge - refers to the degree of awareness about a brand.

Components of Brand Asset Valuator


Copyright © 2009 Pearson Education, Inc. Publishing as Prentice HallConcept 3 - Example

Esteem –UNIQUE

dance style

Relevance –APPEAL easy

to dance

Energy –MOMENTUM viewed more

than 1.6 Billion views

High BAV



Relevance –RESPECT as

hip and trendy

Knowledge –FAMILIARITY

as almost everyone can

dance the Gangnam



Brand Element Choice Criteria

•Memorable

•Meaningful

•Likeability

• Transferable

• Adaptable

• Protectible


Copyright © 2009 Pearson Education, Inc. Publishing as Prentice HallConcept 4 Example


SlogansMeans

“Just make it happen”

Symbol/Logo

“Swoosh”

Brand Name

“NIKE”




Now worth $15,000,000,000

Trademark ™ is protected by

law




• Memorable? Yes, 4 letter word “Nike”• Meaningful? • Likeability? • Adaptable?

• Protectible? •Transferable?




• Memorable? Yes, 4 letter word “Nike”• Meaningful? Yes, slogan easy to relate with • Likeability? • Adaptable?





• Memorable? Yes, 4 letter word “Nike”• Meaningful? Yes, slogan easy to relate with • Likeability? Yes, simple• Adaptable?





• Memorable? Yes, 4 letter word “Nike”• Meaningful? Yes, slogan easy to relate with • Likeability? Yes, simple• Adaptable? Yes, slogan applicable in all

aspects of life not only sport• Protectible? •Transferable?





aspects of life not only sport• Protectible? Yes, registered trademark•Transferable?





aspects of life not only sport• Protectible? Yes, registered trademark•Transferable? Yes, it can be sold as trademark



Managing Brand Equity

Brand reinforcement- getting consumers who have tried a particular brand to become repeat purchasers and with attracting new users.

Brand revitalization -A strategy to recapture lost sources of brand equity and identify and establish new sources of brand equity.



Managing Brand Equity

Brand crises -A special form of a product-harm crisis where the negative event centerson one particular brand or a set of brands belonging to the same company.


Copyright © 2009 Pearson Education, Inc. Publishing as Prentice HallConcept 5- Example

Brand Reinforcement

Smart Communications

- Smart is the Philippines' leading wireless services provider

- Engages in daily TV commercials and print ads

- Sponsors the Smart Gilas and Philippine Azkals

- Has a basketball team in the PBA

- Leased the name of a coliseum

Source: http://www1.smart.com.ph/about/meet/corporate-profile



Brand Revitalization

Arce Dairy- Established in 1935 as a popular ice cream brand

- Sold in the 1990s to RFM then was immobilized

- Re-launched in early 2000

- Only ice cream made of fresh carabao’s milk

- Positioned product as tastier and richer

(more flavorful)

Source: http://www.arcedairy.com/



Brand CrisisLudy’s Peanut Butter found contaminated with Salmonella (2009)

- Resulted to a drop in sales

- Recall of products in the stores

- People avoided buying Ludy’s

- Required mass media management

http://www.philstar.com/breaking-news/450918/ludys-peanut-butter-tests-positive-salmonella



Result of specifying the roles and relationships of a company's brands to one another to ensure they are clearly positioned and clearly marketed to the company's target audiences.

Brand Portfolio



Reasons for Brand Portfolios Increasing presence and retailer

dependence in the store

Attracting consumers seeking variety

Increasing internal competition within the firm

Yielding economies of scale in advertising, sales, merchandising, and distribution



Brand Roles in a Brand Portfolio

Flankers - Fighter brands that are positioned w/ respect to competitors’ brands so that more important (profitable) brands are able to retain their desired position.

Cash cows – A brand able to hold on to enough customers & maintain profitability w/ virtually no marketing support




Low-end, entry-level – Known as “traffic builders”

and they are able to “trade up” customers

to the higher-priced brands.

High-end prestige - Brands that add prestige and credibility to the entire portfolio




Company: Ayala Land Corporation

Flankers – Targets high end market as well

Cash cows – For middle class market

Low-end– Provides low cost housing

High-end prestige – Ultra-rich segment



Summary

Brand

IDENTITY



Summary

Brand

IDENTITY

ThinkFeel

See

Equity

Consumers

Consumers



Summary

BRAND VALUE



Summary

Portfolio



Summary

Portfolio

Management


Chapter 9 – Marketing Management

By Philip Kotler & Kevin Lane Keller

May 2013


Prepared By:Kerwin Wesley Chu

Ch 09 Creating Brand Equity

Technology

Transcript of Ch 09 Creating Brand Equity