Chapter 9: Creating Brand Equity

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CHAPTER 9:CREATING BRAND

EQUITY

Increasing Value Through Strategic Brand Management

Anna Michelle P. Gatbonton

September 17, 2013


1. What is Brand? 2. The Role of Brands3. Defining Brand Equity4. Customer Based Brand Equity5. How to build brand equity6. Brand Naming Strategies

Outline:

The 6 Concepts in Brand Equity


1. What is Brand?

BRAND

Name

Term

Sign Symbol

Design

To identify the goods or services of a seller and to differentiate them from competitors


1. Can you recognize these brands?


1. APPLE: A Branding Success Story


2. Why brand matters

Distinguish goods of one producer from those of another

Simplifies decision making and reduces

risks for the consumers

Simplify Product handling or tracing &

help organize inventory and

accounting records

Protect unique features or aspects of

the product

Secure competitive advantage through

brand loyalty


2. How Apple Uses Branding

Distinguishing Producers: Apple vs.

Microsoft

Simplifying Consumers Decision Making:

Apple as the preferred brand of graphic

artists

Simplifying Product Handling: iMac, iPod,

iPad

Protect Unique features: iOS & Itunes

available to Apple users

Brand Loyalty: The MAC Community


3. Brand Equity is important to Companies because it is…

The added value endowed on products and services May be reflected in the way consumers

Think Feel ActAs well as

Prices Market Share Profitability


3. Brand Equity could either make or break a company

Positive Customer Based Brand Equity•Consumers act more favorably to the product and the way it is marketed when the brand is identified, than when it is not identified

Negative Customer Based Brand Equity•If consumers react less favorably to marketing activity for the brand


What do Customers think of Apple?

- Apple has a high brand equity - For the hip and stylish

generation- A lifestyle indicator- Consumers don’t mind

paying a higher premium

- Apple means quality


BRAND arises from

Differences in RESPONSE

4. There are 3 key ingredients of customer- based brand equity


Usually true for commodities and generic version of the products

Competition Must be based on

4. If There is no Response


Brand knowledge consists of thoughts, feelings, images, experiences, beliefs, and so on that it becomes associated with the brand

4. It could also be a result of consumers knowledge of the brand


PERCEPTION

PREFERENCES

BEHAVIOR

4. …Or a response on how it is marketed


4. How high is Apple’s Brand Equity?


5. How to Build your Brand Equity

1. Initial Choices for the brand elements or identities making up the brand

1. Brand names 6. Spokespeople

2. URLs 7. Slogans

3. Logos 8. Jingles

4. Symbols 9. Packages

5. Characters 10. Signage


5. Keep in mind that brand elements should be…

• How easy to recall and recognize?Memorable • Is it credible & suggestive of the category? • Does it suggest something about the product? Meaningful• How aesthetically appealing?• Is it likable visually, verbally and other ways?Likable • Can it be used to introduce new products in the

same market segment?Transferable• How adaptable and updatable is the brand?Adaptable• How legally protectible is the brand element?• How competitively protectible? Protectible


5. Designing holistic marketing activities can also build brand equity

2. Products and services and all accompanying marketing activities and supporting marketing programs


5. Use new themes in designing brand-building marketing programs

Personalize

Integrate

Internalize


5. Build your brand equity by ‘borrowing’ it

3. Create brand equity by linking brand to other information in memory that conveys meaning to consumers


4. Brands can also link to other sources


5. How does Apple Build its Brand Equity?

Brand Equity Driver What Apple is Doing

1. Brand Element - The Iconic logo- Putting I to its

consumer products (iPod, iMac, iTunes)

2. Marketing Activities - Hyped product launches

- Experiential marketing

- Build a community

3. Secondary Brand Associations

- Steve Jobs - The Apple Store


6. Strategies to Brand Naming

1. Individual Names Generals Mills

2. Blanket Family NamesHeinz


6. Strategies to Brand Naming

3. Separate Family Names for all productsSears

4. Corporate name combined with individual product names

Sony


… phone

… music player

… tablet

… personal computer

6. Apple and Its iNaming Strategy


Branding is an important marketing tool whose main goal is to:

Identify and differentiate

Create value to the consumers

…In Summary


CHAPTER 9:CREATING BRAND

EQUITY

A Show & Tell Assignment

Anna Michelle P. Gatbonton

September 17, 2013

Chapter 9: Creating Brand Equity

Business

Transcript of Chapter 9: Creating Brand Equity