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Transcript of elliotpercypervan2e_ch05
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Strategic Brand Management
Brand Equity
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Brand equity
The resonance of a name
The difficulty of defining
49 diff studies in US and Europe produces26 different measures (Sattler 1994)
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Financial perspective
Companies can sell for 20:1 of firms earnings
Strong brands = less risk
Greater likelihood of a solid income stream
Higher market share leading to higher price/lower costs and
less price elasticity Better margins higher ROI
More effective distribution
Shelf space
Pulled through the chain by consumers leading to retailerand wholesaler demand
See Fig 5.3.
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Figure 5.3
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Brand awareness
Strong brand awareness reflects
Familiarity
Presence
Commitment
Substance
NB. A person must have the intention to make a branded purchasewithin a product category for awareness to matter
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Brand awareness
Broadly speaking brand awareness can take twoforms
Recognition E.g., FMCG
Recall E.g., Restaurant
NB. The brand must be salient
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Brand attitude
Associations in memory linked to the brand These should be strong, positive and unique for loyalty to
result
Attitudes are a function of objective and subjectiveinterpretations of the brand Objective:
A person identifies attributes which are product or non-productspecific objective characteristics of the brand. These may betranslated into benefits depending on the personal valuesattached by customers to the attributes
Subjective: Perceptions of a brands personality or symbolic meaning
See Fig 5.5, 5.6.
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Figure 5.5
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Figure 5.6
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Figure 5.7
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Figure 5.8
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Brand equity is a central construct in the strategicmanagement of brands. When managing brands it isimportant to acknowledge the difference betweenfunctional and symbolic brands. Many of the
relationships discussed in these slides are shown inFigure 5.9.
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Figure 5.9