Introduction to brand equity - FEU · Introduction to brand equity Session 2 ... a brand has...
63
Introduction to brand equity Session 2 Holistic Brand Strategy Patrick Collings Sagacite Brand Agency Nairobi, Kenya 26th & 27th May 2008
Transcript of Introduction to brand equity - FEU · Introduction to brand equity Session 2 ... a brand has...
Introduction to brand equity
Session 2Holistic Brand Strategy
Patrick CollingsSagacite Brand Agency
Nairobi, Kenya26th & 27th May 2008
“If this business were split up, I would give you the land and bricks and mortar, and I
would take the brands and trademarks, and I would fare better than you”
John Stuart, Chairman of Quaker
tangible assets ruledhowever,
for much of the 20th century
brands were therebrands were theremanagement knew
but value not recorded
1980s
then the
arrived
the value of brands was recognized
(more about brand valuation in session four)
so a business perspective on brands(not to be confused with our market definition )
“Brands are intangible assets, assets that produces added benefits for the business. This is the domain of strategic brand management: how to create value with proper brand management ”
Jean-Noël Kapferer, The New Strategic Brand Management
what is brand equity
many different viewpoints and definitions
my mashup version
brand equity is the measurable value derived from marketing and other strategic and management efforts
attributable to a brand
brand equity is the measurable value derived from marketing and other strategic and management efforts
attributable to a brand
lets explore this value add
enables buying decisions1
builds customer loyalty2
1 + 2 =
builds market share3
protects market share4
helps command higher prices5
+20%
creates a halo effect6
apple itunes commercial
50% vs 17%
assists business expansion7
more trade support8
increases market value9
but...there is a flip side
a neglected brand erodes
value
the point we have arrived at
we have defined brands
we have defined brand equity
shown that a valuable brand adds overall value
now to build brand equity
kevin lane keller
E. B. Osborn Professor of Marketing at the Tuck School of Business at Dartmouth College
customer-based brand equity
model
CBBE
approaches brand equity from the perspective of the consumer
customer-based brand equity is the differential effect that brand knowledge has on consumer
response to the marketing of the brand
customer-based brand equity is the differential effect that brand knowledge has on consumer
response to the marketing of the brand
customer-based brand equity is the differential effect that brand knowledge has on consumer
response to the marketing of the brand
customer-based brand equity is the differential effect that brand knowledge has on consumer
response to the marketing of the brand
taste perception of six beers when aware of the brands
coors
pabst
miller lite
budweiser
colt 45
guinness
taste perception of six beers when unaware of the brands
guinnesscoors
pabst
miller litebudweiser colt 45
a brand has positive cbbe when consumer react more favourably to an offering and its marketing when the brand is identified than
when it is not
a brand has negative cbbe when consumer react less favourably to an offering and its
marketing when the brand is identified than when it is not
“The challenge for marketers in building a strong brand is ensuring that customers have
the right type of experiences with products and services and their accompanying marketing
programs so that the desired thoughts, feelings, images, beliefs, perceptions, opinions,
and so on become linked to the brand.”Kevin Lane Keller
a point of difference
keller’s cbbe model is marketing focus whilst holistic brand strategy embraces
other management disciplines
building brand equity
four sequential steps
brand awareness
brand understanding
brand opinion
brand relationship
brand awareness
brand understanding
brand opinion
brand relationship
who are you?
what are you?
who do i think of you?
what about us?
brand awareness
brand understanding
brand opinion
brand relationship
who are you?
what are you?
who do i think of you?
what about us?
deep and broad brand awareness
points of parity & points of difference
positive accessible reactions
intense and active loyalty
customer-basedbrand equity
pyramid
brand awareness
brand understanding
brand opinion
brandresonance
loyal client base
potential market
takeaways
brand equity is the measurable value derived from activities unique to a brand 2
building brand equity with keller’s customer-based brand equity model4
1 value of brands only measured and recorded in the last two decades
a valuable brand helps an entire organization 3
