MM6016BRANDING AND MARKETING COMMUNICATION

Master of Business AdministrationSchool of Business and Management

Institut Teknologi Bandung

CONSUMER BASED BRAND EQUITY

OVERVIEW

We have learned:1. The origin of brand2. Traditional and practical meaning of brand3. Brand evolvement 4. Brand classification5. Strategic brand management steps– Relationship between brand and product– Relationship between elements of a brand system– Relationship between brand and consumer– Relationship between brand identity and brand image

TODAY’S LESSONS

• Customer Based Brand Equity• Brand Positioning • Brand Audit

Customer Based Brand Equity

MM6016 Branding and Marketing Communication

Equity pada Brand

• Wood (2000): brand equity merupakan hasil dari upaya untuk menggambarkan hubungan antara brand dan pelanggannya

• Perkembangan istilah brand equity:– Perspektif akuntansi (orientasi pada perusahaan)– Perspektif pemasaran (orientasi pada pelanggan)– Perspektif integral (orientasi pada seluruh

stakeholders)

Brand Equity: perspektif perusahaanAuthor Year DefinitionKapferer 2008 The current financial value of the flow of future profits attached to

the brand itself (the potential future contribution linked to the name in the current distribution context)

Feldwick 1996 The total value of a brand as a separable asset - when it is sold, or included on a balance sheet;

Rutledge 1998 The present value of this stream.of future-incremental-cash-flow is brand equity.

Brand Equity: perspektif pelangganAuthor Year DefinitionKeller 1993 “The differential effect of brand knowledge on consumer response to the marketing

of a brand”

Na et al. 1999 Brand equity is constructed in the minds of the consumer through assessment of relevant evaluation criteria and is directly related to customer satisfaction and consequent purchase.

Keller 19982001

Customer-based brand equity defined as the differential effect that brand knowledge has on customer response to marketing activity

Kapferer 2008 Total indifference to attachment, loyalty, and willingness to buy and rebuy based on beliefs of superiority and evoked emotions

Aaker 1991 A set of five categories of brand assets and liabilities linked to a brand, its name, and symbol that add or subtract from the value provided by a product or service to a firm or to that firm’s customers, or both. These categories of brand assets are brand loyalty, brand awareness, perceived quality, brand associations, and other proprietary assets (patents, trademarks, and channel relationships).

Brand Equity: perspektif integral (1)Author Year Definition

Leuthesser 1988 The set of associations and behaviour on the part of a brand's customers, channel members and parent corporation that permits the brand to earn greater volume or greater margins than it could without the brand name.

Srivastava and Shocker

1991 The aggregation of all accumulated attitudes and behavior patterns in the extended minds of consumers, distribution channels and influence agents, which will enhance future profits and long term cash flow

Marketing Science Institute

1989 The value that is added by the name and rewarded in the market with better profit margins or market shares. It can be viewed by customers and channel members as both a financial asset and as a set of favorable associations and behaviors.

Brand Equity: perspektif integral (2)Stakeholder: Expectations

Consumers/Customer Consume a quality product, with good reputation and beneficialEmployees Work in a company with a good brand reputation and high job

security Suppliers & Distributors Work with a company that has a strong brand, with a good

brand reputation and owns the market

Media, NGOs, Public Brand is socially responsible and is known for good environmental awareness anf financial conduct.

Competitor Fair competition with a strong brand with a good reputation, to gain high share in the market

Government Run legal operations and create employment

Brand Relationship sebagai Perantara

Sumber: Jones, Richard (2005), ‘Finding sources of brand value: Developing a stakeholder model of brand equity’, Journal of Brand Management, pg.10

Brand equity is created here

Customer Based Brand Equity

• Alasan menggunakan perspektif konsumen:– Pertama, brand equity merupakan upaya untuk

mendefinisikan hubungan antara pelanggan dengan brand (Wood, 2000).

– Kedua, brand equity akan memiliki arti yang komparatif dengan brand value, brand loyalty, dan brand image – sebagaimana yang telah diklasifikasikan oleh Feldwick (1996) – jika dilihat dari sudut pandang konsumen.

– Basis dalam menentukan Customer Equity

Brand Equity and Brand Value• Brand equity reflects the customer’s perception either

for or against the brand.– A combination of marketing and operating tactics are used

to help firms attract customers and create brand equity.– The accumulation of brand equity activities builds brand

value.• Brand value is a measure of the difference of the net

present cash flows from a branded offering over those of a lesser known or even unbranded offering.– Brand value is often a substantial percentage of total firm

value.

Model CBBE

Model Akademik

Model Generik:Aaker (1991,1996)Keller (1993, 1998,

2003)Campbell (2002)

Netemeyer (2004)

Model Spesifik (model generik yang

diadaptasi)

Model Industri

Brand Asset ValuatorBrand Dynamics

Equity Engine

Model CBBE Aaker (1991)

• Brand loyalty, yakni tingkat kesetiaan seseorang terhadap sebuah brand, diwujudkan dalam pembelian yang berulang (repeat purchase)

• Perceived quality, merupakan persepsi konsumen mengenai kualitas dari produk yang diberi brand tertentu. Dimensi kualitas sangat luas, mencakup reliabilitas, ketahanan, kualitas bahan, dan kualitas secara keseluruhan.

• Brand awareness, merupakan ukuran dari kepopuleran sebuah brand. Yang juga didefinisikan sebagai suatu penerimaan konsumen terhadap sebuah merek dalam benak mereka dimana ditunjukkan dari kemampuan mereka mengingat dan mengenali kembali sebuah merek ke dalam kategori tertentu.

• Brand association, merupakan resultan/ penjumlahan dari semua ciri terukur dan ciri tidak terukur yang dimiliki oleh suatu brand; seperti gagasan, kepercayaan, nilai-nilai, prasangka, dan minat yang membuatnya unik.

Model CBBE Aaker (1996)

• Model 1991 ditambah dengan:– Market share– Distribution coverage– Price Premium

Model CBBE Keller (1993, 1998)

Model CBBE Keller (2003)

Model CBBE Campbell (2002)

Model CBBE Netemeyer (2004)

BrandAsset Valuator Young & Rubicam

BrandDynamics dari Milward Brown

Equity Engine dari Research International

Pemilihan Model

• Model Akademik Generik lebih fleksibel untuk digunakan

• Model Aaker lebih simpel; Model Keller lebih sistematik dan memisahkan bagian perusahaan dan respon konsumen; Model Netemeyer lebih fokus pada consumer decision making

• Model Industri simpel dan praktis, namun tidak selalu bisa dipakai di berbagai konteks karena lack of comparability

INTRODUCTION

BACKGROUND (1)• The importance of brand in

today’s business• Brand is important but not

well understood

BACKGROUND (2)

• Costly brand investment• Brand failure• Hard to imitate brand

success strategy

COURSE FRAMEWORK

Brand Management &

Marketing Communication

1. Brand concept, strategic brand management

2. Brand equity concept and brand audit

4. Cases of brand management

5. Individual mastering of brand management

concept and strategic actions

3. Marketing communication for

branding

6. Global branding

OBJECTIVESBR

AND

COGN

ITIV

E•BRAN

D AFFECTIVE

TOPICS• Introduction to Brand• Strategic Brand Management• Brand equity• Brand positioning• Brand audit• Brand communication• Brand reinforcement• Brand extension• Co-branding strategy• Brand revitalizationand rejuvenation• Brand portfolio strategy• Global branding

Reference: Kevin L. Keller, 2008, Strategic Brand Management, 3rd Edition, Prentice Hall.

LEARNING METHODS

EVALUATIONForms PercentageQuiz 5%

Tugas dan presentasi kelompok 25%Tugas individu 10%

Keaktifan dalam diskusi kelas 10%UTS 25%UAS 25%

TOTAL 100 %

BC B AB A

ACSYS

• Academic Systems (AcSys)• Introduced in 2009• http://acsys.sbm.itb.ac.id (internal)• http://acsys1.sbm.itb.ac.id (external)• Username and Password• Check attachment, assignment,

announcement, score and comments

NEED TO DISCUSS?

• Director Room, MBA ITB Building• Call 022-2504308 ext 126• E-mail reza@sbm-itb.ac.id• From Monday to Friday, 8am – 5pm

BRAND NEWS (1)

BRAND NEWS (2)

BRAND NEWS (3)

HISTORY OF BRAND

• Old Norse word: “Brandr” = “To Burn”

• Greeks and Romans puts their signatures/symbols on wet claypots

• Pottery communities

TRADITIONAL BRAND DEFINITION

• It’s a mark• Different forms: name, logo, symbol, design,

or combination of those• Purpose: to differentiate • From tangible to intangible

PRACTICAL BRAND DEFINITION

• Set of associations or known descriptions• Stored in people’s mind• Which is represented, at least, by name • From intangible to tangible• Holt (2003): “Brand is perceptual entity,

rooted in reality”

OTHER BRAND DEFINITIONS (1)

De Chernatony (2006)• Input perspective

– Brand as logo– Brand as identity– Brand as quality indicator– Brand as values– Brand as vision

• Output perspective– Brand as image– Brand as relationship

• Time perspective– Brand is a dynamic entity

• Berthon et al. (2007) Brand Manifold

OTHER BRAND DEFINITIONS (2)

BRAND EVOLVEMENT

• McEnaly and De Chernatony (1999)

BRAND EVOLVEMENT (2)

• Kunde (2000)

BRANDS VS PRODUCTS

ProductAnything we can offer to a market for attention, acquisition, use, or consumption that might satisfy a need or want.

BrandSum total of consumer perceptions and feelings about the product’s attributes and how they perform, about the brand name and what it stands for, and about the company associated with the brand.

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PRODUCTS VS BRANDS

Computer

CarBeverag

eElectronic Appliance

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RELATIONSHIP BETWEEN PRODUCT & BRAND (1)

Potential Product

Core benefit

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RELATIONSHIP BETWEEN PRODUCT & BRAND (2)

$$Halo effectProduct’s visible and differentiating characteristics

Brand’s intangible values & imagery

Brand aspiration Product satisfaction

Expectations

Branded product

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RELATIONSHIP BETWEEN PRODUCT & BRAND (3)Resonance

Judgments

Feelings

Performance

Imagery

Salience

Core product benefit

Brand building equity pyramid48

PRODUCT, BRAND AND CONSUMERS

• Product used to dictates brand. The situation changed now• Brand influences purchase• Brand is perceived and experienced by consumers• Brand used to be company’s belonging, but now it is shared with

consumers

Produk Brand Brand Produk

Perusahaan Perusahaan

Konsumen Konsumen

BrandPerusahaan Konsumen

(a) (b) (c)

BRAND IDENTITY AND IMAGEBrand vision

and purp

ose

Core brand values

Brand

personality codes

Semiotic

invariants

Strategic

benefits

and

attributes

Physical signature, family

resemblance

Produc

t A.. Produc

t B .. Produc

t N .. Typical brand actions

Brand management process:top-down

Brand perception process:Bottom-up

Permanent fluctuations of the marketEvolution of competition, life stles, technology

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BRAND CLASSIFICATION

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MM6016 Branding and Marketing Communication

CRITERIA FOR CLASSIFYING

• Based on brand architecture• Based on entity• Based on product types• Based on customer types• Based on geographic scope

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BASED ON BRAND ARCHITECTURE

Corporate Brand

Family BrandIndividual Brand

Modifier (designating item or model53

AN EXAMPLE

Procter & Gamble

OlayOlay Total Effects – Olay Natural White – Olay White Radiance

Olay Total Effects cream – cleanser – eye cream54

BASED ON ENTITY

• Manufacturer brand

• Distributor/retailer brand

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BASED ON PRODUCT TYPES

• Product/Physical goods brand

• Service brand

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BASED ON CUSTOMER TYPE

• B2B brand

• B2C brand

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Brand classification based on geographic scope

• Global brand

• Local brand

CORA MEDIA INTERAKTIVE

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STRATEGIC BRAND MANAGEMENT

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MM6016 Branding and Marketing Communication

CONSIDERATIONS AND STEPS

• Brand Life Cycle• Davis (2010): brand has to maintain its

relevance• Kapferer (2008):

STEP 1

Identify and Establish Brand Positioning and

Values

•Mental Maps•Competitive frame of reference•Points of parity and points of difference•Core brand associations•Brand manatra

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BRAND ELEMENTS• Kapferer (2008)

Brand name and symbols Semiotic invariants

Brand concept (value proposition)Tangible and intangible

Product or service Experience

STEP 2

Plan and implement Brand marketing

programs

•Mixing and matching of brand elements•Integrating brand marketing activities•Leveraging secondary associations

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BRAND MARKETING PROGRAMS

• Davis (2010)– Communication objectives– Messages– Mode (touchpoints)– Evaluation– Adjustment

STEP 3

Measure and interpret brand performance

•Brand value chain•Brand audits•Brand tracking•Brand equity management system

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Activity & Program Metrics

Market Performance

Customer Perceptions & Behavior

Brand Tracking accross the brand value chain

• Marketing Investment• Program Quality

• Clarity• Relevance• Distinctiveness• Consistency

• Channel expansion

• Brand awareness• Brand associations• Perceived quality• Brand Loyalty

• Sales• Market share• Price premium• Profitability• Price elasticity• Expansion success

Brand Value Chain

Scope ofBrand Equity Measurement 66

STEP 4

Grow and sustain brand equity

•Brand-product matrix•Brand portfoilio and hierarchies•Brand expansion strategies•Brand reinforcement and revitalization

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