Brand Management (BM001)imm-gsm.s3.amazonaws.com/2014/Docs/semester2/Learner...3.4 Integrating...

IMM GSM© of 111 BM001

Brand Management (BM001)

The copyright of all IMM Graduate School of Marketing material is held by

the IMM GSM. No material may be reproduced without prior written

permission from the IMM GSM.

Revised: December 2012


Table of contents

SECTION A

1. Word of welcome 4

2. How to use this guide 5

3. Purpose and overall learning outcomes 6

4. National Qualification Framework Specifications 7

5. Pre-knowledge 8

6. Relationship with other modules 8

7. Prescribed textbook 8

8. Curriculum 10

9. Specific learning outcomes 14

10. Critical cross-field outcomes 22

11. Assessment details 24

SECTION B

Study Unit 1: Opening Perspectives on Branding 26

1.1 Specific learning outcomes 27

1.2 Brands and brand management 28

Study Unit 2: Developing a Brand Strategy 35


2.2 Customer-based brand equity 37

Study Unit 3: Designing and Implementing Brand Marketing

Programmes

47


3.2 Choosing brand elements to build brand equity 49

3.3 Designing marketing programmes to build brand equity 53

3.4 Integrating marketing communications to build brand equity 58

3.5 Leveraging secondary brand associations to build brand equity 62


Study Unit 4: Measuring and Interpreting Brand Performance 67


4.2 Developing a brand equity measurement and management

system

68

4.3 Measuring sources of brand equity 75

4.4 Measuring outcomes of brand equity 78

Study Unit 5: Growing and Sustaining Brand Equity 83


5.2 Designing and implementing branding strategies 85

5.3 Introducing and naming new products and brand extensions 90

5.4 Managing brands over time 95

5.5. Managing brands over geographic boundaries and market

segments

100

Study Unit 6: Closing Observation 106


6.2 Strategic brand management guidelines 107

6.3 What makes a strong brand? 107

6.4 Future brand priorities 108

Bibliography 110


SECTION A

1. Word of welcome

Welcome to the exciting module of Brand Management – a subject that opens up

a world of understanding of the importance of brands and branding – something

that is part of our lives – whether we like it or not.

Even today, as you drive along a busy street, stroll in a mall, watch television,

page through a magazine, listen to the radio, surf the net or chat on Twitter, you

are constantly faced with numerous brands and branding messages.

For a long time branding has been seen as part of the marketing discipline.

Traditionally branding is part of the marketing mix, or the 5P’s: product, price,

promotion, place and people, whereas branding is part of the augmented level of

a product. In recent years marketing has however evolved, and now has become

‘competition led’ with huge implications on branding, which explains why

branding has become central to the marketing discipline.

As brands become central to the core of many businesses, brands are now

considered to be the responsibility of senior management and the boardroom.

As you embark on this exciting journey of discovering branding, know that you

will learn more than what is commonly understood when referring to a brand or

branding as a concept. You will also learn how to think strategically about

managing a brand and ensuring each brand becomes the responsibility of senior

management and the boardroom.

South Africa is now, more than ever ready for creative, original and passionate

marketers who have the ability to build brands that will not only be successful

within the southern African context, but also become truly global brands. We trust

that this learning experience will equip you to be one of them!


2. How to use this guide

Brand management is designed to be a combination of theory and practice and

deals with brands – why they are important, what they represent to consumers

and what should be done to manage them properly. It focuses on the theory

behind the application of how to manage brands. It will not only offer you an

interesting account and analysis of brand management, it will also provide you

with the tools for planning and implementing brand marketing programmes and

how to sustain and grow brand equity. Experience has shown that most students

taking this module will be brand or product assistants, especially at the earlier

stages of their marketing careers. The goal then is to instil in you an

understanding and healthy sense of respect for brand management. We aim to

make you knowledgeable about the wonderful world of branding. The most

effective way to achieve this will be to ensure that you understand and enjoy the

module.

The learner guide is especially designed for a student who studies at a distance.

The guide will provide an overview of the total curriculum and will indicate the

learning outcomes, which are essentially the core of this guide. It will provide you

with each major topic that has to be covered, along with the learning outcomes

for each topic, which are systematically explained. The guide will also indicate

how the learning material must be prepared for assessment.

The learner guide should be studied in conjunction with the prescribed textbook

and does not replace the textbook.

At the end of each study unit you will find some typical examples of examination

questions which should be used for self-evaluation.

The following icons appear in all of the learning guides of the IMM Graduate

School of Marketing:


indicates learning outcomes

indicates the sections in the prescribed textbook that you need

to study.

indicates the self-evaluation questions.

3. The purpose and overall learning outcomes

The aim of this module is to provide a comprehensive and current handling of the

subjects of brands, brand equity and strategic brand management – the design

and implementation of marketing programmes and activities to build, measure

and manage brand equity. One of the module’s important goals is to provide the

student with concepts and techniques to improve the long-term profitability of

brand strategies. Current thinking and developments related to brands are

incorporated from both academic and industry participants. These are combined

with a comprehensive theoretical foundation and with practical insights to assist

managers in their day-to-day and long-term brand decisions.

As you develop your knowledge, it is essential that you also focus on how to

implement this knowledge – a critical characteristic of any first-class brand

manager.


On completion of the Brand Management syllabus, you should:

Understand the role of brands, the concept of brand equity and the

advantages of creating strong brands.

Understand the three main ways to build brand equity by properly

choosing brand elements, designing marketing programmes and

activities and leveraging secondary associations.

Understand the different approaches to measuring brand equity.

Be able to implement a brand equity measurement system.

Understand the alternative branding strategies and be able to devise

brand hierarchies and brand portfolios.

Understand the role of corporate brands, family brands, individual

brands, modifiers, and be able to combine these into sub-brands.

Be able to adjust branding strategies over time and across

geographic boundaries to maximise brand equity.

To achieve these goals, you will not only have to carefully follow the guidelines

and instructions of this learner guide, but you will need to observe, in your every

day life, how these principles are implemented, and critically evaluate their

effectiveness. The assignment described later in this learner guide, as well as the

examinations, will evaluate to what extent you have succeeded in reaching the

objectives of this course.

4. National Qualifications Framework (NQF) Specifications

This module forms an elective module in the second year for the BBA in

Marketing Management as well as the Diploma in Marketing Management.

In terms of the new National Qualifications Framework (NQF) it is designed as a

20-credit module offered on NQF level 7.


5. Pre-knowledge

Brand Management requires a thorough understanding of the principles of

marketing (Marketing 1), Business Communications 1 and Business

Management 1 and, for this reason you will only be allowed to take it as a second

year module.

It is assumed that you will have a sound knowledge of Business Statistics,

Business Law and Business Numeracy before attempting Brand Management.

It is also assumed that you will be sufficiently computer literate and that you will

be able to operate the Internet when attempting this module.

A sound knowledge of the Harvard Referencing System is compulsory before

attempting this module.

6. The relationship with other modules

By this stage you have come to know marketing as an innovative activity of an

organisation through which ideas, brands, products and services are conceived,

priced, promoted and distributed to satisfy consumer needs, and through which it

is possible to anticipate, and even create, the consumers’ future needs. With that

in mind, it’s easy to see that brand management stands at the centre of

marketing, as an integral part of marketing strategy development.

7. Prescribed textbook

The prescribed textbook for this course is:

Keller, K.L., 2013. Strategic Brand Management. Building, Measuring and

Managing Brand Equity. 4th ed. Global edition. Pearson Prentice Hall.

The additional recommended reading for this course is:


Kapferer, J.N., 2008. The New Strategic Brand Management: Creating and

Sustaining Brand Equity Long Term. 4th ed. Kogan Page.

The textbook is written in a clear and systematic manner. Always start your

studies by consulting the learner guide and then study the relevant learning units

in the prescribed textbook. It is unlikely that you will pass this module if you have

only consulted the learner guide without studying the content of the textbook.

This textbook should be supplemented by exploring South African examples and

other relevant reading material.

Additional reading is vital for success in brand management. You should routinely

be checking the latest information on various aspects of branding, via the

Internet, quality newspapers and the marketing press. You should further explore

various examples of branding elements in all forms of media, whether you are

watching television, listening to radio stations or reading newspapers and/or

other printed publications, i.e. magazines or engaging online via the World Wide

Web, through Facebook, Linkedln or Twitter or various other marketing related

blogs to identify relevant examples which can illustrate brands and branding

theory in practice.

In addition to the prescribed textbook, it would be useful to consult the following

report both for assignments, and for practical application in a brand management

role:

Interbrand. (2011). Best global brands 2011. [Online] Available from:

http://www.interbrand.com/en/best-global-brands/Best-Global-Brands-2011.aspx.

[Accessed: 23 November 2011].

Since this is a newly introduced subject at the IMM GSM, no previous

examination question papers are available from the IMM GSM’s Johannesburg

Office or any one of the IMM GSM Regional Offices.

http://www.interbrand.com/en/best-global-brands/Best-Global-Brands-2011.aspx


8. Curriculum

In line with the purpose of the module described above, this course has been

divided into six study units as depicted in the table below:

Study

Unit

Description Chapters

in Keller

(2013)

1 Opening perspectives on branding

Brands and brand management

1

2 Developing a Brand Strategy.

Customer-based brand equity and brand positioning

Brand Resonance and the Brand Value Chain

2, 3

3 Designing and implementing brand marketing

programmes

Choosing brand elements to build brand equity

Designing marketing programmes to build brand

equity

Integrating marketing communications to build brand

equity

Leveraging secondary brand associations to build

brand equity

4,5,6 & 7

4 Measuring and interpreting brand performance

Developing a brand equity measurement and

management system

Measuring sources of brand equity: Capturing

customer mind-set

Measuring outcomes of brand equity: Capturing

market performance

8,9 & 10


5 Growing and sustaining brand equity

Designing and implementing brand architecture

strategies

Introducing and naming new products and brand

extensions

Managing brands over time

Managing brands over geographic boundaries and

market segments

11,12,13 &

14

6 Closing observations

Strategic brand management guidelines

What makes a strong brand?

Special brand applications

Future brand priorities

15

The first study unit sets the stage by providing the ‘big picture’ of what strategic

brand management is all about. The goal is to provide a sense for the content

and context of strategic brand management by identifying key branding decisions

and suggesting some of the important considerations for those decisions. The

study unit introduces some basic notions about brands and the role they’ve

played and continue to play in marketing strategies. It defines what a brand is,

why brands matter and how anything can be branded, and provides an overview

of the strategic brand management process.

Study Unit 2 is an exploration of the topic of brand equity and provides a blueprint

for the rest of the learner guide. The first concept being considered is the concept

of customer-based brand equity and outlines the customer-based brand equity

framework. It also summarises guidelines for building, measuring and managing

customer-based brand equity. The next important theme of this study unit


develops a conceptual model of brand knowledge and addresses the critically

important issue of competitive brand positioning.

Study Unit 3 examines the three major ways to build customer-based brand

equity, taking a single product-single brand perspective. The first section being

exploratory, focusing on the first way to build customer-based brand equity and

taking a look at how to choose brand elements and the role they play in

contributing to brand equity.

The next section in this study unit considers the second way to build brand equity

and how to optimise the marketing mix to create customer-based brand equity. It

covers product, pricing and distribution strategies. It further examines the

creation of integrated marketing communication programmes to build brand

equity. It is interesting to consider the 4P’s of marketing from a brand equity

perspective and the effects of brand knowledge on consumer response to

marketing activity and vice versa.

The final section of this study unit examines the third major way to build brand

equity – by leveraging secondary associations from other entities like company,

geographical regions, persons and other brands.

Study Unit 4 examines how to measure customer-based brand equity. This unit

takes a detailed look at what consumers know about brands, what marketers

want them to know, and how marketers can develop measurement procedures to

assess how well they’re doing. The first section of this study unit provides a big

picture view of these topics, introducing the brand value chain and examining

how to develop and implement a brand equity measurement system. The

second section of this study unit examines approaches to measure customers’

brand knowledge structures in order to identify and quantify potential sources of

brand equity.


The third section of this study unit looks at measuring potential outcomes of

brand equity in terms of the major benefits a firm accrues from these sources of

brand equity.

Study Unit 5 addresses how to manage brand equity, taking a broader, multiple

brand perspective as well as a longer-term and multiple-market view of brands.

The first section considers issues related to branding strategies – which brand

element an organisation chooses to apply across the various products it sells and

how to maximise brand equity across all the different brands and products that an

organisation might sell. It further describes two important tools to help formulate

branding strategies – the brand-product matrix and the brand hierarchy.

The next section being addressed is the pros and cons of brand extensions and

how to develop guidelines for introducing and naming new products and brand

extensions.

The third section being explored considers how to reinforce, revitalise and retire

brands, whilst examining a number of specific topics in managing brands over

time, such as the advantages of maintaining brand consistency, the importance

of protecting sources of brand equity and trade-offs in fortifying vs. leveraging

brands.

The last section of this study unit examines the implications of different consumer

behaviour and different types of market segments for managing brand equity.

Particular attention is paid to international issues and global brand issues.

The sixth and final study unit considers some implications and applications of the

customer-based brand equity framework. It highlights managerial guidelines and

key themes which emerged in earlier study units. It further summarises success

factors for effective branding, applies the customer-based brand equity

framework to address specific strategic brand management issues for different

types of products and relates the framework to several other popular views of

brand equity.


9. Specific learning outcomes

Learning outcomes are drawn from a hierarchy of skills, depending on the skills

level that you are required to attain. These different levels are:

1. Knowledge level – this is the most basic level. It just requires you to learn

the facts. Words that indicate that you are being tested at the knowledge

level include – list, define, state, name, tell, show, etc.

2. Comprehension level – this level expects some understanding to have

occurred. Key words that indicate that you are being tested at the

comprehension level include – explain, elaborate, describe, discuss, etc.

3. Application level – this level involves the use of knowledge and

comprehension in concrete situations. Key words that indicate that you are

being tested at the application level include – demonstrate, calculate, apply,

construct, design, etc.

4. Analysis level – at this level you are expected to be able to break a

concept/theory down into its component parts. Key words that show you are

being tested at this level are – analyse, assess, etc.

5. Synthesis level – this is the reverse action of analysis, in that you are

required to put the parts together to form a whole concept. Key words that

show you are being tested at this level are – assemble, reconstruct, create.

6. Evaluation level – this level requires you to judge the value of a concept/

model using various criteria. This is the highest level of learning. Key words

that indicate that you are being tested at this level are – evaluate, assess,

compare, choose, judge, etc.

There are a number of specific learning outcomes for this module, as indicated

per study unit in the table below.


Study

Unit

Description Specific Learning Outcomes

1 Opening

Perspectives on

branding


Explain what a brand is.

Understand the difference between a product and a brand.

Discuss why brands matter to consumers and to

manufacturers.

Explain what can be branded.

Have a clear understanding of what are the strongest

brands.

Explain the challenges and opportunities of branding.

Understand market leadership.

Explain the brand equity concept.

Apply the strategic brand management process.

2 Identifying and

establishing

brand marketing

programmes

Customer-based brand equity and brand positioning

Explain customer-based brand equity.

Understand the concept of brand knowledge.

Explain the sources of brand equity.

Apply the four steps of brand building to build a strong

brand.

Explain the customer-based brand equity pyramid.

Understand the sub-dimensions of brand building blocks.

Explain the ten commandments of emotional branding.

Understand the possible measurements of brand building

blocks.


Explain how to create customer value.

Explain the marketing advantages of strong brands.

Explain the identification and establishment of brand

positioning.

Apply positioning guidelines.

Explain how to identify and establish brand mantras.

Understand the importance of internal branding.

Brand Resonance and the Brand Value Chain

Explain the term brand resonance.

Describe the steps in building brand resonance.

Explain the brand value chain.

Identify the stages in the brand value chain.

Contrast brand equity and customer equity.

3 Designing and

implementing

brand marketing

programmes


Explain the criteria involved when choosing brand elements.

Understand the optics and tactics for brand elements.

Understand what set of brand elements is required to make

up the brand identity.

Explain the guidelines for creating high-impact packaging.

Designing marketing programmes to build brand equity

Understand the new perspectives on marketing.

Explain the guidelines for experiential marketing.


Explain the role of the product strategy in building brand

equity.

Explain the role of the pricing strategy in building brand

equity

Explain the role of the channel strategy in building brand

equity.

Explain the reasons in the growth in private labels.

Integrating marketing communications to build brand equity

Examine the role of the new media environment on building

brand equity.

Provide an overview of marketing communication options

when building brand equity.

Understand the effects of advertising on building brand

equity.

Develop an integrated marketing communications

programme for a brand of your choice.

Explain the general marketing communications guidelines.

Explain how you would coordinate media to build brand

equity.

Leveraging secondary brand associations to build brand

equity

Understand the process of leveraging secondary brand

knowledge.

Conceptualise the leveraging process.

Understanding how to leverage through the company.

Understand how to leverage through country of origin and


other geographic areas.

Explain how to leverage through channels of distribution.

Explain how to leverage through co-branding.

Understand brand alliances.

Understand the concept of licensing.

Explain the role of celebrity endorsement in building brand

equity.

Explain the role of sporting, cultural and other events in

building brand equity.

Explain how to link brands to various third-party sources.

4 Measuring and

interpreting

brand

performance

Developing a brand equity measurement and management

system

Explain the concept of new accountability.


Explain the concept of brand tracking studies.

Explain how to establish a brand equity management

system.

Measuring sources of brand equity: Capturing customer

mind-set

Examine qualitative research techniques.

Understand consumer memory.

Explain how you can make the most of consumer insights.

Examine quantitative research results.

Examine the guidelines for online market research.

Understand categorical brand recalls.


Understand brand attitudes.

Explain comprehensive models of consumer-based brand

equity.

Explain Y&R’s Brand Asset Valuator (BAV).

Measuring outcomes of brand equity: Capturing market

performance

Explain comparative methods research studies or

experiments.

Explain holistic methods research studies or experiments.

Apply the valuation flowchart to a brand of your choice.

Explain the Interbrand Brand Valuation model.

5 Growing and

sustaining

brand equity

Designing and implementing brand architecture strategies

Explain the concept brand architecture.

Apply the Brand-Product Matrix.

Explain how the ideal brand portfolio can be achieved.

Explain brand hierarchy.

Apply the determinants of corporate image.

Explain corporate brand personality.

Design a brand strategy for a brand of your choice.

Explain the guidelines that could be followed for brand

hierarchy decisions.

Explain how you could use cause marketing to build brand

equity.


Introducing and naming new products and brand extensions

Explain Ansoff’s Growth Share matrix.

Examine the advantages and disadvantages of brand

extensions.

Explain the concept of fighting feature fatigue.

Understand how consumers evaluate brand extensions.

Evaluate brand extension opportunities.

Discuss extension guidelines based on academic research.

Understand the concept master brands.

Apply the guidelines for profitable line extensions to a brand

line extension of your choice.

How to manage brands over time

Explain how you could reinforce brand equity over time.

Understand the long-term effects of marketing actions on

brand equity.

Explain the theory brand concept management.

Explain how you could revitalise a brand.

Understand usage expansion.

Explain the theory behind adjustments to a brand portfolio.

Apply brand reinforcement strategies.


Apply brand revitalisation strategies.

Managing brands over geographic boundaries and market

segments

Explain regionalisation of market segments.

Explain other demographic and cultural segments.

Discuss the rationale for going international.

Examine the advantages and disadvantages of global

marketing programmes.

Examine standardisation versus customisation.

Explain the strategic issues in a global brand strategy.

Understand how to build global customer-based brand

equity.

6 Closing

observations

Examine the guidelines involved in strategic brand

management.

Explain the determinants of desired brand knowledge

structures.

Explain what is required to create a strong brand.

Examine the seven deadly sins of brand management.

Consider various special applications of branding that may

not fit into the general branding concepts.

Understand future brand priorities.


Apply David Aaker’s brand equity model.

Apply the brand report card to a brand of your choice.

You are encouraged to use the above information for the planning in advance of

your studies and to avoid ‘cramming’. It is always wise to set up your own study

timetable so that you can manage your time effectively. When planning your

studies, please keep the submission date for the assignment in mind.

10. Critical cross-field outcomes

The critical cross-field outcomes, also known as transferable skills as identified

by the South African Qualifications Authority (SAQA), are essential for your

development as a student within the education and training system, regardless of

the specific area of learning. It is these outcomes that are deemed critical for

your development in the capacity of life-long learning.

The critical cross-field outcomes adopted by SAQA are as follows:

(1) Identify and solve problems in which responses display that responsible

decisions using critical and creative thinking have been made.

(2) Work effectively with others as a member of a team, group, organisation

and community.

(3) Organise and manage oneself and one’s activities responsibly and

effectively.

(4) Collect, analyse, organise and critically evaluate information.

(5) Communicate effectively using visual, mathematical and/or language skills

in the modes of oral and/or written presentation.

(6) Use science and technology effectively and critically, showing

responsibility towards the environment and health of others.


(7) Demonstrate an understanding of the world as a set of related systems by

realising that problem-solving contexts do not exist in isolation.

(8) Reflecting on and exploring a variety of strategies to learn more

effectively.

(9) Participating as responsible citizens in the life of local, national and global

communities.

(10) Being culturally and aesthetically sensitive across a range of social

contexts.

(11) Exploring education and career opportunities.

(12) Developing entrepreneurial opportunities.

The transferable skills identified in this module are as follows:

Taught Practised Assessed

Problem solving X X X

Working in teams X X

Self-management X X X

Information gathering/research

skills

X X X

Communication skills X X X

Analytical skills X X X

Learning strategies X X X

Responsible citizenship X X

Cultural sensitivity X X

Career development X

Entrepreneurship X


11. Assessment details

There are two assessments involved in terms of the Brand Management module:

Assignment: The assignment contributes 20% to the overall mark for the

module. Assignments will focus on selected study units, and need to be

typed. Please ensure that you adhere to the general rules of the IMM

Graduate School of Marketing pertaining to the style and format of

assignments. You will be issued with a separate brief in this regard.

Examination: The exam incorporates all content covered in the workbook and

constitutes 80% of the final mark for the Brand Management module. The

duration of the examination is three hours and the paper will count 100 marks.

The examination paper will consist mainly of paragraph and essay type

answers and could be based on answering a relevant case study/relevant

case studies. Examination results are usually released within six weeks of

sitting the examination and are released in the form of symbols only. The final

mark, consisting of an assignment mark and an examination mark, is released

in the form of a final percentage (mark out of 100). The grading system is as

follows:

Percentage Scale Description

75% or more Pass with Distinction

50% - 74% Pass

0% - 49% Fail

A timetable of the assessment programme for the semester, including dates for

the assignment to be submitted during the course of the year, is available in the

Calendar of Events for that year. Please refer to the current issue of the IMM


GSM Prospectus. This document and the Student Yearbook provide details of

the IMM GSM assessment policy.

Under this learning unit refer to, amongst other things, the following:

Assessment policy of the IMM GSM in which issues like absenteeism from

tests, methods of feedback, moderation and appeals procedures are

addressed

A detailed timetable of the assessment programme for the year/semester

(including due dates for assignments to be submitted during the course of

the year/semester)

Assessment methods that will be used (e.g. tests, assignments.)

Admission requirements for the examination

Composition of year mark

Any additional assessment information, for example, how to use references,

the compilation of a bibliography, the answering of questions according to

the use of action verbs

Plagiarism.


SECTION B

The prescribed textbook contains a thorough description of each of the study

units of this module. This section of the learner guide will therefore only highlight

key elements of the module. Carefully study the learning units from the textbook

in accordance with the learning outcomes described in the study units that follow.

In order to emphasise the practical relevance of this module, the textbooks’

concepts will be illustrated with the use of an applied example. When you study

the module, you should also think beyond this example to understand the

intricacies of brand management.


Study Unit 1: Opening perspectives on branding

1.1 Specific learning outcomes

The first study unit lays the foundation by setting up the rationale for the entire

syllabus. Because brands are so valuable to the organisations that own them and

the consumers who purchase them, and because the market-place has become

increasingly complex and competitive, brand management is more important and

challenging now than it ever has been. Brand managers face a seemingly

unlimited number of options and opportunities with respect to product, price,

place and promotion strategies. But they also face increased risk as they strive to

deal with a sea of changes in the marketing environment, including the rise of

private labels, media fragmentation, pressure for short-term results, shifting

consumer preferences, and technological advancements that level the product

feature playing field, to name just a few.

Despite these pressures, many brands continue to grow and flourish, as

evidenced by the global successes of such mega-names like Nike, Disney,

Mercedes, and others. Moreover, even categories that had previously been

thought of as consisting of mundane commodity products now contain brands,

including Koo’s Chakalakah, Afrox Handigas and Rainbow chickens.

Study Unit 1 highlights that by focusing specifically on brands. This learner guide

enables students to gain valuable knowledge, broader perspectives, and more

strategic insights versus a more general marketing text. The study unit introduces

the concept of a brand as an identifiable and differentiated product or service.

Brands offer tangible and intangible benefits to the companies who manufacture

them, the retailers who sell them, and the consumers who buy them. Examples of

strong brands given in the text include not only products and services, but also

people, places, and sports, art, and entertainment industries. The study unit

describes some of the past and present challenges faced by brands (such as


those noted above), and states that the purpose of the learner guide is to set

principles, models and frameworks that will help guide managers through these

challenges as they plan and execute brand strategies.

It is essential that you fully understanding the first study unit in preparation for the

rest of the units. Ensure that you have achieved the learning outcomes outlined

below which will facilitate your learning over the following weeks that you

dedicate to this module:

After studying this unit, you should be able to:


Explain what a brand is.

Understand the difference between a product and a brand.

Discuss why brands matter to consumers and to manufacturers.

Explain what can be branded.

Have a clear understanding of what are the strongest brands.

Explain the challenges and opportunities of branding.

Understand market leadership.

Explain the brand equity concept.

Apply the strategic brand management process.


1.2 Brands and brand management

Your first task is to thoroughly familiarise yourself with what brands and brand

management are, why they are important in the context of marketing and

ultimately business success. Good brand management is based on a clear

strategy and sound management. Strategic brand management achieves its

results through vision, analytical skills and talent.

The main driver of strategic brand management is the customer, because the

overall need is to adapt brands to suit the requirements of that customer.

Strategic brand management seeks to increase the customer’s perceived values

of a product, thereby increasing brand franchise and equity. Strategic brand

management is also concerned with creating, nurturing and building a brand, as

well as managing customer and stakeholder relationships.

Study reference: Keller, 2013, Chapter 1.

1.2.1 Introduction

This section provides an introduction to brand management.

The section details the three main factors that contribute to brand equity: the

initial choices for the brand elements or identities making up the brand; the way

the brand is integrated into the supporting marketing programme; and the

associations indirectly transferred to the brand by linking the brand to some other

entity (e.g., the company, country of origin, channel of distribution, or another

brand). Several strategic imperatives for effective brand equity management are

introduced in the study unit, namely the brand hierarchy, the brand-product

matrix, and policies regarding the strengthening of the brand over time and over

geographical boundaries.


In this section, the strategic brand management process is described. The

strategic brand management process involves four main steps: Identifying and

establishing brand positioning and values, planning and implementing brand

marketing programmes, measuring and interpreting brand performance, and

growing and sustaining brand equity.

Branding Brief 1-1 explains the branding lessons Coca-Cola has learnt.

Key take-away points

1. A company’s management of a brand is typically the determining factor in the

ultimate success or failure of the brand.

2. Brands have differentiating features that distinguish them from competitors

and add value for consumers.

3. Consumers often don’t buy products; they buy the images associated with

products.

1.2.2 What is a brand?

Your first step in this section is to identify the definition of a brand and the

difference between brands and products. You will find more information on this

in Chapter 1 of Keller (2013). Make sure that you understand the meaning of

each of these elements, and that you can identify real world examples. Figure 1.1

in Keller (2013) will provide you with an in-depth explanation of the different

product levels that can be found.

1.2.3 Why do brands matter?

The question being answered here is why are brands important? What functions

do brands perform that make them so valuable to marketers?


You need to understand the different perspectives that make brands so important

– from a consumer perspective as well as from a marketer’s perspective.

You also need to understand the different risks that consumers may perceive

when buying a product and the role that brands play in reducing these risks.

“The real causes of enduring market leadership are vision and will. Enduring

market leaders have a revolutionary and inspiring vision of the mass market, and

they exhibit an indomitable will to realise that vision. They persist under adversity,

innovate relentlessly, commit financial resources, and leverage assets to realise

their vision.” (Tellis & Golder, 1996)

1.2.4 Can everything be branded?

The question being asked now is whether everything can be branded.

Remember, a brand is something that resided in the minds of consumers, so

almost everything can be branded. The key to branding is that consumers

perceive differences among brands in a product category.

Even commodities can be branded for example: Coffee (NESCAFÉ), bath soap

(Lux), flour (Snowflake), beer (Castle), salt (Cerebos), oatmeal (Quaker), chutney

(Mrs Balls), chickens (Rainbow) and even water (Valpré).

Consider Branding Brief 1.2 in Keller (2013) and what has happened in the

diamond industry as such.

You should also understand business-to-business branding as explained in the

Science of Branding 1.1, as well as high-tech branding as explained in the

Science of Branding 1.2 in Keller (2013).

There are many excellent examples of various well-known brands in the branding

briefs in your prescribed textbook – be sure to read through all of them – they will

greatly assist you in understanding branding far better.


1.2.5 Branding challenges and opportunities

Brand management may be even more difficult now, than ever before. You

should familiarise yourself with the challenges and opportunities of branding and

consider the more recent developments that have significantly complicated

marketing practices and pose challenges for brand management. These

challenges can be found in Figure 1.9 in Keller (2013). Figure 1.6 and Figure 1.8

provide some wonderful insight regarding brands then and now and the factors

that determine enduring leadership as indicated in Figure 1.7.

Also consider the Science of Branding 1.3 that provides a good understanding of

market leadership.

You should also be aware of the proliferation of new brands and products as well

as the erosion or fragmentation of traditional advertising media and the

emergence of interactive and non-traditional media, promotion and other

communication alternatives. Other important aspects that should not be ignored

are the increase in competition, increased costs of introducing new products and

the greater accountability on marketers to achieve profit targets.

1.2.6 The brand equity concept

Explain the brand equity concept. Branding is all about creating differences – it is

imperative to ensure that you understand the basic principles of branding and

brand equity. Study Unit 2 provides an overview of brand equity and a blueprint

for the rest of the learner guide. The remainder of the learner guide addresses in

much greater depth how to build brand equity, measure brand equity and

manage brand equity. The concluding sections of the learner guide provide some

additional applications and perspectives on branding.


1.2.7 Strategic brand management process

The remainder of this section provides an overview of the strategic brand

management process that helps to pull all these various concepts together. You

would be required to apply the steps involved in the strategic brand management

process. Figure 1.12 in Keller (2013) would be extremely helpful in this regard.

1.2.8 Conclusion

This study unit provides a thorough introduction to brand and brand

management.

Ensure you are familiar with the content of the following as explained in Keller

(2013):

Science of Branding

1-1: Understanding Business-to-Business Branding

1-2: High-Tech Branding

1-3: Understanding Market Leadership

1-4: Marketing brands in a recession

Branding Briefs

1-1: Coca-Cola’s Branding Lesson

1-2: Branding Commodities

1-3: Place Branding

1-4:

Brand Focus 1.0:

History of Branding

Read through these sections in Keller (2013). Ensure you are familiar with the

content of these branding briefs as all provide valuable information regarding the

aspects of this study unit.


The field of brands and brand management is constantly changing and you

therefore need to be fully aware of the most recent changes in branding and

brand management.

The following self-assessment questions are examples that may be used to test

your understanding of the module so far. Also refer to the discussion questions

found at the end of each chapter in Keller (013).

Self-assessment exercise

1. What do brands mean to you?

2. What are your favourite brands and why? Check to see how your

perceptions of brands might differ from those of others.

3. Who do you think has the strongest brands? Why?

4. What do you think of the Interbrand Best Global Brands 2011? Do you

agree with the rankings? Why or why not?

5. Can you think of anything that cannot be branded?

6. Select an example that was not discussed in each of the categories

provided (services; retailers and distributors; people and organisations;

sports, arts, and entertainment) and describe how each is a brand.

7. What do brands mean to you?

8. What are your favourite brands and why? Check to see how your

perceptions of brands might differ from those of others.


Study Unit 2: Developing a brand strategy


This study unit deals with the topic of brand equity and provides a blueprint for

the rest of the study units. The first section of this study unit introduces the

concept of customer-based brand equity and provides a useful overview or top-

line summary of the scope of topics covered in the entire syllabus. The second

section develops a conceptual model of brand knowledge and addresses the

critically important issue of competitive brand positioning. The third section

describes the brand resonance and brand value chain models that assist

marketers in developing profitable marketing programmes.

It is essential that you fully understand the second study unit in preparation for

the rest of the study units. Ensure that you have achieved the learning outcomes

outlined below which will facilitate your learning over the following weeks that you

dedicate to this module:


Customer-based brand equity

Explain customer-based brand equity.

Understand the concept of brand knowledge.

Explain the sources of brand equity.


Apply the four steps of brand building to build a strong brand.

Explain the customer-based brand equity pyramid.

Understand the sub-dimensions of brand building blocks.

Explain the ten commandments of emotional branding.

Understand the possible measurements of brand building blocks.

Explain how to create customer value.

Explain the marketing advantages of strong brands.

Brand positioning

Explain the identification and establishment of brand positioning.

Apply positioning guidelines.

Explain how to identify and establish brand mantras.

Understand the importance of internal branding.

Be able to conduct a brand audit.

Brand resonance

Explain the term brand resonance

Apply the steps involved in building brand resonance.

Explain brand value chain.

Apply a brand value chain to a brand of your choice.

Contrast brand equity and customer equity.


2.2 Customer-based brand equity (CBBE)

Study reference: Keller, 2013, Chapter 2 & 3

2.2.1 Introduction

In studying Chapter 2 of Keller (2013), we start to focus on the important

component of brand equity.

This section defines the concept that is the focus of the learner guide. Customer-

based brand equity (CBBE) is the differential effect that brand knowledge has on

consumer response to the marketing of that brand. Brand knowledge is a function

of awareness, which relates to consumers’ ability to recognise or recall the brand,

and image, which consists of consumers’ perceptions of and associations with

the brand. Building awareness requires repeatedly exposing consumers to the

brand as well as linking the brand in consumer memory to its product category

and to purchase, usage and consumption situations. Creating a positive brand

image requires establishing strong, favourable and unique associations for the

brand.

Key take-away points:

1. Customer-based brand equity is the differential effect of brand knowledge on

consumer response to the marketing of a brand.

2. Positive brand equity results when consumers are familiar with the brand and

have strong, favourable and unique associations for it.

3. The power of the brand and its ultimate value to the firm resides with

customers.


2.2.2 Customer-based brand equity and brand equity

2.2.2.1. Customer-based brand equity and brand equity background

You need to familiarise yourself with the concept of customer-based brand equity

- “The differential effect that brand knowledge has on consumer response to the

marketing of that brand.” (Keller, 1993.) Understand the three key ingredients of

this definition: (1) differential effect; (2) brand knowledge; and (3) consumer

response to marketing.

Figure 2.1 in Keller (2013) provides a detailed account of the advantages of

strong brands and you should take cognisance of these advantages.

Understand the concept of brand equity using the metaphor of a bridge – being a

connection to, and a reflection of the past as well as providing direction for the

future.

Annually, the global branding agency, Interbrand publishes a Best Global Brands

report on the world’s most valuable brands. The top ten brands in 2011 according

to the Interbrand Best Global Brands report:


1 Coca-Cola 71,861 ($m)

2 IBM 69,905 ($m)

3 Microsoft 59,087 ($m)

4 Google 55,317 ($m)

5 GE 42,808 ($m)

6 McDonald's 35,593 ($m)

7 Intel 35,217 ($m)

8 Apple 33,492 ($m)

9 Disney 29,018 ($m)

10 Hewlett-Packard 28,479 ($m)

2.2.2.2. Making a strong brand: brand knowledge

You need to be able to examine the benefits of brand knowledge as a key to

creating brand equity because it creates the differential effect that drives brand

equity. Understand that brand knowledge consists of a brand node in memory

with a variety of associations linked to it and brand knowledge has two

components: brand awareness and brand image.

Follow Science of Branding 2-1 in Keller (2013) to have a better understanding of

Naomi Klein’s ‘No Logo’ book and the impact on brands.


2.2.2.3. Sources of brand equity

Understand the two sources of brand equity, namely brand awareness and brand

image in their entirety.

Brand awareness is important because: 1) it is a necessary condition for

inclusion in the set of brands being considered for purchase, 2) in low-

involvement decision settings it can be a sufficient condition for choice, and 3) it

influences the nature and strength of associations that comprise the brand

image. Awareness can be heightened by increasing consumer exposure to the

brand and by linking the brand to product category, consumption and usage

situations.

A brand’s image reflects all the associations consumers have for a brand in

memory. The strength, favourability and uniqueness of the associations affect the

response consumers will have to the brand and to its supporting marketing

activities. Associations can be about attributes and benefits of the brand, or

attitudes toward it. Attributes, which are descriptive features of a brand, can

relate to the actual physical components and ingredients of a brand (product-

related) or to such things as the price, imagery, feelings and experiences, and

personality associated with the brand (non-product-related).

2.2.2.4. Identifying and establishing brand positioning

The section addresses how ideal or desired brand knowledge structures can be

defined with respect to brand positioning. This involves selecting a target market,

segmenting the market, and evaluating the competition. With respect to

competition, positioning the brand with points-of-parity and points-of-difference is

discussed next. Points-of-difference are characteristics unique to the brand that

help distinguish it from the competition, while points-of-parity may be shared by

other brands in a given category.


2.2.2.5. Positioning guidelines

Once a brand has an established positioning, it may be necessary to update the

positioning over time. The section discusses the aspects of defining and

communicating the competitive frame of reference, and how to choose points of

difference. With respect to competition, positioning the brand with points-of-parity

and points-of-difference is discussed next. Points-of-difference are characteristics

unique to the brand that help distinguish it from the competition, while points-of-

parity may be shared by other brands in a given category.

It further covers the aspect of how to update your brand positioning over time and

covers the laddering technique used to deepen the meaning of brand

associations in the minds of consumers. The chapter also details how marketers

can change positioning in response to competition by doing nothing, going on the

offensive, or going on the defensive. Ensure you follow Branding Brief 2-1:

Positioning Politicians to understand the concept of positioning better.

2.2.2.6. Defining and establishing brand mantras

This study unit provides information on how to establish brand values. Marketers

can use a mental map to represent all associations and responses consumers

have regarding the brand. The core brand values are the five or ten most

important attributes or benefits of the brand that appear on the mental map. A

brand mantra can capture the core brand values and provide the essence of the

brand in a short phrase. You should familiarise yourself with the concepts core

brand associations and brand mantras. When you consider the aspect of

designing a brand mantra you should understand the following:

The term brand functions describes the nature of the product or service or the

type of experiences or benefits the brand provides.

The descriptive modifier further clarifies its nature.


The emotional modifier provides another qualifier – how exactly does the

brand provide benefits, and in what way?

Follow Branding Brief 2-2: Nike Brand Mantra as well as Branding Brief 2-3:

Disney’s Brand Mantra, to understand the concept Brand Mantra’s even further.

You should also read The Science of Branding 2-2: Branding Inside the

organisation and follow Brand Focus 2.0 – the marketing advantages of strong

brands.

Let’s consider three examples of the above-mentioned:

Emotional modifier Descriptive modifier Brand function

Authentic

Athletic

Performance

Fun

Family

Entertainment

Fun

Folks

Food

2.2.3 Brand resonance and the brand value chain

2.2.3.1. Background

In this section the focus is on the introduction of two new models – the

brand resonance model, which describes how to create intense, active

loyalty relationships with customers, and the brand value chain model,

which is a means by which marketers can trace the value creation process

for their brands to better understand the financial impact of their marketing

expenditures and investments.


.

2.2.3.2. Building a strong brand: The four steps of brand building

The study unit outlines the customer-based brand equity model, which maintains

that building a strong brand involves a series of logical steps: 1) establishing the

proper brand identity, 2) creating the appropriate brand meaning, 3) eliciting the

right brand responses, and 4) forging appropriate brand relationships with

customers. Specifically, according to this model, building a strong brand involves:

1) establishing breadth and depth of brand awareness; 2) creating strong,

favourable, and unique brand associations; 3) eliciting positive, accessible brand

responses; and 4) forging intense, active brand relationships. Achieving these

four steps, in turn, involves establishing six brand building blocks – brand

salience, brand performance, brand imagery, brand judgments, brand feelings,

and brand resonance.

Figures 3.1 and 3.2 in Keller (2013) will help immensely in this regard – ensure

you fully understand these.

Concepts that should be fully understood under this theme are:

Brand building blocks

Brand salience

Brand performance

Brand imagery

Brand judgements

Brand feelings

Brand resonance

Brand building implications.


You also need to have an understanding of the possible measures of brand

building blocks as described in Figure 3.4 in Keller (2013).

The strongest brands excel on all six of these dimensions and therefore fully

execute all four steps in building a brand. With the CBBE model, the most

valuable brand building block, brand resonance, occurs when all the other core

brand values are completely ‘in sync’ with respect to customers’ needs, wants,

and desires. In other words, brand resonance reflects a completely harmonious

relationship between customers and the brand. With true brand resonance,

customers have a high degree of loyalty marked by a close relationship with the

brand such that customers actively seek means to interact with the brand and

share their experiences with others. Firms that are able to achieve resonance

and affinity with their customers should reap a host of valuable benefits, e.g.,

more efficient and effective marketing programmes and greater price premiums.

Then, the implications of the CBBE model are described, including: consumers

own brands, brand managers should not take shortcuts in building a brand,

brands should appeal to consumers’ rational and emotional sides, brands should

have richness in order to facilitate strong bonds with consumers, and achieving

brand resonance should be a key point of focus for marketers.

Ensure you have a full comprehension of Branding Briefs 3.1and 3.2

2.2.3.3. The Brand Value Chain

Developing a strong positioning and building brand resonance are crucial

marketing goals. To better understand the RI of marketing investments, however

the brand value chain needs to be understood. This is a structured approach to

assess the sources and outcomes of brand equity and the manner by which

marketing activities create brand value.

You need to have a full comprehension of this model and be able to apply it to

various brands.


Ensure you have a full understanding of Figure 3.5 in your prescribed textbook as

well as Figure 3.6 as well as Brand Focus 3.0. .

2.2.4 Conclusion

Having completed this study unit, you should have a good understanding of

brand positioning, brand equity and brand resonance and the brand value chain.


(2013):

Branding Briefs

3-1: Building brand communities

3-2: Putting customers first

Brand Focus 3.0 – Creating customer value.

2.2.5 Conclusion

This study unit provides a thorough introduction to customer-based brand equity.


(2013):






1. Pick a brand. Attempt to identify its sources of brand equity. Assess its level

of brand awareness and the strength, favourability, and uniqueness of its

associations.

2. Apply the categorisation model to a product category other than beverages.

How do consumers make decisions regarding whether or not to buy the

product and how do they arrive at their final brand decision? What are the

implications for brand equity management for the brands in the category?

How does it affect positioning for example?

3. Pick a brand. Describe its breadth and depth of awareness.

4. Pick a category basically dominated by two main brands. Evaluate the

positioning of each brand. Who are their target markets? What are their main

points-of-parity and points-of-difference? Have they defined their positioning

correctly? How might it be improved?

5. Which brands resonate with you? Why?

6. Can every brand achieve resonance with its customers? Why or why not?

7. Pick a brand. Assess the extent to which the brand is achieving the various

benefits of brand equity

8. What do you think of Naomi Klein’s positions as espoused in ‘No Logos’?

How would you respond to her propositions? Do you agree or disagree with

her beliefs on the growth of corporate power?

9. Apply the brand value chain to a brand of your choice.

10. Describe the steps in building brand resonance by applying the model to a

brand of your choice.


Study Unit 3: Designing and implementing brand marketing programmes


This study unit examines the three major ways to build customer-based brand

equity, taking a single product-single brand perspective. The first section

addresses the first way to build customer-based brand equity and how to choose

brand elements and the role they play in contributing to brand equity.

The second and third sections outline the second way to build brand equity and

how to optimise the marketing mix to create customer-based brand equity. The

second section covers product, pricing and distribution strategies and the third

section is devoted to creating integrated marketing communication programmes

to build brand equity. Although most students will by now be familiar with these 4

P’s of marketing, it is fascinating to consider them from a brand equity

perspective and the effects of brand knowledge on consumer response to

marketing mix activity and vice versa.

Finally the last section of this study unit examines the third major way to build

brand equity – by leveraging secondary associations from other entities like

company, geographical, region, person and other brands.

Ensure that you have achieved the learning outcomes outlined below which will

facilitate your learning over the following weeks that you dedicate to this module:


Specific learning outcomes:



Explain the criteria involved when choosing brand elements.

Understand the optics and tactics for brand elements.

Understand what set of brand elements are required to make up the brand

identity.

Explain the guidelines for creating high-impact packaging.

Designing marketing programmes to build brand equity

Understand the new perspectives on marketing.

Explain the guidelines for experiential marketing.

Explain the role of the product strategy in building brand equity.

Explain the role of the pricing strategy in building brand equity.

Explain the role of the channel strategy in building brand equity.

Integrating marketing communications to build brand equity

Examine the role of the new media environment on building brand equity.

Provide an overview of marketing communication options when building

brand equity.

Understand the effects of advertising on building brand equity.

Develop an integrated marketing communications programme for a brand

of your choice.


Explain the general marketing communications guidelines.

Explain how you would coordinate media to build brand equity.

Leveraging secondary brand associations to build brand equity

Understand the process of leveraging secondary brand knowledge.

Conceptualise the leveraging process.

Understand how to leverage through the company.

Understand how to leverage through country of origin and other

geographic areas.

Explain how to leverage through channels of distribution.

Explain how to leverage through co-branding.

Understand brand alliances.

Understand the concept of licensing.

Explain the role of celebrity endorsement in building brand equity.

Explain the role of sporting, cultural and other events in building brand

equity.

Explain how to link brands to various third-party sources.

3.2 Choosing brand elements to build brand equity



3.2.1 Introduction

This section examines the elements that marketers can use to identify and

differentiate a brand. Names, logos, symbols, characters, slogans, URL’s, jingles

and packaging all influence a company’s ability to build awareness and image for

a brand and, consequently, have a direct impact on the degree of positive brand

equity that can be established. Brand elements can be judged on the merits of

their brand-building ability by isolating the element in a consumer survey and

measuring consumers’ responses to the brand based solely on the isolated

element. If the consumers infer or assume a certain valued association or

response, the element is said to contribute positively to brand equity.

3.2.2 Criteria for choosing brand elements

Six general criteria should govern an organisation’s choice of brand elements.

First, an element should be memorable, or easy to recognise and recall. Second,

an element should be meaningful, or descriptive, persuasive, inherently fun and

interesting, and rich in visual and verbal imagery. Third, an element should be

likeable to consumers, in an aesthetic sense and in an emotional sense. Fourth,

an element should be transferable within and across product categories, and

across geographical and cultural boundaries. Fifth, an element should be

adaptable, or flexible and capable of being updated over time. Sixth, an element

should be protectable, both legally and competitively. (Refer to Figure 4.1 in

Keller (2013).

Consider Figure 4.2 in Keller (2013)– it provides the ten global branding mishaps.

3.2.3 Options and tactics for brand elements

Next, the benefits and drawbacks inherent in the choice of each type of brand

element are discussed. For example, selecting a familiar-sounding name for a

brand would likely lead to high recall, but recognition often requires brand names

to be different, distinct, or unusual. Fictitious or coined names are often used to


satisfy these criteria. Brand characters are beneficial because they typically aid

awareness, reinforce key brand strengths, add elements of fun, excitement,

humour, etc., and can be transferred across product categories. Consumer

associations with a brand character can be so strong, however, it must be noted

that they can actually dampen awareness by dominating other brand elements.

Also, brand characters must be updated over time.

You should also be familiar with Lippincott’s brand name taxonomy as explained

in Figure 4.3 in Keller (2013).

Figure 4.6 in Keller (2013) also covers the top 7 naming mistakes that you should

be aware of.

3.2.4 Putting it all together

The section ends by discussing how brand elements can be ‘mixed and matched’

for maximum equity building. Brand elements must be mixed to achieve different

positioning objectives, for instance. It is also important to match brand elements

by ensuring that they harbour similarities that reinforce some shared meaning.

Taken together, the entire set of brand elements makes up the brand identity,

which reflects the contribution of all the elements to awareness and image.

Figure 4.8 in Keller (2013) provides the Critique of brand elements options.

3.2.5 Conclusion

Having completed this section, you should have a good understanding of the

importance of choosing brand elements to build brand equity.

The section ends with an insightful Brand Focus 4.0 covering the legal issues for

branding. These include trade mark protection from counterfeit and imitator

brands, trade mark issues with generic names, and trade mark issues with

packaging.



(2013):

Science of Branding

4-1: Counterfeit Business is Booming

4-2: Balance Creative and Strategic Thinking to Create Great Characters

4-3: The Psychology of Packaging

Branding Briefs

4-1: Updating Betty Crocker

4-2: Benetton’s Brand Equity Management

4-3: Do-overs with Brand Makeovers






1. Choose a brand. Identify all of its brand elements and assess their ability to

contribute to brand equity according to the choice criteria identified in the

chapter.

2. What or who are your favourite brand characters? Do you think they

contribute to brand equity in any way? How? Can you relate their effects to

the customer-based brand equity model?

3. What are some other examples of slogans not listed in the study unit that

make strong contributions to brand equity? Why? Can you think of any ‘bad’

slogans? Why do you consider them to be so?

4. Choose a package for any supermarket product. Assess its contribution to

brand equity. Justify your decisions.

5. Can you think of some general guidelines to help marketers ‘mix and match’

brand elements? Can you ever have ‘too many’ brand elements? Which

brand do you think does the best job of ‘mixing and matching’ brand

elements?

3.3 Designing marketing programmes to build brand equity

Study reference: Keller, 2013, Chapter 5

3.3.1 Introduction

This section explores the contribution of three of the four marketing P’s – product,

price and place – to customer-based brand equity. The creation of equity


effectively begins with the design of a product or service that satisfies consumer

wants and/or needs. Perceived quality, which influences attitude and behaviour,

reflects consumer assessments of the relative superiority of a brand on

dimensions related to performance, design, durability and other factors.

Perceived value reflects consumer judgements about a brand’s price-quality

relationship.


1. All of the 4P’s – not just promotion – have important roles to play in the

creation and maintenance of brand equity.

2. Personalised marketing is an emerging strategy to build brand awareness and

brand loyalty.

3. The products and services that firms design are the cornerstones of

customer-based brand equity.

4. Pricing strategy must be based on consumers and the competition, as well as

cost and quality considerations.

5. Channel members should be thought of and treated as valuable customers

whose image and actions can diminish or enhance brand equity.

3.3.2 New perspectives on marketing

The section also discusses some of the new developments in personalised

marketing. Experiential marketing, where the marketer focuses on connecting the

consumer to the brand through a unique experience, is one emerging

personalised marketing technique. Others include one-to-one marketing, where

the marketer uses technologies such as the Internet to target individual

consumers with individualised marketing messages; and permission marketing,

where the marketer seeks permission in advance from consumers to send them

appropriate, relevant marketing materials. Refer to Figure 5.1 in Keller (2013) for

the new capabilities of the new economy.


3.3.3 Integrating marketing

In today’s marketplace, there are many different means by which products and

services and their corresponding marketing programmes can build brand equity.

Channel strategies, communication strategies, pricing strategies and other

marketing activities can all enhance or detract from brand equity.

Refer to Figure 5.2 for reference to the Brand Experience Scale.

3.3.4 Product strategy

You need to fully comprehend that the product itself is the primary influence on

what consumers experience with a brand, what they hear about a brand from

others, and what the organisation can tell customers about the brand – in other

words, at the heart of a great brand is invariably a great product.

Consider the perceived quality and value, brand intangibles, as well as

relationship marketing.

3.3.5 Pricing strategy

Pricing strategy can affect consumer perceptions of a brand’s positioning in its

product category and of its overall quality. Many organisations now employ value

pricing, in which a brand’s price is based on considerations of product quality,

product costs, and product prices that satisfy consumer needs as well as the

profit goals of the firm. Another popular strategy is everyday low pricing, which

entails reducing or eliminating discounts and sales promotions in favour of an

everyday fair price. Consider Science of Branding 5-2: Understanding consumer

price perceptions in Keller (2013) as well as Branding Brief 5.1.

3.3.6 Channel strategy

A brand’s distribution strategy also has an important influence on the creation of

customer-based equity. Channels are of two broad types: direct, which involves


selling to customers by mail, phone, the Internet, or personal visit, and indirect,

which involves selling through intermediaries. The image a retailer has in the

minds of consumers and the actions it takes with respect to stocking and selling

products can affect the equity of the brands it sells. Therefore, it is in a firm’s

interest to treat channel members as customers and assist in their selling efforts.

3.3.7 Conclusion


important aspects of three of the 4P’s and the impact of these on building brand

equity.

This section concludes with a discussion of private labels in Brand Focus 5.0,

noting that they primarily threaten brands that are overpriced, under-supported,

or undifferentiated. It is important not to confuse private labels with generic

brands, because private labels identify the source of the product. The source is

usually the chain in which the private label is sold, which is why private labels are

also called ‘store brands’. Major brands employ a number of strategies to fight

private labels, from value pricing to continued product innovation.


(2013):

Science of Branding

5-1: Making Sense out of Brand Scents

5-2: Understanding Consumer Price Perceptions

Branding Briefs

5-1: Marlboro’s Price Drop

5-2: Goodyear’s Partnering Lessons)


Brand Focus 5.0

Private Label Strategies and Responses





1. Have you had any experience with a brand that has done a great job with

relationship marketing, permission marketing, experiential marketing, or one-

to-one marketing? What did the company do? Why was it effective? Could

others learn from that?

2. Think about the products you own. Assess their product design. Critique their

‘after-marketing’ efforts. Are you aware of all of the products’ capabilities?

Identify a product for which you feel you are not fully capitalising on all of its

benefits. How might you suggest improvements?

3. Choose a product category. Profile all the brands in the category in terms of

pricing strategies and perceived value. If possible, review the brands’ pricing

histories. Have these brands set and adjusted prices properly? What would

you do differently?

4. Take a trip to a department store like Edgars or Stuttafords. Evaluate the in-

store marketing effort. Which categories or brands seem to be receiving the

biggest in-store ‘push’? What unique in-store merchandising efforts do you

see?

5. Take a trip to a supermarket. Observe the extent of private-label brands. In

which categories do you think private labels might be successful? Why?


3.4 Integrating marketing communications to build brand equity


3.4.1 Introduction

The previous section described how various marketing activities and product,

price and distribution strategies can contribute to brand equity. This section

considers the final and perhaps most flexible elements of marketing programmes.

Marketing communications are the means by which firms attempt to inform,

persuade, and remind consumers – directly or indirectly – about the brands they

sell.


1. It is through marketing communications that brands build relationships with

consumers.

2. Development of an integrated marketing communications campaign entails

‘mixing and matching’ options based on their ability to produce a whole that is

greater than the sum of its parts.

3. Creating a dialogue with consumers requires thinking beyond traditional

advertising and promotion strategies.

4. Consistency is the key to creating brand awareness and strong brand

associations.


3.4.2 The new media environment

This section describes the new media environment and role of marketing

communications in building brand equity. Advertising, promotions, direct

marketing, event sponsorship, personal selling, publicity and public relations and

other forms of marketing communications are the means by which firms stay in

touch with consumers and form relationships with them. They can help build

customer-based brand equity by affecting brand awareness; by creating,

reinforcing or strengthening favourable and unique band associations; by eliciting

positive brand judgements or feelings; and facilitating brand resonance. A

communications campaign should contain a mix of options, each selected based

on its ability to achieve specific objectives and to integrate with other options to

maximise brand equity.

3.4.3 Overview of marketing communications options

The options included in a mix should, through their synergy, produce results that

are greater than the sum of their individual effects. Whenever possible, options

should be linked to one another through the use of common visual or verbal

information. Such links, or cues, enhance consumer motivation, ability, and

opportunity to process and retrieve brand-related information. Hence, they

facilitate the formation of strong, favourable, and unique associations.

Components of a communication strategy can be judged for their ability to

achieve the desired brand knowledge structures and elicit the differential

response from consumers that creates brand equity. Six success factors for

advertising are identified: Consumer targeting, advertising creative, consumer

understanding, brand positioning, consumer motivation, and advertising

memorability. A flexible marketing programme is one that contributes to brand

equity in a number of different ways.


Each type of marketing communication tool is evaluated in this section. These

include all forms of advertising: Television, radio, print, direct response, on-line,

place (billboard, poster, movie, airport, product placement). Also included are

promotions – sales promotions, consumer promotions, and trade promotions;

event marketing and sponsorship; public relations and publicity; and personal

selling.

Consider Figure 6.1 in Keller (2013) for a n analysis of the Marketing

Communications Options. Also go through Science of Branding 6-1 in Keller

(2013) – the importance of database marketing.

3.4.4 Developing integrated marketing communications programmes

The section discusses the importance of integrated marketing communication for

maximising the contribution to brand equity of a brand’s marketing programme.

An integrated marketing communication programme must be judged on six

criteria: Coverage, contribution, commonality, complementarity, versatility, and

cost. Finally consider Figure 6.7 in Keller (2013) for guidelines on general

marketing communications.

3.4.5 Conclusion

This section provides you with the insight to understand how marketing

communications can be integrated to enhance brand equity.

Having completed this section, you should have a good understanding of

integrated marketing communications and how to evaluate marketing

communication options strategically to determine how they can contribute to

brand equity.


(2013):


Science of Branding

6-1: The importance of Database Marketing

6-2: Coordinating Media to Build Brand Equity

Branding Briefs

6-1: Brand Building via the X Games

Brand Focus 6.0

Emperical Generalization in Advertising.





1. Select a brand and gather all its marketing communications materials. How

effectively have they ‘mixed and matched’ marketing communications? Have

they capitalised on the strengths of different media and compensated for their

weaknesses at the same time? How explicitly have they integrated their

communication programme?

2. What role in your view, does the Internet play in building brands? How would

you evaluate a website for a major brand, e.g., Nike, Disney, or Starbucks?

3. From a current issue of Finance Week or Financial Mail decide which print

advertisement you feel is the best and which advertisement you feel is the

worst based on the criteria described in the chapter.

4. Consider various coupon examples. How are they building brand equity, if at

all? Try to find a good example and a poor example of brand-building

promotions.


5. Choose a popular event. Who are its sponsors? How are they building brand

equity with their sponsorship? Are they integrating the sponsorship with other

marketing communications?

3.5 Leveraging secondary brand associations to build brand equity


3.5.1 Introduction

This section addresses the way in which secondary associations can be

leveraged to build brand equity. Secondary associations are those related to

other entities to which a brand is linked, such as the parent company, country of

origin, channels of distribution, spokespeople, events, characters, other brands,

and third-party sources. The link may lead consumers to assume or infer that

beliefs, attitudes and perceptions they have for the external source also hold for

the brand. This ability to ‘borrow’ equity from the people, places, or things

associated with the brand creates additional leverage for marketers beyond that

generated by brand elements and marketing programmes.


1. Brands can ‘borrow’ equity from their association with people, places,

programmes, and other non-product-based sources.

2. Secondary associations are strongest when consumers have awareness and

strong, favourable, and unique perceptions of the external source.

3. Secondary associations are most likely to affect evaluations when consumers

lack the ability or motivation to judge product attributes.

4. Leveraging secondary associations can be problematic because it requires

marketers to give up some degree of control over the branding process.


3.5.2 Conceptualising the leveraging process

Leverage can only occur when consumers are familiar with the external source

and associations for the source are relevant to the brand. The leveraged

associations are most likely to be considered in brand choice decisions when

consumers have low interest or knowledge levels. Three criteria for evaluating

the extent of leverage resulting from brand linkage to another entity: awareness

of knowledge of entity, meaningfulness of the entity’s knowledge, transferability

of the entity’s knowledge.

Have a thorough understanding of the creation of new brand associations, the

effects on existing brand knowledge and the guidelines to follow when

leveraging.

3.5.3 Company

You should be able to understand the leveraging options under this heading.

3.5.4 Country of origin and other geographic areas


3.5.5 Channels of distribution


3.5.6 Co-branding


Understand brand alliances as explained Science of Branding 7.2 in Keller

(2013).


3.5.7 Licensing

Ensure that you are aware of all aspects of licensing.

3.5.8 Celebrity endorsement

Consider celebrity endorsement as a form of leveraging, be aware of the risks

and the advantages.

3.5.9 Sporting, cultural or other events


3.5.10 Third party sources


3.5.11 Conclusion

The section highlights that attempts to leverage secondary associations require

the company to relinquish some control over the branding process. In particular,

managing the transfer process so that only the relevant secondary associations

become linked to the brand may be difficult. Unwanted secondary associations

may also become linked to the brand. For example, if one of two brands in a co-

branding agreement becomes a target for negative publicity, the other brand may

find its brand equity negatively affected as well.

Having completed this section, you should have a good understanding of brand

leveraging.



(2013):

Science of Branding

7-1: Understanding Retailers’ Brand Image Dimensions

7-2: Understanding Brand Alliances

Branding Briefs

7-1: IBM Promotes a Smarter Planet

7-2: Selling Brands the New Zealand Way

7-3: Ingredient Branding the DuPont Way

7-4: Managing a Person Brand

Keller (2013) provides some interesting reading material in Brand Focus 7.0

discussing one of the biggest events for corporate sponsorship, the Olympic

Games. Companies spend up to $50 million to be lead sponsors for the Games,

and then spend as much as $100 million on related marketing activities; however,

not everyone thinks the Games provide good value since the increasing

commercialisation of the competition makes it more difficult to break through the

clutter.






1. The Boeing Company makes a number of different types of aircraft for the

commercial airline industry, e.g., the 727, 747, 757, 767, and 777 jet models.

Is there any way for Boeing to adopt an ingredient branding strategy with their

jets? How? What would be the pros and cons?

2. After winning major championships, star players often complain about their

lack of endorsement offers. Similarly, after every Olympics, a number of

medal-winning athletes lament their lack of commercial recognition. From a

branding perspective, how would you respond to the complaints of these

athletes?

3. Think of the country in which you live. What image might it have with

consumers in other countries? Are there certain brands or products that are

highly effective in leveraging that image in global markets?

4. Which retailers have the strongest image and equity in your mind? Think

about the brands they sell. Do they help to contribute to the equity of the

retailer? Conversely, how does that retailer’s image help the image of the

brands it sells?

5. Choose a brand. Evaluate how it leverages secondary associations. Can you

think of any ways in which the brand could more effectively leverage

secondary brand knowledge?


Study Unit 4: Measuring and interpreting brand performance


The previous three study units described various strategies and approaches to

building brand equity. In this study unit we take a detailed look at what

consumers know and feel about and how they act towards brands. We consider

how marketers can develop measurement procedures to assess how well their

brands are doing.


facilitate your learning over the following weeks that you dedicate to this study

unit:


Developing a brand equity measurement and management

system

Explain the concept of new accountability.


Explain the concept of brand tracking studies.

Explain how to establish a brand equity management system.


Measuring sources of brand equity: Capturing customer mind-set

Examine qualitative research techniques.

Understand consumer memory.

Explain how you can make the most of consumer insights.

Examine quantitative research results.

Examine the guidelines for online market research.

Understand categorical brand recalls.

Understand brand attitudes.

Explain comprehensive models of consumer-based brand equity.

Explain Y&R’s Brand Asset Valuator (BAV).

Measuring outcomes of brand equity: Capturing market performance

Explain comparative methods research studies or experiments.

Explain holistic methods research studies or experiments.

Be able to apply the valuation flowchart to a brand of your choice.

Explain the Interbrand Brand Valuation model.

4.2 Developing a brand equity measurement and management system



4.2.1 Introduction

If managers are to develop programmes designed to build, maintain, or leverage

a brand’s equity, they must first understand consumer knowledge structures for

the brand. This section offers some big-picture perspectives on how to think

about brand equity measurement and management.

This section describes various ways to measure those knowledge structures,

which represent sources of brand equity. The concept of a brand equity

measurement system is introduced. Two components make up a brand equity

measurement system: brand tracking studies and brand equity management.

Tracking studies measure consumer attitudes toward the brand on a consistent

basis over time and provide a contemporary picture of the state of the brand. Five

key measures can be used to capture the consumer mindset: Brand awareness,

brand associations, brand attitudes, brand attachment, and brand activity or

experience.

.


1. Understanding what consumers believe, think, know and infer about a brand

is critical to building and managing brand equity.

2. Measuring brand equity requires uncovering the associations consumers

have for a brand, determining the strength, favourability and uniqueness of

those associations, and assessing the impact of brand knowledge on

consumer response to marketing programmes.

3. The purpose of a brand equity measurement system is to provide timely,

accurate and actionable information that marketers can use in their tactical

and strategic decision making.

4. The brand value chain can be used to tie marketing investment to market and

financial performance.


5. Brand equity management systems involve the creation of a brand equity

charter and brand equity report, plus the development of senior management

to oversee the implementation of these tools.

4.2.2 The new accountability

Marketers need new tools and procedures that justify the value of their

expenditures beyond ‘Return on Marketing Investment’ (ROMI) measures tied to

short-term changes in sales.

4.2.3 Conducting brand audits

This study also focuses on the process of a brand audit. A brand audit is an

important informational and diagnostic tool to help marketers determine the

overall state and health of the brand. The two steps of the brand audit, the brand

inventory and the brand exploratory, provide marketers with a complete picture of

the brand and consumers’ perceptions of it.

Brand Focus 8.0 at the end of the chapter discusses the brand audit for the Rolex

brand. It could be used as an illustration of how brand audits are conducted. This

brand focus can help students if they are conducting a brand audit project and

can be highlighted as such in the course syllabus.

Herewith a suggested brand audit outline that you could follow when conducting

a brand audit:

1. Brand audit objectives, scope, and approach

2. Background about the brand (self-analysis)

3. Background about the industries

4. Consumer analysis (trends, motivation, perceptions, needs, segmentation,

behaviour)


5. Brand inventory

5.1 Elements, current marketing programs, POP’s, POD’s

5.2 Branding strategies (extensions, sub-brands, etc.)

5.3 Brand portfolio analysis

5.4 Competitors’ brand inventory

5.5 Strengths and weaknesses

6. Brand exploratory

6.1 Brand associations

6.2 Brand positioning analysis

6.3 Consumer perceptions analysis (vs. competition)

7. Summary of competitor analysis

8. SWOT analysis

9. Brand equity evaluation

10. Strategic brand management recommendations

4.2.4 Designing brand tracking studies

Be familiar with ongoing brand tracking studies and what to track and how to

conduct tracking studies. Refer to Branding Brief 8.1 in Keller (2013) for more

details on a sample brand tracking study survey. You should also be aware of

how to interpret brand tracking studies.

4.2.5 Establishing a brand equity management system

Brand equity management systems consist of three components: a brand equity

charter, a brand equity report, and the creation of senior-level executive positions

charged with overseeing the implementation of the brand equity charter and


brand equity report. The brand equity charter should accomplish the following:

Define the firm’s view of the brand equity concept and ascertain why it is

important; describe the scope of key brands; specify the actual and desired brand

equity for all brands in the brand hierarchy; explain how brand equity is measured

by tracking studies and the brand equity report; provide strategic guidelines for

brand equity management; provide specific tactical guidelines for marketing

programmes; specify proper treatment of brands in terms of trade mark usage,

packaging, and communications.

The brand equity report should provide details as to what is happening with a

brand as well as to why it is happening. It should also include all relevant internal

and external measures of brand performance as well as sources and outcomes

of brand equity. To provide adequate management, it is important for companies

to establish a position of vice president or director of strategic brand

management to oversee the implementation of the charter and report and provide

central coordination for all branding activities.

4.2.6 Conclusion

The section introduced the brand value chain as a means by which marketers

can relate marketing investment to financial performance. By using a series of

three multipliers – the marketing programme multiplier, the customer multiplier,

and the market multiplier – companies can develop a sense of how their

investment in their brands is paying off in the market-place. The chapter

conducted a brief brand value chain analysis for three brands: Starbucks, Miller,

and Reebok.


(2013):


Science of Branding

8-1: The role of brand personas

8-2: Maximizing Internal branding

Branding Briefs

8-1: Sample Brand Tracking Survey

8-2: Understanding & Managing the Mayo Clinic Brand

8-3: How Good is Your Marketing? Rating a Firm’s Marketing Assessment

System

Having completed this section, you should have a good understanding of brand

equity measurement and management systems.

The section ends with Brand Focus 8.0 discussing branding issues and

perspectives at Ogilvy, one of the world’s largest advertising agencies. Ogilvy’s

brand management is described through a three-step process called 360 Degree

Brand Stewardship. The steps are: 1) Discovery, 2) strategy & planning, and 3)

execution.






1. Pick a brand. Try to do an informal brand value chain analysis. Can you trace

how the brand value is created and transferred? What is the role of the

multipliers?

2. Choose Starbucks, Reebok, or Miller. Update and supplement the brand

value chain analysis presented in this chapter. What does the analysis

suggest about that brand’s fortunes in recent years?

3. A few years back, Disney entered into a long-term agreement with

McDonald’s that included, among other things, joint promotions. From

Disney’s perspective and what you know about the two brands, was this the

right decision? Is there any downside? Would you want to conduct any

research to inform the decision? What kind?

4. Consider the McDonald’s tracking survey presented in Branding Brief 8-1.

What might you do differently? What questions would you change or drop?

What questions might you add? How might this tracking survey differ from

those used for other products?

5. Consider Branding Brief 8.2 in Keller (2013) and also visit

www.mayoclinic.org. Can you develop a tracking survey for the Mayo Clinic?

How might it differ from the McDonald’s tracking survey?

http://www.mayoclinic.org/


4.3 Measuring sources of brand equity


4.3.1 Introduction

To measure sources of brand equity, brand managers must understand two key

areas: How consumers shop for and use products and services; and what

consumers know, think, and feel about various brands. One of the potential

complications of pursuing this knowledge is that many times consumers are

unable or unwilling to access and report to researchers their true beliefs and

feelings about a brand.

This section is the second of the broader theme of measuring and interpreting

brand performance.


1. In general, measuring sources of brand equity requires knowing how

consumers shop for and use products and services, and what consumers

know, think, and feel about brands.

2. Since the sources of equity reside in the consumers’ associations, attitudes,

etc., toward the brand, measuring equity requires consumer-focused research.

3. Consumer knowledge of a brand may be uncovered using either quantitative or

qualitative methods, often in combination.

4. Qualitative measures are best for capturing specific consumer insights about


brands, products, and services, while quantitative insights can be employed for

more generalisable information.

4.3.2 Qualitative research techniques

Qualitative methods allow marketers to probe consumers either through direct

questions or through tasks that indirectly reveal perceptions and attitudes. Such

methods, which permit a relatively unlimited range of verbal consumer

responses, include free association tasks, projective techniques, and descriptions

of a brand’s personality and values, among others. Data gathered through

qualitative research generally must be coded and aggregated before it is useful.

Also be familiar with Figures 9.1, 9.2, 9.3 and 9.4 and Branding Briefs 9.1, 9.2,

9.3 and 9.4 in Keller (2013)as well as Science of Branding 9.1 - understanding

categorical brand recall.

4.3.3 Comprehensive models of consumer-based brand equity

Finally, this chapter concludes by presenting other customer-based brand equity

models designed by researchers and consultants, such as Brand Dynamics and

Equity Engine.

Also be familiar with Figures 9.12, 9.13, 9.14 and 9.15 – 9.20in Keller (2013 )as

well as Science of Branding 9.2 - understanding brand engagement.

4.3.4 Conclusion


measuring sources of brand equity.


(2013):


Science of Branding

9-1: Understanding categorical brand recall

9-2: Understanding Brand Engagement

Branding Briefs

9-1: Digging Beneath the Surface to Understand Consumer Behaviour

9-2: Once Upon a Time . . . You Were What You Cooked

9-3: Gordon Ramsay

9-4: Making the Most of Consumer Insight

The section ends with Brand Focus 9.0 discussing Y&R’s Brand Asset Valuator

(BAV). The BAV is the world’s largest database of consumer-derived information

on brands. The BAV evaluates brands on four key measures, called the ‘Four

Pillars’: Differentiation, relevance, esteem, and knowledge. Also employed are a

number of measures across a broad array of perceptual dimensions. The BAV

provides a brand landscape by which marketers can see where their brands are

located relative to other prominent brands or with respect to different markets.






1. Select a brand. Employ projective techniques to attempt to identify sources of

its brand equity. Which measures work best? Why?

2. Run an experiment to see if you can replicate the Mason Haire instant coffee

experiment as explained in Branding Brief 9.2 in Keller (2013). Do the same

attributes still hold? If not, can you replace coffee with one brand combination

from another product category that would produce pronounced differences?

3. Pick a product category. Can you profile the brand personalities of the leading

brands in the category using Aaker’s brand personality inventory?

4. Pick a brand. How would you best profile consumers’ brand knowledge

structures? How would you use quantitative measures?

5. Think of your brand relationships. Can you find examples of brands that fit

into Fournier’s different categories?

4.4 Measuring outcomes of brand equity

Study reference: Study Keller, 2013, Chapter 10.

4.4.1 Introduction

Section 2.2 of Study Unit 2 details seven benefits or outcomes that can result

when an organisation builds positive customer-based equity for a brand: Greater

perceived differentiation, stronger brand loyalty, larger margins, higher trade

support, increased marketing communication effectiveness, and more

opportunities to extend and license the brand name. This section, the last of

Study Unit 4, describes procedures that allow a firm to assess whether its

marketing programmes have, indeed, generated such outcomes.


This section is the last of the broader theme of measuring and interpreting brand

performance and examines measurement procedures to assess the effects of

brand knowledge structures on the measures being explained in the previous

section as well as on other measures that capture market performance for the

brand.


1. The effect of brand equity on consumer responses to marketing activity can

be measured using experimental or statistical techniques.

2. The actual financial value of a brand can only be estimated, and researchers

have developed several different techniques for doing so.

3. Multiple measures and methods should be used to assess the multiple

outcomes of brand equity.

4.4.2 Comparative methods

We first review comparative methods which are means to better assess the

effects of consumer perceptions and preferences on consumer response to the

marketing programme and the specific benefits of brand equity.

Comparative methods help assess the specific benefits of brand equity.

Marketing-based comparative approaches hold the brand fixed and examine

consumer responses to changes in the marketing programme. Brand-based

comparative approaches hold fixed a particular marketing activity being

considered and examine how consumer responses to the activity change as the

brand identification is varied between a focal and a comparison brand. This is

usually done through the use of an experiment in which one group of consumers

responds to questions about a product or an aspect of its marketing programme

attributed to the focal brand, and another group of consumers responds to

questions about the same product or aspect of its marketing programme


attributed to the comparison brand, typically either fictitious, unnamed, or

competitive. A comparison of the responses provides insight into the equity of the

focal brand.

Conjoint analysis varies the attributes or levels of attributes included in product

profiles presented to consumers. Consumer ratings of the profiles can be

analysed to determine the importance attached to each attribute and the trade-

offs consumers are willing to make between them.

You should also review Science of Branding 10-1 in Keller (2013) – the Prophet

Brand Valuation Methodology. This will provide greater insight into understanding

how brands affect consumer behaviour.

4.4.3 Holistic methods

You also need to be able to explain the holistic methods. In contrast to

techniques just described in 4.4.2 above, holistic methods are used to derive an

overall brand value, either in terms of utility or money. The residual approach

considers brand equity to be what remains when preferences for objective

characteristics of the product are subtracted from overall brand preference. Data

used to determine residual value can be gathered through scanners,

experiments, or surveys.

Valuation approaches measure brand equity in dollars by determining a) the

amount of money that would be required to reproduce or replace the brand (cost

approach), b) the incremental cash flows that would arise from the sale of the

brand versus those that would arise from the sale of an unbranded product

(market approach), or c) the net present value of the discounted future cash flows

to be derived from the brand (income approach).


4.4.4 Conclusion

This section considered the two main ways to measure the benefits or outcomes

of brand equity. Figure 10.2 in Keller (2013) summarises the different but

complementary approaches. Combining these outcome measures with the

measures of sources of brand equity from the previous section can provide

insight into the effectiveness of marketing actions. There are four general

guidelines for creating and detecting ROI from brand marketing activities that you

should familiarise yourself with.


ways to measure the benefits or outcomes of brand equity.


(2013):

Science of Branding

10-1: The Prophet Brand Valuation Methodology

Branding Briefs

10-1: Beauty Is in the Eye of the Beholder

The section ends with Brand Focus 10.0 - Branding & Finance, discussing the

relationship between brand equity valuations and stock market information and

performance. It also analyses the accounting implications of branding.






1. Choose a product. Conduct a branded and unbranded experiment. What do

you learn about the equity of the brands in that product class?

2. Can you identify any other advantages or disadvantages with the comparative

methods?

3. Pick a brand and conduct an analysis similar to that done for the Planter’s

brand as explained in Figure 10.1 in Keller (2013). What do you learn about

its extendibility as a result? (Visit their website http://www.planters.com/ for

more information on the brand.)

4. What do you think of the Interbrand methodology? What do you see as its

main advantages and disadvantages?

5. What do you think of Y&R’s Brand Asset Valuator? What do you see as its

main advantages and disadvantages?

http://www.planters.com/


Study Unit 5: Growing and sustaining brand equity


The previous four study units examined strategies for building and measuring

brand equity. This study unit takes a broader perspective and considers how to

create, maintain, and enhance brand equity under various situations and

circumstances.



unit:

Specific learning outcomes


Designing and implementing branding strategies

Explain the concept brand architecture.

Apply the Brand-Product Matrix.

Explain how the ideal brand portfolio can be achieved.

Explain brand hierarchy.

Apply the determinants of corporate image.

Explain corporate brand personality.

Design a brand strategy for a brand of your choice.


Explain the guidelines that could be followed for brand hierarchy

decisions.

Explain how you could use cause marketing to build brand equity.

Introducing and naming new products and brand extensions

Explain Ansoff’s Growth Share matrix.

Examine the advantages and disadvantages of brand extensions.

Explain the concept of fighting feature fatigue.

Understand how consumers evaluate brand extensions.

Evaluate brand extension opportunities.

Discuss extension guidelines based on academic research.

Understand the concept master brands.

Apply the guidelines for profitable line extensions to a brand line extension

of your choice.

Managing brands over time

Explain how you could reinforce brand equity over time.

Understand the long-term effects of marketing actions on brand equity.

Explain the theory brand concept management.

Explain how you could revitalise a brand.

Understand usage expansion.

Explain the theory behind adjustments to a brand portfolio.

Apply brand reinforcement strategies.

Apply brand revitalisation strategies.


Managing brands over geographic boundaries and market segments

Explain regionalisation of market segments.

Explain other demographic and cultural segments.

Discuss the rationale for going international.

Examine the advantages and disadvantages of global marketing

programmes.

Examine standardisation versus customisation.

Explain the strategic issues in a global brand strategy.

Understand how to build global customer-based brand equity.

5.2 Designing and implementing branding strategies


5.2.1 Introduction

In this section we consider issues related to branding strategies, and how to

maximise brand equity across all the different brand elements an organisation

chooses to apply across the products it offers.

Organisations have a variety of options available to them with respect to branding

strategy, which refers to the nature and number of common and distinctive

branding elements that can be applied to the products and services sold.

Branding strategy is important as a means of enabling consumers to understand


and connect with the brand, since it can help consumers organise a company’s

products and services in their minds. This section introduces the concepts of the

brand architecture and the brand hierarchy, two tools that can help a company

make decisions regarding branding strategy.


1. Branding strategy is important as a means of enabling consumers to

understand and connect with the brand, since it can help consumers organise

a company’s products and services in their minds.

2. Designing a brand strategy involves decisions regarding the number of levels

to use, how brand elements at different levels will be combined for a given

product, and how brand elements will be linked to multiple products.

3. Each successive level in a brand hierarchy allows the organisation to

communicate additional, specific information about products.

4. In general, associations for a higher-level brand should be relevant to as many

brands below it as possible, while brands at the same level should be as

differentiated as possible.

5.2.2 Brand architecture

The brand architecture defines both brand boundaries and brand complexity. The

brand-product matrix is a graphical representation of all the products sold by an

organisation. Each row of the matrix is labelled with a brand name, while each

column represents a product. Thus, the rows of the matrix correspond to brand

lines (all the products sold under a particular brand name) while the columns

correspond to product lines, a.k.a. brand portfolios, (all the brands marketed in

particular product categories). An organisation’s branding strategy can be

characterised according to its breadth, which refers to the number and nature of

products that bear the same brand name, and its depth, which refers to the

number and nature of brands in the same product category. Marketers can use


the brand-product matrix to determine whether and where to make connections

across products and brands.

Ensure you also consider Figures 11.2, and 11.3 in Keller (2013), as well as

Branding Briefs 11.1 and 11.2 as well as Science of Branding 11.1 and 11.2 in

Keller (2013).

5.2.3 Brand hierarchy

A brand hierarchy visually illustrates the possible relationships that can be

formed among the organisation’s products through the selection of common and

distinctive brand elements. The levels of the hierarchy might include the

corporate or company brand at the top, followed by a family brand used in more

than one product category, an individual brand that typically is restricted to one

product category, and a modifier that designates a specific item or model.

Because a company’s marketing activity may result in different types of

associations becoming linked to the brand names at various levels of the

hierarchy, each name has the potential to impact the equity of brands at levels

above and below it.

Ensure you also consider Figures 11.5, 11.6 and 11.7 in Keller (2013), as well as

Branding Briefs 11.2 as well as Science of Branding 11.3 in Keller (2013).

5.2.4 Brand architecture guidelines

Brand architecture is a classic example of the “art and science” nature of

marketing. Ensure you have a full comprehension of the brand architecture

process.

Ensure you also consider Figure 11.10 in Keller (2013) in this regard.


5.2.5 Conclusion

The section considers issues related to branding.


(2013):

Science of Branding

11-1: Corporate Brand Personality

Branding Briefs

11-1: Expanding the Marriott Brand

11-2: Netflix Branding Stumbles

11-3: Corporate Reputations: The Most Admired U.S Companies

11-4: Corporate Innovation at 3M


designing and implementing branding strategies.

The section ends with Brand Focus 11.0 covering Cause marketing and a perfect

example of how to handle this situation.






1. Pick a company. As completely as possible, characterise its brand portfolio

and brand hierarchy. How would you improve the company’s branding

strategies?

2. Do you think the Nestle corporate image campaign described in this section

was successful? Why or why not? What do you see as key success factors

for a corporate image campaign?

3. Contrast the branding strategies and brand portfolios of market leaders in two

different industries. For example, contrast the approach by Anheuser Busch

and its Budweiser brand with that of Kellogg’s in the ready-to eat cereal

category?

4. What are some of the product strategies and communication strategies that

General Motors could use to further enhance the level of perceived

differentiation between its divisions?

5. Consider the companies listed in Branding Brief 11-3 as having strong

corporate reputations. By examining their websites, can you determine why

they have such strong corporate reputations?


5.3 Introducing and naming new products and brand extensions


5.3.1 Introduction

This section considers the role of brand extensions in creating, maintaining, and

enhancing brand equity. The popularity of brand extensions, which apply an

established brand name to a new product in the same product category (line

extension) or in a different product category (category extension), has been

fuelled in part by the rising cost of introducing new brands and by the growing

realisation among companies that their brand investments can be leveraged.

This section is the second of the broader theme of growing and sustaining brand

equity and introduces two useful brand architecture tools: The brand-product

matrix – a graphical means of representing the products and brands’ marketing

by an organisation, and the brand hierarchy – a visual means to portray

relationships among various brand elements. This section considers in more

detail the role of product strategy in creating, maintaining and enhancing brand

equity.


1. Extensions can be either introduced in a product category currently served by

the parent brand (i.e., line extension) or a completely different product category

(i.e., category extension).


2. Extensions allow firms to reduce the costs of brand-building advertising

campaigns and of educating consumers about specific product attributes.

3. The risks of brand extensions include dilution of the brand name and negative

feedback effects on existing products.

4. The best extensions are those where the parent brand name helps the new

product and the new product helps the parent brand.

5.3.2 New products and brand extensions, advantages and disadvantages

of extensions

Brand extensions can facilitate new product acceptance by reducing consumers’

perceived risk, raising the probability of gaining distribution and trial, increasing

the efficiency of promotional expenditures, lowering the costs of marketing

programmes, eliminating new brand development costs, allowing for packaging

and labelling efficiencies, and permitting consumer variety seeking. They can

provide feedback benefits to the parent brand by clarifying the meaning of a

brand, enhancing the parent brand image, attracting new customers to the brand

franchise, and thereby expanding market coverage, revitalising the brand, and

facilitating subsequent extensions.

However, brand extensions are not a risk-free strategy. They can confuse or

frustrate consumers, encounter retailer resistance, hurt the parent brand image if

they fail, cannibalise sales of the parent brand, diminish the parent brand’s

identification with any one category, create unfavourable associations for the

parent brand if they succeed, dilute the overall meaning of the parent brand, and

eliminate the opportunity to develop a new brand with its own unique image and

equity.

Also be familiar with Figures 12.1, 12.2, 12.3, 12.4 and 12.5 and Branding Briefs

12.1 and 12.2 in Keller (2013) as well as Science of Branding 12.1.


5.3.3 Understanding how consumers evaluate brand extensions

You should also be able to understand how consumers evaluate brand

extensions.

Also be familiar with Figure 12.5, and Branding Brief 12.3, in Keller (2013).

5.3.4 Evaluating brand extension opportunities

The best brand extensions not only create equity for the new product, but also

add to the equity of the parent brand. All else being equal, an extension will be

more successful if consumers perceive that the parent brand and the extension

product fit together in some way. An organisation engaging in a brand extension

strategy should 1) define actual and desired consumer knowledge about the

brand, 2) identify possible extension candidates, 3) evaluate the potential of each

candidate, 4) evaluate extension feedback effects, 5) consider possible

competitive advantages and reactions, 6) design a marketing programme to

launch the extension, and 7) evaluate the success of the extension and its impact

on the equity of the parent brand.

Also be familiar with Figures 12.6 in Keller (2013).

5.3.5 Extension guidelines based on academic research

The section concludes by providing 14 guidelines for brand extensions based on

the findings of numerous academic research studies. These guidelines can be

employed by marketers to maximise the effectiveness and equity of extensions.

Also be familiar with Figure 12.7 and Figure 12.8 in Keller (2013).


5.3.6 Conclusion


introducing and naming new products and brand extensions.


(2013):

Science of Branding

12-1: When is variety a bad thing?

Branding Briefs

12-1: Growing the McDonald’s Brand

12-2: Are There Any Boundaries To the Virgin Brand Name?

12-3: Mambo Extends Its brand

The section ends with a Brand Focus 12.0 analysing the practice of brand

extensions. Many factors have led to aggressive line extension strategies,

including customer segmentation, pricing breadth; excess capacity, competitive

intensity, and trade pressure. Some of the risks of brand proliferation include:

Weaker line logic, lower brand loyalty, poorer trade relations, and increased

costs. Recommendations to companies seeking effective product-line strategies

include: Improve cost accounting, allocate resources to winners, research

consumer behaviour, and work with channel partners, and manage deletions.






Pick a brand extension. Use the models presented in the chapter to evaluate

its ability to achieve its own equity as well as contribute to the equity of a

parent brand. If you were the manager of that brand, what would you do

differently?

Do you think a brand like Xerox will be able to transform its product meaning?

What are the arguments for or against?

How successful do you predict these recently proposed extensions will be?

Why?

Mont-Blanc (famous for pens) and fragrances & other accessories

(watches, cufflinks, sunglasses & pocket knives)

Evian (famous for water) and high-end spas

Starbucks (famous for coffee) and film production & promotion

Trump (famous for hotels & casinos) and vodka & mortgage

services.

Consider the following brands and discuss the extendibility of each:

Harley-Davidson

Red Bull

Tommy Hilfiger

Whole Foods (go to http://www.wholefoodsmarket.com/)

DSTV

Absolut Vodka

Victoria’s Secret

Blackberry


There are some fake brand extensions among the following list; the others

were marketed at one point. Can you identify the fakes?

Ben-Gay Aspirin: Pain relief that comes with a warm glow

Burberry Baby Stroller: For discriminating newborns

Smith & Wesson Mountain Bikes: Ride without fear

Pond’s Toothpaste: Reduces the appearance of fine wines

Slim Jim Beef-Flavoured Throat Lozenges: For meat lovers who

like to sing Karaoke

Frito-Lay Lemonade: A tangy, crunchy thirst quencher

Cosmo Yogurt: Spoon it up, slim down those thighs

Richard Simmons Sneakers: Shake your cute little booty to the

oldies

Madonna Condoms: For men who are packing.

5.4 Managing brands over time


5.4.1 Introduction

The health and well-being of a brand can be significantly affected by both

external forces (related to consumer behaviour, channel structure and power,

competitive intensity and strategy, government regulation, and other facets of the

marketing environment) and internal forces (related to a company’s commitment


to and stewardship of a brand). This section examines how best to manage

equity over time in the face of external and internal pressures on a brand. One of

the obvious challenges in managing brands is the many changes in the

marketing environment in recent years – effective brand management thus

requires proactive strategies designed to at least maintain if not actually enhance

customer-based brand equity in the face of all these different forces.

This section is the third of the broader theme of growing and sustaining brand

equity.


1. A brand’s health can be affected by changes in consumer preferences,

company commitment, competitive products and programmes, and channel

support, among other factors.

2. Successful brand management requires reinforcing brand meaning and

identifying new sources of equity.

3. Building and maintaining customer-based equity requires consistency in the

amount and nature of marketing support a brand receives.

4. Effective brand management requires taking a long-term view of marketing

decisions.

5.4.2 Reinforcing brands

The keystones to successful brand management are reinforcement of brand

meaning and identification of new sources of equity. Two important factors in

reinforcing brand meaning are consistency in the amount and nature of marketing

support given a brand and a commitment to preserving and protecting existing

sources of equity. When identifying potential new sources of equity, it is

necessary for a company to recognise the inherent trade-offs between marketing


activities that fortify brand equity and those that leverage it in pursuit of growth

and financial gain.

You should also review Figure 13.1 and Science of Branding 13-1, as well as

Branding Brief 13.1 in Keller (2013). These will provide greater insight into

understanding how brands can be reinforced.

5.4.3 Revitalising brands

If a brand loses its lustre, a revitalisation strategy may be required to return it to

prominence. This entails either taking a brand back to its roots to recapture lost

sources of equity, or identifying and establishing new sources of equity.

Sometimes a brand’s misfortunes arise from a lack of breadth in consumer

awareness levels caused by a tendency of consumers to think of it in very narrow

ways. In such cases marketers can identify ways to use the brand more

frequently, use more of the brand when it is consumed, or use the brand in more

ways.

When the problem is one of image, not awareness, a new marketing campaign

may be required to improve the strength, favourability, and uniqueness of a

brand’s associations. This can involve neutralising negative associations, shoring

up positive associations, or creating positive associations. A company may want

to reposition a brand by establishing new points-of-parity or points-of-difference.

You should also review Branding Briefs 13.2, , 13.3, and 13.4 in Keller (2013).

These will provide greater insight into understanding how brands can be

revitalised.


5.4.4 Adjustments to the brand portfolio

Companies with more than one brand in a product line should develop migration

strategies that rationalise the movement of consumers across franchises as their

needs and wants change or as the features and positions of the brands change.

If a brand fails to maintain or build equity over time, a milking strategy to extract

maximum profits before ‘retirement’ may be in order.

You should also review Figures 13.3 and 13.4. These will provide greater insight

into understanding how brands can be revitalised.

5.4.5 Conclusion

This section reiterates that effective brand management requires taking a long-

term view of marketing decisions and recognising that any changes in the

supporting marketing programme for a brand may, by changing consumer

knowledge, affect the success of future marketing programmes.

Having completed this section, you should have a good understanding of how to

manage brands over time.


(2013):

Science of Branding

13-1: Brand Flashbacks

Branding Briefs

13-1: Razor-Sharp Branding at Gillette

13-2: Remaking Burberry’s Image


13-3: Harley-Davidson Motor Company

13-4: A New Morning for Mountain Dew

The section ends with Brand Focus 13.0 discussing how to respond to a brand

crisis.





1. Pick a brand. Assess its efforts to manage brand equity in the last five years.

What actions has it taken to be innovative and relevant? Can you suggest

any changes to the company’s marketing programme?

2. Pick a product category. Examine the histories of the leading brands over the

last decade. How would you characterise the company’s efforts to reinforce or

revitalise brand equity?

3. Identify a fading brand. What suggestions can you offer to revitalise its brand

equity? Try to apply the different approaches suggested in the chapter.

Which strategies would seem to work best?

4. Try to think of additional examples of brands that adopted either a ‘back to

basics’ or ‘reinvention’ revitalisation strategy. How well did they work?

5. Conduct a review of the Unilever brand portfolio. How successful have they

been at reducing the number of brands? What lessons are to be learned from

their strategies?


5.5 Managing brands over geographic boundaries and market segments


5.5.1 Introduction

As they search for ways to achieve economies of scale, maximise growth and

profit, diversify risk, and satisfy the needs and wants of increasingly mobile

consumers, more and more organisations are defining the market-place in global,

rather than domestic, terms. Global marketing programmes are attractive

because they allow economies of scale in production and distribution, resulting in

lower marketing costs, conveying expertise and credibility, communicating a

consistent brand image, permitting quick and efficient leverage of good ideas,

and enhancing the uniformity and control of marketing practices worldwide.

This section is the last of the broader theme of growing and sustaining brand

equity and examines in more detail the implications for managing brand equity

given the existence of different types of market segments. Specific attention will

be paid to international issues and global branding strategies given their

increased prevalence and importance.


1. Global marketing programmes provide a number of advantages, including

economies of scale, lower marketing costs, increased credibility, consistent

brand image, and the ability to establish uniformity and control of marketing

practices worldwide.


2. The increasing mobility of consumers and reach of media allows – and even

dictates – the development of global branding strategies.

3. Building global customer-based brand equity requires creating brand

awareness and a positive brand image in each country in which the brand is

marketed.

4. Marketers often plan globally but implement regionally.

5.5.2 Regional market segments

Regionalisation is an important recent trend that, (perhaps on the surface),

seems to run counter to globalisation. Be familiar with this concept.

5.5.3 Other demographic and cultural segments

Any market segment may be a candidate for a specialised marketing and

branding programme. Be familiar with the role demographic and cultural

segments may play in this regard.

Rationale for going international, advantages and disadvantages A number

of well-known global brands have derived much of their sales and profits from

non-domestic markets for years, for example, Coca-Cola, Shell, Rolex and many

more.

Be familiar with the number of forces that have contributed to the growing interest

in global marketing as well as the advantages and disadvantages of following a

global marketing programme.

You should also review Branding Brief 14.1. This will provide greater insight into

understanding how brands can introduce a global marketing programme.


5.5.4 Global brand strategy

Development of a global marketing programme requires that an organisation

decides 1) which markets are most attractive in terms of their fit with corporate

objectives and marketing capabilities; 2) whether to enter a given market by

exporting established brands, acquiring another company’s brands in the local

market, or forming a strategic alliance with a local market organisation; 3) what

the balance between standardisation/globalisation and adaptation/localisation in

the marketing effort should be; and 4) whether the marketing organisation should

be centralised in the headquarters country, decentralised in the local market, or

reflect a mix of the two.

5.5.5 Standardisation versus customisation

Critics of standardising marketing programmes contend that they are based on

‘lowest common denominator’ approaches that ignore differences across

countries and cultures. Such differences may be related to consumer tastes and

responses to marketing mix elements, product or brand life cycle stages,

competitive sets, reactions of country managers, legal requirements and

restrictions, and the marketing infrastructure

You should also review Branding Brief 14.2. This will provide greater insight into

understanding how brands can apply these concepts in a global marketing

programme.


5.5.6 Building global customer-based brand equity

In order to build global customer-based brand equity, brand awareness and a

positive brand image must be created in each country in which the brand is

marketed. This entails balancing the degree of standardisation/globalisation and

adaptation/localisation in the choice of branding elements, design of the

supporting marketing plan, and leverage of secondary brand associations. The

chapter uses the concept of the ‘Ten Commandments of Global Branding’ to

provide guidelines for marketers looking to take their brands globally.

The section concludes with a discussion on building brand equity across market

segments. There a number of different types of market segments those

organisations can expand into. Companies have employed regional market

segmentation strategies in which a larger geographic area, such as a nation, is

divided into a number of smaller segments. Other segments include demographic

segments, in which a market is divided on the basis of age, gender, or income;

and psychographic segments, which divide a market based on consumer ideals,

beliefs, or attitudes.

You should also review Figures 14.4 and 14.5 and Branding Brief 14.4, as well

as Science of Branding 14.1 – brand recall and language. These will provide

greater insight into understanding how brands can apply these concepts in a

global marketing programme.

5.5.7 Conclusion

This section explained the implementation of a global branding strategy.

Having completed this section, you should have a good understanding of how to

implement a global branding strategy.



(2013):

Science of Branding

14-1: Brand Recall and Language

Branding Briefs

14-1: Marketing to African Americans

14-2: Coca-Cola Becomes the Quintessential Global Brand

14-3: UPS’s European Express

14-4: Managing Global Nestle Brands

The section ends with Brand Focus 14.0 discussing China’s global brand

ambitions, starting with growing local businesses, developing interest in

international markets, developing local leaders, and finally going global.






1. Pick a brand marketed in more than one country. Assess the extent to which

the brand is marketed on a standardised vs. customised basis.

2. How aware are you of the country of origin of different products you own?

Which products do you care about their country of origin? Why? For those

imported brands that you view positively, find out and critique how they are

marketed in their home country.

3. Pick a product category. Consider the strategies of market leaders in different

countries. How are they the same and how are they different?

4. Pick a product category. How are different leading brands targeting different

demographic market segments?

5. Contrast Coke and McDonald’s global branding strategies. How are they

similar and how are they different? Why are they so well-respected?


Study Unit 6: Closing observations


The final study unit summarises the customer-based brand equity framework;

reviews guidelines for building, measuring, and managing brand equity described

in earlier chapters; then offers a perspective on activities and attitudes that can

help or hurt a brand.



unit:

Specific learning outcomes


Examine the guidelines involved in strategic brand management.

Explain the determinants of desired brand knowledge structures.

Explain what is required to create a strong brand.

Examine the seven deadly sins of brand management.

Consider various special applications of branding that may not fit into the

general branding concepts.

Understand future brand priorities.

Apply David Aaker’s brand equity model.

Apply the brand report card to a brand of your choice.



1. Brand management is an art and a science and the purpose of the text was to

provide a number of concepts, tools, frameworks, etc., to help with the latter.

2. Virtually all the branding concepts, tools, frameworks reviewed in the book

were relevant to any particular application. Nevertheless, there are unique

characteristics to any application that suggest more specific guidelines.

3. The brand report card or any comprehensive brand evaluation tool is a good

way to critique the brand management process.


6.2 Strategic brand management guidelines

A brand’s equity can be weakened by failure to understand the full range of

associations consumers have for it, inadequate marketing support, unwillingness

to spend the time and/or money required to build brand awareness and image, a

lack of appreciation of the brand equity concept within the corporation, or an

inability to strike the appropriate balance between maintaining consistency and

implementing change in marketing actions.

You should also review Figures 15.1, 15.2, 15.3, 15.4, 15.5, 15,6 and 15.7.

These will provide greater insight into understanding how brands can apply these

concepts in a global marketing programme.

6.3 What makes a strong brand?

In order to maximise brand equity, organisation’s must develop products that fit

with a brand’s meaning and satisfy the needs and wants of consumers; decide on


the points of parity and points of difference that will result in the best market

position; provide superior delivery of benefits; maintain innovation in design,

manufacturing and marketing; be seen as expert, trustworthy and likable;

communicate with a consistent voice; employ a full range of complementary

brand elements and supporting marketing programmes; and design and

implement a brand hierarchy and brand portfolio that establishes the optimal

relationship among the company’s offerings.

You should also review Figure 15.8 as well as Branding Brief 15.1. These will

provide greater insight into understanding how brands can apply these concepts

in a global marketing programme.

6.4 Future brand priorities

You should also be familiar with this concept.

Consider Branding Brief 15.2 and Figure 15.9. These will provide greater insight

into this topic.

6.5 Conclusion

This section is the final one of the syllabus and provides some closing

observations concerning strategic brand management. It concludes by focusing

on the future of branding – an ever-changing environment.


ever-changing world of branding.


(2013):


Branding Briefs

15-1: The Brand Report Card

15-2: Reinvigorating Branding at Proctor & Gamble

The section ends with Brand Focus 15.0 detailing special applications.





1. What do you think makes a strong brand? Can you add any criteria to the list

provided?

2. What about deadly sins? Do you see anything missing from that list of

seven?

3. Pick one of the special applications and choose a representative brand within

that category. How well do the five guidelines apply? Can you think of others

not listed?

4. What do you see as the future of branding? How will the roles of brands

change? What different strategies might emerge as to how to build, measure,

and manage brand equity in the coming years? What do you see as the

biggest challenges?

5. Review the different trade-offs identified as part of achieving marketing

balance. Can you identify any other trade-offs not listed? For each trade-off,

can you identify a company that has excelled in achieving balance on that

trade-off?


Bibliography

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Kapferer, J.N., 2010. The New Strategic Brand Management: Creating and

Sustaining Brand Equity Long Term. 4th ed. Kogan Page.

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Managing Brand Equity. 4th ed. Global Edition. Pearson Prentice Hall.

Keller, K., 1993. Conceptualizing, measuring, and managing customer-based

brand equity. Journal of Marketing. January, Vol. 57 pp.1-22.

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Laforet, S. & Saunders, J.A., 1994. Managing brand portfolios: how the leaders

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have changed. Journal of Advertising Research. Vol. 45, No. 3 pp. 314-27.

McEnally, M. & de Chernatony, L., 1999. The evolving nature of branding-

consumer and managerial considerations. [Online] Academy of Marketing

Science review. Vol. 1999, No. 2 Available from: http://www.amsreview.org/

articles/mcnelly-2_1999.pdf.


Miletsky, J.I. & Smith, G., 2009. Perspectives on Branding. Canada: CENGAGE

Learning.

Tellis, G.J. & Golder, P.N. 1996. First to Market, First to Fail? Real Causes of

Enduring Market Leadership. MIT Sloan Management Review. 1 January.

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