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6b
Creating Brand Equity
Professor Takada
6b-1
Key Questions
• What is a brand and how does branding
work?
• What is brand equity?
• How is brand equity built, measured, and
managed?
• What are the important decisions in
developing a branding strategy?
Professor Takada
6b-2
Google - 2002 Brand of the Year
Professor Takada
6b-3
Brand
A name, term, sign, symbol
or design, or a combination of them,
intended to identify the goods
or services of one seller or group
of sellers and to differentiate
them from those of competitors.
Professor Takada
6b-4
Attributes of Strong Brands
• Excels at delivering
desired benefits
• Stays relevant
• Priced to meet
perceptions of value
• Positioned properly
• Communicates
consistent brand
messages
• Well-designed brand
hierarchy
• Uses multiple
marketing activities
• Understands
consumer-brand
relationship
• Supported by
organization
• Monitors sources of
brand equity
Professor Takada
6b-5
The Role of Brands
Identify the maker
Simplify product handling
Organize accounting
Offer legal protection
Professor Takada
6b-6
The Role of Brands
Signify quality
Create barriers to entry
Serve as a competitive
advantage
Secure price premium
Professor Takada
6b-7
Branding
Endowing products and services
with the power of a brand.
Professor Takada
6b-8
Brand Equity
The differential effect that brand
knowledge has on consumer
response to the
marketing of that brand.
Professor Takada
6b-9
Brand Knowledge
Thoughts
Feelings
Knowledge
Images
Beliefs
Experiences
Professor Takada
6b-10
Brand Associations
Strong
Unique
Favorable
Professor Takada
6b-11
Marketing Advantages of Strong Brands
• Improved perceptions of
product performance
• Greater loyalty
• Less vulnerable to
competition
• Less vulnerable to crises
• Larger margins
• Inelastic consumer
response to price
increases
• Elastic consumer
response to price
decreases
• Greater trade
cooperation
• Increase in
effectiveness of IMC
• Licensing
opportunities
• Brand extension
opportunities
Professor Takada
6b-12
Branding a Place
Professor Takada
6b-13
Brand Promise
The marketer’s vision of what
the brand must be and do for
Consumers.
Professor Takada
6b-14
The Virgin Brand
Professor Takada
6b-15
Brand Equity Models
• Brand Asset Valuator
• Aaker Model
• BRANDZ
• Brand Resonance
Professor Takada
6b-16
Brand Asset Valuator (BAV)
Brand Equity
Knowledge
Esteem
Relevance
Differentiation
Professor Takada
6b-17
BAV Power Grid
Professor Takada
6b-18
Aaker Model – Brand Identity
Brand-as-product
Brand-as-organization
Brand-as-person
Brand-as-symbol
Professor Takada
6b-19
Aaker Model – Brand Assets
Brand
loyalty
Brand
associations
Proprietary
assets
Brand
awareness
Perceived
quality
Professor Takada
6b-20
The BRANDZ Model
Bonding
Advantage
Performance
Relevance
Presence
Professor Takada
6b-21
Brand Resonance Pyramid
Professor Takada
6b-22
Drivers of Brand Equity
Brand Elements
Marketing Activities
Meaning Transference
Professor Takada
6b-23
Brand Elements
Brand
names
Slogans
URLs
Elements
Logos
Characters
Symbols
Professor Takada
6b-24
Brand Elements
Professor Takada
6b-25
Brand Element Choice Criteria
• Memorable
• Meaningful
• Likeability
• Transferable
• Adaptable
• Protectible
Professor Takada
6b-26
The cupped
hands are
an element
of Allstate’s
brand
Professor Takada
6b-27
Slogans
• Like a good neighbor,
State Farm is there
• Just do it
• Nothing runs like a
Deere
• Help is just around the
corner
• Save 15% or more in
15 minutes or less
•
•
•
•
•
•
•
•
We try harder
We’ll pick you up
Nextel – Done
Zoom Zoom
I’m lovin’ it
Innovation at work
This Bud’s for you
Always low prices
Professor Takada
6b-28
Designing Holistic Marketing
Activities
Personalization
Integration
Internalization
Professor Takada
6b-29
Secondary Sources of
Brand Knowledge
Professor Takada
6b-30
Measuring Brand Equity
Brand Audits
Brand Tracking
Brand Valuation
Professor Takada
6b-31
The 10 Most Valuable Brands
Brand
2004 Brand Value (Billions)
Coca-Cola
Microsoft
IBM
GE
$67.39
$61.37
$53.79
$44.11
Intel
Disney
McDonald’s
$33.50
$27.11
$25.00
Nokia
Toyota
Marlboro
$24.04
$22.67
$22.13
Professor Takada
6b-32
Interbrand’s Brand Equity Formula
Brand earnings
• Brand sales
• Costs of sales
• Marketing costs
• Overhead expenses
• Remuneration of
capital charge
• Taxation
Brand strength
• Leadership (25%)
• Stability (15%)
• Market (10%)
• Geographic spread
(25%)
• Trend (10%)
• Support (10%)
• Protection (5%)
Professor Takada
6b-33
Bucky Lasek for Campbell’s Soup
at Hand
Professor Takada
6b-34
Managing Brand Equity
Brand Reinforcement
Brand Revitalization
Brand Crises
Professor Takada
6b-35
Surviving a Brand Crisis
Professor Takada
6b-36
Devising a Branding Strategy
Develop new brand
elements
Apply existing brand
elements
Use a combination of
old and new
Professor Takada
6b-37
Branding Terms
•
•
•
•
•
•
Brand line
Brand mix
Brand extension
Sub-brand
Parent brand
Family brand
•
•
•
•
•
•
Professor Takada
Line extension
Category extension
Branded variants
Licensed product
Brand dilution
Brand portfolio
6b-38
Brand Naming
Individual names
Blanket family names
Separate family names
Corporate nameindividual name combo
Professor Takada
6b-39
Crest Whitestrips
Professor Takada
6b-40
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