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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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