1. Dr. Shahzad Ahmad Khan
Assistant Professor
Email: shahzad.ahmad@riphah.edu.pk
Riphah School of Leadership
Faculty of Management Sciences
Riphah International University
Islamabad
CHAPTER :9
Creating Brand Equity
2. 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.”
3. 9 - 3
The Role of Brands
• Co nsum e rCo nsum e r
Be ne fitsBe ne fits
• Marke te r Be ne fitsMarke te r Be ne fits
• Identify source/makerIdentify source/maker
• Simplifies DecisionSimplifies Decision
MakingMaking
• Reduces RiskReduces Risk
Roles of Bands areRoles of Bands are
easily defined byeasily defined by
“benefits”:“benefits”:
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The Role of Brands
• Co nsum e rCo nsum e r
Be ne fitsBe ne fits
• Marke te r Be ne fitsMarke te r Be ne fits
• Simplify productSimplify product
handlinghandling
• Protect uniqueProtect unique
featuresfeatures
• Create loyaltyCreate loyalty
• Establish barriers toEstablish barriers to
entryentry
Roles of Bands areRoles of Bands are
easily define byeasily define by
“benefits”:“benefits”:
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Scope of Branding
““Branding” is endowingBranding” is endowing
products and servicesproducts and services
with the power of awith the power of a
brand – by giving namesbrand – by giving names
using brand elements tousing brand elements to
help identify ithelp identify it
The key to “branding” isThe key to “branding” is
that consumers mustthat consumers must
not think that all brandsnot think that all brands
in the category are thein the category are the
samesame
6. Brand Equity
The added value endowed on productsThe added value endowed on products
and services because of the brandand services because of the brand
“The value of a brand. From a consumer
perspective, brand equity is based on
consumer attitudes about positive brand
attributes and favorable consequences of
brand use.”
– American Marketing Association
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7. 9 - 7
Brand Names, Logos,
Symbols, slogans,
jingles, signage
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Brands
Elements
Brand
Equity
Marketing
Activities
Other
Association
Product and service and
all accompanying
marketing activities and
supporting programs.
indirectly transferring
the brand by linking it
to some other entity,
such as a person, place,
or thing
Building Brand Equity
8. Brand vs Product
• A product is anything that is manufactured andA product is anything that is manufactured and
present to the customer.present to the customer.
• A brand is the specific name of the product.A brand is the specific name of the product.
A product can be copied by a competitor;A product can be copied by a competitor;
A brand is unique.A brand is unique.
A product can be quickly outdated;A product can be quickly outdated;
A successful brand is timeless.A successful brand is timeless.
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9. 9 - 9
World’s Most Valuable Brand 2014
Top 10 global brands in Impact Media Value as published in Forbes magazine.
Source: General Sentiment Inc.
10. 9 - 10
This is one of the approach to view brand equity.
Define as; the differential effect that brand knowledge has on
consumer response to the marketing of that brand
Differences in
consumer response
Consumers’ brand knowledge
Perceptions, preferences, and
behaviors
Customer-based Brand Equity
Stronger brands,
greater revenue
Consumer reaction
towards marketing
program
Result of
marketing
program
11. Customer-Based Brand Equity
as a “Bridge”
• Customer-based brandCustomer-based brand
equity represents theequity represents the
“added value” endowed“added value” endowed
to a product as a resultto a product as a result
of past investments inof past investments in
the marketing of athe marketing of a
brand.brand.
• Customer-based brandCustomer-based brand
equity provides directionequity provides direction
and focus to futureand focus to future
marketing activitiesmarketing activities
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Advantages of Strong Brands
• Improved perceptions of product performanceImproved perceptions of product performance
• GreaterloyaltyGreaterloyalty
• LargerMarginsLargerMargins
• Less vulnerability to competitive marketing actionsLess vulnerability to competitive marketing actions
• Less vulnerable to marketing crisisLess vulnerable to marketing crisis
• Increased marketing communications effectivenessIncreased marketing communications effectiveness
• Improved employee recruiting and retentionImproved employee recruiting and retention
• Greaterfinancial market returnsGreaterfinancial market returns
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Brand Promise
Is the marketer’s visionIs the marketer’s vision
of what the brand mustof what the brand must
be and do forbe and do for
consumersconsumers
Consumers will decideConsumers will decide
based on what theybased on what they
think and feel about thethink and feel about the
brandbrand
14. Brand Promise
Brand Promise identifies the single Most
Important measurable in building valueWhat is brand
promise?
What is brand
promise?
1
ExplanationExplanation
2
ExamplesExamples
3
What is the promise you’re making to your
customers that both really matters to them
and makes you different from your
competitors?
Broadband leader
in Malaysia
Peace of mind
15. • Examples:Examples:
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Brands Association
Quality and dependability
Safety
Quality and prestige
Points of Difference
20. Brand salience – how often and how easily customers think of the brand under variousBrand salience – how often and how easily customers think of the brand under various
purchase or consumption situationspurchase or consumption situations
Brand performance – how well the product or service meets customers’functionalBrand performance – how well the product or service meets customers’functional
needsneeds
Brand imagery – the ways in which brand attempts to meet customers’psychologicalBrand imagery – the ways in which brand attempts to meet customers’psychological
or social needsor social needs
Brand judgments – focus on customers’own personal opinions and evaluationsBrand judgments – focus on customers’own personal opinions and evaluations
Brand feelings – customers’emotional responses and reactions with respect to theBrand feelings – customers’emotional responses and reactions with respect to the
brandbrand
Brand resonance – nature of the relationship customers have with the brandBrand resonance – nature of the relationship customers have with the brand
Brand Resonance Model
21. 1. Memorable – how easily the brand element is recalled and
recognized (i.e. short names)
2. Meaningful – credibility of the brand, product ingredient or
type of person who might use the brand
3. Likeable – how visually and verbally appealing is the brand
element
4. Transferable – can the brand element be used to introduce
new products in the same or different categories?
5. Adaptable – how adaptable and updatable is the brand
element
6. Protectable – brand names that become synonymous with
product categories
Brand element choice criteria
22. 1.1. Brand audit - measures “where the brand has been”Brand audit - measures “where the brand has been”
2.2. Brand-tracking studies – measure “where the brand is now” and whetherBrand-tracking studies – measure “where the brand is now” and whether
marketing programs are having the intended effectsmarketing programs are having the intended effects
Measuring brand equity
23. • Brand valuation – estimating the total financial value of the brandBrand valuation – estimating the total financial value of the brand
Measuring brand equity
24. Managing Brand Equity
A COMPREHENSIVE FRAMEWORK FOR
MANAGING BRAND EQUITY
The intangible assets of brands create the basis of brand equity.
Brand equity consists of five different asset dimensions. These
assets include:
1) brand loyalty,
2) brand awareness,
3) perceived quality,
4) brand associations, and
5) other proprietary assets such as patents, trademarks and
channel relationships. If managed well, these assets add value to
the product or service and create additional customer satisfaction,
which, in turn, provide a number of benefits to the firm. (Aaker
1991, 19–21)
25. Brand Revitalization
• Change in the consumer taste and preference.Change in the consumer taste and preference.
• Emergence of new competitors or new technology,Emergence of new competitors or new technology,
new development in the marketing environmentnew development in the marketing environment
could potential affect the fortunescould potential affect the fortunes of a brand.of a brand.
26. Branding Strategy
A firm’s branding strategy –A firm’s branding strategy –
often called brand architectureoften called brand architecture
reflects the number andreflects the number and
nature of common andnature of common and
distinctive elements applied.distinctive elements applied.
27. Branding Strategy
3 choices
• Develop new brandDevelop new brand
• Apply some existing brandApply some existing brand
• Use combination – new and existingUse combination – new and existing
30. Brand Portfolio
• Multiple brand are often necessaryMultiple brand are often necessary
to pursue multiple market segmentto pursue multiple market segment
• Some advantages :-Some advantages :-
Increasing shelf presence and retailerIncreasing shelf presence and retailer
dependencedependence
Attracting customer for varietyAttracting customer for variety
Increasing internal competition within the firmIncreasing internal competition within the firm
Economies of scale in advertising, sales,Economies of scale in advertising, sales,
merchandising and physical distributionmerchandising and physical distribution
32. 1.What is a brand, and how does branding
work?
2. What is brand equity? How is brand equity
built, measured, and managed?
4. What are the important brand architecture
decisions in developing a branding strategy?
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Hinweis der Redaktion
The Brand Dynamics Pyramid shows the number of consumers who have reached each level.• Presence. Active familiarity based on past trial, saliency, or knowledge of brand promise• Relevance. Relevance to consumer’s needs, in the right price range or in the consideration set• Performance. Belief that it delivers acceptable product performance and is on the consumer’sshort-list• Advantage. Belief that the brand has an emotional or rational advantage over other brands inthe category• Bonding. Rational and emotional attachments to the brand to the exclusion of mostother brands