MARKMA - Chapter 9

1. CREATING
BRAND
EQUITY
MARKMA
Rhea G. Jardin
May 4, 2012
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2. What is a Brand?
A product or service whose
dimensions differentiate it in
some way from other products or
services designed to satisfy the
same need
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3. Differences maybe related to:
A. Product performance of the brand
1. Functional - 𝑓 𝑥
2. Rational -
3. Tangible
B. What the brand represents
1. Symbolic
2. Emotional
3. Intangible
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4. Role of Brands
1. Identify the source or maker of the product
that satisfies the consumers’ needs
2. Simplifies product handling or tracing
3. Offers firm legal protection with intellectual
property rights
4. Signals level of quality so that buyers can
easily choose the product again
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5. What is Branding?
- Endowing products and services with the
power of the brand by creating differences
between products
- “who” the product is, what the product does
and why consumers should care
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6. Brand Equity
- the added value on products and services
- reflected on how consumers think,
feel and act on the brand
- reflected in the prices, market share
and profitability for the firm
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7. Customer-based brand equity
A. Positive – customers react more favorably to
a product and the way it is marketed
B. Negative – customers react less favorably to
marketing activity for the brand
Three (3) key ingredients:
1. Consumer response
2. Consumer’s knowledge about the brand
3. Consumer’s perceptions, preferences and
behavior
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8. Brand Knowledge
1. Quality is the critical factor not the quantity
2. Dictates future directions for the brand based
on how consumers think and feel about the brand
Brand promise - the marketer’s vision of what the
brand must be and do for consumers
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9. Five pillars of brand equity
1. Differentiation – measures the degree to which
a brand is seen as different from others
2. Energy – measures the brand’s sense of
momentum
3. Relevance – measures the breadth of a brand’s
appeal
4. Esteem – measures how well the brand is
regarded and respected
5. Knowledge – measures how familiar and
intimate consumers are with the brand
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10. Five pillars of brand equity
+ + = energized brand strength
- point to the brand’s future value
+ = brand stature
- “report card” of past performance
“Pillar’s pattern” reveal a brand’s current and
future status
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11. BrandDynamics Pyramid
-Developed by Millward Brown of BRANDZ
Marketing as a model of brand strength
Nothing else beats it Bonding
Does it offer something
Advantage
better than the others?
Can it deliver?
Performance
Does it offer me Relevance
something?
Do I know Presence
about it?
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12. BrandDynamics Pyramid
-Developed by Millward Brown of BRANDZ
Marketing as a model of brand strength
Nothing else beats it Bonding Strong relationship / High
Does it offer something share of category expenditure
Advantage
better than the others?
Can it deliver?
Performance
Does it offer me Relevance
something?
Do I know Presence Weak relationship /
about it? Low share of category
expenditure
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13. Brand Resonance Model
Stages of Brand Brand Brand building Branding objective at
Development blocks each stage
4. Relationships Resonance
= what about Intense, active
you and me? loyalty
3. Response =
Judgments Feelings Positive,
what about
accessible
you?
reactions
2. Meaning = Performance Imagery Points-of-
what are you? parity &
difference
Salience
1. Identity = Deep, broad
who are you? brand
awareness
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14. Brand Resonance Model
Brand salience – how often and how easily customers think of the brand
under various purchase or consumption situations
Brand performance – how well the product or service meets customers’
functional needs
Brand imagery – the ways in which brand attempts to meet customers’
psychological or social needs
Brand judgments – focus on customers’ own personal opinions and
evaluations
Brand feelings – customers’ emotional responses and reactions with respect
to the brand
Brand resonance – nature of the relationship customers have with the brand
(“in sync” with it)
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15. Brand equity drivers
1. Initial choices for the brand elements or identities making
up the brand
2. The way the brand is integrated into the supporting
marketing program
3. The associations indirectly transferred to the brand by
linking the brand to some other entity
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16. Brand element choice criteria
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?
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17. Brand element choice criteria
5. Adaptable – how adaptable and updatable is the brand
element
Betty Crocker in 1936 Betty Crocker in 1986
6. Protectible – brand names that become synonymous with
product categories
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18. Measuring brand equity
1. Brand audit - measures “where the brand has been”
2. Brand-tracking studies – measure “where the brand is now” and
whether marketing programs are having the intended effects
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19. Measuring brand equity
Brand valuation – estimating the total financial value of the brand
Rank Brand 2006 Brand Value
(Billions)
1 Coca-cola $67.00
2 Microsoft $56.93
3 IBM $56.20
4 GE $48.91
5 Intel $38.32
6 Nokia $30.13
7 Toyota $27.94
8 Disney $27.85
9 McDonald’s $27.50
10 Mercedes-Benz $22.13
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20. Managing brand equity
1. Brand reinforcement
- requires innovation and relevance throughout the marketing
program
- brand must be moving forward in the right direction with new
offerings and ways to market them
2. Brand revitalization
- reinvention strategy
- renewal of commitment to quality
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21. Brand Equity
reflected on where
customers price market share profitability quality is a factor over quantity
Pillars of brand equity:
differentiation energy relevance esteem knowledge
energized brand strength brand stature
criteria for brand element:
memorable/short meaningful likeable transferrable
adaptable protectible
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22. CREATING
BRAND
EQUITY
MARKMA
Rhea G. Jardin
May 4, 2012
hypermarketing2.com
www.