Kotler09_media.ppt 3188KB Aug 31 2008 09:56:26 PM

MARKETING MANAGEMENT
12th edition

9
Creating
Brand Equity

Kotler

Keller

Chapter 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?
9-2

Google - 2002 Brand of the Year

9-3

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.
9-4

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
9-5

The Role of Brands
Identify

Identify the
the maker
maker
Simplify
Simplify product
product handling
handling
Organize
Organize accounting
accounting
Offer
Offer legal
legal protection
protection
9-6

The Role of Brands
Signify
Signify quality
quality

Create
Create barriers
barriers to
to entry
entry
Serve
Serve as
as aa competitive
competitive
advantage
advantage
Secure
Secure price
price premium
premium
9-7

Branding

Endowing products and services

with the power of a brand.

9-8

Brand Equity

The differential effect that brand
knowledge has on consumer
response to the
marketing of that brand.

9-9

Brand Knowledge
Thoughts

Feelings
Knowledge
Images

Beliefs
Experiences

9-10

Brand Associations
Strong
Unique
Favorable
9-11

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
9-12

Branding a Place

9-13

Brand Promise

The marketer’s vision of what
the brand must be and do for
Consumers.

9-14

The Virgin Brand

9-15

Brand Equity Models

• Brand Asset Valuator
• Aaker Model
• BRANDZ
• Brand Resonance

9-16

Brand Asset Valuator (BAV)

Brand Equity

Knowledge

Esteem

Relevance

Differentiation

9-17

Figure 9.1 BAV Power Grid

9-18

Aaker Model – Brand Identity

Brand-as-product

Brand-as-organization

Brand-as-person

Brand-as-symbol

9-19

Aaker Model – Brand Assets
Brand
loyalty
Brand
associations
Proprietary
assets

Brand
awareness

Perceived
quality

9-20

The BRANDZ Model

Bonding
Advantage
Performance
Relevance
Presence
9-21

Figure 9.2 Brand Resonance Pyramid

9-22

Drivers of Brand Equity

Brand Elements
Marketing Activities
Meaning Transference
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Brand Elements
Brand
names
Slogans

Characters

URLs

Elements

Logos

Symbols
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Brand Elements

9-25

Brand Element Choice Criteria

• Memorable
• Meaningful
• Likeability

• Transferable
• Adaptable
• Protectible

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The cupped
hands are
an element
of Allstate’s
brand

9-27

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
9-28

Designing Holistic Marketing
Activities

Personalization
Integration
Internalization
9-29

Figure 9.3 Secondary Sources of
Brand Knowledge

9-30

Measuring Brand Equity
Brand
Brand Audits
Audits
Brand
Brand Tracking
Tracking
Brand
Brand Valuation
Valuation

9-31

Table 9.2 The 10 Most Valuable Brands
Brand

2004 Brand Value (Billions)

Coca-Cola

$67.39

Microsoft

$61.37

IBM

$53.79

GE

$44.11

Intel

$33.50

Disney

$27.11

McDonald’s

$25.00

Nokia

$24.04

Toyota

$22.67

Marlboro

$22.13

9-32

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%)
9-33

Bucky Lasek for Campbell’s Soup
at Hand

9-34

Managing Brand Equity
Brand
Brand Reinforcement
Reinforcement
Brand
Brand Revitalization
Revitalization
Brand
Brand Crises
Crises

9-35

Surviving a Brand Crisis

9-36

Devising a Branding Strategy
Develop
Develop new
new brand
brand
elements
elements
Apply
Apply existing
existing brand
brand
elements
elements
Use
Use aa combination
combination of
of
old
old and
and new
new

9-37

Branding Terms
•
•
•
•
•
•

Brand line
Brand mix
Brand extension
Sub-brand
Parent brand
Family brand

•
•
•
•
•
•

Line extension
Category extension
Branded variants
Licensed product
Brand dilution
Brand portfolio

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Brand Naming
Individual
Individual names
names
Blanket
Blanket family
family names
names
Separate
Separate family
family names
names
Corporate
Corporate namenameindividual
individual name
name combo
combo
9-39

Crest Whitestrips

9-40

Brand Roles in a Brand Portfolio

Flankers

Cash Cows

Low-end
Entry-level

High-end
Prestige
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Marketing Debate

 Are brand extensions good or bad?
Take a position:
1. Brand extensions endanger brands.
2. Brand extensions are an important
brand-growth strategy.
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Marketing Discussion

 How can you relate the different
models of brand equity? How are
they similar? Different? Can you
construct a model that incorporates
the best of each?

9-43