STRATEGIC BRAND MANAGEMENT

BUILDING, MEASURING, AND MANAGING BRAND EQUITY

What is a Brand?
A brand is a name, term, sign, symbol, or design which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.

New Branding Challenges

Brands are important as ever
Consumer need for simplification Consumer need for risk reduction

Brand management is as difficult as ever

Savvy consumers Increased competition Decreased effectiveness of traditional marketing tools and emergence of new marketing tools Complex brand and product portfolios
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The Customer/Brand Challenge

In this difficult environment, marketers must have a keen understanding of:
customers brands the relationship between the two

The Concept of Brand Equity

The brand equity concept stresses the importance of the brand in marketing strategies. Brand equity is defined in terms of the marketing effects uniquely attributable to the brand.
Brand equity relates to the fact that different outcomes result in the marketing of a product or service because of its brand name, as compared to if the same product or service did not have that name.
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The Concept of Customer-Based Brand Equity

Customer-based brand equity
Differential effect Customer brand knowledge Customer response to brand marketing

Determinants of Customer-Based Brand Equity

Customer is aware of and familiar with the brand Customer holds some strong, favorable, and unique brand associations in memory

Building Customer-Based Brand Equity

Brand knowledge structures depend on . . .

The initial choices for the brand elements

The supporting marketing program and the manner by which the brand is integrated into it Other associations indirectly transferred to the brand by linking it to some other entities

Benefits of Customer-Based Brand Equity

Enjoy greater brand loyalty, usage, and affinity Command larger price premiums Receive greater trade cooperation & support Increase marketing communication effectiveness Yield licensing opportunities Support brand extensions.
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Customer-Based Brand Equity as a Bridge

Customer-based brand equity represents the added value endowed to a product as a result of past investments in the marketing of a brand. Customer-based brand equity provides direction and focus to future marketing activities
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The Key to Branding

For branding strategies to be successful, consumers must be convinced that there are meaningful differences among brands in the product or service category. Consumer must not think that all brands in the category are the same. PERCEPTION = VALUE

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 the purpose is to set forth principles, models and frameworks that will help guide managers through challenges as they plan and execute brand strategies.

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Strategic Brand Management

Strategic brand management involves the design and implementation of marketing programs and activities to build, measure, and manage brand equity. The strategic brand management process is defined as involving four main steps:
1) 2) 3) 4) Identifying and establishing brand positioning and values Planning and implementing brand marketing programs Measuring and interpreting brand performance Growing and sustaining brand equity

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Strategic Brand Management Process

STEPS
Identify and Establish Brand Positioning and Values

KEY CONCEPTS
Mental maps Competitive frame of reference Points-of-parity and points-of-difference Core brand values Brand mantra Mixing and matching of brand elements Integrating brand marketing activities Leveraging of secondary associations Brand Value Chain Brand audits Brand tracking Brand equity management system Brand-product matrix Brand portfolios and hierarchies Brand expansion strategies Brand reinforcement and revitalization

Plan and Implement Brand Marketing Programs

Measure and Interpret Brand Performance

Grow and Sustain Brand Equity

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Planning and Implementing Brand Marketing Programs

the three main factors that contribute to brand equity: the initial choices for the brand elements or identities making up the brand; the way the brand is integrated into the supporting marketing program; and the associations indirectly transferred to the brand by linking the brand to some other entity (e.g., the company, country of origin, channel of distribution, or another brand).
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Leveraging Secondary Associations

Brand associations may themselves be linked to other entities, creating secondary associations:
Company (through branding strategies) Country of Origin (through identification of product origin) Channels of Distribution (through channels strategy) Other Brands (through co-branding) Characters (through licensing) Celebrity Spokesperson (through endorsement advertising) Events (through sponsorship) Other third party sources (through awards & reviews)

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Brand Equity Measurement System

A brand equity measurement system is a set of research procedures that is designed to provide timely, accurate, and actionable information for marketers so that they can make the best possible tactical decisions in the short run and strategic decisions in the long-run.

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Rationale of Customer-Based Brand Equity Model

Basic premise: Power of a brand resides in the minds of customers Challenge is to ensure customers have the right types of experiences with products & services and their marketing programs to create the right brand knowledge structures:
Thoughts Feelings Images Perceptions Attitudes
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Building Customer-Based Brand Equity

Building a strong brand involves a series of steps as part of a branding ladder A strong brand is also characterized by a logically constructed set of brand building blocks.
Identifies areas of strength and weakness Provides guidance to marketing activities

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Brands offer tangible and intangible benefits to the companies who manufacture them, the retailers who sell them, and the consumers who buy them.

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Brand awareness
is important 1) it is a necessary condition for inclusion in the set of brands being considered for purchase, 2) in low-involvement decision settings it can be a sufficient condition for choice, and 3) it influences the nature and strength of associations that comprise the brand image

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Branding
Pretty much everything today can be seen in relation to a love-respect axis. You can plot any relationship with a person, with a brand by whether its based on love or based on respect. It used to be that a high respect rating would win. But these days, a high love rating wins. If I dont love what youre offering me, Im not even interested.
- Kevin Roberts, Saatchi and Saatchi

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Branding

TradeMark

Love * Mark

Trust-Mark
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POWER BRANDS
Those Brands which are particularly well adapted to the environment and which thus, survive and flourish.

Attached to Consumers Deep respect for the way products fit into Consumers lives = Core of Success

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Building Customer-Based Brand Equity

TOOLS AND OBJECTIVES Choosing Brand Elements (4) Brand name Logo Symbol Character Packaging Slogan KNOWLEDGE EFFECTS BENEFITS

Brand Awareness (3)

Depth Recall Recognition Purchase Consumption

Possible Outcome
Greater loyalty Less vulnerability to competitive marketing actions and crises Larger margins More elastic response to price Decreases More inelastic response to price increases

Memorability Meaningfulness Transferability Adaptability Protectability

Breadth

Developing Marketing Programs (5 & 6) Product Price Distribution channels Communications Functional & symbolic benefits Value perceptions Integrate Push & Pull Mix and match options

Brand Associations (3) Strong Relevance Consistency Desirable Deliverable Point of parity Point of difference Increased marketing communication efficiency and effectiveness Possible licensing opportunities More favorable brand extension evaluations
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Leverage of Secondary Associations (7)

Company Country of origin Channel of distribution Other brands Endorsor Event

Favorable Awareness Meaningfulness Transferability

Unique

Why do brand matter? To consumers

Identification of sources of product Assignment of responsibility to product maker. Risk reducer Search cost reducer Symbolic device Signal of quality Promise or bond with product or maker

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Why do brand matter? To Manufacturer

Means of identification to simplifying handling and tracing. Means of legally protecting unique feature. Signal of quality Means of endowing products with unique associations. Sources of competitive advantage Sources of financial returns.

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