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MARKETING MANAGEMENT

Brand Equity

Chapter Questions

• What is a brand, and how does branding work?

• What is brand equity, and how is it built, measured, and managed?

• What are the important decisions in developing a branding strategy?

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Brand

A name, term, sign, symbol,

intended to identify the goods

or services of one seller

and to differentiate

them from those of competitors

•© Copyright 2008 Pearson Education Canada8-3

The Role of Brands

Signify qualitySignify quality

Create barriers to entryCreate barriers to entry

Competitive advantageCompetitive advantage

Secure price premiumSecure price premium

•© Copyright 2008 Pearson Education Canada8-4

Branding

Endowing products and services

with the power of a brand

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Anything Can Be Branded

•a physical good

•a service

•a store

•a person

•a place

•an organization

•or even an idea

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Brand Equity

1. Estimate of the added value

endowed to products.

2. This is reflected in how consumers

think, feel, and act

with respect to the brand,

as well as the prices, market share,

and profitability that the brand

commands for the firm

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Brand Elements

ElementsSlogans

Brand

names

URLs

Logos

Symbols

Characters

•© Copyright 2008 Pearson Education Canada8-8

Brand Elements

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Slogans

• Like a good neighbour, State Farm is there• Just do it• Nothing runs like a Deere• Help is close to home• We try harder• We’ll pick you up• Zoom Zoom• I’m lovin’ it• This Bud’s for you• Always low prices

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Measuring Brand Equity

•Brand audits•Brand audits

•Brand tracking•Brand tracking

•Brand valuation•Brand valuation

•© Copyright 2008 Pearson Education Canada8-11

Brand Roles in a Brand Portfolio

• Flankers

• Low-end

• Entry-level

• High-end

• prestige

• Cash cows

•© Copyright 2008 Pearson Education Canada8-12

Reasons for Multiple Brands in Portfolio

• To increase shelf presence

• To attract consumers seeking variety

• To increase internal competition

• To yield economies of scale

•© Copyright 2008 Pearson Education Canada8-13