MARKETING MANAGEMENT12th edition

9 Creating

Brand Equity

Kotler Keller

Brand

A Name Sign Symbol Design or A Combination of All

Known Name Identifies Goods/Services from the Crowd Differentiates Goods/Services from Competitors

Creating a Brand Requires

The Role of Brands

Identify the makerSimplify product handlingOffer legal protection

Signify qualityCreate barriers to entrySecure price premium

Branding Technique to Provide Power of a brand to Products & ServicesBrand Equity

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

The Reputation that the Brand Holds in the mind of the customer

Brand Knowledge

It is the Consumers’ Response towards marketing, Based on Brand Knowledge

Customer-Based Brand Equity

Brand Knowledge Creates the Differential Effects that Drives Brand Equity

Brand Association Depends on…..•Strong

•Unique •Favorable

Brand PromiseThe marketer’s vision of what the brand must Be and Do for consumers.

Brand Equity Models: 4 types (We shall learn Brand Resonance)

Brand Salience relates to How Often and Easily the brand comes into mind during Purchase (Depth) or Consumption (Breath) Situations.

Brand Performance relates to how the product or service Meets customers' Functional Needs.

Brand Imagery deals with the ways in which the brand attempts to Meet customers' Psychological or Social Needs.

Brand Judgments focus on customers' Own Personal Opinions and Evaluations.

Brand Feelings are customers' Emotional Responses & Reactions with respect to the brand.

Brand Resonance refers to the nature of the Relationship That Customers Have with the brand and the extent to which customers feel that they are "in sync" with the brand.

Building Brand Equity Drivers of Brand Equity

Brand ElementsMarketing ActivitiesMeaning Transference

Brand Elements

Criteria for Choosing Brand Elements

MemorabilityEasily RecognizeEasily Recalled

Meaningfulness

DescriptivePersuasive

LikeabilityFun and interestingRich visual & verbal imagery

TransferabilityWithin and across product categoriesAcross geographic boundaries and cultural

AdaptabilityFlexibleUpdatable

ProtectabilityLegally Competitively

Name

▲Sort Out and Choose 5-10 Potential Names

▲Do Extensive Local and International Legal Search

▲Now do Market Survey on that Names

▲ Now Choose 1-3 Names

▲Now Do Survey on Memorability, Meaningfulness, Spoken & Writing

▲Also Do Survey on, Product, Price, Packaging or Promotion to Justify the Brand Name

▲Finally “Register The Name” Immediately

Developing Brand Elements

Logos & Symbols

▲Logo Can Be Corporate Name or Trademarks

▲Some are with Strong Word Marks and No Logo Accompanied

▲Abstract Logo/Symbol: Some Has only Logo; Rolex Crown, Olympic Rings▲Logo Can be Created by the Shortened Version of the Company Name.

Jingles: Musical Message Around the brand

▲Jingles are Not Really Transferable (Across Countries) like other Brand Elements

▲May Communicate Benefits and often Convey product Meaning. Bangla Link Desh Song

▲Excellent Tool/Element for Attention & brand Awareness

▲Consumer may Mentally Rehearse or Repeat Catchy Jingle

Slogans: Short Phase; “Information @ Your Finger Tips”

▲Helps Understanding the Meaning of the Brand; What Makes it Special

▲Slogan Can Help for Country Branding •New York - The City That Never Sleeps•Malaysia - Truly Asia

•Freedom of Choice•Rhythm of Life•Ultimate Driving Machine•Express Your-self

URL:

▲Must be Unique, Credible and Meaningful

▲Must be Short & Simple that people can Easily Remember

▲Must be Registered

Optional Tactics for Brand Elements: Cont’Characters

▲Characters are Excellent Attention Getting Tools

▲Character Can Make the Brand As Fun & Interesting

▲Human Characters Can Enhance Likeability

▲Transferred Across Product Category, as they Don’t have Direct Product Meaning

Packaging: Containers/Wrappers for a product

▲TamperproofTamperproof▲ Easy to HoldEasy to Hold▲ Easy to Open Easy to Open ▲ SizeSize▲ ShapeShape▲ MaterialMaterial▲ GraphicsGraphics

Leveraging Secondary Brand Associations

Figure 9.3

Building Brand Equity

Measuring Brand Equity Brand Audits

Examines ▲True Meaning of Brand to Target ▲Potential Rivals ▲Current Health of the Brand

Recommends▲How to Improve The Health of The Brand

▲Recommend To Uncover Source of Equity

Brand Valuation

Brand Tracking▲Monitor Brand’s Health & Its Equity for Adjustments

▲Collects Info. from customers on a routine

basis & Understands……

▲ Where▲ How Much &▲ What Ways the Brand Value is being Created

▲It Estimates the Total Financial Value of the Brand

▲Brand Value is over One-Half of the Total Company Market Capitalization.

Branding Terms

Brand Extension: When a firm uses an established brand to introduce a new product

Sub-brand: When a new brand is combined with an existing brand. Adobe Acrobat Software

Parent Brand: An Existing Brand that gives birth to a brand extension. Toyota

Family Brand: If parent brand is already associated with multiple products through brand

extensions. PRAN

Line Extension: Parent Brand is used to brand a new product that targets a new market

segment within a product category currently served. Napa & Napa Extra

Category Extension: Parent Brand is used to enter a different product category from that

currently served. Bashundhara Tissue & Real-Estate

Branding Terms Cont’Brand Line: consists of All Products —Original as well as Line & Category Extensions

— sold under a particular brand. PRAN “Chanachur, Chatni, Dal, Juice” etc

Brand Mix/Assortment: A Set of All Brand Lines that a Particular Seller Makes

Branded Variants: which are specific brand lines supplied to specific retailers or

distribution channels.

Licensed Product: Brand Name has been licensed to other manufacturers who actually

make the product.

Brand Dilution: occurs when consumers no longer associate a brand with a specific

product or highly similar products and start thinking less of the brand.

Brand Portfolio: is the Set Of All Brands & Brand Lines a particular firm offers for sale

to buyers in a particular category. Different brands may be designed and marketed to appeal

to different market segments.

Brand Naming/Branding Decision:▲ Individual Names: LUX, Radhuni

▲ Blanket Family Names: PRAN

▲ Separate Family Names For All Products Category: Sears Separate Family Names

▲ Corporate name combined with individual product names: TOYOTA CorollaPromotion Cost is HighHere Company Name legitimizes & the Individual Name Individualizes, the new product.

Kenmore for appliancesCraftsman for toolsHomart for major home installations etcPromotion Cost is Moderate

Low cost to PromoteHigh risk on parent Brand Image

Expensive to PromoteLess risk on parent Brand Image

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