brand equity

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Ana Alice Haddad – 15650
Caroline Braga – 15970
Cynira Altenfelder – 15656
Lohayne Porto – 13760
Manoela Gazze – 15666
Priscila Salomon – 14338
Rafaela Reis - 14339
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1) WHAT IS A BRAND AND HOW DOES BRANDING
WORK?
2) WHAT IS BRAND EQUITY?
3) HOW IS BRAND EQUITY BUILT, MEASURED, AND
MANAGED?
4) WHAT ARE THE IMPORTANT DECISIONS IN
DEVELOPING A BRANDING STRATEGY?
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QUER PAGAR QUANTO?
NÃO TEM PREÇO!
AMO MUITO TUDO ISSO!
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BRAND: name, term, sign, symbol, or design, or a combination
of them intended to distinghish one product or service from
another
MAIN OBJECTIVE  DIFERENTIATION
DIFERENCES:
– Product performance: functional, rational or tangible
– Brand Image: symbolic, emotional or intangible
EARLIEST SIGNS OF BRANDING: medieval guilds, artists
signs in sculpture, painting
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BRANDS:
– Improve consumer’s lives and enhance final value of
firms;
CONSUMER’S CHOICE:
– Satisfied buyers choose the product again;
– Predictable and secutity demands;
– Possibility of prime prices;
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Example:
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BRAND EQUITY
– Is the added value endowed on products or services
– Associated with the ability of a professional marketer to create,
maintain, enhance and protect brands;
CONSUMER-BASED BRAND EQUITY
– The power of a brand lies is what consumers have seen, read,
heard, thought and felt about the brand
– The differential effect that brand knowledge has on consumer
response
• Positive: consumer react favorably when brand is identified
• Negative: consumer react less favorably or do not identify the brand
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Brand resides in the minds of consumers;
“Who” the product is and what it does;
Almost everything can become a brand:
–
–
–
–
–
–
–
Physical goods
Services
Store
Person
Place
Idea
Event
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PHYSICAL GOODS
SERVICES
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STORE
PERSON
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PLACE
IDEA
– Bulling
– Free trade
– Abortion rights
EVENT
– SWU
– Woodstock
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INVESTMENTS $ X BRAND EQUITY
– Quality is what matters, not quantity
WHY DOES COMPANIES MAKE MISTAKES?
– Marketers failed to atract consumer´s attention;
– Company’s product failed to meet consumers’
needs and wants
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There are some different perspectives about it.
Kotler highlighted four of the more-established ones:
– BRAND ASSET VALUATOR
– BRANDZ
– AAKER MODEL
– BRAND RESSONANCE MODEL
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STAGES OF BRANDING
DEVELOPMENT
4. Relationships =
BRAND
BRAND BUILDING
BLOCKS
RESSONANCE
Intense, active loyalty
What about you and me?
3. Response =
JUDGMENTS – FEELINGS
What about you?
2. Meaning = What are you?
BRANDING OBJETIVE
AT EACH STAGE
PERFORMANCE – IMAGERY
1. Identity = Who are you?
SALIENCE
Positive, accessible
reactions
Points-of-party &
difference
Deep, broad brand
awareness
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BRAND SALIENCE
BRAND PERFORMANCE
BRAND IMAGERY
BRAND JUDGEMENTS
BRAND FEELINGS
BRAND RESSONANCE
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BRAND EQUITY DRIVERS
BRAND ELEMENTS
CHOOSING BRAND ELEMENTS
DEVELOPING BRAND ELEMENTS
DESIGNING HOLISTIC MARKETING ACTIVITIES
PERSONALIZATION
INTEGRATION
INTERNALIZATION
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The Initial choices for the brand elements
The wild and adventure man
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The product and service
They offer a “pós-vendas” service
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Associations indirectly transferred to the brand
XUXA
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Trademarkable devices that identify
and differentiate the brand
Swoosh logo –
Empowering slogan –
Name based on the winged goddess of victory
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Test of the brand building
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Memorable – short names
Meaningful – credible, suggestive
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Likable – likable visually, verbally and other ways
Transferable – Introduce new products, geographic
boundaries, market segments
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Adaptable – adaptable and updatable
Protectible - legally protectible
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Easy to regognize and recall
Inherently descriptive
Persuasive
Intangible characteristics
Slogan – useful hooks : “Gol, linhas aéreas”
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Brands are not built by advertising alone
NEW BRANDS CONTACTS: clubs and consumers
communities, trade shows, event marketing,
sponsorship, factory visits, public relations and press
release, social media
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EXPANSION OF INTERNET
Make sure the brand and its marketing are as
relevant as possible to as many customers as possible
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Mixing and matching marketing activities to maximize
their individual and collective effects
IDENTITY X IMAGE
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INTERNAL BRANDING
BRAND BONDING
B2E
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OTHER
BRANDS
PEOPLE
BRAND
PLACES
THINGS
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BRAND VALUE CHAIN
Marketing
Program
Investment
Customer Mind-Set
Brand Performance
Shareholder
Value
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BRAND VALUE CHAIN
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1) Measuring Brand Equity
2) Measuring the value of the brand as a financial asset
Brand Equity
120
100
80
60
Brand Equity
40
20
0
1
2
3
4
5
6
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1) MEASURING BRAND EQUITY
Qualitative and quantitative measures:
• Statistics models
• Perceived quality
• Purchase intention
• Willingness to recommend to a friend
• Relevant Differentiation
• Association
• Awareness
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2) FINANCIAL VALUE OF A BRAND
Ability to generate future cash flow
“From 1000 marketing executives, 66% ranked
the accountability of marketing as their
number-one concern.”
Association of National Advertisers
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0
1 2 3 4 5
EVA
0
1 2 3 4 5
EVA
10% price
100 future cash flow will occur
30% attributes
0 future cash flow won’t occur
0
1 2 3 4 5
EVA
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Requirement
long-term view of marketing actions
Brand Positioning
How do we want to be
perceived and what’s
our cmpetitive
advantages?
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BRAND REINFORCEMENT
(1) What products the brand represents, what core benefits it supplies, and
what needs it satisfies
(2) How the brand makes products superior, and which strong, favorable, and
unique brand associations should exist in the minds of consumers
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BRANDING IN XXI CENTURY
(Scott Bedbury, A new band world)
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BRANDING IN XXI CENTURY
(Scott Bedbury, A new band world) - Principles of branding
Brand Principle # 1
Relying on brand awareness has become marketing fool’s gold
Relevance & Resonance
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BRANDING IN XXI CENTURY
(Scott Bedbury, A new band world) - Principles of branding
Brand Principle # 2
You have to know it before you can grow it
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BRANDING IN XXI CENTURY
(Scott Bedbury, A new band world) - Principles of branding
Brand Principle # 3
Always remember the rule of
brand expansion
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BRANDING IN XXI CENTURY
(Scott Bedbury, A new band world) - Principles of branding
Brand Principle # 4
Excellent brands establish lasting relationships with customers
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BRANDING IN XXI CENTURY
(Scott Bedbury, A new band world) - Principles of branding
Brand Principle # 5
Everything Matters
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BRANDING IN XXI CENTURY
(Scott Bedbury, A new band world) - Principles of branding
Brand Principle # 6
All brands need good parents
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BRANDING IN XXI CENTURY
(Scott Bedbury, A new band world) - Principles of branding
Brand Principle # 7
Big is not excuse to be bad
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BRANDING IN XXI CENTURY
(Scott Bedbury, A new band world) - Principles of branding
Brand Principle # 8
Relevance, simplicity and humanity
NOT TECHNOLOGY
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Santa Claus has been
reinvented by Coca-Cola
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“Zynga, produtora de
jogos sociais como
FarmVille e Mafia
Wars, passará a
comercializar
produtos da marca
FarmVille em lojas
de conveniência da
rede 7-Eleven, em
uma tentativa de
conquistar o público
jovem.”
Source: Terra
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BRAND REVITALIZATION
Are positive associations losing their strength or
uniqueness?
Have negative associations become linked to
the brand?
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BRAND REVITALIZATION Natura - Changes
Source: Central de Cases ESPM e EXAME
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Market Segments
Financial
Analysis
Demand
Drives
Competitive
Benchmarking
Intangible
Earnings
Role of
Branding
Brand
Strength
Brand
Earnings
Brand Value
Brand
Discount Rate
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BRANDING STRATEGY:
the number and nature
of distinctive and
common elements of the
products it sells
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BRAND EXTENSION: When a firm uses an
established brand to introduce a new product
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SUBBRAND:
A combination of a new brand with an existing brand.
PARENT BRAND or FAMILY BRAND:
The brand that gives birth to the extension.
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BRAND EXTENSIONS:
– Line extension
“The parent brand covers a new product within a
product category it already serves”
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BRAND EXTENSIONS:
– Category extension
“The parent brand is used to enter a new product
category it currently serves”
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CATEGORY EXTENSIONS:
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BRAND LINE – all products under a particular brand
BRAND MIX – all brand lines a particular seller makes
available to public
BRAND VARIANTS – specific brand lines supplied to
determined distribution channels
LICENSED PRODUCT – Brand name licensed to other
manufacturers to use the name of certain product.
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BRANDING DECISIONS
INDIVIDUAL NAMES
Companies often use different brand names for
different quality lines within the same product
class. (I.E. Delta Airlines)
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BRANDING DECISIONS
BLANKET FAMILY NAMES
To use the corporate name under the range of products
A corporate branding strategy can lead to greater
intangible value for the firm
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BRANDING DECISIONS
Separate family names for all products
Often used when companies produce quite
different products.
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Corporate name combined with individual
product names
The company name legitimize and the
individual name individualizes the new product
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BRAND EXTENSIONS:
ADVANTAGES X DISADVANTAGES
ADVANTAGES
 Facilitate new product acceptance and provide
positive feedback to the company and parent
brand
 By setting up new expectations, extensions reduce
risk
 Easier to convince retailers to stock and promote a
product
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BRAND EXTENSIONS:
ADVANTAGES X DISADVANTAGES
ADVANTAGES
May reduce costs of introductory launch
campaign
Avoids expenditures of creating a new name,
packaging and labeling.
Customers who need a change can switch to a
different product type
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BRAND EXTENSIONS:
ADVANTAGES X DISADVANTAGES
DISADVANTAGES
 The brand risks losing its identity for one specific
product – Brand dilution
 Retailers reject many products for space matters.
 Worst scenario: The extension fails and harms the
image of the parent brand.
 Cannibal effect
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Multiple brands  multiple segments
Increasing shelf presence and retailer dependence in
the store
Attracting consumers seeking variety who may
otherwise have switched to another brand
Increasing internal competition within the firm
Yielding economies of scale in advertising, sales,
merchandising, and physical distribution
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The brand portfolio is the set of all brands and
brand lines a particular firm offers for sale in a
particular category or market segment.
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FLANKERS
Fighter brands are positioned with
respect to competitor's brands so
that more important brands can
retain their desired position.
CASH COWS
Some brands can still exist even if
they don’t sell too much because
they have a certain tradition.
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LOW-END ENTRY LEVEL
Low priced brand in a portfolio the role of this low priced produt
is to attract customers to the
brand franchise.
HIGH-END PRESTIGE
High priced brand in a portfolio - its
role is to add prestige and
credibility to the entire portfolio
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“The sum of lifetime values of all customers”
The aim of CRM is to produce high customer equity
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Both emphasize the importance of customer
loyalty and the notion that value is created by
having as many customers as possible pay as
high a price as possible.
But they emphasize different things...
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CUSTOMER EQUITY
– focuses on bottom line financial value
– limited guidance for go-to-market strategies
– ignores some of the important advantages
of creating a strong brand
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BRAND EQUITY
– tends to emphasize strategic issues in managing
brands and creating and leveraging brand
awareness and image with customers.
– With a focus on brands, however, managers don't
always develop detailed customer analyses
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There are no
brands without
customers and
no customers
without brands.
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1) WHAT IS A BRAND AND HOW DOES WORK?
Brand is a sign, a term, a name, a symbol, a
design or a combination of them, intended
to differentiate a product or service from
competitors.
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2) WHAT IS BRAND EQUITY?
Brand equity is the added value endowed on
products or services. It’s related to the
consumer’s reaction with respect to the
brand and the ability of a professional
marketer to create, maintain and enhance a
brand.
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3) HOW IS BRAND EQUITY BUILT, MEASURED,
AND MANAGED?
Brand Equity Built are crating the right brand knowledge
structures with the right consumers. Brand names arent’ the
only important brand element. Slogan are useful hooks.
Brands are nor built by advertising alone.
In order to manage the brand equity, companies need to
measure it. Measuring brand equity means measuring how
strong the brand is and how much the brand is worth.
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Managing brand equity is a process related to
the short-term and long-term view of
marketing actions. Marketing actions, as a
consequence, or essential to reinforce or
revitalize the brand, and keep expanding and
looking forward.
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4) WHAT ARE THE IMPORTANT DECISIONS IN
DEVELOPING A BRANDING STRATEGY?
Whether to create a new name for a product
and choose which brand names to use and
whether to introduce a brand extension or
not.
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1.
David A. Aaker. Measuring Brand Equity Across Products and Markets. California
Management Review, 1996
2.
Nitza Sasson and Idan Doron. Measuring Brand: The First Crucial Step Maximizing
Value Equity
3.
Brad VanAuken. The Blake Project.
Disponível em: www.brandingstrategyinsider.com
Acessado em: 16/10/10
4.
Michaela Mora. Measuring Brand Equity
Disponível em: www.relevantinsights.com
Acessado em: 16/10/10
5.
Jonathan Knowles, Wolff Olins. In Search of a Reliable Measure of Brand Equity.
Disponível em: www.zibs.com
Acessado em: 17/10/10
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6.
Interbrand
Disponível em: www.interbrand.com
Acessado em: 18/10/10
7. Marketing 3.0, Kotler, Editora Campus, São Paulo, 2010
8. http://www.cedet.com.br/index.php?/Tutoriais/Marketing/marcas-e-branding.html
9. http://www.hanover.com.br/press_release/press_cebit2010_19.htm
10. http://www.administradores.com.br/informe-se/artigos/se-a-marca-mappin-falidadesde-1999-vale-5-milhoes-quanto-vale-a-sua-marca/46484/
11. http://www.portaldebranding.com/v1/?p=658
12. VIEGAS, A. H., "Estratégia de Branding: gestão da unificação de marcas", São Paulo,
2009.
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