Brand Management
Dr. Andrew Gustafson
Creighton University
College of Business Administration
c 2007
Objectives

To understand the meaning of a brand and
various modes of branding.
 To understand the concept of brand equity and
a framework for its enhancement.
 To identify and assess various methods of
corporate branding strategy.
 To understand the meaning of brand extensions
and their implications.
Brand Value
"Well-managed brands have extraordinary
economic value and are the most effective
and efficient creators of sustainable
wealth."
-- Rita Clifton in Brands and Branding
What is a Brand?

A brand is a “name, term, sign, symbol, or
design,or a combination of them,” intended to
identify one seller’s products as distinct from
those of other sellers seeking to satisfy the same
need.
Branding in Action
PBS Frontline Video: “The Persuaders”
http://www.pbs.org/wgbh/pages/frontline/shows/persuaders/view/
Customer-Based Brand Equity
 KK
describe it as “the differential effect
that brand knowledge has on consumer
response” to the marketing of that brand
and its products.
Building Brand Equity
 Based
on all brand-related contacts
whether marketer-initiated or not.
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1. Initial choices for brand elements.
2. The product, ancillary services, and other
accompanying marketing mix activities.
3. Other secondary associations.
Brand Elements illustrations
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Like a good neighbor,
State Farm is there
Just do it
Nothing runs like a
Deere
Save 15% or more in
15 minutes or less
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We try harder
We’ll pick you up
Nextel – Done
Zoom Zoom
I’m lovin’ it
This Bud’s for you
Always low prices
Brand Elements
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Recall that service products are intangible to the extent that they
cannot be touched, held, or seen before making a purchase
decision.
A common practice is to develop brand marks that “tangibilize”
brand benefits:
Secondary Associations
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Source: Kotler & Keller, A Framework for Marketing Management, 3rd Edition, 2007
.
Secondary Associations
“Jeep ® Trail Rated is an industry-leading
methodology to objectively measure and predict
off-road performance for all Jeep vehicles.” –
(Jeff Bell, Vice President Jeep, Daimler-Chrysler Corporation, September 2003)
 Launch included 6 new print ads and 4 new television spots to
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“communicate the stringent requirements that Jeep vehicles must
meet.”
Supported by Nevada Automotive Test Center
A Blueprint for Brand Equity
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Assetts
Brand Awareness
Brand Loyalty
Brand Relevance
Perceived Quality
Other Positive
Associations
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Liabilities
Dissatisfaction
Environmental
Disasters
Product Failures
Lawsuits / Boycotts
Questionable
Business Practices
Top 100 Global Brands in 2006

#1 $67.0 billion
#2 $56.9 billion
#3 $56.2 billion
#4 $48.9 billion

#5 $32.3 billion
#6 $30.1 billion
#7 $27.9 billion
#8 $27.8 billion
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#9 $27.5 billion #10 $21.8 billion
#11 $21.4 billion
#12 $ 21.3 billion
Branding Strategy
One of the great benefits of brand equity is the
ability to leverage the “goodwill” of customers
to grow your business…
Portfolio Considerations
Multiproduct Branding
Multibranding
Combination
Brand Leverage
Line Extension
Category Extension
Co-Branding
In-Depth: Multiproduct Branding
 Multiproduct
Branding (aka Blanket Family
Names) occurs when a single name
serves as the base brand name across all
product categories.
• Examples?
• Advantages? Disadvantages?
In-Depth: Multibranding
 Multibranding
(aka Individual Names or
Separate Family Names) occurs when a
company uses different brand names to
represent different products, product lines,
product categories, or even SBUs.
 Examples?
 Advantages? Disadvantages?
In-Depth: Combination
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A combination of branding strategies is used when a company
combines a corporate-wide (or parent brand) name with a sub-brand
name for a distinct product or line of products.
There are many variations of this, such as using model names or
numbers.
In-Depth: Brand Extensions

Line extensions are new same-branded products that allow for
expanding your offering in a product category that you already
serve.
Category extensions are new same-branded
products that allow for entry into a product
category that you do not currently serve.
Lessons About Successful Brands
Lesson #1: Brands Pay
 Brands
which place high importance on
managing the economic value of their
intangible assets, and primarily their
brands, consistently outperform basic
economic measures.
Lesson #2: Good Brands Listen
 The
best brands follow their stakeholders’
journeys so that they provide effective,
consistent and appropriate messaging
throughout the experience.
Lesson #3: Brands Anticipate
Having foresight helps companies make
informed choices about their brand and
frees leaders up to make bold moves in
the full knowledge of the implications.
Problems Facing Branding
 Since
1991, the number of brands on US
grocery store shelves has tripled.
 In
2003 the US Patent and Trademark
Office issued 140,000 trademarks 100,000 more than in 1983.
 The
average American sees 60 percent
more ad messages per day than in 1992
The Importance of Brands
"Of all the things that your company owns, brands
are far and away the most important and the
toughest. Founders die. Factories burn down.
Machinery wears out. Inventories get depleted.
Technology becomes obsolete. Brand loyalty is
the only sound foundation on which business
leaders can build enduring, profitable growth." --
--Jim Mullen
An Example: Sony

99.5 percent of people said they'd be willing to
pay more for a Sony. In 2004
 However, in 2000 Sony charged 44 percent
more for its DVD players than the average.
In 2004, Sony DVD players cost just 16 percent
more than the average.
 Although the price of Sony's most expensive
DVD player fell 60 percent between 1999 and
2003, CyberHome, maker of absurdly cheap
DVD players, has knocked off Sony to become
the biggest DVD-machine seller in America
Future of Branding
 Vibrant
Brands Require Regular
Maintenance and updating
 Older Brands which do not stay
contemporary will lose
 Cannot depend on customer loyalty in age
of consumer knowledge and skepticism
The End
Bibliography/Sources
 http://www.ourfishbowl.com/images/survey
s/Interbrand_BGB_2007.pdf