MARKETING MANAGEMENT
12th edition
9
Creating
Brand Equity
Kotler
Keller
Chapter Questions
• What is a brand and how does branding
work?
• What is brand equity?
• How is brand equity built, measured, and
managed?
• What are the important decisions in
developing a branding strategy?
9-2
Google - 2002 Brand of the Year
9-3
Brand
A name, term, sign, symbol
or design, or a combination of them,
intended to identify the goods
or services of one seller or group
of sellers and to differentiate
them from those of competitors.
9-4
Attributes of Strong Brands
• Excels at delivering
desired benefits
• Stays relevant
• Priced to meet
perceptions of value
• Positioned properly
• Communicates
consistent brand
messages
• Well-designed brand
hierarchy
• Uses multiple
marketing activities
• Understands
consumer-brand
relationship
• Supported by
organization
• Monitors sources of
brand equity
9-5
The Role of Brands
Identify the maker
Simplify product handling
Organize accounting
Offer legal protection
9-6
The Role of Brands
Signify quality
Create barriers to entry
Serve as a competitive
advantage
Secure price premium
9-7
Branding
Endowing products and services
with the power of a brand.
9-8
Brand Equity
The differential effect that brand
knowledge has on consumer
response to the
marketing of that brand.
9-9
Brand Knowledge
Thoughts
Feelings
Knowledge
Images
Beliefs
Experiences
9-10
Brand Associations
Strong
Unique
Favorable
9-11
Marketing Advantages of Strong Brands
• Improved perceptions of
product performance
• Greater loyalty
• Less vulnerable to
competition
• Less vulnerable to crises
• Larger margins
• Inelastic consumer
response to price
increases
• Elastic consumer
response to price
decreases
• Greater trade
cooperation
• Increase in
effectiveness of IMC
• Licensing
opportunities
• Brand extension
opportunities
9-12
Branding a Place
9-13
Brand Promise
The marketer’s vision of what
the brand must be and do for
Consumers.
9-14
The Virgin Brand
9-15
Brand Equity Models
• Brand Asset Valuator
• Aaker Model
• BRANDZ
• Brand Resonance
9-16
Brand Asset Valuator (BAV)
Brand Equity
Knowledge
Esteem
Relevance
Differentiation
9-17
Figure 9.1 BAV Power Grid
9-18
Aaker Model – Brand Identity
Brand-as-product
Brand-as-organization
Brand-as-person
Brand-as-symbol
9-19
Aaker Model – Brand Assets
Brand
loyalty
Brand
associations
Proprietary
assets
Brand
awareness
Perceived
quality
9-20
The BRANDZ Model
Bonding
Advantage
Performance
Relevance
Presence
9-21
Figure 9.2 Brand Resonance Pyramid
9-22
Drivers of Brand Equity
Brand Elements
Marketing Activities
Meaning Transference
9-23
Brand Elements
Brand
names
Slogans
URLs
Elements
Logos
Characters
Symbols
9-24
Brand Elements
9-25
Brand Element Choice Criteria
• Memorable
• Meaningful
• Likeability
• Transferable
• Adaptable
• Protectible
9-26
The cupped
hands are
an element
of Allstate’s
brand
9-27
Slogans
• Like a good neighbor,
State Farm is there
• Just do it
• Nothing runs like a
Deere
• Help is just around the
corner
• Save 15% or more in
15 minutes or less
•
•
•
•
•
•
•
•
We try harder
We’ll pick you up
Nextel – Done
Zoom Zoom
I’m lovin’ it
Innovation at work
This Bud’s for you
Always low prices
9-28
Designing Holistic Marketing
Activities
Personalization
Integration
Internalization
9-29
Figure 9.3 Secondary Sources of
Brand Knowledge
9-30
Measuring Brand Equity
Brand Audits
Brand Tracking
Brand Valuation
9-31
Table 9.2 The 10 Most Valuable Brands
Brand
2004 Brand Value (Billions)
Coca-Cola
Microsoft
IBM
GE
$67.39
$61.37
$53.79
$44.11
Intel
Disney
McDonald’s
$33.50
$27.11
$25.00
Nokia
Toyota
Marlboro
$24.04
$22.67
$22.13
9-32
Interbrand’s Brand Equity Formula
Brand earnings
• Brand sales
• Costs of sales
• Marketing costs
• Overhead expenses
• Remuneration of
capital charge
• Taxation
Brand strength
• Leadership (25%)
• Stability (15%)
• Market (10%)
• Geographic spread
(25%)
• Trend (10%)
• Support (10%)
• Protection (5%)
9-33
Bucky Lasek for Campbell’s Soup
at Hand
9-34
Managing Brand Equity
Brand Reinforcement
Brand Revitalization
Brand Crises
9-35
Surviving a Brand Crisis
9-36
Devising a Branding Strategy
Develop new brand
elements
Apply existing brand
elements
Use a combination of
old and new
9-37
Branding Terms
•
•
•
•
•
•
Brand line
Brand mix
Brand extension
Sub-brand
Parent brand
Family brand
•
•
•
•
•
•
Line extension
Category extension
Branded variants
Licensed product
Brand dilution
Brand portfolio
9-38
Brand Naming
Individual names
Blanket family names
Separate family names
Corporate nameindividual name combo
9-39
Crest Whitestrips
9-40
Brand Roles in a Brand Portfolio
Flankers
Cash Cows
Low-end
Entry-level
High-end
Prestige
9-41
Marketing Debate
 Are brand extensions good or bad?
Take a position:
1. Brand extensions endanger brands.
2. Brand extensions are an important
brand-growth strategy.
9-42
Marketing Discussion
 How can you relate the different
models of brand equity? How are
they similar? Different? Can you
construct a model that incorporates
the best of each?
9-43