T.C.
ISTANBUL AYDIN UNIVERSITY
INSTITUTE OF GRADUATE STUDIES
BRAND EQUITY AT MCDONALD'S
TERM PROJECT
EYAD FAWZI KAMEL ALARENE
(Y.2012.150152)
Department of Business
Business Administration
PROJECT ADVISOR : Dr. Öğr. Üyesi MÜGE İRFANOĞLU
Table of Contents
Table of Contents........................................................................................................2
ABSTRACT.................................................................................................................3
I. LITERATURE REVIEW.......................................................................................4
II. THE BRAND CONCEPT.....................................................................................4
A. Introduction............................................................................................................4
B. Brand Definition.....................................................................................................5
C. Development of The Brand...................................................................................6
D. General Concept about The Brand......................................................................6
1. Introduction.............................................................................................................6
2. Brand items..............................................................................................................7
3. Brand identity..........................................................................................................7
4. Brand personality....................................................................................................8
5. Brand awareness.....................................................................................................9
6. Brand loyalty...........................................................................................................9
. III. The brand of McDonald's company...............................................................11
A. McDonald's Brand Review..................................................................................11
1.Company history....................................................................................................11
2.the control:..............................................................................................................12
3.Consecutive successes:...........................................................................................12
4.Logo.........................................................................................................................13
B.McDonald’s Mission & Vision.............................................................................13
1.McDonald’s Corporate Mission............................................................................13
2.McDonald’s Corporate Vision..............................................................................14
IV. Evaluate McDonald's brand equity strategies from a Kellers(CBBE) perspective 15
1: Brand identity.......................................................................................................15
2 Meaning of the brand............................................................................................15
* Brand images:.........................................................................................................16
3: Brand response.....................................................................................................16
4: Brand resonance...................................................................................................16
V. CONCLUSION.....................................................................................................17
VI. REFERENCES...................................................................................................18
2
BRAND EQUITY AT MCDONALD'S
ABSTRACT
McDonald's is one of the most successful restaurants around the world, as it has developed
effective management strategies and expanded globally to enter the markets, and it is the largest
fast food chain in the world.
Customer satisfaction is also crucial to business success. I have researched business and
marketing since ancient times. If customer satisfaction is achieved, brand loyalty is the reason for
the company's success and expansion into the world. For this reason, there has also been
extensive research on brand loyalty in the past few decades. The aim of the research is to
identify, identify, and motivate customer satisfaction and brand loyalty
Keywords: Branding, Strategies, Marketing, McDonald‟s
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I. LITERATURE REVIEW
Brands are complicated entities; they are not living things, but are given human qualities, such as
personalities by brand managers. When brand management is successful, brands are thus
personalized and perceived by consumers as more than inanimate phenomena, but rather as a
curiosity with which one can develop a relationship (Keller and Lehmann, 2006; Su and Tong,
2015; Veloutsou, 2015). By attributing human qualities to a brand, brand personality ―is
something to which the consumer can relate‖ (Gunawardane, 2015: 102). As argued by Su and
Tong (2015: 124),
Brand personality indicates consumers‘ perceptions of the personality traits of brands and further
helps create and build meaningful consumer-brand relationships. A well-established brand
personality can help leverage a set of unique and favorable brand images and thus enhance the
value of brand equity.
Building brand personality is thus an essential marketing process since brand personalities help
develop personal relationships between brands and consumers. When such relationships between
brands and consumers exist, loyalty increases (Su and Tong, 2015). To build positive
relationships with customers, brand managers must develop such ―marketing strategies
effectively as a means to satisfy customer needs and build customer.
II. THE BRAND CONCEPT
A. Introduction
The concept of brand is used with many different terms in many areas. The most well-
known use was in the mid-nineteenth century by owners of large animal herds.
In the herd going from southwest to Midwest, the animal the stigma of the owners to make
a difference to distinguish their animals from other animals is the concept of 'brand' formed
the root (Tosun, 2014). This difference is still seen on all brands today.
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When a detailed research is made, there are many definitions about branding and brand.
According to Taşkın and Akat (2012), there are two main reasons for the wide variety of
definitions of the brand concept in the branding literature.
The first of these is the period of time when the brand or branding issue is dealt with, and
the second is the perspective of the business stakeholder who defines the brand. According
to many researchers, it can be said that the existence of different approaches explaining the
brand concept is in a sense due to the existence of different philosophies and different
perspectives of the stakeholders. For example, the concept of brand can be defined from a
consumer perspective or a business perspective.
As a conceptual definition, when the brand is examined with several different approaches;
It appears as a set of combinations that promote the products or services of companies
making production or sales, distinguish them from their competitors, and aim to distinguish
them from the competitors in the minds of the consumer with their name, symbol, logo,
colors and image.
B. Brand Definition
As mentioned, while referring to the concept of brand, in the literature, the brand is defined
many times with different perspectives and approaches. Some define the brand as
consumer-oriented, while others define it from a business perspective.
Branding has existed for centuries as a means to differentiate the products of a single
manufacturer from those of the others (Keller, 2012).
The ability to qualify a product as a brand consists of the presentation of the product, the
state that you can think of and the visuals that remind itself, to its slogan. Therefore, the
brand is the easiest way for consumers to recognize a product. It helps them not to avoid
the product as long as they are satisfied with the product and meet their needs.
According to the American Marketing Association (AMA), a brand is a “name, term, sign,
symbol, or design, or a combination of them, intended to identify the goods and services of
one seller or group of sellers and to differentiate them from those of competition.”
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The brand promises the buyer the commitment to quality given and realized by the
manufacturer; guarantees the continuity of quality. This is like the signature of a contract
between a manufacturer and a user.
C. Development of The Brand
The brand term was used often from the specialization literature, nevertheless the provided
meanings have varied eventually. The brand has a long conceptual development from the past to
the present. The concept of brand emerges as a result of some studies.
Brands and branding processes are as ancient as human civilisation, first under "proto-brands" or
primal brands (Moore and Reid, 2008), becoming integrated to the sense that we offer today to
brands (Yang et al., 2012), accompanied by their transition "with the birth of mass marketing in
the 1870s when packaged products became popular" (Yang et al., 2012).
D. General Concept about The Brand
1. Introduction
Today, products and services that are similar to each other are increasing day by day in the
production market where there is a lot of competition. When this proliferation combines the
elements that create a brand and differentiate the brand from its competitors, various
concepts related to the brand emerge. In this context, all concepts related to the brand that
will affect consumers' preference for the brand will be examined in detail.
While describing the brand definitively, it is associated with the emotional and symbolic
values beyond the functional elements that the brand identities created with the aim of
differentiating from the competitors. They play an important role in reflecting the identity
of each brand consumer. Now, individuals are classified according to the brands they use to
which group or class they belong to. In this direction, brands need concepts that show
various sensory data in order to increase the awareness of the brand and protect its image.
Brand awareness can be achieved with many strategies. These concepts constitute these
strategies. Brand components, which will be discussed in detail below, constitute the
indispensable, recognizable elements of brands. These elements, which are of great
importance in brand communication, are important to provide a lot of added value to the
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brand when developed with the right brand management. The first of these is the facts such
as the name, logo, emblem and identity of the brand within the scope of the elements of the
brand. After that; the brand's image, positioning, brand loyalty, loyalty, etc.
2. Brand items
The brand's name, slogan, logo, design and spiritual facts under the title of the elements of
the brand, which are the main communication components of the brand, also constitute the
elements of the brand.
Visual identity is the most important element that creates a brand and enables it to be
perceived and placed in the brains. Aristotle's statement that "all perceptions start with the
eye" is especially true in terms of brand and corporate identity. The visual minds of people,
who are also examined psychologically, can move faster. Pictures can be remembered
continuously because they have quite different effects compared to words (Schmitt and
Simonson, 1997).
Most of the time, it is the design forces that develop the brand and make the brand a world
brand by creating brand awareness. Visual identity is the most important element that
creates the brand and enables it to be perceived in the brains. It is the logo / emblem of the
company, all communication and the colors and shapes used in the designs in the
promotional tools are the whole, it is a "dress" worn by the company / brand.
A brand must have such a corporate identity that it must conform to the character of the
company, comply with the product / service, and it should be added and open to developments
(Ar, 2004).
3. Brand identity
According to the opinions of Kotler and Armstorng (2004); Creating a strong and
meaningful brand identity provides the company with various gains and differentiation
compared to its competitors. It also provides consumers with effective reasons to buy; it
inspires consistency and confidence. It changes the consumer's perception of the product. It
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provides solid foundations for brand dissemination and provides the firm with a strong
positioning in the market. There are examples in the world where we can observe these
advantages provided by brand identity.
Brand identity is considered as a basic concept in the holistic structuring / management of
the brand. Brand identity is a framework that helps determine the meaning, orientation and
purpose for the brand. The concept of brand identity encompasses all aspects of the brand,
giving importance to the whole rather than the parts related to the brand. Brand identity can
be considered as a basic concept in the development of the brand in a competitive
environment and achieving profitable growth. (Slade-Brooking, 2016)
Brand identity includes all kinds of features of a product created consciously or
unconsciously. After an identity is strategically planned and implemented by marketers,
when it reaches the target audience, the image of the brand in the eyes of the consumer is
formed.
The message of each brand is filtered in the mind of the consumer. What it has established
in the brain of the consumer is the definition of identity and what the brand creates. In
order to create a brand identity, the elements that make up that identity should not conflict
with each other. Consumers are more connected to the brand with the trust they have, and
they realize more purchases and recommendations (Wheeler, 2012).
4. Brand personality
Personality is the set of characteristics that make one person different from another. Today,
brand personalities can be examined like human characters. Because brands can be
considered as living entities that attract our attention with certain qualities, establish
emotional and logical bonds, and communicate with us, as in the character traits of people.
Brand personality affects how people feel about the brand, not what they think the brand is
or does. Consumers generally assign human personalities to brands. Brand personality can
be created directly or indirectly through advertising. For this, human characteristics are
transferred to the brand and indirectly, personality is removed from the meaning of the
product. For example, if the benefit of the brand is “success”, brand personality is
expressed as “successful” or “confident”. It is the consumer who will establish a
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relationship between brand personality and product. When a connection is established
between this personality and his own personality, a consumer-brand relationship will occur.
Advertising's success in creating brand personality and image is related to the consumer's
perception and interpretation of the message. Because, if the message is not understood or
cannot be understood as planned, the brand personality and image to be expressed will not
be formed (Ak, 2009).
Brand personality is the individual attributes or characteristics that consumers may
attribute to a brand. We may calculate it in a number of ways. Perhaps the best and most
straightforward way to achieve this is to submit open-ended answers to a probe such as the
following:
If the brand was to come alive as a human, what would it be like? What would it have
done? Where does he live? What's it going to wear? Who would talk to if it were going to a
party (and what would it be all about)? (Keller, 2012).
5. Brand awareness
Recent advertising research proves that brand awareness isn't just a mere cognitive step. It's
20 how come branding so strategic? in fact connected with lots of valuable image
measurements. awareness conveys a reassuring message: though it's quantified at the
human level, fresh awareness is actually in reality a collective occurrence. If a new is
famous, every person knows it really is understood.
6. Brand loyalty
Brand loyalty is at the core of every brand's value. Because loyalty once achieved becomes
permanent. It is difficult and costly for a competitor to break this commitment. Therefore,
one of the goals in brand development is to create the basis of customer relationship,
increasing the size and density of each engagement segment by stabilizing it over time and
making it as rich, deep and expressive as possible (Aaker, 2014).
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Consumers display a loyal attitude towards the brand that they bought and reached a certain
satisfaction, as long as they do not encounter a problem in terms of the quality and prestige
of the brand. The reason for this is that the consumer does not want to change a product he
has tried and trusted before in order to reduce the risk to be faced. When consumers
become firmly attached to a brand, other rival brands will become commonplace and their
value in the eyes of the consumer may decrease (Gökalp, 2009).
This emotional bond, which is the basis of brand loyalty, forms the basis of the judgments
and beliefs about the brand in question and makes it difficult to change. In this respect,
brand loyalty is among the basic components of brand value.
Brand loyalty is not only the consumer purchasing the same brand in the future, but also
establishing a psychological bond with the brand and showing a behavioral tendency (Selvi
and Temeloğlu, 2008).
After the sale, which is the ultimate goal that brands want to achieve, their most important
goal is brand loyalty. Because the sale can be done once, but the main thing is that the
customer desires to buy the product or service again. This only occurs when all processes
related to the brand can be carried out positively. Brands that can successfully execute all
processes from pre-production to after-sales (including communication and all the values of
the brand) can win loyal customers.
..........Source: Aaker, D. (1991). Managing Brand Equtiy, New York: The Free Press: 40
. III. The brand of McDonald's company
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A. McDonald's Brand Review
McDonald's Corporation is an American food and fast food company that has spread all
over the world. It was founded May 15, 1940, and is one of the largest chain of fast food
restaurants in the world.
The main food that he prepares is burgers of different types and sizes, French fries, some
breakfast meals, soft drinks, milk and sweets, ice cream. Newly, it serves healthy food,
such as salads. The most popular items on its list are the McChicken sandwich, the Big
Mac sandwich, the MacRoyal sandwich, and more. It also offers a sandwich called Mac
Arabia prepared with Arabic ingredients and style. It provides a children's meal with a
gift (toy) that is often a favorite cartoon character for children.
1.Company history
Brothers Richard and Maurice McDonald opened the first McDonald's restaurant in 1938
in San Bernardino, California on May 15, 1940. The brothers introduced the "Speedee
Service System" in 1948, and put into widespread use the principles of the modern fast
food restaurant their predecessor White Castle put into practice more than before. Two
decades. [Citation needed] The original McDonald's logo was a chef hat over a
hamburger referred to as Speedee, in 1962 Golden Arches replaced Speedee as the global
emblem. The logo, Clown Ronald MacDonald, was introduced in 1965. It appeared in
ads to target their children's audience.
On May 4, 1961, McDonald's first applied for an American trademark called
"McDonald's" with the description Drive-In Restaurant Services, which continues to be
renewed. By September 13, McDonald's, at the direction of Ray Kroc, applied to
trademark a new logo - the overlapping double-arc "M". But before the double arches,
McDonald's used a single arc to engineer their buildings. Although the "Golden Arches"
logo appeared in various variations, this version was not used until November 18, 1968,
when the company favored an American brand.
The current company traces back to its founding of franchise businessman Ray Kroc on
April 15, 1955. This was in fact the ninth McDonald's restaurant to open overall,
although that site was destroyed and rebuilt in 1984. In 1961, Crook bought McDonald's
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Corporation shares in a corporation and the company begins its spread around the world.
Kroc was registered as a strong business partner, which drove the MacDonald brothers
out of the industry.
2.the control:
The relationship between them began to get tense as a result of the McDonalds brothers
’rejection of many fateful decisions regarding the expansion of the restaurant business, and in the
end, Crook was able to control the McDonald’s brand name, which made the two brothers agree
to sell it to him in 1961 for $ 2.7 million. Crooke continued his expansion and set up branches all
over the states until he had more than 200 restaurants in 1960!
3.Consecutive successes:
And Ray Kroc developed an innovative plan in managing restaurants, supervising how to clean
the restaurant and paying attention to the smallest details, and this is the secret of his success in
managing McDonald's restaurants.
The "m" appeared to be a symbol for the company in 1962, while the smiling face of the
"McDonald's" trademark appeared in 1963 in the form of a clown named "Ronald McDonald".
In 1965 Crook put his company's shares on the stock exchange, and it was the first company in
the field of fast food to offer its shares on the United States Stock Exchange, which made him
get large liquidity that helped him more to continue to expand and spread significantly.
The emergence of distinguished products continued, with the appearance of "Big Mac" in 1968,
"Egg McMaven" in 1973, "Happy Mills" in 1979, and "Chicken McNuggets" in 1983
McDonald's Corporation now has more than 30,000 fast food outlets in 121 countries and
employs more than 500,000 workers
Time magazine listed him among the 100 most important people of the twentieth century. He
died in 1984 of heart failure at the age of 81
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4.Logo
The company logos varied from its inception to the present day.
2003 - 2006 Company logo from Company logo 1960
1968 to 2003 to 1968
B.McDonald’s Mission & Vision
McDonald’s Corporation adjusts its corporate mission and vision statements to respond to
changes in the global food service industry environment. As the biggest fast food restaurant
chain in the world, the company considers its corporate vision and mission statements as
essential policy and strategic management tools to ensure continuous growth. A firm’s corporate
mission statement sets the purpose and related activities of the business. In this case,
McDonald’s mission statement establishes the company as an influential favorite food service
destination. In contrast, a firm’s corporate vision statement sets the long-term aims of the
business. McDonald’s vision statement pushes the company to achieve growth and improvement.
1.McDonald’s Corporate Mission
McDonald's Corporation mission is "to be our customers' preferred place to eat and drink". This
mission statement highlights the importance of customers as a business focus, while maintaining
the company as a primary influence on food and beverage purchasing decisions. A McDonald's
corporate mission statement contains the following key components:
Favorite place for customers to eat and drink
The preferred way for customers to eat and drink
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McDonald's Corporation emphasizes in its mission statement to become the company of choice
for target customers. Based on this aspect, the company considers customer preferences as a
major determinant of its business activity. For example, in order to become a favorite,
McDonald's is developing its menu and recipes to meet consumers' preferences regarding fast
food products such as burgers and french fries. The components of a corporate mission statement
focus on two points: becoming the preferred method and becoming the preferred method. As a
fast food service company, the company develops restaurant designs and layouts to improve
productivity and the customer experience
Also as the menu has evolved, the company's restaurants and franchise locations have become
the favorite places to eat and drink. The "preferred method" component of the corporate mission
statement clarifies that the company aims to influence the way we eat and drink. This point
presents challenges for companies in terms of effectively influencing people's behavior.
2.McDonald’s Corporate Vision
McDonald’s corporate vision is “to move with velocity to drive profitable growth and become an
even better McDonald’s serving more customers delicious food each day around the world.” This
statement is included in the growth plan that the company introduced in 2017. The company’s
previous vision statement was “Our overall vision is for McDonald’s to become a modern,
progressive burger company delivering a contemporary customer experience.” The following are
the main components of the company’s new corporate vision statement:
1. Move with velocity to drive profitable growth
2. Become an even better McDonald’s
3. Serve more customers delicious food each day around the world
The first and third components of McDonald's vision statement show that the business aims to
grow and expand its operations. This aim entails opening more locations and improving
operational efficiency to improve profit margins. support the growth and expansion objective
embodied in this corporate vision statement. The second component focuses on improving the
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business. The company does not specify the type of improvement stated in the corporate vision.
However, it is realistic that McDonald’s aims to implement comprehensive improvements of its
business to include various aspects, such as product development, marketing, franchising, and
human resource development. In following this corporate vision statement, the company expects
growth and an overall enhancement of the various areas of the fast-food restaurant chain
business.
IV. Evaluate McDonald's brand equity strategies from a Kellers(CBBE) perspective
1: Brand identity
McDonald's Corporation views its customers as the first priority group of stakeholders. The
company is constantly improving its products and services according to the desires and tastes of
rapidly changing consumers.
And the McDollens way, when customers look at the brand, they go to it automatically. They
have a unique and distinctive shape and image of the McDonald’s brand, in terms of the
attractive shape and designs.
The study indicated that young people were among the major influences in the company's
decisions and the process of making it. This led to the introduction of the world's first Happy
Meal, a mix of kid-friendly meals including a free game place McDonald's Smack
2 Meaning of the brand
* Brand performance: We help create a future of good, safe and sustainable food because of
the way we produce our food and where it comes from for our customers, communities and the
environment. This includes sourcing high-quality ingredients in responsible ways and supporting
farming communities. When it comes to nutrition, we focus on families and children, as we
believe we can achieve the greatest impact. “We want people to leave our restaurants feeling
good about eating our food - not only because it is delicious, but also source high-quality
ingredients and gives customers choices.
It has increased sales volumes and helped McDonald's sell high quality hamburgers at a cheaper
price than other competitors. It is accessible to all segments of society.
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* Brand images: Behind the golden arches we have a global community of crew, farmers,
suppliers, franchisees and the countless others who make up our brand identity.
Consumers continue to prioritize brand confidence, great taste and value as the main reasons for
choosing McDonald's, and have designed the store to improve the quality of everything that
customers see, touch, hear, smell and taste.
Our vision is to make McDonald's the leading multi-channel restaurant in all of our markets. We
will make our customers' experiences faster and easier through all the ways in which they order
and receive our delicious food.
McDonnells works to protect the environment greatly and was the first global restaurant
company to set a scientific goal to reduce emissions in our restaurants, offices and across our
supply chain. We are also testing new packaging and recycling solutions around the world to
help us reduce packaging. We have set an ambitious goal to eliminate deforestation from our
global supply chain by 2030.
3: Brand response
The keys to McDonald's success are its focus on customer satisfaction; employees are
encouraged to be friendly and to provide 'service with a smile'. Focusing on customer
satisfaction, McDonald's does a great job of creating recognizable images. McDonald's golden
arches are said to be the most famous symbol in the world. Also McDonald's uses catchy phrases
and messages in their advertisements like their brand at this time it will be “I love it” and weave
that through their ads. The main thing for McDonald's is that it focuses on creating memories for
customers. The right of that is great confidence towards customers and positive feelings for the
company.
4: Brand resonance
McDonald's became a pioneer early in its rapid focus on customer service and responding
directly to the use of marketing techniques early in its development.
Cleanliness The chances of a loyal customer turning out to be a loyal brand are high if they leave
the building with a positive service experience about the brand.
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The MacDonald brothers note that one of the common concerns of most of their customers is
food hygiene and safety. They felt it was important that these emotions not trigger any of the
customer's touch points - they made efforts to maintain high standards of hygiene and cleanliness
in and around the restaurant.
They have ensured that the employee's clothing will also reflect cleanliness and hygiene. They
motivated employees to adhere to sanitary standards at all times. Customers were allowed to
view the kitchen and support areas where food was being prepared and processed.
McDonald's understands the importance of both consumers and employees. He understands the
fact that happy workers can serve properly and drive happy customers.
V. CONCLUSION
I have been researching business and marketing since ancient times. If customer satisfaction is
achieved, brand loyalty is the reason for the company's success and expansion into the world. For
this reason, there has also been extensive research on brand loyalty in the past few decades. The
aim of the research is to identify, identify, and motivate customer satisfaction and brand loyalty.
Today, products and services that are similar to each other are increasing day by day in the
production market where there is a lot of competition. When this diffusion combines the
elements that create a brand and differentiate the brand from its competitors, various concepts
related to the brand emerge. In this context, all the concepts related to the brand that will
influence consumers' preference for the brand have been examined in detail.
The goal of brand management, as the most creative part of the marketing practice, is to guide or
inform market participants of the details of the application of marketing in the growing service,
and to demonstrate how to apply the marketing philosophy of business thinking and execution.
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This part related to McDonald's was based on the way it cared about the brand and the way it
worked according to the strategies and objectives based on increasing its brand and becoming
one of the best brands in the world.
It also covers the last part of the company's cascading strategies, especially with extensive
research and development, to satisfy the tastes of locals in every country in which it operates. Its
patrons in all its major divisions set prices around the world in all kinds of currencies, making its
food affordable for customers of all denominations. The company's challenges of providing
healthy foods to its customers have contributed to its financial success, thus empowering loyal
consumers.
Eating at McDonald's restaurants has become a luxury, especially among the middle class, who
feel strong that they are also able to dine in quality restaurants. However, as the company
continues to stabilize its new environments, it will slowly satisfy the needs of the lower class,
and the strategies developed by its experts allow the company to increase revenue, quality and
achieve consumer satisfaction.
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URL-1 https://www.alqiyady.com
URL-2 https://corporate.mcdonalds.com
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