MARKETING
MANAGEMENT
7-8 Creating Brand
Equity
What is branding?
Why branding important?
What is brand equity?
• To understand Brand equity.
• To understand how to establish brand equity.
• To understand how branding works.
• To effectively formulate branding in a product
CREATING BRAND EQUITY
One of the most valuable intangible assets of
a firm is its brands, and it is incumbent on marketing to
properly manage their value. Building a strong brand is both an art and a
science. It requires careful planning, a deep long-term commitment, and
creatively designed and executed marketing. A strong brand commands
intense consumer loyalty—at its heart is a great product or service.
WHAT IS “BRAND”
American Marketing Association defines a brand as:
“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.
WHAT IS “BRAND”
A brand is thus a product or service whose dimensions
differentiate it in some way from other products or services
designed to satisfy the same need.
BRANDING
It is endowing products and services with the power of a
brand. It’s all about creating differences between
products.
Consumers must be convinced there are meaningful
differences among brands in the product or service
category.
BRAND EQUITY
• Is the added value endowed on products and
services
• The value that the brand has
It may be reflected in the way consumers think, feel,
and act with respect to the brand, as well as in the
prices, market share, and profitability the brand
commands.
Marty Neumeier
BRAND
“is a customer's gut feeling
about a product, a service
or a company
each customer has a
different brand of you
it's like reputation“
BRAND PROMISE
It is the marketer’s vision of what the brand must be and
do for consumers.
Consumers will decide, based on what they think and feel
about the brand, where (and how) they believe the brand
should go and grant permission (or not) to any marketing
action or program.
BRANDASSET VALUATOR
• Also called BAV
• Compares the brand equity of
thousands of brands across hundreds
of different categories
How is your business/ product/ service different from others?
BRAND EQUITY
• Is the added value endowed on products and
services
• The value that the brand has
How much do people know
about your brand?
How important is
brand awareness?
How does brand awareness put VALUE TO A BRAND?
If people are familiar with a product,
They are more likely to BUY.
4 Key Components of
Brand Equity
Energized differentiation measures the degree to which a brand is seen
as different from others, and its perceived momentum and leadership.
Relevance measures the appropriateness and breadth of a brand’s
appeal.
Esteem measures perceptions of quality and loyalty, or how well the
brand is regarded and respected.
Knowledge measures how aware and familiar consumers are with the
brand.
4 Key Components of
Brand Equity
4 Key Components of
Brand Equity
1 The initial choices for the brand elements or identities
making up the brand (brand names, URLs,
logos, symbols, characters, spokespeople, slogans,
jingles, packages, and signage)—
4 Key Components of
Brand Equity
2 The product and service and all accompanying
marketing activities and supporting
marketing programs
4 Key Components of
Brand Equity
3 Other associations indirectly transferred to the brand
by linking it to some other
entity (a person, place, or thing)—
BRAND ELEMENT
CHOICE CRITERIA
There are six criteria for choosing brand elements.
The first three—memorable, meaningful, and likable—are
“brand building.”
The latter three—transferable, adaptable, and protectable—
are “defensive” and help leverage and preserve brand equity
against challenges.
BRAND ELEMENT
CHOICE CRITERIA
1 Memorable—How easily do consumers recall and
recognize the brand element, and when—at both
purchase and consumption?
Short names such as Tide, Crest, and Puffs are
memorable brand elements.
BRAND ELEMENT
CHOICE CRITERIA
2 Meaningful—Is the brand element credible? Does it
suggest the corresponding category and a product
ingredient or the type of person who might use the brand?
Consider the inherent meaning in names such as DieHard
auto batteries, Mop & Glo floor wax, and Lean Cuisine
low-calorie frozen entrees.
BRAND ELEMENT
CHOICE CRITERIA
3 Likable—How aesthetically appealing is the brand
element?
A recent trend is for playful names
that also offer a readily available URL, like Flickr photo
sharing, Wakoopa social networking,
and Motorola’s ROKR and RAZR cell phones
BRAND ELEMENT
CHOICE CRITERIA
4 Transferable—Can the brand element introduce new
products in the same or different categories?
Does it add to brand equity across geographic boundaries
and market segments?
BRAND ELEMENT
CHOICE CRITERIA
5 Adaptable—How adaptable and updatable is the brand
element?
The face of Betty Crocker has received more than seven
makeovers in 87 years, and she doesn’t look a day over 35!
BRAND ELEMENT CHOICE
CRITERIA
6 Protectable—How legally protectable is the brand
element?
How competitively protectable?
Names that become synonymous with product
categories—such as Kleenex, Kitty Litter, Jell-O,
Scotch Tape,Xerox, and Fiberglass—should retain their
trademark rights and not become generic.
CHOOSING BRAND ELEMENTS
What is BRAND ELEMENT?
Brand elements are devices, which can be trademarked,
that identify and differentiate the brand.
Most strong brands employ multiple brand elements. Nike
has the distinctive “swoosh” logo, the empowering “Just
Do It” slogan, and the “Nike” name from the Greek winged
goddess of victory.
