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STRATEGIC BRAND MANAGEMENT


BUILDING, MEASURING, AND MANAGING
BRAND EQUITY
Kevin Lane Keller
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What is a Brand?
American Marketing Associations definition
A brand is a name, term, sign, symbol, or
design which is intended to identify the goods or
services of one seller or group of sellers and to
differentiate them from those of competitors.
Attributes that identify the brand are called Brand
Elements (based on people, place, objects, animals,
etc.)
Practicing managers define brands as more than that.
This distinction is important since it can lead to confusion.
What is a Brand?
Brand versus Product
Product is anything that can be offered to a market for
attention, acquisition, use or consumption that may
satisfy a need or a want (goods, services, retail
store, person, organization, idea)
Kotler defines 5 levels of a product
1. Core benefit level fundamental need or want that is
satisfied
2. Generic product level basic version attributes
necessary for functioning (stripped down level)
3. Expected product level what customers normally
expect
4. Augmented product level additional attributes, benefits
that distinguish it from competition
5. Potential product level all transformation that it might
undergo in the future
What is a Brand?
A Brand is therefore a Product that also has dimensions
that differentiates it from other products designed to
satisfy the same need (competition)
Differences may be -
Rational and tangible related to product performance (3M,
Sony, Gillette)
Symbolic, emotional, intangible related to what the brand
represents (Coca Cola, Calvin Kline, Marlboro)
What distinguishes a brand from a commodity gives it
equity - the sum total of consumer perceptions and
feelings about how it performs (3M, Sony, Gillette)
The name and what it stands for
The company associated with the brand
New Concept of Brand Equity (BE)
BE is defined differently by many but there is a
point of consensus. It is agreed that -
BE relates to marketing effects that are
uniquely attributable to the brand
BE relates to the fact that different outcomes
result in the marketing of a product or service
because of its brand name, as compared to if the
same product or service did not have that name.
BE concept in marketing - stresses the
importance of the brand in marketing
strategies.
New Concept of Brand Equity
There is also agreement about - Branding is about
creating differences
Differences in outcome - arise from added value
endowed to a product as a result of past marketing
activities for the brand
This value can be created for a brand in many ways
Brand value can be exploited to benefit of the firm in
many different ways
BE provides the common denominator for
interpreting marketing strategies and assessing the
value of the brand
Why Brands Matters?
Brand Value created translates to financial profits for
the firm as:
Creates perceived differences through branding
Develops a loyal consumer franchise
The brand is an intangible valued asset that needs
to be handled carefully.
Why Brands Matter
Customers
Risk reducer
Search cost reducer
Signal of quality
Symbolic device for self expression
Promise, bond, pact, with maker of the product
Means of identification of source of product for assignment of
responsibility to product maker
Manufacturer
Means of identification for handling, tracing
Signal of quality level to satisfied customers
Competitive advantage
Financial return
Legal protection of unique features
Why Brands Matter
It creates a relationship between brand and consumer
a bond / pact. trust and loyalty and in return .
expect consistent product performance, appropriate price,
distribution and other actions
Brands take on a special meaning and change the
experience and perception of a product that leads to
greater satisfaction
Customers with past experience learn more about the
brand
The advantages
Lowers search cost internally and externally
The value may not be only functional in nature
They are symbolic devices allowing them to project their self image
Extremely important with credence goods to signal quality
Brands reduce risk particularly in BtoB settings
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Benefits of
Customer-Based Brand Equity
Branding is a powerful means of securing a competitive advantage
Brand experience can last for years and cannot be duplicated
Enjoy greater brand loyalty, usage, and affinity
Predictability and security of demand
Command larger price premiums on a regular basis, also during A&Ms
Creates entry barriers for others
Receive greater trade cooperation & support
Increase marketing communication effectiveness
Yield licensing opportunities
Support brand extensions
Anything Can Be Branded
Branding is possible for -
B to B products
High-tech products
Services
Retailers and Distributors
Online products and services
People and Organizations
Sports
Arts, Entertainment
Geographic location
Ideas and causes
Anything Can Be Branded
To brand a product what needs to be done is -
Consumer has to be
Taught to identify the brand label, name and
other elements
Learn the brand meaning - functional, emotional
and symbolical
Know the brand difference from other similar
product brands (performance / image and non-
product related considerations)
Commodities have been branded atta, salt
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Determinants of
Customer-Based Brand Equity
Customer is aware of and familiar with the brand
Customer holds some strong, favorable, and
unique brand associations in memory
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The Concept of CBBE
and Marketing
Customer-based brand equity - creates
Differential effect of brand because of
Customer brand knowledgewhich generates
Customer response to brand marketing
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Brand Equity and Marketing
Management
BE concept stresses - importance of the
brand in marketing strategies
BE is defined in terms of the marketing
effects uniquely attributable to the brand.
Brand equity relates to the fact that different outcomes
result in the marketing of a product or service because
of its brand name, as compared to if the same product
or service did not have that name.
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Building
Customer-Based Brand Equity
Brand knowledge structures depend on . . .
The initial choices for the brand elements
The supporting marketing program and the manner
by which the brand is integrated into it
Other associations indirectly transferred to the
brand by linking it to some other entities
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The Key to Successful Branding
For branding strategies to be successful
Consumers must be convinced that there are
meaningful differences among brands
Consumer must not think that all brands in the
category are the same.
PERCEPTION = VALUE
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Customer-Based Brand Equity
as a Bridge
CBBE represents the added value
endowed to a product as a result of past
investments in the marketing of a brand.
CBBE therfore provides direction and
focus to future marketing activities
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Strategic Brand Management
Strategic brand management involves design and
implementation of marketing programs and activities
to build,
measure,
manage BE
Strategic brand management process involves four
main steps:
1) Identify and establish brand positioning and values
2) Plan and implement brand marketing programs
3) Measure and interpret brand performance
4) Grow and sustain BE
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Strategic Brand Management
Process
Mental maps
Competitive frame of reference
Points-of-parity and points-of-difference
Core brand values
Brand mantra
Mixing and matching of brand elements
Integrating brand marketing activities
Leveraging of secondary associations
Brand Value Chain
Brand audits
Brand tracking
Brand equity management system
Brand-product matrix
Brand portfolios and hierarchies
Brand expansion strategies
Brand reinforcement and revitalization
KEY CONCEPTS STEPS
Grow and Sustain
Brand Equity
Identify and Establish
Brand Positioning and Values
Plan and Implement
Brand Marketing Programs
Measure and Interpret
Brand Performance
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New Branding Challenges
Brands are important as ever
Consumer need for simplification
Consumer need for risk reduction
Brand management is as difficult as ever
Savvy consumers
Increased competition
Decreased effectiveness of traditional marketing
tools and emergence of new marketing tools
Complex brand and product portfolios
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The Customer/Brand Challenge
In this difficult environment, marketers must
have a keen understanding of:
customers
brands
the relationship between the two