STRATEGIC BRAND MANAGEMENT

BUILDING, MEASURING, AND MANAGING

BRAND EQUITY
Kevin Lane Keller

Chapter 1

Brands and Brand Management

What is a Brand?
A brand is 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. (American Marketing Association)
However, brands are much more than mere names
and symbols. Brands are defined in terms of
awareness, reputation and prominence in the
marketplace.
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Product VS Brand
A product is anything that can be offered to the market
for attention , acquisition, use, or consumption that
might satisfy a need or want. Thus, a product can be
a physical good, service, organization, place or ideas.
A brand is a product but adds other dimensions that
differentiate it in some way from other products
designed to satisfy the same need.

Roles that Brands Play

Consumers
Identification of source of product
Assignment of responsibility to product maker
Risk reducer (functional, physical, financial,
social, psychological and time risks)
Search cost reducer
Symbolic device
Signal of quality
Promise, bond, or pact with product or maker
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Roles that Brands Play

Manufacturers
Identifies the maker
Simplifies product handling
Facilitates legal protection
Signifies quality level to satisfied customers
Creates barrier to entry
Endows products with unique associations
Serves as a source of competitive advantage
Source of financial returns/price premium
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Can Anything Be Branded?

Physical goods
Services
Retailers & Distributors
Online Products & Services
People & Organizations
Sports, Arts & Entertainment
Geographic Locations
Ideas and Causes

Business Weeks 25 Most Valuable Global

Brands

Business Weeks 25 Most Valuable Global

Brands

Branding Challenges &

Opportunities

Knowledgeable consumers
Brand proliferation
Media fragmentation
Increased competition
Increased costs of introducing new
brand or supporting existing brand
Greater accountability

Brand Equity Some Definitions

The added value to the firm, the trade, or the
consumer with which a given brand endows a
product.
A set of brand assets and liabilities linked to a
brand, its name and symbol, that add to or
subtract from the value provided by a product or
service to a firm and/or to that firms customers.
The measurable financial value in transactions
that accrues to a product or service from
successful programs and activities.
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Strategic Brand
Management Process
STEPS

KEY CONCEPTS

Identify and Establish

Brand Positioning and Values

Mental maps
Competitive frame of reference
Points-of-parity and points-of-difference
Core brand values
Brand mantra

Plan and Implement

Brand Marketing Programs

Mixing and matching of brand elements

Integrating brand marketing activities
Leveraging of secondary associations

Measure and Interpret

Brand Performance

Grow and Sustain

Brand Equity

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

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Historical Origins of Branding

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