Building Brand Equity and

Brand Identity
M. Ali Umar Ismail Niken Ayu M.
Metta Yunita
Nikolas Simamora
Mohamad Mahi Riris Kristina S.

Designing Marketing Programs

to Build Brand Equity
Keller, Chapter 5

Overview
How do marketing activitiesalso product, pricing, and

distribution strategiesbuild brand equity?

How can marketers integrate these activities to enhance

brand awareness, improve brand image, draw positive brand

responses, and increase brand resonance?

New Perspective on Marketing

Changes:
Economic
Technology
Politic
Legal
Sociocultural
Competitive
environments

4 Major drivers of new

economy:
Digitization and
connectivity
Disintermediation and
reintermediation
Customization and
customerization
Industry convergence

Integrating Marketing Programs and

Activities
There are many different means by which products and

services and their corresponding marketing programs can

build brand equity.
Creative and original thinking is necessary to create fresh

new marketing programs that break through the noise in the

market place to connect with customer.
However creativity must not sacrifice a brand-building goal,

and marketers must orchestrate programs to provide

seamlessly integrated solutions and experiences for
customers that create awareness, spur demand, and cultivate
loyalty

Personalizing Marketing
To adapt to the increased customer desire for personalization, marketers have

embraced concepts such as experiential marketing, one-to-one marketing, and

permission marketing.

Experiential Marketing

One-to-one Marketing

Permission Marketing

It promotes a product by
not only communicating a
products features and
benefits but also
connecting it with unique
and interesting
experiences.

Consumers help to add

value by providing
information to marketers;
marketers add value, in
turn, by taking that
information and
generating rewarding
experiences for
consumers.

The practice of marketing

to consumers only after
gaining their express
permission.
Consumers appreciate
receiving marketing
messages they gave
permission for.

Experiential Marketing
Focuses on customer experiences
Focuses on the consumption situation
Views customers as rational and emotional elements
Uses electric methods and tools
There are 5 different types of experiences: Sense, Feel, Think,

Act, and Relate. They are becoming increasingly vital to

consumers perceptions of brands.

One-to-one Marketing
Based on several fundamental strategies:
Focus on individual consumer through consumer database
Respond to consumer dialogue via interactivity
Customize products and services.

Treat different consumers differently:

Different needs
Different current and future value to the firm

Devote more marketing effort to most valuable consumers.

Permission Marketing
Getting permission with inducement such as free

sample, discount, sales promotion, contest, etc.

Marketers might develop stronger relationships with

consumer desire to receive further communication

relationship can be develop if marketers respect consumers
wishes and of consumers express a willingness to become
more involved with the brand.

Permission Marketing
5 steps to effective permission marketing:
Offer the prospect an incentive to volunteer.
Offer the interested prospect a curriculum over time, teaching

the consumer about the product or service being marketed.

Reinforce the incentive to guarantee that the prospect
maintains his or her permission.
Offer additional incentives to get more permission from
consumers.
Over time, leverage the permission to change the consumer
behavior toward profits.

New Marketing Approach

Product Strategy
Perceived Quality and Value
Relationship Marketing
Pricing Strategy
Consumer price perception
Setting price to build brand equity
Channel (distribution) strategy
Channel design
Indirect channels
Direct channels
Web strategies

Product Strategy:
Perceived Quality and Value
Consumers formed their opinions about quality based on

following dimensions: Performance, Features, Conformance

Quality, Reliability, Durability, Serviceability, Style and
Design.
Brand intangibles: product quality depends not only on

functional product performance, but on broader performance

consideration (performance/process/relationship benefits).
Value chain: by improving performance and reducing cost in

value-creating activities, a firm can achieve competitive

advantage.

Product Strategy:
Relationship Marketing
Based on premise that current customers are the key to long term

brand success.
Mass Customization: technology helps producer to be able to make

customized product for mass market, e. g. Dell Computers.

Aftermarketing: Establishing and maintaining a consumer

information file, buleprinting consumer contacts, analyzing

customer feedbacks, conducting CS surveys, formulating and
managing communication programs, hosting special customer
events/programs, identifying and reclaiming lost customers.
Loyalty programs: identifying, maintaining, and increasing the yield

from firms best customers through long term, interactive, value

added relationships.

Pricing Strategy
Consumer Price Perseptions

How the consumers categorize the price of the brand (as low,
medium, or high), and how firm or how flexible they think
the price is, based on how deeply or how frequently it is
discounted. Consumer often rank brands according to price
tiers in a category.

Pricing Strategy:
Setting Prices to Build Brand Equity
Value Pricing: to uncover the right blend of product quality,

product costs, and product prices that fully satisfies the

needs and wants of consumers and the profit targets of the
firm.
Strong brand can command price premiums, but strong brands

cant command an excessive price premiums.

Effective value pricing strategy should strike the proper balance
among the following:
product design and delivery,
product costs,
product prices.

Everyday low pricing: avoids pattern of alternating price

increases and decreases.

Channel Strategy
Channel: sets of interdependent organizations involved in the

process of making a product or service available for use of

consumption.
Channel strategy includes the design and management of

intermediaries such as wholesalers, distributors, brokers, and

retailers.
Channel designs:
Direct channel,
Indirect channel,
Web strategies

Channel Strategy:
Indirect Channel
Sell products through third-party intermediaries such as agents or broker
representatives, wholesalers or distributors, and retailers or dealers.
Push and pull strategies: providing incentive to retailers to stock and

sell some products (push), or create such a demand from consumer

that consumer requests retailers to sell the product (pull).

Channel support: a number of different services provided by channel

members can enhance the value to consumers of purchasing and

consuming a brand name product.

Retail segmentation: retailers are customers too, and they are

segmented due to different capabilities and needs. They need to be

treated differently to get necessary brand support.

Cooperative advertising: manufacturer pays for a portion of the

advertising that a retailer runs to promote manufacturers product and

its availability in the retailers place of business.

Channel Strategy:
Direct Channels & Web Strategies
Direct Channels:
Selling through personal contacts from the company to
prospective customers by mail, phone, electronic means, inperson visits, and so forth.
Company-owned stores: made to gain control over the selling

process and build stronger relationships with customers.

Web Strategies:

Using the advanced technology, many manufacturers can have

an online retail channel, or work together with online retailers
such as Amazon, Zalora, Lazada, Rakuten, etc.

Integrating Marketing
Communications to Build
Brand Equity
Keller, Chapter 6

Overview
Marketing communications are the means by which firms

attempt to inform, persuade, and remind consumersdirectly

or indirectlyabout the brands they sell.

The New Media Environment

Traditional advertising media such as TV, radio, magazines,

and newspapers seem to be losing their grip on consumers.

Marketers pour $18 billion into Internet advertising in 2005.

While Web advertising jumped 20% during this time, spending

for TV ads remained flat.

Simple Test for

Marketing Communications

Current
Brand
Knowledge

Desired
Brand
Knowledge

Information Processing Model of Communications

1. Exposure
2. Attention
3. Comprehension
4. Yielding
5. Intentions
6. Behavior

Marketing Communications Options

Advertising

Promotions
Event marketing and sponsorship
Public relations and publicity
Personal selling

Advertising
A powerful means of creating strong, favorable, and unique

brand associations and eliciting positive judgments and

feelings
Controversial because its specific effects are often difficult to

quantify and predict

Nevertheless, a number of studies using very different

approaches have shown the potential power of advertising on

brand sales.

Ideal Ad Campaign
The ideal ad campaign would ensure that:
1.

The right consumer is exposed to the right message at the right place and at
the right time.

2.

The creative strategy for the advertising causes the consumer to notice and
attend to the ad but does not distract from the intended message.

3.

The ad properly reflects the consumers level of understanding about the

product and the brand.

4.

The ad correctly positions the brand in terms of desirable and deliverable

points-of-difference and points-of-parity.

5.

The ad motivates consumers to consider purchase of the brand.

6.

The ad creates strong brand associations to all of these stored

communication effects so that they can have an effect when consumers are
considering making a purchase.

Category of Advertising
Television
Radio
Print
Direct response
Interactive: websites, online ads
Mobile marketing
Place advertising:
Billboards; movies, airlines, and lounges; product placement; and point-of-

purchase advertising

Promotions
Short-term incentives to encourage trial or usage of

a product or service
Marketers can target sales promotions at either the
trade or end consumers
Consumer promotions

Consumer promotions are designed to change the choices,

quantity, or timing of consumers product purchases.

Trade promotions

Trade promotions are often financial incentives or

discounts given to retailers, distributors, and other

members of the trade to stock, display, and in other ways
facilitate the sale of a product.

Event Marketing and Sponsorship

Event marketing is public sponsorship of events or activities

related to sports, art, entertainment, or social causes.

Event sponsorship provides a different kind

of
communication option for marketers. By becoming part of a
special and personally relevant moment in consumers lives,
sponsors can broaden and deepen their relationship with
their target market.

Public Relations and Publicity

Public relations and publicity relate to a variety of programs

and are designed to promote or protect a companys image or

its individual products.
Buzz Marketing
Occasionally, a product enters the market with little fanfare yet is

still able to attract a strong customer base.

Personal Selling
Personal selling is face-to-face interaction with one

or more prospective purchasers for the purpose of

making sales

The keys to better selling

Rethink training
Get everyone involved
Inspire from the top
Change the motivation
Forge electronic links
Talk to your customers

Integrated Marketing Communications (IMC)

The voice of the brand

A means by which it can establish a dialogue and build relationships

with consumers
Allow marketers to inform, persuade, provide incentives, and remind

consumers directly or indirectly

Can contribute to brand equity by establishing the brand in memory

and linking strong, favorable, and unique associations to it

Developing IMC Programs

Mixing communication options
Evaluate all possible communication options available to create

knowledge structures according to effectiveness criteria as well as cost

considerations.
Different communication options have different strengths and can
accomplish different objectives.
Determine the optimal mix

Evaluating IMC Programs

Coverage: What proportion of the target audience is reached by each

communication option employed? How much overlap exists among

options?
Cost: What is the per capita expense?

IMC Audience Communication Option Overlap

Communication
Option A

Communication
Option B

Communication Option C
Note: Circles represent the market segments reached by various communication options.
Shaded portions represent areas of overlap in communication options.

Evaluating IMC Programs (cont.)

Contribution: The collective effect on brand equity in terms of
enhancing depth and breadth of awareness
improving strength, favorability, and uniqueness of brand associations

Commonality: The extent to which information conveyed by different

communication options share meaning

Evaluating IMC Programs (cont.)

Complementarity: The extent to which different associations and

linkages are emphasized across communication options

Versatility: The extent to which information contained in a

communication option works with different types of consumers

Different communications history

Different market segments

Marketing Communication Guidelines

Be analytical: Use frameworks of consumer behavior and

managerial decision making to develop well-reasoned
communication programs

Be curious: Fully understand consumers by using all forms of

research and always be thinking of how you can create added value
for consumers

Be single-minded: Focus message on well-defined target markets

(less can be more)

Be integrative: Reinforce your message through consistency and

cuing across all communications

Marketing Communication Guidelines

(Cont.)

Be creative: State your message in a unique fashion; use alternative

promotions and media to create favorable, strong, and unique brand
associations

Be observant: Monitor competition, customers, channel members,

and employees through tracking studies

Be realistic: Understand the complexities involved in marketing

communications

Be patient: Take a long-term view of communi-cation effectiveness

to build and manage brand equity