CHAPTER 15: CLOSING OBSERVATIONS

Kevin Lane Keller Tuck School of Business Dartmouth College

15.1

Brand Knowledge Structure

Brand awareness, depth, and breadth

Brand associations

15.2

Summary of Customer-Based Brand Equity Framework

Sources of brand equity

Strength Favorability Uniqueness Greater loyalty Less vulnerability to competitive marketing actions Less vulnerability to marketing crises Larger margins More inelastic consumer response to price increases More elastic consumer response to price decreases Greater trade cooperation and support Increased marketing communication effectiveness Possible licensing opportunities Additional brand extension opportunities
15.3

Outcomes of brand equity

Tactical Guidelines

Building brand equity

1.

2.

3.

Through the initial choice of the brand elements making up the brand Through marketing activities and the design of the marketing program Through the leverage of secondary associations that link the brand to other entities

15.4

Guidelines for Building Brand Equity

Mix and match brand elements Create a rich brand image and high perceived quality Adopt value-based pricing strategy Consider a range of distribution options Mix marketing communication options Leverage secondary associations

15.5

Importance of Complementarity and Consistency

Complementarity means choosing different brand elements and supporting marketing activities so that the potential contribution to brand equity of one compensates for the shortcomings of others. A high degree of consistency across these elements helps to create the highest level of awareness and the strongest and most favorable associations possible.

15.6

Guidelines for Measuring Brand Equity

Formalize the firms view of brand equity Conduct brand inventories Conduct consumer tracking studies Assemble results of outcome measures Establish a department to oversee the implementation

15.7

Guidelines for Managing Brand Equity

Define brand hierarchy Create global associations Introduce brand extensions Clearly establish the roles of brands in the portfolio Reinforce brand equity over time Enhance brand equity over time Identify differences in consumer behavior in different market segments
15.8

Characteristics of Strong Brands Managers

Understand brand meaning and market appropriate products in an appropriate manner Properly position the brand Provide superior delivery of desired benefits Employ a full range of complementary brand elements and supporting marketing activities Embrace integrated marketing communications and communicate with a consistent voice Measure consumer perceptions of value and develop a pricing strategy accordingly Establish credibility and appropriate brand personality and imagery Maintain innovation and relevance for the brand Strategically design and implement a brand hierarchy and brand portfolio Implement a brand equity management system to ensure that marketing actions properly reflect the brand equity concept 15.9

Seven Deadly Sins of Brand Management

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2.
3. 4.

5.
6. 7.

Failure to understand the full meaning of the brand Failure to live up to the brand promise Failure to adequately support the brand Failure to be patient with the brand Failure to adequately control the brand Failure to properly balance consistency and change with the brand Failure to understand complexity of brand equity measurement and management
15.10

Industrial and B2B Branding

Adopt a corporate or family branding strategy Link non-product-related imagery associations Employ full range of marketing communication options Leverage equity of other companies that are customers Segment markets carefully and develop tailored branding and marketing programs
15.11

Guidelines for High-Tech Branding

Establish brand awareness and rich brand image Create corporate credibility associations Leverage secondary associations of quality Avoid overbranding products Selectively introduce new products as new brands and clearly identify the nature of brand extensions

15.12

Guidelines for Service Branding

Maximize service quality Employ a full range of brand elements to enhance brand recall Create and communicate strong organizational associations Design corporate communication programs that augment consumers service encounters and experiences Establish a brand hierarchy using distinct family or individual brands as well as meaningful ingredient brands
15.13

Guidelines for Branding Retailers

Create a brand hierarchy consisting of the store as a whole as well as individual departments Enhance the manufacturers brand equity by communicating PODs Establish brand equity at all levels of the brand hierarchy Create multichannel shopping experience Avoid overbranding
15.14

Guidelines for Small Business Branding

Emphasize building one or two strong brands Focus the marketing program on one or two key associations Employ a well-integrated set of brand elements that enhances both brand awareness and image Design creative brand-building push campaigns Leverage as many secondary associations as possible
15.15

Guidelines for Online Branding

Dont forget the brand building basics Create strong brand identity Generate strong consumer pull Selectively choose brand partnerships Maximize relationship marketing

15.16

Future Brand Priorities

How will branding change in the coming years? What are the biggest branding challenges? What will make a successful twenty-first-century brand?

15.17

Building Brand Equity

Brand elements

In a cluttered, competitive marketplace, the brand elements that make up the brand will have to do more and more of the selling job.
Strong brands in the twenty-first century also will rise above others by better understanding the needs, wants, and desires of consumers and creating marketing programs that fulfill and even surpass consumer expectations.
15.18

Marketing programs

Measuring Brand Equity

Marketers of successful twenty-first-century brands will create formalized measurement approaches and processes that ensure they continually monitor their sources of brand equity and those of competitors.

15.19

Managing Brand Equity

It will be essential in building strong twenty-firstcentury brands to align internal and external brand management.

Internal brand management ensures that employees and marketing partners appreciate and understand basic branding notions and how they can affect the equity of brands. External brand management requires understanding the needs, wants, and desires of consumers and creating brand marketing programs that fulfill and even surpass consumer expectations.

Companies must also align bottom-up and top-down marketing management .

15.20

Achieving Marketing Balance

The most fundamental challenge of marketing and brand management is reconciling the many potential trade-offs in marketing decisions There are three means or levels of achieving marketing balance, in increasing order of potential effectiveness:
Alternate Divide Finesse

15.21