Creating

Brand Equity
LECTURE-8
Chapter Questions
What is a brand and how does branding work?

What is brand equity?

How is brand equity built, measured, and
managed?

What are the important decisions in developing
a branding strategy?
Steps in Strategic Brand Management
Identifying and establishing brand positioning.

Planning and implementing brand marketing.

Measuring and interpreting brand performance.

Growing and sustaining brand value.
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.

The Role of Brands
Identify the maker
Simplify product handling
Organize accounting
Offer legal protection
Signify quality
Create barriers to entry
Serve as a competitive advantage
Secure price premium

What is Branding?
Branding is endowing products and services
with the power of the brand.
What is Brand Equity?
Brand equity is the added value endowed on
products and services, which may be reflected in
the way consumers, think, feel, and act with
respect to the brand.
Advantages of Strong Brands
Improved
perceptions of
product
performance
Greater loyalty
Less vulnerability
to competitive
marketing actions
Less vulnerability
to crises
Larger margins
More inelastic
consumer response
Greater trade
cooperation
Increased marketing
communications
effectiveness
Possible licensing
opportunities
What is a Brand Promise?
A brand promise is the marketers vision of what
the brand must be and do for consumers.

Brand Equity Models

Brand Asset Valuator
Aaker Model
BRANDZ
Brand Resonance
Brand Asset Valuator (BAV)
Advertising agency Young and Rubicam (Y & R)
developed a model of brand equity called Brand
Asset Valuator (BAV)
Differentiation
Measures the degree to which a brand is seen as
different from others.
Energy
Measures the brands sense of momentum.
Relevance
Measure the breadth of a brands appeal.
BAV Key Components
BAV Key Components
Esteem
Measures how well the brand is regarded & respected.
Knowledge
Measure how familiar & intimate consumers are with
the brand.
Aaker Model
Brand identity
The unique set of brand associations.
Core identity elements
Typically 8-10 elements that represent concepts.
Extended identity elements
Add texture & guidance.
Brand essence
Brand identity in a compact & inspiring way.
Drivers of Brand Equity
Brand elements
These are those trademarkable devices that identify &
differentiate the brand.
Marketing activities
Meaning transference
Brand Elements
Brand names
Slogans
Characters
Symbols
Logos
URLs
BRAND LOGO
BRAND CHARACTERS
BRAND SYMBOL
Brand Element Choice Criteria

Memorable
Meaningful
Likeability
Transferable
Adaptable
Protectible


Slogans
Like a good neighbor,
State Farm is there
Just do it
Nothing runs like a
Deere
Im lovin it
We try harder
Always low prices





Designing Holistic Marketing Activities
Personalization
Integration
Internalization
Internal Branding
Choose the right moment
Link internal and external marketing
Bring the brand alive for employees
Measuring Brand Equity
Brand audits
A consumer focused series of procedures to
assess the health of the brand (Equity)
Brand tracking
Quantitative data from consumers on a routine
basis over time.
Brand valuation
Total financial value of the brand.
The 10 Most Valuable Brands
Brand Brand Value (Billions)
Coca-Cola $67.00
Microsoft $56.93
IBM $56.20
GE $48.91
Intel $38.32
Nokia $30.13
Toyota $27.94
Disney $27.85
McDonalds $27.50
Mercedes-Benz $22.13
Managing Brand Equity
Brand reinforcement
Brand revitalization
Brand crises
Interbrands Steps in Calculating Brand
Equity
Market segmentation
Financial analysis
Role of branding
Brand strength
Brand value calculation
Devising a Branding Strategy
Develop new brand elements
Apply existing brand elements
Use a combination of old and new
Branding Terms
Brand line
All products
Brand mix
Set of all brand lines
Brand extension
Introduce a new product
Sub-brand
Brand extension can also called
sub- brand
Parent brand e.g Lifebuoy
Family brand e.g Honda
Line extension
New product with in a
product category
Category extension
Branded variants
Licensed product
Brand dilution
Brand portfolio
Reasons for Brand Portfolios
Increasing shelf presence and retailer
dependence in the store.

Attracting consumers seeking variety.

Increasing internal competition within the firm.

Yielding economies of scale in advertising,
sales, merchandising, and distribution.
Brand Roles in a Brand Portfolio
Flankers
Cash cows
Low-end, entry-level
High-end prestige

Marketing Management A South Asian Perspective
by Philip Kotler, Kevin Lane Keller, Abraham Koshy &
Mithileshwar Jha, 13th Edition, Published by Pearson
Education, Inc.

Strategic Marketing Management Meeting The
Global Marketing Challenges by Carol H. Anderson &
Julian W. Vincze Published by Houghton Mifflin Company.

Principles of Advertising & IMC by Tom Duncan 2
nd

Edition, Published by McGraw-Hill Irwin.

Principles of Marketing by Philip Kotler & Gary Armstrong
Thirteenth Edition, Published by Prentice Hall

Bibliography



"Success doesn't come to you,
you go to it."
Marva Collins

The End