Unit-3 Lecture-11

Creating Brand Equity

A: How Does Branding Work?
B: Defining Brand Equity
C : Building Brand Equity
D: Measuring Brand Equity
E: Managing Brand Equity
F: Devising a Branding Strategy
 Learning Outcome
Students will be able
• to make strategies to enhance brand equity of a
brand.
A: How Does Branding Work?
• What is a Brand
• American Marketing Association
– 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
A: How Does Branding Work?

• Brands’ role for consumers

✓ Set and fulfill expectations

✓ Reduce risk
✓ Simplify decision making
✓ Take on personal meaning
✓ Become part of identity
A: How Does Branding Work?

• Brands’ role for firms

✓ Simplify product handling

✓ Organize inventory & accounting
✓ Offer legal protection
✓ Create brand loyalty
✓ Secure competitive advantage
A: How Does Branding Work?

The Scope of Branding

• Branding
– The process of
endowing products
and services with
the power of a
brand
B: Defining Brand Equity
• Brand equity
– Added value endowed to products with consumers
B: Defining Brand Equity

• Customer-based brand equity

– The differential effect brand knowledge has on
consumer response to the marketing of that brand.
✓ Differences in consumer response
✓ Brand knowledge
✓ Perceptions, preferences, and behavior

• Brand promise
– The marketer’s vision of what the brand must be
and do for consumers. ex: Burger King
Brand Equity Models

1-BrandAsset® Valuator

2-Brandz

3-Brand Resonance Model

 Brand Equity Models
BrandAsset® Valuator

Energized
differentiation
Relevance
Esteem
Knowledge
Brand Equity Models
 Brand Equity Models
• Brand Resonance Pyramid
B:Building Brand Equity
1-Build Brand equity by creating the right brand knowledge
structures with the right consumers

There are three main sets of brand equity drivers:

B:Building Brand Equity
• Choosing Brand Elements
• Brand elements are those trademarkable devices
that serve to identify and differentiate the brand.
B:Building Brand Equity
• Choosing Brand Elements
• Brand elements are those trademarkable devices
that serve to identify and differentiate the brand.
B:Building Brand Equity
2-Designing Holistic Marketing Activities

• Brand contact
– Any information-bearing experience (positive
or negative) a customer or prospect has with
the brand, its product category, or its market
B:Building Brand Equity
3-Leveraging Secondary Associations
B:Building Brand Equity
4-Internal Branding
• Activities and processes that help
inform/inspire employees about brands

Link internal & external

Choose the right moment
marketing

Bring the brand alive for

Keep it simple
employees
C:Measuring Brand Equity

• Brand audit

• Brand-tracking studies

• Brand valuation
C:Measuring Brand Equity
C:Measuring Brand Equity
3-Brand Valuation
E:Managing Brand Equity
F:Devising a Branding Strategy
F:Devising a Branding Strategy

• Brand extension • Category extension

• Sub-brand • Brand line
• Parent brand • Brand mix
• Master/family brand • Branded variants
• Line extension • Licensed product
F:Devising a Branding Strategy
Branding Decisions
F:Devising a Branding Strategy
Branding Decisions
F:Devising a Branding Strategy
Branding Decisions
F:Devising a Branding Strategy
Branding Decisions
F:Devising a Branding Strategy
Branding Decisions
F:Devising a Branding Strategy
Branding Decisions
F:Devising a Branding Strategy
Branding Decisions
F:Devising a Branding Strategy
Branding Decisions
 Mcq’s
•1) The American Marketing Association defines a
________ as "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."
•A) copyright
•B) trademark
•C) slogan
•D) brand
 Mcq’s
•2) The challenge for marketers in building a
strong brand is ________.
•A) ensuring that customers have the right type of
experiences with their products and marketing programs
to create the desired brand knowledge
•B) pricing the product at a point that maximizes sales
volume
•C) minimizing the number of people to whom the
product is targeted in order to provide consumers with a
personalized experience
•D) minimizing the impact of customer brand equity
 Mcq’s
•3) If consumers can easily recall and recognize a
brand element, the brand element is said to be
________.
•A) meaningful
•B) protectable
•C) adaptable
•D) memorable
 Mcq’s
•4) Brand ________ is the added value endowed
to products and services.
•A) loyalty
•B) equity
•C) preference
•D) identity
 Mcq’s
•5) Adam wants to buy a washing machine and is
looking for something that is not too expensive. When he
goes to make the purchase, he finds there are two
options that meet his requirements. One is a Maytag
product, while the other is a newly imported South
Korean brand. Adam is not very familiar with the latter
and does not hesitate in choosing Maytag. This example
implies that ________.
•A) the imported brand will not survive the competition
from Maytag
•B) Maytag has a positive customer brand equity
•C) the South Korean company has a low advertising
budget