CREATING BRAND EQUITY

Presented by Sony Kusumasondjaja, SE., M.Com

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What is Brand?
A name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller to differentiate them for those of competitors The differences may be functional/rational, or more symbolic/emotional

To brand the product is to teach consumers:

WHO THE PRODUCT IS WHAT THE PRODUCT DOES WHY CONSUMERS SHOULD CARE

The Role of Brands

Brands help to organize inventory and accounting records Brands help legal protection for unique features of the product Brand signal certain level of quality Brands ease consumers to choose which products to buy
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For successful branding

Consumers must be convinced that there are meaningful differences among brands in the product category Consumers must not think that all brands in the category are the same

Consumer-Based Brand Equity

The differential effect that brand knowledge has on consumer response to the marketing of that brand A brand is said to have positive customerbased brand equity when consumers react more favorably to a product and the way it is marketed when the brand is identified as compared to when it is not

3 Key Issues

Brand equity arises from differences in consumer response The differences in response are a result of consumers knowledge about the brand The differential response by consumers that makes up the brand equity is reflected in perceptions, preferences, and behavior

6 Criteria in Choosing Brand Elements

MEMORABLE MEANINGFUL LIKEABILITY TRANSFERABLE ADAPTABLE PROTECTIBLE

Branding Strategy (1)

BRAND EXTENTIONS (Parent vs Sub Brand) LINE EXTENTIONS CATEGORY EXTENTIONS BRAND LINE BRAND MIX

BRANDING STRATEGIES

INDIVIDUAL NAMES BLANKET FAMILY NAMES SEPARATE FAMILY NAMES FOR ALL PRODUCTS CORPORATE NAME COMBINED WITH INDIVIDUAL PRODUCT NAMES

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Advantages of Brand Extensions

New Product Success Positive Feedback Effects

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Disadvantages of Brand Extensions

Brand dilution It harms the parent brand image Cannibalization effect

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Reasons for introducing multiple brands in a category

To increase shelf presence To attract consumers seeking variety who may otherwise have switched to another brand To increase internal competition within the firm To yield economies of scale in ads, sales, merchandising, and physical distribution

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