Marketing Management

II
 

Unit I- Creating Brand Equity

What is a Brand?

 Philip Kotlerand Gary Armstrong have

defined a brand as ‘a name, term, sign
symbol or a combination of these, that
identifies the maker or seller of the
product’



 ‘ Marketing tool that allows consumers to

recognize the maker of a product’.


Brand Identity
 Theattributes which the owner wants
to communicate to the customer


 Brand IMAGE ??
Brand Names
 Descriptive –bitter lemon

 Associative –sensodyne


 Freestanding -panteen
Branding


 Activity in which an organization uses a

brand to identify its products and
distinguish them from competitors.

 Its all about creating differences
Advantages of Strong
Brands
 Greater loyalty
 Larger margins
 Inelastic consumer response change in prices
 Improved perception of Product Performance
 Less vulnerability to competitive marketing
actions
 Less vulnerable to marketing crises
 Greater trade cooperation and support
 Increased marketing communications
effectiveness
 Additional brand extention opportunities


Class Assignment


Pick a brand of your choice

First image that strikes u/ first thought of the

brand
Make a list of its brand elements

Who is the brand

Difference.
Brand Equity

 The added value a given brand name

gives to a product or service.

 Customer based brand equity
Differential effect that a brand knowledge has on


the response of consumers

Building Brand Equity


 Process has 3 main BE drivers

Ø
ØChoosing Brand elements
Ø
ØDesigning holistic Marketing Activities
Ø
ØLeveraging secondary associations



Choosing brand elements
 Brand Elements / identity –( name, logo,
slogan, packaging, symbol etc)


 Choice Criterion- memorable, meaningful,

likeable, transferable, adaptable,
protectable.




Designing Holistic Marketing
Activities


A Brand Contact – Any information bearing experience the prospect has



with the brand.



 Shorten the GAP



 Personalization –B2B,Experimental, one to one mrktg. Ex.-

Apple, HOG,


 Integration –Mix & match various marketing communication

options to enhance brand awareness and image


 Internalization –Internal Branding


Leveraging Secondary
Associations
Secondary sources


 Other brands –company, ingredients, extensions,

alliances.

 People –employees ,endorsers

 Places –country of origin , channels.

 Things – events, causes(CSR,CRM), third party
endorsements.

Brand equity Models


 Brand Z – Millward Brown and WPP



• Brand Z measures the relative strengths of

brands within their categories.


 It generates for any given brand a Brand

Dynamics Pyramid .

Brand Dynamics Pyramid
BRANDZ Model
Rank 2009 Brand BV ’ 09 ( $m )

1 Google 1 , 00 , 039

2 Microsoft 76 , 249

3 Coca - Cola 67 , 625

4 IBM 66 , 622

5 McDonald's 66 , 575

6 Apple 63 , 113

7 China Mobile 61 , 283

8 GE ( General 59 , 793
Electric )
9 Vodafone 53 , 727

10 Marlboro 49 , 460
Managing Brand Equity


 Brand Reinforcement – “new”

◦ innovation, relevance , consistent marketing
support
 Brand Revitalization - McDonald’s
◦ rejuvenating the BRAND, new sources of BE,
increasing brand
 Brand Crisis
Brand strategy
 Brand extension – brand name extended to new
product categories
 Line extension – existing brand name extended to
new sizes in the existing product category
 Multibrands – new brands in the same product
category
 New brands – new product in a different product
category
 Cobrands –brands bearing two or more well
known brand names

Brand Roles in a Brand
Portfolio

 Flankers
 Cash cows
 Low-end entry-level
 High-end prestige

Measuring Brand Equity
 Brand Audits
◦ Brand Inventory
◦ Brand Exploratory
◦
 Brand Tracking


 Brand valuation
◦
◦
