Reported by: Tefanny F.

Pesons
 What is brand, and how does branding
work?
 What is brand equity?
 How is brand equity built, measured, and
managed?
 What are the important brand architecture
decisions in developing a branding
strategy?
“CUSTOMER
LOYALTY”
“PRODUCT
HANDLING &
TRACING”
“ROLE”

“LEGAL “IDENTIFY”
PROTECTION”
 PHYSICAL GOODS
 SERVICE
 PERSON
 PLACE
 ORGANIZATION
 IDEA
The added value endowed
Perceptions, preferences
on products and services. It
and behavior .
may be reflected in the way
consumer thinks, feel, and
act with respect to the “CUSTOMER-
brand, as well as in the BASED”
prices, market share, and
profitability the brand
commands.

All the thoughts,

DIFFERENCES, if not , the
feelings, images,
product is essentially a
experiences, and
commodity
beliefs associated
with the brand.
KEY COMPONENTS OR PILLARS OF
BRAND EQUITY
POWER
GRID
Shows the number of consumers who have reached each level.
LOYALTY
RELATIONSHIP
“IN SYNC”

JUDGEMNT
& FEELINGS OPINION & EMOTIONAL
EVALUATION RESPONSE

LINK HOW WELL EXTRINSIC

PROPERTIES

ENSURE HOW OFTEN

1. Choosing the brand elements.
2. Designing holistic marketing activities.

“Brand Contact”
3. Leveraging secondary associations.
Internal Branding:
1. Choose the right
moment.
2. Link internal and
external
marketing.
3. Bring the brand
alive for
employees.

Branding Communities:
1. “Consciousness of
kind” or sense of felt
connection.
2. Shared rituals, stories
and traditions.
3. A shared moral
responsibility or duty.
 1. Indirect approach – assesses potential sources of brand
equity by identifying and tracking consumer brand
knowledge structures.
2. Direct approach – assesses the actual impact of brand
L knowledge on consumer response to different aspects of
I marketing.
N
K

BRAND VALUE CHAIN - structured approach to

assessing the sources and outcomes of brand
equity and the way marketing activities create
brand value.
 Buying behavior and
Firm targets actual or response to price.
potential customers.
 The sources of brand  How these sources and
equity and how they outcomes change, if at
affect outcomes of all, over time.
interest.

BRAND
BRAND TRACKING
AUDIT STUDIES
 Divide the market.
Brand value as the
NPV of the future Assess purchase
earnings that can be price, volume &
frequency to help
attributed to the calculate forecast
brand alone. of future brand
sales & revenues. Assess to
determine the
Marketing and likelihood the
brand will
financial analysis are realize
equally important in Attributes a
forecasted
Brand
determining the proportion of
Earnings
Economic
value of the brand Earnings to the
(Interbrand’s Model) brand in each
segment

BV calculation is discounted by the Brand Discount Rate.

NPV calculation comprises both the forecast period and
the period beyond.
Brand Revitalization
 “Brand Architecture” – reflects the number and nature of
both common and distinctive brand elements.
1. Alternate branding strategies.
▪ Individual or separate family brand names.
▪ Corporate umbrella or company brand name.
▪ Sub-brand name.
2. House of brands versus a branded house
1. Flankers – or “fighter” brands are positioned with
respect to competitors’ brands so that more important
flagship brands can retain their designed positioning,
2. Cash Cows – some brands may be kept around despite
dwindling sales.
3. Low-end Entry Level – to attract customers to the
brand franchise (traffic builders)
4. High-end Prestige – add prestige and credibility to the
entire portfolio.
1. Advantages :
a) improved odds of new-product success
b) positive feedback effects
2. Disadvantage:
a) Line-extension trap
b) Brand dilution
3. Success Characteristics:
a) Does the parent brand have strong equity?
b) Is there a strong basis of fit?
c) Will the extension have the optimal points-of-parity and points-of-
difference?
d) How can marketing programs enhance extension equity?
e) What implications will the extension have for parent brand equity
and profitability?
f) How should feedback effects best ne managed?
Customer lifetime value is affected by
revenue and by the costs of customer
acquisition, retention, and cross selling.