CHAPTER SEVENTEEN. Strategic Launch Planning 1 Branding March 13, 2007. The Value of a Strong Brand. “ Brand equity has just as much effect on stock price as do earnings. ” — David Aaker Professor of Marketing, Emeritus University of California, Berkeley. What is a Brand?.
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Strategic Launch Planning 1
March 13, 2007
“Brand equity has just as much effect on stock price as do earnings.”
Professor of Marketing, Emeritus
University of California, Berkeley
A brand is a “name, term, sign, symbol, or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition.”
Source: American Marketing Association
A product is something that is made in a factory; a brand is something that is bought by a customer. A product can be copied by a competitor, a brand is unique. A product can be quickly outdated; a successful brand is timeless.
Source: Stephen King, WPP Group, London
A brand is something that resides in the minds of consumer.
of seller and
Keller, Kevin Lane. Strategic Brand Management: Building, Measuring, and Managing Brand Equity. 1998.
Country of origin
What distinguishes a brand from its unbranded commodity counterpart and gives it equity is the sum total of consumers’ perceptions and feelings about the product’s attributes and how they perform, about the brand name and what it stands for, and about the company associated with the brand.
Source: Alvin A. Achenbaum, “The Mismanagement of Brand Equity, 1993
Industry Brand Equity
Food Products 37
Electric machinery 22
Primary metals 01
Suppose that you will be given 0.1 percent of the stock on one of the following companies. Which firm’s stock would you prefer, given the following information?
Sales Assets Profits
General Motors$166B $229B $7B
Coca-Cola $19B $17B $4B
Provides Value to Customer
• Interpretation/processing of information
• Confidence in the Purchase Decision
• Use Satisfaction
Source: Aaker (1991) “Managing Brand Equity”
Describe the personality of the following:
What personality characteristics come to mind for the following:
Crapsy Fruit French cereal
Fduhy Sesane China Airlines snack food
Mukk Italian yogurt
Pschitt French lemonade
Atum Bom Portuguese tuna
Happy End German toilet paper
Pocari Sweat Japanese sport drink
Zit German lemonade
Creap Japanese coffee creamer
I'm Dripper Japanese instant coffee
Polio Czech laundry detergent
Sit & Smile Thai toilet paper
Barf Iranian laundry detergent
Provides value to customer:
Assists in customer information processing
Increases confidence in purchase
Increases satisfaction in product use
Provides value to firm:
Increases effectiveness of marketing programs
Increases customer loyalty and trade leverage
Facilitates brand extensions
Is a source of competitive advantage
How Brand Equity Provides Value