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PART. BUILDING . 4. STRONG BRANDS. Chapter. CREATING. 9. Brand Equity. In this chapter, we address the following questions:. What is a brand & how does branding work? What is brand equity? How is brand equity built, measured & managed?

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building

PART

BUILDING

4

STRONG BRANDS

Marketing Management - An Asian Perspective

4th Edition

creating

Chapter

CREATING

9

Brand Equity

Marketing Management - An Asian Perspective

4th Edition

slide3

In this chapter, we

address the following

questions:

  • What is a brand & how does branding work?
  • What is brand equity?
  • How is brand equity built, measured & managed?
  • What are the important decisions in developing a branding strategy?

Marketing Management - An Asian Perspective

4th Edition

a strong brand an example
A Strong Brand – an example
  • GOOGLE: Play on word googol - huge amount of data online
  • Focus on searches
  • Fast, reliable service

Makes money:

  • Paid listings
  • Licensing

Ultimate sign of success:

  • Verb “to google” is to search online
  • “Brand of the Year” 2002

Googlefounders

Larry Page & Sergey Brin

Marketing Management - An Asian Perspective

4th Edition

what is brand equity the role of brands
What is Brand Equity?- The Role of Brands

Brand

name, sign, symbol, design

to identify goods/services of seller

& differentiate from

competitors’ goods/services

Marketing Management - An Asian Perspective

4th Edition

what is brand equity the role of brands1
What is Brand Equity?- The Role of Brands
  • Identify product source & firm
  • Perform valuable functions for firm
  • Signal quality: if satisfied, re-buy
  • Valuable legal property

Marketing Management - An Asian Perspective

4th Edition

the brand report card
The Brand Report Card

World’s strongest brands 10 attributes

1. Benefits consumers truly want

2. Stays relevant

3. Pricing - on consumer perceptions of value

4. Properly positioned

5. Consistent

6. Portfolio makes sense

7. Use marketing to build equity

8. Managers understand its meaning to consumers

9. Given proper, sustained support

10. Sources of brand equity monitored

Marketing Management - An Asian Perspective

4th Edition

challenges asian brands global ambitions
Challenges: Asian brands - global ambitions

What is Brand Equity?- The Role of Brands

  • Overcome inherent parochialism
  • Culture sustains global perspective
  • Keep Asian brand identity - go global
  • Rise above cheap low-quality image
  • Think global despite being small

Marketing Management - An Asian Perspective

4th Edition

what is brand equity the scope of branding
What is Brand Equity?- The Scope of Branding
  • Branding: Endow products- brand power
  • Brand value – convince consumers of meaningful differences among brands
  • Related to attributes of product
  • Branding applied wherever consumer has a choice

Marketing Management - An Asian Perspective

4th Edition

what is brand equity the scope of branding1
What is Brand Equity?- The Scope of Branding

In Hong Kong,

Oxfam brands

idea to stop

poverty

through the

“Make Trade

Fair”

campaign

Marketing Management - An Asian Perspective

4th Edition

what is brand equity the scope of branding2
What is Brand Equity? - The Scope of Branding

The Joseph Conrad suite - Oriental Hotel, Bangkok

  • Brands itself - premium image
  • Appeals to guests who seek superior service

Marketing Management - An Asian Perspective

4th Edition

what is brand equity defining brand equity
What is Brand Equity?- Defining Brand Equity
  • Brand equity - added value to products & services
  • Important intangible asset - psychological & financial value
  • Customer-based brand equity
    • Effect brand knowledge has on consumer response to marketing of that brand

Marketing Management - An Asian Perspective

4th Edition

what is brand equity defining brand equity1
What is Brand Equity?- Defining Brand Equity

3 keys to customer-based brand equity

  • Differences in consumer responses
  • Consumer’s knowledge about brand
  • Perceptions, preferences, & behavior related to marketing of brand
  • Strong brand - right experiences & marketing - desired brand knowledge

Marketing Management - An Asian Perspective

4th Edition

slide14

Table 9.1

Marketing Advantages of Strong Brands

Marketing Management - An Asian Perspective

4th Edition

what is brand equity brand equity as a bridge
What is Brand Equity?- Brand Equity as a Bridge
  • Marketing expense- invest in brand knowledge
  • Brand - promise to deliver predictable product/service performance
  • Brand promise
  • Marketer’s vision of what brand must be & do for consumers

Marketing Management - An Asian Perspective

4th Edition

what is brand equity brand equity as a bridge1
What is Brand Equity?- Brand Equity as a Bridge

4 types of East Asian assets

  • Golden Assets: Tiger Balm, Boh Tea
  • Acquired Assets: Raffles Hotel, Infosys
  • Potential Assets: Haier, Tsingtao
  • Combine Acquired & Potential Assets

Marketing Management - An Asian Perspective

4th Edition

a checklist for developing global asian brands
A Checklist for Developing Global Asian Brands

Checklist: Develop Asian brand to global power brand:

  • Marketing - main driver for global fame?
  • Brand - most valuable financial asset?
  • Brand strategy - to global premier league?
  • Marketing staff - experience & ambition to match?
  • Creative marketing communications resources/talents?
  • Retain control of global brand strategy of marketing?
  • Embrace R&D & product enhancements with passion?
  • Financial resources to compete in global game?

Marketing Management - An Asian Perspective

4th Edition

what is brand equity brand equity models
What is Brand Equity?- Brand Equity Models

BAV Power Grid

BRAND ASSET VALUATOR (BAV)

  • Comparative measures of brand equity of thousands of brands across hundreds of different categories
  • 4 key components of brand equity:
      • Differentiation
      • Relevance
      • Esteem
      • Knowledge

Marketing Management - An Asian Perspective

4th Edition

what is brand equity brand equity models1
What is Brand Equity?- Brand Equity Models

BAV Power Grid

Differentiation + Relevance = Brand Strength

Brand’s future value

Esteem + Knowledge = Brand Stature

Brand’s past performance

  • Both form Power Grid: stages in cycle of brand development
  • New brands - low levels on all 4 pillars
  • Leadership brands - high levels on all 4 pillars
  • Declining brands - high knowledge

Marketing Management - An Asian Perspective

4th Edition

slide20

Figure 9.1BAV Power Grid

Marketing Management - An Asian Perspective

4th Edition

what is brand equity brand equity models2
Brand equity

5 categories of brand assets & liabilities

linked to brand

that form value of product

to firm and/or its customers

Brand loyalty

Brand awareness

Perceived quality

Brand Associations

Other proprietary assets

What is Brand Equity?- Brand Equity Models

AAKER MODEL

Marketing Management - An Asian Perspective

4th Edition

what is brand equity brand equity models3
What is Brand Equity?- Brand Equity Models

AAKER MODEL

  • Brand identity - brand associations - what brand is & promises to customers
  • 12 dimensions, 4 perspectives:
  • brand-as-product
  • brand-as-organization
  • brand-as-person
  • brand-as-symbol

Marketing Management - An Asian Perspective

4th Edition

what is brand equity brand equity models4
What is Brand Equity?- Brand Equity Models

AAKER MODEL

Brand identity = core + extended

  • Core identity - timeless essence of brand - constant - new market/product
  • Extended identity - brand identity elements - cohesive & meaningful groups

Marketing Management - An Asian Perspective

4th Edition

what is brand equity brand equity models5
What is Brand Equity?- Brand Equity Models

BRANDZ

BRANDZ model: BrandDynamics pyramid

  • Build brand - series of steps, each upon success of previous step
  • Objectives at each step:
  • Presence
  • Relevance
  • Performance
  • Advantage
  • Bonding

Marketing Management - An Asian Perspective

4th Edition

what is brand equity brand equity models6
What is Brand Equity?- Brand Equity Models

BRANDZ

  • Bonded consumers (pyramid top)
    • Strong relationships with brand
    • Spend more on brand than those below
  • More consumers at lower levels
  • Challenge for marketers - develop programs - help consumers move up pyramid

Marketing Management - An Asian Perspective

4th Edition

what is brand equity brand equity models7
What is Brand Equity?- Brand Equity Models

BRAND RESONANCE

BRAND RESONANCE

  • Brand building - ascending, sequential series of steps, bottom to top:
  • Identify, associate brand- product/need
  • Establish brand meaning in customers
  • Elicit proper responses
  • Convert response to active loyal relationship between customers & brand

Marketing Management - An Asian Perspective

4th Edition

what is brand equity brand equity models8
What is Brand Equity?- Brand Equity Models

BRAND RESONANCE

6

“brand building blocks”

  • 4 steps - 6 “brand building blocks”
  • Blocks - brand pyramid
  • If right blocks in place, reach top pyramid
  • Brand equity created
  • Brand salience
  • Brand performance
  • Brand imagery
  • Brand judgments
  • Brand feelings
  • Brand resonance

Marketing Management - An Asian Perspective

4th Edition

slide28

Figure 9.2 Brand Resonance Pyramid

Marketing Management - An Asian Perspective

4th Edition

building brand equity overview
Building Brand Equity- Overview
  • Building Brand Equity - right brand knowledge with right consumers
  • 3 brand equity drivers:
  • Initial choices for elements make up brand
  • Product, marketing activities & programs
  • Other associations passed to brand when linked to other entity

Marketing Management - An Asian Perspective

4th Edition

building brand equity choosing brand elements
Building Brand Equity- Choosing Brand Elements
  • Brand elements – trademarkable devices - identify & differentiate brand
  • Strong brands - multiple brand elements
    • Nike has the “swoosh” logo, the “Just Do It” slogan & the “Nike” name
  • Brand elements - build as much brand equity as possible

Marketing Management - An Asian Perspective

4th Edition

building brand equity choosing brand elements1
Building Brand Equity- Choosing Brand Elements
  • Memorable
    • Brand - easily recalled, recognized?
    • Name - look distinctive – memorable
  • Meaningful
    • Values consumers seek
    • Asia Pacific - probe taboos, religious connotations - colors, numbers

Marketing Management - An Asian Perspective

4th Edition

building brand equity choosing brand elements2
Building Brand Equity- Choosing Brand Elements

Eg: Memorable

Korean electronics manufacturer LG

incorporates name in slogan, “Life’s Good”

Simple-to-pronounce letter-name reinforced by slogan & logo elements makes brand name memorable

Marketing Management - An Asian Perspective

4th Edition

slide33

Building Brand Equity- Choosing Brand Elements

Eg: Meaningful

Cathay Pacificuses Chinese calligraphy

for brushwing logo & ad visuals

to suggest “Heart of Asia” heritage

A Cathay Pacific bus ad promotes Hong Kong as a destination

Marketing Management - An Asian Perspective

4th Edition

building brand equity choosing brand elements3
Building Brand Equity- Choosing Brand Elements
  • Likeability
    • Is it likable visually, verbally?
      • Eg: Fuji/Xerox Shagaku, a handheld copier, fits image well
  • Transferable
    • Can be used to introduce new products in other categories?

Marketing Management - An Asian Perspective

4th Edition

building brand equity choosing brand elements4
Building Brand Equity- Choosing Brand Elements
  • Adaptable
  • How adaptable & updatable is brand?
  • Asian brands - retain traditional values as they modernize
    • Eg: Dutch Baby – 1965 Dutch Baby;
    • 2000 Dutch Lady - new name - brand market strength- more modern image

Marketing Management - An Asian Perspective

4th Edition

building brand equity choosing brand elements5
Building Brand Equity- Choosing Brand Elements
  • Protectible
  • How legally protectible is it?
  • Unique brand name can be intimately identified with product category
    • Eg: Scotch Tape & Post-it notes

Marketing Management - An Asian Perspective

4th Edition

slide37

Building Brand Equity- Choosing Brand Elements

Eg: Protectible

In China, local coffee shop, U-LIKE COFFEE, copied Starbucks - Chinese name, logo & store design. Starbucks sued & won.

Marketing Management - An Asian Perspective

4th Edition

building brand equity choosing brand elements6
Building Brand Equity- Choosing Brand Elements

DEVELOPING BRAND ELEMENTS

  • Elements to identify products - plenty
  • Likeability & appeal- critical
  • Play number of brand-building roles
  • Less concrete benefits, essential that elements capture brand’s intangible characteristics

Marketing Management - An Asian Perspective

4th Edition

building brand equity choosing brand elements7
Building Brand Equity- Choosing Brand Elements
  • Slogans - powerful brand element
  • “Hooks”: what is brand & special quality
  • Summarize, translate marketing intent

Eg: Inherent brand meaning in slogans

“A Great Way to Fly” Singapore Airlines

“Connecting People” Nokia

Marketing Management - An Asian Perspective

4th Edition

building brand equity designing holistic marketing activities
Building Brand Equity- Designing Holistic Marketing Activities
  • Brand contact - product-related experience with brand, category or market
  • Holistic marketers - 3 themes - brand-building marketing programs:
    • Personalization, integration & internalization

Marketing Management - An Asian Perspective

4th Edition

building brand equity designing holistic marketing activities1
Building Brand Equity- Designing Holistic Marketing Activities

PERSONALIZATION

  • Internet– chance- personalize marketing
  • Experiential, one-to-one, permission marketing
  • Personalizing marketing - ensure brand & marketing relevant - most customers possible – challenging

Marketing Management - An Asian Perspective

4th Edition

building brand equity designing holistic marketing activities2
Building Brand Equity- Designing Holistic Marketing Activities
  • Brand management in Asia - brand relationships with customers
    • In Asia: Trusted agent- friend, not outsider
  • Brand-driven customer relationship management – establish relative positions for brand & customer
  • Relationship brand manager- find products for customers

Marketing Management - An Asian Perspective

4th Edition

building brand equity designing holistic marketing activities3
Building Brand Equity- Designing Holistic Marketing Activities
  • Integrating marketing - mix & match activities to maximize effects
  • Brand awareness - identify brand in different conditions - recognition or recall
  • Brand image - perceptions & beliefs through associations in memory

Marketing Management - An Asian Perspective

4th Edition

building brand equity designing holistic marketing activities4
Building Brand Equity- Designing Holistic Marketing Activities

INTERNALIZATION

  • Internalperspective - staff understand brand & see how to help brand equity
  • Internal branding: inform, inspire staff
  • Brand bonding: customers experience brand promise

Marketing Management - An Asian Perspective

4th Edition

building brand equity designing holistic marketing activities5
Building Brand Equity- Designing Holistic Marketing Activities

INTERNALIZATION

  • Brand promise delivered if all in company lives the brand
  • Customer experience with staff influences brand perception:
    • Eg: Inflight service by the Singapore Girl
    • Critical ingredient of Singapore Airlines’ branding success

Marketing Management - An Asian Perspective

4th Edition

applying permission marketing
Applying Permission Marketing
  • 5steps to effective permission marketing:
  • Offer incentive to volunteer
  • Offer teaching materials on product
  • Reinforce incentive: permission maintained
  • Offer more incentives for more permission
  • Over time, leverage permission to change consumer behavior toward profits

Marketing Management - An Asian Perspective

4th Edition

building brand equity leveraging secondary associations
Building Brand Equity- Leveraging Secondary Associations
  • Brand associations - linked to entities - create “secondary” brand associations
  • Brand equity created - link brand to other information in memory - conveys meaning to consumers

Marketing Management - An Asian Perspective

4th Edition

slide48

Figure 9.3 Secondary Sources of Brand Knowledge

Marketing Management - An Asian Perspective

4th Edition

measuring brand equity brand audits
Measuring Brand Equity- Brand Audits

Brand audit

  • Consumer-focused - assess brand health, equity sources - improve & leverage it
  • Affect strategy & brands’ performance

Brand audits - 2 steps:

  • Brand inventory
  • Brand exploratory

Marketing Management - An Asian Perspective

4th Edition

measuring brand equity brand audits1
Measuring Brand Equity- Brand Audits

BRAND INVENTORY

  • Current profile - how products marketed & branded
  • What current perception may base on

BRAND EXPLORATORY

  • Understandthoughts on brand, category – Identify brand equity sources
  • Qualitative research techniques

Marketing Management - An Asian Perspective

4th Edition

measuring brand equity brand tracking
Measuring Brand Equity- Brand Tracking
  • Tracking studies collect data from consumers - routine basis over time
  • Current data - brands & marketing performance
  • Important to monitor brand health & equity

Marketing Management - An Asian Perspective

4th Edition

slide52

Table 9.2

The World’s 10 Most Valuable Brands

Marketing Management - An Asian Perspective

4th Edition

21st century branding
21st Century Branding

Branding Principles:

  • Rely on brand awareness - marketing fool’s gold
  • Have to know it before you can grow it
  • Remember Spandex rule of brand expansion
  • Great brands establish enduring customer relationships
  • Everything matters
  • All brands need good parents
  • Big is no excuse for being bad
  • Relevance, simplicity & humanity

Marketing Management - An Asian Perspective

4th Edition

managing brand equity brand reinforcement
Managing Brand Equity- Brand Reinforcement
  • Brand equity reinforced by marketing:
  • What products brand represents?
  • How brand makes products superior?
  • Which strong, favorable brand associations - in consumers’ minds?
  • Brand Reinforcement - innovation & relevance - satisfy target markets

Marketing Management - An Asian Perspective

4th Edition

managing brand equity brand revitalization
Managing Brand Equity- Brand Revitalization

Refresh or create brand equity sources:

  • Expand depth, breadth of brand awareness
    • Improve brand recall & recognition
  • Improve strength, favorability & uniqueness of brand associations

Marketing Management - An Asian Perspective

4th Edition

slide56

Managing Brand Equity- Brand Revitalization

A corporate TIGER BALMad- different products for different uses

Marketing Management - An Asian Perspective

4th Edition

slide57

ManagingBrand Equity- Brand Revitalization

  • Example: Eu Yan Sang1879
  • Bak Foong Yun pill - beauty
  • Expand market:
  • Young, professional, men
    • Restyle stores - modern
    • Information panels, brochures
    • Sell: supermarket, health food store
    • Repackage product – convenience
    • Eg: ginseng teabags
  • Now > 150 products - Beyond TCM eg: bottled bird’s nest
  • 1999: Set up cybershop
  • 2001: Integrative medicine center Sydney

Marketing Management - An Asian Perspective

4th Edition

slide58

Managing Brand Equity- Brand Revitalization

Billboard ads of

Eu Yan Sang

promote health benefits of its bottled bird’s nest &

Bak Foong pills, seen throughout Malaysia

Marketing Management - An Asian Perspective

4th Edition

managing brand equity brand crisis
Managing Brand Equity- Brand Crisis
  • More brand equity - more firm can weather crisis
  • Careful preparation & well-managed crisis management program - critical
  • Key to manage crisis - consumers see response by firm as both swift& sincere

Marketing Management - An Asian Perspective

4th Edition

devising a brand strategy
Devising a Brand Strategy
  • Brand strategy – reflectselements on product
  • Brand extension – established brand introduce new product
  • Sub-brand - new brand + existing brand
  • Parent brand - existing brand gives birth to brand extension
  • Family brand - parent brand linked to many products - brand extensions

Marketing Management - An Asian Perspective

4th Edition

devising a brand strategy1
Devising a Brand Strategy

2 categories of Brand extensions

  • Line extension - parent brand - brands new product - new market - current category
  • Category extension - parent brand -enters new product category

Marketing Management - An Asian Perspective

4th Edition

devising a brand strategy2
Devising a Brand Strategy
  • Brand line – products sold under brand
  • Brand mix - brand lines available
  • Branded variants - specific brand lines supplied to specific retailers or channels
  • Licensed product - brand name licensed to other manufacturers who make product eg: Hello Kitty

Marketing Management - An Asian Perspective

4th Edition

devising a brand strategy3
Devising a Brand Strategy

Hello Kittylicensed to many products - credit cards, toasters, purses, confectionery & UNO card games

Marketing Management - An Asian Perspective

4th Edition

devising a brand strategy branding decision to brand or not to brand
Devising a Brand Strategy- Branding Decision: To Brand or not to Brand?

4 strategies

Choose brand names:

  • Individual names
  • Blanket family names
  • Separate family names for all products
  • Corporate name + individual product names

Marketing Management - An Asian Perspective

4th Edition

slide65

Table 9.3

Selecting a Brand Relationship Spectrum Position

Marketing Management - An Asian Perspective

4th Edition

devising a brand strategy brand extensions
Devising a Brand Strategy- Brand Extensions

ADVANTAGESOF BRAND EXTENSIONS

  • New Product Success:
    • New product expectations - parent brand
    • Reduce risk: convince retailers - promote
    • Reduced costs of launch
  • Positive Feedback Effects
    • Clarify brand meaning & core values
    • Renew interest - benefit parent brand - expand market coverage

Marketing Management - An Asian Perspective

4th Edition

slide67

Devising a Brand Strategy- Brand Extensions

Positive Feedback Effects:

An example

Nikonalliance with Essilor,

extended expertise in camera to eyewear lenses

Hopes consumers infer eyewear lenses- as reliable as its camera lenses

Marketing Management - An Asian Perspective

4th Edition

devising a brand strategy brand extensions1
Devising a Brand Strategy- Brand Extensions

DISADVANTAGES OF BRAND EXTENSIONS

  • Line-extension trap
  • Brand dilution
  • If inappropriate, integrity questioned
  • If fails - harm parent brand
  • Switch from parent brand - cannibalize parent
  • Forgo chance - create new brand

Marketing Management - An Asian Perspective

4th Edition

devising a brand strategy brand extensions2
Devising a Brand Strategy- Brand Extensions

SUCCESS CHARACTERISTICS

  • Extension - effectively leverage equity from parent brand to new product
  • Extension contributes - parent brand equity
  • Have “fit” in consumers’ minds
  • Mistake - fail to take all consumers’ brand knowledge structures into account

Marketing Management - An Asian Perspective

4th Edition

research insights on brand extensions
Research Insights on Brand Extensions

Marketing Management - An Asian Perspective

4th Edition

devising a brand strategy brand portfolios
Devising a Brand Strategy- Brand Portfolios

Brand portfolio

  • All brands & lines - buyers in category

Multiple brands in a category – WHY?

  • Multiple market segments
  • Shelf presence & retailer dependence
  • Attract variety-seekers – prevent switch
  • Increase internal competition
  • Economies of scale

Marketing Management - An Asian Perspective

4th Edition

devising a brand strategy brand portfolios1
Devising a Brand Strategy- Brand Portfolios
  • Basic portfolio design principle:
    • Maximize market coverage
    • Minimize brand overlap
  • Monitor, identify weak brands & kill unprofitable ones
  • Brand lines - poor brand differentiation - cannibalization & pruning

Marketing Management - An Asian Perspective

4th Edition

devising a brand strategy brand portfolios2
Devising a Brand Strategy- Brand Portfolios
  • Brand roles in Brand portfolio
  • Flankers
  • Cash cows
  • Low-end entry-level
  • High-end prestige

Marketing Management - An Asian Perspective

4th Edition

slide74

Final discussion

Marketing Debate - Are Line Extensions Good or Bad?

Some critics vigorously denounce the practice of brand

extensions, as they feel that too often companies lose focus

and consumers become confused. Other experts maintain

that brand extensions are a critical growth strategy &

source of revenue for the firm.

Take a position: Brand extensions can endanger brands

versus brand extensions are an important brand growth

strategy.

Marketing Discussion

How can you relate the different models of brand equity

presented in the chapter? How are they similar? How are

They different? Can you construct a brand equity model

That incorporates the best aspects of each model?

Marketing Management - An Asian Perspective

4th Edition

video links
Video Links

Primary Videos to watch:

  • Federated Direct (7:58 min)
  • Swiss Army (9:06 min)

Secondary Video to watch:

  • Dunkin’ Donuts (10:30 min)

Click here to watch the video clips from the US Website.

Marketing Management - An Asian Perspective

4th Edition