Kevin Lane Phillip

Kotler • Keller

Marketing Management • 14e

Creating Brand Equity

Discussion Questions

1. How do consumer characteristics influence buying behavior?

2. What major psychological processes influence consumer responses to the marketing program?

3. How do consumers make purchasing decisions?

4. In what ways do consumers stray from a deliberative, rational decision process?

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 3 of 37

Strategic Brand Management Plan Measure/ Interpret Identify Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Grow Slide 4 of 37

Brand “A name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.”

Role of Brands Consumer Benefits Brands: • Identify source/maker • Simplifies decision making • Reduces risk Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 6 of 37

Role of Brands Marketer Benefits Brands: • Simplify product handling • Protect unique features • Create loyalty • Establish barriers to entry Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 7 of 37

Scope of Branding Creating difference between products Brand Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 8 of 37

Brand Equity The added value endowed on products and services because of the brand.

Customer-based Brand Equity Differences in consumer response Consumers’ brand knowledge Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Perceptions, preferences, and behaviors Slide 10 of 37

Brand Promise What the brand must be and do for consumers.

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Brand Equity Models • • • BrandAsset Valuator (BAV) BrandZ Brand Resonance Model Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 12 of 37

BrandAsset® Valuator Model Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 13 of 37

These brands have relevance, but only to a small audience.

Universe of Brand Performance Customers find these brand irresistible. They have high earnings and margin power.

These brands can’t overcome what is already known about them.

These brands are not well known. Many are new, others are lost.

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Brand Dynamics Pyramid Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 15 of 37

Brand Resonance Pyramid Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 16 of 37

Building Brand Equity Brand Elements Brand Equity Secondary Associations Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Marketing Activities Slide 17 of 37

Brand Elements • • • • • • • • • • Brand Names URLs Logos Symbols Characters Spokespeople Slogans Jingles Packages Signage Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 18 of 37

Brand Element Choice Criteria Brand Builders Memorable Meaningful Likable Defensive Transferable Adaptable Protectable Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 19 of 37

Developing Brand Elements What was the name of that cookie I like?

• • • Easy to recall Descriptive Persuasive Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 20 of 37

Holistic Marketing Activities Observation Interactions w/company Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Word of Mouth Slide 21 of 37

Secondary Associations Brand Geographic Regions Other Brands Characters Spokespeople Sporting Events Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 22 of 37

Secondary Source of Brand Knowledge Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 23 of 37

Internal Branding Employees Brand Promise Partners Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 24 of 37

Brand Communities Members have: • Brand Connection • • Shared rituals/stories Responsibility to community Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

H.O.G.

® Harley Owners Group

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Measuring Brand Equity Brand Audit Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Brand-tracking Studies Slide 26 of 37

Brand Value Chain Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 27 of 37

World’s 10 Most Valuable Brands

Rank

1 2 3 4 5 6 7 8 9 10

Brand

Coca-Cola IBM Microsoft GE Nokia McDonald’s Google Toyota Intel Disney Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

2009 Brand Value (Billions)

$68.7

$60.2

$56.6

$47.8

$34.9

$32.3

$32.0

$31.3

$30.6

$28.4

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Interbrand Brand Valuation Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 29 of 37

Managing Brand Equity Brand Revitalization Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Brand Reinforcement Slide 30 of 37

Branding Strategy Develop new brand elements Apply existing brand elements Combine new and existing elements Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 31 of 37

Branding Strategy Parent Brand (Master or Family Brand) Line Extension Tide Fruit on the Bottom Fruit Blends Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Category Extension Honda Automobiles Lawn Mowers Slide 32 of 37

Branding Decisions Individual Brand Names • • • • Bisquick Gold Medal Wheaties Yoplait Company Brand GE, Heinz, Campbell Soup Sub-brand name Kellogg’s Rice Krispies, Frosted Flakes… Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 33 of 37

Brand Portfolio A brand portfolio is the set of all brands and brand lines a particular firm offers for sale in a particular category or market segment.

Brand Portfolio - Sony

Computer Cameras VAIO

-notebook -desktop Digital Home Disc Burner Location Free mylo Software Cyber-shot Alpha SLR HandyCam Printers Digital picture frames Photo services

Televisions Theatre

Televisions Home theatre systems Blu-ray Disc DVD players Home audio components

Portable Electronics

Walkman Video MP3 Rolly Reader Digital Book Sony Cell Phone GPS

Sony Pictures Movies

-Theatre -DVD -Blue-ray

Television

-Comedy -Drama -Daytime -Cartoons Music

Games PlayStation

-PS3 -PS2 -Portable Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 35 of 37

Brand Roles High-end Prestige Cash Cows Low-end Entry Level Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Flankers Slide 36 of 37

Brand Extensions Improve the odds of new-product success Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 37 of 37