Transcript KotlerMM_ch09

1
9
Creating Brand Equity
A Brand-new
World
Chapter Questions
What is a brand and how does branding
work?
 What is brand equity?
 How is brand equity built, measured, and
managed?
 What are the important decisions in
developing a branding strategy?

9-3
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.
Brand
9-4
Financial Values of Strong Brands
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Akuisisi Rowntree oleh Nestle (Juni 1988; The
New York Times, 24 Juni 1988)
Akuisisi Kraft oleh Philip Morris (Oktober 1988;
Coll, 1988)
Philip Morris dan Nestle bersedia membayar
lebih dari 6 kali lipat dan 5 kali lipat dari nilai
buku perusahaan (book value) dari masingmasing perusahaan yang dibelinya karena
brand Kraft dan Rowntree dianggap mempunyai
nilai ekonomis yang sangat besar.
Building and Sustaining
Brand Equity © Ike Janita
Dewi
The World’s Most Valuable Brands (2008)
No
Name of Brands
Valuation
Country of Origin
1.
COCA-COLA
65,324
U.S
2.
MICROSOFT
58,709
U.S
3.
IBM
57,091
U.S
4.
GE
51,569
U.S
5.
NOKIA
33,696
Finland
6.
TOYOTA
32,070
Japan
7.
INTEL
30,954
U.S
8.
McDONALD’S
29,398
U.S
9.
DISNEY
29,210
U.S
10.
MERCEDES-BENZ
23,568
Germany
7
Chapter 12
Figure 9.7
Interbrand Brand Valuation Method
Asian Brands
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The brutal truth is that branding
is misunderstood by decisionmakers in Asia (excluding Japan)
There exists widespread
misconceptions and, in many
cases, a certain degree of
ignorance over the value and
role of brands as well as the
process required to build them.
Surveys confirm that Asians from
across the region prefer Western
brands to homegrown ones.
The continued absence of
genuinely great Asian brands will
slow the Asian prospect.
A Brand is not made
in the factory but in
the mind of the
consumers
Attributes of Strong Brands
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Excels at delivering
desired benefits
Stays relevant
Priced to meet
perceptions of value
Positioned properly
Communicates
consistent brand
messages
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Well-designed brand
hierarchy
Uses multiple
marketing activities
Understands consumerbrand relationship
Supported by
organization
Monitors sources of
brand equity
9-11
The Role of Brands
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Identify the maker
Simplify product
handling
Organize accounting
Offer legal protection
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Signify quality
Create barriers to
entry
Serve as a
competitive
advantage
Secure price premium
9-12
Branding
Endowing products and services
with the power of a brand.
9-13
Brand Equity
The differential effect that brand
knowledge has on consumer
response to the
marketing of that brand.
9-14
Brand Associations
Strong
 Unique
 Favorable
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9-15
Marketing Advantages of Strong Brands
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Improved perceptions
of product performance
Greater loyalty
Less vulnerable to
competition
Less vulnerable to
crises
Larger margins
Inelastic consumer
response to price
increases
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Elastic consumer
response to price
decreases
Greater trade
cooperation
Increase in
effectiveness of IMC
Licensing opportunities
Brand extension
opportunities
9-16
Brand Promise
The marketer’s
vision of what
the brand must be
and do for
Consumers.
9-17
Brand Equity Models
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Brand Asset Valuator
 Aaker Model
 BRANDZ
 Brand Resonance
9-18
Brand Resonance Pyramid (Keller, 2002)
9-19
Rational & Emotional Routes to Brand Building
9-20
Drivers of Brand Equity
Brand
elements
 Marketing
activities
 Meaning
transference
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9-21
Brand Element Choice Criteria
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Memorable
Meaningful
Likeability
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Transferable
Adaptable
Protectible
9-22
Brand Elements
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Brand names
Slogans
Characters
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URLs
Logos
Symbols
9-23
9-24
Slogans
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Like a good neighbor,
State Farm is there
Just do it
Nothing runs like a
Deere
Help is just around the
corner
Save 15% or more in 15
minutes or less
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We try harder
We’ll pick you up
Nextel – Done
Zoom Zoom
I’m lovin’ it
Innovation at work
This Bud’s for you
Always low prices
9-25
Innovative
slogan
9-26
Strong slogan to
support a brand
9-27
Designing Holistic Marketing Activities
Brands are not built by advertising alone.
Brand building marketing programs:
 Personalization
 Integration
 Internalization
9-28
The Importance of After-Sales Support in
Consumer Decision Journey
Welcome to Apple Genius Bar.
The Genius Bar is a tech support
station located inside every Apple
Retail Store, the purpose of which
is to offer help and support for
Apple products. Ron Johnson, the
Senior Vice President for Retail,
has often referred to the Genius
Bar as the "heart and soul of our
stores". Employees are specially
trained and certified at the Genius
Bar. Their role is to help
customers with Apple hardware
and software. All in-store repairs
of Apple products are carried out
by "Geniuses", formerly known as
Mac Geniuses.
Managing Brand
Experience:
Nike+ Experience
Measuring Brand Equity
Brand audits
 Brand tracking
 Brand valuation
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9-31
Interbrand’s Brand Equity Formula
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Brand earnings
Brand sales
Costs of sales
Marketing costs
Overhead expenses
Remuneration of capital
charge
Taxation
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Brand strength
Leadership (25%)
Stability (15%)
Market (10%)
Geographic spread
(25%)
Trend (10%)
Support (10%)
Protection (5%)
9-32
Managing Brand Equity
Brand reinforcement
 Brand revitalization
 Brand crises
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9-33
Devising a Branding Strategy
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Develop new brand elements
Apply existing brand elements
Use a combination of
old and new
9-34
Branding Terms
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Brand line
Brand mix
Brand extension
Sub-brand
Parent brand
Family brand
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Line extension
Category extension
Branded variants
Licensed product
Brand dilution
Brand portfolio
9-35
Brand Extensions
Advantages
- New-Product Success
- Positive Feedback Effects
 Disadvantages
- Brand Dilution
- Cannibalization
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9-36
Brand Naming
Individual names
 Blanket family names
 Separate family names
 Corporate name/individual name combo
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9-37
Brand Roles in a Brand Portfolio
Flankers
 Cash cows
 Low-end entry-level
 High-end prestige
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9-38
Everything can be branded!
Building and Sustaining
Brand Equity © Ike Janita
Dewi
Building a Strong Service Brand: Lessons
from Mayo Clinic
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Mayo Clinic has developed one
of the most powerful service
brands in the world.
Three branding lessons:
1. attend to organizational
values.
2. play defense, not just offence
3. turn customers into marketers
Berry and Seltman (2007), Building a Strong Service Brand: Lessons from
Mayo Clinic, Kelley School of Business, www. elsevier.com/locate/bushor
A Service Branding Model
Organization’s
Presented Brand
Brand Awareness
External Brand
Communications
Customer Experience
with Organization
Brand Equity
Brand Meaning
Berry and Seltman (2007), Building a Strong Service Brand: Lessons from
Mayo Clinic, Kelley School of Business, www. elsevier.com/locate/bushor
Service Branding Model vs Goods Branding Model
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Customers’ actual experiences are salient in
both models.
But, for labor-intensive services those
experiences are primarily with people rather
than manufactured goods.
In services, it is the organization that’s
typically branded (because the experience
comes from the organization).
For physical goods, the product is the brand.