MKTG 5320 - Chapter 8 - Creating Brand Equity and Driving Growth

3 ingredients of customer-based brand equity

1. brand equity arises from differences in consumer response 2. differences in response are a result of consumers' brand knowledge 3. brand equity is reflected in perceptions, preferences, and behavior related to all aspects of the bran's marketing

3 choices of brand strategy

1. develop new brand elements for the new product 2. apply some existing brand elements 3. use a combination of new and existing brand elements

4 main steps of strategic brand management

1. identifying and establishing brand positioning 2. planning and implementing brand marketing 3. measuring and interpreting brand performance 4. growing and sustaining brand value

5-step model to estimate brand value

1. market segmentation to determine variations among the brand's investment 2. financial analysis to assess purchase price, volume, and frequency and help calculate accurate forecasts of future brand sales and revenues 3. market research to assess the role of branding and calculate the percentage of economic earnings generated by the brand, which yields brand earnings 4. assess the brand's strength and determine the likelihood that the forecasted brand earnings will be realized 5. calculate the brand value, the net present value (NPV) of the forecasted brand earnings, discounted by the brand discount rate

3 main sets of brand equity drivers

1. the initial choices for the brand elements or identities making up the brand (urls, names, logos, symbols, etc) 2. the product and service and all accompanying marketing activities and supporting programs 3. other associations indirectly transferred to the brand by linking it to some other entity (a person, place, or thing)

marketers can reinforce brand equity by consistently conveying the brand's meaning in terms of

1. what products it represents, what core benefits it supplies, and what needs it satisfies 2. how the brand makes products superior and which strong, favorable, and unique brand associations should exist in consumers' minds

branZ and band dynamics

Brown and WPP's model of brand equity based on a system of brand associations-meaningful, different, and salient-that builds customer predisposition to buy a brand 3 outcome measures: power, premium, and potential

6 criteria for brand elements

Building: memorable meaningful likeable Defending: transferable, adaptable, and protectable

BrandAsset Valuator

Young and Rubican's model of brand equity covers 4 pillars: energized differentiation relevance esteem knowledge

brand audit

a focused series of procedures to assess the health of the brand, uncover its sources of brand equity, and suggest was to improve and leverage its equity

brand

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

brand knowledge

all of the thoughts, feelings, images, experiences, and beliefs associated with the brand

brand contact

any information-bearing experience, whether positive or negative, a customer or prospect has with the brand, its product category, or its market

indirect approach to measuring brand equity

assesses potential sources of brand equity by identifying and tracking consumer brand knowledge structures

direct approach to measuring brand equity

assesses the actual impact of brand knowledge on consumer response to different aspects of the marketing

3 established brand equity models

brandasset valuator brandZ and brand dynamics brand resonance model

strategic brand management

combines the design and implementation of marketing activities and programs to build, measure, and manage brands to maximize their value

internal branding

consists of activities and processes that help inform and inspire employees about brands

brand valuation

estimating the total financial value of the brand

integrated marketing

mixing and matching marketing activities to maximize their individual and collective effects

branding strategy (aka brand architecture)

reflects the number and nature of both common and distinctive brand elements

brand equity

the added value endowed to products and services with consumers

customer-based brand equity

the differential effect brand knowledge has on consumer response to the marketing of that brand

brand promise

the marketer's vision of what the brand must be and do for customers

branding

the process of endowing products and services with the power of a brand

brand elements

trademarkable devices that identify and differentiate the brand

brand-tracking studies

use the brand audits as input to collect quantitative data from consumers over time, providing consistent, baseline information about how brands and marketing programs are performing

brand resonance model

views brand building as an ascending series of steps enacting these steps means establishing a pyramid of six "brand building blocks" emphasizes the duality of brands: rationality and emotion