MKT 300 Chapter 9

Interbrand's Brand Equity Formula of Brand Earnings

-Brand Sales -Costs of Sales -Marketing Costs -Overhead Expenses -Remuneration of capital charge -Taxation

Functions of Packaging

-Contain and Protect -Promote -Facilitate storage, use, and convenience -Facilitating Recycling

Persuasive Labeling

-Focuses on promotional theme -Consumer information is secondary

Informational Labeling

-Helps make proper selections -Lowers Cognitive Dissonance -Includes use/care

Brand Image and Personality

-Image- salient and feeling-related association. -Personality- specific "personality type" traits or characteristics ascribed by consumers to different brands. (masculine/feminine, calm/exciting)

Brand Equity (2)

-Indicative of "strength" of brand and brand "fit" with consumers. -Can also be so strong that brand name becomes the category name *Master Brand*

Interbrand's Brand Equity Formula of Brand Strength

-Leadership -Stability -Market -Geographic Spread -Trend -Support -Protection

Can package size accelerate usage volume?

-People pour from 15-40% more from large vs. small containers. -People perceive tall, slender glasses to hold more than short wide glasses.

Labeling Functions

-Persuasive -Informational

Building Strong Brands

-Provide Identity -Project the Right Message -Saves Time

4 Attributes of Strong Brands

1.) Consistent Brand Message. 2.) Focus on Long-Term Growth 3.) Manage Customer Experience 4.) Meaningful, Memorable, Likable

2 Branding Components

1.) Core Benefit -What is the customer really buying? 2.) Value Proposition -What does the brand deliver that customers value? -Must be competitively superior

Brand Asset Valuator (BAV)'s 4 Pillars

1.) Differentiation 2.) Relevance 3.) Esteem 4.) Knowledge -Important to note that the 4 Pillars have a multiplicative effect, accordingly if one of the pillars is equal to zero then there is no brand equity in total.

5 Roles of Brands

1.) Higher Perceived Quality 2.) Brand Extensions 3.) Greater Market Share 4.) Financial Strength 5.) Price Premium

4 Benefits of Brand Equity to Consumer

1.) Search Cost Reducer 2.) Signal of Quality 3.) Risk Reducer 4.) Symbolic Device

Brand Personality Framework

1.) Sincerity 2.) Excitement 3.) Competence 4.) Sophistication 5.) Ruggedness

6 Brand Elements

1.) Slogans 2.) Brand Names 3.) Websites 4.) Characters 5.) Color Schemes 6.) Logos

4 Benefits of Brand Equity to Companies

1.) Source of Competitive Advantage. 2.) Predictability and Security of Demand. 3.) Barriers to Entry. 4.) Financial Returns.

Aaker's Five Levels of Customer Attitude Toward Brand

5.) No Brand Loyalty (Customer Will Change) 4.) Satisfied Customer (no reason to change) 3.) Satisfied and Switching Cost 2.) Values the Brand (Brand as Friend) 1.) Devoted to Brand

Coke's Intangible Value

=5

Attributes of Strong Brands

A Strong Brand occupies a distinct position in consumer's minds based on relevant benefits and creates an emotional connection between business and consumers.

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.

Brand Elements

Benefits sellers by facilitating product introduction, repeat purchasing, and promotional efforts.

Brands are touch points to a consumer that stand for what?

Brands are a promise to deliver specific benefits associated with products or services to consumers.

Packaging

Effective packaging offers protection, economy, safety, and convenience.

How to measure intangible value

If (Market Value/ Tangible Asset)>1, then we have created intangible value.

Branding Strategies: Brand-No Brand

Manufacturers Brand -Individual Brand -Family Brand -Combination

Building Strong Brands Starts with

Positioning

Carl Jung on Brand Archetypes

Suggested that humans are not a "blank slate" but rather a combination of archetypes; "universal archaic patterns and images that device from the collective unconscious and are the psychic and are the psychic counterpart of instinct."

When Building Strong Brands

The greater the brand's attributes, benefits, and values: -The Higher Emotional Connection the customer will feel towards the brand. -It becomes increasingly difficult for competitors to copy positioning.

Labeling

Used for identification, promotional, and informational and legal purposes.

Brand Equity

is the marketing and financial value associated with a brand's strength. The major components of brand equity include brand name awareness, brand loyalty, perceived brand quality, and brand associations.