Lecture 6 - Chapter 11

Creating Brand Equity

MRKT 209 – Spring 2019 - College of Business Administration (CBA), IAU.

Products are made in the factory but Brands are created in the mind.
Market Planning & Applications – MBA 2020 - IU Dr. Ahmad Faraz
 Key Learning:

• What is a brand and how does branding work

• Brand Equity
• How brand equity built, measured, and managed?
• What are the important decisions in developing a branding
strategy?
MRKT 209 – Spring 2019 - College of Business Administration (CBA), IAU.

Market Planning & Applications – MBA 2020 - IU Dr. Ahmad Faraz

 What is a Brand
One of the most valuable intangible asset of a firm is its
brands, and it is mandatory on marketing to properly manage
MRKT 209 – Spring 2019 - College of Business Administration (CBA), IAU.
their value. Building a strong brand is a never-ending process.

Market Planning & Applications – MBA 2020 - IU Dr. Ahmad Faraz

 Definition: Brand

A brand is 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.

MRKT 209 – Spring 2019 - College of Business Administration (CBA), IAU.

Market Planning & Applications – MBA 2020 - IU Dr. Ahmad Faraz

 Brand: Role
The role of Brands:
• Identify the maker
• Simplify product handling
• Organize accounting
• Offer legal protection
• Signify quality
MRKT 209 – Spring 2019 - College of Business Administration (CBA), IAU.

• Create barriers to entry

• Serve as a competitive advantage
• Secure price premium

Market Planning & Applications – MBA 2020 - IU Dr. Ahmad Faraz

 Branding
Branding is the process of creating a strong, positive perception
of your company and its products in your customers mind.

Branding is endowing products and services with the power of the brand.

Brand Equity
MRKT 209 – Spring 2019 - College of Business Administration (CBA), IAU.

Brand equity is the added value endowed on products and services,

which may be reflected in the way consumers, think, feel, and act with
respect to the brand.

Market Planning & Applications – MBA 2020 - IU Dr. Ahmad Faraz

 Advantages: Brands
• Improved perceptions of product performance
• Greater loyalty
• Less vulnerability to competitive marketing actions
• Less vulnerability to crises
• Larger margins
MRKT 209 – Spring 2019 - College of Business Administration (CBA), IAU.

• More inelastic consumer response

• Greater trade cooperation
• Increased marketing communications effectiveness
• Possible licensing opportunities

Market Planning & Applications – MBA 2020 - IU Dr. Ahmad Faraz

 Brand: Promise
A brand promise is the marketer’s vision of what the brand must be and do
for consumers.
A commitment to the people who interact with it.
It is often associated with the company’s name and logo.

MRKT 209 – Spring 2019 - College of Business Administration (CBA), IAU.

Market Planning & Applications – MBA 2020 - IU Dr. Ahmad Faraz

 Brand: Promise

MRKT 209 – Spring 2019 - College of Business Administration (CBA), IAU.

Market Planning & Applications – MBA 2020 - IU Dr. Ahmad Faraz

 Brand Equity: Models

▪ Brand Asset Valuator

▪ BRANDZ
▪ Brand Resonance

MRKT 209 – Spring 2019 - College of Business Administration (CBA), IAU.

Market Planning & Applications – MBA 2020 - IU Dr. Ahmad Faraz

 Brand Equity: Models (Young & Rubican)

▪ BRANDASSET® Valuator
A brand promise is the marketer’s vision of what the brand must be and do
for consumers.

Energized Differentiation
Relevance
Esteem
MRKT 209 – Spring 2019 - College of Business Administration (CBA), IAU.

Knowledge

Market Planning & Applications – MBA 2020 - IU Dr. Ahmad Faraz

 Brand Equity: Models
▪ BRANDASSET® Valuator

MRKT 209 – Spring 2019 - College of Business Administration (CBA), IAU.

Market Planning & Applications – MBA 2020 - IU Dr. Ahmad Faraz

 Brand Equity: Models (Millward Brown)
▪ BRANDZ Model

MRKT 209 – Spring 2019 - College of Business Administration (CBA), IAU.

Market Planning & Applications – MBA 2020 - IU Dr. Ahmad Faraz

 Brand Equity: Models
▪ BRAND RESONANCE MODEL
Views brand building as an ascending series of steps from bottom to top. Left side is rational
route to brand building and emotional route is on the right side.

MRKT 209 – Spring 2019 - College of Business Administration (CBA), IAU.

Market Planning & Applications – MBA 2020 - IU Dr. Ahmad Faraz

 Building : Brand Equity
By creating the right brand knowledge structure with the right consumers. The
success of this process depends on all brand related contacts.
Key brand equity drivers are:

• Brand Elements
• Marketing Activities
• Meaning Transference
MRKT 209 – Spring 2019 - College of Business Administration (CBA), IAU.

Market Planning & Applications – MBA 2020 - IU Dr. Ahmad Faraz

 Building : Brand Equity - Elements
Brand elements are devices which can be trademarked, that identify and
differentiate the brand. Nike has the distinctive “swoosh” logo, the
empowering “just do it” slogan and the “Nike” name from the Greek goddess
of victory. Brand elements choice criteria is;

• Memorable
• Meaningful
•
MRKT 209 – Spring 2019 - College of Business Administration (CBA), IAU.
Likable
• Transferable
• Adaptable
• Protectable

Market Planning & Applications – MBA 2020 - IU Dr. Ahmad Faraz

 Brand:

MRKT 209 – Spring 2019 - College of Business Administration (CBA), IAU.

Market Planning & Applications – MBA 2020 - IU Dr. Ahmad Faraz

 Brand Equity: Designing Holistic Marketing Activities
BMW launched MINI Cooper in 2002 in USA. It employed a broad mix of media as billboards,
posters, Internet, print , PR, product placement and grassroot activities.

MRKT 209 – Spring 2019 - College of Business Administration (CBA), IAU.

Market Planning & Applications – MBA 2020 - IU Dr. Ahmad Faraz

 Brand Equity: Measuring Brand Equity

MRKT 209 – Spring 2019 - College of Business Administration (CBA), IAU.

Market Planning & Applications – MBA 2020 - IU Dr. Ahmad Faraz

 Brand Equity: Why Measuring Brand Equity?

MRKT 209 – Spring 2019 - College of Business Administration (CBA), IAU.

Market Planning & Applications – MBA 2020 - IU Dr. Ahmad Faraz

 Brand Equity: Measurement process

MRKT 209 – Spring 2019 - College of Business Administration (CBA), IAU.

Market Planning & Applications – MBA 2020 - IU Dr. Ahmad Faraz

 Brand Equity: Most Valuable Brands 2019 (in million US$)

MRKT 209 – Spring 2019 - College of Business Administration (CBA), IAU.

Market Planning & Applications – MBA 2020 - IU Dr. Ahmad Faraz

 Managing: Brand Equity
Consumer response to marketing activity depends upon on what they know and remember about
a brand, as the brand value chain suggests, short-term marketing actions, by changing brand
knowledge necessarily increase or decrease the long-term success of future marketing actions.
▪ BRAND REINFORCEMENT
Markets reinforce brand equity by constantly conveying the brand's meaning in terms of
what product it represents, what core benefits it supplies and what needs it satisfy.
Keeping up with changes in consumer tastes and preferences.

MRKT 209 – Spring 2019 - College of Business Administration (CBA), IAU.

Market Planning & Applications – MBA 2020 - IU Dr. Ahmad Faraz

 Developing: Branding Strategy

• Develop new brand elements

• Apply existing brand elements
• Use a combination of old and new

MRKT 209 – Spring 2019 - College of Business Administration (CBA), IAU.

Market Planning & Applications – MBA 2020 - IU Dr. Ahmad Faraz

 Developing: Branding Strategy Example

MRKT 209 – Spring 2019 - College of Business Administration (CBA), IAU.

Market Planning & Applications – MBA 2020 - IU Dr. Ahmad Faraz

 Chapter Summery
• A brand is 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 are: Brand name, logos, symbols, package designs.
• Branding is creating a perception in consumer minds with the key differences among
brands in a product category.
• Brand equity should be defined in terms of marketing efforts uniquely attributes to a brand.
• Building brand equity depends upon three main factors as key brand identities, brand and
marketing program, the associations with the brand.
• MRKTA209branding strategy
– Spring 2019 - College shows(CBA),
of Business Administration what
IAU. brand elements will be chosen among the products of the

company.
• Brand name provided protection and a well defined positioning to maximize coverage.
Minimize overlap and optimize profit.
• Customer equity is complementary to brand equity as the sum of lifetime values of all the
customers of a brand.

Market Planning & Applications – MBA 2020 - IU Dr. Ahmad Faraz

 Next Class: Product Planning & Applications – 11 Mar 2020

Topic: Product and Pricing strategy

Chapter: 13 & 16.

MRKT 209 – Spring 2019 - College of Business Administration (CBA), IAU.

Market Planning & Applications – MBA 2020 - IU Dr. Ahmad Faraz