MKT – 501: Marketing Management and Decisions

KUSOM MBA
Fall 2020
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Lecture 07: Creating Brand Equity

© Sujan R Shrestha, MBA 2020

 How Does Branding Work?

American Marketing Association

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”
 The Scope of Branding

Branding
The process of endowing products and services with the
power of a brand
 The role of brands

Brands’ role for consumers

 Set and fulfill expectations

 Reduce risk
 Simplify decision making
 Take on personal meaning
 Become part of identity
 The role of brands

Brands’ role for firms

 Simplify product handling

 Organize inventory & accounting
 Offer legal protection
 Create brand loyalty
 Secure competitive advantage
Defining Brand Equity

Brand promise
The marketer’s vision of what the brand must be and do for consumers
Brand equity
Added value endowed to products with consumers
 Defining Brand Equity

Customer-based brand equity

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

 Differences in consumer response

 Brand knowledge
 Perceptions, preferences, and behavior
 Building Brand Equity

Brand equity drivers

Brand element or identity choices

Product System &

accompanying marketing strategies

Other secondary associations

Leveraging Secondary Associations
 Measuring Brand Equity

Brand equity drivers

Brand audit

Brand-tracking studies

Brand valuation
Brand Equity Measurement Models

BrandAsset® Valuator

Brandz Valuation

Brand Resonance Model

Net Promoter Score (NPS)

 Brand Equity Measurement Model 1

BrandAsset® Valuator
Differentiation
Relevance
Esteem
Knowledge

Brand Asset Valuator (BAV) is a metric applied for the measurement of brand value of an entity.
Brand Asset Valuator was developed by an agency called “Young and Rubicam”. 
 Brand Equity Measurement Model 1

BrandAsset® Valuator
Differentiation
Relevance
Esteem
Knowledge

Brand Asset Valuator (BAV) is a metric applied for the measurement of brand value of an entity.
Brand Asset Valuator was developed by an agency called “Young and Rubicam”. 
 Brand Equity Measurement Model 2

Brandz Valuation
Meaningful, different, & salient associations
Power, premium, & potential outcomes

BrandZ is a brand equity database managed by the marketing firm Millward Brown. It holds data from over
650,000 consumers and professionals across 31 countries, comparing over 23,000 brands.
The database is used to estimate brand valuations, and each year since 2006, has been used to generate a list of
the top 100 global brands.[
 Brand Equity Measurement Model 3

Brand Resonance Pyramid

Kevin Lane Keller developed the model and published it in his widely used textbook,
"Strategic Brand Management." Within a pyramid, the model highlights four key levels that you can work
through to create a successful brand.
 Brand Equity Measurement Model 4

Net Promoter Score (NPS)

Net Promoter or Net Promoter Score (NPS) is a management tool that can be used to gauge the
loyalty of a firm's customer relationships. The metric was developed by (and is a registered trademark
of) Fred Reichheld, Bain & Company and Satmetrix. It was introduced by Reichheld in his
2003 Harvard Business Review article, "The One Number You Need to Grow"
 Brand Equity Measurement Model 4

Net Promoter Score (NPS)

Net Promoter or Net Promoter Score (NPS) is a management tool that can be used to gauge the
loyalty of a firm's customer relationships. The metric was developed by (and is a registered trademark
of) Fred Reichheld, Bain & Company and Satmetrix. It was introduced by Reichheld in his
2003 Harvard Business Review article, "The One Number You Need to Grow"
Brand Equity Outcome

Brand value chain

 Managing Brand Equity Overtime

Brand reinforcement
Requires the brand always be moving
forward
Brand revitalization
Almost any kind starts with the product