Marketing Management

Arab World Edition

Kotler, Keller, Hassan, Baalbaki and Shamma

Chapter 9
Creating
Brand Equity
Chapter Questions

1. What is a brand and how does branding work?

2. What is brand equity?
3. How is brand equity built, measured, and managed?
4. Exercise to build a brand

Copyright © 2012 Pearson Education 9-3

 Chapter Question 1:
What is a brand and how
What is a Brand and How Does does branding work?

Branding Work?

What is a 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.

Copyright © 2012 Pearson Education 9-4

 Chapter Question 1:
What is a brand and how
does branding work?

The Role of Brands

• Identify the maker
• Simplify product handling
• Organize accounting
• Offer legal protection
• Signify quality
• Create barriers to entry
• Serve as a competitive advantage
• Secure price premium

Copyright © 2012 Pearson Education 9-5

 Chapter Question 1:
What is a brand and how
Top brands 2015 does branding work?

Copyright © 2012 Pearson Education 9-6

 Chapter Question 1:
What is a brand and how
Top Saudi Brands 2017 does branding work?

Copyright © 2012 Pearson Education 9-7

 Chapter Question 1:
What is a brand and how
does branding work?

The Scope of Branding

What is branding?
• Branding is endowing products and services with the power
of the brand.

Copyright © 2012 Pearson Education 9-8

 Chapter Question 2:
What is brand equity?

Defining Brand Equity

• Brand equity is the added value endowed on products and

services.
• It may be reflected in the way consumers think, feel and act
towards the brand.

Copyright © 2012 Pearson Education 9-9

 Chapter Question 2:
What is brand equity?

Brand Equity as a Bridge

• Brand equity can be thought of as providing marketers

with a vital strategic ‘bridge’ from their past to their future
• A brand promise is the marketer’s vision of what the
brand must be and do for consumers.

Copyright © 2012 Pearson Education 9-10

 Chapter Question 2:
What is brand equity?

Brand Equity Models

Four established brand equity models:

• Brand Asset Valuator (BAV)
• BRANDZ
• Aaker Model
• Brand Resonance

Copyright © 2012 Pearson Education 9-11

 Chapter Question 2:
What is brand equity?

Brand Equity Models

Brand Asset Valuator (BAV)
(Y&R) = 500.000 X 44 Count X 1000s Brands

Key Components (D.E.R.E.K.): (D.E.R.E.K.):

• Differentiation D + E + R = energized brand
strength
• Energy Sense of momentum
Future value
• Relevance Brand’s Appeal

• Esteem Respected
E + K = Brand Stature
• Knowledge Familiar & intimate
Past Performance

Copyright © 2012 Pearson Education 9-12

 Chapter Question 2:
What is brand equity?

Brand Equity Models

BRANDZ

Fig. 9.2: BrandDynamics Pyramid

Copyright © 2012 Pearson Education 9-13

 Chapter Question 2:
What is brand equity?

Brand Equity Models

Aaker Model
Key Components: Brand Management start with :

• Brand identity 8-12 elements

• Core identity elements Scope/attributes/value/quality

• Extended identity elements organizational attributes/ band

personality

• Brand essence Inspiring communication

Copyright © 2012 Pearson Education 9-14

 Chapter Question 2:
What is brand equity?
Brand Equity Models
Brand Resonance Model ‫صدى‬

Fig. 9.3: Brand Resonance Pyramid

Copyright © 2012 Pearson Education 9-15

 Chapter Question 3:
How is brand equity built,
Building Brand Equity measured and managed?

Three ways to build brand equity (“drivers”):

1. Brand elements:

• The initial choices for the brand elements or identities making up the
brand.

• Brand names, URLs, logos, symbols, characters, spokespeople,

slogans, jingles, packages, and signage.

2. Marketing activities:

• The product and service and all accompanying marketing activities and
supporting marketing programs.

3. Leveraging secondary associations

• Linking the brand to other information meaningful to consumers.

Copyright © 2012 Pearson Education 9-16

 Chapter Question 3:
How is brand equity built,
measured and managed?

Choosing Brand Elements

Brand element choice criteria:

1. Memorable: easy to recall
2. Meaningful: suggest something relate to the product.
3. Likeability: Appealing
4. Transferable: Wide to new products (Amazon)
5. Adaptable: Updatable
6. Protectable: How legally protectable (Apple Vs Generic
Fiberglass-Xerox)

Copyright © 2012 Pearson Education 9-17

 Chapter Question 3:
How is brand equity built,
measured and managed?

Designing Holistic Marketing

Activities
Holistic marketers emphasize three themes in designing brand-
building marketing programs:
•Personalization: Mass MkT 50s- Permission MkT
•Integration: from brand identity to brand Image
•Internalization :
• Internal branding : Activities inspire employees (Disney)

Copyright © 2012 Pearson Education 9-18

 Chapter Question 3:
How is brand equity built,
Leveraging Secondary measured and managed?

Associations

• The third way to build

brand equity is to
‘borrow’ it.
• Linking the brand to
other information
meaningful to
consumers.

Fig. 9.4: Secondary Sources of Brand

Knowledge

Copyright © 2012 Pearson Education 9-19

 Chapter Question 3:
How is brand equity built,
measured and managed?

Measuring Brand Equity

Two basic approaches to measuring brand equity:

• Indirect approach:
assesses potential sources of brand equity by identifying and tracking
consumer brand knowledge structures

• Direct approach:
assesses the actual impact of brand knowledge on consumer response to
different aspects of the marketing

Copyright © 2012 Pearson Education 9-20

 Chapter Question 3:
How is brand equity built,
measured and managed?

Measuring Brand Equity

• Brand audit:
a consumer-focused exercise to assess the health of the brand, uncover its
sources of brand equity, and suggest ways to improve and leverage its
equity.

• Brand-tracking studies:
collect quantitative data from consumers to provide baseline information
about how brands and marketing programs are performing.

Copyright © 2012 Pearson Education 9-21

 Chapter Question 3:
How is brand equity built,
measured and managed?

Brand Valuation

Brand valuation: an estimate of the total financial value of the brand.

Copyright © 2012 Pearson Education 9-22

 Chapter Question 3:
Brand Valuation How is brand equity built,
measured and managed?

Table 9.2: The World’s 10 Most Valuable Brands in 2010

Copyright © 2012 Pearson Education 9-23

 Chapter Question 3:
How is brand equity built,
measured and managed?

Fig. 9.6: Interbrand

Brand Valuation
Method

Copyright © 2012 Pearson Education 9-24

 Chapter Question 3:
How is brand equity built,
measured and managed?

Brand Revitalization

Brands can be affected by:

• Changes in consumer tastes and
preferences
• Emergence of new competitors
• New technologies
• New developments in the
marketing environment

Harley recovered from near bankruptcy and revitalized

its brand with a renewed commitment to quality and to
grass-roots marketing efforts that appeal to its image-
conscious customers.

Copyright © 2012 Pearson Education 9-25

 Chapter Question 4:
What are the important
Devising a Branding Strategy decisions in developing a
branding strategy?

When a firm introduces a new product, it has 3 main choices:

• It can develop new brand elements for the new product.
• It can apply some of its existing brand elements.
• It can use a combination of new and existing brand
elements.

Copyright © 2012 Pearson Education 9-26

 Chapter Question 4:
What are the important
Devising a Branding Strategy decisions in developing a
branding strategy?

Branding terms:

• Brand line • Line extension

• Brand mix • Category extension
• Brand extension • Branded variants
• Sub-brand • Licensed product
• Parent brand • Brand dilution
• Family brand • Brand portfolio

Copyright © 2012 Pearson Education 9-27

 Chapter Question 4:
What are the important
decisions in developing a
branding strategy?
Branding Decisions

Four general strategies for choosing brand names:

• Individual names
• Blanket family names
• Separate family names
• Corporate name/individual name combo

Copyright © 2012 Pearson Education 9-28

 Chapter Question 4:
What are the important
decisions in developing a
branding strategy?
Brand Extensions

Advantages of brand extensions:

• Improved odds of new-product success
• Positive feedback effects

Disadvantages of brand extensions

• Brand dilution
• Cannibalizing

Copyright © 2012 Pearson Education 9-29

 Chapter Question 4:
What are the important
decisions in developing a
branding strategy?
Brand Portfolios

Reasons for introducing multiple brands in a category include:

• Increasing shelf presence and retailer dependence in the store
• Attracting consumers seeking variety
• Increasing internal competition within the firm
• Yielding economies of scale in advertising, sales, merchandising,
and distribution

Copyright © 2012 Pearson Education 9-30

 Chapter Question 4:
What are the important
decisions in developing a
branding strategy?
Brand Portfolios

Brand roles in a brand portfolio:

• Flankers
• Cash cows
• Low-end, entry-level
• High-end prestige

Armani’s line of luxury clothing is differentiated to

appeal to three distinct price tiers, each with different
styles and levels of luxury and customization.

Copyright © 2012 Pearson Education 9-31

 Chapter Question 4:
What are the important
decisions in developing a
branding strategy?
Customer Equity

Copyright © 2012 Pearson Education 9-32

 Chapter Question 4:
What are the important
Exercise decisions in developing a
branding strategy?

Building A creative Brand

Build a creative Brand to your company -1
: Include -2
• Associated Word
• Slogan
• Color
• Design
• Logo
3- allocated time is 20-30 min
4- 2 Min for presentation
5- 1 Min for evaluation

Copyright © 2012 Pearson Education 9-33

 Credits

• Slide 1 Image courtesy of MyDiamond. Reproduced with permission

• Slide 13 BrandDynamics™ Pyramid. Reprinted by permission of
MillwardBrown Optimor; Figure 9.5 from Strategic Brand Management, 3rd
edition, Prentice Hall (Keller, K.L., 2008), copyright © 2008. Printed and
electronically reproduced by permission of Pearson Education, Inc., Upper
Saddle River, New Jersey
• Slide 22 Strategic Brand Management, 3rd edition, Prentice Hall (Keller,
K.L., 2008), copyright © 2008. Printed and electronically reproduced by
permission of Pearson Education, Inc., Upper Saddle River, New Jersey
• Slide 24 “The World’s Most Valuable Brands”, Forbes, 28 July 2010,
(Badenhausen, K.). Reprinted by permission of Forbes Media LLC, copyright
© 2011
• Slide 27 Getty Images: Justin Sullivan
• Slide 33 Corbis: WWD / Condé Nast
• Slide 34 Scott Bedbury, A New Brand World (New York: Viking Press,
2002). Copyright © 2001 by Scott Bedbury. Used by permission of Viking
Penguin, a division of Penguin Group (USA) Inc