BUILDING, MEASURING, AND MANAGING BRAND EQUITY Chapter 1 Brands & Brand Management

Kevin Lane Keller Amos Tuck School of Business Dartmouth College

STRATEGIC BRAND MANAGEMENT

Slides re-arranged by Polboon N.

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Product VS Brand
A product is anything that can be offered to the market for attention , acquisition, use, or consumption that might satisfy a need or want. Thus, a product can be a physical good, service, organization, place or ideas. A brand is a product but adds other dimensions that differentiate it in some way from other products designed to satisfy the same need.
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What is a Brand?
A brand is a name, term, sign, symbol, or design which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.

Examples of brands of computer products

Brand Elements

A variety of brand elements can be chosen that inherently enhance brand awareness or facilitate the formation of strong, favorable, and unique brand associations:

Brand Name Logo Symbol Character Packaging Slogan

Why do brand matter? To consumers

Identification of sources of product Assignment of responsibility to product maker. Risk reducer Search cost reducer Symbolic device Signal of quality Promise or bond with product or maker

Why do brand matter? To Manufacturer

Means of identification to simplifying handling and tracing. Means of legally protecting unique feature. Signal of quality Means of endowing products with unique associations. Sources of competitive advantage Sources of financial returns.

Branding Challenges & Opportunities

Knowledgeable consumers. Brand Proliferation Media Fragmentation Increased competition Increased costs of introducing new product or supporting existing product. Greater accountability

Brand Elements Choice Criteria: General Considerations

Memorable
Easily Recognized Easily Recalled

Meaningful
Credible & Suggestive Rich Visual & Verbal Imagery

Appealing
Fun & Interesting Aesthetics
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Brand Elements Choice Criteria: General Considerations (continue)

Adaptable
Flexible & Updateable

Protectable
Legally Competitively

Transferable
Within & Across Product Categories Across Geographical Boundaries &

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Can anything be branded?

Physical goods Services Retailers On-line product On-line service People Organization Sports, Arts, Entertainment Geographic location Ideas
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Brand Value
Examples of brand value 2001 ( Million US$)
Coca-cola Microsoft IBM 52 GE 42 Nokia 35 Intel 34 Disney 32 McDonald Sony 15 Honda 14 BMW 13 69 65

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Keys to enduring Brand Leadership

Vision of mass market Managerial persistence Financial commitment Relentless innovation Asset Leverage

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Strategic Brand Management

Brand Vision Brand Values & Brand Positioning Brand Marketing objectives Brand Marketing strategies Brand Marketing Programs Implementing brand marketing program Measuring brand performance Growing and sustaining brand equity
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Strategic Brand Management Process

1. Identifying brand vision, core brand values and brand positioning. 2. Planning and implementing brand marketing programs 3. Measuring brand performance 4. Growing and sustaining brand equity

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Strategic Brand Management Process

STEPS KEY CONCEPTS
Mental maps Competitive frame of reference Points-of-parity and points-of-difference Core brand values Brand mantra Mixing and matching of brand elements Integrating brand marketing activities Leveraging of secondary associations Brand Value Chain Brand audits Brand tracking Brand equity management system Brand-product matrix Brand portfolios and hierarchies Brand expansion strategies Brand reinforcement and revitalization

Identify and Establish Brand Positioning and Values

Plan and Implement Brand Marketing Programs

Measure and Interpret Brand Performance

Grow and Sustain Brand Equity

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Brand Vision Core brand value & Positioning

Brand vision What the brand should stand for in the future. Core brand values set of abstract associations that characterize a brand. A brand mantra is a short 3-5 words expression of the most important aspect of a brand and its core brand values.

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Brand Vision Core brand value & Positioning

Brand Positioning the act of designing the companys offer and image so that it occupies a distinct and values placed in the target consumers mind. The goal is to locate the brand in the minds of consumers. Competitive brand positioning creating brand superiority in the minds of consumers. Brand Positioning a specification of brand core values and brand mantra.
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Brand Equity Customer-based Brand Equity

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Brand Equity

Brand Equity the added values endowed to product or service.

Brand Awareness Brand Image / Brand salience Awareness Brand Experiences / Brand Users Brand loyalty

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The Concept of Customer-Based Brand Equity

Brand Relationship (What about you and me?) Brand response (What about you?) Brand Meaning (what are you?) Brand Identity (Who are you?)

Resonance

Judgment Brand Performance

Feeling Brand Imagery

Brand Salience Brand awareness

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The Concept of Customer-Based Brand Equity

Brand Relationship (What about you and me?) Brand response (What about you?) Brand Meaning (what are you?) Brand Identity (Who are you?) Loyalty Commitment Engagement
Quality Creditability Superiority Warm, secure Fun, excitement Social approval, etc.

Product characteristics Profiles, usage, Effectiveness, Reliability Personality & values Design ,price Experiences

Category identification

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Benefits of Brand Equity

Enjoy greater brand loyalty, usage, and affinity Command larger price premiums Receive greater trade cooperation & support Increase marketing communication effectiveness Yield licensing opportunities Support brand extensions.
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Beverage Category Hierarchy Water

Beverage

Others

Non-Alcoholic Juices Milk Hot beverage Soft drinks ?

Alcoholic Wine Beer

Distilled Spirits

?
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The Key to Branding

For branding strategies to be successful, consumers must be convinced that there are meaningful differences among brands in the product or service category. Consumer must not think that all brands in the category are the same. PERCEPTION = VALUE

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Discussion Workshop Product & Brand

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Topics of discussion
Assignment: Students bring a product or a brochure of product or service to discuss in class. 1. 2. 3. 4. 5. What product / service ? What brand? What product category? What market? Who are in the market? What do you know about the category? What could be the consumer expectation from this category? 6. What do you know about the chosen product/service? 7. What you should know about the product/service if you are a brand / product manager? 8. What is the product benefit? 9. What is the consumer benefit of the product? 10.How does this brand different from others? 11.What it the brand mantra? Slogan? Is it convincing?
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Next Class Session 3: 17 November 2550 What do Brand Manager Actually do?
Guest lecturer Khun Anan Teerawichakul Brand Manager : Vitamilk

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1. Market Analysis Reading: Lehman & Wine Chapter 3 & 4 2. Submit individual paper 3. Be prepared to discuss market analysis of a product market in class.

Session 4: 24 November 2550

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Individual Assignment
Choose 1 of the following topics, do some study from books, internet, market survey, talking to consumers, talking to sellers, etc. and write a short report, 4 to 5 pages. Please do not copy each other. TOPICS Product X: Initial Market & Product Information Consumers Information and the consumer insights Product Category X

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Individual Assignment

Product X: Initial Market and Product Information

Type of product / service Size of market and potential ( if information is available) Key Players in the market Leading Brand Market Segmentation Distribution structure Market influencers

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Individual Assignment

Consumers Information and the consumer insights Product Category X

Type of product / service The end-consumers or end-users The purchasers & the influencers The end-consumer's needs, desires, preferences. The general product expectation. The potential added-value related to the product Use and usage behavior What else should we know about the consumers of the studied products.
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Group Work Assignment

1 2 3 Product and pricing Strategy of a food product X Product and pricing Strategy of a consumer product X Product and pricing strategy of a Food or consumer service business X 4 A Market Analysis of Product Category X. 5 A SWOT analysis of a consumer product X Explain the process how the assignment is done. (20%) Report maximum of 8 pages (50%) Presentation 15 minutes for each group (30%)

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Mid-Term Exam
Be prepare to express your knowledge about Basic Marketing Principles Product Management concept Brand, Brand Equity, Brand Management concept Market Analysis

Midterm exam period 14-24 December 2550

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