Chapter 9 - Creating brand equity. In this chapter, we will address the following questions: How do consumer characteristics influence buying behavior? What major psychological processes influence consumer responses to the marketing program? How do consumers make purchasing decisions? In what ways do consumers stray from a deliberative, rational decision process?
Phillip Kevin Lane Kotler • Keller Marketing Management • 14e a h C r e t p Creating Brand Equity Discussion Questions How consumer characteristics influence buying behavior? What major psychological processes influence consumer responses to the marketing program? How consumers make purchasing decisions? In what ways consumers stray from a deliberative, rational decision process? Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide of 37 Strategic Brand Management Plan Measure/ Interpret Identify Grow Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide of 37 d e in f e D 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.” Role of Brands Consumer Benefits Brands: •Identify source/maker •Simplifies decision making •Reduces risk Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide of 37 Role of Brands Marketer Benefits Brands: •Simplify product handling •Protect unique features •Create loyalty •Establish barriers to entry Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide of 37 Scope of Branding Creating difference between products Bran d Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide of 37 d e in f e D Brand Equity The added value endowed on products and services because of the brand Customer-based Brand Equity Differences in consumer response Consumers’ brand knowledge Perceptions, preferences, and behaviors Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 10 of 37 g i F e r u Secondary Source of Brand Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 23 of 37 Internal Branding Employee s Brand Promise Partners Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 24 of 37 Brand Communities Members have: • Brand Connection • Shared rituals/stories • Responsibility to community Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall H.O.G.® Harley Owners Group Slide 25 of 37 Measuring Brand Equity Brand Audit Brand-tracking Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 26 of 37 g i F e r u Brand Value Chain Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 27 of 37 World’s 10 Most Valuable Brands Ran k Brand 2009 Brand Value (Billions) Coca-Cola $68.7 IBM $60.2 Microsoft $56.6 GE $47.8 Nokia $34.9 McDonald’s $32.3 Google $32.0 Toyota $31.3 Intel $30.6 Disney $28.4 10 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 28 of 37 g i F e r u Interbrand Brand Valuation Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 29 of 37 Managing Brand Equity Brand Revitalization Brand Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 30 of 37 Branding Strategy Develop new brand elements Apply existing brand elements Combine new and existing elements Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 31 of 37 Branding Strategy Parent Brand (Master or Family Brand) Line Extension Tide -Fruit on the Bottom -Fruit Blends Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Category Honda Extension -Automobiles -Lawn Mowers Slide 32 of 37 Branding Decisions • • • • Individual Brand Names Bisquick Gold Medal Wheaties Yoplait Company Brand GE, Heinz, Campbell Soup Sub-brand Kellogg’s Rice Krispies, Frosted name Flakes… Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 33 of 37 d e in f e D Brand Portfolio A brand portfolio is the set of all brands and brand lines a particular firm offers for sale in a particular category or market segment Brand Portfolio - Sony Computer VAIO -notebook -desktop Digital Home Disc Burner Location Free mylo Software Cameras Television Portable s Electronic Theatre s Cyber-shot Televisions Alpha SLR Home theatre systems HandyCam Printers Digital picture frames Photo services Blu-ray Disc Walkman Video MP3 Rolly Reader Digital Book DVD players Sony Cell Phone Home audio components GPS Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Sony Pictures Movies -Theatre -DVD -Blue-ray Television -Comedy -Drama -Daytime -Cartoons Games PlayStatio n -PS3 -PS2 -Portable Music Slide 35 of 37 Brand Roles High-end Prestige Cash Cows Low-end Entry Level Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Flankers Slide 36 of 37 Brand Extensions Improve the odds of new-product success Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 37 of 37 ... Pictures Movies -Theatre -DVD -Blue-ray Television -Comedy -Drama -Daytime -Cartoons Games PlayStatio n -PS3 -PS2 -Portable Music Slide 35 of 37 Brand Roles High-end Prestige Cash Cows Low-end Entry... segment Brand Portfolio - Sony Computer VAIO -notebook -desktop Digital Home Disc Burner Location Free mylo Software Cameras Television Portable s Electronic Theatre s Cyber-shot Televisions Alpha... Brand) Line Extension Tide -Fruit on the Bottom -Fruit Blends Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Category Honda Extension -Automobiles -Lawn Mowers Slide 32 of