Phillip Kevin Lane

Kotler • Keller
Marketing Management • 14e
 r 9
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Creating Brand Equity

Discussion 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. What are the important decisions in
developing a branding strategy?

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 ed
fin
De 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

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 Role of Brands
Marketer Benefits

Brands:
• Simplify product handling
• Protect unique features
• Create loyalty
• Establish barriers to entry

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Scope of Branding

Creating difference between products

Brand

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 What is Branding?

The process involved in creating a unique name and  image for a

product in the  consumer’s mind, mainly through  advertising
campaigns with a  consistent theme. Branding aims to  establish a 
significant and differentiated presence in the  market  that attracts and
retains loyal  customers .

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

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 ed
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De Brand Equity
The added value endowed on products and services because of
the brand. It may be reflected in the way consumers think, feel,
and act with respect to the brand, as well as in the prices, market
share, and profitability the brand commands.
https://www.inc.com/business-insider/amazon-google-most-valua
ble-brands-brand-finance-2018.html
https://www.forbes.com/powerful-brands/list/#tab:rank
Brand Promise

What the brand must be

and do for consumers.

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Brand Equity Models

• Brand Asset Valuator (BAV)

• Aaker Model

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 . 1
e 9
u r
Fig BrandAsset® Valuator Model

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 Brand Asset Value (BAV): Key Components

• Differentiation measures the degree to which a brand

is seen as different from others, and its perceived
momentum and leadership. Rolls-Royce and Disney
stand out from other cars and theme parks.
• Relevance measures the appropriateness and breadth
of a brand’s appeal. Relevance gauges the personal
appropriateness of a brand to consumers and is
strongly tied to household penetration (the
percentage of households that purchase the brand).
Shan Masala, Maggi, Kissan Ketchup are all strong
examples of relevance to the entire household.

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 Brand Asset Value (BAV):
• Esteem – (Does the Brand Keep the promise?)The consumer's response to
a marketer's brand-building activity is driven by his perception of two
factors: quality and popularity, both of which vary by country and culture.
Brands such as apple, suzuki, Pepsi are esteemed in the consumer’s mind,
based on popularity more than quality.
Esteem measures perceptions of quality and loyalty, or how well the brand
is regarded and respected.

• Knowledge measures how aware and familiar consumers are with the
brand.

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Aaker Model
Brand-as-product (product scope and attributes,
quality/value, use, users, country of origin)
Brand-as-organization (organizational attributes,
local versus global)
Brand-as-person (brand personality, brand-
customer relationships)
Brand-as-symbol (visual imagery/metaphors and
brand heritage)
Aaker also conceptualizes brand identity as
including a core and an extended identity.

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Brand Identity

Core Identity Extended Identity

• Position • Personality
• Perceived Quality • Symbols
• Innovation • Benefits
• Value for Money • Relationships

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Brand Identity

Core Identity Extended Identity

• McDonalds: • McDonalds:
Value offering, Quality Service, Sub brands, Logos, Characters,
Cleanliness convenience
• Nike: • Nike:
Performance, Enhancing Lives Sub-brands, Logos, Slogans

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Drivers of Brand Equity

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Building Brand Equity

Brand
Elements

Brand Equity

Secondary Marketing
Associations Activities
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Brand Elements

Brand
names URLs

Slogans
Logos

Characters
Symbols

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Slogans

• Dawlance Reliable hai

• “It Gives You Wiiiings!”
• Mein te Honda hi lai sa
• I’m lovin’ it
• Eat Fresh”
• “Have a Break, Have a Kit
Kat”
• “The World’s Local Bank”

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Brand Element Choice Criteria

Brand Builders
Memorable
Meaningful
Likable
Defensive
Transferable
Adaptable
Protectable

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Internal Branding

Employees

Brand
Promise

Partners

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 Managing Brand Equity
Brand Revitalization

Brand Reinforcement
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 Brand Reinforcement – consistently conveying the brand’s meaning in
terms of:
- What products it represents, what core benefits it supplies, and what
needs it satisfies, and
- How the brand makes products superior, and which strong, favorable,
and unique brand associations should exist in consumers’ minds.

• Brand Revitalization First, understand what the sources of brand equity

were to begin with.
-Are positive associations losing their strength or uniqueness?
-Have negative associations become linked to the brand?
Second, decide whether to retain the same positioning or create a new
one, and if so, which new one.

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 ed
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De 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 Cameras Televisions Portable Sony Games

Theatre Electronics Pictures
VAIO Cyber-shot Televisions Walkman Movies PlayStation
-notebook Video MP3 -Theatre -PS3
Alpha SLR Home
-desktop -DVD -PS2
theatre Rolly -Blue-ray -Portable
Digital Home HandyCam systems
Reader Television
Disc Burner Printers Blu-ray Disc Digital Book -Comedy
Location Free Digital DVD players Sony Cell -Drama
picture Phone -Daytime
mylo frames Home audio -Cartoons
components GPS
Software Photo
services Music

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Brand PortFolio – P& G

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Reasons for Brand Portfolios

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Brand Roles in a Brand Portfolio

High-end Prestige

Cash Cows

Low-end Entry Level

Flankers
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• Flanker: Flanker or “fighter” brands are positioned with respect to competitors’
brands so that more important (and more profitable) flagship brands can retain
their desired positioning.

• Cash Cows: Companies capitalize on their reservoir of brand equity. Gillette’s older
Trac II, Atra, Sensor, and Mach III.

• Low-end Entry Level: a relatively low-priced brand in the portfolio can attract
customers to the brand franchise.

High-end Prestige: a relatively high-priced brand can add prestige and credibility to
the entire portfolio.

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Brand Portfolio Unilever

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Corporate Portfolio Analysis

8–34

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STARS QUESTION
 
MARKS
 Jams.  
 Desserts.  Fruitily Juices.
 Recipe Mix.
 

   
CASH COWS DOGS
 
 National
Ketchup.  National Plain
Masalas.
 National Pickles.
   Masala Snax.

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BCG Matrix

High Low
Relative Market Growth Rate
High

?
Low

Relative Market Share

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 8–37

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