STRATEGIC BRAND MANAGEMENT

BUILDING, MEASURING, AND MANAGING

BRAND EQUITY

Chapter 1
Brands & Brand Management
Kevin Lane Keller
Amos Tuck School of Business
Dartmouth College

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.

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Examples of brands of computer products

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 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

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 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

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 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.

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 Branding Challenges & Opportunities

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

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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 & Cultures

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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 69
Microsoft 65
IBM 52
GE 42
Nokia 35
Intel 34
Disney 32
McDonald 25
Sony 15
Honda 14
BMW 13

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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

Identify and Establish
Brand Positioning and Values
Mental maps
Competitive frame of reference
Points-of-parity and points-of-difference
Core brand values
Brand mantra

Mixing and matching of brand elements

Plan and Implement Integrating brand marketing activities
Brand Marketing Programs Leveraging of secondary associations

Brand Value Chain

Measure and Interpret Brand audits
Brand tracking
Brand Performance
Brand equity management system

Brand-product matrix
Grow and Sustain Brand portfolios and hierarchies
Brand Equity Brand expansion strategies
Brand reinforcement and revitalization
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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

company’s offer and image so that it occupies a
distinct and values placed in the target
consumer’s 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?)
Resonance

Brand response
(What about you?)
Judgment Feeling

Brand Meaning Brand Brand Imagery

(what are you?) Performance

Brand Identity Brand Salience

(Who are you?) Brand awareness

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 The Concept of
Customer-Based Brand Equity

Brand Relationship Loyalty

(What about you and me?) Commitment
Engagement
Brand response Quality Warm, secure
(What about you?) Creditability Fun, excitement
Superiority Social approval, etc.
Product characteristics Profiles, usage,
Brand Meaning Effectiveness, Reliability Personality & values
(what are you?) Design ,price Experiences

Brand Identity Category identification

(Who are you?)

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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 Beverage

Water Others

Non-Alcoholic Alcoholic

Juices Wine

Milk Beer

Hot beverage Distilled

Spirits
Soft drinks
?
?
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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. What product / service ? What brand?

2. What product category? What market?
3. Who are in the market?
4. What do you know about the category?
5. 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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 Session 4: 24 November 2550
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.

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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 Product and pricing Strategy of a food product X
2 Product and pricing Strategy of a consumer product X
3 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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