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Chapter 9: Creating brand equity

Strategic brand management process:
1. Identifying and establishing brand positioning
2. Planning and implementing brand marketing
3. Measuring and interpreting brand performance
4. Growing and sustaining brand value deals with brand positioning.

Brand: name, term, sign, symbol, design (or combination), intended to identify the goods and services
of one seller or group of sellers and to differentiate them from those of competitors.
Brand elements: the different brand components (brand names, logos, symbols, package designs).

Brand equity: the added value endowed on products and services. It may be reflected in the way
consumers think, feel, and act with respect to the brand, as well as in the price, market share, and
profitability the brand commands.  “Marketing effects uniquely attributable to a brand”.

Customer-based brand equity: the differential effect brand knowledge has on consumer response to
the marketing of that brand. 3 key ingredients:
1. Brand equity arises from differences in consumer response.
2. These differences are a result of brand knowledge (all the thoughts, feelings, experiences and
beliefs associated with a brand).
3. Brand equity is reflected in perceptions, preferences, and behavior related to marketing.

Brand promise: the marketer’s vision of what the brand must be and do for customers.

Brandasset valuator model 4 pillars: energized differentiation, relevance, esteem, knowledge.

Building brand equity depends on 3 main factors:

1. The initial choices for the brand elements or identities making up the brand.
2. The way the brand is integrated into the supporting marketing program.
3. The associations indirectly transferred to the brand by links to some other entity (the company,
country of origin, channel of distribution, or another brand).

Brand elements: devices which can be trademarked, that identify and differentiate the brand.
Criteria: memorable, meaningful, likable, transferable, adaptable, protectable.

Brand contact: any information-bearing experience, whether positive or negative, a customer or

prospect has with the brand, its product category, or its market.

Brand value chain: a structured approach to assessing the sources and outcomes of brand equity and
the way marketing activities create brand value.

Brand audit: a consumer-focused series of procedures to assess the health of the brand, uncover its
sources of brand equity, and suggest ways to improve and leverage its equity.
- Measures “where the brand has been”.
Brand tracking: collect quantitative data from consumers over time to provide consistent, baseline
information about how brands and marketing programs are performing.
- Tracking studies measure “where the brand is now”, and whether marketing programs are
having the intended effects.

Branding strategy/brand architecture: reflects the number and nature of both common and
distinctive brand elements. (3 choices: new brand elements, apply some exiting, combination.)

Brand extension: use established brand to introduce new product. Line/category extension.
Customer equity: the sum of lifetime values of all customers for a brand.

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