CHAPTER 15: CLOSING OBSERVATIONS

D S Hwang From Kevin Lane Keller

15.1

Brand Knowledge Structure

Brand awareness depth and breadth awareness, depth, Brand associations

15.2

Summary of Customer-Based Brand CustomerEquity Framework

Sources of brand equity S fb d i
Strength Favorability Uniqueness

Outcomes of brand equity

Greater loyalty Less vulnerability to competitive marketing actions Less vulnerability to marketing crises Larger margins More inelastic consumer response to price increases More elastic consumer response to price decreases Greater trade cooperation and support G d i d Increased marketing communication effectiveness Possible licensing opportunities Additional brand extension opportunities
15.3

Tactical Guidelines
Building brand equity
1.

2. 2

3. 3

Through the initial choice of the brand elements g making up the brand Through marketing activities and the design of the marketing program Through the leverage of secondary associations Thro gh that link the brand to other entities

15.4

Guidelines for Building Brand Equity g q

Mix and match brand elements Create a rich brand image and high perceived q quality y Adopt value-based pricing strategy Consider a range of distribution options Mix marketing communication options Leverage secondary associations

15.5

Importance of Complementarity and Consistency

Complementarity means choosing different brand p g elements and supporting marketing activities so that the potential contribution to brand equity of one p q compensates for the shortcomings of others. A high degree of consistency across these elements helps g g y p to create the highest level of awareness and the strongest and most favorable associations possible. g p

15.6

Guidelines for Measuring Brand Equity g q

Formalize the firms view of brand equity q y Conduct brand inventories Conduct C d consumer tracking studies ki di Assemble results of outcome measures Establish a department to oversee the implementation

15.7

Guidelines for Managing Brand Equity g g q

Define brand hierarchy Create global associations Introduce brand extensions Clearly establish the roles of brands in the portfolio Reinforce brand equity over time Enhance brand equity over time Identify differences in consumer behavior in different market segments
15.8

Characteristics of Strong Brands Managers

Understand brand meaning and market appropriate products in an appropriate manner Properly position the brand Provide superior delivery of desired benefits p y Employ a full range of complementary brand elements and supporting marketing activities Embrace integrated marketing communications and communicate with a consistent voice Measure consumer perceptions of value and develop a pricing strategy accordingly d l Establish credibility and appropriate brand personality and imagery Maintain innovation and relevance for the brand Strategically design and implement a brand hierarchy and brand portfolio Implement a brand equity management system to ensure that marketing actions properly reflect the brand equity concept 15.9

Seven Deadly Sins of Brand Management g

1. 2. 2 3. 4. 5. 6. 7.

Failure to understand the full meaning of the g brand Failure to live up to the brand promise Failure to adequately support the brand Failure to be patient with the brand Failure to adequately control the brand q y Failure to properly balance consistency and change with the brand Failure to understand complexity of brand equity measurement and management i d
15.10

Industrial and B2B Branding g

Adopt a corporate or family branding strategy p p y g gy Link non-product-related imagery associations non-productEmploy full E l f ll range of marketing communication f k i i i options Leverage equity of other companies that are customers Segment markets carefully and develop tailored branding and marketing programs
15.11

Guidelines for High-Tech Branding Highg g

Establish brand awareness and rich brand image g Create corporate credibility associations Leverage secondary associations of quality L d i i f li Avoid overbranding products gp Selectively introduce new products as new brands d l l identify th b d and clearly id tif the nature of brand t fb d extensions

15.12

Guidelines for Service Branding g

Maximize service quality Employ a full range of brand elements to enhance brand recall Create and communicate strong organizational associations Design corporate communication programs that augment cons mers service enco nters a gment consumers ser ice encounters and experiences Establish a brand hierarchy using distinct family or individual brands as well as meaningful ingredient brands
15.13

Guidelines for Branding Retailers g

Create a brand hierarchy consisting of the store y g as a whole as well as individual departments Enhance the manufacturer s brand equity by manufacturers communicating PODs Establish brand equity at all levels of the brand y hierarchy Create multichannel shopping experience Avoid overbranding
15.14

Guidelines for Small Business Branding g

Emphasize building one or two strong brands p g g Focus the marketing program on one or two key associations Employ a well-integrated set of brand elements that wellenhances both brand awareness and image Design creative brand-building push campaigns brandLeverage as many secondary associations as possible
15.15

Guidelines for Online Branding g

Dont forget the brand building basics g g Create strong brand identity Generate strong consumer pull G ll Selectively choose brand partnerships y p p Maximize relationship marketing

15.16

Future Brand Priorities

How will branding change in the coming years? What are the biggest branding challenges? What gg g g will make a successful twenty-first-century twenty-firstbrand? brand ?

15.17

Building Brand Equity

Brand elements d l
In a cluttered, competitive marketplace, the brand elements that make up the brand will have to do more and more of the selling job.

Marketing programs
Strong brands in the twenty-first century also will g twentyy y rise above others by better understanding the needs, wants, and desires of consumers and creating marketing programs that fulfill and even surpass consumer expectations.
15.18

Measuring Brand Equity

Marketers of successful twenty-first-century twenty-firstbrands will create formalized measurement approaches and processes that ensure they continually monitor their sources of brand equity and those of competitors.

15.19

Managing Brand Equity

It ill b I will be essential in building strong twenty-firsti l i b ildi twenty-fi first century brands to align internal and external brand management.
Internal brand management ensures that employees and marketing partners appreciate and understand basic branding notions and ho the can affect the equity of brands. how they eq it brands External brand management requires understanding the needs, wants, and desires of consumers and creating brand marketing programs that fulfill and even surpass consumer expectations.

Companies must also align bottom-up and top-down bottomtopmarketing management .

15.20

Achieving Marketing Balance

The Th most f d fundamental challenge of marketing l h ll f k and brand management is reconciling the many potential trade-offs in marketing decisions tradeThere are three means or levels of achieving g marketing balance, in increasing order of p potential effectiveness:
Alternate Divide Finesse
15.21