najih suraya creating brand equity

Creating Brand Equity

NAJIH SURAYA (15/391824/PEK/21270)NINA RATNA(15/391827/PEK/21273)

Questions

1. What is a brand, and how does the branding work?

2. What is brand equity?3. How is brand equity build?4. How is brand equity measured?5. How is brand equity msnsged?6. What is brand architechture?7. What is customer equity?

A brand as “a name, term, sign, symbol, or design or a combination of them, intended to identify the goods or services of one seller or group sellers and to differentiate them from those of competitors”

How does branding work?

Brands identify the maker of a product and allow consumers to assign responsibility for its performance to that maker or distributor.

The Role of Brands

A PromisePersonal Meaning /

Identity

Legal protectionSimplify product

Brand Signals CUSTOMER

FIRMS

The Scope of Brands

Branding is the process of endowing products and services with the power of a brand. It’s all about creating differences between products.

Endowed to product and services with consumers

Defining Branding Equity

Think, feel, and act with respect to the brand

Negative customer-based brand equity

Positive customer-based brand equity

Customer-

based brand equity

differences in

consumer response

brand knowledge

perceptions, preferences, & behavior

Brand Equity

Models

Company appears to have come up with another brand

winner

Some Key Benefits of brand equity

Building Brand Equity

Brand Asset Valuator Model

Source: Courtesy of BrandAsset Consulting, a division of Young & Rubicam

The Universe of Brand Performance

Brand Dynamics employs a set of simple scores that summarize a brand’s equity and are relatable directly to real world financial and business outcomes.

Brandz Marketing

power

potential

premium

meaningful

salientdifferent

Brand Association

Brand Predisposition

MARKET

Brand Dynamics Models

Brand Resonance Model

The brand resonance model also views brand building as an ascending series of steps, from bottom to top:

Brand Resonance Pyramid

http://www.mastercardbrandcenter.com

Brand Saline

Brand Performance

Brand Imagery

Brand Judgement

Brand Resonance

Brand Feeling

Building Brand Equity

Choosing Brand Elements

Marketers should choose brand elements to build as much brand equity as possible

Designing Holistic Marketing Activities

personal observation and use

word of mouth

interactions with company

A brand contact is any information-bearing experience, whether positive or negative, a customer or prospect has with the brand, its product category, or its market.

Integrated marketing

Integrated marketing is about mixing and matching marketing activities to maximize their individual and collective effects.

Advertising Sales Promotion

Personal Selling Public Relation (PR)

Word of MouthEvent

Leveraging Secondary Associations

Secondary Sourceof Brand Knowledge

Internal Branding» Internal branding consists of activities and processes that

help inform and inspire employees about brands. Holistic marketers must go even further and train and encourage distributors and dealers to serve their customers well. Poorly trained dealers or other intermediaries can ruin the best efforts to build a strong brand image.

Brand bonding occurs when customers experience the company as delivering on its brand promise. All the customers’ contacts with company employees and communications must be positive.

The brand promise will not be delivered unless everyone in the company lives the brand.

Principles for internal branding

The Brand Value Chain

Measuring Brand Equity» Due to brand equity to perform a useful strategic function

and guide marketing decisions, marketers need to fully understand the sources of brand equity and how they affect outcomes of interest and how these sources and outcomes change, if at all, over time. Brand audits are important for the former; brand tracking for the latter.

Brand Audit

Brand Tracking Studies

The world's 10 Most Valuable Brands in 2015

What is a Brand Worth?

Managing Brand Equity

Marketers can reinforce brand equity by consistently conveying the brand’s meaning in terms of »what products it represents, what core benefits it supplies, and what needs it satisfies; »how the brand makes products superior and which strong, favorable, and unique brand associations should exist in consumers’ minds.

Any new development in the marketing environment can affect a brand’s fortunes. Nevertheless, a number of brands have managed to make impressive comebacks in recent years.

Brand Revitalization

Brand Reinforcement

Devising a Branding Strategy

When a firm uses an established brand to introduce a new product, the product is called a brand extension.

develop new brand elements for the new productapply some of its existing brand elements

use a combination of new and existing brand elements

Deciding how to brand new products is especially critical. A firm has three main choices:

Brand Architecht

ure

Devising a Branding Strategy

Branding Decisions

Individual / separate family brand names

Corporate umbrella / company brand name

Sub-brand name

General Branding Strategies

Brand Portfolios

Multiple Brands Reasons

1. Increasing shelf presence and retailer dependence in the store2. Attracting consumers seeking variety who may otherwise have switched to another brand3. Increasing internal competition within the firm4. Yielding economies of scale in advertising, sales, merchandising, and physical distribution

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 Example

Starwood Hotels

Brand Roles

Flankers / Fighter Brand

Low End Entry Level

Cash Cow

High End Prestige

Flankers / Fighter Brand

Low End Entry Level

High End Prestige

Cash Cow

Brand Extensions

Success CharacteristicResearch Insights on Brand Extensions

Source: kevin Lane keller, Strategic Brand Management, 4th ed. (Upper Saddle River, NJ: Pearson, 2013).

Customer Equity

The brand equity and customer equity perspectives certainly share many common themes. Both emphasize the importance of customer loyalty and the notion that we create value by having as many customers as possible pay as high a price as possible.

The aim of customer relationship management (CRM) is to produce high customer equity. Although we can calculate it in different ways, one definition is “the sum of lifetime values of all customers.”

Acquisition Retention

Customer Lifetime Value

Add-on Spending

Marketing Memo “Twenty-First-Century Branding”

THANK YOU!FOR YOUR ATTENTION

Email : najih.suraya@gmail.com

Phone : 085643811541

Magister Manajemen UGM