1、An Asian Perspective(5th edition)Marketing Management:9Philip Kotler,Kevin Lane Keller,Swee Hoon Ang,Siew Meng Leong,&Chin Tiong Tan9-1Copyright 2009 Pearson Education South Asia Pte LtdCopyright 2009 Pearson Education South Asia Pte LtdCreating Brand EquitySlides adapted by Geoffrey da SilvaCopyrig
2、ht 2009 Pearson Education South Asia Pte LtdCopyright 2009 Pearson Education South Asia Pte Ltd9-2Copyright 2009 Pearson Education South Asia Pte Ltd9-3nUnderstand what a is brand and how branding worksnUnderstand what brand equity isnUnderstand how brand equity is built,measured,and managednUnderst
3、and the important decisions in developing a branding strategyLearning Objectives:Copyright 2009 Pearson Education South Asia Pte Ltd9-4Importance of brand managementnMarketers of successful 21st-century brands must excel at the strategic brand management process.nStrategic brand management combines
4、the design and implementation of marketing activities and programs to build,measure,and manage brands to maximize their value Copyright 2009 Pearson Education South Asia Pte Ltd9-5The four steps of strategic brand management1.Identifying and establishing brand positioning2.Planning and implementing
5、brand marketing3.Measuring and interpreting brand performance4.Growing and sustaining brand valueCopyright 2009 Pearson Education South Asia Pte Ltd9-6What is Brand Equity?nThe American Marketing Association defines a brand as“a name,term,sign,symbol,or design,or a combination of them,intended to id
6、entify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.”Copyright 2009 Pearson Education South Asia Pte Ltd9-7Key dimensions of brandingA brand is thus a product or service that adds dimensions that differentiate it in some way from other p
7、roducts or services designed to satisfy the same need.These differences may be functional,rational,or tangible-related to the product performance of the brand.They may also be more symbolic,emotional,or intangible-related to what the brand represents.Copyright 2009 Pearson Education South Asia Pte L
8、td9-8The Role of BrandsIdentify the makerSimplify product handlingOrganize accountingOffer legal protectionCopyright 2009 Pearson Education South Asia Pte Ltd9-9The Role of BrandsSignify qualityCreate barriers to entryServe as a competitive advantageSecure price premiumCopyright 2009 Pearson Educati
9、on South Asia Pte Ltd9-10The Role of Brands:nBrands identify the source or maker of a product and allow consumers to assign responsibility to a particular manufacturer or distributor.A.Consumers learn about brands through experiences with the product and its marketing program.B.Brands perform valuab
10、le functions for the company.C.Brands can signal a certain level of quality so that satisfied buyers can easily choose the product again.Copyright 2009 Pearson Education South Asia Pte Ltd9-11The Role of Brands(contd)D.Brand loyalty provides predictability and security of demand for the firm and cre
11、ates barriers for other firms.E.Branding can be seen as a powerful means to secure a competitive advantage F.To firms,brands thus represent enormously valuable pieces of legal property that can influence consumer behavior,be bought and sold,and provide the security of sustained future revenues to th
12、eir owner.Copyright 2009 Pearson Education South Asia Pte Ltd9-12Branding in Asia:nBranding,however,has not been a historical imperative for many Asian businesses.The reasons are:1.Asian businesses were more involved in performing the distribution function such as imports and exports.2.Ideological r
13、easons led countries such as China and Vietnam to discourage branding in the past.3.Many companies(e.g.,those in Taiwan)have been successful in contract manufacturing under global brand names.4.Others have benefited as franchisees or as regional joint-venture partners of Western franchises.5.Previou
14、sly protected domestic industries and markets also meant there was less need to invest in brand building.Copyright 2009 Pearson Education South Asia Pte Ltd9-13Requirements for successful branding for Asian firms:1.Overcome inherent parochialism2.Adopt a corporate culture which sustains global persp
15、ective3.Keep Asian brand identity-go global4.Rise above cheap low-quality image5.Think global despite being smallCopyright 2009 Pearson Education South Asia Pte Ltd9-14The Scope of Branding:1.Branding is endowing products and services with the power of a brand.2.Branding is all about creating differ
16、ences between products.3.To brand a product,it is necessary to teach consumers“who”the product is,“what”the product does,and“why”consumers should care.4.Branding involves creating mental structures and helping consumers organize their knowledge about products and services in a way that clarifies the
17、ir decision-making and provides value to the firm.Copyright 2009 Pearson Education South Asia Pte Ltd9-15The Scope of Branding(contd)5.For branding strategies to be successful and brand value to be created,consumers must be convinced that there are meaningful differences among brands in the product
18、or service category.6.The key to branding is that the consumer must not think that all brands in the category are the same.7.Brand differences are often related to attributes or benefits of the product itself.8.Branding can be applied virtually anywhere where the consumer has a choice.Copyright 2009
19、 Pearson Education South Asia Pte Ltd9-16Defining Brand Equity:nIt may be reflected in how consumers,think,feel and act with respect to the brand as well as the prices,market share and profitability that the brand commands for the firm.nBrand equity is an important intangible asset to the firm that
20、has psychological and financial value.nCustomer-based brand equity can be defined as the differential effect that brand knowledge has on consumer response towards the marketing of that brand.Copyright 2009 Pearson Education South Asia Pte Ltd9-17Positive and Negative Customer Brand Equity:nA brand i
21、s said to have positive customer-based brand equity when consumers react more favorably to a product and the way it is marketed when the brand is identified as compared to when it is not.nA brand is said to have negative customer-based equity if consumers react less favorably to marketing activity f
22、or the brand under the same circumstances.Copyright 2009 Pearson Education South Asia Pte Ltd9-18Brand KnowledgeKnowledgeThoughtsExperiencesBeliefsImagesFeelingsCopyright 2009 Pearson Education South Asia Pte Ltd9-19Brand Equity and Brand Knowledge:nBrand knowledge consists of all thoughts,feelings,
23、images,experiences,beliefs,and so on that become associated with the brand.nMarketers need to build a strong brand by ensuring that customers have the right type of experiences with products and services and that their marketing programs create the desired brand knowledge structures for the brand.Co
24、pyright 2009 Pearson Education South Asia Pte Ltd9-20Advantages of Strong Brands:Copyright 2009 Pearson Education South Asia Pte Ltd9-21Brand Equity as a Bridge:nMarketing dollars spent each year on products and services should be thought of as investments in consumer brand knowledge.nIt is actually
25、 possible to“overspend”on brand building if money is not spent wisely.nA brand is essentially a marketers promise to deliver predictable product or service performance.A brand promise is the marketers vision of what the brand must be and what it can do for consumers.Copyright 2009 Pearson Education
26、South Asia Pte Ltd9-22Asian brands(Ian Batey):Four Types of East Asian Assets1.Golden Assets:Tiger Balm,Boh Tea2.Acquired Assets:Raffles Hotel,Infosys3.Potential Assets:Hailer,Tsingtao 4.Combine Acquired&Potential AssetsCopyright 2009 Pearson Education South Asia Pte Ltd9-23Copyright 2009 Pearson Ed
27、ucation South Asia Pte Ltd9-24Brand Equity Models:1.Brand Asset Valuator(BAV)Model2.Aaker Model3.BRANDZ Model4.Brand Resonance ModelCopyright 2009 Pearson Education South Asia Pte Ltd9-25Brand Asset Valuator ModelAdvertising agency Young and Rubicam(Y&R)developed a model of brand equity called Brand
28、 Asset Valuator(BAV).The four key components of brand equity according to BAV are:nDifferentiationnRelevancenEsteemnKnowledgeDifferentiation and relevance combine to determine brand strength.Esteem and knowledge combine to create brand structure.Brand strength and brand structure can be combined to
29、form a power Grid that depicts the stages in the cycle of brand development in successive quadrants.Copyright 2009 Pearson Education South Asia Pte Ltd9-26Copyright 2009 Pearson Education South Asia Pte Ltd9-27Aaker Modeln5 Categories of Brand Assets and Liabilities:1.Brand loyalty2.Brand awareness3
30、.Perceived quality4.Brand associations5.Other proprietary assets such a patents,trademarks,and channel relationships.Copyright 2009 Pearson Education South Asia Pte Ltd9-28Aaker sees brand identity as consisting of twelve dimensions organized around four perspectives:1.Brand-as-product(product scope
31、 and attributes,quality/value,use,users,country of origin)2.Brand-as-organization(organizational attributes,local versus global)3.Brand-as-person(brand personality,brand-customer relationships)4.Brand-as-symbol(visual imagery/metaphors and brand heritage Copyright 2009 Pearson Education South Asia P
32、te Ltd9-29Aaker also conceptualizes brand identity as including a core and an extended identity 1.Core identity the central,timeless essence of the brand2.Extended identity includes various brand identity elements,organized into cohesive and meaningful groups.Copyright 2009 Pearson Education South A
33、sia Pte Ltd9-30BRANDZ ModelnAccording to this model,brand building involves a sequential series of steps,where each step is contingent upon successfully accomplishing the previous step.nResearch has shown that bonded consumers build stronger relationships with the brand and spend more of their categ
34、ory expenditures on the brand than those at lower levels of the pyramid.Copyright 2009 Pearson Education South Asia Pte Ltd9-31Copyright 2009 Pearson Education South Asia Pte Ltd9-32Brand Resonance ModelnViews brand building as an ascending,sequential series of steps,from bottom to top.nEnduring ide
35、ntification of the brand with customers and an association of the brand in customers minds with a specific product class or customer need.nFirmly establishing the totality of brand meaning in the minds of customers by strategically linking a host of tangible and intangible brand associations Copyrig
36、ht 2009 Pearson Education South Asia Pte Ltd9-33Copyright 2009 Pearson Education South Asia Pte Ltd9-34How to reach the pinnacle of the pyramid?1.Brand salience is how often and easily consumers think of the brand 2.Brand performance is how well the product or service meets customers functional need
37、s3.Brand imagery describes the extrinsic properties of the product or service4.Brand judgments focus on customers own personal opinions and evaluations5.Brand feelings are the customers emotional responses and reactions with respect to the brand.6.Brand resonance refers to the nature of the relation
38、ship customers have with the brand and the extent to which they feel theyre“in sync”with it.Copyright 2009 Pearson Education South Asia Pte Ltd9-35Building Brand Equity:nCreating the right brand knowledge with right consumersn3 brand equity drivers:1.Initial choices for elements that makes up the br
39、and 2.Product,marketing activities&programs3.Other associations passed to the brand when linked to other entityCopyright 2009 Pearson Education South Asia Pte Ltd9-36Choosing Brand ElementsnBrand elements are those trade-markable devices that identify and differentiate the brand.Choose brand element
40、s to build as much brand equity as possible.Test and see what consumers would think or feel about the product if they only knew about that particular brand element.Copyright 2009 Pearson Education South Asia Pte Ltd9-37Brand ElementsElementsSlogansBrandnamesURLsLogosSymbolsCharactersCopyright 2009 P
41、earson Education South Asia Pte Ltd1.Memorable2.Meaningful3.Likeability4.Transferable5.Adaptable6.Protectible Brand Elements Choice Criteria9-38First three characterized as“brand building”in terms of how brand equity can be built through the judicious choice of a brand elementThe latter three are mo
42、re“defensive”and are concerned with how the brand equity contained in a brand element can be leveraged and preserved in the face of different opportunities and constraints.Copyright 2009 Pearson Education South Asia Pte LtdBrand ElementsnMemorableBrand-easily recalled,recognized?Name-look distinctiv
43、e memorablenMeaningful Values consumers seekAsia Pacific-probe taboos,religious connotations-colors,numbers9-399-409-41Meaningful Asian examples from text:9-42Copyright 2009 Pearson Education South Asia Pte LtdnLikeability Is it likable visually,verbally?nEg:Fuji/Xerox Shagaku,a handheld copier,fits
44、 image wellnTransferableCan be used to introduce new products in other categories?Brand Elements9-43Copyright 2009 Pearson Education South Asia Pte LtdnAdaptablenHow adaptable&updatable is brand?nAsian brands-retain traditional values as they modernize Brand Elements9-44Copyright 2009 Pearson Educat
45、ion South Asia Pte LtdnProtectiblenHow legally protectible is it?nUnique brand name can be intimately identified with product category Eg:Scotch Tape&Post-it notesBrand Elements9-45Copyright 2009 Pearson Education South Asia Pte LtdProtecting the Brand9-46Copyright 2009 Pearson Education South Asia
46、Pte LtdnElements to identify products marketers have may choicesnLikeability&appeal are criticalnBrand elements can play a number of brand-building rolesDeveloping Brand Elements9-47Copyright 2009 Pearson Education South Asia Pte LtdnSlogans are powerful brand elementsnRepresent the“Hooks”:what is a
47、 brand&special qualities about the brandnHelps to summarize and translate the marketing intentExample:Capturing innherent brand meaning in slogans“A Great Way to Fly”Singapore Airlines“Connecting People”NokiaChoosing Brand Elements9-48Copyright 2009 Pearson Education South Asia Pte LtdnA brand conta
48、ct can be defined as any information-bearing experience a customer or prospect has with the brand,the product category,or the market that relates to the marketers product or service.Brand“Contact Points”and the importance of Holistic Marketing9-49Copyright 2009 Pearson Education South Asia Pte LtdnC
49、ustomers come to know a brand through a range of contacts and touch points:Personal observationsPersonal useWord of mouthInteractions with company personnelOn-line or telephone experiencesPayment transactionsAdvertising alone does not build brands9-50Copyright 2009 Pearson Education South Asia Pte L
50、tdDesigning Holistic Marketing ActivitiesnHolistic marketers-3 themes-brand-building marketing programs:Personalization,integration&internalization9-51Copyright 2009 Pearson Education South Asia Pte LtdnThe rapid expansion of the Internet has created opportunities to personalize marketing.From a bra
