CHAPTER 1:

BRANDS & BRAND MANAGEMENT

1.1
 What is a brand?
■ Brand is a name, term, sign, symbol, or design, or a
combination of them, intended to identify the goods
and services of one seller or group of sellers and to
differentiate them from those of competition.

■ Brand is something that has actually created a

certain amount of awareness, reputation,
prominence, and so on in the marketplace.

1.2
 CHAPTER 2:
CUSTOMER-BASED BRAND EQUITY

2.3
 Customer-Based Brand Equity
■ Customer-Based Brand Equity is the differential
effect that brand knowledge has on consumer
response to the marketing of that brand.

■ Three key ingredients to the definition:

1. Differential effect : brand equity arises from
differences in consumer response
2. Brand knowledge: these differences in response are
a result of consumers’ knowledge about the brand,
that is, what they have learned, felt, seen and heard
about the brand.
2.4
 Customer-Based Brand Equity
3.Consumer response to marketing : customers’
differential responses, which make up brand equity,
are reflected in perceptions, preferences, and
behavior related to all aspect of brand marketing,
including their
■ Choice of a brand,
■ Recall of copy points from an ad,
■ Response to a sales promotion,
■ Evaluations of a proposed brand extension.
2.5
-Marketing advantages of strong Brands:
1.Improve perceptions of product performance
2.Greater loyalty
3. Less vulnerability to competitive actions
4.Less vulnerability to marketing crises
5.Larger margins
6.More inelastic consumer response to price increases
7.More elastic consumer response to price decreases
8.Greater trade cooperation and support
9.Increase marketing communication effectiveness
10.Possible licensing opportunities
11.Additional brand extension opportunities.

2.6
 Brand Equity as a “Bridge”
-Brand equity provides marketers with a vital strategic
bridge from their past to their future.
1. Brands as a reflection of the past: Reflection of past
investments in the marketing of a brand. Investments
in what consumers learned, felt, and experienced
about the brand.
2. Brands as a direction for the future: The brand
knowledge dictates appropriate and inappropriate
future directions for the brand.
-The true value and future prospects of a brand rest
with consumers and their knowledge about the 2.7
 Making a Brand Strong: Brand Knowledge
■ Brand knowledge is the key to creating brand
equity, because it create the differential effect that
drives brand equity.
■ An influential model of memory developed by
psychologists is helpful for this purpose. The
association network memory model views
memory as consisting of a network of nodes and
connecting links, in which, nodes represent stored
information or concepts, and links represent the
strength of association between the information or
concepts.
2.8
-Using the associative network memory model, let's think of
brad knowledge as consisting of a brand node in memory
with a variety of associations linked to it.
-Brand knowledge consists of a brand node in memory with a
variety of associations linked to it.
-Brand knowledge has two components:
i.Brand awareness: It is related to the strength of the brand
node or trace in memory.
ii.Brand image: It is consumers’ perceptions about a brand, as
reflected by the brand associations (such as user friendly,
creative etc.) held in consumer memory.
For example, McDonald’s marketing program attempts to
create brand associations in consumers’ minds between its
products and “quality,” “service,” “cleanliness,” and “value.”
2.9
 Sources of Brand Equity
■ Customer based brand equity occurs when the consumer
has a high level of awareness and familiarity with the brand
and holds some strong, favorable, and unique brand
associations in memory. Thus marketers must also convince
consumers that there are meaningful differences among brands.
■ Lets’ look at both these sources of brand equity.
1.Brand awareness: brand awareness consists of
i. Brand recognition /appreciation : It is consumers’
ability to confirm prior exposure (publicity) to the brand
when given the brand as a cue.
ii. Brand recall /remind : It is the consumer’s ability to
retrieve(get back) the brand from memory when given the product
category, the needs fulfilled by the category, or purchase or usage
2.10
situation as a cue.
-Advantages of Brand Awareness
i. Learning advantages: Brand awareness influences
the formation and strength of the associations that
makeup the brand image.
-It register the brand in the minds of consumers.
ii. Consideration advantages: consumers must
consider the brand whenever they are making a
purchase for which it could be acceptable or
fulfilling a need it could satisfy.
iii. Choice advantages :It can affect choices among
brands in the consideration set. For example,
consumers have been shown to adopt a decision
rule in some cases to buy only more familiar, well
2.11
-Establishing Brand Awareness
■ Increasing the familiarity of the brand through repeated
exposure (for brand recognition). That is, the more a
consumer “experiences” the brand by seeing it, hearing it, or
thinking about it, the more likely he or she is to strongly
register the brand in memory. Thus, anything that causes
consumers to experience one of a brand’s element—its
name, symbol, logo, character, packaging, or slogan,
including advertising and promotion, sponsorship and event
marketing, publicity and public relations, and outdoor
advertising—can increase familiarity and awareness of that
brand element. And the more elements marketers can
reinforce, usually the better.
■ Forging(creating) strong associations with the appropriate 2.12
2. Brand image
Creating a positive brand image takes marketing
programs that link strong, favorable, and unique
associations to the brand in memory
i. Strength of Brand Associations :factors that affect
the strength and recall ability of a brand association.
-Consumers form beliefs about brand attribute and benefits
in different ways.
■ Brand attributes are those descriptive features that
characterize a product or service.
■ Brand benefits are personal value and meaning that
consumers attach to the product or service attributes.2.13
-In general, direct experiences create the strongest brand
attributes and benefit associations and are particularly
influential in consumers’ decisions when they accurately
interpret them.
-Word of mouth is likely to be particularly important for
restaurant, banking, and personal services.

ii. Favorability of brand associations: marketers create

favorable brand associations by convincing consumers that the
brand posses relevant attributes and benefits that satisfy their
needs and wants, such that they form positive overall brand
judgments.
-Favorable associations for a brand are those associations that
are desirable to consumers and deliverability to consumers.
2.14
desirable to consumers-convenient, reliable, effective,
colorful
Deliverability-
*the actual and potential ability of the product,
*the current or future prospects of communicating that
performance, and
*the sustainability of the actual and communicating
performance overtime.

iii. Uniqueness of Brand Association: Marketers can make

this unique difference explicit(open) through direct
comparisons with competitors or they may highlight its
implicitly/ absolutely.
2.15
 The Four Steps of Brand Building
1. Ensure identification (visible elements of brand-
color, logotype) of the brand with customers and
an association of the brand in customers’ minds
2. Establish the totality of brand meaning in the
minds of customers by strategically linking a host
of tangible and intangible brand associations with
certain properties.
3. Elicit (bring out) the proper customer responses
to the brand identification and brand meaning
4. Convert brand response to create an intense,
active loyalty relationship between customers and
2.16
 Four Questions Customers ask of Brands
1. Who are you? (brand identity)
2. What are you? (brand meaning)
3. What about you? What do I think or feel about you? (brand
responses)
4. What about you and me? What kind of association and how
much of a connection would I like to have with you?
(brand relationships)
-we cannot establish meaning unless have created identity
-response cannot occur unless we have developed the right
meaning;
-we cannot forge (form) a relationship unless we have elicited
the proper responses. 2.17
 Brand Building Blocks
-To provides some structure, let us think of establishing six
“brand building blocks’’ with customers that we can assemble
in pyramid, with significant brand equity only resulting if
brands reach the top of pyramid.
-This brand building process is illustrated in figure 2.5 and 2.6

2.18
Figure 2-5 Customer-Based Brand Equity Pyramid
Stages of brand building
Branding objective at each stages
4. RELATIONSHIPS =
What about you and me? Intense, active, loyalty
RESONANCE

3. RESPONSE =
Positive accessible reactions
What about you? JUDGM FEEL
ENTS INGS

2. MEANING =
Points of parity
What are you? (similarity) and
PERFOR IMAGER
difference
MANCE Y

1. IDENTITY =
SALIENC Deep, broad brand
Who are you? awareness
E 2.19
 Sub-Dimensions of Brand building Blocks
LOYALTY
ATTACHMENT
COMMUNITY
ENGAGEMENT

QUALITY WARMTH
FUN
CREDIBILITY
EXCITEMENT
CONSIDERATION SECURITY
SUPERIORITY SOCIAL APPROVAL
SELF-RESPECT
PRIMARY CHARACTERISTICS &
USER PROFILES
SECONDARY FEATURES
PRODUCT RELIABILITY, DURABILITY &
PURCHASE & USAGE
SERVICEABILITY SITUATIONS
SERVICE EFFECTIVENESS, EFFICIENCY & PERSONALITY & VALUES
EMPATHY HISTORY, HERITAGE
STYLE, DESIGN AND PRICE & EXPERIENCES
CATEGORY IDENTIFICATION
NEEDS SATISFIED
1.Brand Salience: achieving the right identity means creating
brand salience with customers. Brand salience (mark/prominence)
measure awareness of the brand, for example, how often and
how easily the brand is evoked(remind) under various
situations.
-a highly salient brand is one that has both depth and breadth
of brand awareness
■ Depth of brand awareness
■ Ease of recognition and recall
■ Strength and clarity of category membership-how product
categories are organized in memory?
■ Breadth of brand awareness
■ Purchase consideration
■ Consumption consideration
2.21
■ Importance of Depth and Breadth
-The product category hierarchy shows us not only
the depth of awareness matters but also the breadth.
-The brand must not only be top-of-mind and have
sufficient “mind share,” but it must also do so at the
right times and places.

2.22
2.Brand Performance: It describes how well the product or
service meets customer’s more functional need.
■ Five important types of attributes and benefits often
trigger (underlie) brand performance.
i. Primary characteristics and supplementary (added)
features
ii. Product reliability, durability, and serviceability
iii. Service effectiveness, efficiency, and empathy
iv. Style and design
v. Price 2.23
2.Brand Imagery: It refers to more intangible aspects of the
brand, and consumers can form imagery associations directly
from their own experience or indirectly through advertising or
word of mouth.
■ Many kinds of intangibles can be linked to a brand, but four main ones
are:
i. User profiles
■ Demographic-age and psychographic characteristics-lifestyle, social
■ Actual or aspirational
■ Group perceptions—popularity
ii. Purchase and usage situations
■ Type of channel, specific stores, ease of purchase
■ Time (day, week, month, year, etc.), location, and context of usage
iii. Personality and values
■ Sincerity, excitement, competence, sophistication, and ruggedness
2.24
3.Brand Judgments: These are consumers’ personal opinions
about and evaluations of the brands, which consumers form by
putting together all the different brand performance and
imagery associations.
-Customers may make all types of judgments with respect to
brand, but four types are particularly important:
i. Brand quality iii. Brand consideration
■ Value ■ Relevance
■ Satisfaction
iv. Brand superiority
ii. Brand credibility ■ Differentiation
■ Expertise
■ Trustworthiness
■ Likeability 2.25
4. Brand Feelings: These are customers’ emotional responses
and reactions to the brand.
■ The following are six important types of brand
building feelings:
i. Warmth-makes consumers feel calm or
peacefulness.
ii. Fun-make consumers feel amused, Joyous.
iii. Excitement-being alive, cool, sexy or so on.
iv. Security-produces feelings of safety, comfort.
v. Social Approval- consumers feel that other look
favorably on their appearance.
vi. Self-respect- consumers feel a sense of pride, 2.26
4. Brand Resonance :It describes the nature of this
relationship and the extent to which customers feel that they
are “in sync” (harmonize relationship) with the brand.
example of high resonance brands are apple.
■ Four categories of brand resonance are:
i. Behavioral loyalty
■ Frequency and amount of repeat purchases
ii. Attitudinal attachment
■ Love brand (favorite possessions; “a little pleasure”)
■ Proud of brand
■ iii. Sense of community: Identification with a brand community may reflect an
important social phenomenon in which customers feel a kinship or affiliation with other
people associated with the brand, whether fellow brand users or customers, or employees or
representatives of the company.
iv. Active engagement
■ Seek information
■ Join club, Visit website, chat rooms
2.27
 Brand Building Implications
■ Five important branding tenets (belief) :
i. Customers own brands-the way the consumers thinks, feel,
and act with respect to that brand.
ii. Don’t take shortcuts with brands-the amount of time it
takes to create sufficient awareness and understanding.
iii. Brands should have a duality-It blends product
performance and imagery to create a rich, varied but
complementary set of consumer responses.
iv. Brands should have richness-create meaning with
consumers and the range of possible avenue to elicit
consumer responses.
v. Brand resonance provides important focus-provides
important focus and priority for decision making about
marketing. 2.28
 Creating Customer Value
■ Customer-brand relationships are the foundation of
brand resonance and building a strong brand.
■ The customer-based brand equity model certainly
puts that notion/idea front and center.

2.29
FIGURE 1 Brand Value Chain  

2.30
2.31
Value Stages
Brand value creation begins with marketing activity by the
firm.
1.Marketing Program Investment. Any marketing program
investment that can contribute to brand value development,
outline many such marketing activities, like product research,
development, and design; trade or intermediary support;
marketing communications including advertising, promotion,
sponsorship, direct and interactive marketing, personal selling,
publicity, and public relations; and employee training.
2.Program Quality Multiplier. The ability of the marketing
program to affect the customer mind-set will depend on its
quality. key considerations is through the acronym DRIVE, as
follows:
i. Distinctiveness: How unique is the marketing program?
How creative or differentiating is it?
2.32
ii. Relevance: How meaningful is the marketing program to
customers? Do consumers feel the brand is one they should
seriously consider?
iii. Integrated: How well integrated is the marketing program
at one point in time and over time? Do all aspects combine to
create the biggest impact with customers as possible? Does the
marketing program relate effectively to past marketing
programs and properly balance continuity and change,
evolving the brand in the right direction?
iv. Value: How much short-run and long-run value does the
marketing program create? Will it profitably drive sales in the
short run? Will it build brand equity in the long run?
v. Excellence: Is the individual marketing activity designed to
satisfy the highest standards? Does it reflect state-of-the art
thinking and corporate wisdom as success factors for that
particular type of marketing activity? 2.33
3.Customer Mind-Set. the customer mind-set includes
everything that exists in the minds of customers with respect
to a brand: thoughts, feelings, experiences, images,
perceptions, beliefs, and attitudes. To provide a concise
summary, a shorter “5 As” list can highlight important
measures of the customer mind-set as suggested by the
resonance model:
i. Brand Awareness: The extent and ease with which
customers recall and recognize the brand and can identify the
products and services with which it is associated.
ii. Brand Associations: The strength, favorability, and
uniqueness of perceived attributes and benefits for the brand.
Brand associations often represent key sources of brand value,
because they are the means by which consumers feel brands
satisfy their needs. 2.34
iii. Brand Attitudes: Overall evaluations of the brand in terms
of its quality and the satisfaction it generate.
iv. Brand Attachment: The degree of loyalty the customer
feels toward the brand. A strong form of attachment,
adherence, is the consumer’s resistance to change and the
ability of a brand to withstand bad news like a product or
service failure. In the extreme, attachment can even become
addiction.
v. Brand Activity: The extent to which customers use the
brand, talk to others about the brand, seek out brand
information, promotions, and events, and so on.

2.35
4. Marketplace Conditions Multiplier. The extent to which
value created in the minds of customers affects market
performance depends on factors beyond the individual
customer. Three such factors are:
i.Competitive superiority: How effective are the marketing
investments of competing brands?
ii. Channel and other intermediary support: How much
brand reinforcement and selling effort is being put forth by
various marketing partners?
iii. Customer size and profile: How many and what types of
customers are attracted to the brand? Are they profitable?

2.36
5. Market Performance. the customer mind-set affects how
customers react in the marketplace in six main ways.
The first two relate to price premiums and price elasticity's.
How much extra are customers willing to pay for a
comparable product because of its brand? And how much does
their demand increase or decrease when the price rises or
falls?
A third outcome is market share, which measures the success
of the marketing program in driving brand sales. Brand value
is created with higher market shares, greater price premiums,
and more elastic responses to price decreases and inelastic
responses to price increases.
The fourth outcome is brand expansion, the success of the
brand in supporting line and category extensions and new-
product launches into related categories. This dimension
captures the brand’s ability to add enhancements to the 2.37
The fifth outcome is cost structure or, more specifically,
reduced marketing program expenditures thanks to the
prevailing customer mind-set. When customers already have
favorable opinions and knowledge about a brand, any
aspect of the marketing program is likely to be more effective
for the same expenditure level; alternatively, the same level of
effectiveness can be achieved at a lower cost because ads are
more memorable, sales calls more productive, and so on.
When combined, these five outcomes lead to brand
profitability, the sixth outcome. The ability of the brand value
created at this stage to reach the final stage in terms of stock
market valuation again depends on external factors, this time
according to the investor sentiment multiplier.
2.38
6.Investor Sentiment Multiplier. Financial analysts and
investors consider a host of factors in arriving at their brand
valuations and investment decisions. Among them are the
following:
• Market dynamics: What are the dynamics of the financial
markets as a whole (interest rates, investor sentiment, supply
of capital)?
• Growth potential: What is the growth potential or prospects
for the brand and the industry in which it operates? For
example, how helpful are the facilitating factors and how
inhibiting
are the hindering external factors that make up the firm’s
economic, social, physical, and legal environment?
• Risk profile: What is the risk profile for the brand? How
vulnerable is the brand to those facilitating and inhibiting
factors? 2.39
7.Shareholder Value. Based on all available current and
forecasted information about a brand, as well as many other
considerations, the financial marketplace formulates opinions
and assessments that have very direct financial implications
for the brand value. Three particularly important indicators are
the stock price, the price/earnings multiple, and overall
market capitalization for the firm. Research has shown that
not only can strong brands deliver greater returns to
stockholders,
they can do so with less risk.

2.40
 CHAPTER 3:
BRAND POSITIONING & VALUES

3.41
 Brand Positioning
■ Is at the heart of the marketing strategy

■ “. . . the act of designing the company’s offer

and image so that it occupies a distinct and
valued place in the target customer’s minds.”
Philip Kotler

3.42
According to the CBBE(customer based brand equity )
model, deciding on a positioning requires
Determining a frame of reference (by identifying
the target market and the nature of competition) and
the ideal points-of-parity and points-of-difference
brand associations. In other words,
■ Marketers need to know:
■ Who the target consumer is,
■ Who the main competitors are,
■ How the brand is similar to these competitors,
■ How the brand is different from them.

3.43
 Target Market
■ A market
■ Market segmentation
■ Market segmentation requires making tradeoffs
between costs and benefits.
■ Segmentation Bases: Figure 3.1 and 3.2 display
some possible segmentation bases for consumer and
industrial market respectively:

3.44
-Fig.3.1segmentation bases for consumer market
Behavioral Segmentation
Usage Rate
Product benefits
Brand Loyalty
Price Consciousness
Occasions (holidays like mother’s day, New Year and Eid)
User Status (First Time, Regular or Potential)
Demographic Segmentation
Age
Gender
Income
Occupation
Education
Family size
Family life cycle
Religion
Ethnic group/Race 3.45
Psychographic Segmentation
Interests
Opinions
Personality
Activities
Attitudes
Geographic Segmentation
Regions (by country, nation, state, neighborhood)
Population Density (Urban, suburban, rural)
City size (Size of area, population size and growth rate)
Climate (Regions having similar climate pattern)

3.46
-Fig3.2 segmentation bases for industrial market
Nature of good: Kind, Where to used, Type of buy
Company Size: what company sizes should we serve?
Industry: Which industry to serve?
Purchasing approaches: Purchasing-function organization, Nature of
existing relationships, purchase policies and criteria.
Situational factors: seasonal trend, urgency: should serve companies
needing quick order deliver, Order: focus on large orders or small.
Geographic: Regional industrial growth rate, Customer concentration,
and international macroeconomic factors.

3.47
■ One research study uncovered four main
segments with the example of toothpaste market :
1. The Sensory segment: Seeking flavor and
product appearance,
2. The Sociables: Seeking brightness of teeth,
3. The Worriers: Seeking decay prevention,
4. The Independent segment: Seeking low price.

3.48
Segmentation on the Basis of Strength of
Commitment
■ Convertible: on the threshold (door step) of change;
highly likely to switch brands,
■ Shallow: Not ready to switch, but may be
considering alternatives
■ Average: Comfortable with their choice; unlikely to
switch in future
■ Entrenched: well established/ Staunchly (faithfully)
loyal; unlikely to change in the foreseeable future

3.49
 Segmentation by non-users
■ Strongly unavailable: Strongly prefer their current
brand
■ Weakly unavailable: Prefer their current brand,
although not strongly
■ Ambivalent (hesitant): As attracted to the “other”
brand as to their current choice
■ Available: Prefer the “other” brand but have not yet
switched

3.50
 Criteria for Segmentation
■ Identifiability: Can we easily identify the segment? data
should be available to measure the size of the market segment
■ Size: Is there adequate sales potential in the segment?
■ Accessibility: Are specialized distribution outlets and
communication media available to reach the segment?
■ Responsiveness: How favorably will the segment respond to a
tailored marketing program?

3.51
 Nature of Competition
■ Deciding to target a certain type of consumer
often defines the nature of competition
■ Do not define competition too narrowly

Eg. of Thirst

3.52
 Points-of-Parity and Points-of-Difference
■ Points-of-difference (PODs) are attributes or benefits
that consumers strongly associate with a brand, positively evaluate,
and believe that they could not find to the same extent with a
competitive brand.
■ Points-of-parity associations (POPs) are not
necessarily unique to the brand but may in fact be shared with other
brands.

■ -For example, all small cars have four wheels, a steering wheel, lights
and pretty good gas mileage.  These are all points of parity.

-
3.53
 Brand Positioning Guidelines
■ Three key issues in arriving at the optimal (best possible)
competitive brand positioning are:
1. Defining and communicating the
competitive frame of reference
2. Choosing points-of-difference
3. Establishing points-of-parity and points-of-
difference

3.54
 1. Defining and communicating the competitive
frame of reference
-Defining a competitive frame of reference for a brand positioning is to
determine category membership. With which products or sets of
products does the brand compete?
-The product’s category membership tells consumers about the goals they
might achieve by using a product or service.
-Three main ways to convey a brand’s category membership:
i. Communicating categories benefits:
ii.Comparing to exemplars: exemplars- When Tommy
Hilfiger was an unknown designer, advertising announced his membership as a great
American designer by associating him with Geoffrey Beene, calvin Klein, who were
recognized members of that category.

iii. Relying on the product descriptor: For example,

USAir change its name to US Airways. 3.55
2. Choosing and establishing points-of-parity and
points-of-difference: consumer finds the POD desirable and that they
believe the firm has capabilities to deliver on it. Each of these considerations,
desirability and deliverability has a number of specific criteria, which are .

i. Desirability criteria (consumer perspective)

■ Relevance
■ Distinctiveness
■ Believability
ii. Deliverability criteria (firm perspective):
-feasibility,
-communicability, and
-sustainability,
3.56
3. Establishing points-of-parity and points-of-
difference
-One challenge for marketers is that many of the attributes
or benefits that make up the POPs or PODs are negatively
correlated.
-For example, it might be difficult to position a brand as
“inexpensive” and at the same time assert that it is “of the
highest quality.”
-Figure 3-4 display some other examples of negatively
correlated attributes and benefits.

3.57
 -Figure 3-4 display some examples of negatively
correlated attributes and benefits.
■ Low Price and high quality
■ Convenience and quality
■ Taste and low calories
■ Efficacy and mildness( softness)
■ Power and safety
■ Ubiquity(capacity of being everywhere) and
prestige
■ Comprehensiveness (variety) and simplicity
■ Strength and refinement( improvement )
-Unfortunately, consumers typically want to maximize
3.58
 Approaches which increasing order of effectiveness or
Strategies to Reconcile Attribute and Benefit Trade-offs
i. Separate the attributes: Establish two separate marketing
campaign, each devoted to a different brands attributes or benefit.
Example, Head & Shoulders met success in Europe with a dual
campaign in which one ad emphasis its dandruff removal efficacy
while another ad emphasized the appearance and beauty of hair after
its use.
ii. Leverage Equity of Another entity: Brand can
link themselves to any kind of entity that possesses the right kind of
equity-a person, other brand, event or so forth as a means to establish
an attribute or benefit as POP or POD.
iii. Re-define the relationship : from negative to positive.
Marketers can achieves this by providing consumers a different
perspective and suggesting that they may be overlooking certain
factors or other considerations. 3.59
 Updating positioning over time
Updating positioning raises two main issues.
i.Laddering
-It is useful to explore underlying consumer motivations in a product
category to uncover the relevant association. For example Maslow's
hierarchy maintains that consumers have different levels needs.

ii. Reacting
-competitive actions are often directed at eliminating points of difference
to make them points of parity or to strengthen or establish new points of
difference.

3.60
3.61
 Core Brand Associations
■ Core Brand Associations are those abstract associations
(attributes and benefits) that characterize the five to ten most
important aspects or dimensions of a brand
■ Theses are related to points-of-parity and points-of-
difference
■ Marketers ask consumers to create mental map of the brand
for identifying core brand association

■ A mental map accurately portrays in detail all salient

brand associations and responses for a particular target
market. (figure 3.5a display a mental map)

■ Mental map 🡪 Core brand values 🡪 Brand

3.62
 Brand Mantras
■ Brand Mantras is an articulation of the “heart
and soul” of the brand, a short, three- to five-word
phrases that capture the irrefutable/certain essence
or spirit of the brand positioning.
■ Similar to “brand essence” or “core brand promise”
■ Example, McDonald's brand philosophy of “ Food,
Folk, and Fun” nicely capture its brand essence
and core brand promise.
■ Considerations
■Communicate-clarify what is unique
■Simplify-short ,simple
■Inspire 3.63
 Designing the Brand Mantra
■ The term brand functions describes the nature of the
product or service or the type of experiences or
benefits the brand provides.
■ The descriptive modifier further clarifies its nature.
■ The emotional modifier provides another qualifier—
how exactly does the brand provide benefits, and in
what way?

Examples ?
3.64
 Designing the Brand Mantra

Emotional Descriptive Brand

Modifier Modifier Functions

Authentic Athletic Performance

Nike

Fun Family Entertainment

Disney

Fun Folks Food

3.65
 Internal Branding
■ Making sure that members of the organization are
properly aligned with the brand and what it
represents.
■ It is Critical for service companies that all
employees have an up-to-date and deep
understanding of the brand.

3.66
 Brand Audit
■ A Brand audit is a comprehensive
examination of a brand involving activities to
assess the health of the brand, uncover its
sources of equity, and suggest ways to improve
and leverage that equity
■ It includes brand vision, mission, promise,
values, position, personality, and performance

3.67
 Importance of Brand Audits
■ Understand sources of brand equity
■ Firm perspective
■ Consumer perspective
■ Set strategic direction for the brand
■ Recommend marketing programs to maximize
long-term brand equity

3.68
 Brand Audit Steps

■ Brand inventory (supply side)

■ Brand exploratory (demand side)

3.69
 Brand Inventory
■ A current comprehensive profile of how all the
products and services sold by a company are
branded and marketed:
■Brand elements
■Supporting marketing programs
■Profile of competitive brands
■POPs and PODs
■Brand mantra
3.70
 Brand Inventory (Cont.)
■ Suggests the bases for positioning the
brand
■ Offers insights to how brand equity may
be better managed
■ Assesses consistency in message among
activities, brand extensions, and sub-
brands in order to avoid redundancies,
overlaps, and consumer confusion
3.71
 Brand Exploratory
■ Provides detailed information as to how
consumers perceive the brand:
■Awareness
■Favorability
■Uniqueness of associations
■ Helps identify sources of customer-based
brand equity
■ Uncovers knowledge structures for the core
brand as well as its competitors
3.72
 CHAPTER 4:
CHOOSING BRAND ELEMENTS TO BUILD
BRAND EQUITY
-Brand Elements, sometimes called brand identities are
those trademark devices that serve to identify and
differentiate the brand.
-Their main function is to
*inherently enhance brand awareness or *facilitate the
formation of strong, favorable, and unique brand
associations or
*elicit positive brand judgment or feelings.
4.73
Criteria for Choosing Brand Elements
In general, there are six criteria for brand elements.
FIGURE 4-1 Criteria for Choosing Brand Elements

1. Memorable
Easily recognized
Easily recalled
2. Meaningful
Descriptive
Persuasive
3. Likable
Fun and interesting
Rich visual and verbal imagery
3.74
4. Transferable
Within and across product categories
Across geographic boundaries and cultures
5. Adaptable
Flexible
Updatable
6. Protectable
Legally
Competitively

3.75
 Memorability
■ Brand elements should inherently be memorable and
attention-getting, and therefore facilitate recall or
recognition.
■ For example, a brand of propane gas cylinders
named Blue Rhino featuring a powder-blue animal
mascot (luck bringer) with a distinctive yellow
flame(bright light) is likely to stick in the minds of
consumers.

4.76
 Meaningfulness
■ Brand elements may take on all kinds of meaning,
with either descriptive or persuasive content.
■ Two particularly important criteria are how well the
brand element conveys
■ General information about the nature of the
product category
■ Specific information about particular attributes
and benefits of the brand
■ The first dimension is an important determinant of
brand awareness and salience ; the second, of brand
image and positioning.
4.77
 Likability
■ Do customers find the brand element aesthetically
appealing?
■ Is it likeable visually, verbally, and in other ways?
■ Brand elements can be rich in imagery and
inherently fun and interesting.
■ Descriptive and persuasive elements reduce the
burden on marketing communications to build
awareness.

4.78
 Transferability

■ Transferability measures the extent to which the

brand elements adds to the brand equity of new
products for the brand.

■ How useful is the brand element for line or

category extensions?

4.79
 Adaptability
■ The more adaptable and flexible the brand
element, the easier it is to update it to changes in
consumer values and opinions.
■ For example, logos and characters can be given a
new look or a new design to make them appear
more modern and relevant.

4.80
 Protectability
■ It is the extent to which the brand element is
protectable—both in a legal and a competitive
sense.
■ Marketers should
(1)choose brand elements that can be legally
protected internationally,
(2) formally register them with the appropriate
legal bodies, and
(3) Vigorously/ strongly defend trademarks
from unauthorized competitive infringement
(violation). 4.81
 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 names
■ URLs
■ Logos and symbols
■ Characters
■ Slogans
■ Packaging

4.82
 Tactics for Brand Elements
Let’s look at the major considerations for each type of
brand element.
Brand Names
■ Like any brand element, brand names must
be chosen with the six general criteria of
memorability, meaningfulness, likability,
transferability, adaptability, and protectability
in mind.

4.83
 Brand Naming Guidelines
■ Brand awareness 
■ Simplicity and ease of pronunciation and spelling
■ Familiarity and meaningfulness
■ Differentiated, distinctive, and uniqueness
■ Brand associations
■ The brand name can reinforce an important
attribute or benefit association that makes up its
product positioning.

Head & Shoulders Close-up

4.84
 Brand Naming Procedures
■ Define objectives
-in terms of the six general criteria,
-define the ideal meaning the brand should convey
■ Generate names
- as many names and concepts as possible
■ Screen initial candidates:
-Screen all the names against the branding objectives and
marketing considerations identified in step 1
■ Study candidate names
- Collect more extensive information about each of the final 5–
10 names.
4.85
 Brand Naming Procedures
■ Research the final candidates
-conduct consumer research to confirm management
expectations about the memorability and meaningfulness of
the remaining names.
■ Select the final name
-management should choose the name that maximizes the
firm’s branding and marketing objectives and then formally
register it.

3.86
 URLs

■ URLs (uniform resource locators) specify locations

of pages on the web and are also commonly referred
to as domain( field, area) names.
■ A typical URL might look like:
http://en.example.org/wiki/Main_Page
■ A company can either sue (petition, charge) the
current owner of the URL for copyright
infringement, buy the name from the current owner,
or register all conceivable variations of its brand as
domain names ahead of time. 4.87
-Uniform Resource Locator (URL) it is the global address of
documents and other resources on the World Wide Web.
-The first part of the URL is called a protocol identifier and it
indicates what protocol to use, and the second part is called a
resource name and it specifies the IP address the domain name
where the resource is located.
-The protocol identifier and the resource name are separated
by a colon and two forward slashes.
For example, the two URLs below point to two different files
at the domain pcwebopedia.com.
-The first specifies an executable file that should be fetched
using the FTP protocol;
-the second specifies a Web page that should be fetched using
the HTTP protocol :
ftp://www.pcwebopedia.com/stuff.exe
http://www.pcwebopedia.com/index.html
3.88
 Logos and Symbols
■ Play a critical role in building brand equity and especially
brand awareness
■ Logos is a rhetorical/abstract device that includes any
content in an argument that is meant to appeal to logic.
■ Logos range from corporate names or trademarks (word
marks with text only) written in a distinctive form, to
entirely abstract designs that may be completely unrelated
to the word mark, corporate name, or corporate activities
■ Examples of brands with strong word marks and no
accompanying logo separate from the name include Coca-
Cola, Dunhill, and Kit Kat. Examples of abstract logos
include the Mercedes star, Rolex crown, CBS eye, Nike
swoosh, and Olympic rings. These non–word mark logos
are also often called symbols. 4.89
3.90
 Characters
■ A special type of brand symbol—one that
takes on human or real-life characteristics
■ Some are animated like Pillsbury’s Poppin’
Fresh Doughboy(bread),
■ Others are live-action figures like Juan Valdez
(Colombian coffee), the Maytag repairman,
and Ronald McDonald.

4.91
3.92
3.93
3.94
 Slogans
■ Slogans are short phrases that communicate
descriptive or persuasive information about the
brand.
■ Slogans are powerful branding devices because, like
brand names, they are an extremely efficient,
shorthand means to build brand equity

Because I’m worth it ______________________

Just do it ______________________

4.95
 Classic Slogans
■ “It’s the coolest one” ___________________
■ “Yeh hai right choice baby” ____________
■ “Taste the thunder” ___________________
■ “Daag Achhe Hain” ___________________
■ “Har Ghar Kuchh Kehta Hai” ____________
■ “Simplyfly” _________________________
■ “The complete man” ___________________
■ “Born tough” _________________________
■ “Neighbor’s envy/ jealousy, Owner’s pride” ______
4.96
 Jingles
■ Jingles /tune are musical messages written around
the brand. Typically composed by professional
songwriters, they often have enough catchy/
appealing hooks and choruses to become almost
permanently registered in the minds of listeners—
sometimes whether they want them to or not!
■ Jingles are perhaps most valuable in enhancing
brand awareness.

Fresh N Juicy ___________

Healthy Oil for Healthy People ___________________
Doodh si safedi __________________________
4.97
3.98
 Packaging
■ Packaging is the activities of designing and
producing containers or wrappers for a product.
■ From the perspective of both the firm and consumers,
packaging must achieve a number of objectives:
■ Identify the brand
■ Convey descriptive and persuasive information
■ Facilitate product transportation and
protection
■ Assist at-home storage
■ Aid product consumption
4.99
 Packaging Can Influence Taste
■ Our sense of taste and touch is very
suggestible, and what we see on a package can
lead us to taste what we think we are going to
taste.

4.100
 Packaging Can Influence Value
■ Long after we have bought a product, a
package can still lead us to believe we bought
it because it was a good value.

4.101
Packaging Can Influence Consumption

■ Studies of 48 different types of foods and personal

care products have shown that people consume
between 18% and 32% more of a product as the size
of the container doubles.

4.102
Packaging Can Influence How a Person
Uses a Product
■ One strategy to increase use of mature
products has been to encourage people to use
the brand in new situations, like soup for
breakfast.
■ An analysis of 26 products and 402 consumers
showed that twice as many people learned
about the new use from the package than from
television ads.

4.103
 Putting It All Together
■ The entire set of brand elements makes up the brand
identity, the contribution of all brand elements to
awareness and image.
■ The cohesiveness of the brand identity depends on
the extent to which the brand elements are
consistent.

4.104
 CHAPTER 5:
DESIGNING MARKETING PROGRAMS TO
BUILD BRAND EQUITY

5.105
 Overview
■ How do marketing activities in general—and
product, pricing, and distribution strategies in
particular—build brand equity?
■ How can marketers integrate these activities to
*enhance brand awareness,
*improve the brand image,
*elicit positive brand responses, and
*increase brand resonance?

5.106
 New Perspectives on Marketing
The strategy and tactics behind marketing programs have changed dramatically in
recent years as firms have dealt with enormous shifts in their external marketing
environments. changes in the economic, technological, political–legal, socio-cultural,
and competitive environments have forced marketers to embrace new approaches and
philosophies. Some of these changes include:
• Rapid technological developments
• Greater customer empowerment
• Fragmentation of traditional media
• Growth of interactive and mobile marketing options
• Channel transformation and disintermediation
• Increased competition and industry convergence
• Globalization and growth of developing markets
• Heightened environmental, community, and social concerns
• Severe economic recession
These drivers, and others such as privatization and regulation, have combined to give
customers' and companies new capabilities(see figure(5.1

5.107
Consumers
Can wield substantially more customer power.
Can purchase a greater variety of available goods and services.
Can obtain a great amount of information about practically
anything.
Can more easily interact with marketers in placing and
receiving orders.
Can interact with other consumers and compare notes on
products and services.
Companies
Can operate a powerful new information and sales channel
with augmented geographic reach to inform and promote their
company and its products.
Can collect fuller and richer information about their markets,
customers, prospect and competitors.
5.108
Companies
Can facilitate two-way communication with their customers
and prospects and facilitates transaction efficiency.
Can send ads, coupons, promotion, and information by e-mail
to customers and prospects who give them permission.
Can customize their offerings and services to individual
customers.
Can improve their purchasing, recruiting, training and internal
and external communication.
-These new capabilities have a number of implications for the
practice of brand management.

5.109
 Implications for the Practice of
Brand Management
■ They have a number of implications for the practice
of brand management.
-Marketers are increasingly abandoning(discarding)
the mass-market strategies that built brand
powerhouses in the 1950s, 1960s, and 1970s to
implement new approaches.
-Even marketers in staid (calm,serious), traditional
industries are rethinking their practices and not
doing business as usual.

5.110
 Integrating Marketing Programs and
■ There are many different Activities
means by which products and services
and their corresponding marketing programs can build brand
equity.
■ Channel strategies, communication strategies, pricing strategies,
and other marketing activities can all enhance or detract from
brand equity. The customer based brand equity model provides
some useful guidance to interpret these effects.
■ Creative and original thinking is necessary to create fresh new
marketing programs that break through the noise in the marketplace
to connect with customers.
■ Marketers are increasingly trying a host of unconventional
(original) means of building brand equity.
■ Marketers must orchestrate (arrange) programs to provide
seamlessly(flawlessly) integrated solutions and experiences for
customers that create awareness, spur(urge) demand and
cultivate loyalty.
5.111
1.Personalizing Marketing
Personalized marketing refers to targeting a product or
service to an individual customer.
-It can be achieved only by collecting data and information
about a particular customer, or small group of customers, and
then creating products and/or advertisements of special
interest to that individual.
-To adapt to the increased consumer desire for
personalization, marketers have embraced concepts such
as.
i. Experiential marketing
ii. Relationship marketing

5.112
 i. Experiential Marketing
■ Experiential marketing is based on the entire experience a
consumer has with a product or service. Whereas traditional
marketing sells by pointing out benefits and features,
experiential marketing focuses on allowing the consumer to
try the service or product for himself.
■ Experiential marketing promotes a product by not only
communicating a product’s features and benefits but also
connecting it with unique and interesting consumer
experiences.
■ One marketing commentator describes experiential
marketing this way:
-“The idea is not to sell something, but to demonstrate how a
brand can enrich a customer’s life.”
5.113
Schmitt details five different types of marketing experiences
that are becoming increasingly vital to consumers’ perceptions of brands:
• Sense marketing appeals to consumers’ senses (sight, sound,
touch, taste, and smell).
• Feel marketing appeals to customers’ inner feelings and
emotions, ranging from mildly positive moods linked to a
brand (e.g., for a non involving, nondurable grocery brand or service or industrial
product) to strong emotions of joy and pride (e.g., for a consumer durable, technology,
or social marketing campaign).
• Think marketing appeals to the intellect in order to deliver
cognitive, problem-solving experiences that engage customers creatively.
• Act marketing targets physical behaviors, lifestyles, and
interactions.
• Relate marketing creates experiences by taking into account
individuals’ desires to be part of a social context (e.g., to their
self-esteem, being part of a subculture, or a brand community).
5.114
 ii. Relationship Marketing
Relationship Marketing. Marketing activities that are
aimed at developing and managing trusting and long-
term relationships with larger customers.
-It is based on the premise that current customers are
the key to long-term brand success.
-It attempts to provide a more holistic, personalized
brand experience to create stronger consumer ties.
-It expands both the depth and the breadth of brand-
building marketing programs.
-Marketing strategies must transcend the actual
product or service to create stronger bonds with
consumers and maximize brand resonance. 5.115
-the basic benefits relationship marketing
provides:
• Acquiring new customers can cost five times as much as
satisfying and retaining current customers.
• The average company loses 10 percent of its customers
each year.
• A 5 percent reduction in the customer defection rate can
increase profits by 25–85 percent, depending on the industry.
• The customer profit rate tends to increase over the life of
the retained customer
Three concepts that can be helpful with relationship
marketing:
a. Mass customization,
b. one-to-one marketing, and
c. permission marketing. 5.116
 a. Mass customization
-Making products to fit the customer’s exact
specifications
-Production of personalized or custom-tailored goods
or services to meet consumers' diverse and changing
needs at near mass production prices.
-Enabled by technologies such as computerization,
internet, product modularization, and lean production,
it portends/means the ultimate stage in market
segmentation where every customer can have exactly
what he or she wants.
-Mass customization is not restricted to products.
Many service organizations
-Mass customization can offer supply-side benefits
5.117
 b. One-to-One Marketing
■ One-to-one marketing is a (CRMOne-to-one marketing is a (CRM) strategy
emphasizing personalized interactions with customers. The personalization of
interactions is thought to foster greater customer loyalty and better return on
marketing investment.
■ It is a strategy that relies on getting to know the individual choices made by a
customer, and then tailoring marketing outreach to each customer differently based
on those choices.
■ It involves the representative or sales personIt involves the representative or sales
person listening to what the customerIt involves the representative or sales person
listening to what the customer requires and then proposing servicesIt involves the
representative or sales person listening to what the customer requires and then
proposing services or goodsIt involves the representative or sales person listening to
what the customer requires and then proposing services or goods they can offerIt
involves the representative or sales person listening to what the customer requires
and then proposing services or goods they can offer to meet those requirements.
■ Consumers help to add value by providing information.

5.118
■ Firm adds value by generating rewarding experiences with
consumers.
■ Creates switching costs for consumers
■ Reduces transaction costs for consumers
■ Maximizes utility for consumers
One-to-one marketing is thus based on several fundamental strategies:
• Focus on individual consumers through consumer databases
—“We single out consumers.”
• Respond to consumer dialogue via interactivity—“The
consumer talks to us.”
• Customize products and services—“We make something
unique for him or her.”

5.119
 One-to-One Marketing:
Consumer Differentiation
■ Treat different consumers differently
■ Different needs
■ Different values to firm
■ Current
■ Future (lifetime value)
■ Devote more marketing effort on most valuable
consumers (and customers)

5.120
One-to-One Marketing: Five Key Steps
■ Identify consumers, individually and
addressably
■ Differentiate them by value and needs
■ Interact with them more cost-efficiently and
effectively
■ Customize some aspect of the firm’s behavior
■ Brand the relationship

5.121
 c. Permission Marketing
■ Permission marketing, the practice of marketing to consumers only
after gaining their express permission and build customer loyalty.
■ It is an approach to selling goods and services in which a prospect
explicitly agrees in advance to receive marketing information.
example-pOpt-in e-mail, where internet users sign up in advance for
information about certain product categories, is a good example of
permission marketing.
■ Given the large number of marketing communications that bombard
consumers every day, Godin argues that if marketers want to attract a
consumer’s attention, they first need to get his or her permission with
some kind of inducement—a free sample, a sales promotion or
discount, a contest, and so on. By eliciting consumer cooperation in
this manner, marketers might develop stronger relationships with
consumers so that they desire to receive further communications in
the future. Those relationships will only develop, if marketers respect
consumers’ wishes, and if consumers express a willingness to become
more involved with the brand. 5.122
 Five Steps in Permission Marketing
1. Offer the prospect an incentive to volunteer.
2. Offer the interested prospect a curriculum over
time, teaching consumers about the product.
3. Reinforce the incentive to guarantee that prospect
maintains the permission.
4. Offer additional incentives to get more permission
from the consumer.
5. Over time, leverage the permission to change
consumer behavior toward profits.

5.123
 Integrating the Brand
Into Supporting Marketing Programs
Supporting marketing mix should be designed to enhance
awareness and establish desired brand image.

1.Product strategy
2.Pricing strategy
3.Channel strategy

5.124
1.Product Strategy
-The product itself is the primary influence on what
consumers experience with a brand, what they hear about a
brand from others, and what the firm can tell customers about
the brand.
-Designing and delivering a product or service that fully
satisfies consumer needs and wants is a prerequisite for
successful marketing.

a. Perceived quality and value

-Perceived quality is customers’ perception of the
overall quality or superiority of a product or service
compared to alternative and with respect to its
intended purpose.
5.125
-Consistent with the CBBE model, research has identified the
following general dimensions for estimate consumer opinion
about quality.
i. performance,
ii. features,
iii. conformance,
iii. reliability,
iv. durability,
vi. serviceability,
vii. style and design.
-For creating value, markets have to consider
i. Brand intangibles: It depends on broader performance
considerations as well, like speed, accuracy, and care of
product delivery and installation, the promptness, courtesy,
and helpfulness of customer service and training, and the
quality of repair service. 5.126
 ii.Total quality management and return on quality
iii. Value chain: It identifies five primarily value creating
activities
-Inbound logistics include the receiving, warehousing, and
inventory control of input materials.
-Operations are the value-creating activities that transform
the inputs into the final product.
-Outbound logistics are the activities required to get the
finished product to the customer, including warehousing, order
fulfillment, etc.
-Marketing & Sales are those activities associated with
getting buyers to purchase the product, including channel
selection, advertising, pricing, etc.
-Service activities are those that maintain and enhance the
product's value including customer support, repair services,
etc. 5.127
Procurement - the function of purchasing the raw materials and other inputs used in
the value-creating activities.
Technology Development - includes research and development, process automation,
and other technology development used to support the value-chain activities.
Human Resource Management - the activities associated with recruiting,
development, and compensation of employees.
Firm Infrastructure - includes activities such as finance, legal, quality management,
etc.

b. After marketing: It is those marketing activities that occur after customer purchase.
Steps which a firm takes after a saleIt is those marketing activities that occur after
customer purchase. Steps which a firm takes after a sale is completedIt is those
marketing activities that occur after customer purchase. Steps which a firm takes after a
sale is completed, to retain loyaltyIt is those marketing activities that occur after
customer purchase. Steps which a firm takes after a sale is completed, to retain loyalty
of the customerIt is those marketing activities that occur after customer purchase. Steps
which a firm takes after a sale is completed, to retain loyalty of the customer for repeat
sales. Marketers may need to consider the role of user manuals, customer service
programs, and loyalty Programs as after marketing programs.

5.128
i. User Manuals. To enhance consumers’ consumption experiences,
marketers must develop user manuals or help features that clearly and
comprehensively describe both what the product or service can do for
consumers and how they can realize these benefits.
ii. Customer Service Programs. It consists of standards and
training. All staff follow these standards to ensure that service is
maintained at the necessary level to keep your customers happy.
Creating stronger ties with consumers can be as simple as creating a
well-designed customer service department.
iii. Loyalty programs: These have become one popular means by
which marketers can create strong ties to customers through long-term,
interactive, value-added relationships.
-some tips for building effective loyalty program
*Know your audience
*Change is good
*Listen to your beat customer
*Engaged people 5.129
 2.Pricing Strategy
■ Price premiums are among the most important brand equity
benefits of building a strong brand.
■ Consumer price perceptions
■ Consumers often rank brands according to price tiers in a
category(figure 5.5 show the price tiers).
■ Marketers have adopted value based pricing strategies-attempting
to sell the right product at the right price-to better meet consumer
wishes, as describe in the next section.
■ Setting prices to build brand equity
■ Value pricing: It uncover the right blend of product quality, product
costs and product prices that fully satisfies the needs and wants of
consumers and the profit targets of the firm.
■ Price Segmentation. different consumers may have different value
perceptions and therefore could and should receive different prices.
■ Everyday low pricing
5.130
 3.Channel Strategy
■ The manner by which a product is sold or
distributed can have a profound impact on the
resulting equity and ultimate sales success of a
brand.
■ Marketing channels are sets of interdependent
organizations involved in the process of making a
product or service available for use or consumption.
■ Channel strategy includes the design and
management of intermediaries such as wholesalers,
distributors, brokers, and retailers.

5.131
 i. Channel Design
a. Indirect channels: Selling through third-party
intermediaries such as agents or broker representatives,
wholesalers or distributors, and retailers or dealers
* Push and pull strategies
* Channel Support. A number of different services provided
by channel members can enhance the value to consumers of
purchasing and consuming a brand name product.
b. Direct channels :Selling through personal contacts from
the company to prospective customers by mail, phone,
electronic means, in-person visits, and so forth
*Company-Owned Stores. manufacturers are introducing their
own retail outlets to sell their product directly to customers.
*Store-Within-a-Store. such as Nike, are attempting to create
their own shops within major department stores . 5.132
c. Online Strategies: allow consumers to shop when
and how they want. Many consumers value the
convenience of ordering from companies online or
over the phone and picking up the physical product
at their local store rather than having it shipped.

5.133
 CHAPTER 6:
INTEGRATING MARKETING
COMMUNICATIONS TO BUILD BRAND EQUITY

6.134
 Overview
■ Marketing communications are the means by
which firms attempt to inform, persuade, and
remind consumers—directly or indirectly—
about the brands they sell.

6.135
 The New Media Environment
■ Traditional advertising media such as TV,
radio, magazines, and newspapers seem to be
losing their grip on consumers.
■ Marketers pour $18 billion into Internet
advertising in 2005. While Web advertising
jumped 20% during this time, spending for TV
ads remained flat(smooth).

6.136
 Simple Test for Marketing Communications
Current Communication Desired
Brand Brand
Knowledge Knowledge

1. What is your current brand knowledge? Have you

created a detailed mental map?
2. What is your desired brand knowledge? Have you
defined optimal points- of-parity and points-of-
difference and a brand mantra?
3. How does the communication option help the brand
get from current to desired knowledge with
consumers? Have you clarified the specific effects on
knowledge engendered(creating) by communications?
6.137
Information Processing Model of Communications
for a person to be persuaded by any form of communication (a TV
advertisement, newspaper editorial, or blog posting), the following six
steps must occur:
1. Exposure/Disclosure: A person must see or hear the
communication.
2. Attention/Responsiveness: A person must notice(warning)
the communication.
3. Comprehension: A person must understand(recognize,
realize) the intended message or arguments of the
communication.
4. Yielding: A person must respond favorably to the intended
message or arguments of the communication.
5. Intentions/Meanings: A person must plan to act in the
desired manner of the communication.
6. Behavior/Actions: A person must actually act in the desired manner
6.138
If there is a breakdown or failure in any step along the way, then
successful communication will not result. For example, consider the
potential pitfalls(hazard) in launching a new advertising
campaign:
1. A consumer may not be exposed to an ad because the media
plan missed the mark.
2. A consumer may not notice an ad because of a boring and
uninspired creative strategy.
3. A consumer may not understand an ad because of a lack of
product category knowledge/technical sophistication because
of a lack of awareness and familiarity about the brand itself.
4. A consumer may fail to respond favorably and form a
positive attitude because of irrelevant or unconvincing product
claims.
5. A consumer may fail to form a purchase intention because of a lack of
an immediate perceived need. 6.139
 Marketing Communications Options
A. Advertising
B. Promotions
C. Event marketing and sponsorship
D. Public relations and publicity
E. Personal selling

6.140
 A. Advertising
■ Advertising is any paid form of nonpersonal
presentation and promotion of ideas, goods, or
services by an identified sponsor.
■ A powerful means of creating strong, favorable, and
unique brand associations and eliciting positive
judgments and feelings
■ Controversial because its specific effects are often
difficult to quantify and predict
■ a number of studies using very different approaches
have shown the potential power of advertising on
brand sales. 6.141
 Ideal Ad Campaign
from an advertising standpoint, the ideal ad campaign would ensure that:
1. The right consumer is exposed to the right message at the
right place and at the right time.
2. The creative strategy for the advertising causes the
consumer to notice and attend to the ad but does not distract
from the intended message.
3. The ad properly reflects the consumer’s level of
understanding about the product and the brand.
4. The ad correctly positions the brand in terms of desirable
and deliverable points-of-difference and points-of-parity.
5. The ad motivates consumers to consider purchase of the
brand.
6. The ad creates strong brand associations to all these stored
communication effects so that they can have an effect when
6.142
Category of Advertising
■ Television
■ Radio
■ Print
■ Direct response
■ Interactive: websites, online ads
■ Mobile marketing
■ Place advertising:
■ Billboards; movies, airlines, and lounges; product
placement; and point-of-purchase advertising

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 Category of Advertising
1.Television is a powerful advertising medium because it
allows for sight, sound, and motion and reaches a broad
spectrum of consumers.
-Pros & Cons. From a brand equity perspective, TV
advertising has two particularly important strengths.
First, it can be an effective means of vividly demonstrating
product attributes and persuasively explaining their
corresponding consumer benefits.
Second, TV advertising can be a compelling means for
dramatically portraying user and usage imagery, brand
personality, emotions, and other brand intangibles.
-drawbacks. Consumers can overlook product-related messages and
the brand itself. the large number of ads and nonprogramming
material on television creates clutter that makes it easy for consumers
6.144
2.Radio is a pervasive medium.
-advantage to radio is flexibility—stations are highly targeted,
ads are relatively inexpensive to produce and place, and short
closings allow for quick responses.
- disadvantages of radio are the lack of visual image and
the relatively passive nature of consumer processing that
results.

3.Print media has taken a huge hit in recent years as more and
more consumers choose to collect information and seek
entertainment online.
advantages. Magazines are particularly effective at building
user and usage imagery. Newspapers are more timely and
pervasive, well suited to communicate product information.
6.145
4. Direct Response uses mail, telephone, Internet, and other
contact tools to communicate with or solicit a response from
specific customers and prospects.
-Direct response can take many forms and is not restricted to
solicitations by mail, telephone, or even within traditional
broadcast and print media.

5.Interactive uses online or offline interactive media to

communicate with consumers and to promote products,
brands, services, and public service announcements, corporate
or political groups.

6.Mobile marketing is marketing on or with a mobile device, such as a

smart phone. Mobile marketing can provide customers with time and
location sensitive, personalized information that promotes goods,
services and ideas. In a more theoretical manner. 6.146
7. Place ad is advertising that reaches the consumer while
they are outside the home.
Out of home advertising is focused on marketing to consumers
when they are "on the go" in public places, in transit, waiting
(such as in a medical office), and/or in specific commercial
locations (such as in a retail venue). Some of the option
available include:
i.Billboards and Posters. now employ colorful, digitally
produced graphics, backlighting, sounds, movement, and
unusual—even three-dimensional—images to attract attention.
The medium has improved in terms of effectiveness (and
measurability), technology (some billboards are now
digitized), and provide a good opportunity for companies to
sync their billboard strategies with mobile advertising.
6.147
ii. Product placement is an advertisingadvertising technique used by companiesused by companies to subtly promoteused
by companies to subtly promote their productsused by companies to subtly promote their products through a non-traditional
advertising technique, usually through appearancesused by companies to subtly promote their products through a non-
traditional advertising technique, usually through appearances in filmused by companies to subtly promote their products
through a non-traditional advertising technique, usually through appearances in film, television, orused by companies to
subtly promote their products through a non-traditional advertising technique, usually through appearances in film,
television, or other media.
-Product placements are often initiated through an agreement-Product placements are often initiated through an agreement
between a product manufacturer-Product placements are often initiated through an agreement between a product
manufacturer and the media company in which the media company receives-Product placements are often initiated through
an agreement between a product manufacturer and the media company in which the media company receives
economic benefit.
-A company will often pay-A company will often pay a fee to have their product used, displayed, or significantly featured in
a movie or show.
For example:Coca-ColaFor example:Coca-Cola could pay a given fee to have the titleFor example:Coca-Cola could pay a
given fee to have the title character drinking a Coke, instead of a Pepsi beverage.
iii. point of purchase is the locationhe location or medium at which a product is purchased by an end-userhe location or
medium at which a product is purchased by an end-user. A point of purchasehe location or medium at which a product is
purchased by an end-user. A point of purchase may be a physical location, such as a storehe location or medium at which a
product is purchased by an end-user. A point of purchase may be a physical location, such as a store, booth, or other retail
outlethe location or medium at which a product is purchased by an end-user. A point of purchase may be a physical location,
such as a store, booth, or other retail outlet, or may consist of an electroniche location or medium at which a product is
purchased by an end-user. A point of purchase may be a physical location, such as a store, booth, or other retail outlet, or
may consist of an electronic saleshe location or medium at which a product is purchased by an end-user. A point of purchase
may be a physical location, such as a store, booth, or other retail outlet, or may consist of an electronic sales environmenthe
location or medium at which a product is purchased by an end-user. A point of purchase may be a physical location, such as
a store, booth, or other retail outlet, or may consist of an electronic sales environment such as a telephone-based ordering
servicehe location or medium at which a product is purchased by an end-user. A point of purchase may be a physical
location, such as a store, booth, or other retail outlet, or may consist of an electronic sales environment such as a telephone-
based ordering service or a website.
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 B. Promotions
■ Sales promotions are short-term incentives to
encourage trial or usage of a product or service.

■ Marketers can target sales promotions at either the

trade or end consumers
■ Consumer promotions
■ Consumer promotions are designed to change the choices,
quantity, or timing of consumers’ product purchases.
■ Trade promotions
■ Trade promotions are often financial incentives or
discounts given to retailers, distributors, and other
members of the trade to stock, display, and in other ways
facilitate the sale of a product.
6.149
 C.Event Marketing and Sponsorship
■ Event marketing is the activityhe activity of designing or developing
he activity of designing or developing a themed activity, occasion,
display, or exhibithe activity of designing or developing a themed
activity, occasion, display, or exhibit (such as a sporting eventhe
activity of designing or developing a themed activity, occasion,
display, or exhibit (such as a sporting event, music festival, fair, or
concert) to promotehe activity of designing or developing a themed
activity, occasion, display, or exhibit (such as a sporting event, music
festival, fair, or concert) to promote a producthe activity of designing
or developing a themed activity, occasion, display, or exhibit (such as
a sporting event, music festival, fair, or concert) to promote a product,
cause, or organization.
■ It is public sponsorship of events or activities related to sports, art,
entertainment, or social causes.
■ Event sponsorship provides a different kind of communication
option for marketers. By becoming part of a special and personally
relevant moment in consumers’ lives, sponsors can broaden and
deepen their relationship with their target market.
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 D. Public Relations and Publicity
■ Publicity is the movement of information with the effect of increasing
public awareness of a subject. The subjects of publicity include
people (for example, politicians and performing artists),
goods and services, organizations of all kinds, and works of art or
entertainment.
■ Public relations and publicity relate to a variety of programs and are
designed to promote or protect a company’s image or its individual
products.
■ Buzz Marketing
■ Buzz marketing is a viral marketing technique that attempts to
make each encounter with a consumer appear to be a unique,
spontaneous personal exchange of information instead of a
calculated marketing pitch(area) choreographed (arranged)by a
professional advertiser.
■ It is the interaction of consumers and users of a product or service
which amplifies or alters the original marketing message. This
emotion, energy, excitement, or anticipation about a product 6.151
or
 E. Personal Selling
■ Personal selling is face-to-face interaction with one or more
prospective purchasers for the purpose of making sales
■ The keys to better selling
■ Rethink training
■ Get everyone involved
■ Inspire from the top
■ Change the motivation
■ Forge electronic links
■ Talk to your customers

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 Integrated Marketing Communications (IMC)
■ IMC is the application of consistent brand is the application
of consistent brand messaging across both traditional and
non-traditional marketing channels is the application of
consistent brand messaging across both traditional and non-
traditional marketing channels and using different
promotional methods to reinforce each other.
■ The “voice” of the brand
■ A means by which it can establish a dialogue and build
relationships with consumers
■ Allow marketers to inform, persuade, provide incentives,
and remind consumers directly or indirectly
■ Can contribute to brand equity by establishing the brand in
memory and linking strong, favorable, and unique
associations to it 6.153
 Developing IMC Programs
■ Mixing communication options
■ Evaluate all possible communication options
available to create knowledge structures according
to effectiveness criteria as well as cost
considerations.
■ Different communication options have different
strengths and can accomplish different objectives.
■ Determine the optimal mix

6.154
 Criteria for IMC Programs
■ Coverage: What proportion of the target
audience is reached by each communication
option employed? How much overlap exists
among options?
■ Cost: What is the per capita expense?

6.155
 IMC Audience Communication Option
Overlap
Communication Communication
Option A Option B

n c
di e
Au
e

Communication Option
C
Note: Circles represent the market segments reached by various communication options.
6.156
Shaded portions represent areas of overlap in communication options.
 Evaluating IMC Programs (cont.)
■ Contribution: The collective effect on brand
equity in terms of
■ enhancing depth and breadth of awareness
■ improving strength, favorability, and uniqueness of
brand associations
■ Commonality: The extent to which information
conveyed by different communication options
share meaning

6.157
 Evaluating IMC Programs (cont.)
■ Complementarity: The extent to which different
associations and linkages are emphasized
across communication options
■ Versatility: The extent to which information
contained in a communication option works
with different types of consumers
■ Different communications history
■ Different market segments

6.158
Marketing Communication Guidelines to
Build Brand Equity
MC-techniques that co. uses to convey messages about products .
Brand equity -brand's value/ consumer perception of brand.
■ Be analytical/logical: Use frameworks of
consumer behavior and managerial decision
making to develop well-reasoned
communication programs.
■ Be curious: Fully understand consumers by
using all forms of research and always be
thinking of how you can create added value
for consumers
■ Be single-minded: Focus message on well- 6.159
Marketing Communication Guidelines (Cont.)
Be integrative: to bring together or incorporate (parts)
into a whole.
Reinforce your message through consistency and
cuing/signaling/promoting/reminding across all
communications.

Be creative(innovative): State your message in a

unique fashion; use alternative promotions and media
to create favorable, strong, and unique brand
associations

6.160
 Marketing Communication Guidelines
(Cont.)
■ Be observant: be watchful/sharp-eyed/perceptive.
Monitor competition, customers, channel members,
and employees through tracking studies.

■ Be realistic/genuine: Understand the complexities

involved in marketing communications.

■ Be patient/tolerant: Take a long-term view of

communication effectiveness to build and manage
brand equity.
■ https://www.youtube.com/watch?v=cAhR8iQekJY
6.161
 CHAPTER 7:
LEVERAGING SECONDARY BRAND
KNOWLEDGE TO BUILD BRAND EQUITY

7.162
Figure 2-9 Building Customer-Based Brand Equity
BRAND BUILDING TOOLS AND OBJECTIVES CONSUMER KNOWLEDGE EFFECTS BRANDING BENEFITS

Choosing Brand Elements

Brand name Memorability Brand Awareness Possible Outcomes

Logo Meaningfulness
Symbol Appeal Greater loyalty
Depth Recall
Character Transferability
Recognition Less vulnerability to competitive
Packaging Adaptability
Slogan Protectability marketing actions and crises

Breadth Purchase Larger margins

Consumption
Developing Marketing Programs More elastic response to price
decreases
Product Tangible and intangible benefits
Price Value perceptions More inelastic response to price
Distribution channels Integrate”push” and “pull” increases
Communications Mix and match options
Brand Associations Greater trade cooperation and
support

Strong Relevance
Increased marketing communication
Leverage of Secondary Associations Consistency
efficiency and effectiveness
Company Desirable
Favorable Possible licensing opportunities
Country of origin Deliverable
Channel of distribution Awareness
Meaningfulness More favorable brand extension
Other brands Point-of-parity
Transferability Unique evaluations
Endorsor Point-of-difference
Event

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 Leveraging Secondary Associations
■ Secondary brand associations may be quite
important to creating strong, favorable, and unique
associations or positive responses if existing brand
associations or responses are deficient(lacking) in
some way.
■ It can also be an effective way to reinforce existing
associations and responses in a fresh and different
way.
■ Creation of new brand associations

7.164
 Leveraging Secondary Associations
-Three important factors in predicting the extent of leverage
from linking the brand to another entity:
i. Awareness and knowledge of the entity: If consumers have
no awareness or knowledge of the secondary entity, then
obviously there is nothing they can transfer from it. Ideally,
consumers would be aware of the entity; hold some strong,
favorable, and perhaps even unique associations about it; and
have positive judgments and feelings about it.
ii. Meaningfulness of the knowledge of the entity: Given that
the entity evokes/induces some positive associations,
judgments, or feelings, is this knowledge relevant and
meaningful for the brand? Some associations, judgments, or
feelings may seem relevant to and valuable for the brand,
whereas others may seem to consumers to have little
connection.
7.165
iii. Transferability of the knowledge of the entity: Assuming
that some potentially useful and meaningful associations,
judgments, or feelings exist regarding the entity and could
possibly transfer to the brand, how strongly will this
knowledge actually become linked to the brand?
-secondary associations may lead to a transfer of:
Response-type associations
Judgments (especially credibility/trustworthiness )
Feelings
Meaning-type associations
Product or service performance
Product or service imagery

7.166
 Leveraging Secondary Associations
■ Brand associations may themselves be linked to other entities,
creating secondary associations. different means by which we can
leverage secondary brand associations by linking the brand to the
following:
1.Company (through branding strategies)
2.Country of origin (through identification of product origin)
3.Channels of distribution (through channels strategy)
4.Other brands (through co-branding)
■ Special case of co-branding is ingredient(feature) branding
5.Characters (through licensing)
6.Celebrity spokesperson (through endorsement(support)
advertising)
7.Events (through sponsorship/funding)
8.Other third-party sources (through awards and reviews)
■ The first three entities reflect source factors: who makes the product,
where the product is made, and where it is purchased. The remaining
entities deal with related people, places, or things. 7.167
1.Company (through branding strategies): Branding strategies are
an important determinant of the strength of association from
the brand to the company and any other existing brands. Three
main branding options exist for a new product:
i. Create a new brand.
ii. Adopt or modify an existing brand. Nokia x
iii. Combine an existing and a new brand. concophilip
-A corporate or family brand can be a source of much brand
equity. For example, a corporate brand may evoke(remind)
associations of common product attributes, benefits, or
attitudes; people and relationships; programs and values; and
corporate credibility.
2.Country of origin (through identification of product origin): the
country or geographic location from which it originates may also
become linked to the brand and generate secondary associations. Many
countries have become known for expertise in certain product categories
7.168
3.Channels of distribution (through channels strategy):
Because of associations to product assortment, pricing and
credit policy, quality of service, and so on, retailers have their
own brand images in consumers’ minds.
-To more directly shape their images, many retailers
aggressively advertise and promote directly to customers.

4.Co-
▪Branding
Occurs when two or more existing brands are combined into
a joint product or are marketed together in some fashion
▪Examples:
▪ Sony Ericsson
▪ Nestle’s Cheerios Cookie Bars

7.169
 Advantages of Co-Branding
▪ Borrow needed expertise
▪ Leverage equity you don’t have
▪ Reduce cost of product introduction
▪ Expand brand meaning into related categories
▪ Broaden meaning
▪ Increase access points
▪ Source of additional revenue

7.170
 Disadvantages of Co-Branding
▪ Loss of control
▪ Risk of brand equity dilution( strength )
▪ Negative feedback effects
▪ Lack of brand focus and clarity
▪ Organizational distraction (interruption)

7.171
 Ingredient/component Branding
▪ A special case of co-branding that involves creating
brand equity for materials, components, or parts that
are necessarily contained within other branded
products
■ Ingredient brands attempt to create enough
awareness and preference for their product that
consumers will not buy a host product that does not
contain the ingredient.
▪ Examples:
▪ Dairy milk chocklet
▪ Intel inside
7.172
 5. Licensing
▪ Involves contractual arrangements whereby firms
can use the names, logos, characters, and so forth of
other brands for some fixed fee.
■ Essentially, a firm is “renting” another brand to
contribute to the brand equity of its own product.
▪ Examples:
▪ Entertainment (Star Wars, Jurassic Park, etc.)
▪ Television and cartoon characters (The Simpsons)
▪ Designer apparel and accessories (Calvin Klein, Pierre
Cardin, etc.)
7.173
 6.Celebrity Endorsement
■ Using well-known and admired people to promote
products is a widespread phenomenon with a long
marketing history. Even the late U.S. president
Ronald Reagan was a celebrity endorser,
pitching(headfirst) several different products,
including cigarettes, during his acting days.
▪ Draws attention to the brand
▪ Shapes the perceptions of the brand
▪ Celebrity should have a high level of visibility and a rich set
of useful associations, judgments, and feelings
▪ Q-Ratings to evaluate celebrities
▪ Example: bishow shera allrounder (sakib) desh shera
network Grameen phone 7.174
Celebrity Endorsement: Potential Problems
▪ Celebrity endorsers can be overused by endorsing
many products that are too varied.
▪ There must be a reasonable match between the
celebrity and the product.
▪ Celebrity endorsers can get in trouble or lose
popularity.
▪ Many consumers feel that celebrities are doing
the endorsement for money and do not
necessarily believe in the endorsed brand.
▪ Celebrities may distract attention from the brand.
7.175
 7.Sporting, Cultural, or Other
Events
■ Events have their own set of associations that may
become linked to a sponsoring brand under certain
conditions.
■ Sponsored events can contribute to brand equity by
becoming associated to the brand and improving
brand awareness, adding new associations, or
improving the strength, favorability, and uniqueness
of existing associations.
■ The main means by which an event can transfer
associations is credibility.
■ Example-FIFA World Cup Qatar 2022™ in Arabic
7.176
 8.Third-Party Sources
■ Marketers can create secondary associations in a
number of different ways by linking the brand to
various third-party sources.
■ Third-party sources can be especially
credible/reliable sources.
■ For example, pharmacy companies have encouraged
the doctors to prescribe their drugs.

7.177
 CHAPTER 8:
DEVELOPING A BRAND EQUITY
MEASUREMENT AND MANAGEMENT SYSTEM
In this chapter, we take a detailed look at
*what consumers know and feel about and act toward brands
and
*how marketers can develop measurement procedures to
assess how well their brands are doing.
The customer-based brand equity (CBBE) concept provides
guidance about how we can measure brand equity.
-Two basic approaches to measuring brand equity present
themselves.
1. An indirect approach can assess potential sources of
customer-based brand equity by identifying and tracking
consumers’ brand knowledge—all the thoughts, feelings,
images, perceptions, and beliefs linked to the brand. 8.178
2. A direct approach, on the other hand, can assess the
actual impact of brand knowledge on consumer response to
different aspects of the marketing program.

8.179
-In this chapter, we also consider how to develop and
implement a brand equity measurement system.
-A brand equity measurement system is a set of research
procedures designed to provide marketers with timely,
accurate, and actionable information about brands so they can
make the best possible tactical decisions in the short run and
strategic decisions in the long run.
-The goal is to achieve a full understanding of the sources and
outcomes of brand equity and to be able to relate the two as
much as possible.
-The ideal brand equity measurement system would provide
complete, up-to-date, and relevant information about the brand
and its competitors to the right decision makers at the right
time within the organization.
8.180
 The New Accountability
■ Virtually every marketing dollar spent today
must be justified as both effective and efficient
in terms of “return of marketing investment”
(ROMI).
■ Some observers believe that up to 70% (or
even more) of marketing expenditures may be
devoted to programs and activities that cannot
be linked to short-term incremental profits, but
yet can be seen as improving brand equity.

8.181
CONDUCTING BRAND AUDITS
To learn how consumers think, feel, and act toward brands and
products so the company can make informed strategic
positioning decisions, marketers should first conduct a brand
audit.
A brand audit is a comprehensive examination of a brand to
discover its sources of brand equity.
In accounting, an audit is a systematic inspection by an outside
firm of accounting records including analyses, tests, and
confirmations.
Similarly, A marketing audit is a “comprehensive, systematic,
independent, and periodic examination of a company’s—or
business unit’s—marketing environment, objectives,
strategies, and activities with a view of determining problem
areas and opportunities and recommending a plan of action to
improve the company’s marketing performance.” 8.182
A brand audit is a more externally, consumer-focused
exercise to assess
*the health of the brand,
*uncover its sources of brand equity, and
*suggest ways to improve and leverage its equity.
-A brand audit requires understanding the sources of brand
equity from the perspective of both the firm and the consumer.
-From the perspective of the firm,
*what products and services are currently being offered to
consumers, and
*how they are being marketed and branded?
-From the perspective of the consumer, what deeply held
perceptions and beliefs create the true meaning of brands and
products?
-The brand audit consists of two steps:
1.the brand inventory and 8.183
1.Brand Inventory
-The purpose of the brand inventory is to provide a current,
comprehensive profile of how all the products and services
sold by a company are marketed and branded.
-Profiling each product or service requires marketers to
catalogue the following in both visual and written form for
each product or service sold:
*the names, logos, symbols, characters, packaging, slogans, or
other trademarks used;
*the inherent product attributes or characteristics of the brand;
*the pricing, communications, and distribution policies; and
*any other relevant marketing activity related to the brand.

8.184
2. The brand exploratory is research directed to understanding
what consumers think and feel about the brand and act toward
it in order to better understand sources of brand equity as well
as any possible barriers.

8.185
 The Brand Value Chain
■ Broader perspective than just the CBBE model
■ The brand value chain is a structured
approach to assessing the sources and
outcomes of brand equity and the manner by
which marketing activities create brand value.

8.186
 Brand Value Chain

Marketing Custome Market Shareholde

VALUE
Program r Performanc r
STAGES e Value
Investmen Mindset
t
- Product - Awareness
- Price premiums
- Stock price
- Price elasticity
- - Associations - P/E ratio
- Market share
Communications - Attitudes - Market
- Trade - Expansion
- Attachment capitalization
- Employee success
- Activity
- Cost structure
- Other
- Profitability

Program Consume Market

FILTERS Multiplie r Multiplie
r Multiplier r
- Clarity - Channel support - Market dynamics
- Relevance - Consumer size and profile - Growth potential
- - Competitive reactions - Risk profile
Distinctiveness - Brand
- Consistency contribution
■ The brand value chain is a structured approach to
*assessing the sources and outcomes of brand equity and
*the manner which marketing activities create brand value.

■ The brand value chain recognizes that numerous

individuals within an organization
*can potentially affect brand equity and
*need to be aware of relevant branding effects.

■ The brand value creation process being when the firms

invests in a marketing program targeting actual or
potential customers.

8.188
■ The marketing activity associated with the program then
affects the customer mindset with respect to the brand-
what customer know and deal about the brand.

■ Across a broad group of customers, then results in certain

outcomes for the brand in terms of how it performs in the
marketplace–the collective impact of individual customer
actions regarding how much and when they purchase, the
price that they pay and so forth.

8.189
Finally the investment community considers this market
performance and other factors such as replacement cost
and purchase price in acquisitions to arrive at an assessment
of shareholder value in general and a value of a brand in
particular.

8.190
 Value Stages
Brand value creation begins with marketing activity/
Marketing program by the firm
1.Marketing program investment: Any marketing program
that can be attributed to brand value development falls into
this first value stage.
-*Product research development, and design;
*trade or internationally support;
*marketing communication ; and
*employee training are such kinds of activities.

8.191
2. Program quality multiplier: The ability of the marketing
program to affect the customer mind set depends on its
quality. MP- designed set of activities that help achieve
marketing objectives

-Four particulars important factors to judge the quality of

marketing program.
i. Clarity/Clearness – how much clarity is evident in the
marketing program?
ii. Relevance /Applicability– how relevant/related is the
marketing program to customers?
iii. Distinctiveness – how unique or distinctive is the
marketing program from those offered by competitors?
iv. Consistency – how consistent/uniformity and well
integrated is the marketing program?
8.192
3. Customer multiplier: The extent to which value created in
the minds of customers affects market performance.
-It depends on factors such as
*competitive superiority,
*channel support, and
*customer size and profile.
-Five dimensions have emerged from prior research as particularly
important measures of the customer mind set.
i. Brand awareness – the extent and ease with which customers recall
and recognize the brand and can identify the products and services
with which it is associate.
ii. Brand associations – the strength, favorability and uniqueness of
perceived attributes and benefits for the brand.
iii. Brand attitudes – overall evaluation of the brand in terms of its
quality and the satisfaction it generates. 8.193
iv. Brand attachment – how loyal the customer feels toward
the brand.
v. Brand activity – the extent to which customers
*use the brand,
*talk to others about the brand,
*seek out brand information, promotion and events and so on.

-Brand value is created at this stage when customers have –

i. Deep, broad brand awareness
ii. Appropriate Strong, favorable and unique points of parity
and points of differences.
iii. Positive brand judgments and feelings.
iv. Intense (Quality feeling) brand attachment and loyalty
v. A high degree of brand activity
8.194
4. Marketplace conditions multiplier: – the extent to which
value created in the minds of customers affects market
performance depends on factors beyond the individual
customer.
Three such factors are as follows:
1.Competitive superiority – how effective are the quantity
and quality of the marketing investment of other competing
brands
2.Channel and other intermediary support – how much
brand reinforcement and selling efforts being put forth by
various marketing partners.
3.Customer size and profile – how many and what types of
customers (e.g. profitable or not) are attracted to the brand.

8.195
5. Market performance – the customer mind set affects how
customer react or respond in the marketplace in a variety of
ways.
-Six key outcomes of that response are as follows.
The first two dimensions relate to price premiums and price
elasticizes.
-How much extra are customer willing to pay for a comparable
product because of its brand?
-And how much does their demand increase or decrease when
the price rises or falls?
A third dimension is market share, which measures the
success of the marketing program to drive brand sales.
-The first three dimension determine the direct revenue stream
attributable to the brand over time.
-Brand value is created with higher market shares, greater
price premiums and more elastic response to price decrease
and inelastic response to price increases. 8.196
The fourth dimension is brand expansion,
*the success of the brand in supporting line and category and
*new product launches into related categories.
The fifth dimension is
*cost structure or
*saving in terms of the ability to reduce marketing program
expenditures because of the prevailing customer mindset.
6. Investor Sentiment multiplier: factors in arriving brand
valuation -
i. Market dynamics – what are the dynamic of the financial
markets as whole (e.g. interest rates, investor sentiment or
supply of capital)
ii. Growth potential – what are the growth potential or
prospect for the brand and the industry in which it
operates?
For example, how helpful of the facilitating factors and how
inhibiting are the hindering external factors that make up
the firms economic, social, physical and 8.197 legal
iii. Risk profile – what is the risk profile for the brand?
-How vulnerable is the brand likely to be to those facilitating
and inhabiting factors?
iv. Brand contribution – how important is the brand as part
of the firm’s brand portfolio and all the brand it has ?

8.198
 Brand Equity Measurement System
■ A set of research procedures that is designed
to provide timely, accurate, and actionable
information for marketers so that they can make
the best possible tactical decisions in the short
run and strategic decisions in the long run

8.199
 Brand Equity Measurement System
■ Conducting brand audits
■ Developing tracking procedures
■ Designing a brand equity management system

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 Designing Brand Tracking Studies
■ Tracking (a mark left) studies involve information collected
from consumers on a routine basis over time
■ Often done on a “continuous” basis
■ Provide descriptive and diagnostic information
-Such studies typically employ quantitative measures
*to provide marketers with current information as
*to how their brand and marketing program are
performing on a number of key dimensions identified by
the brand audit or other means.
-Tracking industries plays an important function for managers
by
*providing consistent baseline information to facilitate their
day to day decision making. 8.201
 What to Track
■ Customize (modify, tailor) tracking surveys to address the
specific issues faced by the brand.
■ Each brand faces a unique situation that the different types
of questions in its tracking survey should reflect.
1. Product-brand Tracking– Tracking an individual branded
product requires measuring brand awareness and image,
specially in terms of
*Specific perceptions ( i.e., what consumer think characterize
the brand)
*Evaluation (i.e., what the brand mean to consumer)
*Attributes and benefit such as convenience and case of use.

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2. Corporate or family brand tracking –Corporate branding
refers to a company applying its name to a product.
-The product and the company name become the brand name.
-The company can advertise several of its products under a
single brand name in a practice referred to as family branding
or umbrella branding.
-Other measures of the corporate brand associations including
the following(illustrate with the GE corporate brand).
✔How well managed is GE?
✔How easy is it to do business with GE?
✔How concerned is GE with its customers?
✔How approachable is GE?
✔How accessible is GE?
✔How much do you like doing business with GE?

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3. Global tracking – if the tracking involves diverse
geographic markets especially in both developing and
developed countries
–then you may need a broader set of background measures to
put the brand development in those markets in the right
perspective.

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 How to Conduct Tracking Studies
■ How to conduct tracking studies
- which elements of the brand should you use tracking studies?
-In general, marketers use brand name, logo or symbol in
probing brand structures, especially if theses elements can
play a visible and important role in the decision making
process.
o Whom to track - tracking often concentrate on current
customers,
-but it can also be rewarding to monitor nonusers of the brand
or
-even of the product category as a whole (e.g. to suggest
potential segmentation strategies).
o It often can be insightful to track those customer loyal to
the brand versus those who are loyal to other brand or
who switch among brands. 8.205
When and where to track (how frequently): one
useful approach for monitoring brand association is
continues tracking studies, which collect information
from consumers continually overtime.
-The frequency of such tracking studies, in general,
depends on the frequency of product purchase
(durable goods are typically tracked less frequently
because they are purchased less often).

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-For Example Millward Brown – Marketing research tracking
pioneer Millward Brown usually interviews 50 to 100 people
a week and looks at the data with moving averages trended
over time in their Advance Tracking program.

-These involves short interviews (10 to 20 minutes length , on

the phone or web) covering the client brand and competitive
set.

-Data are usually collected on brand preferences and

perceptions, ad awareness and recall and reaction as well as on
demographics and usage.

-Short (12 minute) interview for a typical consumer product

administered over the phone to 50 nationally representative
consumers weekly.
-Finally on a global basis it is important to recognize the stage of the
product or brand life cycle in deciding on the frequency of tracking.
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▪How to interpret tracking studies
– one problem with many traditional measures of marketing
phenomena is that they do not change much over time.
*The strength favorability and uniqueness of brand
associations;
▪*the valence (relations) of brand judgment and feelings and
*the intensity and activity of the brand loyalty do not change
much.

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-Another challenge in interpreting tracking studies is to
decide on appropriate cutoffs(finish).
-For example,
*what is the sufficiently high level of brand awareness?
*When are brand associate sufficiently strong favorable and
unique?
*How positive should brand judgments and feelings be?
*What are the reasonable expectation for the amount of
brand resonance?

▪One of the most important tasks in conducting brand tracking

studies is to identify the determinants of brand equity.
-Of the brand associations that potentially can serve as
sources of brand equity.
-Which brand associations actually influence consumer
attitude and behavior and create value for the brand? 8.209
 Brand Equity Management System
■ A brand equity management system is a set of
organizational processes designed to
-improve the understanding and
-use of the brand equity concept within a firm.
-Three major steps help to implement a brand
management system:
■ Brand equity charter(contract/deed)
■ Brand equity report
■ Brand equity responsibilities

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-The Brand Charter outlines the fundamental and long term
orientations of a brand.
-It usually follows a Brand Equity study, and takes the form of several
co-creative workshops involving all the marketing stakeholders.
-The purpose of the Brand Charter is to
*define long term strategies,
*transmit brand knowledge and
*enable dialogue with agencies involved.
For this, brand managers need access to a written document which
outlines the fundamental orientations of the brand.
-A Brand Charter includes:
*The strengths and weaknesses of the brand
*Threats and opportunities
*Core values and ingredients of the brand's "genetic make-up"
*The brand's mission
*Its expertise
*Communication style
*The guiding principles of diversification and innovation 8.211
 Brand Equity Charter
■ Provides general guidelines to
*marketing managers within the company as well as
*key marketing partners outside the company.
■ Brand Equity Charter Components
⮚ Define the firm’s view of the brand equity and explain
why it is important.
⮚ Describe the scope of key brands in terms of associated
products and the manner by which they have been branded
and marketed.
⮚ Specify actual and desired equity is for a brand at all
relevant levels of the brand hierarchy, for example, at both
the corporate and the individual product level.
⮚ Explain how brand equity is measured in terms of the
tracking study and the resulting brand equity report
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 Brand Equity Charter Components

⮚ how brand equity should be managed in terms of

stressing clarity, relevance, distinctiveness.
⮚ Outline the marketing program should be devised
⮚ Specify the proper treatment of the brand in terms of
trademark usage, packaging and communication.

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 The Knicks Brand Charter
The The Fans
Knicks
Emotional Bond •Sensory fulfillment
•Uniquely authentic
An intensely –Looks, feels, and sounds
•An incomparable event, passionate, •Visceral thrill
scene and energy professional, – Eager anticipation/excitement
•Relentless, resourceful, unparalleled New
– War: winning/losing
and tough York City experience
•Psychological benefits
•Championship caliber
– Personal identification (with
•A vital part of New York heroes)
City – Social currency/belonging
•Unlimited in its •Emotional awards
possibilities – Intense experience
– Childhood
– Sustaining
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 Brand Equity Report
■ Assembles the results of the tracking survey and other
relevant performance measures
■ To be developed monthly, quarterly, or annually
■ Provides descriptive information as to what is happening
with the brand as well as diagnostic information on why it is
happening
■ The Brand Equity Report should descriptive what is
happening with the brand as well as why it is happening.
■ It should include all relevant internal and external measures
of brand performance and sources and outcomes of brand
equity.
■ Consumer’s perceptions of key attributes revealed by
tracking study

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Another section of the report should include more descriptive
market level information such as :
⮚Product Shipment and Movement
⮚Retail category trends
⮚Relevant cost breakdown
⮚Price and Discount schedule
⮚Sales and Market Share information
⮚Profit assessment

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Overseeing Brand Equity:
Bedbury Advocates :
Periodic meeting and Review of Brand Sensitive material,
The Status of key brand initiative, Brand Sensitive Project,
New product and distribution strategies, Brand
Positioning Conflicts.
Organizational design and structure:
In considering future of brand management, Hulbert,
Burthon and Pitt make several observations and forecast:
⮚Whole organization to become committed to a focus on the
customer and brand will increasingly be seen as a means to
that end.
⮚Marketing must become far more active in the initiation
and driving of innovations
⮚Information technology large scale customer and
consumer interaction
⮚The onus for ownership and management of change in
brands and the brand management system will
increasingly shift to senior management.
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 Brand Equity Responsibilities
■ Organizational responsibilities and processes
that aim to maximize long-term brand equity
■ Establish position of VP or Director of Equity
Management to oversee implementation of Brand
Equity Charter and Reports
■ Ensure that, as much as possible, marketing of
the brand is done in a way that reflects the
spirit of the charter and the substance of the
report

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 CHAPTER 9:
MEASURING SOURCES OF BRAND EQUITY:
CAPURING CUSTOMER MINDSET

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 Qualitative Research Techniques
■ There are many different ways to uncover the types of
associations linked to the brand and their corresponding
strength, favorability, and uniqueness.
■ Qualitative research techniques often identify possible
brand associations and sources of brand equity.
■ Qualitative researchers aim to gather an in-depth
understanding of human behavior and the reasons that
govern such behavior.
■ These are relatively unstructured measurement approaches.

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A number of qualitative research techniques for identifying sources of
brand equity such as brand awareness, brand attitudes, and brand
attachment.
1. Free association, In which subjects are asked what comes
to mind when they think of the brand.(“What does the
Rolex name mean to you?” or “Tell me what comes to mind
when you think of Rolex watches.”) or
-What do you like best about the brand?
-What are its positive aspects?
-What do you dislike?
-What are its disadvantages?
-What do you find unique about the brand?
-How is it different from other brands?
- In what ways is it the same?

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 Free Associations
ATTRIBUTES
User Imagery Usage Imagery
Western, American, Appropriate for
Product-Related blue collar, hard- outdoor
Blue denim, shrink-to- working, work and casual
fit traditional, strong, social
cotton fabric, rugged, and masculine situations
and small red pocket Brand Personality
tag Honest, classic,
Contemporary,
LEVI’S approachable,
501 independent, and universal

High quality, long lasting, Feelings of self-

and durable confidence
Comfortable fitting and self-assurance
Functional
and relaxing to wear Symbolic
Experiential
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BENEFITS
 Qualitative Research Techniques
2.Projective techniques are diagnostic(analytic) tools to
uncover the true opinions and feelings of consumers when
they are unwilling or otherwise unable to express
themselves on these matters.
■ Consumers might feel that it would be socially unacceptable
to express their true feelings
■ Many kinds of projective techniques are possible. We’ll
highlight a few here.
i. Completion and Interpretation Tasks. Classic projective
techniques use incomplete or ambiguous stimuli to elicit
consumer thoughts and feelings.
-The subject is given an incomplete sentence, story, argument
or conversation, and asked to finish it
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For example: People who buy Coke are _______
I only buy Diet Coke when _______
They are then asked to explain why they have completed the questions in
the way that they have completed them.

ii. Comparison Tasks, in which we ask consumers to convey their

impressions by comparing brands to people, countries, animals,
activities, fabrics, occupations, cars, magazines, vegetables, nationalities,
or even other brands.
For example, consumers might be asked: "If Nike
were a car, which one would it be? If it were an animal, which one might
it be? Looking at the people depicted (portray) in these pictures, which
ones do you think would be most likely to wear Nike shoes?"
In each case, consumers could be asked a follow-up question as to why
they made the comparison they did.
The objects chosen to represent the brand and the reasons why they were
chosen can provide a glimpse(indication) into the psyche of the 9.224
 New approach: ZMET
3.Zaltman Metaphor Elicitation Technique
(ZMET) is “a technique for eliciting interconnected
constructs that influence thought and behavior.”
■ The word construct refers to “an abstraction
created by the researcher to capture common ideas,
concepts, or themes expressed by customers.”
■ For example, the construct “ease of use” might
capture the statements “simple to operate,” “works
without hassle.

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 Brand Personality and Values
■ Brand personality refers to the human
characteristics or traits that can be attributed to a
brand. Coca-Cola(Personality Trait):Gregarious/Sociable /
Extroverted / Outgoing
■ The Big Five factors of Brand Personality
■ Sincerity (down-to-earth/realistic/sensible,
wholesome/good health, and cheerful)
■ Excitement (daring, spirited, imaginative, and up-to-
date/latest)
■ Competence (reliable, intelligent, and successful)
■ Sophistication (upper class and charming)
■ Ruggedness (outdoorsy and tough) 9.226
 Identifying Key Brand Personality
Associations
BUSH KERRY
■ Coffee Dunkin’ Donuts Starbucks
■ Technology IBM Apple
■ Auto Ford BMW
■ Retail Kmart Target
■ Fast Food McDonald’s Subway

2004 U.S. presidential election, random sample of undecided

voters

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■ 4. Experiential Methods, By tapping more directly into
their actual home, work, or shopping behaviors, researchers
might be able to elicit more meaningful responses from
consumers.
■ Advocates of the experiential approach have
*sent researchers to consumers’ homes in the morning to see
how they approach their days,
*given business travelers Polaroid cameras and diaries to
capture their feelings when in hotel rooms.

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■ Quantitative research typically employs various
types of scale questions from which researchers can
draw numerical representations and summaries.
■ Quantitative measures of brand knowledge can help
to more definitively assess
1. the depth and breadth (width) of brand awareness;
2. the strength, favorability, and uniqueness of brand
associations;
3. the positivity of brand judgments and feelings;
and
4. the extent and nature of brand relationships.
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1. Brand Awareness is related to the strength of the
brand in memory, as reflected by consumers’ ability
to identify various brand elements like the brand
name, logo, symbol, character, packaging, and
slogan under different conditions.
■ Brand awareness describes the likelihood
(possibility) that a brand will come to mind in
different situations.
■ Marketers use several measures of awareness of
brand elements. Let’s look at some of these
awareness issues
i. Recognition. Brand recognition requires consumers to
identify the brand under a variety of circumstances.
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-Brand recognition is extent to which a consumer can
correctly identify a particular product or service just by
viewing the product or service's logo, tagline, packaging or
advertising campaign.
-The most basic recognition test gives consumers a set of
individual items visually or orally and asks them whether they
think they’ve previously seen or heard of these items.
ii. Recall. To demonstrate brand recall, consumers must
retrieve(regain) the actual brand element from memory when
given some related probe or cue.
-Different measures of brand recall are possible depending on
the type of cues provided to consumers.
a.Unaided recall on the basis of “all brands” provided as a cue
is likely to identify only the very strongest brands.
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-Unaided Recall Test is a means of evaluating the
effectiveness of a company's recent advertising; without
help from the researcher, selected respondents from the
target market are asked to bring to mind advertisements
they have seen or heard recently.
a. Aided recall uses various types of cues to help consumer
recall. such as product class, product category, and product
type labels etc.

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2. Brand Image, as reflected by the associations that
consumers hold for it.
-It is the current view of the customers about a brand.
-It can be defined as a unique bundle of associations
within the minds of target customers.
-It signifies what the brand presently stands for.
-It is a set of beliefs held about a specific brand.
-In short, it is nothing but the consumers’ perception
about the product.

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-we can use open-ended measures that tap into the strength,
favorability, and uniqueness of brand associations, as follows:
i. What are the strongest associations you have to the brand?
What comes to mind when you think of the brand? (Strength)

ii. What is good about the brand? What do you like about the
brand? What is bad about the brand? What do you dislike
about the brand? (Favorability)

iii. What is unique about the brand? What characteristics or

features does the brand share with other brands? (Uniqueness)

These associations should be rated on scales for quantitative

analysis.
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Step 3: Brand Response – Customers' responses to the brand
fall into two categories: "judgments" and "feelings." These are
the two building blocks in this step.
-Customers constantly make judgments about the brand and
these fall into four key categories:
i. Quality: Customers judge a product or brand based on its
actual and perceived quality.
ii. Credibility: Customers judge credibility using three
dimensions – expertise (which includes innovation),
trustworthiness, and likability.
iii. Consideration: Customers judge how relevant your product
is to their unique needs.
iv. Superiority: Customers assess how superior your brand is,
compared with your competitors' brands.
9.235
-Customers also respond to the brand according to how it
makes them feel.
-Your brand can evoke(remind) feelings directly.
-According to the model, there are six positive brand feelings: warmth,
fun, excitement, security, social approval, and self-respect.
Application
First, examine the four categories of judgments listed above.
Consider the following questions carefully in relation to these:
i. What can you do to improve the actual and perceived quality
of your product or brand?
ii. How can you enhance your brand's credibility?
iii. How well does your marketing strategy communicate your
brand's relevancy to people's needs?
iv. How does your product or brand compare with those of
your competitors? 9.236
Next, think carefully about the six brand feelings listed above.
i.Which, if any, of these feelings does your current marketing
strategy focus on?
ii.What can you do to enhance these feelings for your
customers?
-Identify actions that you need to take as a result of asking
these questions.

9.237
4. Brand Resonance/ relationship :It describes the nature of
this relationship and the extent to which customers feel that
they are “in sync” (harmonize relationship) with the brand.
example of high resonance brands are apple.

Four categories of brand resonance are:

i. Behavioral loyalty
Frequency and amount of repeat purchases
-To capture behavioral loyalty, we could ask consumers
several questions directly. Or
-we could ask them what percentage of their last purchases
in the category went to the brand (past purchase history) and
what percentage of their planned next purchases will go to the
brand (intended future purchases).
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-For example, the marketers or brand managers of Duracell
batteries might ask the following questions:
• Which brand of batteries do you usually buy?
• Which brand of batteries did you buy last time?
• Do you have any batteries on hand? Which brand?
• Which brands of batteries did you consider buying?
• Which brand of batteries will you buy next time?
These types of questions can provide information about brand
attitudes and usage for Duracell, including potential gaps with
competitors and the names of other brands that might be in the
consideration set at the time of purchase.
ii. Attitudinal attachment
Love brand (favorite possessions; “a little pleasure”)
Proud of brand
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-Several different approaches have been suggested to measure
the second component of brand resonance—brand attachment.
-One study proposed a brand love scale that consists of 10
items:
(1)This is a wonderful brand;
(2) This brand makes me feel good;
(3) This brand is totally awesome(remarkable);
(4) I have neutral feelings about this brand (reverse-coded item);
(5) This brand makes me very happy;
(6) I love this brand;
(7) I have no particular feelings about this brand (reverse-coded item);
(8) This brand is a pure delight;
(9) I am passionate about this brand; and
(10) I am very attached to this brand.
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iii. Sense of community: customers feel a sense of community with people
associated with the brand,
Kinship (relationship)
Affiliation
Figure 9-10 displays the different dimensions that make up
the social currency concept according to Vivaldi Partners.
Dimension Key Question Value of Dimension
Conversatio What share of your brand users Customers proactively talk about a
n recognizes and stirs buzz? brand.
Advocacy How many act as disciples and Customers are willing to tell others
stand up for your brand? about a brand or recommend it further.
Information How many feel they exchange The more information customers have
fruitful information with about a brand the more likely they are
others? to develop preferences for the brand.
Affiliation What share of users has a sense Value of brand is closely related to
of community? sense of community it creates among
other like-minded people.
Utility How much value do consumers Social exchange with others involving
9.241
derive from interacting with a brand is an integral part of people’s
iv. Active engagement for a brand is defined as the extent to
which consumers are willing to invest their own personal
resources—time, energy, money, and so on—on the brand
beyond those resources expended during purchase or
consumption of the brand.
-Seek information, Join club, Visit website, chat rooms etc.
-In terms of engagement, measures could explore
*word-of-mouth behavior,
*online behavior, and so forth in depth
-Micro sets of measures focus on specific categories of brand-
related activities. These activities fall into three categories
depending on whether they relate to:
a. collecting brand information,
b. participating in brand marketing activities, or
c. interacting with other people and having a sense of community.
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-Here are some possible questions.
a. Collecting Brand Information
I like learning about this brand.
If this brand has any new products or services, I tend to
notice it.
If I see a newspaper or magazine article about this brand, I
tend to read it.
If I hear a TV or radio story about this brand, I tend to listen to
it.
If I see a news story online about this brand, I tend to open and
read it.
I like to visit this brand’s Web site.
I like to read online blogs about this brand.
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b. Participating in Brand Marketing Activities
If I notice an ad for this brand, I tend to pay attention to it.
If I notice a sales promotion from this brand, I tend to pay
attention to it.
If I get something in the mail from this brand, I tend to open it.
If this brand sponsors a sports, entertainment or arts event,
I tend to notice it.
If I see a billboard or any outdoor type ad for this brand, I tend
to notice it.
If this brand has a display or demonstration in the store, I tend
to notice it.
If this brand shows up in a movie or television show, I tend to
notice it.
If I get a chance to sample one of this brand’s new products, I
tend to try it.
I like to buy licensed products from this brand. 9.244
c. Interacting with Other People
I like to talk to others about this brand.
I like to talk to people at work about this brand.
I like to talk to my friends and family about this brand.
I like to seek out others who use this brand.
I have joined or would like to join an online community with
other users of this brand.
I have joined or would like to join an online community with
others who like this brand.
I have joined or would like to join an online community with
people from the company who makes this brand.
I am active in a loyalty program for this brand.
I tend to notice when other people are using this brand.
These are only some representative examples of the types of
survey measures that could be employed to assess brand engagement.
-Depending on the category and circumstances, a variety of other
questions could be devised and fruitfully applied. 9.245
The six main facets of brand relationship quality are as
follows:
• Interdependence: The degree to which the brand is
ingrained in the consumer’s daily course of living, both
behaviorally (in terms of frequency, scope, and strength of
interactions) and cognitively (in terms of longing for and
preoccupation with anticipated brand interactions).
• Self-concept connection: The degree to which the brand
delivers on important identity concerns, tasks, or themes,
thereby expressing a significant part of the self-concept,
Grounding of the self provides feelings of comfort,
connectedness, control, and security.
• Commitment: Dedication to continued brand association
and betterment of the relationship. Commitment includes
professed faithfulness and loyalty to the other. 9.246
• Love/passion: Affinity/empathy toward and adoration/love of
the brand, particularly with respect to other available
alternatives. Love includes the belief that the brand is
irreplaceable and uniquely qualified as a relationship partner.
• Intimacy: A sense of deep familiarity with and
understanding of both the essence of the brand as a partner in
the relationship and the nature of the consumer-brand
relationship itself. • Partner quality involves a summary
judgment of the caliber of the role enactments performed by
the brand in its partnership role. Partner quality includes three
central components:
(1)an empathic orientation toward the other (ability of the partner to
make the other feel wanted, cared for, respected, noticed, and important;
responsiveness to needs);
(2) a character of reliability, dependability, and predictability in the
brand; and
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(3) trust or faith in the belief that the brand will adhere to established
 Comprehensive Models of
Customer-Based Brand Equity
■ Brand dynamics
■ Equity engines
■ Young & Rubicam’s Brand Asset Valuator
(BAV)

9.248
 Brand Dynamics
■ The Brand Dynamics model offers a graphical
model to represent the emotional and functional
strength of relationship consumers have with a
brand. FIGURE 9-12 Brand Dynamics from
Bonding
Millward Brown.
Advantage
Performance
Relevance
Presence

■ As Figure 9-12 shows, the Brand Dynamics model

adopts a hierarchical approach to determine the
strength of relationship a consumer has with a
brand. 9.249
-The five levels of the model, in ascending(rising) order of an
increasingly intense relationship, are presence, relevance,
performance, advantage, and bonding.
-Consumers are placed into one of the five levels depending
on their brand responses.
-By comparing the pattern across brands, we can uncover
relative strengths and weaknesses and see where brands can
focus their efforts to improve their loyalty relationships.

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 Equity Engines
■ This model delineates three key dimensions of
brand affinity —the emotional and intangible
benefits of a brand—as follows:
■ Authority: The reputation of a brand, whether as
a long-standing leader or as a pioneer in
innovation
■ Identification: The closeness customers feel for a
brand and how well they feel the brand matches
their personal needs
■ Approval: The way a brand fits into the wider
social matrix and the intangible status it holds for
experts and friends 9.251
 Young & Rubicam’s Brand Asset Valuator (BAV)
■ There are five key components of brand health in BAV—the
five pillars.
■ Each pillar is derived from various measures that relate to
different aspects of consumers’ brand perceptions and that
together trace the progression of a brand’s development.
1. Differentiation –measures the degree to which a brand is
seen as different from others; necessary condition for
profitable brand building.
2. Energy–measures the brand’s ability to meet future
consumer needs and attract new consumers; it reveals the
strength of momentum that a brand has and accounts for
changes in financial performance.
3. Relevance–measures the appropriateness of the brand to consumers
and the overall size of a brand’s potential franchise or penetration.
9.252
4. Esteem –measures how well the brand is regarded and
respected –how well its liked. Esteem is related to loyalty.
5. Knowledge–measures how familiar and intimate consumers
are with the brand; high brand knowledge is inversely related
to a brand’s potential.

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The human brand is much like a living,
breathing organism.
-It’s true definition is determined by those that
love, like or even dislike you. 
-A brand is made up of humans within your
organization and finally defined by those
outside your organization.

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13 Characteristics of the Human Brand

1.255
 Brands vs. Products

■ A product is anything we can offer to a market for

attention, acquisition, use, or consumption that might
satisfy a need or want.
■ A product may be a physical good, a service, a retail
outlet, a person, an organization, a place, or even an
idea.

1.256
 Five Levels of Meaning for a Product
1. The core benefit level

2. The generic product level

3. The expected product level

4. The augmented product level

5. The potential product level 1.257

■ A brand is therefore more than a product, as it can
have dimensions that differentiate it in some way
from other products designed to satisfy the same
need.
■ Some brands create competitive advantages with
product performance; other brands create
competitive advantages through non-product-
related means.

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 Why do brands matter?
■ What functions do brands perform that make
them so valuable to marketers?
■ We discuss it in two view points:
1.Importance of Brands to Consumers
2.Importance of Brands to Firms

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 1. Importance/role of Brands to
Consumers
■ Identification of the source of the product
■ Assignment of responsibility to product maker
■ Risk reducer
■ Search cost reducer
■ Promise, bond, or pact with product maker
■ Symbolic device
■ Signal of quality

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 Reducing the Risks in Product Decisions
Different types of risks in buying and
consuming a product:
⮞Functional risk
⮞Physical risk
⮞Financial risk
⮞Social risk
⮞Psychological risk
⮞Time risk
1.261
 2. Importance of Brands to Firms
■ To firms,
-brands represent enormously/ extremely valuable
pieces of legal property,
-capable of influencing consumer behavior,
-being bought and sold, and
-providing the security of sustained future revenues.

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 Importance of Brands to Firms
■ Brands serve an identification purpose, to simplify
product handling or tracing.
■ It helps to organize inventory and accounting
records.
■ It offers the firm legally protection for unique
features
■ It can retain intellectual property rights, giving legal
title to the brand owner.
■ It helps to give signal of quality level
■ Endowing/providing products with unique
associations
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 Can everything be branded?
■ Ultimately a brand is something that resides in the
minds of consumers.
■ The key to branding is that consumers perceive
differences among brands in a product category.
■ A commodity is a product so basic that it cannot be
physically differentiated in the minds of consumers.
Even commodities can be branded:
■ Coffee (Maxwell House), bath soap (Ivory), flour (Gold
Medal), beer (Budweiser), salt (Morton), oatmeal
(Quaker), pickles (Vlasic), bananas (Chiquita), chickens
(Perdue), pineapples (Dole), and even water (Perrier)
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 What is branded?
we can recognize the universality of branding by looking at some different
product applications in the categories.
■ Physical goods- Mercedes Benz, Sony .
■ Services- British airways.
■ Professional Services: Mayflower-ship.
■ Retailers and distributors- Marks and Spencer-cloth store.
■ Online products and services-Google’s
■ People and organizations-Famous actor Paul Newman, The American Red Cross
■ Sports, arts, and entertainment-Manchester United, the oldest Soccer club; Harry
potter movie title.
■ Geographic locations-City of Las Vegas an adult play ground
■ Ideas and causes-AIDS Ribbons, The red ribbon, as an awareness ribbon, is used
as the symbol for the solidarity of people living with HIV/AIDS, and for the
awareness and prevention of drug abuse and drunk driving.

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 Top Ten Global Brands
Brand 2006 ($Billion) 2005 ($ Billion)
1. Coca-Cola 67.00 67.53
2. Microsoft 56.93 59.94
3. IBM 56.20 53.38
4. GE 48.91 47.00
5. Intel 32.32 35.59
6. Nokia 30.13 26.45
7. Toyota 27.94 24.84
8. Disney 27.85 26.44
9. McDonald’s 27.50 26.01
10. Mercedes-Benz 21.80 20.00

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 Branding Challenges and Opportunities

1.Savvy/ knowledgeable
2.Economic Downturns
3.Brand proliferation/to reproduce
4.Media Transformation
5.Increased competition
6.Increased costs
7.Greater accountability

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 The Brand Equity Concept
■ Brand equity is the added value endowed/
gifted 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 prices, market share, and
profitability the brand commands.
-Customer-based brand equity is thus the
differential effect brand knowledge has on
consumer response to the marketing of that
brand. 1.268
-A brand has positive customer-based brand equity
-A brand has negative customer-based brand equity
-There are three key ingredients of customer-based
brand equity.
1.differences in consumer response.
2. Differences in response
3. Brand equity is reflected in perceptions,
preferences, and behavior related to all aspects of the
marketing of a brand.
Table 9.1 summarizes some key benefits of brand
equity.
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TABLE 9.1 Marketing Advantages of Strong Brands
i. Improved perceptions of product performance
ii. Greater trade cooperation and support
iii. Greater loyalty
iv. Increased marketing communications effectiveness
v. Less vulnerability (liability) to competitive
marketing actions
vi. Possible licensing opportunities
vii. Less vulnerability to marketing crises
viii. Additional brand extension opportunities
ix. Larger margins
x. Improved employee recruiting and retention
xi. More inelastic consumer response to price
increases xii. Greater financial market returns1.270
 Strategic Brand Management
■ It involves the design and implementation of marketing
programs and activities to build, measure, and manage
brand equity.
■ The Strategic Brand Management Process is defined as
involving four main steps:
1. Identifying and establishing brand positioning and
values
2. Planning and implementing brand marketing programs
3. Measuring and interpreting brand performance
4. Growing and sustaining brand equity

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Strategic Brand Management Process

Step Key
s Concepts
Mental maps
Identify and establish Competitive frame of reference
brand positioning and Points-of-parity and points-of-
difference
values Core brand values
Brand mantra
Plan and implement Mixing and matching of brand
elements
brand marketing
Integrating brand marketing activities
programs Leveraging of secondary associations

Brand value chain

Measure and Brand audits
interpret 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 1.272
revitalization