1. Chapter 9
Creating Brand Equity
Philip Kotler
Kevin Lane Keller
Donna Sia, Shelle Caiga, Rhea Jardin
May 4, 2012
www.hypermarketing2.co
m

2. Outline:
What do we have to know?
1. What is brand and how does branding
work?
2. What is brand equity?
3. How is brand equity built, measured
and managed?
4. What are the important decisions in
developing a branding strategy?
hypermarketing2.co
www.
m

3. What is brand?
Brand is a “name, term, sign, symbol,
or design or combination of then,
intended to identify the goods or
services of one seller or group of
sellers and to differentiate them
from those of competitors.”
hypermarketing2.co
www.
m

4. How does branding work?
Branding is endowing products and
services with the power of a brand.
It creates mental structures that help
consumers organize their knowledge
about products and services in a
way that clarifies their decision
making and, in the process, provides
value to the chain.
hypermarketing2.co
www.
m

5. What is Brand Equity?
Brand equity is the added value endowed
on products and services.
It may be reflected in the way consumers
think, feel and act with respect to the
brand, as well as in the prices, market
share and profitability the brand
commands for the firm.
hypermarketing2.co
www.
m

6. Outline:
Like playing basketball, managing
a brand involves strategies…
Step 1. Identify and establish Step 3. Measure and interpret
Brand Positioning Brand Performance
Step 2. Plan and implement Step 4. Grow and sustain
Brand Marketing Brand Value
www.hypermarketing2.co
m

7. What can branding do to your
business?
Identifies the
maker &
signifies
quality
Creates barriers to entry
Serves as competitive Offers legal protection
advantage
www.hypermarketing2.co
m

8. What can branding do to your
business?
Loyola Schools
AGSB
School of Law
Secures price premium School of Medicine
Organizes accounting
and simplifies
product handling
hypermarketing2.co
www.
m

9. Provide customers the right type of
experience to create desired brand
knowledge.
Hi, I’m Jersey 17, I am
passionate and I try to
be the best at what I do
especially basketball.
Jersey 17’s Brand Print
hypermarketing2.co
www.
m

10. Provide customers the right type of
experience to create desired brand
knowledge.
What is important to
me is to give my fans a
good game and give
my best for the team.
Jersey 17’s Brand Print
hypermarketing2.co
www.
m

11. Provide customers the right type of
experience to create desired brand
knowledge.
Even though I am busy with
my career, I was still able to
finish my education & start
my own business
Jersey 17’s Brand Print
hypermarketing2.co
www.
m

12. Provide customers the right type of
experience to create desired brand
knowledge.
I hope I inspire young
athletes to pursue their
dreams, whatever
sport they are into.
Jersey 17’s Brand Print
hypermarketing2.co
www.
m

13. Provide customers the right type of
experience to create desired brand
knowledge.
Thoughts
& Beliefs
Images
Feelings
Jersey 17’s Brand Print
hypermarketing2.co
www.
m

14. What STRONG brands do…
Improved perceptions of product performance
Greater Loyalty
hypermarketing2.co
www.
m

15. What STRONG brands do…
Large Margins
hypermarketing2.co
www.
m

16. What STRONG brands do…
Less vulnerability to competitive marketing actions
More inelastic consumer response
Increased marketing communications effectiveness
hypermarketing2.co
www.
m

17. One comparative measure of
brand equity is the BAV
Brand Asset Evaluator (BAV) compares brand equity
of thousands of brands across hundreds of
categories and these are its four pillars (Derek)
Brand Equity
Differentiation
Knowledge
Relevance
Esteem
Energy
www. hypermarketing2.co
m

18. Develop your brand’s identity.
Brand
Essence
Extended
Identity
Core
Identity
Aaker Model
hypermarketing2.co
www.
m

19. Develop your brand’s identity
by:
Brand
Essence:
Movement for
self-esteem
Campaign for
real beauty
Empowering
Women
Aaker Model
hypermarketing2.co
www.
m

20. Develop your brand’s identity
by:
Brand Essence:
Movement for self-
Extended
esteem
Identity:
Dove Men +
Campaign for real
Care
beauty
Aaker Model
www.hypermarketing2.co
m

21. Develop your brand’s identity
by:
Brand Essence:
Movement for self-
Extended
esteem
Identity:
Dove Men +
Core
Campaign for real
Care
Identity:
beauty
Beautiful
Skin
Aaker Model
www.hypermarketing2.co
m

22. Brand building follows a
sequential series of steps:
Strong relationship
High share of category
expenditure
Bonding
Advantage
Performance
Relevance
Weak relationship/
Low share of category
Presence
expenditure
Brand Dynamics Pyramid
www.hypermarketing2.co
m

23. Building relationship with a
brand…
Do I know about it?
Presence
Presence
Brand Dynamics Pyramid
www.hypermarketing2.co
m

24. Building relationship with a
brand…
Does it offer me something?
Relevance
Presence
Brand Dynamics Pyramid
www.hypermarketing2.co
m

25. Building relationship with a
brand…
Can it deliver?
Bonding
Advantage
Performance
Relevance
Presence
Brand Dynamics Pyramid
www.hypermarketing2.co
m

26. Building relationship with a
brand…
Does it offer
something
Bonding better than
others?
Advantage
Performance
Relevance
Presence
Brand Dynamics Pyramid
www.hypermarketing2.co
m

27. Building relationship with a
brand…
Bonding
Advantage
Nothing else
I Performance
Relevance
beats it!
Presence
Brand Dynamics Pyramid
www.hypermarketing2.co
m

28. Building relationship with a
brand…
Resonance
Judgment & Feelings
Performance & Imagery
Presence
Brand
Salience
Brand Resonance Pyramid
hypermarketing2.co
www.
m

29. What drives brand equity?
Brand Elements
Men and Women for others…
The Ateneo Way…
hypermarketing2.co
www.
m

30. Like the person of your dreams,
brand elements should be…
Likeable Protectible
Memorable Adaptable
Meaningful Transferable?
hypermarketing2.co
www.
m

31. What drives brand equity?
Marketing Activities
hypermarketing2.co
www.
m

32. What drives brand equity?
Meaning Transference
Mirrors your brand
www.hypermarketing2.co
m

33. Brands are not built by
advertising alone.
Designing Holistic Marketing Activities
Personalize Integrate Internalize
hypermarketing2.co
www.
m

34. Measuring Brand Equity
Brand Audits Health of brand
Source of brand equity
Ways to improve equity
Where, how much &
Brand-Tracking what ways brand
value is being
created?
Brand Valuation Financial Value of the
brand
hypermarketing2.co
www.
m

35. In summary:
Brand Elements Brand Valuation
The company Thoughts
& Beliefs
Images
Bonding
Brand Advantage
Feelings
Performance
Relevance
Presence
Presence
Marketing Activities and Meaning Transference
Brand Relationship Consumer
www.hypermarketing2.co
m

36. Chapter 9
Creating Brand Equity
Philip Kotler
Kevin Lane Keller
Donna Sia, Shelle Caiga, Rhea Jardin
May 4, 2012
www.hypermarketing2.co
m

37. CREATING
BRAND
EQUITY
MARKMA
Rhea G. Jardin
May 4, 2012
hypermarketing2.co
www.
m

38. What is a Brand?
A product or service whose
dimensions differentiate it in
some way from other products or
services designed to satisfy the
same need
hypermarketing2.co
www.
m

39. hypermarketing2.co
www.
m

40. Role of Brands
1. Identify the source or maker of the product
that satisfies the consumers’ needs
2. Simplifies product handling or tracing
3. Offers firm legal protection with intellectual
property rights
4. Signals level of quality so that buyers can
easily choose the product again
hypermarketing2.co
www.
m

41. What is Branding?
- Endowing products and services with the
power of the brand by creating differences
between products
- “who” the product is, what the product does
and why consumers should care
hypermarketing2.co
www.
m

42. Brand Equity
- the added value on products and services
- reflected on how consumers think,
feel and act on the brand
- reflected in the prices, market share
and profitability for the firm
hypermarketing2.co
www.
m

43. Customer-based brand equity
A. Positive – customers react more favorably to
a product and the way it is marketed
B. Negative – customers react less favorably to
marketing activity for the brand
Three (3) key ingredients:
1. Consumer response
2. Consumer’s knowledge about the brand
3. Consumer’s perceptions, preferences and
behavior
hypermarketing2.co
www.
m

44. Brand Knowledge
1. Quality is the critical factor not the quantity
2. Dictates future directions for the brand based
on how consumers think and feel about the brand
Brand promise - the marketer’s vision of what the
brand must be and do for consumers
hypermarketing2.co
www.
m

45. Five pillars of brand equity
1. Differentiation – measures the degree to which
a brand is seen as different from others
2. Energy – measures the brand’s sense of
momentum
3. Relevance – measures the breadth of a brand’s
appeal
4. Esteem – measures how well the brand is
regarded and respected
5. Knowledge – measures how familiar and
intimate consumers are with the brand
hypermarketing2.co
www.
m

46. Five pillars of brand equity
+ + = energized brand strength
- point to the brand’s future value
+ = brand stature
- “report card” of past performance
“Pillar’s pattern” reveal a brand’s current and
future status
www.hypermarketing2.co
m

47. BrandDynamics Pyramid
-Developed by Millward Brown of BRANDZ
Marketing as a model of brand strength
Nothing else beats it Bonding
Does it offer something
Advantage
better than the others?
Can it deliver?
Performance
Does it offer me Relevance
something?
Do I know Presence
about it?
www. hypermarketing2.co
m

48. BrandDynamics Pyramid
-Developed by Millward Brown of BRANDZ
Marketing as a model of brand strength
Nothing else beats it Bonding Strong relationship / High
Does it offer something share of category expenditure
Advantage
better than the others?
Can it deliver?
Performance
Does it offer me Relevance
something?
Do I know Presence Weak relationship /
about it? Low share of category
expenditure
www. hypermarketing2.co
m

49. Brand Resonance Model
Stages of Brand Brand Brand building Branding objective at
Development blocks each stage
4. Relationships Resonance
= what about Intense, active
you and me? loyalty
3. Response =
Judgments Feelings Positive,
what about
accessible
you?
reactions
2. Meaning = Performance Imagery Points-of-
what are you? parity &
difference
Salience
1. Identity = Deep, broad
who are you? brand
awareness
hypermarketing2.co
www.
m

50. Brand Resonance Model
Brand salience – how often and how easily customers think of the brand
under various purchase or consumption situations
Brand performance – how well the product or service meets customers’
functional needs
Brand imagery – the ways in which brand attempts to meet customers’
psychological or social needs
Brand judgments – focus on customers’ own personal opinions and
evaluations
Brand feelings – customers’ emotional responses and reactions with respect
to the brand
Brand resonance – nature of the relationship customers have with the brand
(“in sync” with it)
www.hypermarketing2.co
m

51. Brand equity drivers
1. Initial choices for the brand elements or identities making
up the brand
2. The way the brand is integrated into the supporting
marketing program
3. The associations indirectly transferred to the brand by
linking the brand to some other entity
www.hypermarketing2.co
m

52. Brand element choice criteria
1. Memorable – how easily the brand element is recalled and
recognized (i.e. short names)
2. Meaningful – credibility of the brand, product ingredient or
type of person who might use the brand
3. Likeable – how visually and verbally appealing is the brand
element
4. Transferable – can the brand element be used to introduce
new products in the same or different categories?
www.hypermarketing2.co
m

53. Brand element choice criteria
5. Adaptable – how adaptable and updatable is the brand
element
Betty Crocker in 1936 Betty Crocker in 1986
6. Protectible – brand names that become synonymous with
product categories
www. hypermarketing2.co
m

54. Measuring brand equity
1. Brand audit - measures “where the brand has been”
2. Brand-tracking studies – measure “where the brand is now” and
whether marketing programs are having the intended effects
www.hypermarketing2.co
m

55. Measuring brand equity
Brand valuation – estimating the total financial value of the brand
Rank Brand 2006 Brand Value
(Billions)
1 Coca-cola $67.00
2 Microsoft $56.93
3 IBM $56.20
4 GE $48.91
5 Intel $38.32
6 Nokia $30.13
7 Toyota $27.94
8 Disney $27.85
9 McDonald’s $27.50
10 Mercedes-Benz $22.13
hypermarketing2.co
www.
m

56. Managing brand equity
1. Brand reinforcement
- requires innovation and relevance throughout the marketing
program
- brand must be moving forward in the right direction with new
offerings and ways to market them
2. Brand revitalization
- reinvention strategy
- renewal of commitment to quality
www.hypermarketing2.co
m

57. Brand Equity
reflected on where
customers price market share profitability quality is a factor over quantity
Pillars of brand equity:
differentiation energy relevance esteem knowledge
energized brand strength brand stature
criteria for brand element:
memorable/short meaningful likeable transferrable
adaptable protectible
www. hypermarketing2.co
m

58. CREATING
BRAND
EQUITY
MARKMA
Rhea G. Jardin
May 4, 2012
hypermarketing2.co
www.
m

59. Chapter 9
Creating Brand Equity
Philip Kotler
Kevin Lane Keller
Donna Sia
May 4, 2012
hypermarketing2.co
www.
m

60. Outline:
What do we have to know?
1. What is brand and how does branding
work?
2. What is brand equity?
3. How is brand equity built, measured
and managed?
4. What are the important decisions in
developing a branding strategy?
hypermarketing2.co
www.
m

61. What is brand?
Brand is a “name, term, sign, symbol,
or design or combination of then,
intended to identify the goods or
services of one seller or group of
sellers and to differentiate them
from those of competitors.”
hypermarketing2.co
www.
m

62. How does branding work?
Branding is endowing products and
services with the power of a brand.
It creates mental structures that help
consumers organize their knowledge
about products and services in a
way that clarifies their decision
making and, in the process, provides
value to the chain.
hypermarketing2.co
www.
m

63. What is Brand Equity?
Brand equity is the added value endowed
on products and services.
It may be reflected in the way consumers
think, feel and act with respect to the
brand, as well as in the prices, market
share and profitability the brand
commands for the firm.
hypermarketing2.co
www.
m

64. Outline:
Like playing basketball, managing
a brand involves strategies…
Step 1. Identify and establish Step 3. Measure and interpret
Brand Positioning Brand Performance
Step 2. Plan and implement Step 4. Grow and sustain
Brand Marketing Brand Value
www.hypermarketing2.co
m

65. What can branding do to your
business?
Identifies the
maker &
signifies
quality
Creates barriers to entry
Serves as competitive Offers legal protection
advantage
www.hypermarketing2.co
m

66. What can branding do to your
business?
Loyola Schools
AGSB
School of Law
Secures price premium School of Medicine
Organizes accounting
and simplifies
product handling
hypermarketing2.co
www.
m

67. Provide customers the right type of
experience to create desired brand
knowledge.
Hi, I’m Jersey 17, I am
passionate and I try to
be the best at what I do
especially basketball.
Jersey 17’s Brand Print
hypermarketing2.co
www.
m

68. Provide customers the right type of
experience to create desired brand
knowledge.
What is important to
me is to give my fans a
good game and give
my best for the team.
Jersey 17’s Brand Print
hypermarketing2.co
www.
m

69. Provide customers the right type of
experience to create desired brand
knowledge.
Even though I am busy with
my career, I was still able to
finish my education & start
my own business
Jersey 17’s Brand Print
hypermarketing2.co
www.
m

70. Provide customers the right type of
experience to create desired brand
knowledge.
I hope I inspire young
athletes to pursue their
dreams, whatever
sport they are into.
Jersey 17’s Brand Print
hypermarketing2.co
www.
m

71. Provide customers the right type of
experience to create desired brand
knowledge.
Thoughts
& Beliefs
Images
Feelings
Jersey 17’s Brand Print
hypermarketing2.co
www.
m

72. What STRONG brands do…
Improved perceptions of product performance
Greater Loyalty
hypermarketing2.co
www.
m

73. What STRONG brands do…
Large Margins
hypermarketing2.co
www.
m

74. What STRONG brands do…
Less vulnerability to competitive marketing actions
More inelastic consumer response
Increased marketing communications effectiveness
hypermarketing2.co
www.
m

75. One comparative measure of
brand equity is the BAV
Brand Asset Evaluator (BAV) compares brand equity
of thousands of brands across hundreds of
categories and these are its four pillars (Derek)
Brand Equity
Differentiation
Knowledge
Relevance
Esteem
Energy
www. hypermarketing2.co
m

76. Develop your brand’s identity.
Brand
Essence
Extended
Identity
Core
Identity
Aaker Model
hypermarketing2.co
www.
m

77. Develop your brand’s identity
by:
Brand
Essence:
Movement for
self-esteem
Campaign for
real beauty
Empowering
Women
Aaker Model
hypermarketing2.co
www.
m

78. Develop your brand’s identity
by:
Brand Essence:
Movement for self-
Extended
esteem
Identity:
Dove Men +
Campaign for real
Care
beauty
Aaker Model
www.hypermarketing2.co
m

79. Develop your brand’s identity
by:
Brand Essence:
Movement for self-
Extended
esteem
Identity:
Dove Men +
Core
Campaign for real
Care
Identity:
beauty
Beautiful
Skin
Aaker Model
www.hypermarketing2.co
m

80. Brand building follows a
sequential series of steps:
Strong relationship
High share of category
expenditure
Bonding
Advantage
Performance
Relevance
Weak relationship/
Low share of category
Presence
expenditure
Brand Dynamics Pyramid
www.hypermarketing2.co
m

81. Building relationship with a
brand…
Do I know about it?
Presence
Presence
Brand Dynamics Pyramid
www.hypermarketing2.co
m

82. Building relationship with a
brand…
Does it offer me something?
Relevance
Presence
Brand Dynamics Pyramid
www.hypermarketing2.co
m

83. Building relationship with a
brand…
Can it deliver?
Bonding
Advantage
Performance
Relevance
Presence
Brand Dynamics Pyramid
www.hypermarketing2.co
m

84. Building relationship with a
brand…
Does it offer
something
Bonding better than
others?
Advantage
Performance
Relevance
Presence
Brand Dynamics Pyramid
www.hypermarketing2.co
m

85. Building relationship with a
brand…
Bonding
Advantage
Nothing else
I Performance
Relevance
beats it!
Presence
Brand Dynamics Pyramid
www.hypermarketing2.co
m

86. Building relationship with a
brand…
Resonance
Judgment & Feelings
Performance & Imagery
Presence
Brand
Salience
Brand Resonance Pyramid
hypermarketing2.co
www.
m

87. What drives brand equity?
Brand Elements
Men and Women for others…
The Ateneo Way…
hypermarketing2.co
www.
m

88. Like the person of your dreams,
brand elements should be…
Likeable Protectible
Memorable Adaptable
Meaningful Transferable?
hypermarketing2.co
www.
m

89. What drives brand equity?
Marketing Activities
hypermarketing2.co
www.
m

90. What drives brand equity?
Meaning Transference
Mirrors your brand
www.hypermarketing2.co
m

91. Brands are not built by
advertising alone.
Designing Holistic Marketing Activities
Personalize Integrate Internalize
hypermarketing2.co
www.
m

92. Measuring Brand Equity
Brand Audits Health of brand
Source of brand equity
Ways to improve equity
Where, how much &
Brand-Tracking what ways brand
value is being
created?
Brand Valuation Financial Value of the
brand
hypermarketing2.co
www.
m

93. In summary:
Brand Elements Brand Valuation
The company Thoughts
& Beliefs
Images
Bonding
Brand Advantage
Feelings
Performance
Relevance
Presence
Presence
Marketing Activities and Meaning Transference
Brand Relationship Consumer
www.hypermarketing2.co
m

94. Chapter 9
Creating Brand Equity
Philip Kotler
Kevin Lane Keller
Donna Sia
May 4, 2012
hypermarketing2.co
www.
m