A summary of Aaker on Branding: 20 Principles That Drive Success by David Aaker

1. Brands are Assets
with Value
“Branding is what people say about you when you’re
not in the room.“ Jeff Bezos

2. 3 Most important
Assets to a Company
 People
 Information Technology
 Brands
 Strong brands result in a competitive advantage long term
 Brand Equity changes the stock return.
 But a real equity change is unlikely to happen with only
advertising and promotions

3. Brand Building Takes:
 Long term consistent brand communication to consumer over
years with a strategic plan
 Do not try only short term communication of the brand ‘s
assets
 Done with tactics because these can depress profits.
 Once the brand has value / equity it should be managed as an
asset on the balance sheet

4. Brand Vision
Drives Brand Building
 A definition of a Brand is more than a tag line like “You are in
good hands with All State”.
 A Brand is build around 6 to 12 visionary elements.
 Pick up to 5 that are the most compelling, remaining are
secondary values that add dimension to the brand.
o Vision Implies Promise to Customers and they need for
substance and proof

5. Defining a brand is not
a fill in the blank process
 Analyze the market place, competition, customers, internal
organization and the strategy to make brand
 Brand Vision is Aspirational - it can be different from the
current vision
 Cannot force a Brand Essence (central theme of a vision)
needs to develop naturally
 Brand Position is short term communication with target
audience
 All of the associations that the Brand has should be a point of
difference that supports the value proposition.

6. Define a Brand as a person to
uncover emotional responses to
the brand
 Brands have Personality it helps to define them as human
 Defines communication methods the brand would take
 Provides information on how energetic the Brand will be;
How reserved? How playful?
 Defines what type of friend they would be
 Guides Brand Building Programs – all advertising and
touchpoints

7. Organizational Values are a Part
of Brand Management
 Contributes to the customer relationship by:
 Supporting the value proposition
 Providing credibility as an endorser
 Creating a higher purpose –
people will connect because of a social program being
performed within the company that is important
 Just being neutral

8. 7 Organizational Values Drive
Consumer Perception
 Perceived Quality
 Innovation
 Concern for the Customer
 Success and Size
 Going Local (providing a local product when not a local
company)
 Environmental Programs
 Social Programs

9. Getting Credit in the Marketplace
 Create or leverage an offering in the marketplace that
represents a value
 Develop visible branded program and support it relentlessly
 Communicate tasks with emotional components often.

10. Product-Attribute Fixation Trap
 The strategic and tactical management of the brand is excessively
focused on product attributes and functional benefits
 Customers the benefits are compelling enough to by the brand
 Competition can copy
 There needs to be an emotional bond between the brand and the
consumer for a strategy to work long term

11. Value Proposition –
Emotional Benefits
 The strongest connections made with the consumer are with a
functional and an emotional benefit
 Emotional benefits have the ability to make the consumer feel
something during use or purchase
 Focus on the act of using the product
 “When I buy or use this brand I feel _______.”
 http://www.businessinsider.com/axe-advertising-unilever-
brandwashed-2011-10

12. Value Proposition –
Self – Expressive Benefits
 Brands help people express their actual or ideal self-image
 Delivering self-expressive benefits is the essence of being a
charismatic brand
 Focus on the consequences of using the product
 “When I buy or use this brand I am ________.”
 http://appadvice.com/post/apple-musics-marketing-strategy-
is-a-clubhouse-for-artists/711222

13. Value Proposition –
Social Benefits
 Social benefits provide a sense of identity and belonging
 Consumer becomes part of a reference group
 Would picture others affected by the product
 “When I buy this brand, the type of people I relate to are
____________?”
 http://www.newyorker.com/business/currency/patagonias-
anti-growth-strategy