Introduction to brand equity
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1 Introduction to brand equity Session 2 Holistic Brand Strategy Patrick Collings Sagacite Brand Agency Nairobi, Kenya 26th & 27th May 2008
2 If this business were split up, I would give you the land and bricks and mortar, and I would take the brands and trademarks, and I would fare better than you John Stuart, Chairman of Quaker
3 tangible assets ruled however, for much of the 20th century
4 management knew brands were there but value not recorded
5 then the 1980s arrived
6 the value of brands was recognized (more about brand valuation in session four)
7 so a business perspective on brands (not to be confused with our market definition )
8 Brands are intangible assets, assets that produces added benefits for the business. This is the domain of strategic brand management: how to create value with proper brand management Jean-Noël Kapferer, The New Strategic Brand Management
9 what is brand equity
10 many different viewpoints and definitions
11 my mashup version
12 brand equity is the measurable value derived from marketing and other strategic and management efforts attributable to a brand
13 brand equity is the measurable value derived from marketing and other strategic and management efforts attributable to a brand
14 lets explore this value add
15 enables buying 1decisions
16
17 builds customer 2loyalty
18 1 + 2 =
19 builds market 3share
20 protects market 4share
21
22 helps command 5higher prices
23 +20%
24 creates a halo 6effect
25 apple itunes commercial
26
27 50% vs 17%
28 assists business 7expansion
29 more trade 8support
30 increases market 9value
31 but... there is a flip side
32 a neglected brand erodes value
33 the point we have arrived at
34 we have defined brands
35 we have defined brand equity
36 shown that a valuable brand adds overall value
37 now to build brand equity
38 kevin lane keller E. B. Osborn Professor of Marketing at the Tuck School of Business at Dartmouth College
39
40 customer-based brand equity model
41 CBBE
42 approaches brand equity from the perspective of the consumer
43 customer-based brand equity is the differential effect that brand knowledge has on consumer response to the marketing of the brand
44 customer-based brand equity is the differential effect that brand knowledge has on consumer response to the marketing of the brand
45 customer-based brand equity is the differential effect that brand knowledge has on consumer response to the marketing of the brand
46 customer-based brand equity is the differential effect that brand knowledge has on consumer response to the marketing of the brand
47 colt 45 pabst coors guinness miller lite budweiser taste perception of six beers when aware of the brands
48 budweiser miller lite pabst colt 45 coors guinness taste perception of six beers when unaware of the brands
49 a brand has positive cbbe when consumer react more favourably to an offering and its marketing when the brand is identified than when it is not
50 a brand has negative cbbe when consumer react less favourably to an offering and its marketing when the brand is identified than when it is not
51 The challenge for marketers in building a strong brand is ensuring that customers have the right type of experiences with products and services and their accompanying marketing programs so that the desired thoughts, feelings, images, beliefs, perceptions, opinions, and so on become linked to the brand. Kevin Lane Keller
52 a point of difference
53 keller s cbbe model is marketing focus whilst holistic brand strategy embraces other management disciplines
54 building brand equity
55 four sequential steps
56 brand relationship brand opinion brand understanding brand awareness
57 what about us? brand relationship who do i think of you? brand opinion what are you? brand understanding who are you? brand awareness
58 what about us? brand relationship intense and active loyalty who do i think of you? brand opinion positive accessible reactions what are you? brand understanding points of parity & points of difference who are you? brand awareness deep and broad brand awareness
59 customer-based brand equity pyramid
60 loyal client base brand resonance brand opinion brand understanding potential market brand awareness
61 takeaways
62 1 value of brands only measured and recorded in the last two decades 2 brand equity is the measurable value derived from activities unique to a brand 3 a valuable brand helps an entire organization 4 building brand equity with keller s customer-based brand equity model
63 presentation by patrick collings sagacite brand agency
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