Building and managing
brand equity: toward a
strong brand
relationship.

MKTG3118
Brands !!
“A product is something that
is made in a factory; a brand
is something that is bought by
a consumer. A product can be
copied by a competitor; a
brand is unique. A product can
be quickly outdated; a
successful brand, properly
managed, can be timeless.”
! Steven King
(former CEO JWT
Advertising)
Image,
branding
and position
3
Chapter 9 - Building and Managing Brand Equity 4
Brand
Associations Brand Loyalty
Brand
Awareness
Brand
Equity
Brand equity—Assets and liabilities connected to the brand
Figure 9.1
Chapter 9 - Building and Managing Brand Equity 5
Elements of Brand Equity
Brand Awareness Provides sense of familiarity
Signal of
commitment and
substance
Salience will help
it get considered
Elements of Brand Equity
Brand Associations
Attribute/benefit associations provide a reason-to-buy
• Product category—relevance
• Personality
• Organizational associations
• Emotional or self-expressive benefits
• The experience
• Being global
Communicates value propositions
Elements of Brand Equity
Brand loyalty
! Reduces marketing costs
! Creates entry barriers
! Generates a positive image
! Provides time to respond to
competitor moves
7
How is a Brand a Strategic Asset?
! 1) Segmentation
! Strong brand associations clearly help
a firm identify consumers (or
segments) who relate to these
characteristics and who seek similar
benefits from a product or service.
2) Positioning
Brands help consumers interpret
product/service information in their
minds through communicating brand
associations and the core value
proposition so as they have a clear
idea of what the brand stands for
relative to competitors. Eg. IKEA -
value, Louis Vuitton - luxury
How is a brand
a strategic
asset?
(continued)
! 3) Platform for Growth
! Strong brands make it easier for
firms to enter new segments /
markets, as consumers already have
familiarity and trust in the brand
and will accept a new product more
readily. Eg. Virgin into gyms,
Samsung into Telecommunications
! 4) Brand Value
! A strong brand is a source of long
term profitability for the firm due to
it’s ability to retain customers and
generate loyalty. Enhanced
Customer Lifetime value (CLV).
Brands have
the ability to
move all the 5
forces.
! 5) Porter’s 5 Forces
! Suppliers – brands represent the
maintenance of quality and supply at the
best price. Eg. Trade leverage with
distributors
! Customers – brands affect the ability of
customers to put the firm under pressure
(create switching costs) and the degree to
which they are price sensitive.
! New Entrants – a strong brand is a barrier to
entry as it costs time and money to create
one.
! Substitutes – brands create a sense of
uniqueness around a product or service,
making substitution harder.
! Competition – brands exist at the very edge
of competition, driving choice and creating
desire beyond the simply rational.
Class Exercise : Your brand as a strategic
asset?
! Spend a few moments thinking about the Tesla
brand
! In conducting a quick brand review from the
information gained in the videos decide how the
brand performs as a strategic asset in;
! Strengthening the parent’s brand identity
! Supporting business development
! Enhancing or changing the brand’s image
! https://www.youtube.com/watch?
v=B4lkWO1TC5c
! Tesla $0 dollar marketing spend?
! https://www.youtube.com/watch?v=tF9r9LrOb70
Image, Branding and
Positioning
! Country of origin effects
! International branding
! Brand categories
! Brand strategies
! Brand piracy
12
Branded
Differentiator
! An actively managed,
branded feature, ingredient
or technology, service, or
program that creates a
meaningful, impactful point
of differentiation for a
branded offering over an
extended period of time.
Chapter 11 - Energize the Business 14
Chapter 11 - Energize the Business 15WestinWORKOUT powered by Reebok
Co-Branded Differentiator
Chapter 11 - Energize the Business
Branded Energizer
Sub-brand or brand that energizes
and enhances a parent brand
Energizers could be:
▪ Products
▪ Promotion
▪ Endorsers
▪ Any source of energy
attached to the
brand
Chapter 11 - Energize the Business
Branded Energizer
Avon Breast Cancer Crusade –
branded social programmes
17

Chapter 11 - Energize the Business 18
adidas Streetball Challenge
Brand Supports
External Brand Energiser
Long term commitment
Becomes part of the brand portfolio
Affects elements of brand equity
Tactical Endorser
Short term
Separate to the brand
Used for sales promotion
Brand Piracy – “Knock offs”
20
Toward a strong brand relationship
! Understanding and prioritizing brand touch
points
! A brand experience is the essence of a
brand relationship and is created by brand
touchpoints.
! A brand touchpoint occurs any time a
person in the marketplace interacts with
the brand and it is the combination of
those touchpoints which defines the brand
experience.
! Improving the brand experience at every
touchpoint is one way to build and
consolidate brand relationships.
Class exercise: CROCS – how
the polarized brand became a
fashion statement
! Describe the CROCS business model from a
marketing strategy perspective
! Discuss how different elements of the
business model were changed to revitalize
the brand and optimize growth
opportunities presented during the
pandemic
! Customer value proposition
! Positioning of the product / brand
! Distribution channels
! Pricing decisions
! communication strategies
Do you think the pandemic driven success of
the brand can be sustained in the future?
https://www.youtube.com/watch?
v=kO5FURUKTi4
Key Learning
Brand management strategies. Brand
equity, a key asset for any business,
consists of brand awareness, brand
loyalty, and brand associations.
• A core loyal customer base reduces the
cost of marketing, provides a barriers to
competitors, supports a positive image,
and provides time to respond to
competitor moves.
• Brands act as strategic assets through
communicating the value proposition to
consumers and allowing firms
opportunities for growth.