CHAPTER:15 Closing Observations

1. CHAPTER:15Closing Observations

2. Learning Objectives • Understand the six future brand imperatives • Identify the ten criteria for the brand report card • Outline the seven deadly sins of brand management

3. Strategic Brand Management Guidelines

4. Summary of Customer-Based Brand Equity Framework • Sources of brand equity • Outcomes of brand equity

5. Figure 15.1 - Summary of Brand Knowledge

6. Sources of Brand Equity • Dimensions of brand associations depend on three factors: • Strength • Favorability • Uniqueness

7. Figure 15.2 - Determinants of Desired Brand Knowledge Structures

8. Outcomes of Brand Equity • Benefits for the brand • Improved perceptions of product performance • Greater customer loyalty • Less vulnerability to competitive marketing actions • Less vulnerability to marketing crises • Higher margins

9. Outcomes of Brand Equity • More inelastic consumer response to price increases • More elastic consumer response to price decreases • Greater trade cooperation and support • Increased marketing communication effectiveness • Possible licensing opportunities • Additional brand extension opportunities

10. Tactical Guidelines

11. Figure 15.3 - Building Customer-Based Brand Equity

12. Figure 15.4 - Guidelines for Building Brand Equity

13. Building Brand Equity • A dominant theme across many of these different ways to build brand equity is the importance of: • Complementarity: Choosing different brand elements and supporting marketing activities • Potential contribution to brand equity of one compensates for the shortcomings of others • Consistency: Across elements helps create the highest level of awareness and the strongest and most favorable associations possible

14. Measuring Brand Equity • A set of research procedures designed to provide timely, accurate, and actionable information for marketers about their brands • Implementing a brand equity measurement system has three steps: • Conducting brand audits • Designing brand tracking studies • Establishing a brand equity management system

15. Figure 15.5 - Guidelines for Measuring Brand Equity

16. Figure 15.6 - Managing Customer-Based Brand Equity

17. Figure 15.6 - Managing Customer-Based Brand Equity

18. Figure 15.7 - Guidelines for Managing Brand Equity

19. Managing Brand Equity • The dominant themes in managing brand equity: • The importance of maintaining balance in marketing activities • Making moderate levels of change in the marketing program over time

20. What Makes a Strong Brand? • Understand brand meaning and market appropriate products and services in an appropriate manner • Properly position the brand • Provide superior delivery of desired benefits • Employ a full range of complementary brand elements, supporting marketing activities, and secondary associations

21. What Makes a Strong Brand? • Embrace integrated marketing communications and communicate with a consistent voice • Measure consumer perceptions of value and develop a pricing strategy accordingly • Establish credibility and appropriate brand personality and imagery

22. What Makes a Strong Brand? • Maintain innovation and relevance for the brand • Strategically design and implement a brand architecture strategy • Implement a brand equity management system • Ensures that marketing actions properly reflect the brand equity concept

23. Figure 15.8 - Seven Deadly Sins of Brand Management

24. Figure 15.9 - Future Brand Imperatives

25. Figure 15.9 - Future Brand Imperatives

26. To Sum Up.. • Effective brand management requires consistent application of guidelines across all aspects of the marketing program • Each branding situation and application is unique and requires careful scrutiny and analysis • How best to apply, or perhaps in some cases ignore various recommendations and guidelines