PDF 1

What is a Brand?

• Origin: The term "brand" comes from the Old Norse word "brandr," meaning "to
burn," originally used for marking livestock.

• Definition (AMA): A brand is a name, term, sign, symbol, or design intended to

identify a seller’s goods/services and differentiate them from competitors.

• Creating a brand goes beyond symbols—it includes building awareness,

reputation, and market prominence.

Brand Elements

• Components like name, logo, symbol, or design help identify and differentiate
brands.

• Marketers carefully select these elements to create brand identity.

Brand vs. Product

• Product (Kotler): Anything offered to the market to satisfy a need or want.

• Five Levels of Product:

1. Core Product: The fundamental benefit (e.g., transportation in a car).

2. Generic Product: Basic version (e.g., a car with minimal features).

3. Expected Product: Standard features customers expect (e.g., air

conditioning).

4. Augmented Product: Extra features adding value (e.g., extended

warranty).

5. Potential Product: Future enhancements (e.g., self-driving capabilities).

• Brand adds dimensions: Goes beyond the tangible product to include

packaging, services, and emotional connections.

Why Do Brands Matter?

For Consumers:

1. Identifies the source of the product.

 2. Assigns responsibility to the maker.

3. Reduces risks (functional, financial, psychological, etc.).

4. Reduces search costs.

5. Provides a symbolic self-expression device.

6. Acts as a quality signal.

For Manufacturers:

1. Simplifies product handling and tracking.

2. Legally protects features.

3. Signals quality.

4. Creates unique associations.

5. Offers a competitive advantage.

6. Provides financial returns.

Can Anything Be Branded?

• Almost anything can be branded, including physical goods, services, retailers,

online platforms, people, organizations, geographic locations, and events.

• Branding involves creating mental structures that help consumers make

decisions by providing clarity and value.

Challenges for Brand Builders

1. Savvy customers with higher expectations.

2. Complex brand families and portfolios.

3. Maturing markets make differentiation difficult.

4. Declining brand loyalty.

5. Growth of private labels.

6. Increased trade power.

7. Fragmented media coverage.

8. Decreasing traditional media effectiveness.

9. New communication options (e.g., social media).

 10. Increasing promotional expenditures but shrinking advertising budgets.

11. Short-term performance focus.

12. Higher job turnover rates.

The Brand Equity Concept

• Emerged in the 1980s to explain the value a brand adds to a product.

• Core Principles:

1. Value arises from past marketing efforts.

2. Brand equity offers a way to measure brand value and interpret strategies.

3. Differences in consumer perception drive equity.

Strategic Brand Management

This involves designing and implementing activities to build, measure, and manage
brand equity.

Process Steps:

1. Identify and Establish Brand Positioning and Values:

o Positioning (Kotler): Designing a brand to occupy a valued place in the

consumer’s mind.

o Core Brand Values: Abstract associations (e.g., quality, trust).

o Brand Mantra: A short 3-5 word statement summarizing the brand’s

essence.

2. Plan and Implement Brand Marketing Programs:

o Key elements include brand names, symbols, and marketing activities.

o Leverage associations (e.g., co-branding, endorsements, origin, or

events).

3. Measure and Interpret Brand Performance:

o Tools like the Brand Value Chain trace value creation.

o Conduct tracking studies and establish a brand equity management

system.
 4. Grow and Sustain Brand Equity:

o Maintain brand relevance across diverse markets, categories, and

segments.

o Reinforce and revitalize branding strategies over time.

Strategic Brand Management Process

• Mental Maps: Visualize consumer associations with the brand.

• Competitive Frame of Reference: Identify competitors.

• Brand Product Matrix: Map out brand offerings across categories.

• Brand Portfolio: Manage different brands within a company.

• Expansion Strategies: Enter new markets while maintaining brand equity.

PDF 2

1. Introduction to Customer-Based Brand Equity (CBBE)

• Key Questions:
1. What makes a strong brand?
2. How do you build one?
• The CBBE Model:
o Provides a structured approach to building, managing, and measuring brand
equity.
o Focuses on the consumer’s perspective, making it actionable and relevant for
marketers.

Example: For Coca-Cola, strong brand equity is built by consistent global campaigns (like
"Share a Coke") and emotional connections (e.g., happiness and togetherness).

2. Core Concept of CBBE

• The power of a brand lies in what consumers think, feel, and believe about it.
• Key Objective: Create positive associations through consistent experiences.

Example: Apple consistently emphasizes innovation and simplicity, leading consumers to

associate it with premium quality and user-friendliness.
3. Definition of CBBE

• CBBE: The differential effect that brand knowledge has on consumer responses to
marketing.
o Positive CBBE: Consumers prefer the brand and respond positively.
o Negative CBBE: Consumers avoid or criticize the brand.

Example:

• Positive CBBE: Customers choose Nike over unbranded sportswear because of its
performance, style, and "Just Do It" identity.
• Negative CBBE: If a brand like Volkswagen is linked to a scandal (e.g., emissions
fraud), customer trust diminishes.

4. Three Ingredients of CBBE

1. Differential Effect: Consumers respond differently to branded vs. unbranded

products.
o Example: In a blind taste test, many consumers choose Pepsi, but with labels
visible, Coca-Cola is preferred due to strong branding.
2. Brand Knowledge: Built from customer experiences and marketing efforts.
o Example: Samsung is known for technological innovation because of its
advertising and product performance.
3. Consumer Response: Influences buying behavior, loyalty, and word-of-mouth.
o Example: Fans of Tesla actively promote its products on social media.

5. Marketing Advantages of Strong Brands

1. Better Perceptions: Customers associate quality with the brand.

o Example: Lexus is perceived as high-quality and reliable.
2. Customer Loyalty: Ensures repeat purchases.
o Example: Starbucks Rewards retains customers with loyalty programs.
3. Resilience: Withstands competition and crises.
o Example: Tylenol recovered from its 1980s product tampering crisis due to
strong brand trust.
4. Profit Margins: Customers pay a premium for trusted brands.
o Example: Rolex can command high prices due to its luxury image.

6. Brand Equity as a Bridge

• Past: Reflects historical marketing investments.

• Future: Shapes long-term strategies.
Example:

• Nike’s "Just Do It" Campaign (1988) laid the foundation for decades of brand
equity, helping it expand into fitness apps and smart products like Nike+.

7. Building Brand Knowledge

• Associative Network Memory Model:

o Memory is like a web of nodes (concepts) and links (connections).
o Brand Node: Central idea of the brand, connected to various associations
(e.g., quality, price).

Example: For McDonald's, the brand node is connected to associations like fast food,
cleanliness, family, and value.

8. Components of Brand Knowledge

1. Brand Awareness:
o Recognition: Identifying the brand when seen or heard.
▪ Example: The Nike swoosh or McDonald’s golden arches.
o Recall: Remembering the brand without visual cues.
▪ Example: If someone thinks of "luxury cars," BMW might come to
mind.
2. Brand Image:
o Associations that consumers link to the brand.
o Example: For Disney, associations include fun, magic, and family
entertainment.

9. Benefits of Brand Awareness

1. Learning: Helps customers connect attributes with the brand.

o Example: Consumers know Dettol stands for cleanliness and germ protection.
2. Consideration: Increases chances of being chosen.
o Example: In the smartphone market, Samsung is likely to be part of a buyer's
shortlist.
3. Choice: Guides purchase decisions.
o Example: During a cola purchase, customers often default to Coca-Cola or
Pepsi.

10. Creating a Positive Brand Image

 • Use marketing programs to build strong, favorable, and unique associations.
• Example: Amazon is associated with convenience, fast delivery, and reliability due
to its Prime program and customer-centric policies.

11. CBBE Model

The model identifies four steps to build brand equity:

1. Identity: Ensure customers know the brand.

o Example: Zara ensures visibility through global stores in prime locations.
2. Meaning: Define functional (e.g., quality) and emotional (e.g., trust) aspects.
o Example: Dove focuses on natural beauty and self-confidence.
3. Response: Evoke desired customer judgments and feelings.
o Example: Apple evokes innovation and sophistication.
4. Relationships: Build loyalty and emotional connections.
o Example: Harley-Davidson creates a community of passionate riders.

12. CBBE Pyramid

1. Salience (Identity):
o Depth (easy recall) and breadth (applicability in different situations).
o Example: Google is the first name recalled for online searches.
2. Performance (Functional Needs):
o Attributes like quality, reliability, price.
o Example: Toyota is known for reliability.
3. Imagery (Emotional Needs):
o User profiles, purchase situations, and personality traits.
o Example: Louis Vuitton represents luxury and status.
4. Judgments (Evaluations):
o Customers’ opinions about quality and relevance.
o Example: Microsoft is trusted for expertise and innovation.
5. Feelings (Emotions):
o Positive emotional responses like excitement or pride.
o Example: Tide evokes trust and self-respect for clean clothes.
6. Resonance (Relationships):
o Behavioral loyalty and emotional attachment.
o Example: Apple users show deep engagement by joining communities or
attending product launches.

13. Achieving Brand Resonance

• Focus on:
1. Emotional branding.
2. Consistent experiences.
 3. Loyalty programs.

Example:

• Amazon Prime maintains customer loyalty through exclusive benefits like free
delivery and video streaming.

14. Brand Equity Models

1. Brand Asset Valuator (BAV):

o Measures differentiation, relevance, esteem, and knowledge.
o Example: A highly differentiated brand like Tesla stands out in the market.
2. Aaker Model:
o Focuses on loyalty, quality, awareness, and associations.
o Example: Sony maintains brand equity through quality and innovative
products.
3. BRANDZ:
o Evaluates presence, performance, and bonding.
o Example: Google leads in bonding due to its daily relevance.
4. Kapferer’s Prism:
o Explores how brands emotionally and rationally connect with customers.

15. Key Takeaways

• Strong brands influence consumer perceptions and decisions.

• Successful branding relies on creating meaningful differences in competitive markets.

PDF 3

1. Understanding Brand Equity

• Customer-Based Brand Equity (CBBE):

o The differential effect that a brand's knowledge has on how customers respond
to its marketing activities.
o Essentially, strong brand equity means customers recognize, prefer, and value
the brand, leading to better business outcomes.

2. Two Approaches to Measuring Brand Equity

1. Indirect Approach:
o Studies potential sources of brand equity.
 o Focuses on identifying and tracking how customers perceive and think about
the brand (brand knowledge structures).
o Example: Tracking awareness, associations, and attitudes about Nike can help
understand why it resonates with athletes.
2. Direct Approach:
o Examines the impact of brand knowledge on consumer responses to
marketing.
o Assesses how consumers react to different elements like advertising,
packaging, or pricing.
o Example: Testing how much more customers would pay for Apple AirPods
compared to generic alternatives.

3. What is a Brand Equity Measurement System?

• A brand equity measurement system is a framework that collects timely, accurate,

and actionable data to help marketers make:
o Tactical Decisions (short-term): Adjust campaigns based on consumer
responses.
o Strategic Decisions (long-term): Build consistent brand value over time.
• To develop this system, it is crucial to:
1. Understand how brand equity is created.
2. Trace the financial impact of marketing investments.

4. The Brand Value Chain

This is a step-by-step approach to understanding how marketing activities create brand value.
It consists of four key stages:

1. Marketing Program Investment:

o The company invests in marketing activities (e.g., advertising, promotions).
o Example: Coca-Cola invests heavily in TV ads and sponsorships.
2. Customer Mindset:
o Marketing influences customers' awareness, attitudes, associations,
attachment, and activities.
o Example: Customers associate Coca-Cola with happiness and refreshment.
3. Market Performance:
o Customer responses impact the brand’s performance in the market.
o Example: High customer loyalty drives Coca-Cola's market share.
4. Shareholder Value:
o Market performance impacts stock prices, profitability, and overall company
valuation.
o Example: Strong branding contributes to Coca-Cola's high market
capitalization.
5. Multipliers in the Brand Value Chain

• Linking Factors: The extent to which value created in one stage carries over to the
next.
• These multipliers include:
1. Program Quality Multiplier:
▪ How effective marketing programs are in building brand equity.
▪ Depends on clarity, relevance, distinctiveness, and consistency.
▪ Example: Consistent messaging like McDonald’s "I’m Lovin’ It"
enhances recognition.
2. Marketplace Conditions Multiplier:
▪ External factors like competition, consumer preferences, and growth
opportunities.
▪ Example: Tesla's success is amplified by the growing demand for
electric vehicles.
3. Investor Sentiment Multiplier:
▪ How investors perceive the brand’s long-term potential.
▪ Example: Positive perceptions about Amazon drive its high stock
valuation.

6. Implementing the Brand Equity Measurement System

Three key components to implementation:

1. Brand Audits:
o Comprehensive assessments of a brand's health and equity sources.
o Example: A company might analyze how its brand is perceived compared to
competitors like Pepsi vs. Coca-Cola.
2. Tracking Procedures:
o Collecting data over time to monitor brand performance and customer
perceptions.
o Example: Continuous surveys track how Starbucks is perceived for quality
and innovation.
3. Brand Equity Management System:
o Tools and processes to ensure consistent branding across all marketing efforts.

7. Brand Audits in Detail

• Purpose: To evaluate the health of a brand and uncover ways to improve its equity.
• Steps in a Brand Audit:
1. Brand Inventory:
▪ Create a detailed profile of how products are marketed and branded.
▪ Example: Document all of Apple’s branding elements like logos,
taglines, and product features.
2. Brand Exploratory:
 ▪ Conduct research to understand consumer perceptions and feelings
about the brand.
▪ Methods include:
▪ Reviewing past studies.
▪ Conducting interviews with customers and employees.
▪ Using qualitative and quantitative research.

Key Takeaways (Pages 1-7)

1. Brand equity is created through marketing investments, customer mindset, market

performance, and shareholder value.
2. The Brand Value Chain explains how these stages are interconnected, with
multipliers enhancing or limiting the process.
3. Brand audits and tracking systems are crucial for maintaining and improving brand
equity.