kotler_mm13e_im_09 - C H BRAND TINGA P T E R EQUITY 9...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
ATING BRAND EQUITY 9 C H A P T E R LEARNING OBJECTIVES After reading this chapter, students should: Know what a is brand and how branding works Know what brand equity is Know how brand equity is built, measured, and managed Know the important decisions in developing a branding strategy CHAPTER SUMMARY A brand is a name, term, sign, symbol, or design, or some combination of these elements, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competitors. The different components of a brand— brand names, logos, symbols, package designs, and so on—are brand elements. Brands offer a number of benefits to customers and firms. Brands are valuable intangible assets that need to be managed carefully. The key to branding is that consumers perceive differences among brands in a product category. Brand equity should be defined in terms of marketing effects uniquely attributable to a brand. That is, brand equity relates to the fact that different outcomes result in the marketing of a product or service because of its brand, as compared to the results if that same product or service was not identified by that brand. Building brand equity depends on three main factors: (1) The initial choices for the brand elements or identities making up the brand; (2) the way the brand is integrated into the supporting marketing program; and (3) the associations indirectly transferred to the brand by linking the brand to some other entity (e.g., the company, country of origin, channel of distribution, or another brand). Brand equity needs to be measured in order to be managed well. Brand audits measure “where the brand has been,” and tracking studies measure “where the brand is now” and whether marketing programs are having the intended effects. A branding strategy for a firm identifies which brand elements a firm chooses to apply across the various products it sells. In a brand extension, a firm uses an established brand name to introduce a new product. Potential extensions must be judged by how effectively they leverage existing brand equity to a new product, as well as how effectively the extension, in turn, contributes to the equity of the existing parent brand. Brands can play a number of different roles within the brand portfolio. Brands may expand coverage, provide protection, extend an image, or fulfill a variety of other roles for the firm. Each brand name product must have a well-defined positioning. In that way, brands can maximize coverage and minimize overlap and thus optimize the portfolio. 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Chapter-by-Chapter Instructional Material Customer equity is a complimentary concept to brand equity that reflects the sum of lifetime values of all customers for a brand. DETAILED CHAPTER OUTLINE
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/29/2010 for the course KELLER MM522 taught by Professor Kissi during the Spring '10 term at Keller Graduate School of Management.

Page1 / 15

kotler_mm13e_im_09 - C H BRAND TINGA P T E R EQUITY 9...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online