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StrategicBuilding, Measuring, andManaging Brand Equityolydk School' f iyslciessCollegPEARSONBoston Columbus Indianapolis New York San Francisco Upper Saddle RiverAmsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal TorontoDelhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo
ntPrologue: Branding Is Not Rocket Science 19Preface 21AcknowledgmentsAbout the AuthorChapter 12628Brands and Brand Management29Preview 30What Is a Brand? 30Brand Elements 30Brands versus Products 31BRANDING BRIEF 1-1:Coca-Cola's Branding Lesson 32Why Do Brands Matter? 34Consumers 34Firms 35Can Anything Be Branded? 36Physical Goods 37BRANDING BRIEF 1-2:Branding Commodities 38THE SCIENCE OF BRANDING 1-1: Understanding Business-to-Business Branding 40THE SCIENCE OF BRANDING 1-2: Understanding High-Tech Branding 41Services 42Retailers and Distributors 43Online Products and Services 43People and Organizations 45Sports, Arts, and Entertainment 46BRANDING BRIEF 1-3:Place Branding48Geographic Locations 48Ideas and Causes 48What Are the Strongest Brands? 48THE SCIENCE OF BRANDING 1-3: Understanding Market Leadership 50Branding Challenges and Opportunities 52Savvy Customers 52Economic Downturns 54Brand Proliferation 54THE SCIENCE OF BRANDING 1-4:Marketing Brands in a Recession 55Media Transformation 55Increased Competition 56Increased Costs 56Greater Accountability 56The Brand Equity Concept57
10CONTENTSStrategic Brand Management Process 58Identifying and Developing Brand Plans58Designing and Implementing Brand Marketing ProgramsMeasuring and Interpreting Brand PerformanceGrowing and Sustaining Brand EquityReview58606061Discussion QuestionsBRAND FOCUS 1.0:61History of Branding61Notes 64Developing a Brand Strategy 67Chapter 2 Customer-Based Brand Equity and Brand Positioning 67Preview 68Customer-Based Brand Equity 68Defining Customer-Based Brand EquityBrand Equity as a Bridge6870Making a Brand Strong: Brand Knowledge71THE SCIENCE OF BRANDING 2-1: Brand Critics 72Sources of Brand Equity 73Brand AwarenessBrand Image7376Identifying and Establishing Brand Positioning 79Basic ConceptsTarget Market7979Nature of Competition81Points-of-Parity and Points-of-Difference82Positioning Guidelines 85Defining and Communicating the Competitive Frame of ReferenceChoosing Points-of-DifferenceEstablishing Points-of-Parity and Points-of-DifferenceBRANDING BRIEF 2-1:Straddle Positions88/ Positioning Politicians 8990Updating Positioning over Time91Developing a Good Positioning93Defining a Brand MantraBrand Mantras85879393BRANDING BRIEF 2-2:Nike Brand MantraBRANDING BRIEF 2-3:Disney Brand MantraTHE SCIENCE OF BRANDING 2-2:9495Branding Inside the OrganizationReview 97Discussion QuestionsBRAND FOCUS 2.0:98The Marketing Advantages of Strong Brands 98Notes 100Chapter 3Brand Resonance and the Brand Value Chain106Preview 107Building a Strong Brand: The Four Steps of Brand Building 107Brand Salience 107Brand Performance 111Brand Imagery 11397
CONTENTSTHE SCIENCE OF BRANDING 3-1:Luxury Branding 114Brand Judgments 117Brand Feelings 118Brand Resonance 120BRANDING BRIEF 3-1: Building Brand Communities122122Brand-Building ImplicationsTHE SCIENCE OF BRANDING 3-2:Putting Customers First 126The Brand Value Chain 128Value Stages 129Implications 131Review 132Discussion Questions 134BRAND FOCUS 3.0:Creating Customer Value134Customer Equity 134Notes 138 jjj ffi ?'Chapter 4Designing and ImpDementong Brand [Marketing ProgramsChoosing Brand Elements to Build Brand Equity141Preview 142Criteria for Choosing Brand Elements 142Memorability 143Meaningfulness 143Likability 143Transferability 144Adaptability 144THE SCIENCE OF BRANDING 4-1:Protectability147Counterfeit Business Is Booming146'Options and Tactics for Brand Elements 147Brand Names 147URLs 155Logos and Symbols 155Characters 156Slogans 158BRANDING BRIEF 4-1:ssUpdating the Disneyland Castle 159THE SCIENCE OF BRANDING 4-2:Create Great Characters 160BRANDING BRIEF 4-2:Balance Creative and Strategic Thinking toBenetton's Brand Equity Management 162Jingles 164Packaging 164Putting It All Together 167BRANDING BRIEF 4-3:Do-Overs with Brand Makeovers 168THE SCIENCE OF BRANDING 4-3: The Psychology of Packaging 169Review 170Discussion Questions 171BRAND FOCUS 4.0:Legal Branding Considerations171Notes 173Chapter 5Designing Marketing Programs to Build Brand EquityPreview 178New Perspectives on Marketing 17817711
12CONTENTSIntegrating M a r k e t i n g 179Personalizing Marketing 181THE SCIENCE OF BRANDING 5 - 1 : M a k i n g Sense Out o f Brand Scents 183Reconciling the Different Marketing Approaches 186Product Strategy 187Perceived Quality 187Aftermarketing 187Summary 190Pricing Strategy 191Consumer Price Perceptions 191THE SCIENCE OF BRANDING 5-2:Setting Prices to Build Brand Equity 193BRANDING BRIEF 5 - 1 :Summary 199Understanding Consumer Price Perceptions 192Marlboro's Price Drop 193Channel Strategy 199Channel Design 199Indirect Channels 201Direct Channels 205BRANDING BRIEF 5-2:Online Strategies 208Summary 208Goodyear's Partnering Lessons 206Review 209Discussion Questions 2 0 9BRAND FOCUS 5.0:Private-Label Strategies and Responses 210Notes 212Chapter 6Integrating Marketing Communications to Build Brand EquityPreview 218The New Media Environment 219Challenges in Designing Brand-Building Communications 219Role of Multiple Communications 221 Four Major M a r k e t i n g Communication Options 221Advertising 221THE SCIENCE OF BRANDING 6 - 1 :Promotion 232Online Marketing Communications 236Events and Experiences 239BRANDING BRIEF 6 - 1 :The Importance o f Database M a r k e t i n g 2 2 9Tough Mudder: The Toughest Event on the Planet 242Mobile Marketing 244Brand Amplifiers 246Public Relations and Publicity 246Word-of-Mouth 246Developing Integrated M a r k e t i n g Communication Programs 247Criteria for IMC Programs 248Using IMC Choice Criteria 250THE SCIENCE OF BRANDING 6-2:Coordinating Media t o Build Brand Equity 2 5 1Review 252Discussion Questions 253BRAND FOCUS 6.0:Notes 255Empirical Generalizations in Advertising 2 5 4217
CONTENTSChapter 7 Leveraging Secondary Brand Associations toBuild Brand Equity 259Preview 260Conceptualizing the Leveraging Process 261Creation of New Brand Associations 261Effects on Existing Brand Knowledge 261Guidelines 262Company 263BRANDING BRIEF 7-1:IBM Promotes a Smarter Planet 264Country of Origin and Other Geographic Areas 266BRANDING BRIEF 7-2:Selling Brands the New Zealand Way 268Channels of Distribution 269Co-Branding 269THE SCIENCE OF BRANDING 7-1: Understanding Retailers'Brand Images 270Guidelines 271- Ingredient Branding 272\ THE SCIENCE OF BRANDING 7-2:Understanding Brand Alliances 273Licensing 275BRANDING BRIEF 7-3:Guidelines 278Ingredient Branding the DuPont Way 276Celebrity Endorsement 278Potential Problems 279Guidelines 281Sporting, Cultural, or Other Events 282BRANDING BRIEF 7-4:Managing a Person Brand 283Third-Party Sources 284Review 285Discussion Questions 286BRAND FOCUS 7.0:Going for Corporate Gold at the Olympics286Notes 288PARTIVMeasuring and Interpreting Brand PerformanceChapter 8 Developing a Brand Equity Measurement andManagement System 291Preview 292The New Accountability 292Conducting Brand Audits 293Brand Inventory 294Brand Exploratory 295Brand Positioning and the Supporting Marketing Program 298THE SCIENCE OF BRANDING 8-1: The Role of Brand Personas 299Designing Brand Tracking Studies 300What to Track 300BRANDING BRIEF 8-1: Sample Brand Tracking Survey 301How to Conduct Tracking Studies 303How to Interpret Tracking Studies 30529113
14CONTENTSEstablishing a Brand Equity Management System 305BRANDING BRIEF 8-2: Understanding and Managing the Mayo Clinic Brand 306Brand Charter 307Brand Equity Report 308Brand Equity Responsibilities 309THE SCIENCE OF BRANDING 8-2:Maximizing Internal Branding 310BRANDING BRIEF 8-3: How Good Is Your Marketing? Rating a Firm'sMarketing Assessment System 312Review 314Discussion Questions 315BRAND FOCUS 8.0:Rolex Brand Audit 315Notes 322Chapter 9Measuring Sources of Brand Equity: CapturingCustomer Mind-Set324Preview 325Qualitative Research Techniques 325BRANDING BRIEF 9-1: Digging Beneath the Surface to UnderstandConsumer Behavior 326Free Association 326Projective Techniques 328BRANDING BRIEF 9-2: Once Upon a Time . . . You Were What You Cooked 329Zaltman Metaphor Elicitation Technique 330BRANDING BRIEF 9-3: Gordon Ramsay 331Neural Research Methods 332Brand Personality and Values 333Ethnographic and Experiential Methods 334BRANDING BRIEF 9-4:Summary 338Making the Most of Consumer Insights 335Quantitative Research TechniquesBrand Awareness 339Brand Image 342338/yTHE SCIENCE OF BRANDING 9-1: Understanding Categorical Brand Recall 343Brand Responses 344Brand Relationships 346THE SCIENCE OF BRANDING 9-2:Understanding Brand Engagement 349Comprehensive Models of Consumer-Based Brand Equity 351BrandDynamics 351Relationship to the CBBE Model 352Review 352*Discussion Questions 353BRAND FOCUS 9.0:Young & Rubicam's BrandAsset Valuator 353Notes 359Chapter 10 Measuring Outcomes of Brand Equity: CapturingMarket Performance 362Preview 363Comparative Methods 364Brand-Based Comparative Approaches 364
15CONTENTSMarketing-Based Comparative ApproachesConjoint Analysis365367Holistic Methods368Residual Approaches369Valuation Approaches371THE SCIENCE OF BRANDING 10-1: The Prophet Brand Valuation MethodologyBRANDING BRIEF 10-1: Beauty Is in the Eye of the BeholderReview378379Discussion Questions380BRAND FOCUS 10.0:Notes375Branding and Finance380382Growing and Sustaining Brand Equity 385Chapter 11 Designing and Implementing Brand Architecture Strategies 385Preview386Developing a Brand Architecture Strategy Step 1: Defining Brand Potential386386THE SCIENCE OF BRANDING 11-1: The Brand-Product MatrixTHE SCIENCE OF BRANDING 11-2:Step 2: Identifying Brand Extension OpportunitiesStep 3: Branding New Products and ServicesSummary387Capitalizing on Brand Potential390392392393Brand Portfolios393BRANDING BRIEF 11-1: Expanding the Marriott BrandBrand Hierarchies396398Levels of a Brand Hierarchy398Designing a Brand HierarchyBRANDING BRIEF 11-2:Corporate Branding400Netflix Branding Stumbles408401s*THE SCIENCE OF BRANDING 11-3:Corporate Brand Personality409Corporate Image Dimensions409BRANDING BRIEF 11-3:Corporate Reputations: The Most Admired U.S. CompaniesBRANDING BRIEF 11-4:Corporate Innovation at 31MManaging the Corporate Brand414Brand Architecture GuidelinesReview421422Discussion QuestionsBRAND FOCUS 11.0:Notes410412423Cause Marketing423426Chapter 12 Introducing and Naming New Products and Brand Extensions 431Preview432New Products and Brand ExtensionsBRANDING BRIEF 12-1:Advantages of Extensions432Growing the McDonald's Brand435Facilitate New-Product Acceptance436Provide Feedback Benefits to the Parent Brand438434
16CONTENTSDisadvantages of Brand Extensions441Can Confuse or Frustrate Consumers 441Can Encounter Retailer Resistance 442Can Fail and Hurt Parent Brand Image 442THE SCIENCE OF BRANDING 12-1: When Is Variety a Bad Thing?Can Succeed but Cannibalize Sales of Parent Brand 444Can Succeed but Diminish Identification with Any One Category443444BRANDING BRIEF 12-2: Are There Any Boundaries to the Virgin Brand Name?Can Succeed but Hurt the Image of the Parent Brand 446Can Dilute Brand Meaning 446Can Cause the Company to Forgo the Chance to Develop a New Brand446Understanding How Consumers Evaluate Brand ExtensionsManagerial Assumptions 448Brand Extensions and Brand EquityVertical Brand Extensions 451447448Evaluating Brand Extension Opportunities452Define Actual and Desired Consumer Knowledge about the Brand452 BRANDING BRIEF 12-3:453Mambo Extends Its Brandidentify Possible Extension Candidates 454Evaluate the Potential of the Extension CandidateDesign Marketing Programs to Launch Extension454457Evaluate Extension Success and Effects on Parent Brand EquityExtension Guidelines Based on Academic ResearchReview469Discussion QuestionsBRAND FOCUS 12.0:Notes458459469Scoring Brand Extensions470471Chapter 13 Managing Brands Over Time 477Preview 478Reinforcing Brands 479ssMaintaining Brand Consistency480THE SCIENCE OF BRANDING 13-1: Brand FlashbacksProtecting Sources of Brand Equity 482Fortifying versus Leveraging 484Fine-Tuning the Supporting Marketing ProgramBRANDING BRIEF 1 3 - 1 :Revitalizing Brands482484Razor-Sharp Branding at Gillette490BRANDING BRIEF 13-2:Remaking Burberry's ImageBRANDING BRIEF 13-3:Harley-Davidson Motor Company492BRANDING BRIEF 13-4: A New Morning for Mountain DewExpanding Brand Awareness 495Improving Brand Image 497Adjustments to the Brand Portfolio499Migration Strategies 499Acquiring New Customers 499Retiring Brands 500Review502Discussion QuestionsBRAND FOCUS 13.0:Notes507487504Responding to a Brand Crisis504493494445
CONTENTSChapter 14M a n a g i n g Brands Over Geographic Boundaries a n dM a r k e t S e g m e n t s 509Preview 510Regional Market Segments 510Other Demographic and Cultural Segments 511Rationale for Going International 512BRANDING BRIEF 14-1: Marketing to African Americans 513Advantages of Global Marketing Programs 514Economies of Scale in Production and Distribution 514Lower Marketing Costs 515Power and Scope 515Consistency in Brand Image 515Ability to Leverage Good Ideas Quickly and Efficiently 515Uniformity of Marketing Practices 515Disadvantages of Global Marketing cesDifferencesDifferencesDifferences516in Consumer Needs, Wants, and Usage Patterns for Products 516in Consumer Response to Branding Elements 516in Consumer Responses to Marketing Mix Elements 517in Brand and Product Development and the Competitive Environmentin the Legal Environment 518in Marketing Institutions 518in Administrative Procedures 518Global Brand Strategy518519Global Brand Equity 519Global Brand Positioning 520Standardization versus CustomizationStandardization and Customization521521BRANDING BRIEF 14-2:Coca-Cola Becomes the Quintessential Global BrandBRANDING BRIEF 14-3:UPS's European ExpressDeveloping versus Developed Markets528Building Global Customer-Based Brand Equity524, 5291. Understand Similarities and Differences in the Global Branding Landscape2. Don't Take Shortcuts in Brand Building 5303. Establish Marketing Infrastructure 5314. Embrace Integrated Marketing Communications 5325. Cultivate Brand Partnerships 5326. Balance Standardization and Customization 533BRANDING BRIEF 14-4: Managing Global Nestle Brands7. Balance Global and Local Control 5358. Establish Operable Guidelines 5368. Implement a Global Brand Equity Measurement System 53710. Leverage Brand Elements 537529534THE SCIENCE OF BRANDING 14-1: Brand Recall and LanguageReview539Discussion QuestionsBRAND FOCUS 14.0:Notes543541China Global Brand Ambitions541—53852217
18CONTENTSjamumChapter 15 Closing Observations 547Preview 548Strategic Brand Management Guidelines548Summary of Customer-Based Brand Equity FrameworkTactical Guidelines548550What Makes a Strong Brand?BRANDING BRIEF 1 5 - 1 :Future Brand Priorities554The Brand Report Card5555561. Fully and Accurately Factor the Consumer into the Branding EquationB R A N D I N G BRIEF 1 5 - 2 :556Reinvigorating Branding a t Procter & G a m b l e2. Go Beyond Product Performance and Rational Benefits5603. Make the Whole of the Marketing Program Greater Than the Sum of the Parts4. Understand Where You Can Take a Brand (and How)5615635. Do the "Right Thing" with Brands 5656. Take a Big Picture View of Branding Effects. Know What Is Working (and Why)Finding the Branding Sweet Spot 566Review567. Discussion QuestionsBRAND FOCUS 15.0:Notes573EpilogueIndex577575568Special Applications568566558
Guidelines 271 - Ingredient Branding 272 \ THE SCIENCE OF BRANDING 7-2: Licensing 275 Understanding Brand Alliances 273 BRANDING BRIEF 7-3:Ingredient Branding the DuPont Way 276 Guidelines 278 Celebrity Endorsement 278 Potential Problems 279 Guidelines 281 Sporting, Cultural, or Other Events 282
