kotler09imMarketing management笔记

Chapter 9: Creating Brand EquityCREATING BRAND EQUITY9 C H A P T E R LEARNING OBJECTIVESAfter reading this chapter, students should:q Know what a is brand and how branding worksq Know what is brand equityq Know how brand equity is built, measured, and managedq Know the important decisions in developing a branding strategyCHAPTER 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 brandbrand names, logos, symbols, package designs, etc.are brand elements. Brands offer a number of benefits to customers and the 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 programs; (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 are in-depth examinations of the health of a brand and can be used to set strategic direction for the brand. Tracking studies involve information collected from consumers on a routine basis over time and provide valuable tactical insights into the short-term effectiveness of marketing programs and activities. Brand audits measure “where the brand has been,” and tracking studies measure “where the brand is at 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 thus optimize the portfolio. OPENING THOUGHT This chapter will present some challenges to students new to marketing. The concept of a “brand” is discussed in depth in the chapter and because that concept is much more than a product, some students will have difficulty in understanding the total concept of a “brand.” The instructor is urged to use a number of concrete examples gleamed from the students personal experiences of what is a “brand.” The instructor is urged to spend a considerable amount of time trying to differentiate between the symbol or package, and the total “brand.” The instructor is cautioned to ensure that the concept of a “brand” has been satisfactorily understood by the students before proceeding further with the chapter material. The second challenge presented in the chapter is the fact that “brands” represent financial assets to a company and that they are valuable intangible assets that need to be managed and represents perceived differences in product performances. The instructor can use and is encouraged to use numerous examples of competing products in a category to demonstrate to the students the differences and the perceptual differences among and between like products. An in-class exercise could include asking students to mention products or services that they are loyal to and the instructor could elicit their reasons for this loyalty, compare and contrast these opinions to other students in the class to demonstrate brand loyalty and brand switching. This chapter also contains a number of definitions that the instructor is urged to define and differentiate clearly so that the students understand their definitions TEACHING STRATEGY AND CLASS ORGANIZATIONPROJECTS1. At this point in the semester, students are to have their “branding” strategy developed for their project. Questions to have been completed include the brand name, its equity position, and the decisions in developing the brand strategy. 2. In small groups (five students suggested as the maximum), have them list their favorite branded product or service (Google, Nike, or others). Based upon the information contained in this chapter, the students are to collect information, via on-campus research, on the brands brand equity based upon the Brand Asset Valuator, developed by Young and Rubicam. 3. Sonic PDA Marketing Plan Decisions about branding are critical for any marketing plan. During the planning process, marketers must consider issues related to brand strategies and brand equity. Sonics PDA is a new brand name entering the market. Sonic begins with zero brand equity. A brand is a complex symbol that can convey up to six levels of meaning: attributes benefits, values, culture, personality, and user. Sonic begins with no meaning. Jane Melody has asked you to: Suggest what Sonic 1000 with its distinctive yellow thunderbolt might mean for attributes and benefits levels of meaning. Determine what strategies and action programs should be used to build brand equity for Sonic 1000.Summarize your ideas in a written marketing plan or type them into the Marketing Mix section of Marketing Plan Pro. Also indicate in the Marketing Research section what studies you will need to support decisions about managing the brand equity for Sonic 1000.ASSIGNMENTSSmall Group Assignment1. In small groups, ask the students to conduct a small research project with students on campus regarding the students brand knowledge of a particular brand (again, the students can select their “brand” for this exercise). In their research, the students are to delineate the brands: unique brand association, the thoughts, feelings, images, experiences, and beliefs elicited by the brand. This exercise builds on the concepts of marketing research covered in Chapter 4 of this text. Important information for the students to postulate is why in their research some of the respondents held such beliefs about the brand and why others did not2. Table 9.2 displays the worlds most valuable brands in 2003 according to Business Week, August 4, 2003, pp. 6978. Students are to take these brands and in a research project, find financial, stock, and other information about these companies. Does the financial valuation metrics account for all of the “brand valuation”? On the other hand, does the presence of a strong brand provide incremental “value” to the company beyond tangible assets of the firm? Why or why not? Individual Assignments1. Figure 9.3 illustrates secondary sources of brand knowledge. Selecting the brand of their choice, students should attempt to illustrate the secondary sources of their brand knowledge by using Figure 9.3 as a guide. Specifically, students should delineate all of these elements and show how these secondary sources affect/effect/impact their brand perceptions. 2. In Seth Godins book, Permission Marketing: Turning Strangers into Friends, and Friends into Customers, New York: Simon & Schuster, 1999, he lists five steps in developing effective permission marketing. After reading, Mr. Godins book, comment on whether or not you believe that “permission marketing” will work for all products and services in the future. Specifically, explore whether or not the proliferation of “permission marketing” will wear out its effectiveness, similar to the experiences of spam, “pop-ups,” and other forms of customer specific marketing techniques. Think-Pair-Share1. From a reading of Scott Bedburys book, A New Brand World, Viking Press, 2002, students are to comment on the appropriateness of his eight branding principles to the future of marketing. Specifically, is Mr. Bedbury principles “on target,” applicable to all brands, or just too emerging brands? If you were asked to implement Mr. Bedburys principles to the “branding” of an existing product (say your school or university), how and what would you change in order to follow these principles? 2. The Web site lists a number of articles and books about branding products today. Assign students the objective of reading four articles from the Web site and commenting in class about the information contained in the articles and what new information about branding they learned. MARKETING TODAYCLASS DISCUSSION TOPICSRetailer Kmart is in the process of revitalizing itself after coming out of bankruptcy. Kmart sells a number of “exclusive” brands that the firm is using/has used to create brand equity by linking their brand (Kmart) to other brand features. Comment on whether or not this strategy is working, has worked to rebuild the “brand” Kmart, or is working at all. How would you rate the brand Kmart in terms of the brand valuation criteria presented in this chapter? END-OF-CHAPTER SUPPORT MARKETING DEBATEAre Line Extensions Good or Bad? Some critics vigorously denounce the practice of brand extensions, as they feel that too often companies lose focus and consumer become confused. Other experts maintain that brand extensions are a critical growth strategy and source of revenue for the firm. Take a position: Line extensions can endanger brands versus line extensions are an important brand growth strategy. Pro: In todays crowded world of products and services, the choices available to consumers can sometimes be overwhelming. Marketers with strong brand identities and positions can help consumers narrow their choices by the use of brand extensions. Brand extensions help marketers quickly gain retailer acceptance of their new products and provide the consumer with the “confidence and familiarity” of the parent brand. From the production, distribution, manufacturing, and marketing communications side of the equations, brand extensions allow the marketer to maximize economies of scale in these areas. Additionally, brand extensions can benefit the parent brand by catering to new markets, new users, or previous users that had “dropped” using the product for various reasonscreating incremental sales to the parent brand. Finally, the cost of developing a new brand from scratch, in terms of dollar and time, has become so high that it is virtually impossible for many firms to consider such an option. Con: The proliferation of brand extensions can cause the parent brand to lose its identity and individuality with the consumer thus eroding brand equity for the parent brand over the long haul. When brand extensions fail, the failures of the extensions could impact the parent brand simply by association. Cannibalization of the parent brand for the extension if not pre-emptive could erode profits as consumers switch to a less profitable line extension. Finally, a marketer loses the opportunity to build a new brand with a new image and equity by the use of brand extensions. The cost of time and money needed to develop a new brand can, if done correctly, pays off in the end for both the consumer and the firm. MARKETING DISCUSSIONDescriptive versus Behavioral Market Segmentation SchemesHow can you relate the different models of brand equity presented in the chapter? How are they similar? How are they different? Can you construct a brand equity model that incorporates the best aspects of each model? Suggested Response:Brand equity depends on three main factors: the initial choice for the brand elements or identities making up the brand, the way the brand is integrated into the supporting marketing programs; the associations indirectly transferred to the brand by linking the brand to some other entity. Brand equity needs to be measured and managed well. Branding strategy identifies which brand elements a firm chooses to apply across the various products it sells. Brands play a number of roles within a brand portfolio: expand coverage, provide protection, extend an image, or fulfill a variety of other roles as dictated by the firms strategy. Their similarity rests in their execution and the overall strategic direction of the firm. Their differences lie in the “role” designated for each brand. As long as the firm identifies and maintains a consistent “role” for each of its brands, the brand portfolio will and can maximize coverage and minimize brand interactions and overlaps. If the firm does not maintain a consistent “role” for each brand it runs the risk of destroying brand integrity. A brand equity model that incorporates the best aspects of each model becomes the challenge and the “art” of marketing. In such a model, each brand contains its own identity, has an integrated marketing program designed around such identity, and has the associations consistent with its identity. Additionally, the brand has a strategy that defines its positioning within the market and the firm, has a strategy that has defined its “role” within the corporate structure with a well-defined positioning statement, and maximizes coverage with minimal brand interference and cannibalization of other corporate brands. MARKETING SPOTLIGHTProcter & GambleDiscussion Questions:1) What have been the key success factors for Procter & Gamble? a. The key success factors for P&G have been in the areas of: customer knowledge, long-term outlook, product innovations, quality strategy, line-extension strategy, brand-extension strategy, multibrand strategy, heavy advertising and media pioneer, aggressive sales force, effective sales promotions, competitive toughness, manufacturing efficiency and cost cutting, and the brand-management system. 2) Where is Procter & Gamble vulnerable?a. Continuing to excel at and in all of these areas simultaneously and competitive threats from new emerging markets and/companies3) What should they watch out for?a. Rapid changes to their target markets (demographic changes, psychological changes, etc.) The rapidly emerging customer buying changes and the degradation of their brands4) What recommendations would you make to Procter & Gambles senior marketing executives going forward? a. Do not get complacent or overly comfortable with their successes. Continue best practices but do not overlook new smaller emerging marketing opportunities. 5) What should they be sure to do with their marketing? a. Continue to build brands through the brand management system perfected by them. Avoid temptation to rely on past consumer “capital” by not re-investing in new products or product improvements for the brands they manufacturer. Continuously, review and explore changes in consumer buying habits and practices. DETAILED CHAPTER OUTLINE Building a strong brand requires careful planning and a great deal of long-term investment. At the heart of a successful brand is a great product or service, backed by creatively designed and executed marketing. Perhaps the most distinctive shill of professional marketers is their ability to create, maintain, enhance, and protect brands. Strategic brand management involves the design and implementation of marketing activities and programs to build, measure, and manage brands to maximize their value. The strategic brand management process involves four main steps: Identifying and establishing brand positioning. Planning and implementing brand marketing. Measuring and interpreting brand performance. Growing and sustaining brand value. Review Key Definition here: strategic brand managementWHAT IS BRAND EQUITY? The American Marketing Association defines a brand as “a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.” A) A brand is thus a product or service that adds dimensions that differentiate it in some way from other products or services designed to satisfy the same need. B) These differences may be functional, rational, or tangible-related to the product performance of the brand.C) They may also be more symbolic, emotional, or intangible-related to what the brand represents.The Role of Brands Brands identify the source or maker of a product and allow consumers to assign responsibility to a particular manufacturer or distributor. A) Consumers learn about brands through past experiences with the product and its marketing program.B) Brands perform valuable functions for the firm. C) Brands can signal a certain level of quality so that satisfied buyers can easily choose the product again.D) Brand loyalty provides predictability and security of demand for the firm and creates barriers to entry for other firms.E) Branding can be seen as a powerful means to secure a competitive advantage F) To firms, brands thus represent enormously valuable pieces of legal property that can influence consumer behavior, be bought and sold, and provide the security of sustained future revenues to their owner. Review Key Definitions here: brands and brand identity The Scope Of Branding How then do you “brand” a product? A brand is a perceptual entity that is rooted in reality but reflects the perceptions and perhaps even the idiosyncrasies of consumers.A) Branding is endowing products and services with the power of a brand. B) Branding is all about creating differences.C) To brand a product, it is necessary to teach consumers “who” the product is, “what” the product does, and “why” consumers should care.D) Branding involves creating mental structures and helping consumers organize their knowledge about products and services in a way that clarifies their decision-making and provides value to the firm.E) For branding strategies to be successful and brand value to be created, consumers must be convinced that there are meaningful differences among brands in the product or service category.F) The key to branding is that consumer must not think that all brands in the category are the same.G) Brand differences often are related to attributes or benefits of the product itself.H) Branding can be applied virtually anywhere a consumer has a choice. Review Key Definition here: brandingDefining Brand Equity Brand equity is the added value endowed to products and services. A) This value may be reflected in how consumers, think, feel, and act with respect to the brand as well as the prices, market share, and profitability that the brand commands for the firm.B) Brand equity is an important intangible asset to the firm that has psychological and financial value.C) Marketers and researchers use various perspectives to study brand equity. D) Customer-based brand equity can be defined as the differential effect that brand knowledge has on consumer response to the marketing of that brand.E) A brand is said to have positive customer-based brand equity when consumers. react more favorable to a product and the way it is marketed when the brand is identified as compared to when