CHAPTER:15

CLOSING OBSERVATIONS

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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

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Strategic Brand Management Guidelines

Summary of Customer-Based
Brand Equity Framework

Tactical Guidelines

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

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Figure 15.1 - Summary of Brand Knowledge

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Sources of Brand Equity
Dimensions of brand associations depend on three
factors:
Strength

Favorability

Uniqueness

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Figure 15.2 - Determinants of Desired Brand
Knowledge Structures

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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

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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

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Tactical Guidelines

Building Brand Equity

Measuring Brand Equity

Managing Brand Equity

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Figure 15.3 - Building Customer-Based Brand
Equity

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Figure 15.4 - Guidelines for Building Brand
Equity

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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

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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

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Figure 15.5 - Guidelines for Measuring Brand
Equity

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Figure 15.6 - Managing Customer-Based
Brand Equity

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Figure 15.6 - Managing Customer-Based
Brand Equity

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Figure 15.7 - Guidelines for Managing Brand
Equity

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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

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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

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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

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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
Ensuresthat marketing actions properly reflect the
brand equity concept

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Figure 15.8 - Seven Deadly Sins of Brand
Management

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Figure 15.9 - Future Brand Imperatives

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Figure 15.9 - Future Brand Imperatives

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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

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