Updated 201701
BRAND
MANAGEMENT
(BBCT 3033)
LESSON 10
BRAND STRATEGIC MANAGEMENT
Strategic brand management
Strategic brand management includes the design and
implementation of marketing programs and activities to build,
measure, and manage brand equity.
Sources of Brand Equity
Strength - Function of both the amount, or quantity, of processing that information initially
receives, and the nature, or quality, of the processing.
Favorability - Favorable associations for a brand are those that are desirable to customers,
successfully delivered by the product, and conveyed by the supporting marketing program.
Uniqueness - To create the differential response that leads to customer-based brand equity,
marketers need to associate unique, meaningful points-of-difference to the brand that provide a
competitive advantage and a reason for consumers to buy it.
Branding Imperatives (importance)
1. Fully and accurately factor the consumer into the branding equation
2. Go beyond product performance and rational benefits
3. Make the whole of the marketing program greater than the sum of the parts
4. Understand where you can take a brand (and how)
5. Do the “right thing” with brands
6. Take a big picture view of branding effects. Know what is working (and why)
Fully and accurately factor the consumer
into the branding equation
Successful brands create mental structures and knowledge in consumers’ minds that cause them
to favor the brand.
Consumer insights are used to skillfully manage customers and brands and to maximize brand
equity and customer equity.
Customer diversity - Due to customer diversity and increasing segmentation, concepts such as
permission marketing, one-to-one marketing, and brand journalism are being introduced.
Customer empowerment - The emergence of the Internet and social media have given
consumers the ability, to seek information and arrive at preferred choices about products,
services, and brands.
Go beyond product performance and rational benefits
Competitive advantages and brand strength will come from having better-
designed products and services than competitors, providing a wider range of
compelling consumer benefits as a result.
Make the whole of the marketing program greater than
the sum of the parts
The art and science of integrated marketing is to optimally design and implement any one
channel or communication activity so that it creates not only direct effects, but also indirect
effects that increase the impact of other channel or communication options.
Social media - An online, interactive communications programs typically includes some or all of
the following: a well-designed Web site; e-mails; banner, rich media, or other forms of electronic
ads; search advertising; and social media.
Understand where you can take a brand (and how)
Growth requires a well implemented brand architecture strategy that clarifies three key issues:
◦ The potential of a brand in terms of the breadth of its “market footprint”.
◦ The types of product and service extensions that would allow a brand to achieve that potential.
◦ The brand elements, positioning, and images that identify and are associated with all the offerings of a brand
in different markets and to different consumers.
Do the “right thing” with brands
Cause marketing - Effective cause marketing programs can accomplish a number of objectives for
a brand: build brand awareness, enhance brand image, establish brand credibility, evoke brand
feelings, create a sense of brand community, and elicit brand engagement.
Protecting brand equity - Brands are allowed to profitably grow while preserving close bonds
with consumers and benefits to society as a whole.
Take a big picture view of branding effects.
Know what is working (and why)
Justifying brand investments - Any particular marketing activity may increase the breadth or
depth of brand awareness; establish or strengthen performance-related or imagery-related
brand associations; elicit positive judgments or feelings; create stronger ties or bonds with the
brand; initiate brand-related actions such as search, word-of-mouth, and purchase.
◦ Its effects may be enduring as well as short-term.
Achieving deeper brand understanding - The stronger the brand, the more power brand
marketers have with distributors and retailers, and the easier it is to implement marketplace
programs to capitalize on brand equity.
◦ Extracting proper price premiums that reflect the value of the brand—and not over or underpricing—is
one of the most critical financial considerations for branding.
