Brand Management

Dr. Kashif Mahmood

 CHAPTER 8
DEVELOPING A BRAND EQUITY
MEASUREMENT AND
MANAGEMENT SYSTEM
The New Accountability
• Virtually every marketing dollar
spent today must be justified as
both effective and efficient in terms
of “return of marketing investment”
(ROMI).

8.3
Truth !!
• Hardly any marketing professional who is not
worried about what return will a specific campaign
bring about.
• Some observers believe that up to 70% (or even
more) of marketing expenditures may be devoted to
programs and activities that cannot be linked to
short-term incremental profits, but yet can be seen as
improving brand equity.

8.4
8.5
The Brand Value Chain

• Broader perspective than just the CBBE model

• The brand value chain is a structured approach to assessing
the sources and outcomes of brand equity
• Which marketing activities create brand value?

8.6
8.7
The Brand Value Chain

8.8
Value Stages
• Marketing program investment
• Any marketing program that can
be attributed to brand value
development
• Customer mindset
• In what way have customers
been changed as a result of the
marketing program?

8.9
Value Stages

• Market performance
• How do customers respond
in the marketplace?
• Shareholder value

8.10
Multipliers

• Program quality
multiplier
• The ability of the
marketing program to
affect customer mindset
• Must be clear, relevant,
distinct, and consistent

8.11
Program quality multiplier
 Clarity
Did consumers understand the marketing program?
Do consumers properly interpret and evaluate its meaning?

 Relevance
Is the marketing program meaningful to the consumer?
Do consumers feel the brand is one they should seriously consider?

 Distinctiveness
How unique is the marketing program?
How creative or differentiating it is?

 Consistency
How well integrated is the marketing program? Is the brand evolving in the right 8.12
direction?
Multipliers

• Customer multiplier
• The extent to which
value created in the
minds of customers
affects market
performance
• It depends on factors
such as competitive
reactions, channel
support, and customer
size and profile 8.13
• Competitive reactions
• How effective are the marketing investments of competing brands?
• How strongly have competitors affected customer mindset?
• Are their brand equity stronger?
• Channel and other intermediary support
• How much selling effort is being put forth by various channel partners?
• Are retailers helping to sell your brand?
• Are distributors motivated to lift your product? Channel conflict?
• Customer size and profile
• How many and what types of customers are attracted to the brand?
• Are they profitable? (toothpaste being launched under magic when only 2% of
the consumers every year shift from toothpowder category to toothpaste).

8.14
Multipliers
• Market multiplier
• The extent to which the
value generated through
brand market performance
is manifested in
shareholder value
• It depends on factors such
as market dynamics,
growth potential, risk
profile, and brand
contribution 8.15
 Market dynamics
 Dynamics of financial market (Investors sentiment)

 Growth potential
 Prospect of the brand, prospect of the industry, Analyze the
micro/microenvironment. (External Opportunities).

 Risk profile
 Risk profile for the brand? (External threats).

 Brand contribution
 How important is the brand as part of the firms brand portfolio?

8.16
Brand Audit
• Externally, consumer-focused assessment
• A comprehensive examination of a brand involving activities to
assess the health of the brand, uncover its sources of equity, and
suggest ways to improve and leverage that equity
• It includes brand vision, mission, promise, values, position,
personality, and performance

3.17
 Importance of Brand Audits
• Understand sources of brand equity
• Firm perspective
• Consumer perspective
• Set strategic direction for the brand
• Recommend marketing programs to maximize long-term brand
equity

3.18
DOMINO’S
PIZZA
 Brand Audit Steps
• Brand inventory (supply side)

• Brand exploratory (demand side)

3.20
 Brand Inventory
• Profiling each product or service requires marketers to catalogue the
following in both visual and written form for each product or service sold:
the names, logos, symbols, characters, packaging, slogans, or other
trademarks used; the inherent product attributes or characteristics of the
brand; the pricing, communications, and distribution policies; and any
other relevant marketing activity related to the brand.
• A current comprehensive profile of how all the products and services sold
by a company are branded and marketed:
• Brand elements
• Supporting marketing programs
• Profile of competitive brands
• POPs and PODs
• Brand mantra
3.21
 Brand Inventory Rationale
• Suggests the bases for positioning the brand
• Offers insights to how brand equity may be better managed
• Assesses consistency in message among activities, brand
extensions, and sub-brands in order to avoid redundancies,
overlaps, and consumer confusion

3.22
 Brand Exploratory
• The brand exploratory is research directed to understanding what
consumers think and feel about the brand and act toward it in
order to better understand sources of brand equity as well as any
possible barriers.
• Provides detailed information as to how consumers perceive the
brand:
• Awareness
• Favorability
• Uniqueness of associations
• Helps identify sources of customer-based brand equity
• Uncovers knowledge structures for the core brand as well as its
competitors 3.23
Brand Positioning and the Supporting
Marketing Program
• The brand exploratory should uncover the current knowledge structures
for the core brand and its competitors, as well as determining the desired
brand awareness and brand image and points-of-parity and points-of-
difference.
• Moving from the current brand image to the desired brand image typically
means adding new associations, strengthening existing ones, or weakening
or eliminating undesirable ones in the minds of consumers
Important Considerations
• What customers currently believe about the brand (and thus find credible)
• What customers will value in the brand
• What the firm is currently saying about the brand
• Where the firm would like to take the brand
The Role of Brand Personas
Brand Equity Measurement System

• A set of research procedures that is designed to provide timely,

accurate, and actionable information for marketers
• We need to make the best possible tactical decisions in the short
run and strategic decisions in the long run

8.26
Brand Equity Measurement System
• Conducting brand audits
• Developing tracking procedures
• Designing a brand equity management system

8.27
Designing Brand Tracking Studies
• Tracking studies involve information collected from consumers
on a routine basis over time
• Often done on a “continuous” basis
• Provide descriptive and diagnostic information

8.28
What to Track
• Customize tracking surveys to address the specific issues faced
by the brand
• Product-brand tracking
• Corporate or family brand tracking
• Global tracking

8.29
Sample Brand Tracking Survey
How to Conduct Tracking Studies
• Who to track (target market)
• When and where to track (how frequently)
• How to interpret brand tracking

8.31
MILLWARD BROWN
Brand Equity Management System
• A brand equity management system is a set of organizational
processes designed to improve the understanding and use of
the brand equity concept within a firm:
• Brand equity charter
• Brand equity report
• Brand equity responsibilities

8.33
Understanding and Managing the
Mayo Clinic Brand
Brand Equity Charter
• Provides general guidelines to marketing managers
within the company as well as key marketing partners
outside the company
• Company view of brand equity into a formal
document.
• Should be updated annually

8.35
Brand Equity Charter Components
• Define the firm’s view of the brand equity
• Describe the scope of the key brands
• Specify actual and desired equity for the brand
• Explain how brand equity is measured
• Suggest how brand equity should be measured
• Outline how marketing programs should be devised
• Specify the proper treatment for the brand in terms of
trademark usage, packaging, and communication
8.36
Skype
Brand Equity Charter with Kool
History of the brand/key events: how the brand has
evolved; how it was repositioned, and key events?

After
Shaving Body
shave
cream spray
range

8.38
 Brand Equity Charter with Kool
•The brand vision
• The “complete male grooming solution” that gives the leap
to an “attractive man” and
• Be a entry barrier for other companies in the male
grooming category.

8.39
 Brand Kool in next 3 years
DNA
Get Noticed

Manly Fragrance

Shaving line After Shave Line Hygiene Line

Beard Softner Manly Fragrance Manly Fragrance

• Kool Shaving Cream

• Kool After Shave Lotion • Kool Deo Body Spray
• Monsoon
• Antiseptic •
• Frosty Blue, Citrus, Saint, Original
• Kool After Shave Moisture Gel • Kool Deo Talc - Original
• Saloon
• Moisture • Kool Deo Soap
• Kool Shaving Foam
• Kool After Shave Fairness Cream •
• Ultra Glide Blue, Citrus, Saint, Original
• Fairness
• Extreme Comfort
8.40
• Kool Shaving Gel
8.41
Brand Equity Report

• Assembles the results of the tracking survey and other relevant

performance measures
• To be developed monthly, quarterly, or annually
• Provides descriptive information as to what is happening with
the brand as well as diagnostic information on why it is
happening

8.42
Brand Equity Responsibilities
• Organizational responsibilities and processes that aim to
maximize long-term brand equity
• Establish position of Director of Equity Management
to oversee implementation of Brand Equity Charter
and Reports
• Ensure that, as much as possible, marketing of the brand is
done in a way that reflects the spirit of the charter and the
substance of the report

8.43
Maximizing Internal Branding
How Good Is Your Marketing? Rating a
Firm’s Marketing Assessment System
Rolex Brand Audit