Chapter 2: Detailed Outline

I. Desired Outcomes of Marcom Efforts
     1. Enhance brand equity and to affect behavior
     2. Demonstrate financial accountability
II. The Concept of Brand Equity
     • A brand:
     “A name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and differentiate them from those of competition”.
     • Brand equity:
     - A brand possesses equity when consumers believe the brands have the ability and willingness to deliver on their brand promises.
     - Brand equity’s definition differs depending on the perspective: firm-based or customer-based
          1. A Firm-Based Perspective on Brand Equity
               a. Increase market share
               b. Increase brand loyalty
               c. Being able to charge premium prices
               d. Earning revenue premium
          2. A Customer-Based Perspective on Brand Equity
               - Store in their collective mind favorable, strong and unique brand associations
               a. Brand Awareness
                    - Whether the brand name comes to the mind or not
                    - The pyramid of brand awareness goes with: unawareness of the brand at the bottom, followed by brand recognition, then brand recall and at the top TOMA (top of mind).
               b. Brand Image
                    Types of associations that come to the consumer’s mind when contemplating a particular brand, and these are:
                         • Sincerity: down to Earth, honest, wholesome and cheerful.
                         • Excitement: daring, spirited, imaginative, up-to-date
                         • Competence: reliable, intelligent and successful
                         • Sophistication: upper-class and charming
                         • Ruggedness: tough and outdoorsy
          3. How Can Brand Equity Be Enhanced?
               a. Initial choice of (+) brand identity
               b. A good brand name and logo, forging favorable, strong and unique associations
               c. Effective integration of all communication tools
          4. What Benefits Result from Enhancing Brand Equity?
               a. Increasing purchases
               b. Increasing brand loyalty
          5. Characteristics of World-Class Brands (10)
               a. The brand excels at delivering the benefits customers truly desire
               b. The brand stays relevant
               c. The pricing system is based on consumers’ perceptions of value
               d. The brand is properly positioned
               e. The brand is consistent
               f. The brand portfolio and hierarchy make sense
               g. The brand makes use of and coordinates a full repertoire of marketing activities to build equity
               h. The brand’s managers understand what the brand means to consumers
               i. The brand is given proper support, and the support is sustained over the long run
               j. The company monitors sources of brand equity