Challenges of Brand Management
48 7965 Week 1 Reading: pp.29-61 Keller
• Explain the course objectives and expectations • Explain the purpose of the brand equity project • Discuss the function and importance of a brand from both a corporate and customer perspective • Discuss the challenges and opportunities facing brand managers • Evaluate definitions of the brand and the brand equity concept • Outline the strategic brand management process
Item % of Mark Allocation Group/Individual Max mark Due date
Brand Equity Project
Each week before class
TBA see AUTonline for details
Allocate your time
• This paper runs for 12 weeks and classes are scheduled for 3 hours per week consisting of 2 hours in class and 1 hour online learning. You should anticipate spending a total of 150 hours on this paper over the semester. This table helps you allocate your time: Activity Class contact AUTonline activities Chapter pre-reading, independent study/research Assessment preparation/production Total % breakdown 30 30 40 100
• • • • • •
– Earn marks as you go – Completing 1 online activity contributes 1.5 mark to your final grade – Full completion represents 30% of the marks needed simply to pass – Correlation of r = 0.5 between AUT online grade and final exam mark – Full completion will lift your grade by 3 grades compared to completing nothing. – i.e. C+ to B+ 6
Brand Equity Project brands
Marmite: Students with surnames A to G
Vegemite: Students with surnames Q to Z
Nutella: Students surnames with H to P
• A brand is a name, term, sign, symbol, or design which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. Source: AMA • “A mixture of tangible and intangible attributes symbolised in a
What is a Brand?
trademark, which, if properly managed, creates influence and generates value”. Source: Interbrand
• A set of assets and liabilities linked to a brand’s name and symbol
that adds to or subtracts from the value provided by a product or service to a firms and or that firm’s customers Source : D.A. Aaker in the marketing of a product or service because of its brand name, as compared to if the same product or service did not have that name. Source: Keller 8
• Brand equity relates to the fact that different outcomes result
Can anything be branded?
commodity hi-tech services retailers distributors people organisations sports arts entertainment geographic locations ideas
What s the difference between the brand and a product?
Why do Brands Matter to customers?
• • • • • • • Identify product Identify a culture Reduce risk Reduce search costs Signal quality Create product associations Differentiate product 10
Why do brands matter to firms?
• • • • • • • • identification legal protection signal quality means of creating unique associations competitive advantage financial returns customer loyalty extension possibilities
Interbrand Top 100 Portfolio MSCI World Index S&P 500 Index 12
Interbrand:Top global brands 2011
A decade+ of best global brands
Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 2000 Coca-Cola Microsoft IBM Intel Nokia GE Ford Disney McDonald’s AT&T Marlboro Mercedes-Benz Hewlett-Packard IBM Microsoft Google GE McDonald’s Intel Apple Disney HP Toyota Mercedes-Benz Cisco 16
Is market leadership forever?
• Research by Golder (2000) compared brand leaders in 1923 with those in 1997: – Only 23% brands remained as leaders and 28% had failed – food & beverage brands were more stable only 39% remained – fashion & clothing a huge 67%...
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