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STRATEGIC BRAND MANAGEMENTBUILDING, MEASURING, AND MANAGING BRAND EQUITY Kevin Lane Keller Amos Tuck School of Business Dartmouth College What is a Brand? 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. New Branding Challenges Brands are important as ever Consumer need for simplification Consumer need for risk reduction Brand management is as difficult as ever Savvy consumers Increased competition Decreased effectiveness of traditional marketing tools and emergence of new marketing tools Complex brand and product portfolios The Customer/Brand Challenge In this difficult environment, marketers must have a keen understanding of: customers brands the relationship between the two The Concept of Brand Equity The brand equity concept stresses the importance of the brand in marketing strategies. Brand equity is defined in terms of the marketing effects uniquely attributable to the brand. Brand equity relates to the fact that different outcomes result 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. The Concept of Customer-Based Brand Equity Customer-based brand equity Differential effect Customer brand knowledge Customer response to brand marketing Determinants of Customer-Based Brand Equity Customer is aware of and familiar with the brand Customer holds some strong, favorable, and unique brand associations in memory Building Customer-Based Brand Equity Brand knowledge structures depend on . . . The initial choices for the brand elements The supporting marketing program and the manner by which the brand is integrated into it Other associations indirectly transferred to the brand by linking it to some other entities Benefits of Customer-Based Brand Equity Enjoy greater brand loyalty, usage, and affinity Command larger price premiums Receiv
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