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I

Strategic Brand Management

Building, Measuring, and Managing Brand Equity

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Strategic Brand Management

Building, Measuring, and Managing Brand Equity

Kevin Lane Keller Tuck School of Business

Dartmouth College

4e

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Library of Congress Cataloging-in-Publication Data

Keller, Kevin Lane, 1956- Strategic brand management : building, measuring, and managing brand equity / Kevin Lane Keller.—4th ed. p. cm. ISBN 978-0-13-266425-7 (hbk.) 1. Brand name products—Management. I. Title.

HD69.B7K45 2013 658.8'27—dc23

2012024141 10 9 8 7 6 5 4 3 2 1

ISBN 10: 0-13-266425-9

ISBN 13: 978-0-13-266425-7

Dedication This book is dedicated to

my mother and the memory of my father with much love, respect, and admiration.

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PART I Opening Perspectives 1 Chapter 1 Brands and Brand Management 1

PART II Developing a Brand Strategy 39 Chapter 2 Customer-Based Brand Equity and Brand Positioning 39 Chapter 3 Brand Resonance and the Brand Value Chain 78

PART III Designing and Implementing Brand Marketing Programs 113 Chapter 4 Choosing Brand Elements to Build Brand Equity 113 Chapter 5 Designing Marketing Programs to Build Brand Equity 149 Chapter 6 Integrating Marketing Communications to Build Brand Equity 189 Chapter 7 Leveraging Secondary Brand Associations to Build Brand Equity 231

PART IV Measuring and Interpreting Brand Performance 263 Chapter 8 Developing a Brand Equity Measurement and Management System 263 Chapter 9 Measuring Sources of Brand Equity: Capturing Customer Mind-Set 296 Chapter 10 Measuring Outcomes of Brand Equity: Capturing Market Performance 334

PART V Growing and Sustaining Brand Equity 357 Chapter 11 Designing and Implementing Branding Architecture Strategies 357 Chapter 12 Introducing and Naming New Products and Brand Extensions 403 Chapter 13 Managing Brands Over Time 449 Chapter 14 Managing Brands Over Geographic Boundaries and Market Segments 481

PART VI Closing Perspectives 519 Chapter 15 Closing Observations 519

Brief Contents

VII

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Contents

Prologue: Branding Is Not Rocket Science xix

Preface xxi

Acknowledgments xxvii

About the Author xxviii

PART I Opening Perspectives 1 Chapter 1 Brands and Brand Management 1

Preview 2

What Is a Brand? 2 Brand Elements 2 Brands versus Products 3

BRANDING BRIEF 1-1: Coca-Cola’s Branding Lesson 4

Why Do Brands Matter? 6 Consumers 6 Firms 7

Can Anything Be Branded? 8 Physical Goods 9

BRANDING BRIEF 1-2: Branding Commodities 10

THE SCIENCE OF BRANDING 1-1: Understanding Business-to-Business Branding 12

THE SCIENCE OF BRANDING 1-2: Understanding High-Tech Branding 13 Services 14 Retailers and Distributors 15 Online Products and Services 15 People and Organizations 17 Sports, Arts, and Entertainment 18

BRANDING BRIEF 1-3: Place Branding 20 Geographic Locations 20 Ideas and Causes 20

What Are the Strongest Brands? 20

THE SCIENCE OF BRANDING 1-3: Understanding Market Leadership 22

Branding Challenges and Opportunities 24 Savvy Customers 24 Economic Downturns 26 Brand Proliferation 26

THE SCIENCE OF BRANDING 1-4: Marketing Brands in a Recession 27 Media Transformation 27 Increased Competition 28 Increased Costs 28 Greater Accountability 28

The Brand Equity Concept 29

IX

X CONTENTS

Strategic Brand Management Process 30 Identifying and Developing Brand Plans 30 Designing and Implementing Brand Marketing Programs 30 Measuring and Interpreting Brand Performance 32 Growing and Sustaining Brand Equity 32

Review 33

Discussion Questions 33

BRAND FOCUS 1.0: History of Branding 33

Notes 36

PART II Developing a Brand Strategy 39 Chapter 2 Customer-Based Brand Equity and Brand Positioning 39

Preview 40

Customer-Based Brand Equity 40 Defining Customer-Based Brand Equity 40 Brand Equity as a Bridge 42

Making a Brand Strong: Brand Knowledge 43

THE SCIENCE OF BRANDING 2-1: Brand Critics 44

Sources of Brand Equity 45 Brand Awareness 45 Brand Image 48

Identifying and Establishing Brand Positioning 51 Basic Concepts 51 Target Market 51 Nature of Competition 53 Points-of-Parity and Points-of-Difference 54

Positioning Guidelines 57 Defining and Communicating the Competitive Frame of Reference 57 Choosing Points-of-Difference 59 Establishing Points-of-Parity and Points-of-Difference 60

BRANDING BRIEF 2-1: Positioning Politicians 61 Straddle Positions 62 Updating Positioning over Time 63 Developing a Good Positioning 65

Defining a Brand Mantra 65 Brand Mantras 65

BRANDING BRIEF 2-2: Nike Brand Mantra 66

BRANDING BRIEF 2-3: Disney Brand Mantra 67

THE SCIENCE OF BRANDING 2-2: Branding Inside the Organization 69

Review 69

Discussion Questions 70

BRAND FOCUS 2.0: The Marketing Advantages of Strong Brands 70

Notes 72

Chapter 3 Brand Resonance and the Brand Value Chain 78 Preview 79

Building a Strong Brand: The Four Steps of Brand Building 79 Brand Salience 79 Brand Performance 83 Brand Imagery 85

CONTENTS XI

THE SCIENCE OF BRANDING 3-1: Luxury Branding 86 Brand Judgments 89 Brand Feelings 90 Brand Resonance 92 BRANDING BRIEF 3-1: Building Brand Communities 94 Brand-Building Implications 94

THE SCIENCE OF BRANDING 3-2: Putting Customers First 98

The Brand Value Chain 100 Value Stages 101 Implications 103

Review 104

Discussion Questions 106

BRAND FOCUS 3.0: Creating Customer Value 106 Customer Equity 106

Notes 110

PART III Designing and Implementing Brand Marketing Programs 113 Chapter 4 Choosing Brand Elements to Build Brand Equity 113

Preview 114

Criteria for Choosing Brand Elements 114 Memorability 115 Meaningfulness 115 Likability 115 Transferability 116 Adaptability 116

THE SCIENCE OF BRANDING 4-1: Counterfeit Business Is Booming 118 Protectability 119

Options and Tactics for Brand Elements 119 Brand Names 119 URLs 127 Logos and Symbols 127 Characters 128 Slogans 130

BRANDING BRIEF 4-1: Updating Betty Crocker 131

THE SCIENCE OF BRANDING 4-2: Balance Creative and Strategic Thinking to Create Great Characters 132

BRANDING BRIEF 4-2: Benetton’s Brand Equity Management 134 Jingles 136 Packaging 136

Putting It All Together 139

BRANDING BRIEF 4-3: Do-Overs with Brand Makeovers 140

THE SCIENCE OF BRANDING 4-3: The Psychology of Packaging 141

Review 142

Discussion Questions 143

BRAND FOCUS 4.0: Legal Branding Considerations 143

Notes 145

Chapter 5 Designing Marketing Programs to Build Brand Equity 149 Preview 150

New Perspectives on Marketing 150

XII CONTENTS

Integrating Marketing 151 Personalizing Marketing 153

THE SCIENCE OF BRANDING 5-1: Making Sense Out of Brand Scents 155 Reconciling the Different Marketing Approaches 158

Product Strategy 159 Perceived Quality 159 Aftermarketing 159 Summary 162

Pricing Strategy 163 Consumer Price Perceptions 163

THE SCIENCE OF BRANDING 5-2: Understanding Consumer Price Perceptions 164 Setting Prices to Build Brand Equity 165

BRANDING BRIEF 5-1: Marlboro’s Price Drop 165 Summary 171

Channel Strategy 171 Channel Design 171 Indirect Channels 173 Direct Channels 177

BRANDING BRIEF 5-2: Goodyear’s Partnering Lessons 178 Online Strategies 180 Summary 180

Review 181

Discussion Questions 181

BRAND FOCUS 5.0: Private-Label Strategies and Responses 182

Notes 184

Chapter 6 Integrating Marketing Communications to Build Brand Equity 189 Preview 190

The New Media Environment 191 Challenges in Designing Brand-Building Communications 191 Role of Multiple Communications 193

Four Major Marketing Communication Options 193 Advertising 193

THE SCIENCE OF BRANDING 6-1: The Importance of Database Marketing 201 Promotion 204 Online Marketing Communications 208 Events and Experiences 211

BRANDING BRIEF 6-1: Brand Building via the X Games 214 Mobile Marketing 216

Brand Amplifiers 218 Public Relations and Publicity 218 Word-of-Mouth 218

Developing Integrated Marketing Communication Programs 219 Criteria for IMC Programs 220 Using IMC Choice Criteria 222

THE SCIENCE OF BRANDING 6-2: Coordinating Media to Build Brand Equity 223

Review 224

Discussion Questions 225

BRAND FOCUS 6.0: Empirical Generalizations in Advertising 226

Notes 227

CONTENTS XIII

Chapter 7 Leveraging Secondary Brand Associations to Build Brand Equity 231 Preview 232

Conceptualizing the Leveraging Process 233 Creation of New Brand Associations 233 Effects on Existing Brand Knowledge 233 Guidelines 234

Company 235

BRANDING BRIEF 7-1: IBM Promotes a Smarter Planet 236

Country of Origin and Other Geographic Areas 238

BRANDING BRIEF 7-2: Selling Brands the New Zealand Way 240

Channels of Distribution 241

Co-Branding 241

THE SCIENCE OF BRANDING 7-1: Understanding Retailers’ Brand Images 242 Guidelines 243 Ingredient Branding 244

THE SCIENCE OF BRANDING 7-2: Understanding Brand Alliances 245

Licensing 247

BRANDING BRIEF 7-3: Ingredient Branding the DuPont Way 248 Guidelines 250

Celebrity Endorsement 250 Potential Problems 251 Guidelines 253

Sporting, Cultural, or Other Events 254

BRANDING BRIEF 7-4: Managing a Person Brand 255

Third-Party Sources 256

Review 257

Discussion Questions 258

BRAND FOCUS 7.0: Going for Corporate Gold at the Olympics 258

Notes 260

PART IV Measuring and Interpreting Brand Performance 263 Chapter 8 Developing a Brand Equity Measurement and

Management System 263 Preview 264

The New Accountability 264

Conducting Brand Audits 265 Brand Inventory 266 Brand Exploratory 267 Brand Positioning and the Supporting Marketing Program 270

THE SCIENCE OF BRANDING 8-1: The Role of Brand Personas 271

Designing Brand Tracking Studies 272 What to Track 272

BRANDING BRIEF 8-1: Sample Brand Tracking Survey 273 How to Conduct Tracking Studies 275 How to Interpret Tracking Studies 277

XIV CONTENTS

Establishing a Brand Equity Management System 277

BRANDING BRIEF 8-2: Understanding and Managing the Mayo Clinic Brand 278 Brand Charter 279 Brand Equity Report 280 Brand Equity Responsibilities 281

THE SCIENCE OF BRANDING 8-2: Maximizing Internal Branding 282

BRANDING BRIEF 8-3: How Good Is Your Marketing? Rating a Firm’s Marketing Assessment System 284

Review 286

Discussion Questions 287

BRAND FOCUS 8.0: Rolex Brand Audit 287

Notes 294

Chapter 9 Measuring Sources of Brand Equity: Capturing Customer Mind-Set 296 Preview 297

Qualitative Research Techniques 297

BRANDING BRIEF 9-1: Digging Beneath the Surface to Understand Consumer Behavior 298 Free Association 298 Projective Techniques 300

BRANDING BRIEF 9-2: Once Upon a Time . . . You Were What You Cooked 301 Zaltman Metaphor Elicitation Technique 302

BRANDING BRIEF 9-3: Brand Imagery at Joie de Vivre 303 Neural Research Methods 304 Brand Personality and Values 305 Ethnographic and Experiential Methods 306

BRANDING BRIEF 9-4: Making the Most of Consumer Insights 307 Summary 310

Quantitative Research Techniques 310 Brand Awareness 311 Brand Image 314

THE SCIENCE OF BRANDING 9-1: Understanding Categorical Brand Recall 315 Brand Responses 316 Brand Relationships 318

THE SCIENCE OF BRANDING 9-2: Understanding Brand Engagement 321

Comprehensive Models of Consumer-Based Brand Equity 323 BrandDynamics 323 Relationship to the CBBE Model 324

Review 324

Discussion Questions 325

BRAND FOCUS 9.0: Young & Rubicam’s BrandAsset Valuator 325

Notes 331

Chapter 10 Measuring Outcomes of Brand Equity: Capturing Market Performance 334 Preview 335

Comparative Methods 336 Brand-Based Comparative Approaches 336

CONTENTS XV

Marketing-Based Comparative Approaches 337 Conjoint Analysis 339

Holistic Methods 340 Residual Approaches 341 Valuation Approaches 343

THE SCIENCE OF BRANDING 10-1: The Prophet Brand Valuation Methodology 347

BRANDING BRIEF 10-1: Beauty Is in the Eye of the Beholder 350

Review 351

Discussion Questions 352

BRAND FOCUS 10.0: Branding and Finance 352

Notes 354

PART V Growing and Sustaining Brand Equity 357 Chapter 11 Designing and Implementing Brand Architecture Strategies 357

Preview 358

Developing a Brand Architecture Strategy 358 Step 1: Defining Brand Potential 358

THE SCIENCE OF BRANDING 11-1: The Brand–Product Matrix 359

THE SCIENCE OF BRANDING 11-2: Capitalizing on Brand Potential 362 Step 2: Identifying Brand Extension Opportunities 364 Step 3: Branding New Products and Services 364 Summary 365

Brand Portfolios 365

BRANDING BRIEF 11-1: Expanding the Marriott Brand 368

Brand Hierarchies 370 Levels of a Brand Hierarchy 370 Designing a Brand Hierarchy 372

BRANDING BRIEF 11-2: Netflix Branding Stumbles 373

Corporate Branding 380

THE SCIENCE OF BRANDING 11-3: Corporate Brand Personality 381 Corporate Image Dimensions 381

BRANDING BRIEF 11-3: Corporate Reputations: The Most Admired U.S. Companies 382

BRANDING BRIEF 11-4: Corporate Innovation at 3M 384 Managing the Corporate Brand 386

Brand Architecture Guidelines 393

Review 394

Discussion Questions 395

BRAND FOCUS 11.0: Cause Marketing 395

Notes 398

Chapter 12 Introducing and Naming New Products and Brand Extensions 403 Preview 404

New Products and Brand Extensions 404

BRANDING BRIEF 12-1: Growing the McDonald’s Brand 406

Advantages of Extensions 407 Facilitate New-Product Acceptance 408 Provide Feedback Benefits to the Parent Brand 410

XVI CONTENTS

Disadvantages of Brand Extensions 413 Can Confuse or Frustrate Consumers 413 Can Encounter Retailer Resistance 414 Can Fail and Hurt Parent Brand Image 414

THE SCIENCE OF BRANDING 12-1: When Is Variety a Bad Thing? 415 Can Succeed but Cannibalize Sales of Parent Brand 416 Can Succeed but Diminish Identification with Any One Category 416

BRANDING BRIEF 12-2: Are There Any Boundaries to the Virgin Brand Name? 417 Can Succeed but Hurt the Image of the Parent Brand 418 Can Dilute Brand Meaning 418 Can Cause the Company to Forgo the Chance to Develop a New Brand 418

Understanding How Consumers Evaluate Brand Extensions 419 Managerial Assumptions 420 Brand Extensions and Brand Equity 420 Vertical Brand Extensions 423

Evaluating Brand Extension Opportunities 424 Define Actual and Desired Consumer Knowledge about the Brand 424

BRANDING BRIEF 12-3: Levi Extends Its Brand 425 Identify Possible Extension Candidates 426 Evaluate the Potential of the Extension Candidate 426 Design Marketing Programs to Launch Extension 429 Evaluate Extension Success and Effects on Parent Brand Equity 430

Extension Guidelines Based on Academic Research 431

Review 441

Discussion Questions 441

BRAND FOCUS 12.0: Scoring Brand Extensions 442

Notes 443

Chapter 13 Managing Brands Over Time 449 Preview 450

Reinforcing Brands 451 Maintaining Brand Consistency 452

THE SCIENCE OF BRANDING 13-1: Brand Flashbacks 454 Protecting Sources of Brand Equity 454 Fortifying versus Leveraging 456 Fine-Tuning the Supporting Marketing Program 456

BRANDING BRIEF 13-1: Razor-Sharp Branding at Gillette 459

Revitalizing Brands 462

BRANDING BRIEF 13-2: Remaking Burberry’s Image 464

BRANDING BRIEF 13-3: Harley-Davidson Motor Company 465

BRANDING BRIEF 13-4: A New Morning for Mountain Dew 466 Expanding Brand Awareness 467 Improving Brand Image 469

Adjustments to the Brand Portfolio 471 Migration Strategies 471 Acquiring New Customers 471 Retiring Brands 472

Review 474

Discussion Questions 476

BRAND FOCUS 13.0: Responding to a Brand Crisis 476

Notes 479

CONTENTS XVII

Chapter 14 Managing Brands Over Geographic Boundaries and Market Segments 481 Preview 482

Regional Market Segments 482

Other Demographic and Cultural Segments 483

Rationale for Going International 484

BRANDING BRIEF 14-1: Marketing to African Americans 485

Advantages of Global Marketing Programs 486 Economies of Scale in Production and Distribution 486 Lower Marketing Costs 487 Power and Scope 487 Consistency in Brand Image 487 Ability to Leverage Good Ideas Quickly and Efficiently 487 Uniformity of Marketing Practices 487

Disadvantages of Global Marketing Programs 488 Differences in Consumer Needs, Wants, and Usage Patterns for Products 488 Differences in Consumer Response to Branding Elements 488 Differences in Consumer Responses to Marketing Mix Elements 489 Differences in Brand and Product Development and the Competitive Environment 490 Differences in the Legal Environment 490 Differences in Marketing Institutions 490 Differences in Administrative Procedures 490

Global Brand Strategy 491 Global Brand Equity 491 Global Brand Positioning 492

Standardization versus Customization 493 Standardization and Customization 493

BRANDING BRIEF 14-2: Coca-Cola Becomes the Quintessential Global Brand 494

BRANDING BRIEF 14-3: UPS’s European Express 496

Developing versus Developed Markets 500

Building Global Customer-Based Brand Equity 501 1. Understand Similarities and Differences in the Global Branding Landscape 501 2. Don’t Take Shortcuts in Brand Building 502 3. Establish Marketing Infrastructure 503 4. Embrace Integrated Marketing Communications 504 5. Cultivate Brand Partnerships 504 6. Balance Standardization and Customization 505

BRANDING BRIEF 14-4: Managing Global Nestlé Brands 506 7. Balance Global and Local Control 507 8. Establish Operable Guidelines 508 9. Implement a Global Brand Equity Measurement System 509

10. Leverage Brand Elements 509

THE SCIENCE OF BRANDING 14-1: Brand Recall and Language 510

Review 511

Discussion Questions 513

BRAND FOCUS 14.0: China Global Brand Ambitions 513

Notes 515

PART VI Closing Perspectives 519 Chapter 15 Closing Observations 519

Preview 520

Strategic Brand Management Guidelines 520 Summary of Customer-Based Brand Equity Framework 520 Tactical Guidelines 522

What Makes a Strong Brand? 526

BRANDING BRIEF 15-1: The Brand Report Card 527

Future Brand Priorities 528 1. Fully and Accurately Factor the Consumer into the Branding Equation 528

BRANDING BRIEF 15-2: Reinvigorating Branding at Procter & Gamble 530 2. Go Beyond Product Performance and Rational Benefits 532 3. Make the Whole of the Marketing Program Greater Than the Sum of the Parts 533 4. Understand Where You Can Take a Brand (and How) 535 5. Do the “Right Thing” with Brands 537 6. Take a Big Picture View of Branding Effects. Know What Is Working (and Why) 538 Finding the Branding Sweet Spot 538

Review 539

Discussion Questions 540

BRAND FOCUS 15.0: Special Applications 540

Notes 545

Epilogue 547

Index 549

XVIII CONTENTS

Prologue: Branding Is Not Rocket Science

Although the challenges in branding can be immense and difficult, branding is not necessarily rocket science. I should know. I am not a rocket scientist—but my dad was. He was a physicist in the Air Force for 20 years, working on various rocket fuels. Always interested in what I did, he once asked what the book was all about. I explained the concept of brand equity and how the book addressed how to build, measure, and manage it. He listened, paused, and remarked, “That’s very interesting but, uh, that’s not exactly rocket science.”

He’s right. Branding is not rocket science. In fact, it is an art and a science. There’s always a creativity and originality component involved with marketing. Even if someone were to fol- low all the guidelines in this book—and all the guidelines were properly specified—the success or failure of a brand strategy would still depend largely on how, exactly, this strategy would be implemented.

Nevertheless, good marketing is all about improving the odds for success. My hope is that this book adds to the scientific aspect of branding, illuminating the subject and providing guid- ance to those who make brand-related decisions.

XIX

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Preface

Let me answer a few questions as to what this book is about, how it’s different from other books about branding, what’s new with this fourth edition, who should read it, how it’s organized, and how you can get the most out of it.

WHAT IS THE BOOK ABOUT? This book deals with brands—why they are important, what they represent to consumers, and what firms should do to manage them properly. As many business executives correctly recog- nize, perhaps one of the most valuable assets a firm has are the brands it has invested in and developed over time. Although competitors can often duplicate manufacturing processes and factory designs, it’s not so easy to reproduce strongly held beliefs and attitudes established in the minds of consumers. The difficulty and expense of introducing new products, however, puts more pressure than ever on firms to skillfully launch their new products as well as manage their existing brands.

Although brands may represent invaluable intangible assets, creating and nurturing a strong brand poses considerable challenges. Fortunately, the concept of brand equity—the main focus of this book—can provide marketers with valuable perspective and a common denominator to interpret the potential effects and trade-offs of various strategies and tactics for their brands. Think of brand equity as the marketing effects uniquely attributable to the brand. In a practical sense, brand equity is the added value a product accrues as a result of past investments in the marketing activity for the brand. It’s the bridge between what happened to the brand in the past and what should happen to it in the future.

The chief purpose of this book is to provide a comprehensive and up-to-date treatment of the subjects of brands, brand equity, and strategic brand management—the design and implementa- tion of marketing programs and activities to build, measure, and manage brand equity. One of the book’s important goals is to provide managers with concepts and techniques to improve the long- term profitability of their brand strategies. We’ll incorporate current thinking and developments on these topics from both academics and industry participants, and combine a comprehensive theoretical foundation with enough practical insights to assist managers in their day-to-day and long-term brand decisions. And we’ll draw on illustrative examples and case studies of brands marketed in the United States and all over the world.

Specifically, we’ll provide insights into how to create profitable brand strategies by building, measuring, and managing brand equity. We address three important questions:

1. How can we create brand equity? 2. How can we measure brand equity? 3. How can we sustain brand equity to expand business opportunities?

Readers will learn:

• The role of brands, the concept of brand equity, and the advantages of creating strong brands • The three main ways to build brand equity by properly choosing brand elements, designing

marketing programs and activities, and leveraging secondary associations • Different approaches to measuring brand equity, and how to implement a brand equity mea-

surement system • Alternative branding strategies and how to design a brand architecture strategy and devise

brand hierarchies and brand portfolios

XXI

XXII PREFACE

• The role of corporate brands, family brands, individual brands, modifiers, and how to combine them into sub-brands

• How to adjust branding strategies over time and across geographic boundaries to maximize brand equity

WHAT’S DIFFERENT ABOUT THIS BOOK? My objective in writing this book was to satisfy three key criteria by which any marketing text should be judged:

• Depth: The material in the book had to be presented in the context of conceptual frameworks that were comprehensive, internally consistent and cohesive, and well grounded in the aca- demic and practitioner literature.

• Breadth: The book had to cover all those topics that practicing managers and students of brand management found intriguing and/or important.

• Relevance: Finally, the book had to be well grounded in practice and easily related to past and present marketing activities, events, and case studies.

Although a number of excellent books have been written about brands, no book has really maxi- mized those three dimensions to the greatest possible extent. This book sets out to fill that gap by accomplishing three things.

First, we develop our main framework that provides a definition of brand equity, identifies sources and outcomes of brand equity, and provides tactical guidelines about how to build, mea- sure, and manage brand equity. Recognizing the general importance of consumers and customers to marketing—understanding and satisfying their needs and wants—this broad framework approaches branding from the perspective of the consumer; it is called customer-based brand equity. We then introduce a number of more specific frameworks to provide more detailed guidance.

Second, besides these broad, fundamentally important branding topics, for completeness, numerous Science of Branding boxes provide in-depth treatment of cutting-edge ideas and concepts, and each chapter contains a Brand Focus appendix that delves into detail on specific, related branding topics, such as brand audits, legal issues, brand crises, and private labels.

Finally, to maximize relevance, numerous in-text examples illuminate the discussion of virtually every topic, and a series of Branding Brief boxes provide more in-depth examinations of selected topics or brands.

Thus, this book can help readers understand the important issues in planning and evaluat- ing brand strategies, as well as providing appropriate concepts, theories, and other tools to make better branding decisions. We identify successful and unsuccessful brand marketers—and why they have been so—to offer readers a greater appreciation of the range of issues in branding, as well as a means to organize their own thoughts about those issues.

WHO SHOULD READ THE BOOK? A wide range of people can benefit from reading this book:

• Students interested in increasing both their understanding of basic branding principles and their exposure to classic and contemporary branding applications and case studies

• Managers and analysts concerned with the effects of their day-to-day marketing decisions on brand performance

• Senior executives concerned with the longer-term prosperity of their brand franchises and product or service portfolios

• All marketers interested in new ideas with implications for marketing strategies and tactics

The perspective we adopt is relevant to any type of organization (public or private, large or small), and the examples cover a wide range of industries and geographies. To illuminate brand- ing concepts across different settings, we review specific applications to online, industrial, high-tech, service, retailer, and small business in Chapters 1 and 15.

PREFACE XXIII

HOW IS THE BOOK ORGANIZED? The book is divided into six major parts, adhering to the “three-exposure opportunity” approach to learning new material. Part I introduces branding concepts; Parts II, III, IV, and V provide all the specific details of those concepts; and Part VI summarizes and applies the concepts in various contexts. The specific chapters for each part and their contents are as follows.

Part I sets the stage by providing the “big picture” of what strategic brand management is all about and provides a blueprint for the rest of the book. The goal is to provide a sense for the content and context of strategic brand management by identifying key branding decisions and suggesting some of the important considerations for those decisions. Specifically, Chapter 1 introduces some basic notions about brands, and the role they’ve played and continue to play in marketing strategies. It defines what a brand is, why brands matter, and how anything can be branded, and provides an overview of the strategic brand management process.

Part II addresses the topic of brand equity and introduces three models critical for brand planning. Chapter 2 introduces the concept of customer-based brand equity, outlines the customer-based brand equity framework, and provides detailed guidelines for the critically important topic of brand positioning. Chapter 3 describes the brand resonance and brand value chain models that assist marketers in developing profitable marketing programs for their brand and creating much customer loyalty.

Part III examines the three major ways to build customer-based brand equity, taking a sin- gle product–single brand perspective. Chapter 4 addresses the first way to build customer-based brand equity and how to choose brand elements (brand names, logos, symbols, slogans), and the role they play in contributing to brand equity. Chapters 5 and 6 outline the second way to build brand equity and how to optimize the marketing mix to create customer-based brand equity. Chapter 5 covers product, pricing, and distribution strategies; Chapter 6 is devoted to creating integrated marketing communication programs to build brand equity. Although most readers are probably familiar with these “4 P’s” of marketing, it’s illuminating to consider them from the standpoint of brand equity and the effects of brand knowledge on consumer response to market- ing mix activity and vice versa. Finally, Chapter 7 examines the third major way to build brand equity—by leveraging secondary associations from other entities like a company, geographical region, person, or other brand.