Resumen Merca

Kotler – Chapter 09 – Creating Brand and Equity

What is Brand Equity?

* Strategic brand management combines the design and implementation of marketing activities and programs to build, measure, and mange brands to maximize their value and has four main steps:

* Identifying and establishing brand positioning

* Planning and implementing brand marketing

* Measuring and interpreting bran performance

* Growing and sustaining brand value

* The American Marketing Association defines brand as “a name, term, sign, symbol, or deign, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors”.

* The differentiation might be functional, rational, or tangible – related to product performance – or symbolic, emotional or intangible – related to what the bran represents.

The role of brands

* Functions for the market: Brands identify the source or maker of a product and allow consumers to assign responsibility for its performance to a particular manufacturer or distributor.

* Functions for firms: They simplify product handling or tracing and offer the firm legal protection for unique features or aspects of the product.

* Brand loyalty: Provides predictability and security of demand for the firm and it also translates in the willingness to pay a higher price.

The scope of branding

* A brand is a perceptual entity rooted in reality but reflecting the perceptions and idiosyncrasies of consumers.

* Branding is endowing products and services with the power of a brand. Branding creates mental structures that help consumer organize their knowledge about products and services in way that clarifies their decision-making and, in the process, provides value to the firm.

* For a brand to be successful it must have meaningful differences among other brands in the product or service category. These brand differences are often...