Page 281 - Marketing Management

258 PART 4 BUILDING STRONG BRANDS

|Fig. 9.7|
Market Segments
Interbrand Brand
Valuation Method

Financial Demand Competitive
Analysis Drivers Benchmarking

Intangible Role of Brand
Earnings Branding Strength

Brand
Brand Discount
Earnings
Rate

Brand Value
(net present value of future brand earnings)

Managing Brand Equity

Because consumer responses to marketing activity depend on what they know and remember
about a brand, short-term marketing actions, by changing brand knowledge, necessarily increase or
decrease the long-term success of future marketing actions.

Brand Reinforcement

As a company’s major enduring asset, a brand needs to be carefully managed so its value does not
depreciate. 52 Many brand leaders of 70 years ago remain leaders today—Wrigley’s, Coca-Cola,
Heinz, and Campbell Soup—but only by constantly striving to improve their products, services,
and marketing.
Marketers can reinforce brand equity by consistently conveying the brand’s meaning in terms of
(1) what products it represents, what core benefits it supplies, and what needs it satisfies; and
(2) how the brand makes products superior, and which strong, favorable, and unique brand associ-
53
ations should exist in consumers’ minds. NIVEA, one of Europe’s strongest brands, has expanded
from a skin cream brand to a skin care and personal care brand through carefully designed and
implemented brand extensions that reinforce the brand promise of “mild,” “gentle,” and “caring.”
Reinforcing brand equity requires that the brand always be moving forward— in the right direc-
tion and with new and compelling offerings and ways to market them. In virtually every product
category, once-prominent and admired brands—such as Fila, Oldsmobile, Polaroid, Circuit City—
have fallen on hard times or gone out of business. 54
An important part of reinforcing brands is providing consistent marketing support.
Consistency doesn’t mean uniformity with no changes: While there is little need to deviate from a
successful position, many tactical changes may be necessary to maintain the strategic thrust and
direction of the brand. When change is necessary, marketers should vigorously preserve and defend
sources of brand equity.