Marketing_Management_14th_Edition-min

258 PART 4 BUILDING STRONG BRANDS
|Fig. 9.7|
Interbrand Brand
Valuation Method
Market Segments
Financial
Analysis
Demand
Drivers
Competitive
Benchmarking
Intangible
Earnings
Role of
Branding
Brand
Strength
Brand
Earnings
Brand
Discount
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 associations
should exist in consumers’ minds. 53 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 direction
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.