Creating Brand Value
Course Number 1925
Senior Lecturer Jill J. Avery
Spring; Q3; 1.5 credits
14 sessions and either an exam or project (student choice)
This course is designed for students who plan to create, unlock, or invest in value created through brands in the consumer and retail space. It is appropriate for:
- Marketing professionals charged with creating, nurturing, and managing brand value;
- Entrepreneurs looking to create their own consumer-driven brands;
- Consumer/retail general managers and consultants engaged in stewarding brand strategy; and
- Venture capital, private equity, or investment management investors seeking to identify brand asset potential and value brand equity.
In the consumer/retail space, brands are often companies' most valuable assets and sources of their sustainable competitive advantage. But, managing brands to achieve their full value potential has never been more difficult. Consumers are increasingly diverse, skeptical of marketing, and empowered by digital technologies that easily connect them to others who share their tastes. They co-create the meaning of the brands that shape their lives and play a participatory role in brand management that can make them allies or adversaries. The contemporary brandscape is crowded with competitors vying to stake claims to rich, meaning-laden value propositions that reflect and leverage the zeitgeist. Iconic brands are toppled everyday by young upstarts telling new types of stories in authentic ways. Firms are aggressively buying consumers' brand loyalty at the same time they are firing their customers. Customer relationship management (CRM) investments have failed to deliver on their promise and are often hurting rather than helping the development of strong consumer-brand relationships. Brand managers are losing control as consumers hijack brand meaning and engage in open-source branding.
This course takes a contemporary view of branding as a collective and collaborative meaning-making process among firms, consumers, and other cultural producers, and of brands as meaning-based, relational assets that must be carefully designed, curated, and negotiated to unlock their considerable value. As branding becomes more participatory, experiential, and experimental, the role of the brand manager requires cultural and relational prowess. Today's managers must be able to author resonant stories that spark conversations that capture attention, generate engagement, and provide culturally-relevant meaning to consumers. Learnings will focus on how brands and the stories that define them can be crafted and communicated in ways that nurture relationships that create value for both consumers and firms.
Course Content and Organization
The course is organized into three modules and will include cases and guest speakers from the food and beverage, fashion, hospitality, automotive, retailing, fast-moving consumer goods, technology, and financial services verticals.
Module 1: Meaning
Key questions will include:
- What, exactly, is a brand? How does one create an iconic brand?
- How do brands create value for consumers and for firms?
- How is brand meaning created and who are the multiple authors that narrate it? How can brand managers best manage brand co-creation alongside consumers?
- What makes a good brand story? How can managers use cultural branding to craft culturally resonant brand narratives?
- In today’s competitive marketplace, how can managers best position brands to create maximum value? Which types of value propositions hold the most promise?
- How should brands be best managed over time for continued growth? What are the opportunities and challenges associated with brand extension, brand revitalization, and brand repositioning?
Module 2: Relationships
Key Questions will include:
- What roles do brands play as relational partners? How do different relational roles contribute to differential costs and benefits to firms?
- How does a consumer-brand relationship form and evolve over time? Why do some relationships decline and dissolve while others intensify and endure?
- What is brand loyalty and how does it manifest itself? How is it best nurtured and negotiated?
- What is customer relationship management (CRM) and how do brands and their consumers enact their relationships?
- Who is responsible for an unprofitable relationship? Should firms “fire” their customers? Under which conditions?
Module 3: Value
Key Questions will include:
- What are best practices for brand valuation? How does one value a brand asset?
- How do brands create shareholder value? How can a strong brand increase returns, reduce variability in cash flows, and insulate a company from market downturns? How can brands be used to manage a firm’s risk exposure?
- How can brand portfolio strategy and brand architecture increase the value of a firm’s brands?
- Under which conditions is brand equity diminished or destroyed? What can managers do to prevent and/or mitigate this? How should managers handle brand crises?
- What happens when consumers hijack brand meaning? How can brand managers work with online and offline brand communities to create rather than destroy value?