Definition of Brand:
- A name, term, sign, symbol, design, or a combination of them
- Identifies the goods of a seller
- Differentiates the seller from others
- Represents everything that a product or service means to customers, and how they perceive it – Philip Kotler

Brand Equity: The preference of a customer towards the brand; How likely they are to choose one brand over another
Brand Value: The estimated financial value of a brand; a number
Branding: The process of building positive brand equity

3 ways of Brand Valuation:
1. Cost Approach: Assume it equals the entire amount spent on building the brand since the beginning. Disadvantage: Money spent years ago is subject to inflation, and amount may not be relevant.

2. Market-Based Approach: Take the actual profits, minus the profits if the product was unbranded, and minus the cost of building the brand. EG: Assume Sunkist Oranges profit is $100, and an Unbranded Orange profit is $40, and the Marketing Campaign to build Sunkist Oranges brand is $15. Therefore, the Sunkist Oranges Brand is worth $45.

3. Financial Approach: Take projected profits, and discount to the present value. This is a complex process that only gives a rough estimate, but is used for accounting purposes.

Brand Audit: A systematic study for evaluating how a brand is perceived through all its touch points, SWOT, and developing strategies.
Touch Points: The interfaces between a brand and consumers.
EG: Starbucks Touch Points:
- Books 

- Music 
- Loyalty Card 
- Road Shows
- Barista 

- Movies 
- Cashier 
- Sponsorships
- Drinks 

- Advertising 
- Uniforms 
- Logo
- Web Site 

- Apps

Singapore’s Favorite Brands 2010:
  1. Google
  2. Colgate
  3. NTUC Fairprice
  4. SingTel
  5. Straits Times
  6. StarHub
  7. Sony
  8. Yahoo
  9. 7-Eleven
  10. Nippon Paint

Positioning: Creating a distinct image of a brand in the target consumer’s mind about what makes the brand desirable and different from competitors. 
3 Levels of Positioning:
  1. Attributes / Features: Pampers absorbs fluid well and is convenient.
  2. Benefits: Babes sleep better because Pampers keeps them dry.
  3. Beliefs and Values: Pampers care about your baby’s comfort and good parents prefer Pampers.

  1. Attributes / Features: Volvo makes safe cars.
  2. Benefits: Volvo can save your life in an accident, and you will live longer.
  3. Beliefs and Values: Owning a Volvo gives you peace of mind, security and allows you to spend more time with your loved ones.

3 ways of Brand Development:
  1. Line Extension: Add more variety within the same product category. EG: Pringles
  2. Brand Extension: Add a new product category. EG: National Geographic – Magazine to cable channel to café.
  3. New Brand: Create a new brand, or acquire an existing brand. EG: Toyoto created Lexus.