Customer-Based Brand Equity

and Brand Positioning

Strategic Brand Management
K. L. Keller
4th Edition (or newer)
Chapter 2

Global Marketing/ International Marketing & Brand Management Saiful Islam

1
EMBA Program, Spring 2021 Dept. of International Business
Global Marketing/ International Marketing & Brand Management Saiful Islam
2
EMBA Program, Spring 2021 Dept. of International Business
Chapter Learning Objectives
• Customer-Based Brand Equity
• Brand Knowledge, Awareness and Image
• Source of Brand Equity
• Identifying and Establishing Brand Positioning
• Positioning Guidelines

Global Marketing/ International Marketing & Brand Management Saiful Islam

3
EMBA Program, Spring 2021 Dept. of International Business
Customer-Based Brand Equity
• “The differential effect that
brand knowledge has on
consumer response to the
marketing of that brand.”

Global Marketing/ International Marketing & Brand Management Saiful Islam

4
EMBA Program, Spring 2021 Dept. of International Business
Customer-Based Brand Equity

Differential Effect • Differences in consumer response

Brand Knowledge • A result of consumers’ knowledge about the brand

• Choice of a brand
Consumer • Recall from an ad
Response to
Marketing • Response to a sales promotion
• Evaluations of a proposed brand extension
Global Marketing/ International Marketing & Brand Management Saiful Islam
5
EMBA Program, Spring 2021 Dept. of International Business
Making a Brand Strong: Brand Knowledge
• Brand knowledge is the key to
creating brand equity
• Brand knowledge consists of a
brand node in memory with a
variety of associations linked to it
• Brand knowledge has two
components: brand awareness
and brand image

Global Marketing/ International Marketing & Brand Management Saiful Islam

6
EMBA Program, Spring 2021 Dept. of International Business
Sources of Brand Equity
• Customer-based brand equity (CBBE) occurs when the consumer has
a high level of awareness and familiarity with the brand and holds
some strong, favorable, and unique brand associations in memory
• Building strong customer-based brand equity requires,
1. Creating positive and favorable brand awareness
2. Establishing a positive brand image in consumer memory through strong,
favorable, and unique brand associations

Global Marketing/ International Marketing & Brand Management Saiful Islam

7
EMBA Program, Spring 2021 Dept. of International Business
Sources of Brand Equity

Brand recognition

Brand Awareness

Brand recall

Strong, favorable, and

Brand Image
unique brand associations

Global Marketing/ International Marketing & Brand Management Saiful Islam

8
EMBA Program, Spring 2021 Dept. of International Business
Brand Awareness
• Brand recognition
• Consumers’ ability to confirm prior exposure to the brand when given the
brand as a cue
• Brand recall
• Consumers’ ability to retrieve the brand from memory when given the
product category, the needs fulfilled by the category, or a purchase or usage
situation as a cue

Global Marketing/ International Marketing & Brand Management Saiful Islam

9
EMBA Program, Spring 2021 Dept. of International Business
Brand Awareness Advantages

Consideration
Learning advantages Choice advantages
advantages

Register the brand in Likelihood that brand Affect choices among

the minds of will be a member of brands in the
consumers the consideration set consideration set

Global Marketing/ International Marketing & Brand Management Saiful Islam

10
EMBA Program, Spring 2021 Dept. of International Business
Establishing Brand Awareness
• Increasing the familiarity of the brand through repeated exposure (for
brand recognition)
• Forging strong associations with the appropriate product category or
other relevant purchase or consumption cues (for brand recall)
• Anything that causes consumers to experience one of a brand’s
element can increase familiarity and awareness of that brand element

Global Marketing/ International Marketing & Brand Management Saiful Islam

11
EMBA Program, Spring 2021 Dept. of International Business
Brand Image
• Creating a positive brand image takes marketing programs that link
strong, favorable, and unique associations to the brand in memory
• Brand associations may be
• Brand attributes: descriptive features that characterize a product or service
• Brand benefits: personal value and meaning that consumers attach to the
product or service attributes

Global Marketing/ International Marketing & Brand Management Saiful Islam

12
EMBA Program, Spring 2021 Dept. of International Business
Brand Image: Strength of Brand Associations
• The more deeply a person thinks about product information and
relates it to existing brand knowledge, the stronger the resulting
brand associations will be.
• Two factors that strengthen association to any piece of information
are its personal relevance and the consistency with which it is
presented over time

Global Marketing/ International Marketing & Brand Management Saiful Islam

13
EMBA Program, Spring 2021 Dept. of International Business
Brand Image: Favorability of Brand Associations
• Brand associations may be situation or context-dependent and vary
according to what consumers want to achieve in that purchase or
consumption decision
• Marketers create favorable brand associations by convincing
consumers that the brand possesses relevant attributes and benefits
that satisfy their needs and wants, such that they form positive
overall brand judgments

Global Marketing/ International Marketing & Brand Management Saiful Islam

14
EMBA Program, Spring 2021 Dept. of International Business
Brand Image: Uniqueness of Brand Associations
• Brand should have a sustainable competitive advantage or “unique
selling proposition” that gives consumers a compelling reason why
they should buy it
• They may base it on performance-related or non- performance-
related attributes or benefits

Global Marketing/ International Marketing & Brand Management Saiful Islam

15
EMBA Program, Spring 2021 Dept. of International Business
Identifying and Establishing Brand Positioning
• Brand positioning is at the heart of marketing strategy
• Act of designing the company’s offer and image so that it occupies a
distinct and valued place in the target customer’s minds
• Deciding on a positioning requires determining
• A frame of reference
• Optimal points-of-parity and points-of-difference brand associations

Global Marketing/ International Marketing & Brand Management Saiful Islam

16
EMBA Program, Spring 2021 Dept. of International Business
Identifying and Establishing Brand Positioning
Target Market 1. who the target consumer is?

Nature of 2. who the main competitors are?

Competition

Points of Parity 3. how the brand is similar to these competitors?

Points of Difference 4. how the brand is different from them?

Global Marketing/ International Marketing & Brand Management Saiful Islam

17
EMBA Program, Spring 2021 Dept. of International Business
Target Market
• A number of criteria have been offered to guide segmentation and
target market decisions,
• Identifiability: Can we easily identify the segment?
• Size: Is there adequate sales potential in the segment?
• Accessibility: Are specialized distribution outlets and communication media
available to reach the segment?
• Responsiveness: How favorably will the segment respond to a tailored
marketing program?

Global Marketing/ International Marketing & Brand Management Saiful Islam

18
EMBA Program, Spring 2021 Dept. of International Business
Target Market
Business to Business Segmentation Base

Consumer Segmentation Base

Global Marketing/ International Marketing & Brand Management Saiful Islam
19
EMBA Program, Spring 2021 Dept. of International Business
Nature of Competition
• Deciding to target a certain type of consumer often defines the
nature of competition
• Competitive analysis considers a whole host of factors,
• Resources
• Capabilities
• Likely intentions of various other firms

Global Marketing/ International Marketing & Brand Management Saiful Islam

20
EMBA Program, Spring 2021 Dept. of International Business
Nature of Competition
• Indirect Competition
• Do not define competition too narrowly
• Competition often occurs at the benefit level rather than the attribute level
• Example: A grapefruit-flavored soft drink, At product type level, competes
with non-cola-flavored soft drinks; at product category level, competes with
all soft drinks; and at product class level, competes with all beverages

Global Marketing/ International Marketing & Brand Management Saiful Islam

21
EMBA Program, Spring 2021 Dept. of International Business
Points-of-Parity and Points-of-Difference
• Points-of-Difference Associations
• Attributes or benefits that consumers strongly associate with a brand,
positively evaluate, and believe that they could not find to the same extent
with a competitive brand
• Can be functional, performance-related considerations, imagery-related
considerations
• “Proof Points” or Reasons to Believe (RTBs)

Global Marketing/ International Marketing & Brand Management Saiful Islam

22
EMBA Program, Spring 2021 Dept. of International Business
Points-of-Parity and Points-of-Difference
• Points-of-Parity Associations
• Not necessarily unique to the brand but may in fact be shared with
other brands
• There are three types,
1. Category points-of-parity
2. Competitive points-of-parity
3. Correlational points-of-parity

Global Marketing/ International Marketing & Brand Management Saiful Islam

23
EMBA Program, Spring 2021 Dept. of International Business
Positioning Guidelines
• The concepts of points-of-difference and points-of-parity can be
invaluable tools to guide positioning
• Two key issues in arriving at the optimal competitive brand
positioning are,
1. Defining and communicating the competitive frame of reference
2. Choosing and establishing points of parity and points of difference

Global Marketing/ International Marketing & Brand Management Saiful Islam

24
EMBA Program, Spring 2021 Dept. of International Business
1. Defining and Communicating the
Competitive Frame of Reference
• Includes determining target market and nature of competition
• Determine the category membership
• Three main ways to convey category membership
1. Communicating category benefits
2. Exemplars
3. Product descriptor

Global Marketing/ International Marketing & Brand Management Saiful Islam

25
EMBA Program, Spring 2021 Dept. of International Business
2. Choosing Points-of-Difference
• The brand association must be seen as desirable, deliverable, and
differentiating
• Desirability Criteria: determined from the consumer’s point of view
• Deliverability Criteria: based on a company’s inherent capabilities
• Differentiation Criteria: determined relative to the competitors

Global Marketing/ International Marketing & Brand Management Saiful Islam

26
EMBA Program, Spring 2021 Dept. of International Business
2. Establishing Points-of-Parity &
Points-of-Difference
• The key to branding success is to establish both points-of-parity and
points-of-difference
• One of the challenges in positioning
is the inverse relationships that may
exist in the minds of many consumers

Global Marketing/ International Marketing & Brand Management Saiful Islam

27
EMBA Program, Spring 2021 Dept. of International Business
 End of Lecture 5
* All clipart, image and graphics are sourced from Google webpage

Global Marketing/ International Marketing & Brand Management Saiful Islam

28
EMBA Program, Spring 2021 Dept. of International Business