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CHAPTER: 3

BRAND RESONANCE AND THE


BRAND VALUE CHAIN
LEARNING OBJECTIVES
• DEFINE BRAND RESONANCE
• DESCRIBE THE STEPS IN BUILDING BRAND RESONANCE
• DEFINE THE BRAND VALUE CHAIN
• IDENTIFY THE STAGES IN THE BRAND VALUE CHAIN
• CONTRAST BRAND EQUITY AND CUSTOMER EQUITY

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BUILDING A STRONG BRAND:
THE SIX STEPS OF BRAND BUILDING
• BRAND SALIENCE
• BRAND PERFORMANCE
• BRAND IMAGERY
• BRAND JUDGMENTS
• BRAND FEELINGS
• BRAND RESONANCE

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BRAND RESONANCE MODEL
• To create intense, active loyalty
relationships with customers.
• How brand positioning affects
what consumers think, feel, and
do and the degree to which they
resonate or connect with a
brand.
• How brand resonance and
these loyalty relationships, 
create brand equity or value.
BRAND VALUE CHAIN MODEL
• MEANS BY WHICH MARKETERS CAN TRACE THE VALUE
CREATION PROCESS FOR THEIR BRANDS TO BETTER
UNDERSTAND THE FINANCIAL IMPACT OF THEIR
MARKETING EXPENDITURES AND INVESTMENTS.
THE FOUR STEPS OF BRAND BUILDING
1. Identification of the brand with customers and an
association of the brand in customers’ minds
2. Totality of brand meaning in the minds of
consumers
3. Elicit the proper customer responses to the brand
identification and brand meaning
4. Convert brand response to create an intense,
active loyalty relationship between customers and
the brand 2.7

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FOUR QUESTIONS CUSTOMERS ASK
OF BRANDS
1. WHO ARE YOU? (BRAND
IDENTITY)

2. WHAT ARE YOU?


(BRAND MEANING)

3. WHAT ABOUT YOU?


WHAT DO I THINK OR
FEEL ABOUT YOU?
(BRAND RESPONSES)

4. WHAT ABOUT YOU AND


ME? WHAT KIND OF
ASSOCIATION AND HOW
MUCH OF A
CONNECTION WOULD I
LIKE TO HAVE WITH
YOU? (BRAND 2.8

RELATIONSHIPS)
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BRAND BUILDING BLOCKS
RESONANCE
Loyalty
Attachment
Community
Engagement
FEELINGS
JUDGEMENTS Warmth
Quality Fun
Credibility Excitement
Consideration Security
Superiority Social Approval
Self-Respect
PERFORMANCE
Primary Characteristics & IMAGERY
Secondary Features User Profiles
Product reliability Purchase & Usage situations
Durability, Serviceability Personality & Values
Service Effectiveness History
Efficiency, Empathy Heritage
Style & Design Experiences
Price
SALIENCE
Category Identification
Needs
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Education, Inc. Publishing as Prentice Hall.
R E
a m
ti ot
o io
n n
al al

R R
o o
ut ut
e e 2.10

BRAND RESONANCE PYRAMID


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SALIENCE DIMENSIONS
• BRAND SALIENCE IS THE DEGREE
TO WHICH YOUR BRAND IS
THOUGHT ABOUT OR NOTICED
WHEN A CUSTOMER IS IN A BUYING
SITUATION.
• STRONG BRANDS HAVE
HIGH BRAND SALIENCE AND
WEAK BRANDS HAVE LITTLE OR
NONE
• DEPTH OF BRAND AWARENESS
• EASE OF RECOGNITION AND
RECALL
• STRENGTH OF CATEGORY
MEMBERSHIP
• CLARITY OF CATEGORY
MEMBERSHIP

• BREADTH OF BRAND AWARENESS


• PURCHASE CONSIDERATION 2.11

• CONSUMPTION CONSIDERATION
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DEPTH & BREADTH OF AWARENESS

Depth of Brand Awareness


1. Washing Detergent
Breadth of brand Awareness
1. Soft Drinks

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BRAND SALIENCE
Breadth and Depth of
Awareness

Product Category Structure

Strategic Implications

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PRODUCT CATEGORY STRUCTURE.
• A PRODUCT CATEGORY IS A WAY TO ORGANIZE PRODUCTS IN
YOUR STORE BY THE TYPE OF PRODUCTS YOU SELL. FOR
EXAMPLE, IF YOU SELL ELECTRONIC PRODUCTS THEN YOUR
CATEGORIES MIGHT BE COMPUTERS, TELEVISIONS,
PROJECTORS, SPEAKERS AND CELL PHONES.
• HOW PRODUCT CATEGORIES ARE ORGANIZED IN MEMORY.
1. PRODUCT CLASS INFORMATION AT THE HIGHEST LEVEL,
2. PRODUCT CATEGORY INFORMATION AT THE SECOND-
HIGHEST LEVEL,
3. PRODUCT TYPE INFORMATION AT THE NEXT LEVEL,
4. AND BRAND INFORMATION AT THE LOWEST LEVEL.

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DEPTH AND BREADTH IMPORTANCE
PRODUCT CLASS

• THE PRODUCT CATEGORY HIERARCHY SHOWS US NOT ONLY THE


DEPTH OF AWARENESS MATTERS BUT ALSO THE BREADTH.
PRODUCT CATEGORY Malt
• THE BRAND MUST NOT ONLY BE TOP-OF-MIND AND HAVE SUFFICIENT
“MIND SHARE,” BUT IT MUST ALSO DO SO AT THE RIGHT TIMES AND
PLACES.

PRODUCT TYPE

2.15
BRAND INFORMATION
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Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.
BRAND SALIENCE
Breadth and Depth of
Awareness

Product Category Structure

Strategic Implications

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STRATEGIC IMPLICATIONS
Key question is not whether consumers can recall
the brand but

where they when they how easily and


think of it, think of it, and how often they
think of it

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BRAND PERFORMANCE

how well the product or service meets customers’ more


functional needs

How well does the brand rate on objective assessments of


quality?

To what extent does the brand satisfy utilitarian, aesthetic,


and economic customer needs and wants in the product
or service category?
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BRAND PERFORMANCE

• DESCRIBES HOW WELL THE


BRAND:
• MEETS CUSTOMERS’ MORE
FUNCTIONAL NEEDS
• RATE ON OBJECTIVE
ASSESSMENTS OF QUALITY
• SATISFIES UTILITARIAN,
AESTHETIC, AND ECONOMIC
CUSTOMER NEEDS AND WANTS
IN THE PRODUCT OR SERVICE
CATEGORY

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IMPORTANT ATTRIBUTES & BENEFITS
FOR BRAND PERFORMANCE
• 1. PRIMARY INGREDIENTS AND
SUPPLEMENTARY FEATURES.

• 2. PRODUCT RELIABILITY,
DURABILITY, AND
SERVICEABILITY.

• 3. SERVICE EFFECTIVENESS,
EFFICIENCY, AND EMPATHY

• 4. STYLE AND DESIGN.

• 5. PRICE.

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IMPORTANT ATTRIBUTES & BENEFITS
FOR BRAND PERFORMANCE

• 1. PRIMARY INGREDIENTS AND SUPPLEMENTARY


FEATURES.

• 2. PRODUCT RELIABILITY, DURABILITY, AND


SERVICEABILITY.

• 3. SERVICE EFFECTIVENESS, EFFICIENCY, AND EMPATHY

• 4. STYLE AND DESIGN.

• 5. PRICE.

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BRAND IMAGERY

• BRAND IMAGERY DEPENDS ON THE EXTRINSIC PROPERTIES


OF THE PRODUCT OR SERVICE, INCLUDING THE WAYS IN
WHICH THE BRAND ATTEMPTS TO MEET CUSTOMERS’
PSYCHOLOGICAL OR SOCIAL NEEDS.
• IT IS THE WAY PEOPLE THINK ABOUT A BRAND ABSTRACTLY,
RATHER THAN WHAT THEY THINK THE BRAND ACTUALLY
DOES.
• THUS, IMAGERY REFERS TO MORE INTANGIBLE ASPECTS OF
THE BRAND, AND CONSUMERS CAN FORM IMAGERY
ASSOCIATIONS DIRECTLY FROM THEIR OWN EXPERIENCE OR
INDIRECTLY THROUGH ADVERTISING OR BY SOME OTHER
SOURCE OF INFORMATION, SUCH AS WORD OF MOUTH.

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BRAND IMAGERY
• USER PROFILE/IMAGERY

• PURCHASE AND USAGE SITUATIONS/IMAGERY

• BRAND PERSONALITY AND VALUES

• BRAND HISTORY, HERITAGE, AND EXPERIENCES

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Nivea in Europe, makers of many different skin care
and personal care products. Some of its more notable
intangible associations include:
(1) family/shared experiences/maternal
2) multipurpose,
(3) classic/timeless, and
(4) childhood memories.
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BRAND IMAGERY

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USER IMAGERY
DEMOGRAPHIC FACTORS MIGHT INCLUDE THE
FOLLOWING:
• • GENDER. VENUS RAZORS AND DOVE DEODORANT
HAVE “FEMININE” ASSOCIATIONS, WHEREAS GILLETTE
RAZORS AND AXE DEODORANT HAVE MORE
“MASCULINE” ASSOCIATIONS.
• • AGE. PEPSI COLA, STING ENERGY SPORTS DRINK,
AND KHADDI CLOTHING, ACCESSORIES HAVE
POSITIONED THEMSELVES AS FRESHER AND
YOUNGER IN SPIRIT THAN COKE, BONANZA, AND NIKE,
RESPECTIVELY.
• • RACE. KHYBER, KAWISH TELEVISION NETWORK HAVE
A STRONG IDENTIFICATION WITH THE PASHTUNS /
SINDHI MARKET.
• • INCOME. APPLE I PHONES, ASSOCIATED WITH
“YUPPIES”—YOUNG, AFFLUENT, URBAN
PROFESSIONALS.

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BRAND IMAGERY
• USER PROFILE/IMAGERY

• PURCHASE AND USAGE SITUATIONS/IMAGERY

• BRAND PERSONALITY AND VALUES

• BRAND HISTORY, HERITAGE, AND EXPERIENCES

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BRAND IMAGERY

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BRAND IMAGERY
• USER PROFILE/IMAGERY

• PURCHASE AND USAGE SITUATIONS/IMAGERY

• BRAND PERSONALITY AND VALUES

• BRAND HISTORY, HERITAGE, AND EXPERIENCES

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BRAND PERSONALITY AND VALUES
• SINCERITY

• EXCITEMENT

• COMPETENCE

• SOPHISTICATION

• RUGGEDNESS

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BRAND HISTORY, HERITAGE, AND
EXPERIENCES
• BRANDS MAY TAKE ON ASSOCIATIONS TO THEIR
PAST AND CERTAIN NOTEWORTHY EVENTS IN THE
BRAND’S HISTORY.
• ASSOCIATIONS MAY RECALL DISTINCTLY
PERSONAL EXPERIENCES AND EPISODES OR PAST
BEHAVIORS AND EXPERIENCES OF FRIENDS,
FAMILY, OR OTHERS
• CAN BE HIGHLY PERSONAL AND INDIVIDUAL, OR
MORE WELL-KNOWN AND SHARED BY MANY
PEOPLE
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BRAND HISTORY, HERITAGE, AND EXPERIENCES

• ASSOCIATIONS TO ASPECTS OF
THE BRAND’S MARKETING
PROGRAM,
• THE COLOR OF THE PRODUCT OR
• LOOK OF ITS PACKAGE,
• THE COMPANY OR
• PERSON THAT MAKES THE PRODUCT
• AND THE COUNTRY IN WHICH IT IS MADE,
• THE TYPE OF STORE IN WHICH IT IS SOLD,
• THE EVENTS FOR WHICH THE BRAND IS A SPONSOR,
• AND THE PEOPLE WHO ENDORSE THE BRAND
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BRAND JUDGEMENTS

• Customers’ Personal Opinions About And


Evaluations Of The Brand, Which Consumers
Form By Putting Together All The Different
Brand Performance And Imagery Associations.
 QUALITY
 CREDIBILITY
 CONSIDERATION
 SUPERIORITY

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BRAND JUDGEMENTS
QUALITY
• BRAND ATTITUDES ARE CONSUMERS’ OVERALL EVALUATIONS OF A BRAND
AND OFTEN FORM THE BASIS FOR BRAND CHOICE.
• BRAND ATTITUDES GENERALLY DEPEND ON SPECIFIC ATTRIBUTES AND
BENEFITS OF THE BRAND.
• HOTEL BRAND IS CHARACTERIZED BY CERTAIN ASSOCIATIONS THAT MATTER
TO THE CONSUMER FOR A HOTEL CHAIN, LIKE
• LOCATION;
• ROOM COMFORT,
• DESIGN,
• APPEARANCE;
• SERVICE QUALITY OF STAFF;
• RECREATIONAL FACILITIES;
• FOOD
• SECURITY;
• PRICES;

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BRAND JUDGEMENTS
 CREDIBILITY
• IS THE BRAND SEEN AS
• (1) COMPETENT, INNOVATIVE, AND A MARKET
LEADER (BRAND EXPERTISE);
• (2) DEPENDABLE AND KEEPING CUSTOMER
INTERESTS IN MIND (BRAND
TRUSTWORTHINESS);
• (3) FUN, INTERESTING, AND WORTH SPENDING
TIME WITH (BRAND LIKABILITY)?
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Brand Consideration

• How personally relevant customers


find the brand
• Unless consumer give serious
consideration and deem it relevant,
will keep a brand at a distance and
never closely embrace it.
• Depends on the extent to which strong
and favorable brand associations can
be created as part of the brand image.

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QUIZ # 1

1. DRAW BRAND RESONANCE PYRAMID WITH SUB-


DIMENSIONS OF BRAND BUILDING BLOCKS.

2. WHAT DO YOU UNDERSTAND BY BREADTH &


DEPTH OF AWARENESS OF BRAND?

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BRAND JUDGEMENTS

 QUALITY
 CREDIBILITY
 CONSIDERATION
 SUPERIORITY

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BRAND JUDGEMENTS
 SUPERIORITY

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BRAND
CUSTOMERS’ EMOTIONAL RESPONSES
FEELINGS
AND REACTIONS TO THE BRAND
• RELATE TO THE SOCIAL CURRENCY
EVOKED BY THE BRAND
• FEELINGS CAN BE:
• EXPERIENTIAL AND IMMEDIATE,
INCREASING IN LEVEL OF INTENSITY
1. WARMTH:
2. FUN
3. EXCITEMENT
4. SECURITY
5. SOCIAL APPROVAL
6. SELF-RESPECT

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BRAND FEELINGS

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BRAND RESONANCE
• BEHAVIORAL LOYALTY
• ATTITUDINAL
ATTACHMENT
• SENSE OF COMMUNITY
• ACTIVE ENGAGEMENT

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BRAND RESONANCE
• BEHAVIORAL LOYALTY
• REPEAT PURCHASES AND THE AMOUNT OR SHARE OF CATEGORY
VOLUME ATTRIBUTED TO THE BRAND, THAT IS, THE “SHARE OF CATEGORY
REQUIREMENTS.”

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BRAND RESONANCE
• AGENCY: OGILVY INDIA & OGILVY PAKISTAN
• CAMPAIGN: REAL GOODNESS INSIDE
• MESSAGE: SHARING SWEETNESS WITH REAL RELATIONSHIPS MAKES
IT EVEN SWEETER.
• EFFECTIVENESS:
• Peek Freans’ previous RIO biscuits campaigns ‘fun ka daily dose’, encouraged
the idea of children having fun by making fun of their elders.
• In complete contrast to RIO, here comes an ad of cake up that is instilling values
in children.
• Centred on a working mom and her son, the story shows how little things make a
big difference and when mom teaches good values to her son, the goodness
comes back to her; a lesson for all parents.
• The film could have been shorter by doing away with clichés such as the husband
not finding anything without his wife’s help.
• Emotional storytelling always works as it is engaging, entertaining and
memorable. Kudos to the team for putting together all the right ingredients!
• VERDICT: REAL GOODNESS INSIDE OUT! THUMBS UP TO CAKE UP!

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BRAND RESONANCE

ATTITUDINAL
ATTACHMENT
• A Strong Personal
Attachment.
• Something Special In
Broader Context
• “Love” The Brand
• Favourite Possession

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BRAND RESONANCE
• SENSE OF COMMUNITY

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BRAND RESONANCE
ACTIVE ENGAGEMENT
• STRONGEST BRAND LOYALTY OCCURS
• WHEN CUSTOMERS ARE ENGAGED, OR WILLING TO INVEST TIME,
ENERGY, MONEY, OR OTHER RESOURCES IN THE BRAND
• BEYOND THOSE EXPENDED DURING PURCHASE OR CONSUMPTION OF
THE BRAND

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BRAND BUILDING IMPLICATIONS
• CUSTOMERS OWN THE BRAND
• DON’T TAKE SHORTCUTS WITH BRANDS
• BRANDS SHOULD HAVE A DUALITY
• BRANDS SHOULD HAVE RICHNESS
• BRAND RESONANCE PROVIDES IMPORTANT FOCUS

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BRAND BUILDING IMPLICATIONS

CUSTOMERS OWN THE BRAND


• True measure of the strength of a brand is the way
consumers think, feel, and act with respect to that brand.
• The strongest brands will be those to which consumers
become so attached and passionate that they, in effect,
become evangelists or missionaries and attempt to share
their beliefs and spread the word about the brand.
• The power of the brand and its ultimate value to the firm
reside with customers.
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BRAND BUILDING IMPLICATIONS
DON’T TAKE SHORTCUTS WITH BRANDS
• THE LENGTH OF TIME TO BUILD A STRONG BRAND
• WILL THEREFORE BE DIRECTLY PROPORTIONAL TO THE
AMOUNT OF TIME IT TAKES TO CREATE SUFFICIENT
AWARENESS
• AND UNDERSTANDING SO THAT FIRMLY HELD AND
FELT BELIEFS AND ATTITUDES ABOUT THE BRAND ARE
• FORMED THAT CAN SERVE AS THE FOUNDATION FOR
BRAND EQUITY.
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BRAND BUILDING IMPLICATIONS

Brands should have a duality


• Duality—it appeals to both the head and the
heart
• Strong brands blend product performance and
imagery to create a rich, varied, but
complementary set of consumer responses to the
brand

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BRANDS SHOULD HAVE RICHNESS

• DEPTH: Top-of-mind. Recall


& recognition
• BREADTH Of brand
awareness and situations in
which consumers would
consider using the brand to
drive consumption and
increase sales volume

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BRAND BUILDING IMPLICATIONS
• BRAND RESONANCE PROVIDES
IMPORTANT FOCUS

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BRAND VALUE CHAIN
Implications of brand value chain
• Brand value chain is a structured approach to
assessing the sources and outcomes of brand equity and
the manner by which marketing activities create brand
value
• A necessary condition for value creation is a well-funded,
well-designed, and well-implemented marketing program
• Value creation requires more than the initial marketing
investment
• Allows to estimate shareholder value and the investor sentiment
multiplier through investor analysis and interviews

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VALUE STAGES
• Marketing Program Investment
• Program Quality Multiplier
• Customer Mind Set
• Marketplace Conditions Multiplier
• Market Performance
• Investor Sentiment Multiplier
• Shareholder Value

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Assumes that
Value of
Brand
Ultimately
FirmWhat
Investment How much &
resides with When
in Marketing
Customer Customers
Investor’s
Customers
Program
know and purchase,
Consider
market
feel about Price that
performance
they pay
Brand
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VALUE STAGES
Marketing program investment
• Any marketing program investment that can contribute to brand value development,
intentionally or not, falls into this first value stage.
• Outline many such marketing activities,
• Like product research,
• Development,
• design;
• Trade or intermediary support;
• Marketing communications including
• Advertising,
• Promotion,
• Sponsorship,
• Direct and interactive marketing,
• Personal selling,
• Publicity, and
• Public relations;
• And employee training.
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PROGRAM QUALITY MULTIPLIER
DRIVE
• 1. DISTINCTIVENESS:
• 2. RELEVANCE
• 3. INTEGRATED:
• 4. VALUE:
• 5. EXCELLENCE:

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GOT A MILK

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TO SUM UP...
• IMPLICATIONS OF BRAND VALUE CHAIN
• Value creation is a well-funded, well-designed, and
well-implemented marketing program
• Value creation requires more than the initial
marketing investment
• Allows to estimate shareholder value and the investor
sentiment multiplier through investor analysis and
interviews

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IS A COMPANY CONSUMER-CENTRIC?
• Is the company looking for ways to take care of
you?
• Does the company know its customers well enough
to differentiate between them?
• Is someone accountable for customers?
• Is the company managed for shareholder value?
• Is the company testing new customer offers and
learning from the results?
2.64

Sources: Larry Selden and Geoffrey Colvin, 2004.


CUSTOMER RELATIONSHIP
MANAGEMENT (CRM)
• USES A COMPANY’S DATA SYSTEMS AND
APPLICATIONS TO TRACK CONSUMER ACTIVITY
AND MANAGE CUSTOMER INTERACTIONS WITH
THE COMPANY

2.65
CUSTOMER EQUITY
• Blattberg and deighton (1996) offer eight guidelines as a means of
maximizing customer equity:

• Invest in highest-value customers first


• Transform product management into customer management
• Consider how add-on sales and cross-selling can increase customer
equity
• Look for ways to reduce acquisition costs
• Track customer equity gains and losses against marketing programs
• Relate branding to customer equity
• Monitor the intrinsic retainability of your customer
• Consider writing separate marketing plans—or even building two
marketing organizations—for acquisition and retention efforts
2.66
CUSTOMER EQUITY
• THE SUM OF LIFETIME VALUES OF ALL
CUSTOMERS
• CUSTOMER LIFETIME VALUE (CLV) IS AFFECTED BY
REVENUE AND BY THE COST OF CUSTOMER
ACQUISITION, RETENTION, AND CROSS-SELLING
• CONSISTS OF THREE COMPONENTS:
• VALUE EQUITY
• BRAND EQUITY
• RELATIONSHIP EQUITY

• RUST, ZEITHAMAL & LEMON, 2004


2.67
RELATIONSHIP OF CUSTOMER EQUITY
TO BRAND EQUITY
• Customers drive the success of brands but
brands are the necessary touchpoint that
firms have to connect with their customers.
• Customer-based brand equity maintains that
brands create value by eliciting differential
customer response to marketing activities.
• The higher price premiums and increased
levels of loyalty engendered by brands 2.68

generate incremental cash flows.


BRAND IMAGERY

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