CHAPTER 1

CHAPTER 2
Brand Knowledge: associative network memory model, as a network of nodes and links wherein the
brand node in memory has a variety of associations linked to it.

Two components:

 Brand image
  Brand awareness

Brand awareness : strength of the brand node or trace in memory, as reflected by consumers’ ability to
recall or recognize the brand under different conditions.

It has both depth and breadth.

 depth: measures the likelihood that consumers can recognize or recall the brand.
 breadth: measures the variety of purchase and consumption situations in which the brand
comes to mind.

Brand image is consumer perceptions of a brand as reflected by the brand associations held in
consumers’ memory.

Customer-based Brand Equity :- the differential effect of brand knowledge on consumer response
because of marketing of that brand. 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.

A brand has positive customer-based brand equity when customers react more favorably to a product
and the way it is marketed when the brand is identified than when it is not.

Sometimes only brand awareness is sufficient to cause favorable consumer response—for example, in
low-involvement decision settings where consumers are willing to base their choices merely on familiar
brands.

Brand Positioning (5-Steps)

1) Determine frame of reference

2) points-of-parity
3) points-of-difference
4) brand associations
5) brand mantra
1. Frame of Reference: identifying the target market and the nature of competition. Marketers need to
understand consumer behavior and the consideration sets that consumers adopt in making brand
choices

2. Points-of-difference associations: that are unique to the brand, strongly held, and favorably
evaluated by consumers. Should be strong, favorable, and unique based on desirability, deliverability,
and differentiation considerations, as well as the resulting anticipated levels of sales and costs.

3. Points-of-parity associations: associations that are not necessarily unique to the brand but may in fact
be shared with other brands.

1. Category points-of-parity associations are necessary to being a legitimate and credible

product offering within a certain category.
2. Competitive points-of-parity associations negate competitors’ points-of-differences.
3. Correlational points-of-parity negate any possible disadvantages or negatives that might also
arise from a point-of-difference.

4. Brand mantra is an articulation of the “heart and soul” of the brand (what) a three- to five-word
phrase (how) that captures the irrefutable essence or spirit of the brand positioning and brand values. Its
purpose is to ensure that all employees and all external marketing partners understand what the brand
is, most fundamentally, in order to represent it with consumers. (why)

The choice of these four ingredients determines the brand positioning and the desired brand
knowledge structures.