2.

Identifying and Establishing

Brand Positioning and Values
 Customer-based brand equity
 Sources of brand equity
 Identifying & establishing brand positioning
 Defining a brand mantra
Building a strong brand: The four steps of brand building
 The brand value chain

2.1
2.2
Great brands are not accidents.

2.3
Brands are a result of thoughtful
and imaginative planning.

2.4
Creative brand strategies involve three tools or models:
1. Brand positioning model describes how to establish
competitive advantages in the minds of customers in the
marketplace;

2. Brand resonance model describes how to take these

competitive advantages and create intense, active loyalty
relationships with customers for brands; and

3. Brand value chain model describes how to trace the value

creation process to better understand the financial impact
of marketing expenditures and investments to create loyal
customers and strong brands.

2.5
Brand equity
Customer base brand equity

Brand positioning

2.6
☼ Customer-Based Brand Equity [CBBE]
 The C B B E concept approaches brand equity from the
perspective of the consumer.

 The basic premise of the CBBE concept is that the power

of a brand lies in what c u s t o m e r s have learned, felt,
seen, and heard about the brand as a result of their
experiences over time.

 In other words, the power of a brand lies in what resides

in the minds and hearts of customers.

2.7
☼ Customer-Based Brand Equity [CBBE]
 C u s t o m e r - b a s e d b r a n d e q u i t y is the differential
effect that brand knowledge has on consumer response to
the marketing of that brand.

 A brand has positive customer-based brand equity when

consumers react more favorably to a product.

 A brand has negative customer-based brand equity if

consumers react less favorably to marketing activity for
the brand compared with an unnamed or fictitiously named
version of the product.

2.8
 Customer-Based Brand Equity
Three elements of the definition of CBBE: p.69

 Differential effect
Differences in consumer response
 Brand knowledge
A result of consumers’ knowledge about the brand
 Consumer response to marketing
Perceptions
Preferences
Behavior related to all aspects of brand marketing:
o Choice of a brand
o Recall of copy points from an ad
o Response to a sales promotion
o Evaluations of a proposed brand extension
2.9
Figure 2.1- Marketing Advantages of Strong Brands

2.10
 Brand Equity as a Bridge
• Brand equity provides marketers with a vital strategic bridge from
their past to their future.

• Funds spent on manufacturing and marketing products should not

be considered as “expenses” but as “investments” in what consumers
saw, heard, learned, felt, and experienced about the brand.

• If not properly designed and implemented, these expenditures may

not be good investments, in that they may not have created the right
knowledge structures in consumers’ minds.

2.11
☼ 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 is related to the strength of the brand node
or trace in memory, which we can measure as the consumer’s
ability to identify the brand under different conditions.

 Brand image is consumers’ perceptions about a brand, as

reflected by the brand associations held in consumer memory.
2.12
☼ Making a Brand Strong: Brand Knowledge

 Brand image can be measured by Associative Network

Memory Model.

2.13
 ☼ Sources of Brand Equity
What causes brand equity to exist? How do marketers create it?

 Brand awareness
 Brand recognition
 Brand recall
 Brand image
 Strong, favorable, and unique brand associations

2.14
 Brand awareness
 Brand recognition is consumers’ ability to
confirm prior exposure to the brand when given the
brand as a cue.

 Brand recall is 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.

2.15
 Brand awareness: Advantages

 Learning advantages
 Register the brand in the minds of consumers
 Consideration advantages
 Likelihood that the brand will be a member of
the consideration set
 Choice advantages
 Affect choices among brands in the
consideration set

2.16
 Brand awareness: Establishing Brand Awareness
How do marketers create brand awareness? p.75

 Increasing the familiarity of the brand through

repeated exposure (for brand recognition).

 Forging (building) strong associations with the

appropriate product category or other relevant
purchase or consumption cues (for brand recall).

2.17
 Brand Image: Creating a positive brand image takes marketing

Creating a positive brand image takes marketing

programs that link (1) strong, (2) favorable, and (3)
unique associations to the brand in memory.

 Brand associations may be either brand

attributes or benefits.
 Brand attributes are those descriptive features that
characterize a product or service.
 Brand benefits are the personal value and meaning that
consumers attach to the product or service attributes.
2.18
 Brand Image: Creating a positive brand image takes marketing
 Factors that affect the strength, favorability, and
uniqueness of brand associations.
 Strength of brand association
 Favorability of Brand Associations
 Uniqueness of Brand Associations

2.19
 Brand Image: Creating a positive brand image takes marketing
 Factors that affect the strength, favorability, and
uniqueness of brand associations.
=> Strength of brand association:
Two factors that strengthen association to any piece of
information are
 its personal relevance, and
 the consistency with which it is presented over time.

In general, direct experiences create the strongest brand

attribute and benefit associations and are particularly
influential in consumers’ decisions when they accurately
interpret them.
2.20
 Brand Image: Creating a positive brand image takes marketing
 Factors that affect the strength, favorability, and
uniqueness of brand associations.
=> Favorability of Brand Associations:
o Convincing/trustworthy: 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.
o Flexible: Brand associations may be situation or
context-dependent and vary according to what
consumers want to achieve in that purchase or
consumption decision.
2.21
 Brand Image: Creating a positive brand image takes marketing
 Factors that affect the strength, favorability, and
uniqueness of brand associations.
 Uniqueness of Brand Associations :
o The essence of brand positioning is that the brand has a
sustainable competitive advantage or “unique selling
proposition” that gives consumers a compelling reason
why they should buy it.
o Marketers can make this unique difference explicit
through direct comparisons with competitors, or they may
highlight it implicitly. They may base it on performance-
related or non-performance-related attributes or benefits.

2.22
☼ Identifying and Establishing Brand Positioning

Basic Concepts

Target Market

Nature of Competition

Points-of-Parity and Points-of-Difference

2.23
  Brand positioning

 Brand positioning
 Act of designing the company’s offer and image so
that it occupies a distinct and valued place in the target
customers’ minds
 Finding the proper “location” in the minds of
consumers or market segment
 Allows consumers to think about a product or service
in the “right” perspective
 Deciding on a positioning requires the marketer
need to know:
(1) who the target consumer is,
(2) who the main competitors are,
(3) how the brand is similar to these competitors, and
(4) how the brand is different from them.

2.25
  Target Market

 A market is the set of all actual and potential buyers

who have sufficient interest in, income for, and
access to a product.
 Market segmentation divides the market into
distinct groups of homogeneous consumers who
have similar needs and consumer behavior, and who
thus require similar marketing mixes.

2.26
Figure 2.3 - Consumer Segmentation Bases

2.27
 Funnel Model
The classic “funnel” model traces consumer behavior in terms of initial
awareness through brand-most-often-used. Figure shows a hypothetical
pattern of results.
For the purposes of brand building, marketers want to understand both
(1) the percentage of target market that is present at each stage and
(2) factors facilitating or inhibiting the transition from one stage to the
next.

Figure 2.5 - Hypothetical Examples of Funnel Stages and Transitions

 Nature of Competition

 Competitive analysis
 Indirect competition
 Multiple frames reference

2.29
 Competitive analysis
Competitive analysis considers a whole host of
factors—including the resources, capabilities,
and likely intentions of various other firms—in
order for marketers to choose markets where
consumers can be profitably served.

2.30
 Indirect competition
Indirect competition is the conflict between
vendors whose products or services are not the
same but that could satisfy the same consumer
need. For example, coffee and mineral water are
indirect competitors.
The term contrasts with direct competition, in
which businesses are selling products or services
that are essentially the same.

2.31
 Multiple frames reference
The competitive frame of reference is a fancy way of
describing the market or context in which you choose to
position your brand.

You may find it necessary to position your brand in multiple

competitive frames of reference. Perhaps there is one
primary frame of reference and one or two secondary
frames of reference as well.
Example: Patho ---
bike ride => first frame
car ride => second frame
2.32
Points of Parity and Points of Difference

 Points-of-difference associations
 Points-of-parity associations
 Points-of-parity versus points-of-difference

2.33
 Points-of-difference associations
Points-of-difference (PODs) are formally defined as
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.
o Points-of-difference may rely on performance attributes, or
performance benefits.
o In other cases, PODs come from imagery associations.
o Many top brands attempt to create a point-of-difference on
“overall superior quality,” whereas other firms become the
“low-cost provider” of a product or service.
2.34
 Points-of-difference associations
PODs are generally defined in terms of consumer benefits.
Consumer benefits often have important underlying “proof
points” or reasons to believe (RTBs).
 These proof points can come in many forms:
 functional design concerns (a unique shaving system technology,
leading to the benefit of a “closer electric shave”);
 key attributes (a unique tread design, leading to the benefit of “safer tires”);
 key ingredients (contains fluoride, leading to the benefit of “prevents dental
cavities”); or
 key endorsements (recommended by more audio engineers, leading to the
benefit of “superior music fidelity”).

2.35
 Points-of-parity associations
Points-of-parity associations (POPs) are not necessarily
unique to the brand but may in fact be shared with
other brands.
POPs are three types:
 category,

 competitive, and

 correlational

2.36
 Points-of-parity associations
 Category points-of-parity represent necessary—but not
necessarily sufficient—conditions for brand choice.

They exist minimally at the generic product level and are most
likely at the expected product level.
Category POPs may change over time because of
o technological advances,

o legal developments, and

o consumer trends.

2.37
 Points-of-parity associations
Competitive points-of-parity are those associations designed to
negate competitors’ points of-difference.

2.38
 Points-of-parity associations
 Correlational points-of-parity are those
potentially negative associations that arise from the
existence of other, more positive associations for
the brand.

2.39
 Points of Parity and Points of Difference
Home task:

Point out the PODs and POPs

of OTOBI, Partex, Hatil

2.40
Positioning Guidelines

Defining and Communicating the Competitive Frame of

Reference

Choosing Points-of-Difference

Establishing Points-of-Parity and Points-of-Difference

Straddle Positions

Updating Position Overtime

Developing a Good Positioning

2.41
 ☼ Brand Mantra
 A brand mantra is a short, three- to five-word phrase that captures the
irrefutable essence or spirit of the brand positioning.
 It’s similar to “brand essence” or “core brand promise,” and its
purpose is to ensure that all employees and external marketing partners
understand what the brand most fundamentally is to represent to consumers so
they can adjust their actions accordingly.
 Brand mantras can provide guidance about what products to introduce
under the brand, what ad campaigns to run, and where and how the
brand should be sold.
 Brand mantras help the brand present a consistent image.
 The brand mantra signals its meaning and importance to the firm, as
well as the crucial role of employees and marketing partners in its
management.
 It also provides memorable shorthand as to what are the crucial
considerations of the brand that should be kept most salient and top-of-
mind.
2.42
 ☼ Brand Mantra
McDonald’s Food, Folks, and Fun
Nike Authentic athletic performance
Disney Fun Family Entertainment
Dove Real beauty for real people
Coca-cola Sharing-Happiness-Tasty
BMW Ultimate driving machine

2.43
 ☼ Brand Mantra
Considerations
 Communicate

 Simplify

 Inspire

2.44
 ☼ Brand Resonance Model:
The Four Steps of Brand Building

Brand Resonance Model describes how to create intense,

active loyalty relationships with customers.

The model considers how brand positioning affects

 what consumers think, feel, and do

and
 the degree to which they resonate or connect with a brand.

2.45
☼ Brand Resonance Model: The Four Steps of Brand Building

The Four Steps of Brand Building /brand ladder

1. Brand Identity : Ensure identification of the brand
with customers and an association of the brand in
customers’ minds
2. Brand Meaning: Establish the totality of brand
meaning in the minds of consumers
3. Brand Responses: Elicit the proper customer
responses to the brand identification and brand
meaning
4. Brand Relationships: Convert brand response to
create brand resonance and an intense, active loyalty
relationship between customers and the brand.
2.46
☼ Brand Resonance Model: The Four Steps of Brand Building

The four steps represent a set of fundamental questions

that customers invariably ask about brand:

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 relationships)

2.47
☼ Brand Resonance Model: The Four Steps of Brand Building

Brand Resonance Pyramid

2.48
 ☼ Brand Resonance Model: The Four Steps of Brand Building

Subdimensions of Brand Building Blocks

2.49
 a) Salience Dimensions

Brand salience measures various aspects of the

awareness of the brand and how easily and often
the brand is evoked under various situations or
circumstances.
Brand Awareness: depth and breadth
Product Category Structure

2.50
Brand Awareness: depth and breadth
 Depth of brand awareness
 Ease of recognition and recall
 Strength and clarity of category membership

 Breadth of brand awareness

 Purchase consideration
 Consumption consideration

Product Category Structure

 To fully understand brand recall, we need to
appreciate product category structure, or how product
categories are organized in memory. 2.51
Brand Awareness: depth and breadth

2.52
 b) Performance Dimensions
Brand performance describes how well the product
or service meets customers’ more functional needs.
 Five important types of attributes and benefits
often underlie brand performance
1. Primary characteristics and supplementary features
2. Product reliability, durability, and serviceability
3. Service effectiveness, efficiency, and empathy
4. Style and design
5. Price
2.53
 c) Imagery Dimensions
Many kinds of intangibles can be linked to a brand, but four main ones are:

 User profiles
 Demographic and psychographic characteristics
 Actual or aspirational
 Group perceptions—popularity
 Purchase and usage situations
 Type of channel, specific stores, ease of purchase
 Time (day, week, month, year, etc.), location, and context of usage
 Personality and values
 Sincerity, excitement, competence, sophistication, and ruggedness
 History, heritage, and experiences
 Nostalgia
 Memories

2.54
 d) Judgment Dimensions
Brand judgments are customers’ personal opinions about and
evaluations of the brand, which consumers form by putting
together all the different brand performance and imagery
associations.
4 types of judgments with respect to a brand:

 Brand quality  Brand consideration

 Value  Relevance
 Satisfaction
 Brand superiority
 Brand credibility  Differentiation
 Expertise
 Trustworthiness
 Likeability

2.55
 e) Feelings Dimensions
Brand feelings are customers’ emotional responses
and reactions to the brand. Brand feelings also
relate to the social currency evoked by the brand.
6 important types of brand-building feelings are:
 Warmth
 Fun
 Excitement
 Security
 Social Approval
 Self-respect
2.56
 f) Resonance Dimensions
Brand resonance describes the nature of this relationship and
the extent to which customers feel that they are “in sync” with
the brand.
 Behavioral loyalty
 Frequency and amount of repeat purchases
 Attitudinal attachment
 Love brand (favorite possessions; “a little pleasure”)
 Proud of brand
 Sense of community
 Kinship
 Affiliation
 Active engagement
 Seek information
 Join club
 Visit website, chat rooms

2.57
 ☼ 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.

2.58
 ☼ 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.

2.59
2.60