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CHAPTER 3:

BRAND RESONANCE AND THE BRABD


VALUE CHAIN

3.1
Building a Strong Brand: The Four Steps of Brand
Building

1. Ensure identification of the brand with customers and


an association of the brand in customers’ minds
2. Establish the 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

2.2
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
relationships)

2.3
Brand Building Blocks
 Notice the ordering of the steps in this branding ladder
 Six brand building blocks with customers that we can assemble in a
pyramid, with significant brand equity only resulting if brands reach the
top of the pyramid.
 The left side of the pyramid represents a more rational route and the
right side of the route represents a more emotional route.

2.4
Customer-Based Brand Equity Pyramid

4. RELATIONSHIPS =
Intense active loyalty What about you and me?
RESONANCE

Positive, accessible
reaction 3. RESPONSE =
JUDGMENTS FEELINGS What about you?

Point of parity and


point of difference 2. MEANING =
What are you?
PERFORMANCE IMAGERY

Deep, broad brand


awareness 1. IDENTITY =
SALIENCE Who are you?

2.5
Sub-Dimensions of CBBE Pyramid

LOYALTY
ATTACHMENT
COMMUNITY
ENGAGEMENT

WARMTH
QUALITY FUN
CREDIBILITY EXCITEMENT
CONSIDERATION SECURITY
SUPERIORITY SOCIAL APPROVAL
SELF-RESPECT

PRIMARY CHARACTERISTICS & USER PROFILES


SECONDARY FEATURES PURCHASE & USAGE
PRODUCT RELIABILITY, SITUATIONS
DURABILITY & SERVICEABILITY PERSONALITY &
SERVICE EFFECTIVENESS, VALUES
EFFICIENCY & EMPATHY HISTORY, HERITAGE
STYLE AND DESIGN & EXPERIENCES
PRICE

CATEGORY IDENTIFICATION
NEEDS SATISFIED
Salience Dimensions
Brand salience measures various aspects of the awareness of the brand and
how easily and often the brand is evoked under various situation and
circumstances.
Breadth and Depth of Awareness
 Depth of brand awareness- The depth of brand awareness measures how
likely it is for a brand element to come to mind, and the ease with which
it does so
 Ease of recognition and recall

 Strength and clarity of category membership

 Breadth of brand awareness-The breadth of brand awareness measures the


range of purchase and usage situations in which the brand element
comes to mind and depends to a large extent on the organization of
brand and product knowledge in memory.
 Purchase consideration

 Consumption consideration
2.7
 প্রথভত আমভ ততোভোকে চোই এে েো঩ চোকষ আমভ ততোভোকে চোই
মিতীষত আমভ ততোভোকে চোই ডোইকন ও ফোোঁকষ আমভ ততোভোকে চোই
তৃতীষত আমভ ততোভোকে চোই তদখো নো তদখোষ আমভ ততোভোকে চোই
ত঱ল ঩মন্ত য ততোভোকে চোই নো-ফরো েথোষ আমভ ততোভোকে চোই
 মনঝু ভ অন্ধেোকয ততোভোকে চোই ঱ীকলন্দু
য য তেোন নতু ন novel-এ
যোতকবোয ঴কর আমভ ততোভোকে চোই ঴ঠোত্ ঩঵কত ফ঳ো আকফোরতোকফোকর
঳েোকরয কেক঱োকয ততোভোকে চোই অকফোধে েমফতোষ ঠুুংময তখষোকর
঳কন্ধেয অফেোক঱ ততোভোকে চোই Slogan-এ Slogan-এ ঢোেো তদষোকর
 কফ঱োখী ঝক঵ আমভ ততোভোকে চোই তদষোকর
আলোকশয তভকঘ আমভ ততোভোকে চোই ঳মরর তচৌধুযীয তপকর আ঳ো গোকন
শ্রোফকণ শ্রোফকণ আমভ ততোভোকে চোই তচৌযোম঱ষোয ফোোঁম঱ ভুখমযত প্রোকণ
অেোরকফোধকন আমভ ততোভোকে চোই বুকর মোওষো ম঴ভোুংশু দত্ত'য ঳ুকয
ত঳ই েকফেোয অনুকযোকধয আ঳কয
 েকফেোয েরেোতো ঱঴কযয ঩কথ ততোভোকে চোই, ততোভোকে চোই
঩ুকযোকনো নতু ন ভুখ ঘকয ইভোযকত ততোভোকে চোই, ততোভোকে চোই
অগুমন্ত ভোনুকলয ক্লোন্ত মভমিকর অনুকযোকধ-মভনমতকত ততোভোকে চোই
অকচনো িুটিয তিোোঁষো তু মভ একন মদকর তফদনোয আমতযকত ততোভোকে চোই
 নোগমযে ক্লোমন্তকত ততোভোকে চোই দোফীদোওষো-চোম঴দোষ ততোভোকে চোই
এে তপোোঁিো ঱োমন্তকত ততোভোকে চোই রজ্জো-মিধোষ আমভ ততোভোকে চোই
ফহুদূয ত঴োঁ কি এক঳ ততোভোকে চোই অমধেোয ফুকঝ তনষো প্রখয দোফীকত
এ জীফন বোকরোকফক঳ ততোভোকে চোই ঳োযোযোত তজকগ আোঁেো র঵োেু িমফকত
 তচৌযোস্তোয তভোক঵, এ, তদোেোকন মি঩মিক঩ েমফতোয িকন্দ বোলোষ
঱঴কয, গকে-গ্রোকভ, এখোকন-ওখোকন গকদেয মুক্তিকত ফোোঁচোয আ঱োষ
ঘোকি-ফন্দকযঅকচনো এ, তচনো অন্দকয তশ্রণী঴ীন ঳ভোকজয মচয ফো঳নোষ
ফোমর঱, ততো঱ে, েোোঁথো, ঩ুকযোকনো চোদকয ঠোণ্ডো মদনফদকরয মখকদ বযো তচতনোষ
঱ীকতয যোকত তরক঩য আদকয মিধোিকন্দয মদন তঘোচোয স্বকে
েম঵েোকঠ, তচৌেোকঠ, ভোদুকয, ঩োক঩োক঱ ঳োভেফোকদয গোন ঘুকভ জোগযকণ
঴োম঳, যোগ-অমবভোকন, ঝগ঵ো আক঩োক঳ মফকষোকব-মফপ্লকফ ততোভোকে চোই
ততোভোকে চোই, ততোভোকে চোই বীলণ অ঳ম্ভকফ ততোভোকে চোই
ততোভোকে চোই, ততোভোকে চোই ঱োমন্ত-অ঱োমন্তকত ততোভোকে চোই
এই মফভ্রোমন্তকত ততোভোকে চোই 2.8
প্রথভত আমভ ততোভোকে চোই
Salience Dimensions
Product Category Structure
 To fully understand brand recall, we need to appreciate product category
structure, or how product categories are organized in memory.
 Marketers assume that products are grouped at varying levels of
specificity and can be organized in a hierarchical fashion.
 Thus, in consumers’ minds, a product hierarchy often exists with
 Product class information at the highest level (flavored and Non-
flavored)
 Product category information at the second-highest level (Alcoholic
and Nonalcoholic)
 Product type information at the next level (wine, beer or spirits)

 Brand information at the lowest level (light, strong, brewed by


method, price etc)
2.9
Salience Dimensions
Product Category Hierarchy

2.10
Salience Dimensions

Strategic Implications
 The product category hierarchy shows us not
only the depth of awareness matters but also the
breadth.
 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.

2.11
Brand Performance Dimensions
Brand performance: describe how well the product or service meets
customers more functional needs. It is intrinsic properties of the brand,
inherent product and service characteristics.
 Objective assessment of quality and
 What extent brand satisfy utilitarian, aesthetic and economic
customer needs and want of the product and service category
 Five important types of attributes and benefits often underline brand
performance:
 Primary characteristics and supplementary features
 Product reliability, durability, and serviceability
 Service effectiveness, efficiency, and empathy
 Style and design
 Price 2.12
Imagery Dimensions
 Brand Imagery depends on the extrinsic properties of the product and
services, including the ways in which the brand attempts to meet customer
psychological and social needs. It is the way people think about a brand
abstractly rather than what they think the brand actually does. Four
main types of intangible can be linked to a brand:
 User profiles
 Demographic and psychographic characteristics
 Actual or inspirational
 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 2.13
Judgment Dimensions: are customers’ personal opinions about and
evaluations of the brand, which customers form by putting together all the different brand
performance and imagery associations. Four types judgment are particularly important.

 Brand quality: Brand attitudes are consumers’ overall evaluation of a brand and often
form the basis for brand choice. Attitudes generally depends on specific attributes and
benefit of the brand.
 Value

 Satisfaction

 Brand credibility: the extent to which consumers see brand as credible in terms of three
dimensions:
 Expertise: competent, innovative and market leader

 Trustworthiness: dependable and keeping customer interest in mind

 Likeability: fun, interesting and worth spending.

 Brand consideration: depends in the part on how personally relevant customer find
the brand.
 Relevance

 Brand superiority
 Differentiation 2.14
Feelings Dimensions
 Warmth
 Fun
 Excitement
 Security
 Social Approval
 Self-respect

2.15
Resonance Dimensions
 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
2.16
Customer-Based Brand Equity Model

Consumer- INTENSE, ACTIVE


LOYALTY
Brand
Resonance

RATIONAL &
Consumer Consumer EMOTIONAL
Judgments Feelings REACTIONS

POINTS-OF-
PARITY &
Brand Brand POINTS-OF-
Performance Imagery DIFFERENCE

DEEP, BROAD
Brand Salience BRAND
AWARENESS
Application:
Identify the Key Drivers of Brand Equity

Performance Judgment
0.65
0.49

Resonance
0.17 0.66

0.58
0.24
Imagery Feelings
Brand Building Implications
 Customers own brands.
 Don’t take shortcuts with brands.
 Brands should have a duality.
 Brands should have richness.
 Brand resonance provides important focus.

2.19
The Brand Value Chain

 Broader perspective than just the CBBE model


 The 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.
 BVC has several premises:
 It assumes that value of a brand ultimately resides with customers.
 Firm value creation process begins when the firm invests in
marketing program targeting actual and potential customers.
 The associated marketing activities then affects the customer mind-
set--- what customers know and feel about the product.
 This mind set produces the brand performance in the market place-
how and when customers purchase, the price that they pay, and so
forth.
 The investment community consider this market performance. 8.20
Brand Value Chain

Marketing Customer Market Shareholder


VALUE Program Mindset Performance Value
STAGES
Investment
- Price premiums
- Product - Awareness - Stock price
- Price elasticity
- Communications - Associations - P/E ratio
- Market share
- Trade - Attitudes - Market capitalization
- Expansion success
- Employee - Attachment
- Cost structure
- Other - Activity
- Profitability

Program Consumer Market


FILTERS Multiplier Multiplier Multiplier

- Clarity - Channel support - Market dynamics


- Relevance - Consumer size and profile - Growth potential
- Distinctiveness - Competitive reactions - Risk profile
- Consistency - Brand contribution
Value Stages
 Marketing program investment
 Any marketing program that can be attributed to brand value development
 Program quality multiplier
 The ability of the marketing program to affect customer mindset
 Must be clear, relevant, distinct, and consistent

 Customer mindset
 In what way have customers been changed as a result of the marketing program?
How have those changes manifested themselves in customer mind-set?
 Customer mind-set includes everything that exist in the minds of customers with
respect to a brand: thoughts, feelings, experiences, images, perception, beliefs and
attitudes.
 Five dimensions are important measures of customer mind-set: brand awareness,
association, attitudes, brand attachment, and brand activity.
 Customer multiplier
 The extent to which value created in the minds of customers affects market
performance
 It depends on factors such as competitive superiority, channel support, and
customer size and profile 8.22
Value Stages

 Market performance
 How do customers respond in the marketplace? Six main ways.
 Market multiplier
 The extent to which the value generated through brand market
performance is manifested in shareholder value
 It depends on factors such as market dynamics, growth potential, risk
profile, and brand contribution
 Shareholder value:
 Based on available current and forecasted information about a brand,
financial market place formulates opinions and assessments that have very
direct financial implications for the brand value.
 Three particularly important indicators are the stock price, price /earnings
multiple, and overall market capitalization for the firm..

8.23

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