Brand Equity Units 2 and 3

Dr. Shahaida P

Customer-Based Brand Equity
‡ The differential effect that brand knowledge has on consumer response to the marketing of that brand.
Keller, 1993

1.2

Customer-Based Brand Equity
‡ Differential effect
± Differences in consumer response

‡ Brand knowledge
± A result of consumers knowledge about the brand

‡ Consumer response to marketing
± ± ± ± Choice of a brand Recall of copy points from an ad Response to a sales promotion Evaluations of a proposed brand extension

1.3

Sources of brand equity
‡ Brand awareness
± Brand recognition ± Brand recall

‡ Brand image
± Strong, favorable, and unique brand associations

1.4

Aaker s definition of brand equity
Brand equity

Brand awareness

Perceived quality

Brand associations

Brand loyalty

Brand equity is defined as the brand assets (or liabilities) linked to a brand s name and symbol that add to (or subtract from) a product or service
1.5

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

1.6

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)
1.7

CustomerCustomer-Based Brand Equity Pyramid
4. RELATIONSHIPS = RESONANCE What about you and me?

3. RESPONSE = JUDGMENTS FEELINGS What about you?

2. MEANING = PERFORMANCE IMAGERY What are you?

1. IDENTITY =

SALIENCE
1.8

Who are you?

SubSub-Dimensions of CBBE Pyramid
LOYALTY ATTACHMENT COMMUNITY ENGAGEMENT

QUALITY CREDIBILITY CONSIDERATION SUPERIORITY

WARMTH FUN EXCITEMENT SECURITY SOCIAL APPROVAL SELF-RESPECT

PRIMARY CHARACTERISTICS & SECONDARY FEATURES PRODUCT RELIABILITY, DURABILITY & SERVICEABILITY SERVICE EFFECTIVENESS, EFFICIENCY & EMPATHY STYLE AND DESIGN PRICE

USER PROFILES PURCHASE & USAGE SITUATIONS PERSONALITY & VALUES HISTORY, HERITAGE & EXPERIENCES

CATEGORY IDENTIFICATION NEEDS SATISFIED

1.9

Unit 3 http://www.scribd.com/doc/317 11644/Brand-Building-Model
Brand Positioning

Brand positioning
‡ . . . the act of designing the company s offer and image so that it occupies a distinct and valued place in the target customer s minds.
Philip Kotler

1.11

Determining a frame of reference
‡ What are the ideal points-of-parity and pointsof-difference brand associations vis-à-vis the competition? ‡ Marketers need to know:
± Who the target consumer is ± Who the main competitors are ± How the brand is similar to these competitors ± How the brand is different from them
1.12

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. ‡ Market segmentation requires making tradeoffs between costs and benefits.
3.13

Example of the toothpaste market
‡ Four main segments:
1. 2. 3. 4. Sensory: Seeking flavor and product appearance Sociables: Seeking brightness of teeth Worriers: Seeking decay prevention Independent: Seeking low price

1.14

Points-of-Parity and Points-of-Difference
‡ Points-of-difference (PODs) are 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. ‡ Points-of-parity associations (POPs), on the other hand, are not necessarily unique to the brand but may in fact be shared with other brands.
1.15

Defining and Communicating the Competitive Frame of Reference
‡ Defining a competitive frame of reference for a brand positioning is to determine category membership. ‡ The preferred approach to positioning is to inform consumers of a brand s membership before stating its point of difference in relationship to other category members.

1.16

Choosing POP s & POD s
‡ Desirability criteria (consumer perspective)
± Personally relevant ± Distinctive and superior ± Believable and credible

‡ Deliverability criteria (firm perspective)
± Feasible ± Profitable ± Pre-emptive, defensible, and difficult to attack
1.17

Attribute and Benefit Trade-offs
‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Price and quality Convenience and quality Taste and low calories Efficacy and mildness Power and safety Ubiquity and prestige Comprehensiveness (variety) and simplicity Strength and refinement
3.18

Strategies to Reconcile Attribute and Benefit Trade-offs
‡ Establish separate marketing programs ‡ Leverage secondary association (e.g., co-brand) ‡ Re-define the relationship from negative to positive

3.19

Core Brand Values
‡ Set of abstract concepts or phrases that characterize the five to ten most important dimensions of the mental map of a brand ‡ Relate to points-of-parity and points-ofdifference
‡ Mental map Core brand values Brand mantra

3.20

Brand Mantras
‡ An articulation of the heart and soul of the brand ‡ similar to brand essence or core brand promise ‡ Short three- to five-word phrases that capture the irrefutable essence or spirit of the brand positioning and brand values ‡ Considerations
± Communicate ± Simplify ± Inspire

3.21

Designing the Brand Mantra
‡ The term brand functions describes the nature of the product or service or the type of experiences or benefits the brand provides. ‡ The descriptive modifier further clarifies its nature. ‡ The emotional modifier provides another qualifier³how exactly does the brand provide benefits, and in what way?
3.22

Designing the Brand Mantra
Emotional Modifier Descriptive Modifier
Athletic

Brand Functions
Performance

Nike

Authentic

Disney

Fun

Family

Entertainment

Fun

Folks

Food
3.23

Internal Branding
‡ Members of the organization are properly aligned with the brand and what it represents. ‡ Crucial for service companies

3.24

Brand Audit
‡ Externally, consumer-focused assessment ‡ A comprehensive examination of a brand involving activities to assess the health of the brand, uncover its sources of equity, and suggest ways to improve and leverage that equity ‡ It includes brand vision, mission, promise, values, position, personality, and performance

3.25

Importance of Brand Audits
‡ Understand sources of brand equity
± Firm perspective ± Consumer perspective

‡ Set strategic direction for the brand ‡ Recommend marketing programs to maximize long-term brand equity

3.26

Brand Audit Steps
‡ Brand inventory (supply side) ‡ Brand exploratory (demand side)

3.27

Brand Inventory
‡ A current comprehensive profile of how all the products and services sold by a company are branded and marketed:
± Brand elements ± Supporting marketing programs ± Profile of competitive brands ± POPs and PODs ± Brand mantra

3.28

Brand Inventory (Cont.)
‡ Suggests the bases for positioning the brand ‡ Offers insights to how brand equity may be better managed ‡ Assesses consistency in message among activities, brand extensions, and sub-brands in order to avoid redundancies, overlaps, and consumer confusion

3.29

Brand Exploratory
‡ Provides detailed information as to how consumers perceive the brand:
± Awareness ± Favorability ± Uniqueness of associations

‡ Helps identify sources of customer-based brand equity ‡ Uncovers knowledge structures for the core brand as well as its competitors
3.30

Suggested Brand Audit Outline
Brand audit objectives, scope, and approach Background about the brand (self-analysis) Background about the industries Consumer analysis (trends, motivation, perceptions, needs, segmentation, behavior) ‡ Brand inventory ‡ ‡ ‡ ‡
± ± ± ± ± Elements, current marketing programs, POPs, PODs Branding strategies (extensions, sub-brands, etc.) Brand portfolio analysis Competitors¶ brand inventory Strengths and weaknesses 3.31

Brand Audit Outline (Cont.)
‡ Brand exploratory
± Brand associations ± Brand positioning analysis ± Consumer perceptions analysis (vs. competition)

‡ ‡ ‡ ‡

Summary of competitor analysis SWOT analysis Brand equity evaluation Strategic brand management recommendations

3.32

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