Brand Equity

Consumer-based Brand Equity: Creating Associations

The Brand (to this point) 

Back to the question that we asked on the first day of class:

What is a brand? Brain space A set of associations in memory Those associations that create differentiation related to the brand in memory, resulting in brand equity 

We have defined it as
± ± ±

What is Brand Equity?
Review ³The differential effect that brand knowledge has on consumer response to the marketing of that brand´  The unique ³brain-space´ that your brand occupies in the minds of your customers 

Brand equity 

Improves perception of product performance Makes company less vulnerable to competitive or environmental shocks Larger margins Increase marketing communication effectiveness Greater trade cooperation and support

How to create brand equity?  We create brand equity by creating an integrated Brand that: ± ± ± Maximizes the creation of brain-space By ensuring that every interaction with our company teaches and reinforces the brand promise So that our relationships with others will evolve .

The evolution of Brand equity creation  Brand equity is created in a progressive fashion ± ± ± ± Establish proper Brand Identity Create Brand meaning Elicit positive Brand responses Forge strong Brand relationship .

Brand Identity) What are you? (Brand Meaning) What about you? What do I think or feel about you? (Brand Response) What about you and me? What is our connection? (Brand Relationship) .Building Brand Equity: 4 Step Summary     Who are you? (Awareness.

Brand Equity Pyramid Relationship Relationship Response Judgments Feelings Performance Imagery Meaning Identity Identity .

Brand Relationship .

How can we measure each of these four stages of Brand Building?  Stage 1: Awareness ± ± ± ± What brands of product or service category can you think of? Have you ever heard of these brands? What brands might you likely use under the following situations? How frequently do you think of this brand? .

How can we measure each of these four stages of Brand Building?  Stage 2: Meaning ± ± ± ± ± Compared with other brands in this category. and other design aspects of this brand? To what extent do people you admire and respect use this brand? How well do Aakers attributes describe this brand? To what extent do you feel like you have ³grown up´ with this brand? Does it bring back pleasant memories? . feel. how well does this brand provide the basic function of the product or service category? How much do you like the look.

How can we measure each of these four stages of Brand Building?  Stage 3: Response (Judgments and feelings) ± ± ± ± Overall attitudes and opinions of the brand? How good a value is this brand? To what extent do the makers of this brand understand your needs/care about your opinions/have your interests in mind? Feelings of warmth/fun/excitement/security/selfrespect? .

How can we measure each of these four stages of Brand Building?  Stage 4: Resonance (Relationship) ± ± ± ± ± ± I consider myself loyal to this brand I feel this is the only brand of this product that I need I love this brand I identify with the people who use this brand/I feel a connection with the people who use this brand I am always interested in learning more about this brand I am proud to have others know that I use this brand .

How does Brand equity connect the past with the future?  Past Brand management expenditures are investments in what customers learned about the Brand ± Can be good or bad investments Consumers decide whether a future marketing program is acceptable Midstream change costs in terms of real dollars AND dilution or reconstruction of brain space  Past investments constrain future directions ± ± .

pricing. placement .Cultivating Brand Equity Step 1: Selecting Brand elements ± ± Symbols Criteria Step 2: Creating Associations ± ± ± Integrated marketing communications Effective advertising communication Effective promotion.

Cultivating BE: Brand Elements  Brand Elements ± ± ± Summarize associations Aid retrieval of brand information Simplify new learning  Types of Brand Elements ± ± ± ± Brand Name (Apple. Microsoft) Logos and Symbols (Nike Swoosh) Characters (California Raisins) Slogans and Jingles (I¶m Lovin¶ it) 16 .

Rich Imagery Within and across product and national boundaries Updatable.Brand Elements: Criteria       Memorable ± Easily recognized and recalled Descriptive and persuasive Fun. Interesting. flexible Meaningful ± Likable ± Transferable ± Adaptable ± Protectable .

Brand Name Types     Actual words ± Energizer Microsoft Maytag GE Coined (Descriptive) ± Coined (Abstract) ± Acronym Names ± .

3.Brand Name Generation Process 1. ± ± ± ± ± Prioritize Goals for Brand Name Meaning Memorable Likable Adaptable Transferable 2. ± ± List Generation Screening Legal Search Consumer Testing .

upwardly mobile professionals) Morpheme: Smallest linguistic unit of meaning Letter sounds convey meaning     Word stems and morphemes ± Plosives and Sibilants ± Q¶s. X¶s. Cutting edge .³Meaningfulness´ Factors Existing words (or historical references) ± ±  Mayflower moving The Savoy (Black. Z¶s X: Extreme.

and ³loft´ equals elevation. Tyco: ³t´ and ³k´ associated with ³active´ Viagara: Suggests ³Niagara´ . but ³ac´ suggests ³action´ Zoloft: ³zo´ = ³life´ in Greek. and ³berry´ suggests smallness. Alliteration is lighthearted. Prozac: ³pro´ is pedestrian. Z is very daring.Linguistics & ³Sound Symbolism´ BlackBerry: ³b´ suggests relaxation. Enron: The repetition of ³n´ at the end of each syllable produces a ³whirring´ sound suggesting a spinning motion.

Faconnable. Raid.Memorability Factors  Simple to spell and pronounce ± Aids recall   Aim. but may have preexisting associations with it  Dodge Neon  Distinctive ± Increases recognition separates from clutter . Ban Difficult to pronounce? FCUK. Hundai  Familiar ± Pre-exists in memory: Less learning.

consider whether the name is: Memorable Meaningful Likable Adaptable Transferable Protectable    Set 1 EBay Amazon Yahoo    Set 2 Garden.Brand Naming Discussion: Electronic Commerce Names For each of these word .com Pets.

Logos and Symbols Word Marks: Abstract Logos: Literal Logos: .

Repeated Exposure ‡ Do you think that the swoosh in the middle of the page is effective? ‡ Is it just chance? ‡ What is the benefit of putting the swoosh there? .

³personal´ self.Kleine. and Kernan 1993: Mundane consumption and the self  Social Identity theory (Tajfel and Turner 1979) ± Individuals do not have one. Kleine. but multiple several selves that correspond to a widening circle of group membership. The individual¶s self-concept is derived for perceived membership in social groups   Multiple social identities ± Our prior discussions about your ³MBA´ self versus your ³relationship partner´ self .

Roles vs. Identities  Role ± ± Expected behaviors (consensual between you and society) related to one¶s position in society Society might be thought of as the aggregation of all of those roles Self knowledge related to behavior within a social group The Individual is the sum of all of these identies  Identity ± ± .

How do possessions reflect on the self-concept?   Prior to this paper. it was generally assumed that people bought brands AS reflections of the self However. this paper says that people buy brands in order to facilitate or maintain social self-identities ± Products (brands) are instrumental (enabling) in behavior. rather than as ends in themselves .

.E1: summary  Activate 5 schemas ± ± ± ± ± Athletic self-identity Possessions of the athletic self-identity Goal of athletic identity Role of athletic identify Global self  Dump data into SEQ. turn the crank«.

the possessions (products or brands) that individuals associated with a particular selfidentity do not necessarily match with an individuals global self  This suggests that self-identities are more important in behavior than global selfconcept .E1: Summary  Identity Related Possessions Schema linked to Identity schema. not to Global self ± Thus.

student and worker identities (p.227) Wave the magic wand and«. behavior frequency. other antecedents of athlete.E2: Identity salience and behavior   Measure salience. .

what matters is how a person perceives other peoples reactions to the use of those possessions . Why? ± Having the possessions is not enough. except Identity possessions.Results    Salience differed for each identity Behavior was driven by salience of identity and not by other identities All inputs to salience are significant.

Aaker 1997: Dimensions of Brand Personality  Brand Personality ± Set of human characteristics associated with a brand  Emotional and Cognitive  Brands allow for self-expression ± ± Ideal and actual self Mundane consumption (Kleine et al 1993) .

and marketing research free association Ss rated traits as descriptive of brands in general   Second. pare the list down ± ± Cutoff value (6) for inclusion 114 final traits .This is a scale development paper  First. advertising. generate trait lists ± 309 traits. found by using previously developed scales from personality scales in psych and business.

pick portfolio of brands to test traits with ± ± 37 brands chosen Ss responded to ³subsets´ of brands. then all answers were aggregated Groups matrix of data into interpretable clusters   Fourth. Factor analysis ± Aaker found 5 of them .Methodology continued  Third.

Confirming the factors   Sincerity. sophistication. and ruggedness Test-retest ± Ss returned and did the same project again  stable over time (this is good)  Second sample of brands was selected ± Confirmatory FA found good fit of factors to data . competence. excitement.

Aaker conclusions   Included factors represent good picture of Brand Personality Generalizable across brands and product categories .

´ Can serve as retrieval cue ± Repetition creates liking ± Reinforces key association ± ..Brand Labels: Slogans & Jingles     Encourages message rehearsal ± Can¶t get it out of your head Hearing the jingle or slogan activates KS in memory Mere exposure.. ³Like a good neighbor.

Case Study: McDonald¶s  Watch these ads and ask: ± ± Does this jingle/slogan increase awareness? What are the meanings conveyed by the jingle/slogan?  Polysemy ± ± Does the Jingle/slogan fit with the other images in the ad? Does Justin Timberlake make the Jingle more effective? .

Designing Marketing programs to build Brand equity  Once you have your Brand Identity. you must communicate that to your customers ± Brand Conveyers in the IBM  How do we design marketing activities that will maximize the creation of brand equity? .

3. 2. What is the state of your customers¶ current brand knowledge? What do you wish your customers knew? (POD and POP) How do your communications help get the brand from current to desired brand knowledge? .A simple test for marketing communication effectiveness Current Customer Brand Knowledge Communication Desired Customer Brand Knowledge 1.

Creating Brands: Advertising 1991 1985 1975 1971 ‡ Affluence. exclusivity ‡ Fun to drive ‡ Affluence. exclusivity ‡ Fun to drive ‡ Fun to drive ‡ Economical ‡ International 42Desirability ‡ .

Guidelines for evaluating an Ad campaign  Two parts to an ad campaign effectiveness ± ± Message Strategy Creative Strategy Positioning to maximize brand equity Identify the best creative strategy  Two concerns in creating the campaign ± ± .

Types of creative strategies  Informational ± ± ± ± Problem-solution Demonstration Product comparison Testimonial Typical or aspirational usage situation or person Brand personality and values  Transformational ± ± .

Creative strategies  Motivational techniques ± ± ± ± ± ± Humor Warmth Sex appeal Music Fear Special effects .

what elements are present? ± ± ± Motivational Informational Transformational .Discussion: Nissan Motors   Good Campaigns incorporate multiple elements As we watch.