BRAND

RESONANCE AND
BRAND VALUE
CHAIN
Product Management
 Come, Holy Spirit, Divine Creator, true source of light and fountain of wisdom!
Pour forth your brilliance upon my dense intellect, dissipate the darkness which
covers me, that of sin and of ignorance. Grant me a penetrating mind to
understand, a retentive memory, method and ease in learning, the lucidity to
comprehend, and abundant grace in expressing myself. Guide the beginning of
my work, direct its progress, and bring it to successful completion. This I ask
through Jesus Christ, true God and true man, living and reigning with You and
the Father, forever and ever. Amen.

Prayer
Menti.com
 BRAND
RESONANCE AND
BRAND VALUE
CHAIN
Product Management
At the end of the lesson, you are expected to:

1. Define brand resonance.

2. Describe the steps in building brand
resonance.
3. Define the brand value chain.
4. Identify the stages in the brand value chain.
5. Contrast brand equity and customer equity.
 Brand Resonance and Brand Value Chain
Model
Brand Resonance: describe how to create intense, active loyalty
relationship with customers – considers how brand positioning
affects what customer think, feel and do and the degree to
which they resonance/connected.

Brand Value Chain: by which marketers can trace the value

creation process for their brand to better understand the
financial impact of their marketing expenditures and
investments
MARKETING GAME
 MARKETING GAME

List down the BRANDS that you

think landed in the
TOP 10 Brands for 2021 in the
Philippines.
BUILDING A STRONG BRAND: THE FOUR STEPS OF BRAND
BUILDING
The brand resonance model looks at building a brand as a sequence of steps,
each of which is contingent on successfully achieving the objectives of the
previous one. The steps are as follows:
1. Ensure identification of the brand with customers and an association of the
brand in customers’ minds with a specific product class, product benefit, or
customer need.
2. Firmly establish the totality of brand meaning in the minds of customers by
strategically linking a host of tangible and intangible brand associations.
3. Elicit the proper customer responses to the brand.
4. Convert brand responses to create brand resonance and an intense,
active loyalty relationship between customers and the brand.
 FOUR QUESTIONS CUSTOMERS ASK OF BRANDS

The previous steps represent a set of fundamental questions that

customers invariably ask about the 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)
BRAND RESONANCE PYRAMID
SUBDIMENSIONS OF BRAND BUILDING
BLOCKS
 LEARNING OUTCOME

Create the
Brand Resonance
Pyramid of
Realme.
 THE ORDERING STEPS IN BRAND
LADDERING
• Cannot establish meaning unless we have
created identity
• Responses cannot occur unless we have
developed the right meaning
• Cannot forge relationship unless we have
elicited the proper responses
 LEVEL 1 SALIENCE DIMENSIONS
Brand salience measures awareness of the brand:
“how often and easily the brand is evoked under the various situation?”
Depth of brand awareness
Ease of recognition and recall (how likely for brand element to come to
mind, brand with high recall is stronger than only recognition)
Strength and clarity of category identification/ membership
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
 BRAND SALIENCE
It’s important to understand how critical brand salience is to the
branding process.

Brand salience relates to awareness of your organization and its

importance to your audience. This, of course, translates to the
importance of marketing, advertising, and public relations in your
ongoing communications efforts as they help generate
awareness and communicate an organization’s relative
importance, value proposition, and differentiation.
 SALIENCE: DEPTH AND BREADTH
IMPORTANCE
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.
 To fully understand brand recall, we need to appreciate product
category structure, or how product categories are organized in
memory.
 The product category hierarchy plays important role in customer
decision making
 High brand salience: customer make sufficient purchase as well as
always think of the brand across variety of setting
 PRODUCT CATEGORY STRUCTURE
Product category structure -
how product categories are
organized in memory

Product category structure has

an impact on brand
awareness, brand
consideration, and purchasing
decision

Beverage Category
Hierarchy
 LEARNING OUTCOME

Create the
Product Category
Structure/Hierarchy
Pyramid of
Monde Nissin.
 STRATEGIC IMPLICATIONS
• Not only the depth of awareness matters but also the
breadth.
• Key question is not whether consumers can recall the brand
but where they think of it, when they think of it, and how
easily and how often they think of it.
• The best route for improving sales may be not to try to
improve consumer attitudes but, instead, increasing brand
salience and the breadth of brand awareness and situations
in which consumers would consider using the brand.
 LEVEL 2 BRAND MEANING
• In brand salience – (e.g. Aware of the brand by knowing the product
category) - is important but not sufficient because the
meaning/image of the brand might also consider.
• Creating brand meaning includes establishing a brand image – what
the brand is characterized by and should stand for in the minds of
customer
• Two major categories of associations in brand meaning:
performance and imagery
• Those two categories can be formed directly from customer
experience, advertising, WOM, etc
LEVEL 2 A PERFORMANCE DIMENSIONS

“the product” itself is at the heart of Brand Equity

Brand performance: how well the product meets its

functional needs, how well its quality, what extent does
the brand satisfy utilitarian aesthetic and economics?
LEVEL 2 A PERFORMANCE DIMENSIONS
Five types of Brand Attributes and Benefits (that underlie brand performance)
1.Primary characteristics and supplementary features
2.Product reliability (consistency performance over time), durability (expected
economic life of the product), and serviceability the ease of repairing the product
if needed)
3.Service effectiveness(how well it satisfies), efficiency (speed and
responsiveness of services), and empathy (the extent of service providers are
seen as trusting, caring, and having customer Interest)
4.Style and design (go beyond its functional aspect: e.g. Size, material/sensory)
5.Price (how relative expensive/inexpensive the brand? frequent discount?)
ADS THAT EMPHASIZE ON BRAND
PERFORMANCE
LEVEL 2 BRAND IMAGERY DIMENSIONS
Brand Imagery
• Depends on the extrinsic properties of the product, including
the attempts to meet customer’s psychological and social
needs (more intangible)
• The way people think about a brand abstractly
• More intangible aspects of the brand, and consumers can
form imagery associations directly from their own
experience or indirectly through advertising or by some
other source of information (e.g. WOM)
LEVEL 2 BRAND IMAGERY DIMENSIONS
4 main intangibles can be linked to a brand:
1. User profile/imagery: Type of person or organization who uses the
brand; Demographic and psychographic factors
2. Purchase and usage situations/imagery: associations tells
consumers under what conditions or situations they can or should buy
and use the brand.
3. Brand personality and value: get formed by consumer experience or
marketing activities; may be different from country and region
4. Brand history, heritage, and experiences
 PERFORMANCE & IMAGERY
This level of the pyramid is all about features and visual
representation. That is, everyone who experiences your brand,
regardless of whether it’s a product, service, individual, etc., will
experience and evaluate it based on a variety of characteristics.
Successful result of the: strength, favorability and uniqueness
dimension and sufficient knowledge about brand meaning
produce the most positive brand response. From these
experiences, users will begin to form judgments and feelings
about your brand, which is the next level up on the pyramid.
LEVEL 3 BRAND FEELINGS DIMENSIONS
Customers’ emotional responses and reactions to
the brand, Relate to the social currency evoked by the brand

• Warmth: make customer feel a sense of calm/peacefulness

• Fun: upbeat type of feelings; amused, lighthearted, joyous etc.
• Excitement: make customers feel energized, excited
• Security: produces feeling of safety, comfort, self-assurance
• Social Approval: other looks favorably on their appearance
• Self-respect: make consumers feel better about themselves
 JUDGMENT & FEELING
It is the transition level. It’s a critical one because it’s the bridge
between the feature and resonance levels. In this level, users of your
brand form important judgments and feelings about your brand based
on its performance and imagery. If your brand’s performance is subpar,
your users’ judgments and feelings will reflect that, never allowing you
to achieve brand resonance in their minds. From a branding, marketing,
and public relations standpoint, much of what you do is based on
helping those who experience your brand to form the judgments and
feelings you desire to help achieve brand resonance.
 LEVEL 4 BRAND RESONANCE
DIMENSIONS
Brand Resonance
• Describes the extent to which customers feel that they are ‘in sync’ with
the brand.
• Characterized in terms of intensity, as well as the level of activity
engendered by this loyalty.
Intensity: measures the strength of the attitudinal attachment and sense of
community
Activity: tells us how frequently the consumer buys and uses the brand, as
well as engages in other activities not related to purchase and
consumption.
 LEVEL 4 RESONANCE DIMENSIONS
4 Categories of Brand Resonance
1. Behavioral loyalty: how much/often do customers purchase a
brand
2. Attitudinal attachment: resonance requires strong personal
attachment
3. Sense of community: a kinship or affiliation with other people
associated with the brand
4. Active engagement: occurs when customers are willing to invest
time, energy, money, or other resources in the brand
 RESONANCE
A key difference, however, is that brand resonance involves
two entities, not just one. It is characterized by incredibly
strong connections with a brand, resulting in intense loyalty
by a brand’s users and a stronger ability of the brand to
resist competitive actions taken by another brand, whether
they are financially-based, related to advertising and
marketing, etc. In essence, brand resonance is like
achieving brand nirvana.
 BRAND-BUILDING IMPLICATIONS
• The brand resonance model provides a road map and guidance
for brand building
• Can assess a process in brand building efforts and be a guide
for marketing research initiatives.
 Customer owns the brands
 Don’t take shortcuts with brands
 Brands should have a duality
 Brand should have richness
 Brand resonance provides important focus
 5 IMPORTANT BRAND TENETS
1. Customer owns the brands - The power of the brand and its ultimate value to
the firm reside with customers.
2. Don’t take shortcuts with brands - The length of time to build a strong brand
will therefore be directly proportional to the amount of time it takes to create
sufficient awareness and understanding so that firmly held and felt beliefs and
attitudes about the brand are formed that can serve as the foundation for
brand equity.
3. Brands should have a duality - Strong brands blend product performance and
imagery to create a rich, varied, but complementary set of consumer
responses to the brand.
 5 IMPORTANT BRAND TENETS

4. Brand should have richness - At the same time, brands should not necessarily
be expected to score highly on all the various dimensions and categories
making up each core brand value.
5. Brand resonance provides important focus - To what extent is marketing
activity affecting the key dimensions of brand resonance—consumer loyalty,
attachment, community, or engagement with the brand? Is marketing activity
creating brand performance and imagery associations and consumer
judgments and feelings that will support these brand resonance dimensions?
 THE BRAND VALUE CHAIN
• Developing a strong positioning and building brand
resonance are crucial, but to better understand the ROI of
marketing investment, the BVC tool is necessary
• BVC: structured approach to assessing the source and
outcomes of brand equity and the manner by which
marketing activities create brand value
• BVC provides insights to support brand managers, chief
marketing officers, managing directors, and CEO
 VALUE STAGES
• Stage 1 Marketing Program investment
• Stage 2 Customer Mindset as reflected in Brand Resonance
• Stage 3 Market/Brand Performance
• Stage 4 Shareholder Value
• With three moderating multipliers:
1. Program Quality multiplier
2. Marketplace condition multiplier
3. Investor sentiment multiplier
 STAGE 1 MARKETING PROGRAM
INVESTMENT
• Any marketing program/investment (product research, direct/interactive
marketing, publicity, etc.) can contribute to the brand value development
• It depends on qualitative aspects of the program and program quality multiplier,
i.e.:
 Distinctiveness: How unique/creative/differentiating?
 Relevance: How meaningful?
 Integrated: How well integrated the marketing program, past, present, future?
 Value: How much short/long-run value created? Will it build sales (s/r) or brand
equity (l/r)?
 Excellence: is the individual marketing activity designed to satisfy the highest
standard?
• Fulfilling all the criteria is likely to achieve greater ROI
 STAGE 3: MARKET PERFORMANCE
• The customer mind-set affects customer’s reactions
 Price premiums and demand elasticity of the brand
 Brand sales leads to market share
 The ability to expand the brand (brand extension or new-brand into related
categories)
 Cost structure (due to reduces marketing expenditures)
 All factors above lead to Brand Profitability
• The ability of the brand value to reach the final stage (stock market valuation)
depends on the Investor sentiment multiplier
1.Market dynamic (interest rates, supply of capital, etc)
2.Growth potential (prospects of the brand at the current industry)
3.Risk profile (how vulnerable the brand?)
4.Brand contribution (how important is the brand to the firm portfolio?)
 STAGE 3: MARKET PERFORMANCE
• The 5As of customer mind-set (BR) that influence the Brand value:
 Deep, Broad brand Awareness,
 Favorable, unique and strong POP and POD Associations,
 Positive Brand Attitudes (Judgements and Feelings),
 Intense brand Attachment and
 High degree of Brand Activity
• Marketplace Condition Multipliers:
1. Competitive superiority
2. Channel and other intermediary support
3. Customer size and profile
• The value in customer’s mind-set will be translated into favorable performance
if no significant threat from competitor, support from distribution channels and
sizable profitable customers that are attracted to the brand – exist.
 STAGE 4: SHAREHOLDER VALUE

• Based on current and forecasted information about a brand as

well as many other considerations, the financial marketplace
formulates assessments and opinion that have very direct
implications for the brand value
• Three important indicators
1.Stock price
2.Price/earnings multiple, and
3.Market capitalization for the firm
 IMPLICATIONS OF BVC
• According to BVC, marketers create value first by making shrewd
investments in their marketing program and then maximizing, as much
as possible, the program, customer, and market multiplier that translate
the investment into financial benefits.
• Implications of BVC:
1.Value creation begins with the marketing program investment – should be
well-funded, well-designed, well-implemented
2.Value creation require more than marketing investment, because each of the
three multipliers can increase/decrease market value
3.This BVC provides a detailed road map for tracking value creation that make
marketing research and marketing intelligence efforts easier.