Brand Resonance and

Brand Value Chain

 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
Customer-Based Brand Equity Pyramid
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, DURABILITY SITUATIONS
& SERVICEABILITY PERSONALITY &
SERVICE EFFECTIVENESS, VALUES
EFFICIENCY & EMPATHY HISTORY, HERITAGE
STYLE AND DESIGN & EXPERIENCES
PRICE

CATEGORY IDENTIFICATION
NEEDS SATISFIED
 Brand Building steps
• Brand Identity To achieve the right identity for a brand, the business
marketer must create brand salience with customers. 
• Brand salience is tied directly to brand awareness: How often is the brand
evoked in different situations? What type of cues or reminders does a
customer need to recognize a brand?
 What comes into your mind
• Shoe brand
• Cement manufacturers
• Steel manufacturers
• Laptop brands
 Salience Dimensions
• Depth of brand awareness
• Ease of recognition and recall (TOMA)
• Strength and clarity of category membership

• Breadth of brand awareness

• Purchase consideration
• Consumption consideration
Tropicana: ‘Its not just for breakfast anymore’

2.8
 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.

2.9
 Product Category Structure
• To fully understand brand recall, we need to appreciate product category
structure, or how product categories are organized in memory.

2.10
 Performance Dimensions

• Primary characteristics and supplementary features (Hotel)

• Product reliability, durability, and serviceability (ease of repair)
• Service effectiveness, efficiency, and empathy
• Style and design
• Price
2.12
 Imagery Dimensions

• User profiles (Who use this brnad?)(BMW)

• Purchase and usage situations (What places you can buy this brand?)
• 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 (Hitachi refreigerator)
• Nostalgia (paper boat)
• Memories
Brand Personality

VS
 Judgment Dimensions

• Brand quality • Brand consideration

• Value • Relevance
• Satisfaction
• Brand superiority
• Brand credibility • Differentiation
• Expertise
• Trustworthiness
• Likeability
2.15
 Brand Building steps
• Brand Response :Four types of customer judgments are particularly vital to the creation of a
strong brand :
1. Quality—the customers’ attitudes toward a brand’s perceived quality as well as their perceptions of
value and satisfaction;
2. Credibility—the extent to which the brand as a whole is perceived by customers as credible in terms
of expertise, trustworthiness, and likeability;
3. Consideration set—the degree to which customers find the brand to be an appropriate option
worthy of serious consideration;
4. Superiority—the extent to which customers believe that the brand offers unique advantages over
competitors’ brands.
 Feelings Dimensions

• Warmth
• Fun
• Excitement
• Security
• Social Approval
• Self-respect
 Brand Building steps
• Feelings relate to the customers’ emotional reaction to the brand and
include numerous types that have been tied to brand building, including
warmth, fun, excitement, and security.
• For example
Apple’s brand might elicit feelings of excitement
IBM or FedEx may evoke feelings of security 
 Resonance Dimensions

• Behavioral loyalty • Sense of community

• Frequency and amount of repeat • Kinship
purchases • Affiliation
• Attitudinal attachment • Active engagement
• Love brand (favorite possessions; “a • Seek information
little pleasure”) • Join club
• Proud of brand • Visit website, chat rooms
Customer-Based Brand Equity Model

Consumer- INTENSE,
INTENSE,ACTIVE
ACTIVE
LOYALTY
LOYALTY
Brand
Resonance

RATIONAL
RATIONAL&&
Consumer Consumer EMOTIONAL
EMOTIONAL
Judgments Feelings REACTIONS
REACTIONS

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

DEEP,
DEEP,BROAD
BROAD
Brand Salience BRAND
BRAND
AWARENESS
AWARENESS
 Brand Building Implications

• Customers own brands.

• Don’t take shortcuts with brands.
• Brands should have a duality. (product performance +
imagery=Merc)
• Brands should have richness.
• Brand resonance provides important focus.
2.23
https://www.marketingweek.com/mastercard-
priceless-campaign/
 Creating Customer Value
• Customer-brand relationships are the foundation of brand resonance
and building a strong brand.
• The customer-based brand equity model certainly puts that notion front
and center.

2.25
 Is a company consumer-centric?
1. Is the company looking for ways to take care of you?
2. Does the company know its customers well enough to differentiate between them?
3. Is someone accountable for customers?
4. Is the company managed for shareholder value?
5. Is the company testing new customer offers and learning from the results?

2.26

Sources: Larry Selden and Geoffrey Colvin, 2004.

Customer Relationship Management (CRM)

• Uses a company’s data systems and applications to track

consumer activity and manage customer interactions with the
company

2.27
 Customer Equity
Blattberg and Deighton (1996) offer eight guidelines as a means of maximizing customer equity:

• Invest in highest-value customers first

• Transform product management into customer management
• Consider how add-on sales and cross-selling can increase customer equity
• Look for ways to reduce acquisition costs
• Track customer equity gains and losses against marketing programs
• Relate branding to customer equity
• Monitor the intrinsic retainability of your customer
• Consider writing separate marketing plans—or even building two marketing organizations—for acquisition and
retention efforts

2.28
 Customer Equity

• The sum of lifetime values of all customers

• Customer lifetime value (CLV) is affected by revenue and by
the cost of customer acquisition, retention, and cross-selling

Rust, Zeithamal & Lemon, 2004

2.29
 Activity for next class
• Identify different types of brand elements associated with your favorite
brand (logo, symbol, jingle, slogan, characters, packaging, etc.). Does it
have any impact on you.