CUSTOMER-BASED BRAND EQUITY

2.1
Brands?

 Product
 Service
 People
 Retailer
 Place
 Online product/ service
 Organization
 Cause
 Entertainment

2.3
 Is Maruti and Mercedes same?

2.4
Customer-Based Brand
Equity (CBBE)

Two questions often arise in brand marketing:

 What makes a strong brand?
 How to build a strong brand?

2.5
Customer-Based Brand Equity (CBBE)

 “The differential effect that brand knowledge has on consumer response to

the marketing of that brand.”

Keller, 1993
 CBBE stresses that power of a brand lies in what resides in the minds and
hearts of customers.

2.6
Customer-Based Brand Equity

3 key ingredient of CBBE:

 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

2.7
 Brand Equity as a “Bridge”
 Reflectionof past investments in the
marketing of a brand

 Direction for future marketing actions or

programs

2.9
2.10
2.11
2.12
 A Customer-Based Brand Equity Framework

2–13
Source: Adapted from Kevin Lane Keller, “Conceptualizing, Measuring, and Managing
Customer-Based Brand Equity,” Journal of Marketing 57 (January 1993), 7.
Making a Brand Strong:
Brand Knowledge
 Brand knowledge is the key to creating brand equity.
 Brand knowledge consists of a brand node in memory
with a variety of associations linked to it.
 Brand knowledge has two components: brand
awareness and brand image.

2.14
2.15
 Sources of Brand Equity
 Brand awareness (through brand elements)
 Brand recognition
 Brand recall
 Brand image
 Strong, favorable, and unique brand associations

2.16
Brand Awareness Advantages

 Learning advantages
 Register the brand in the minds of consumers
 Consideration advantages
 Likelihood that the brand will be a member of the
consideration set
 Choice advantages
 Affect choices among brands in the consideration set

2.17
2.18
Establishing Brand Awareness

 Increasing the familiarity of the brand through repeated

exposure (for brand recognition)
 Forging strong associations with the appropriate product
category or other relevant purchase or consumption
cues (for brand recall)

2.19
2.20
Group Activity

 Write words (atleast 5) that associate with your favorite

brand.

2.21
How do you associate with
these brands?

2.22
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2.25
2.26
2.27
McDonald’s STP Video

2.28
Market Segmentation

 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.

3.29
Example of the toothpaste
market
 Four main segments:
1. Sensory: Seeking flavor and product appearance
2. Sociables: Seeking brightness of teeth
3. Worriers: Seeking decay prevention
4. Independent: Seeking low price

3.30
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2.32
Criteria for Segmentation

 Identifiability: Can we easily identify the segment?

 Size: Is there adequate sales potential in the segment?
 Accessibility: Are specialized distribution outlets and
communication media available to reach the segment?
 Responsiveness: How favorably will the segment
respond to a tailored marketing program?

3.33
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2.35
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.

3.36
What is POP and POD?

2.37
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