Strategic Brand Management BMKT380 CH2

Lebanese International University
BMKT380-Strategic Branding Management

Spring 2021-2022
CHAPTER:2
CUSTOMER-BASED
EQUITY AND BRAND
POSITIONING
Copyright © 2013 Pearson Education

Learning Objectives
 Define customer-based brand equity.
 Outline the sources and outcomes of customer-
based brand equity.
 Identify the four components of brand positioning.
 Describe the guidelines in developing a good brand
positioning.
 Explain brand mantras and how they should be
developed.

Introduction
Chapter 1 introduced some basic notions about brands,

particularly brand equity, and the roles they play in marketing
strategies. This chapter explores how to develop brand
strategies. Great brands are not accidents. They are a result of
thoughtful and imaginative planning. Anyone building or
managing a brand must carefully develop and implement
creative brand strategies.
Introduction
For successful brand building, three tools or models are

helpful. Like the famous Russian nesting* Matryoshka dolls,
the three models are interconnected and, in turn, become larger
in scope: the first model is a component in the second model;
the second model, in turn, is a component in the third.
Combined, the three models provide crucial micro and macro
perspectives on successful brand building to the managers.
Introduction
These 3 models are nesting* like the

Matryoshka dolls. They are
interconnected with each other and
become larger in scope:
1. Brand Positioning Model (How to establish and maximize Competitive Advantage in the
minds of customers)
2. Brand Resonance Model (How to create intense and actively loyal customers; Customer
Loyalty)
3. Brand Value Chain Model (How to trace the value creation process to better understand the
Financial Impact of marketing expenditures and investments)

Introduction
Collectively, these three models help marketers plan
branding strategies and tactics to maximize profits and long-
term brand equity and track their progress along the way.
This chapter develops the first model (Brand Positioning
Model); however, it begins by examining the brand equity
concept, introducing one particular view— the concept of
Customer-Based Brand Equity (CBBE) —that will serve as a
useful organizing framework for the remaining chapters.
Brand Equity from the Customer Perspective
Customer Based Brand Equity (CBBE)*

Customer Based Brand Equity (CBBE)
Two questions often arise in brand marketing:
- What makes a brand strong?
- How do you build a strong brand?
To help answer both, we introduce the concept of customer-based brand

equity (CBBE). Although a number of useful perspectives concerning
brand equity have been put forth, the CBBE concept provides a unique
point of view on what brand equity is and how it should best be built,
measured, and managed. Moreover, if a brand has no meaning or
value to the consumer it is ultimately meaningless to investors,
manufacturers, or retailers. Copyright © 2013 Pearson Education
Defining Customer Based Brand Equity (CBBE)
The (CBBE) concept approaches brand equity from the perspective of

the consumer — whether the consumer is an individual or an
organization, or an existing or prospective customer. Understanding the
needs and wants of consumers and planning products and programs to
satisfy them are at the heart of successful marketing. In particular,
marketers face two fundamentally important questions:
1) What do different brands mean to consumers?
2) How does the brand knowledge of consumers affect their response

to marketing activity?
The basic principle of the CBBE concept is that the power of a brand lies
in what customers have learned, felt, seen, and heard about the brand as
a result of their experiences over time (Brand Knowledge).
The customer based brand equity concept helps marketers connect with
their audience, increase profit margins, develop brand loyalty and
improve brand equity.

Defining CBBE
Keller (1993) defined CBBE as, “The differential effect

that brand knowledge has on consumer’s response to the
marketing activity of the brand”.
1) Differential Effect refers to the fact that different responses

result from the marketing effort provided to a branded product
in comparison to the same unbranded product. If no
differences occur, then the brand-name product can essentially
be classified as a commodity, and competition would be
Defining CBBE
2) Brand Knowledge is all the associations the brand has
with the consumer – such as thoughts, feelings, images,
perceptions, beliefs, attitudes and experiences over time.
>>>According to the customer-based brand equity

concept, brand knowledge drives the differences in
consumer’s response that manifest themselves in terms of
brand Copyright © 2013 Pearson Education

equity.
Defining CBBE
Differences in
Consumer’s Response to Custome
Brand the Same Marketing r
Knowledge Effort Provided to Both Based
Branded & Unbranded Brand
Product Equity

Defining CBBE
 Short-term marketing effort can greatly affect the

consumer’s brand knowledge in their memory,
therefore, future brand marketing tactics -
Marketing Effort Provided by the Brand – IS
MORE EFFECTIVE IF THE BRAND
KNOWLEDGE IS ALL READY IN THE
CONSUMER’S MEMORY, and the consumer is
Defining CBBE
Differences in
Consumer’s Response to Custome
Brand the Same Marketing r
Knowledge Effort Provided to Both Based
Branded & Unbranded Brand
Product Equity
Marketing Effort Provided by the

Brand (Moderator Variable)

Defining CBBE
3) Consumer’s Response to the Marketing Effort brand

equity may be reflected in the way the consumer perceive and
behave with respect to the brand marketing effort. For
examples:
- Choice of the brand (consumer buying process of the brand)
- Recall of points from the last brand’s advertisement
- Actions in response to the brand’s sales promotion
- Evaluations of the proposed brand’s extension (Subjective Opinion)

Positive / Negative Customer Based Brand
Equity
A brand has a:
 Positive customer-based brand equity - When consumers
react more favorably to a product and the way it is
marketed when the brand is identified than when it is not.
 Negative customer-based brand equity - When
consumers react less favorably to marketing activity for
the brand compared with an unnamed or fictitiously
named version of the product.
Example of Positive Brand Equity
Tylenol is a company that has
built positive brand equity and
ranks above several other
companies in the pain relief
category. Tylenol has offered
quality products such as Tylenol
Extra Strength and Tylenol Cold
& Flu. In a study conducted by
EquiTrend, it shows that
consumers have high trust in
Tylenol over many other brands.
Example of Negative Brand Equity
Volkswagen’s reputation was

damaged when they had to recall
as many as 11 million diesel
vehicles that were built-in with
faulty emissions testers. It was
estimated that they lost US$10
Billion in brand value due to this
Marketing Advantages of Strong Brands

To Sum up with an example..
Brand equity is the differential effect that brand knowledge has

on consumer’s response to the marketing activity of a brand.

Brand Equity as a Bridge:

According to the customer-based brand equity concept,
consumer’s brand knowledge drives the differences in
consumer’s response that manifest themselves in terms of
brand equity. This realization has important managerial
implications. For one thing, brand equity provides
marketers with a vital strategic bridge from their past to
their future. Copyright © 2013 Pearson Education
Brand Equity as a Bridge
Brands as a Reflection of the Past
Brands as a Direction for the Future

Brands as a Reflection of the Past
Marketers should consider all the dollars spent on marketing products

each year NOT as “expenses” but as “investments” in what consumers
saw, heard, learned, felt, and experienced about the brand. If not properly
designed and implemented, these expenditures may not be good
investments, in that they may not have created the right knowledge
structures in consumers’ minds. Thus, the quality of the investment in
brand building is the most critical factor, not the quantity beyond some
minimal level amount.

Brands as a Direction for the Future
The brand knowledge that marketers create over time
dictates appropriate and inappropriate future directions for

the brand. Consumers will decide, based on their brand
knowledge, where they think the brand should go and grant
permission (or not) to any marketing action (such as brand
extension) or program. Thus, the true value and future
scenarios of a brand rest with consumers and their
knowledge about the brand.
Building Strong Brands: Brand Knowledge
>> From the perspective of the CBBE concept, brand
knowledge is the key to creating brand equity, because
brand knowledge creates the differential effect that drives
brand equity.
>> Brand knowledge has two components: Brand
Awareness and Brand Image.

B r a n d k n o w l e d g e - B r a n d Aw a r e n e s s
Brand Awareness refers to the consumer’s ability to
identify the brand under different conditions.
Brand awareness consists of brand recognition and
brand recall performance.

Brand knowledge- Brand Awareness
Brand Recognition: refers to the extent to which a
consumer can correctly identify a brand based on visual
indicators such as logo and colors. For example, if you see
Nike’s logo (the wing of the Greek goddess of victory) ,
before even making out the brand name, you'd automatically

B r a n d k n o w l e d g e - B r a n d Aw a r e n e s s
Brand’s Recall Performance: refers to the ability to
associate the brand with the product category or the need it
covers. For example: when I talk fast food or when I talk
premium fast cars.

Brand Knowledge - Brand Image
Brand awareness is a necessary, but not always a sufficient,
step in building brand equity. Other considerations, such as
the image of the brand, often come into play.
Brand Image is consumers perceptions about a brand, as
reflected by the brand associations held in consumer memory.

McDonald’s Brand Associations

Brand Knowledge - Brand Image
Mercedes Maybach – 2019 ($170,000)

Marketers must
convince consumers that
there are meaningful
differences among Lada Vesta - 2019 ($15,400)
brands. Consumers must
not think all brands in a
specific category are the
Brand Awareness & Advantages
Creating brand awareness means increasing the familiarity of the brand
through repeated exposures. There are three main benefits of creating a high
level of brand awareness:
1) Learning Advantages: the higher the level of brand awareness the easier
people learn about the brand and the better the brand is registered in their
mind.
2) Consideration Advantages: a high level of brand awareness increases

the likelihood that the brand will be a member of the consideration set, that
handful of brands that receive serious consideration for purchase.
Learning Advantages of Brand Awareness

Brand Awareness & Advantages
3) Choice Advantages: a high level of brand awareness can affect

choices among brands in the consideration set, even if there are
essentially no other associations to those brands. For example,
consumers have been shown to adopt a decision rule in some cases to
buy only more familiar, well established brands. Thus, in low-
involvement decision situations, a minimum level of brand awareness
may be sufficient for product choice.

B r a n d Aw a r e n e s s & A d v a n t a g e s
The Elaboration Likelihood Model
One dominant model of behavior change and persuasion, the

elaboration-likelihood model, is consistent with the notion that
consumers may make choices based on brand awareness considerations
when they are in low involvement decision situations.
Low involvement results when consumers lack either:
- Purchase Motivation (Consumers don’t care about the product), or
- Purchase Ability (Consumers in some product categories just do not have
the necessary knowledge or experience to judge product quality even if they so
desired.), or
- Purchase Opportunity (Consumers don’t have the time).
Establishing Brand
Awareness
In the abstract, creating brand awareness means increasing the
familiarity of the brand through repeated exposure. That is, the
more a consumer experiences the brand by seeing it, hearing it, or
thinking about it, the more likely he / she is to strongly register the
brand in his / her memory. Thus, anything that causes consumers to
experience one of a brand’s elements can increase familiarity and
awareness of that brand element. And the more elements marketers
can reinforce, usually the better.
Establishing Brand Image
Once a sufficient level of brand awareness is created,

marketers can put more emphasis on crafting a brand image.
 Brand image: Consumers’ perceptions about a brand.
 Positive brand image - Requires strong favourable and
unique brand associations.

Rolls Royce Brand Image: The Ideal Luxury Car

There are two types of brand associations:
- Brand Attributes: Descriptive features that characterize

a product or service (e.g., the quality of a Rolls Royce; the
User friendly of Google Chrome browser….).
- Brand Benefits: The personal value and meaning that

consumers attach to the product or service attributes (e.g., the
communication capability of an iPhone, the thirst relieve
offered by a water bottle of Nestle).
Possible Apple Computer Associations

The Associations Developed by Top Brands
• Downy is soft
• Tesla is electric
• Coca-Cola is classic
• BMW is driving performance
• ZARA is fashionable
• Samsung is reliable

Consumers form beliefs about brand attributes and benefits in
different ways. The definition of customer-based brand equity,
however, does not distinguish between the source of brand
associations and the manner in which they are formed; all that
matters is their strength, favorability, and uniqueness. This
means that consumers can form brand associations in a
variety of ways other than marketing activities (Direct
exposure, word of mouth, Social Media etc..). In short, to
create the differential response that leads to customer-based
brand equity, marketers need to make sure that some strongly
held brand associations are not only favorable but also
unique and distinct from competing brands.
Factors Affecting the Strength, Favorability
& Uniqueness of Brand Associations
Strength of • The more deeply a person thinks about product
information and relates it to existing brand
Brand knowledge, the stronger the resulting brand
Associations association will be.
Favorability of • Marketers create favorable brand associations by

convincing consumers that the brand possesses
Brand relevant attributes and benefits that satisfy their
needs and wants, such that they form positive
Associations overall brand judgments.
Uniqueness of • “The essence of brand positioning is that the

brand has a sustainable competitive advantage or
Brand Unique Selling Proposition (USP) that gives
consumers a convincing reason why they should
Associations buy©it.
Copyright 2013 Pearson Education
Favorability of Brand Associations: Emirates Airline
Emirates Airline, luxurious Emirates Airline

amenities, award-winning in- The Chef is Onboard
flight entertainment system,

customized onboard gourmet
cuisine, and unmatched
hospitality provided by its iconic
multi-lingual Cabin Crew from
over 130 nationalities have made
Emirates one of the world's most
recognized airline brands Copyright © 2013 Pearson Education
Uniqueness of Brand Associations: Undandy Shoes
At Undandy each shoes need Undandy

Custom Handmade Shoes
careful attention. It is not an
easy task because it involves
hand painting each shoe, so
we need to account for
variability.
To Sum up...
To create brand equity, marketers should:

 Create favorable consumer response i.e.
brand awareness
 Create positive brand image though brand
associations that are strong, favorable, and
unique Copyright © 2013 Pearson Education
Identifying and Establishing Brand Positioning
Having developed the CBBE concept, we next outline how

marketers should approach brand positioning.
Brand Positioning
 Act of designing the company’s offer and image so that it
occupies a distinct and valued place in the target customers’
minds
 Finding the proper “location” in the minds of consumers or
market segment
 Allows consumers to think about a product or service in the
“right” perspective
Brands Positioning in the Consumer’s Mind

Positioning examples
City Brands
New York (City that never sleeps)
Paris (City of romance)
Car Brands
BMW (Ultimate driving machine)
VW ( Das auto)
BMW, The Ultimate Driving Machine

Establishing Brand Positioning - Basic Concepts
Deciding on a positioning requires determining a frame of

reference. In other words, marketers need to know:
(1) Who the target market is,
(2) Who the main competitors are,
(3) How the brand is similar to these competitors, and
(4) How the brand is different from them.

Market Segmentation & Target Market
 Identifying the target market is important because
different consumers may have different brand knowledge
structures and different perceptions and preferences for
the brand. Without this understanding, it may be difficult
for marketers to say which brand associations should be
strongly held, favorable, and unique. Accordingly, let’s
review the target marketing process .
A market is the set of all actual and potential buyers who
have sufficient interest in, income for, and access to a product
or service

The way a market is defined impacts upon how
it can be segmented. For example, a market
could be called 'small cars' or 'personal
transport', depending upon the definition, the
segments which emerge could be very different.

SMALL CARS Vs PERSONAL
TRANSPORT*

• Market Segmentation is the process that companies use to divide a
large heterogeneous market into small homogenous segments that
can be reached more efficiently and effectively with products and
services that match their unique needs.
• Market Segment a market segment consists of a group of
customers who share a similar set of needs

Market Segment

Market Segmentation
Mass
Market
Market
Segment
Example: The Toothpaste Market

Market Segmentation & Target Market Segment
A Target Market Segment is a specific group

of people that have been identified as the most
likely potential customers for a company’s
product because of their shared characteristics
such as age, income, and lifestyle.

Target Market Segment
Mass
Market
In this
market we
have four
Market
Segment
A company may target more than
one segment (multi-segment
marketing) with several product
lines that appeal to each target
segments.
BMW Using Multi Segment Marketing
Principles of Marketing- Section A- LIU-

69
Tripoli- Spring 2015
Segmenting Consumer Markets*
Consumer market refers
to all of the personal
consumption of final 1. Geographic
2.
Demographic
Segmentation
consumers. Segmentation
There are four major

3. Psychographic 4. Behavioral
Segmentation Segmentation
variables that might be used
in segmenting consumer
markets:
Consumer Segmentation Bases

Example of Demographic Segmentation (Age)
Colgate Toothbrush for Children

Colgate Toothbrush for Adults
Example of Demographic Segmentation (Gender)
Behavioral Segmentation (Benefits Sought )
Marlboro Use of Behavioral Segmentation (Usage Rate )
Light Smoker Heavy Smoker

Demographic Vs Psychographic Segmentation
Example of Psychographic Segmentation (Lifestyle)
Porshe Panamera
Porshe Boxter
for “Top Guns”
for “Bon Vivants”
Geographic Segmentation (International)*
Samsung refrigerators for
Samsung refrigerators for
the Korean Market
the U.S. Market
Using Multiple Segmentation Bases
The more exceptionally segmented the market, the more likely that the
firm will be able to implement marketing programs that meet the needs
of consumers in any one segment. Accordingly, marketers rarely limit
their segmentation analysis to only one or a few variables. They often
use multiple segmentation bases in an effort to identify smaller, better-
defined target groups.
Using Multiple Segmentation Bases: Coca-Cola
Coca-Cola uses multiple
segmentation bases to
segment the carbonated soft
drink market. Its segmentation
is mainly based on “age, family
size and income”. Coca Cola
manufacture several product
lines that appeal to each
target segments.
Business-to-Business Segmentation Bases

Regardless of our approach, a useful segmentation should
include the following characteristics/ criteria :
 Identifiability: Can we easily identify and profile the
segments?
 Size: Is there adequate sales potential in the segment?
 Accessibility: Are specialized distribution outlets and
communication media available to reach the target segment?

 Responsiveness: How favorably will the segment respond

to a tailored marketing program ?
 Profitability: The obvious overriding consideration in
defining market segments is profitability.

Who are the Main Competitors ?
Nature of Competition
Deciding to target a certain type of consumer often defines the
nature of competition, because other firms have also decided
to target that segment in the past or plan to do so in the future,
or because consumers in that segment already may look to
other brands in their purchase decisions. Competition takes
place on other bases, of course, such as service quality and
channels of distribution.
 Competitive Analysis
In order for marketers to choose markets where consumers can
be profitably served, they usually conduct a competitive
analysis.
A competitive analysis is an approach that involves

researching major competitors to gain insight into their
resources, products, marketing strategies, and likely
 Indirect Competition
indirect competition refers to competition among companies that sell
different types of products that target the same customer group and
satisfy the same need.
Even if a brand does not face direct competition in its product category,
and thus does not share performance related attributes with other brands,
it can still share more abstract associations and face indirect competition
in a more broadly defined product category.

 Multiple Frames of Reference
A "frame of reference" is how a new product, service or concept is
seen by the target market. It considers the wider set of products,
services, brands, beliefs, and identities that hold the customer’s
attention, to recognize the full range of products with whom the
company competes.
It is not uncommon for a brand to identify more than one frame
of reference. This may be the result of broader category

competition or the brand intended future growth.
Lays Frames of References

Lays Frames of References

Lays Frames of References - Salty Snacks

Lays Frames of References - Light Salty
Snacks

Lays Frames of References – Sweet Snacks

Lays Frames of References –Macro Snacks

Lays Frames of References – Meal
Replacements

Points of Parity and Points of
Difference
Arriving at the proper positioning requires
establishing the correct points-of-difference and
points-of-parity associations.

Difference
 Points-of-difference associations
Points-of-difference (PODs) – Attributes or benefits consumers strongly
associate with a brand, positively evaluate and believe they could not
find to the same extent with a competing brand i.e. points where you are
claiming superiority or exclusiveness over other products in the category.
- USP (Rosser Reeves Theory, the Unique Selling Proposition) ***
- SCA (Sustainable Competitive Advantage)

POD : The Luxury & Status Imagery of Herms
Hermes Kelly 28 Epsom Leather

Handbag: $25,000

Difference
Points-of-parity (POPs) on the other hand, are not
necessarily unique to the brand but may be shared by
other brands i.e. where you can at least match the
competitors claimed best. While POPs may usually
not be the reason to choose a brand, their absence can
certainly be a reason to drop a brand.

Difference
Three types of associations are:
1- Category Points- of-Parity: Necessary conditions for

brand choice. They exist minimally at the generic product
level and are most likely at the expected product level. Thus,
consumers might not consider a bank truly a bank unless it
offered a range of checking and savings plans.

Difference
2- Competitive Points-of-Parity: Associations designed to
nullify competitors’ points-of-difference. In other words, if a
brand can break even in those areas where its competitors
are trying to find an advantage and can achieve its own
advantages in some other areas, the brand should be in a

Difference
3- Correlational Points-of-Parity: Potential negative
associations that arise from the existence of other, more
positive associations for the brand. For example, consumers
might find it hard to believe a brand is inexpensive and at
the same time of the highest quality

Difference
 Points-of-parity Vs points-of-difference:
Unless certain points-of-parity can be achieved to overcome potential
weaknesses, points-of-difference may not even matter. There is a “zone”
or “range of tolerance or acceptance” with points-of-parity. Points-of-
parity are easier to achieve than points-of-differences.
Example: BMW vs Mercedes crash safety ratings. Points-of-parity are

easier to achieve than points-of-differences. People should believe the
brand is good enough.
To Sum up…
To appropriately position a brand, marketers should:

 Identify their target customers
 Analyse the type of competition they might face in the
identified market base
 Identify product features and associations that are
different or similar to their competitors

Positioning Guidelines
Two key issues in arriving at the optimal competitive brand

positioning are :
1- Defining and communicating the competitive frame of

reference
2- Choosing and establishing points of parity & points of

difference

Positioning Guidelines
Defining and Communicating the Competitive Frame of Reference
Choosing Points-of-Difference
Establishing Points-of-Parity and Points-of-Difference
Straddle Positions
Updating Position Overtime
Developing a Good Positioning

Defining and Communicating the Competitive
Frame of Reference
There are three main ways to convey a brand’s category

membership:
1- Communicating Category Benefits: Marketers use

product benefits to announce category membership. (A cake
mix might attain membership in the cake category by claiming
the benefit of great taste and might support this benefit claim
by possessing high-quality ingredients (performance) or by
showing users delighting in its consumption (imagery) )
Frame of Reference
2- Comparing to Exemplars: Well-known,

noteworthy brands in a category can also be used as
exemplars to specify a brand’s category membership.
(When Tommy Hilfiger was an unknown designer,
advertising announced his membership as a great
American designer by associating him with Geoffrey
Beene, Stanley Blacker, Calvin Klein, and Perry Ellis)
Frame of Reference
3- Relying on a Product Descriptor: The product

descriptor that follows the brand name is often a very
compact means of conveying category origin. USAir
changed its name to US Airways as part of the
airline’s attempted transformation from a regional
carrier with a poor reputation to a strong national or
even international brand.
A brand must offer a compelling and credible reason

for choosing it over the other options. In determining
whether an attribute or benefit for a brand can serve as
point-of-difference, there are three key considerations.
The brand association must be seen as:
desirable,
deliverable,
and differentiating

Desirability Criteria: Target consumers must find the

POD personally relevant and important. (Brands that
tap into growing trends with consumers often find
compelling PODs. For example, Apple & Eve’s pure,
natural fruit juices have ridden the wave of the natural
foods movement to find success in an increasingly
health-minded beverage
market.
Deliverability Criteria: The deliverability of an attribute or

benefit brand association depends on both:
- Feasibility :company’s actual ability to make the product or

service (Mountain Dew may argue that it is more energizing
than other soft drinks and support this claim by noting that it
has a higher level of caffeine )
Communicability: its effectiveness in convincing consumers

of its ability to do so (do not provide consumers with false
Differentiating criteria: Finally, target consumers must
find the POD distinctive and superior.

Establishing Points-of-Parity and Points-of-
Difference
The following three approaches are listed in

increasing order of effectiveness—but also
increasing order of difficulty.
1- Separate the attributes: (An expensive but

sometimes effective approach is to launch two
different marketing campaigns, each devoted to a
different brand attribute or benefit. These campaigns
may run concurrently or sequentially.) Head &
Shoulders Copyright © 2013 Pearson Education
Establishing Points-of-Parity and Points-of-
Difference
2- Leverage equity of another entity : Brands can link

themselves to any kind of entity that possesses the right
kind of equity—a person, other brand, event, and so forth
—as a means to establish an attribute or benefit as a POP
or POD
3- Redefine the relationship: Finally, another potentially
powerful but often difficult way to address the negative
relationship between attributes and benefits in the minds
of consumers is to convince them that, in fact, the
relationship is positive
Straddle Positions
 Type of positioning where a company is able to straddle two

frames of reference with one set of points-of-difference and
points-of-parity.
 The points-of-difference in one category become points-of-

parity in the other and vice-versa for points-of-parity.
 Disadvantage - If the points-of-parity and points-of-

difference with respect to both categories are not credible,
consumers may not view the brand as a legitimate player in
either category. Copyright © 2013 Pearson Education
BMW Example of Straddle Position
In 1916 when BMW entered the
market, all major automakers
focused on luxury. BMW
positioned itself as a luxury brand
but with high performance, and it
was a success. Luxury was their
POP, and the performance was
POD. Copyright © 2013 Pearson Education
The previous section described some positioning guidelines

that are especially useful for launching a new brand. With an
established brand, an important question is how often to
update its positioning. As a general rule, positioning should be
fundamentally changed very infrequently, and only when
circumstances significantly reduce the effectiveness of
existing POPs and PODs.
It focuses on:
 Laddering: One common market challenge is how to
respond to competitive actions that threaten an existing

positioning
 Reacting: When a competitor challenges an existing POD
or attempts to overcome a POP, there are essentially three

main options for the target brand:
- Do nothing.
- Go on the defensive.
- Go on the offensive.
 Brand positioning describes how a brand can
effectively compete against a specified set of
competitors
 A good product positioning should:
 Have a “foot in the present” and a “foot in the future”
 Identify all relevant points-of-parity
 Reflect a consumer point of view in terms of the benefits
that consumers derive
 Contain points-of-difference and points-of-parity that
appeal both to the “head” and the “heart”
1-It needs to be somewhat aspirational so that the brand has
room to grow and improve.
2-One good way to uncover key competitive points-of-
parity is to role- play competitor’s positioning and infer
their intended points-of-difference
3-An effective POD should make clear why that it so
desirable to consumers.
4-In other words, a good positioning contains points-of-
difference and points-of-parity that appeal both to the head
and the heart.
Brand Mantra
A brand mantra; short, three-to five-word phrase that
captures the irrefutable essence or spirit of the brand
positioning.
Brand mantras are powerful devices. They Provides guidance
about:
• What products to introduce under the brand.
• What ad campaigns to run.
• Where and how the brand should be sold.
Top Brands Mantras

Brand Mantra
• Brand mantras may even guide the most seemingly
unrelated decisions, such as the way employees answer the
phone. In effect, brand mantras create a mental filter to
screen out brand-inappropriate marketing activities of any
type that may have a negative bearing on customers'
impressions of a brand.
Disney’s brand mantra of “fun family entertainment” gave marketers
“guard rails” to help avoid brand-inconsistent actions
Brand Mantra
Brand mantras help the brand present a consistent image

Any time a consumer or customer encounters a brand—in any
way, shape, or form—his or her knowledge about that brand
may change and affect the equity of the brand. Given that a
vast number of employees come into con- tact with
consumers, either directly or indirectly, their words and
actions should consistently reinforce and support the brand
meaning. Copyright © 2013 Pearson Education
Coca Cola Consistent Image: Same Great Taste

Brand Mantra
Designing a Brand Mantra
• A good brand mantra should provide:
• Brand functions: Nature of the product or service or the type of
experiences or benefits the brand provides.
• Descriptive modifier: Combined with brand functions, helps
delineate the brand boundaries.
• Emotional modifier: Determines how a brand provides benefits
and in what ways.

Brand Mantra
Implementing Brand Mantra

• Should be developed at the same time as the brand positioning.
• Requires more internal examination and involves input from a wider
range of company employees.
• Based on core brand associations, a brainstorming session can attempt
to identify PODs, POPs, and different brand mantra candidates. In the
final brand mantra, the following considerations should come into play:
a) Communicate b) Simplify c) Inspire

To Sum up...
 A good brand mantra should:

 Communicate the category of the business to set the brand
boundaries and clarify what is unique about the brand
 Be simple, crisp, and vivid
 Stake out ground that is personally meaningful and relevant to
as many employees as possible

Strategic Brand Management BMKT380 CH2

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Lebanese International University

BMKT380-Strategic Branding Management

Copyright © 2013 Pearson Education

Copyright © 2013 Pearson Education

Chapter 1 introduced some basic notions about brands,

For successful brand building, three tools or models are

These 3 models are nesting* like the

Copyright © 2013 Pearson Education

Copyright © 2013 Pearson Education

To help answer both, we introduce the concept of customer-based brand

The (CBBE) concept approaches brand equity from the perspective of

1) What do different brands mean to consumers?

2) How does the brand knowledge of consumers affect their response

a result of their experiences over time (Brand Knowledge).

their audience, increase profit margins, develop brand loyalty and

improve brand equity.

Copyright © 2013 Pearson Education

Keller (1993) defined CBBE as, “The differential effect

1) Differential Effect refers to the fact that different responses

>>>According to the customer-based brand equity

brand Copyright © 2013 Pearson Education

Copyright © 2013 Pearson Education

 Short-term marketing effort can greatly affect the

Marketing Effort Provided by the

Copyright © 2013 Pearson Education

3) Consumer’s Response to the Marketing Effort brand

- Recall of points from the last brand’s advertisement

- Actions in response to the brand’s sales promotion

- Evaluations of the proposed brand’s extension (Subjective Opinion)

Volkswagen’s reputation was

Copyright © 2013 Pearson Education

Brand equity is the differential effect that brand knowledge has

Copyright © 2013 Pearson Education

Brand Equity as a Bridge:

Brands as a Reflection of the Past

Brands as a Direction for the Future

Copyright © 2013 Pearson Education

Marketers should consider all the dollars spent on marketing products

Copyright © 2013 Pearson Education

dictates appropriate and inappropriate future directions for

>> From the perspective of the CBBE concept, brand

knowledge is the key to creating brand equity, because

brand knowledge creates the differential effect that drives

>> Brand knowledge has two components: Brand

Awareness and Brand Image.

Brand Awareness refers to the consumer’s ability to

identify the brand under different conditions.

Brand awareness consists of brand recognition and

brand recall performance.

Copyright © 2013 Pearson Education

Brand Recognition: refers to the extent to which a

consumer can correctly identify a brand based on visual

indicators such as logo and colors. For example, if you see

Nike’s logo (the wing of the Greek goddess of victory) ,

before even making out the brand name, you'd automatically

Brand’s Recall Performance: refers to the ability to

associate the brand with the product category or the need it

covers. For example: when I talk fast food or when I talk

premium fast cars.

Copyright © 2013 Pearson Education

Brand awareness is a necessary, but not always a sufficient,

step in building brand equity. Other considerations, such as

the image of the brand, often come into play.

Brand Image is consumers perceptions about a brand, as