Professional Documents
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Brand Positioning
Part II: Developing A Brand Strategy
Mateeullah Khan
BUITEMS
E-mail: mateeullahkhan@hotmail.com
1.Differential Effect:
2.Brand Knowledge:
• Choice of a brand
– The brand knowledge that marketers create over time dictates appropriate or
inappropriate future directions for the brand.
– Consumers will decide, based on their brand beliefs and attitudes, where they
think brand should go and grant permissions (or not) to any marketing action or
program.
– The True value and future prospects a brand rest with consumers and their
knowledge about the brand.
Making A Brand Strong: Brand Knowledge
• Brand Knowledge is the key to creating a Brand Equity, because it creates the
differential effect that drives brand equity.
• In other words, Brand associations are the other informational nodes linked to the
brand node in the memory and contain the meaning of the brand for consumers.
• Figure 2-3 displays some commonly mentioned associations for Apple computers that
consumers have expressed in the past.
Figure 2-3: Possible Apple Computer Associations
Sources of Brand Equity
• Customer-based Brand Equity occurs when consumer has a high level of
awareness and familiarity with the brand and hold some strong, favorable, and
unique brand associations in memory.
• So the Two components of Brand Equity are Brand Awareness and Brand
Image;
1.Learning Advantages:
– Brand Awareness influences the formation and strength of the associations that
make up the brand image
– The first step in building Brand Equity is to register the brand in the minds of
consumers.
– If the right brand elements are chosen, the task becomes easier.
2.Consideration Advantages:
– As suggested earlier, consumers must consider the brand whenever they are
making a purchase for which it could be acceptable or fulfilling a need it could
satisfy
– Raising Brand Awareness increases the likelihood that the brand will be a member
of Consideration Set, the handful of brands that receives serious consideration for
purchase.
Sources of Brand Equity:
Advantages of Brand Awareness
3. Choice Advantages:
– Creating 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.
– E.G., consumers have been shown to adopt a decision rule in some cases to buy
only more familiar, well-established brands.
Sources of Brand Equity:
Establishing Brand Awareness
• Increasing the familiarity of the brand through repeated
exposure (more effective for brand recognition than recall).
– That is, the more a consumer “experiences” the brand by seeing it,
hearing it, or thinking about it, the more likely he or she is to strongly
register the brand in memory.
– A slogan or jingle creatively pairs the brand and the appropriate cues
(and ideally, the brand positioning as well, helping build a positive brand
image).
Sources of Brand Equity:
Creating a Positive Brand Image
1. Strength of Brand Associations:
– The more deeply a person thinks about product information and relates it to
existing brand knowledge, the stronger the resulting brand associations will be.
– Two factors that strengthen associations to any piece of information are its
Personal Relevance and the Consistency with which it is presented over time.
– Consumers form beliefs about brand Attributes and Benefits in different ways, i.e.
through direct experience, word-of-mouth etc.
– To choose which favorable and unique associations to link to the brand, marketers
carefully analyze the consumer and the competition to determine the positioning
for the brand.
– Thus, favorable associations for a brand are those associations that are
Desirable to Consumers – convenient, reliable, effective, efficient, colorful
– successfully Delivered by the Product, and conveyed by the supporting
marketing program.
3.Elicit the proper customer responses to the brand identification and brand
meaning
3.What about you? What do I think or feel about you? (Brand Response)
4.What about you and me? What kind of association and how much of a
•Notice the ordering of the steps in this “branding ladder”, from identity to
meaning to responses to relationships.
Building A Strong Brand: The Four Steps of Brand Building
Brand Building Blocks
Brand equity only resulting if brands reach the top of the pyramid.
• Brand Salience measures Awareness of the Brand, E.g., how often and how
easily the brand is evoked under various situations or circumstances.
• The Depth of Brand Awareness measures how likely it is for a Brand Element
to come to mind, and the ease with which it does so.
• The Breadth of Brand Awareness measures the range of purchase and usages
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 Building Blocks
1: Brand Salience - Depth and Breadth
To see how this works, consider the breadth and depth of Brand
Awareness for Tropicana Orange Juice;
Brand Building Blocks
1: Brand Salience: Product Category Structure
• As the Tropicana example suggests , to fully understand Brand Recall, we
need to appreciate Product Category Structure, or how Product Categories
are organized in memory.
• Figure 2-7 illustrates one hierarchy that might exist in consumer’s minds.
Figure 2-7: Beverage Category Hierarchy
Brand Building Blocks:
1: Brand Salience - Strategic Implications
• The Product Category Hierarchy shows us not only the Depth of awareness
matters but also the Breadth.
• In other words, 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.
• In some cases, the best route for improving sales for a Brand is not improving
consumer attitudes toward the brand but, instead, increasing the Breadth of
Brand Awareness and Situations in which consumers would consider using
the Brand.
Brand Building Blocks:
2: Brand Performance
• The Product itself is at the heart of Brand Equity, because it is the primary
influence on;
– What consumers experience with a Brand,
– What they hear about a Brand from others, and
– What the firm can tell customers about the brand in their
communications.
• Designing and Delivering a product that fully satisfies consumer needs and
wants is a pre-requisite for successful marketing.
1. User Profiles:
– Demographic and Psychographic characteristics
– Actual or Aspirational
– Group perceptions—popularity
2. Purchase and Usage Situations:
– Type of channel, specific stores, ease of purchase
– Time (day, week, month, year, etc.), location, and context of usage
3. Personality and Values:
– Sincerity, excitement, competence, sophistication, and ruggedness
4. History, Heritage, and Experiences:
– Nostalgia
– Memories
Brand Building Blocks:
4: Brand Judgments
• Brand Judgments are customers’ personal opinions about and evaluations of
the brand, which consumers form by putting together all the different brand
performance and imagery associations.
• Customers may make all types of judgments with respect to a brand, but
Four types are particularly important: judgments about Quality, Credibility,
Considerations, and Superiority.
Brand Building Blocks:
4: Brand Judgments
1. Brand Quality: Brand attitudes are consumers’ overall evaluations of a brand and
often form the basis for brand choice.
– Brand Attitudes generally depend on a specific attributes and benefits of the
brand.
– Most important attitude relate to the brand’s perceived Quality and Value and
Satisfaction.
2. Brand Credibility: Customers may also form judgments about the company or
organization behind the Brand.
– It describes the extent to which customers see the brand as credible in terms of
Three Dimensions:
– Brand Consideration depends in large part on the extent to which strong and
favorable brand associations can be created as part of the brand image.
• Brand feelings also relate to the social currency evoked by the brand.
• The emotions evoked by a brand can become so strongly associated that they
are accessible during product consumption or use.
• More and more firms are attempting to tap into more consumer emotions
with their brands.
• Figure 2-8 summarizes one point of view with respect to emotional branding.
• Branding Brief 2-1 describes how Hallmark has engendered brand feelings
with consumers.
Figure 2-8: The Ten Commandments of Emotional
Branding
Brand Building Blocks:
5: Brand Feelings
The following are Six Important types of Brand-Building Feelings;
1.Warmth: Soothing types of feelings and makes consumers feel a sense of calm or
peacefulness. (Hallmark)
2.Fun: Upbeat types of feelings making consumers amused, lighthearted, joyous, playful,
and so on. (Disney)
• Brand Resonance describes the nature of this relationship and the extent to
which customers feel that they are “in sync” with the brand.
2. Attitudinal Attachment:
– Love brand (favorite possessions; “a little pleasure”)
– Proud of brand
3. Sense of Community:
– Kinship
– Affiliation
4. Active Engagement:
– Seek information
– Join club
– Visit website, chat rooms
Brand Building Implications:
• The Customer-based Brand Equity model provides a road map and guidance for
brand building, a yardstick by which brands can assess their progress in their Brand-
Building efforts as well as a guide for marketing research initiatives.
• Figure 2-9 contains a set of candidate measures for the Six Brand-Building Blocks.
(refer to material provided in class)
• The customer-based brand equity model certainly puts the notion front
and center.
• Too many firms, however, still find themselves paying the price for lacking
a customer focus.
2.Does the company know its customers well enough to differentiate between
them?
5.Is the company testing new customer offers and learning from the results?
Creating Customer Value:
Customer Relationship Management
• Customer-Relationship Marketing (CRM) uses a company’s data systems
and applications to track consumer activity and manage customer
interactions with the company.
• As one marketing executive cautioned, “CRM isn’t a bad idea, but companies
should be sure to take their customers’ point of view into account”
Creating Customer Value:
Customer Equity
• Customer Equity is defined as “ 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.
3. Relationship Equity: Customer’s tendency to stick with the Brand, above and
beyond the objective and subjective assessments of the brand.
– Four Key Drivers of the Relationship Equity are Loyalty Programs, Special
Recognition and Treatment Programs, Community-Building Programs, and
Knowledge-Building Programs.
Creating Customer Value:
Relationship of Customer Equity To Brand Equity
• One way to reconcile the points of view is to think of matrix where all the
brands and sub-brands and variants that a company offers are rows, and
all the different customer segments or individuals customers that purchase
those brands are columns (see Figure 2-11)
– Effective Brand and Customer management would necessarily take into
account both the rows and columns to arrive at optimal marketing solutions.
• As they have been developed conceptually and put into practice, the two
perspectives tend to emphasize different aspects (see Figure 2-12)
• The Customer Equity tends to have less perspective about specific activities
beyond general recommendations towards customer acquisition, retention
and cross selling.
• Brand Equity tends to put more emphasis on the “front end” of marketing
programs and the realized value of marketing activities in terms of revenue
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