Brand Equity Session 3-4

8/3/2019 Brand Equity Session 3-4

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CUSTOMERCUSTOMER--BASED BRAND EQUITYBASED BRAND EQUITY

AN ANSWER TO

WHAT MAKES

A

BRAND

STRONG

HOW

TO

BUILD

STRONG

BRAND


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CUSTOMERCUSTOMER--BASED BRAND EQUITY MODELBASED BRAND EQUITY MODEL

(CBBE MODEL)(CBBE MODEL)

GIVES A UNIQUE WAY OF

WHAT IS BRAND EQUITY

HOW IT SHOULD BE BUILT,MEASURED AND MANAGED


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Customer-Based Brand Equity

WHAT DO DIFFERENT BRANDS

MEANS TO CUSTOMERS

Thedifferential effect that brand

knowledge hason consumerresponseto

themarketingofthat brand

Keller, 1993


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POWER OF BRAND LIES IN WHAT

CUSTOMERS HAVE

LEARNEDFELT

SEEN

HEARDABOUT A BRAND AS A RESULT OF

THEIR EXPERIENCES OVER TIME


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POWER OF BRAND LIES IN MIND OF

THE CUSTOMERS


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Thedifferential effect that brand knowledge

hason consumerresponsetothe

marketing ofthat brand


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Differential effect

Differencesin consumerresponse

Brand knowledgeA resultofconsumers knowledge aboutthe

brand

Consumerresponsetomarketing

Choiceofa brand Recall ofcopypointsfrom an ad

Responseto a salespromotion

Evaluationsofa proposed brandextension


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POSITIVE CBBE

CBBE

POSITIVE

WHEN CUSTOMERS REACT

FAV

OURABLY

MORE ACCEPTANCE TOBRAND EXTENSION

LESS SENSITIVE TO PRICE

INCREASES

REQUIRES LESS ADVERTISINGSUPPORT

NEGATIVE

WHEN CUSTOMERS REACTLESS FAVOURABLY

LESS ACCEPTANCE TO BRANDEXTENSION

SENSITIVE TO PRICE

INCREASES

REQUIRES MOREADVERTISING SUPPORT


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Brand Equity as a Bridge

Reflection ofpastinvestmentsin

themarketingofa brand

Direction forfuturemarketing

actionsorprograms


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Brand Knowledge

Brand knowledgeisthe keytocreating brand

equity.

Brand knowledgeconsistsofa brand node in

memorywith a varietyofassociations linkedto

it.

Brand knowledge hastwocomponents:brand

awareness and brand image.


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Brand Awareness And Brand Image


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Brand Equity

CBBE OCCURS

WHEN THE

CUSTOMER HAS A

HIGH LEVELOF

AWARENESS

AND

FAMILIARITY

WITH THE BRANDS AND HOLD

SOME STRONG , FAVOURABLE AND UNIQUE

BRAND ASSOCIATIONS IN MIND


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Sources of Brand Equity

Brand awareness

Brandrecognition

Brandrecall

Brandimage

Strong, favorable, andunique brand

associations


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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)


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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 advantagesAffect choices among brands in the consideration set


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Creating a Positive Brand Image

Brand Associations

Does notmatterwhich sourceofbrand association Needto befavorable, strong, andunique

Marketersshouldrecognizetheinfluenceofthese

othersourcesofinformation by both managing

them aswell aspossible and by adequatelyaccounting forthemin designingcommunication

strategies.


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The Four Steps of Brand Building

1. Ensureidentification ofthe brandwith

customers and an association ofthe brandincustomers minds

2. Establish thetotalityofbrandmeaningin themindsofconsumers

3. Elicitthepropercustomerresponsestothe

brandidentification and brandmeaning

4. Convert brandresponsetocreate an intense,

active loyaltyrelationship between customers

andthe brand


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Four Questions Customers ask of Brands

Who are you?

(brand identity)

What are you?

(brand meaning)

What about you? What do I think or feel aboutyou?

(brand responses)

What about you and me? What kind ofassociation and how much of a connection

would I like to have with you?

(brand relationships)


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CustomerCustomer--Based Brand Equity PyramidBased Brand Equity Pyramid

RESONANCE

SALIENCE

JUDGMENTS FEELINGS

PERFORMANCE IMAGERY

4. RELATIONSHIPS =

What about you and me?

3. RESPONSE =

What about you?

2. MEANING =

What are you?

1. IDENTITY =

Who are you?


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CustomerCustomer--Based Brand Equity ModelBased Brand Equity Model

Consumer-

Brand

Resonance

Brand Salience

Consumer

Judgments

Consumer

Feelings

Brand

PerformanceBrand

Imagery

INTENSE, ACTIVE

LOYALTY

RATIONAL &

EMOTIONAL

REACTIONS

POINTS-OF-

PARITY &POINTS-OF-

DIFFERENCE

DEEP, BROAD

BRAND

AWARENESS


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SubSub--Dimensions of CBBE PyramidDimensions of CBBE Pyramid

LOYALTY

ATTACHMENT

COMMUNITY

ENGAGEMENT

QUALITY

CREDIBILITY

CONSIDERATION

SUPERIORITY

WARMTH

FUNEXCITEMENT

SECURITY

SOCIAL APPROVAL

SELF-RESPECT

CATEGORY IDENTIFICATION

NEEDS SATISFIED

PRIMARY CHARACTERISTICS &

SECONDARY FEATURES

PRODUCT RELIABILITY,DURABILITY & SERVICEABILITY

SERVICE EFFECTIVENESS,

EFFICIENCY & EMPATHY

STYLE AND DESIGN

PRICE

USER PROFILES

PURCHASE & USAGE

SITUATIONSPERSONALITY &

VALUES

HISTORY, HERITAGE

& EXPERIENCES


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BRAND SALIENCE

MEASURES BRAND AWARENESS

EASY TO RECALL

CUES REQUIRED

REMINDERS REQUIRED


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Salience Dimensions

Depth ofbrand awareness

Easeofrecognition andrecall

Strength andclarityofcategorymembership

Breadth ofbrand awareness

P

urchaseconsideration Consumption consideration


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BRAND PERFORMANCE

HOW WELL PRODUCTOR SERVICES MEETS

CUSTOMERS FUNCTIONAL NEEDS


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Performance Dimensions

Primary characteristics and supplementary

features

Product reliability, durability, andserviceability

Service effectiveness, efficiency, and empathy

Style and design

Price


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BRAND IMAGERY

THE WAY PEOPLETHINK ABOUTA BRAND

ABSTRACTLY RATHERTHAN WHATTHEY

THINK BRAND ACTUALLYDOES


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Imagery Dimensions Userprofiles

Demographic andpsychographiccharacteristics Actual oraspirational

Groupperceptionspopularity

Purchase andusagesituations

Typeofchannel, specificstores, easeofpurchase

Time (day, week, month, year, etc.), location, andcontextofusage

Personality and values Sincerity, excitement, competence, sophistication, and

ruggedness

History, heritage, andexperiences Nostalgia

Memories


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BRAND JUDGEMENTS

CUSTOMERSPERSONAL OPINIONS

ABOUT AND

EVALUATION OF ABRAND

CONSUMERS FORM BYPULLING BOTH

BP &BI


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Judgment Dimensions

Brand quality Value

Satisfaction

Brand credibility Expertise

Trustworthiness

Likeability

Brand consideration

Relevance

Brand superiority

Differentiation


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Feelings Dimensions

Warmth

Fun

Excitement

Security

Social Approval Self-respect


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Resonance Dimensions

Behavioral loyaltyFrequency and amountofrepeatpurchases

Attitudinal attachment

Love brand (favoritepossessions;

a littlepleasure

)Proudofbrand

Sense of communityKinship

Affiliation

Active engagementSeek information

Join club

Visitwebsite, chatrooms


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0.17 0.66

0.24

0.65Performance

Imagery Feelings

Judgment

Resonance

0.58

0.49


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Brand Building Implications

Customersown brands.

Donttakeshortcutswith brands

.

Brandsshould have a duality.

Brandsshould haverichness.

Brandresonanceprovidesimportantfocus.


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Relationship of Customer Equity to Brand Equity

Customersdrivethesuccessofbrands butbrands arethe necessarytouch pointthatfirms havetoconnectwith theircustomers.

Customer-based brandequitymaintainsthatbrandscreate value byelicitingdifferentialcustomerresponsetomarketing activities.

The higherpricepremiums andincreasedlevelsof loyaltyengendered by brandsgenerateincremental cash flows.

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Brand Equity Session 3-4

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