CBBE: Consumer Based Brand EquityObjectives for each stage of Brand Development: 1. Identity: Deep, broad brand awareness 2. Meaning: Points of parity and difference 3. Response: Positive, accessible reactions 4. Relationships: Intense, active loyaltyBrand Salience: measures awareness of the brand Depth: how likely it is for a brand element to come to mind Breadth: the range of purchase and usage situations in which a brand element comes to mind.Points of Difference: Attributes that consumers strongly associate with a brand, positively evaluate,andbelieve they could not find to the same extent with a competitive brand.Points of Parity: Not unique to a brand, but may be shared with other brands.Brand Inventory: Includes… names, logos, characters, packaging, slogans, trademarks, inherent productattributes or characteristics of the brand, pricing, communications, distribution policiesBrand Exploratory: provides detailed information as to how consumers perceive the brand – findssources of customer based brand equityThe Brand Value Chain: A structured approach to assessing the source and outcomes of brand equityand the manner by which marketing activities create brand value Brand Value Chain Creation Process: 1. Invest in marketing program 2. Associated marketing activity affects customer mind set 3. Mindset produces the brand performance 4. Investment community considers market performance 5.Brand Equity Charter: Formalized company view of brand equity into a documentBrand Equity Report: Complementary approached based on the GAME plan which measures both inputand outcome metrics.
GAME plan: G – Goal: Identity key brands for next fiscal period A – Activity: Locate current status on baseline M – Measurement: Allocate inputs with specific objectives E – Evaluation: Assess all outputsBrand Equity Responsibilities: Organizational design and structures reflect the growing recognition ofthe importance of the brand and the challenges of managing brand equity.Zaltman Metaphor Elicitation Technique (ZMET): A technique for eliciting interconnected constructsthat influence thought and behavior, based on a belief that consumers often have subconscious motivesfor their purchasing behavior.Brand Personality refers to the human characteristics or traits that can be attributed to a brand. The Big 5 Sincerity - down to earth, wholesome, cheerful Excitement – daring, spirited, imaginative and up to date Competence – reliable, intelligent and successful Sophistication – upper class and charming Ruggedness – outdoorsy and toughAdvantages of Qualitative Techniques: Creative. Ascertain consumer perceptions that may otherwisebe difficult to uncover. Range in techniques is only limited by creativity.Disadvantages of Qualitative Techniques: In-depth insights must be tempered by small sample sizes –can’t make generalizations. Could be questions of interpretation.Brand Dynamics:In Millward Brand’s model consumers are placed into 5 difference brand responses: Presence,Relevance, Performance, Advantage, Bonding – the model adopts a hierarchical approach to determinethe strength of the relationship a consumer has with a brandThe Equity Engine model is based in 3 dimensions of brand affinity – Authority, Identification, Approval– combining brand affinity with measures of a brand’s perceived performance. The equity measure iscombined with price to provide a closer marketplace approximation of how consumers combine brandassociations to make decisions.
Four Pillars of BAV – Difference, Relevance, Esteem, Knowledge - BAV provides comparative measuresof equity value – it’s the world’s largest database of consumer-derived info on brands.The Powergrid depicts the stages in the cycle of brand development, each with its characteristics pillarpatterns in successive quadrants.Brand-Based Comparative Approaches are particularly applicable when the marketing activity underconsideration represents a change from past marketing of the brand.Marketing-Based Comparative Approaches are statistical techniques well suited to determine whetherconsumer response is specific to the brand.Conjoint analysis applications – assess advertising effectiveness and brand value, analyzing brand orprice trade-offSrinivasan, Park, and Chang’s model – uses 3 components – Brand Awareness, Attribute perceptionbiases, and non-attribute preference - to measure brand equity based on the “multi-attribute attitudemodel”Types of Valuation Approaches: (calculating the financial value of a brand)Accounting Background: Cost Approach: Brand Equity is the amount of money that would be required to reproduce or replace the brand Market Approach: The present value of the future economic benefits to be derived by the owner of the asset Income Approach: The discounted future cash flow from future earnings stream for the brandValuation Approaches: Market Segmentation: Split consumer market for brand into homogenous groups Financial analysis: Identify & forecast revenues and earnings from tangibles generated by the brand for each of the distinct segments. Demand analysis: Assess the role the brand plays in driving demand for products & services Competitive Benchmarking: Determine competitive strengths and weaknesses to the brand to derive the brand’s specific discount rate Brand Value Calculation: Calculate the brand value as the NPV of forecast brand earnings, discounted by the brand discount rate
The Brand Product Matrix: Brand Line – all products sold under a particular brand – may include different brands or a single family brand or individual brand that has been line extended. Brand portfolio – set of all brands and brand lines that a particular firm offers for sale to buyersBreadth of Branding Strategy – Breadth of Product Mix:3 categories determine inherent attractiveness of a product category: Aggregate market factors,category factors and environmental factorsCombining Brand Elements from Different Levels: Primary brand elements should convey the mainproduct positioning and points of difference… secondary brand elements convey a more restricted set ofsupporting associations, such as points of parity or perhaps an additional point of difference.