Sources Of Brand Equity


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Sources Of Brand Equity

  1. 1. Measuring sources of brand equity: Capturing mindset
  2. 2. Techniques <ul><li>Quantitative </li></ul><ul><li>Qualitative </li></ul><ul><li>Free Association </li></ul><ul><li>Projective Techniques </li></ul><ul><li>Brand Personality and Values </li></ul><ul><li>Experiential Methods </li></ul>
  3. 3. Techniques <ul><li>Quantitative </li></ul><ul><li>Qualitative </li></ul><ul><li>Awareness </li></ul><ul><li>Image </li></ul><ul><li>Brand Responses </li></ul><ul><li>Brand Relationships </li></ul>
  4. 4. Qualitative Research Techniques <ul><li>Free Association </li></ul><ul><li>Projective Techniques </li></ul><ul><li>Brand Personality and Values </li></ul><ul><li>Experiential Methods </li></ul>
  5. 5. Free Association <ul><li>Identify the range of possible brand associations in consumers’ minds in terms of - </li></ul><ul><li>Relative strength </li></ul><ul><li>Favorability </li></ul><ul><li>Uniqueness of brand associations </li></ul>
  6. 6. Projective Techniques <ul><li>Diagnostic tools to uncover true opinions & feelings of consumers when they are unwilling/ unable to express themselves </li></ul><ul><li>Completion and Interpretation Tasks: </li></ul><ul><li>“ Fill in the Bubble” approach for analysis. </li></ul><ul><li>Comparison Tasks: Consumers convey their impressions by comparing brands to people, countries,animals, activities etc. </li></ul>
  7. 7. Brand Personality and Values <ul><li>Solicit open-ended responses to questions linking the brand to persons, animals & objects. </li></ul><ul><li>A research project conducted in the U.S. reflected the following “Big 5” factors of brand personality </li></ul><ul><li>Sincerity </li></ul><ul><li>Excitement </li></ul><ul><li>Competence </li></ul><ul><li>Sophistication </li></ul><ul><li>Ruggedness </li></ul>
  8. 8. Quantitative Research Techniques <ul><li>Awareness </li></ul><ul><li>Image </li></ul><ul><li>Brand Responses </li></ul><ul><li>Brand Relationships </li></ul>
  9. 9. Awareness <ul><li>Strength of the brand in memory & consumers’ ability to identify various brand elements. </li></ul><ul><li>Recognition: consumers’ ability to identify the brand under different circumstances </li></ul><ul><li>Recall </li></ul><ul><li>‘ Unaided recall’ -identification with minimal cues. </li></ul><ul><li>‘ Aided recall’ uses various cues to assist recall. </li></ul>
  10. 10. Image <ul><li>Lower Level Consumer perceptions of specific performance and imagery attributes. </li></ul><ul><li>Scaling Considerations </li></ul><ul><li>Absolute or comparative </li></ul><ul><li>Spatial or numerical </li></ul><ul><li>More complex methods </li></ul><ul><li>Multidimensional scaling (MDS) </li></ul><ul><li>Conjoint Analysis </li></ul><ul><li>Perceptual Mapping </li></ul>
  11. 11. Brand Responses <ul><li>Higher level considerations -judgments and feelings & combination with lower-level considerations </li></ul><ul><li>Purchase Intentions: </li></ul><ul><li>Action - Buying for own use or as gift </li></ul><ul><li>Target - Specific product or brand </li></ul><ul><li>Context - Type of store based on prices </li></ul><ul><li>Time - Within week/month/year </li></ul>
  12. 12. Brand Relationships <ul><li>Behavioral Loyalty </li></ul><ul><li>Brand Substitutability: Higher the repeat purchases, greater the brand equity, and lesser the level of brand substitutability. </li></ul>
  13. 13. Brand Extensions <ul><li>Develop a new brand, individually chosen for the new product </li></ul><ul><li>Use a combination of a new brand with an existing brand. </li></ul>
  14. 14. Brand extension <ul><li>When a firm uses an established brand name to introduce a new product. </li></ul><ul><li>1. Line Extension : The parent brand is used to brand a new product that targets a new market segment within a product category currently served by the parent brand. </li></ul><ul><li>2. Category Extension : The parent brand is used to enter a different product category from that currently served by the parent brand. </li></ul>
  15. 15. Advantages of Extensions <ul><li>Facilitate new product acceptance </li></ul><ul><li>Provide feedback benefits to the parent brand and company. </li></ul>
  16. 16. Advantages <ul><li>Facilitate New product acceptance </li></ul><ul><li>Improve brand Image </li></ul><ul><li>Reduce perceived risk of customers </li></ul><ul><li>Improved distribution and trial </li></ul><ul><li>Increase efficiency of promotional expenditures </li></ul><ul><li>Reduce costs of introductory and follow-up marketing programs </li></ul><ul><li>Avoid cost of developing a new brand </li></ul><ul><li>Allow for packaging and labeling efficiencies </li></ul><ul><li>Permit consumer variety-seeking </li></ul>
  17. 17. Advantages <ul><li>Provide Feedback benefits to the Parent Brand and Company </li></ul><ul><li>Clarify brand meaning </li></ul><ul><li>Enhance parent brand image </li></ul><ul><li>Increase market coverage </li></ul><ul><li>Revitalize the brand </li></ul><ul><li>Permit subsequent extensions </li></ul>
  18. 18. Disadvantage s <ul><li>Confuse or frustrate consumers </li></ul><ul><li>Encounter retailer resistance </li></ul><ul><li>Hurt parent brand image in case of failure </li></ul><ul><li>Cannibalize sales of parent brand </li></ul><ul><li>Dilute brand meaning </li></ul>
  19. 19. Brand Extension - Conclusions <ul><li>Parent brand has favorable associations </li></ul><ul><li>Perception fit between the parent brand and the extension product. </li></ul><ul><li>High-quality brands stretch farther than average-quality brands </li></ul><ul><li>Brand that is seen as prototypical of a product category can be difficult to extend outside the category </li></ul><ul><li>Emphasizes information about the extension, rather than reminders about the parent brand. </li></ul>
  20. 20. Managing brands over time Long term effects of marketing actions on Brand Equity Consumer response to PAST marketing activity Brand Awareness & Brand Image Consumer response to CURRENT marketing activity CHANGED Brand Awareness & Brand Image Consumer response to FUTURE marketing activity
  21. 21. Managing brands over time <ul><li>Reinforcing brands </li></ul><ul><li>Maintaining Brand Consistency </li></ul><ul><li>Market Leaders and Failures </li></ul><ul><li>Consistency and Change </li></ul><ul><li>Protecting Sources of Brand Equity </li></ul><ul><li>Fortifying versus Leveraging </li></ul><ul><li>Fine-tuning Supporting Marketing Program </li></ul><ul><li>Product-Related Performance Associations </li></ul><ul><li>Non Product-Related Imagery Associations </li></ul>
  22. 22. Managing brands over time <ul><li>Revitalizing brands </li></ul><ul><li>Expanding Brand Awareness </li></ul><ul><li>Identifying Additional or New Usage Opportunities </li></ul><ul><li>Identifying New and Completely Different Ways to Use the Brand </li></ul><ul><li>Improving Brand Image </li></ul><ul><li>Repositioning the Brand </li></ul><ul><li>Changing Brand Elements </li></ul><ul><li>Entering New Markets </li></ul>
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