Value is added by change in customer behavior, NOT attitude
What determines what a brand is worth? value lies with the customers. What they know and feel about a brand
It’s the beginning of the chain. Where you start with a productR &DAdvertising, promotion, PRTrade and intermediary supportEmployee traiingClarity- how understandable is ther marketing campaign? Do customers properly interprety the meaning conveyed?Relevance- how meaningful is the campaign?Distintiveness- how unique is it compared to competitors?Consistency- how well integrated I the marketing? Do they combine well?
C mindset- how has the customer been changed by the campaign?MP conditions- measures extent to which value is created in minds of customers affects market performance.Comp. reactions- how effective are the marketing investmens of other competing brands?Channel support- level of bran reinforment and selling effort taken by marketing partnersCustomer size and profile-how many and what type of customers are attracted to the brand
Premium- how much extra people are willing to payElasticity- how does demand change with price changesCost structure- savings in terms of ability to reduce marketing expendituresBrand contribution- how important is the brand to the firms brand portfolio?
Marketers rarely get something for nothing
Accounting? Same thing. But External, customer focused
Also look at competitionConsistency throughout a brand line-kellogs
Qual: harder to find out since people can answer anything they wantQuan: more definitative
Good for regular check ups and when change is contemplatedDoes a brand like converse need to regularly check up on its branding? What about walmart?
Helps us understand category dynamics, consumer behavior, competitive vulnerabilities and opportunities, and marketing effectiveness and efficiency
Associations: potential sources of brand equity benefit associations – determine behavior Turn to page 399 like a simple survey you have taken before
How well is the family managed?How approachable? How accessible?How much do you like doing business with brand?How concerned is brand with its customers?
How to evaluate a corporation
Current customers, non usersDistinguish between heavy and light usersChannel intermediaries which products sell faster in the shop?employees
Mature markets- opinions stay stillEmerging markets- opinions are unpredictable and may shift quickly
Benchmarks-what is a high level of enjoyment? Low level?Sensitive- compared with one month ago? Or compared with other brands? Rather than how much do you like it?Ask about don’t knows….means apathy.
company’s viewScope of brands in the manner in which they have been branded, explain importanceWhat actual and desired equity isHow brand equity is measuredHow brand equity can be managed in general strategic guidelinesHow marketing campaings can be devides in terms of guidelinesProper treament of brand in terms of trademark usage, packaging, and communications.Updated yearly.
Should also include: shipments retail trends cost breakdowns profit assesments price and discount schedules when appropriate
Robert Malcom gives us the GAME planAllows us to see insight into the mkt performance component of the brand value chain
Any brands that you have notices have failed?Dunkaroos?
Need to create a new positionBrand audits, tracking groups, brand strength monitorsCheck out and weaknesses and strengthen them or exploit an opportunityEvaluating advertising campaigns, HR plansWith respect to core valuesHelps determine how much of a budget to allocate to branding
What does a brand equity measurement
system mean to you?
What about a brand equity management
Brands need to:
◦ Measure what they do and prove their
Ability to generate cash flow
Create customer value
A structured approach to assessing the
sources and outcomes of brand equity and
how marketing activities create brand value.
Where do you think the value of a brand lies?
Allows insight as to where value is created
and where to improve
To create value, you need a well-funded,
well-planned, and well-implemented
Need to ensure value transfers from stage to
Less frequent for durable goods?
What do you think?
Deciding on appropriate benchmarks
Sensitive tracking measures
“don’t know” or no response?
None of the before mentioned information
matters until it is put into action
Increases likelihood of good decisions
Formal written document containing the
company view of brand equity
Find out what is happening with the brand
Summary of customer perfections of attribute
or benefit associations
Measures of performance and sources and
outcomes of the brand equity
Goal: identify key brands
Activity: locate status on a baseline compared
Measurement: allocate inputs with objectives
such as increasing purchase intensity
Evaluation: assess the outputs
Organizational responsibilities must be
Weak brands have a lack of discipline,
commitment, and investment.
1. Review brand-sensitive material
2. Review status of brand initiatives
3. Review brand-sensitive products
4. Review product and distribution strategies
5. Resolve brand positioning conflicts
What is the difference between a monetary
valuation and the CBBE concept of keller?
Where do you see links?
Which brands would you have expected to be
higher or lower on the list and why?
In 2005, Phillips was very proud that their
vale as estimated by Interbrand had
improved. Philips attributed this to the
introduction of the new positioning
earmarked by their “Sense and Simplicity”
slogan. In how far do you think this is
justified? In what way do such branding attics
influence the calculations of Interbrand?
What effects do awareness and brand
associations have on consumer
Consumers respond to the marketing
campaign when the brand is changed
Consumers respond to the brand when the
marketing campaign changes (price, new
A combination of changes in brand and
A B C
Coke A $1.00 Good
Coke B $1.50 Bad
Pepsi A $1.25 Bad
Pepsi C $1.00 Bad
Afri-cola C $0.85 Good
Afri-cola B $1.25 Bad
Tries to put a value on the brand, either
abstract or financial
Brand equity is calculated by taking away the
physical aspects of the product and using just
Attempts to put a financial value on a brand
Cost – how much would it cost to recreate it?
Market – how much could you sell it for right
Income – how much will it make in the future?
How much would it cost to recreate it?
Expensive ads don’t always equal success
How much could you sell it for right now?
Disney bought Lucasfilm for $4.05 billion
There aren’t enough market transactions to
base any solid estimates off of
Tries to find the value of a brand by using
future cash flow and profits
Split the consumer market into groups
according to applicable criteria (product,
Forecasted revenues and earnings from
intangibles for each of the categories from
the market segmentation step
The role that the brand has in driving demand
Role of Branding Index (RBI) – find the drivers
in a market, then calculate the degree to
which each driver is connected to the brand
weaknesses of the
brand to make a
discount rate (risk
Calculate the Net Present Value of future
earnings, discounted by the brand discount
rate (from the competitive benchmarking
This will give the brand’s ability to continue
to generate revenue