This document discusses brand management and customer-based brand equity. It defines what a brand is and explains the challenges of brand management. It introduces the concept of customer-based brand equity and presents a model for building brand equity with customers. The model includes increasing brand awareness and salience, strengthening brand performance and imagery associations, improving customer judgments and feelings about the brand, and developing customer resonance and loyalty with the brand.

1. BRAND MANAGEMENT
1

2. What is a Brand?
A brand is a name, term, sign, symbol, or
design which is intended to identify the
goods or services of one seller or group
of sellers and to differentiate them from
those of competitors.
2

3. New Branding Challenges
 Brands are important as ever
◦ Consumer need for simplification
◦ Consumer need for risk reduction
 Brand management is as difficult as ever
◦ Savvy consumers
◦ Increased competition
◦ Decreased effectiveness of traditional marketing
tools and emergence of new marketing tools
◦ Complex brand and product portfolios
3

4. The Customer/Brand Challenge
In this difficult environment, marketers must have
a keen understanding of:
◦ customers
◦ brands
◦ the relationship between the two
4

5. The Concept of Brand Equity
 The brand equity concept stresses the importance
of the brand in marketing strategies.
 Brand equity is defined in terms of the marketing
effects uniquely attributable to the brand.
◦ Brand equity relates to the fact that different
outcomes result in the marketing of a product or
service because of its brand name, as compared
to if the same product or service did not have
that name.
5

6. The Concept of Customer-Based Brand Equity
 Customer-based brand equity
◦ Differential effect
◦ Customer brand knowledge
◦ Customer response to brand marketing
6

7. Determinants of Customer-Based Brand Equity
◦ Customer is aware of and familiar with the brand
◦ Customer holds some strong, favorable, and
unique brand associations in memory
7

8. Building Customer-Based Brand Equity
 Brand knowledge structures depend on . . .
◦ The initial choices for the brand elements
◦ The supporting marketing program and the
manner by which the brand is integrated into it
◦ Other associations indirectly transferred to the
brand by linking it to some other entities
8

9. Benefits of Customer-Based Brand Equity
 Enjoy greater brand loyalty, usage, and affinity
 Command larger price premiums
 Receive greater trade cooperation & support
 Increase marketing communication effectiveness
 Yield licensing opportunities
 Support brand extensions.
9

10. Customer-Based Brand Equity as a “Bridge”
Customer-based brand equity represents the
“added value” endowed to a product as a result
of past investments in the marketing of a brand.
Customer-based brand equity provides direction
and focus to future marketing activities
10

11. The Key to Branding
 For branding strategies to be successful,
consumers must be convinced that there are
meaningful differences among brands in the
product or service category.
 Consumer must not think that all brands in the
category are the same.
 PERCEPTION = VALUE
11

12. Brand Positioning
Brand Positioning
◦ Brand positioning is all about identifying the
optimal location in our customers’ minds for
our Brand and our competitors
◦ Proper positioning makes it easier to facilitate
understanding of our Brand
 Taken to its’ logical conclusion, you might think of
the Principle as an indicator of a brand’s position

13. First Steps
 The first step is to identify and establish Brand
positioning and brand values
 Positioning is the foundation for creating and
fostering the desired knowledge and perceptions
of your customers ---the 3 types of associations in
memory-
◦ We can really only manage one (positive), can
respond to a second (negative), and have no
control over the third (idiosyncratic)

14. Proper Positioning
 Proper positioning
◦ Clarifies what the Brand is all about
◦ How it is both unique and similar to competitive
brands
◦ Why customers should purchase and use the
Brand

15. Example- Monaco Smart Chips
“Not fried”
 First time in chips
 Gap in the market today
for a healthy and tasty
snack
 Targeted mainly towards
health conscious urban
youth
 Reinforced by Amir Khan
saying “you’ll need this”
for an extra large t-shirt

16. In order to Position a Brand…
 …you must decide
◦ Who the Target Consumer is
◦ Who your main competitors are
◦ How the Brand is similar to your competitors
◦ How the Brand is different from your
competitors
 Where do you get this information?
◦ Your BRAND INVENTORY!!

17. Target Market Segmentation
 A market segment should have similar knowledge
structures and brand knowledge
◦ Similar knowledge structures might mean
similar perceptions and beliefs about your
Brand
 There are 2 ways to segment
◦ Descriptive: characteristics of the individuals in
the market
◦ Behavioral: grouped by how individuals in the
market perceive or use the product

18. Toothpaste Segmentation
 Four main segments
 Sensory segment
◦ Whiteness
 Sociables Low Price
Good breath
◦ Good breath
 Worriers
◦ Decay Prevention
 Independent
◦ Low Price 3 stripes, one for
Decay Prevention
each of the 3 main
segments

19. Target Market Segmentation
 Which works better? Behavioral
◦ Easier to match perceptions (right/wrong) or beliefs
(right/wrong) with strategy (reinforce/change).
◦ Many times, behavior and descriptive go hand in
hand
 Demographics may be basis of targeting, but tend to
represent some underlying behavioral reason
◦ In some cases, demographics may mask underlying
differences

20. Advantages of demographic segmentation
 Demographic segmentation is well known, easier
to buy media on that basis
 However, with the emergence of non-traditional
media, this advantage is getting smaller
◦ Web ads can target by demographics
traditionally difficult to access
 Working executives, College students

21. Criteria for a Segment
 Identifiability
◦ Can the segment be easily identified?
 Size
◦ It is big enough to bother?
 Accessibility
◦ Are distribution outlets and media available to us to
reach the segment?
 Responsiveness
◦ How favorably will the segment respond to a tailored
marketing program? (this one is tough to quantify)

22. The Competition
 Market Segments define competitors
◦ They are targeting the same segments
 Don’t be too narrow in your definition of
competitors
 Consider Sprite
◦ Product Type (non-cola soft drinks)
◦ Product Category (all soft drinks)
◦ Product Class (all beverages)

23. PepsiCo Competitive analysis

24. Part 3: POP and POD
 POD (Point of Difference)
◦ Strong, favorable, unique brand associations
◦ May be any kind of attribute or benefit
 Two types of PODs
◦ Attribute Based
 Functional, performance related differences
◦ Image Based
 Affective, experiential, brand image related
differences

25. Part 3: POP and POD
 POP (Point of Parity)
◦ Associations that are shared with other brands
 Two types
◦ Category: attributes that are required to
include your product as a member of that
category
◦ Competitive: POP that negate your competitors
PODs
 POPs can be “good enough”, but PODs should be
“superior

26. Similar concepts
 Unique Selling Proposition (USP; Reeves and Bates)
◦ Advertisers should give a compelling reason to buy a
product that competitors could not match
 What component of the Suzuki reflects this?
 Sustainable Competitive Advantage (SCA)
 The advantage of delivering superior value in the
marketplace for a prolonged period of time
 Further, SCAs can result from any component of
the firm
 Similar to notion that Principle exists in every part
of the firm

27. POP AND POD: BMW over the years
1991
1985
1975
1971
• Affluence, exclusivity
• Fun to drive
• Affluence, exclusivity
• Fun to drive
• Fun to drive
• Economical
• International
• Desirability 27

28. Strategic Brand Management
 Strategic brand management involves the design
and implementation of marketing programs and
activities to build, measure, and manage brand
equity.
 The strategic brand management process is
defined as involving four main steps:
1) Identifying and establishing brand positioning
and values
2) Planning and implementing brand marketing
programs
3) Measuring and interpreting brand performance
4) Growing and sustaining brand equity
28

29. Strategic Brand Management Process
STEPS KEY CONCEPTS
Mental maps
Identify and Establish Competitive frame of reference
Brand Positioning and Values Points-of-parity and points-of-difference
Core brand values
Brand mantra
Plan and Implement Mixing and matching of brand elements
Brand Marketing Programs Integrating brand marketing activities
Leveraging of secondary associations
Brand Value Chain
Measure and Interpret Brand audits
Brand Performance Brand tracking
Brand equity management system
Brand-product matrix
Grow and Sustain Brand portfolios and hierarchies
Brand Equity Brand expansion strategies
Brand reinforcement and revitalization
29

30. Motivation for Customer-Based Brand Equity
Model
 Marketers know strong brands are
important but aren’t always sure how to
build one.
 CBBE model was designed to be …
◦ comprehensive
◦ cohesive
◦ well-grounded
◦ up-to-date
◦ actionable
30

31. Rationale of Customer-Based Brand Equity Model
 Basic premise: Power of a brand resides in the
minds of customers
 Challenge is to ensure customers have the right
types of experiences with products & services and
their marketing programs to create the right brand
knowledge structures:
◦ Thoughts
◦ Feelings
◦ Images
◦ Perceptions
◦ Attitudes
31

32. Building Customer-Based Brand Equity
 Building a strong brand involves a series of steps as part of a
“branding ladder”
 A strong brand is also characterized by a logically
constructed set of brand “building blocks.”
◦ Identifies areas of strength and weakness
◦ Provides guidance to marketing activities
32

33. CUSTOMER-BASED BRAND EQUITY PYRAMID
4. RELATIONSHIPS =
RESONANCE What about you & me?
3. RESPONSE =
JUDGMENTS FEELINGS
What about you?
2. MEANING =
PERFORMANCE IMAGERY What are you?
1. IDENTITY =
SALIENCE
Who are you?
33

34. Salience Dimensions
 Depth of brand awareness
◦ Ease of recognition & recall
◦ Strength & clarity of category membership
 Breadth of brand awareness
◦ Purchase consideration
◦ Consumption consideration
34

35. Performance Dimensions
 Primary characteristics & supplementary features
 Product reliability, durability, and serviceability
 Service effectiveness, efficiency, and empathy
 Style and design
 Price
35

36. Imagery Dimensions
 User profiles
◦ Demographic & psychographic characteristics
◦ Actual or aspirational
◦ Group perceptions -- popularity
 Purchase & usage situations
◦ Type of channel, specific stores, ease of purchase
◦ Time (day, week, month, year, etc.), location, and context
of usage
 Personality & values
◦ Sincerity, excitement, competence, sophistication, &
ruggedness
 History, heritage, & experiences
◦ Nostalgia
◦ Memories
36

37. Judgment Dimensions
 Brand quality
◦ Value
◦ Satisfaction
 Brand credibility
◦ Expertise
◦ Trustworthiness
◦ Likability
 Brand consideration
◦ Relevance
 Brand superiority
◦ Differentiation
37

38. Feelings Dimensions
 Warmth
 Fun
 Excitement
 Security
 Social approval
 Self-respect
38

39. Resonance Dimensions
 Behavioral loyalty
◦ Frequency and amount of repeat purchases
 Attitudinal attachment
◦ Love brand (favorite possessions; “a little pleasure”)
◦ Proud of brand
 Sense of community
◦ Kinship
◦ Affiliation
 Active engagement
◦ Seek information
◦ Join club
◦ Visit web site, chat rooms
39

40. Customer-Based Brand Equity Model
Consumer- INTENSE, ACTIVE
LOYALTY
Brand
Resonance
RATIONAL &
Consumer Consumer EMOTIONAL
Judgments Feelings REACTIONS
POINTS-OF-
PARITY &
Brand Brand POINTS-OF-
Performance Imagery DIFFERENCE
DEEP, BROAD
Brand Salience BRAND
AWARENESS
40

41. Brand Positioning
 Define competitive frame of reference
◦ Target market
◦ Nature of competition
 Define desired brand knowledge structures
◦ Points-of-parity
 necessary
 competitive
◦ Points-of-difference
 strong, favorable, and unique brand
associations
41

42. Issues in Implementing
Brand Positioning
 Establishing Category Membership
 Identifying & Choosing POP’s & POD’s
 Communicating & Establishing POP’s &
POD’s
 Sustaining & Evolving POD’s & POP’s
42

43. Establishing Category
Membership
 Product descriptor
 Exemplar comparisons
43

44. Identifying & Choosing
POP’s & POD’s
 Desirability criteria (consumer
perspective)
◦ Personally relevant
◦ Distinctive & superior
◦ Believable & credible
 Deliverability criteria (firm perspective)
◦ Feasible
◦ Profitable
◦ Pre-emptive, defensible & difficult to attack
44

45. Major Challenges in
Positioning
 Find compelling & impactful points-
of-difference (MacMillan & McGrath,
HBR, ‘97)
◦ How do people become aware of their need for
your product and service?
◦ How do consumers find your offering?
◦ How do consumers make their final selection?
◦ How do consumers order and purchase your
product or service?
◦ What happens when your product or service is
delivered?
◦ How is your product installed?
◦ How is your product or service paid for?
45

46. Major Challenges in
Positioning
 Find compelling & impactful points-
of-difference (cont.)
◦ How is your product stored?
◦ How is your product moved around?
◦ What is the consumer really using your product
for?
◦ What do consumers need help with when they
use your product?
◦ What about returns or exchanges?
◦ How is your product repaired or serviced?
◦ What happens when your product is disposed of
or no longer used?
46

47. Communicating & Establishing
POP’s & POD’s
 Create POP’s and POD’s in the face of
attribute & benefit trade-offs
◦ Price & quality
◦ Convenience & quality
◦ Taste & low calories
◦ Efficacy & mildness
◦ Power & safety
◦ Ubiquity & prestige
◦ Comprehensiveness (variety) & simplicity
◦ Strength & refinement
47

48. Strategies to Reconcile
Attribute & Benefit Trade-Offs
 Establish separate marketing programs
 Leverage secondary association (e.g., co-
brand)
 Re-define the relationship from negative to
positive.
48

49. Sustaining & Evolving
POP’s & POD’s
 Core Brand Values &
Core Brand Proposition
49

50. Core Brand Values
 Set of abstract concepts or phrases that
characterize the 5-10 most important
dimensions of the mental map of a brand.
 Relate to points-of-parity and points-of-
difference
 Mental Map  Core Brand Values  Brand
Mantra
50

51. Brand Mantras
 A brand mantra is an articulation of the “heart
and soul” of the brand.
◦ Brand mantras are short three to five word phrases
that capture the irrefutable essence or spirit of the
brand positioning and brand values.
 Nike
◦ Authentic Athletic Performance
 Disney
◦ Fun Family Entertainment
51

52. 52

53. 53

54. Outline
 The mandate for effectiveness
 What makes an ad effective?
 The world of advertising
 The five players of advertising
 The evolution of advertising

55.  Today advertising is in a bind
 Advertisers expect specific results that lead
The Mandate for
to sales
 Advertising must be effective
Effectiveness
55

56. What Makes an Ad
Effective?
 Effectiveads work on two levels:
with consumers and with advertisers
 Characteristics of effective ads:
◦ Strategy
◦-
◦ Execution
◦ Advertising must be goal directed
56

57. The World of Advertising
Defining advertising
• A paid form of communication
• A sponsor is identified
• Tries to persuade or influence the
consumer to do something
• Conveyed through mass media
• Reaches a large audience
• Is nonpersonal
57

58. Types of Advertising
 Brand advertising  Business-to-business
 Retail/local advertising
advertising  Institutional advertising
 Political advertising  Public service
 Directory advertising (PSA)
advertising  Interactive advertising
 Direct-response
advertising
58

59. The Roles of Advertising
 Marketing role
 Communication role
 Economic role
 Societal role
59

60. Functions of Advertising
 Provide product and brand
information
 Provide incentives to take action
 Provide reminders and reinforcement
60

61. The Five Players of Advertising
 Advertiser
 Advertising agency
◦ The advertising department
◦ The in-house agency
 Media
 Vendors
 Target audience
61

62. The Evolution of Advertising
 Age of print
 Industrial revolution and emergence of
consumer society
 Modern advertising: Agencies, science
and creativity
 Accountability era
62

63. Current Advertising Issues
 Interactive advertising
 Globalization
 Niche marketing
 Integrated marketing communications
(IMC)
 Consumer Power
63

64. How Brands Work
 Brand personalities
 Branding
 Trust
 Brand image
 Brand relationships
 Brand equity
64

65. MARKETING PLANNING PROCESS
Complex,
Varied
Marketing
Activity
Detailed, Comprehensive,
Rich Robust
Marketing Marketing
Models Measures
65

66. Role of Integrated Marketing
Communications
 Marketing communications …
◦ are the “voice” of the brand and are a means by
which it can establish a dialogue and build
relationships with consumers.
◦ allow marketers to inform, persuade, incent,
and remind consumers directly or indirectly
◦ can contribute to brand equity by establishing
the brand in memory and linking strong,
favorable, and unique associations to it.
66

67. Role of Integrated Marketing
Communications (Cont.)
◦ Consumers can be told or shown how and why a
product is used, by what kind of person, and where and
when;
◦ Consumers can learn about who makes the product
and what the company and brand stand for
◦ Consumers be given an incentive or reward for trial or
usage
◦ Brands can be linked to other …
 People
 Places
 Events
 Brands
 Experiences
 Feelings
 Things 67

68. Simple Test for
Marketing Communications
1. 3. 2.
Current Desired
Brand Brand
Knowledge Knowledge
68

69. Integrated Marketing Communications
and Customer-Based Brand Equity
 One implications of the CBBE framework is
that the manner in which brand
associations are formed does not matter --
only the resulting strength, favorability, and
uniqueness
69

70. Designing Integrated Marketing
Communications Programs
 From the perspective of customer-based brand
equity, marketers should evaluate all possible
communication options available to create
knowledge structures according to effectiveness
criteria as well as cost considerations.
 Different communication options have different
strengths and can accomplish different
objectives.
70

71. Alternative Communication Options
(Consumer)
 Media Advertising (TV, radio, newspapers, magazines)
 Direct Response Advertising
 Interactive (on-line) Advertising & Web Sites
 Outdoor Advertising (billboards, posters, cinema)
 Point-of-Purchase Advertising
 Trade Promotions
 Consumer Promotions
 Sponsorship of Event Marketing
 Publicity or Public Relations
71

72. Alternative Communication Options
(Business-to-Business)
 Media Advertising (TV, radio, newspaper, magazines)
 Trade Journal Advertising
 Interactive (on-line) Advertising & Web Sites
 Directories
 Direct Mail
 Brochures & Sales Literature
 Audio-Visual Presentation Tapes
 Giveaways
 Sponsorship or Event Marketing
 Exhibitions, Trade Shows, Conventions
 Publicity or Public Relations
72

73. Print Ad Evaluation Criteria
 Is the message clear at a glance?
 Is the benefit in the headline?
 Does the illustration support the headline?
 Does the first line of the copy support or
explain the headline and illustration?
 Is the ad easy to read and follow?
 Is the product easily identified?
 Is the brand or sponsor clearly identified?
73

74. Ad Campaign Considerations
 Campaigns make brands -- not single ads
 Be creative and develop creative themes
◦ Avoid slavishly sticking to executional formulas
 Brand communications should sing like a choir
◦ Multiple voices
◦ Multiple notes
 Find fresh consumer insights & compelling brand
truths
 Productively conduct ad research
74

75. IMC Case Study
CMPB Success Factors
 Smart strategy
◦ Relative deprivation
 Imaginative creative
◦ Funny but relevant
 Clever hook
◦ “Got milk?” slogan
 Timely secondary media
◦ In store
 Right partners
75

76. Common Mistakes in
Developing Advertising
 Failure to distinguish ad positioning (what
you say) from ad creative (how you say it)
 Mistaken assumptions about consumer
knowledge
 Improperly positioned
 Failure to break through the clutter
 Distracting, overpowering creative in ads
76

77. Common Mistakes in
Developing Advertising
(cont.)
 Under-branded ads
 Failure to use supporting media
 Changing campaigns too frequently
 Substituting ad frequency for ad quality
77

78. Audience Communication Option Overlap
Communication Communication
Option A Option B
Communication Option C
Note: Circles represent the market segments reached by various communication options.
Shaded portions represent areas of overlap in communication options. 78

79. Evaluating IMC Programs
 Coverage - what proportion of the target
audience is reached by each
communication option employed, as well as
how much overlap exists among options.
 Cost - what is the per capita expense.
79

80. Evaluating IMC Programs
(cont.)
 Contribution - the collective effect on
brand equity in terms of
◦ enhancing depth & breadth of awareness
◦ improving strength, favorability, & uniqueness of
brand associations
 Commonality - the extent to which
information conveyed by different
communication options share meaning
80

81. Evaluating IMC Programs (cont.)
 Complementarity - the extent to which
different associations and linkages are
emphasized across communication options
 Versatility - the extent to which information
contained in a communication option works
with different types of consumers
 Different communications history
 Different market segments
81

82. “Keller Be’s”
 Be analytical: Use frameworks of consumer
behavior and managerial decision-making to
develop well-reasoned communication programs
 Be curious: Fully understand consumers by using
all forms of research and always be thinking of how
you can create added value for consumers
 Be single-minded: Focus message on well-
defined target markets (less can be more)
 Be integrative: reinforce your message through
consistency and cuing across all communications
82

83. “Keller Be’s”
 Be creative: State your message in a
unique fashion; use alternative promotions
and media to create favorable, strong, and
unique brand associations
 Be observant: Monitor competition,
customers, channel members, and
employees through tracking studies
 Be realistic: Understand the complexities
involved in marketing communications
 Be patient: Take a long-term view of
communication effectiveness to build and
manage brand equity
83

84. THANK you
84