A brand value chain is a structured approach to assessing the sources and outcomes of brand equity and the manner by which marketing activities create brand value.

1. BRAND VALUE CHAIN

2. DEFINITION:
 The brand value chain is a structured approach to assessing the sources and
outcomes of brand equity and the manner by which marketing activities
create brand value.

3. How Do Brands Create Value?
 There are four value stages in total, and there are three key elements that
build up each value stage.
 It is a linear process, therefore, each value stage influences the next.
 The effect on each following step is determined by its multiplier.

4. How Do Brands Create Value?

5. Marketing Program Investment
 Brand value chain starts with marketing program investment. It consists of
different types of investments such as product, communications, trade, and
employees.
 Your marketing program investment will directly affect your customer’s
mindset, which will be discussed in the next step.

6. Marketing Program Investment
For you to leverage your marketing program investment, you need to know
precisely the following:
 How To Communicate With Your Consumers
 Which Channels to Use for Communication
 Your Employee’s Methods of Marketing Communication, both online and
offline

7. Multiplier: Program Quality
 Clarity
This refers to the marketing campaign’s messages and its forms of
communications. It is critical to tailor marketing messages to your customers and
their best abilities to understand and interpret the message as intended.
 Relevance
Marketing program should be relevant to your customers. You should identify the
customer's pain points, and inform them of the reasons to buy your product or
service and how it proves relevant to their lives.

8. Multiplier: Program Quality
 Distinctiveness
There are countless marketing campaigns available, your marketing program
should be distinguishable from the other competitors from customer’s standpoint
in order to set you apart from the others and be more attractive.
 Consistency
Your marketing program should be consistent and include integration from
different channels that the program utilizes.

9. Customer Mindset
Marketing program investments influence the customer’s
mindset.

10. Customer Mindset
 Brand Awareness:
The extent and ease with which customers recall and recognize the brand
and can identify the products and services with which it is associated.
 Brand Associations:
The strength, favorability, and uniqueness of perceived attributes and
benefits for the brand. Brand associations often represent key sources of brand
value, because they are the means by which consumers feel brands satisfy their
needs.
 Brand Attitudes:
Overall evaluations of the brand in terms of its quality and the satisfaction it
generates.

11. Customer Mindset
 Brand Attachment
When both product and the brand successfully satisfy or has managed to
exceed customer’s expectations, it attracts customers to become loyal and
attached to the brand.
 Brand Activity:
The extent to which customers use the brand, talk to others about the
brand, seek out brand information, promotions, and events, and so on.

12. Multiplier - Marketplace Conditions
 Competitive Reactions
A competitor’s reaction to one’s marketing campaign will affect the overall
performance of a marketing program investment.
 Channel Support
A great marketing investment is one that utilizes every available channel, online
and offline. How much brand reinforcement and selling effort is being put forth by
various marketing partners?
 Customer size and profile
How many and what types of customers are attracted to the brand? Are they
profitable?

13. Market Performance
 Price Premium
Companies can charge for a premium price when customers have a strong
positive mindset towards the brand.
 Price Elasticities
If the company decides to increase the price of their product or service, it
will not affect the purchasing behavior of their customers.
 Market Share
The total sum of loyal customers will affect the greater share of the total
addressable market.

14. Market Performance
 Brand expansion success
A successful marketing program investment, directed to a brand extension,
will provide additional opportunities for companies to add a product line or
depth, thus adding on a new revenue stream.
 Cost Structure
A successful marketing program investment will also reduce further
marketing investment costs as the brand has a strong presence in the customer’s
mind.
 Profitability
Creating a strong brand gives companies a competitive edge and stretches
the profitability of the company.