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Customer-Based Brand Equity Model
Soroush Mosavati
V 1,2 - Jan, 2015
A brand comes to embody a promise about the
goods it identifies, a promise about quality,
performance, or other dimensions of value, which
can influence consumers' choices among competing
products.
Brand can convey six level of meaning (Kotler):
 Attribute: durable, prestigious, well engineered, and expensive
 Benefits: functional, emotional and self expressive
 Values: high performance, safety
 Culture: German culture, organized, efficient, high quality
 Personality: austere, aggressive, no-nonsense person
Quality of experience
 Experience economy is a new kind of emerging economy in which increasing
numbers of industrial practitioners find out the importance of capitalizing on
the customer experience (Xu & Chan, 2010).
 Competitive environment delivers quality of experience rather than quality of
service (Klaus & Maklan, 2007).
There is a relationship between quality of experience
and overall brand equity.
Brand Equity
 Brand equity refers to the marketing effects or outcomes that accrue to a
product with its brand name. Consumers believe that a product with a well-
known name is better than products with less well known names.
The value of brand equity is the “expected future revenue”.
Benefits of Brand Equity:
 Enabling buying decisions
 Builds Customer Loyalty
 Builds Market Share
 Protect Market Share
 Helps Command Higher Price
 Create a Halo Effect
 Assists Product, Service and Business Expansion
Brand experience is also lead to
positive brand equity
 Brand awareness: Consumers are aware of the brand.
 Brand recognition: Consumers recognize the brand and know what it
offers versus competitors.
 Brand trial: Consumers have tried the brand.
 Brand preference: Consumers like the brand and become repeat
purchasers. They begin to develop emotional connections to the brand.
 Brand loyalty: Consumers demand the brand and will travel distances
to find it. As loyalty increases so do emotional connections until there is
no adequate substitute for the brand in the consumer’s mind.
 Brand Maintenance: Sustain that loyalty and positive brand equity for
years to come.
building brand equity with keller’s
Customer-Based Brand Equity model
Keller’s CBBE model is marketing focus
The basic premise of the CBBE concept is that the power of a brand lies in what
customers have learned, felt, seen, and heard about the brand as a result of their
experiences over time.
Strategic Brand Management
SBM involves the design and implementation of marketing programs and
activities to build, measure, and manage brand equity.
Strategic brand management process has four main steps:
1- Identifying and developing brand plans
2- Designing and implementing brand marketing program
3- Measuring and interpreting brand performance
4- Growing and sustaining brand equity
Identifying and developing brand plans
It clears understanding of what the brand is to represent and how it should be
positioned with respect to competitors.
 Brand Positioning Model: Describes how to guide integrated marketing to
maximize competitive advantages.
 Brand Resonance Model: Describes how to create intense, activity loyalty
relationships with customers.
 Brand Value Chain: Means to trace the value creation process for brands,
to better understand the financial impact of brand marketing expenditures and
investments.
Brand Positioning delivers:
 Mental maps
 Competitive frame of reference
 Points-of-parity and points-of difference
 Core brand associations
 Brand mantra
Positioning requires defining our desired or ideal brand knowledge
structures and establishing points-of-parity and points-of-difference to establish
the right brand identity and brand image.
Positioning Model answers to these questions:
• Who the target consumer is?
• Who the main competitors are?
• How the brand is similar to these competitors?
• How the brand is different from them?
Brand Resonance
 Ensure identification of the brand with customers and an association of the
brand in customers’ minds with a specific product class, product benefit, or
customer need.
 Firmly establish the totality of brand meaning in the minds of customers by
strategically linking a host of tangible and intangible brand associations.
 Elicit the proper customer responses to the brand.
 Convert brand responses to create brand resonance and an intense, active
loyalty relationship between customers and the brand.
 Those four steps represent a set of fundamental questions that
customers invariably ask about brands—at least implicitly. The four
questions (with corresponding brand steps in parentheses) are:
 Who are you? (brand identity)
 What are you? (brand meaning)
 What about you? What do I think or feel about you? (brand responses)
 What about you and me? What kind of association and how much of a
connection would I like to have with you? (brand relationships)
The Brand Value Chain
 Stage 1: The brand value creation process begins when the firm invests in a
marketing program targeting actual or potential customers.
 Stage 2: The associated marketing activity then affects the customer mind-
set—what customers know and feel about the brand—as reflected by the
brand resonance model
 Stage 3: This mind-set, across a broad group of customers, produces the
brand’s performance in the marketplace—how much and when customers
purchase, the price that they pay, and so forth
 Stage 4: Finally, the investment community considers this market to arrive at
an assessment of shareholder value in general and a value of the brand in
particular
Brand Value Chain
Brand elements:
 sometimes called brand identities, are those trademarkable devices that serve to
identify and differentiate the brand. The main ones are brand names, URLs,
logos, symbols, characters, spokespeople, slogans, jingles, packages, and
signage.
Criteria for Choosing Brand Elements:
 1. Memorable
 Easily recognized
 Easily recalled
 2. Meaningful
 Descriptive
 Persuasive
 3. Likable
 Fun and interesting
 Rich visual and verbal imagery
 Aesthetically pleasing
 4. Transferable
 Within and across product categories
 Across geographic boundaries and cultures
 5. Adaptable
 Flexible
 Updatable
 6. Protectable
 Legally
 Competitively
Designing and implementing brand
marketing program
 positioning the brand in the minds of customers and achieving as much brand
resonance as possible.
 Brand-building product, pricing, channel, and communication strategies must
be put into place.
“The challenge for marketers in building a strong brand
is ensuring that customers have the right type of
experiences with products and services and their
accompanying marketing programs so that the desired
thoughts, feelings, images, beliefs, perceptions,
opinions, and so on become linked to the brand.”
Kevin Lane Keller
Branding is built over time by the company supporting its brand
strategy and in everything it does. Therefore all employees must work
as ambassadors of the brand and be consistent in how they present
the brand, Aaker.
Thank You

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Customer based brand equity model

  • 1. Customer-Based Brand Equity Model Soroush Mosavati V 1,2 - Jan, 2015
  • 2. A brand comes to embody a promise about the goods it identifies, a promise about quality, performance, or other dimensions of value, which can influence consumers' choices among competing products.
  • 3. Brand can convey six level of meaning (Kotler):  Attribute: durable, prestigious, well engineered, and expensive  Benefits: functional, emotional and self expressive  Values: high performance, safety  Culture: German culture, organized, efficient, high quality  Personality: austere, aggressive, no-nonsense person
  • 4. Quality of experience  Experience economy is a new kind of emerging economy in which increasing numbers of industrial practitioners find out the importance of capitalizing on the customer experience (Xu & Chan, 2010).  Competitive environment delivers quality of experience rather than quality of service (Klaus & Maklan, 2007).
  • 5. There is a relationship between quality of experience and overall brand equity.
  • 6. Brand Equity  Brand equity refers to the marketing effects or outcomes that accrue to a product with its brand name. Consumers believe that a product with a well- known name is better than products with less well known names. The value of brand equity is the “expected future revenue”.
  • 7. Benefits of Brand Equity:  Enabling buying decisions  Builds Customer Loyalty  Builds Market Share  Protect Market Share  Helps Command Higher Price  Create a Halo Effect  Assists Product, Service and Business Expansion
  • 8. Brand experience is also lead to positive brand equity  Brand awareness: Consumers are aware of the brand.  Brand recognition: Consumers recognize the brand and know what it offers versus competitors.  Brand trial: Consumers have tried the brand.  Brand preference: Consumers like the brand and become repeat purchasers. They begin to develop emotional connections to the brand.  Brand loyalty: Consumers demand the brand and will travel distances to find it. As loyalty increases so do emotional connections until there is no adequate substitute for the brand in the consumer’s mind.  Brand Maintenance: Sustain that loyalty and positive brand equity for years to come.
  • 9. building brand equity with keller’s Customer-Based Brand Equity model Keller’s CBBE model is marketing focus The basic premise of the CBBE concept is that the power of a brand lies in what customers have learned, felt, seen, and heard about the brand as a result of their experiences over time.
  • 10. Strategic Brand Management SBM involves the design and implementation of marketing programs and activities to build, measure, and manage brand equity. Strategic brand management process has four main steps: 1- Identifying and developing brand plans 2- Designing and implementing brand marketing program 3- Measuring and interpreting brand performance 4- Growing and sustaining brand equity
  • 11. Identifying and developing brand plans It clears understanding of what the brand is to represent and how it should be positioned with respect to competitors.  Brand Positioning Model: Describes how to guide integrated marketing to maximize competitive advantages.  Brand Resonance Model: Describes how to create intense, activity loyalty relationships with customers.  Brand Value Chain: Means to trace the value creation process for brands, to better understand the financial impact of brand marketing expenditures and investments.
  • 12. Brand Positioning delivers:  Mental maps  Competitive frame of reference  Points-of-parity and points-of difference  Core brand associations  Brand mantra Positioning requires defining our desired or ideal brand knowledge structures and establishing points-of-parity and points-of-difference to establish the right brand identity and brand image. Positioning Model answers to these questions: • Who the target consumer is? • Who the main competitors are? • How the brand is similar to these competitors? • How the brand is different from them?
  • 13. Brand Resonance  Ensure identification of the brand with customers and an association of the brand in customers’ minds with a specific product class, product benefit, or customer need.  Firmly establish the totality of brand meaning in the minds of customers by strategically linking a host of tangible and intangible brand associations.  Elicit the proper customer responses to the brand.  Convert brand responses to create brand resonance and an intense, active loyalty relationship between customers and the brand.
  • 14.  Those four steps represent a set of fundamental questions that customers invariably ask about brands—at least implicitly. The four questions (with corresponding brand steps in parentheses) are:  Who are you? (brand identity)  What are you? (brand meaning)  What about you? What do I think or feel about you? (brand responses)  What about you and me? What kind of association and how much of a connection would I like to have with you? (brand relationships)
  • 15.
  • 16. The Brand Value Chain  Stage 1: The brand value creation process begins when the firm invests in a marketing program targeting actual or potential customers.  Stage 2: The associated marketing activity then affects the customer mind- set—what customers know and feel about the brand—as reflected by the brand resonance model  Stage 3: This mind-set, across a broad group of customers, produces the brand’s performance in the marketplace—how much and when customers purchase, the price that they pay, and so forth  Stage 4: Finally, the investment community considers this market to arrive at an assessment of shareholder value in general and a value of the brand in particular
  • 18. Brand elements:  sometimes called brand identities, are those trademarkable devices that serve to identify and differentiate the brand. The main ones are brand names, URLs, logos, symbols, characters, spokespeople, slogans, jingles, packages, and signage. Criteria for Choosing Brand Elements:  1. Memorable  Easily recognized  Easily recalled  2. Meaningful  Descriptive  Persuasive  3. Likable  Fun and interesting  Rich visual and verbal imagery  Aesthetically pleasing  4. Transferable  Within and across product categories  Across geographic boundaries and cultures  5. Adaptable  Flexible  Updatable  6. Protectable  Legally  Competitively
  • 19.
  • 20. Designing and implementing brand marketing program  positioning the brand in the minds of customers and achieving as much brand resonance as possible.  Brand-building product, pricing, channel, and communication strategies must be put into place.
  • 21.
  • 22.
  • 23. “The challenge for marketers in building a strong brand is ensuring that customers have the right type of experiences with products and services and their accompanying marketing programs so that the desired thoughts, feelings, images, beliefs, perceptions, opinions, and so on become linked to the brand.” Kevin Lane Keller
  • 24. Branding is built over time by the company supporting its brand strategy and in everything it does. Therefore all employees must work as ambassadors of the brand and be consistent in how they present the brand, Aaker.

Editor's Notes

  1. Emody: repreent
  2. Austere: simple and harsh
  3. Accrue: to increase in value or amount gradually as time passes
  4. Premise: a statement or idea that is accepted as being true Two questions often arise in brand marketing: What makes a brand strong? and How do you build a strong brand? To help answer both, we introduce the concept of customer-based brand equity (CBBE). What do different brands mean to consumers? and How does the brand knowledge of consumers affect their response to marketing activity? The CBBE concept approaches brand equity from the perspective of the consumer— whether the consumer is an individual or an organization or an existing or prospective customer. A brand has positive customer-based brand equity when consumers react more favorably to a product and the way it is marketed when the brand is identified than when it is not. A brand has negative customer-based brand equity if consumers react less favorably to marketing activity for the brand compared with an unnamed or fictitiously named version of the product.
  5. ROMI Return On Marketing Investment ROMA Return On Marketing Assets
  6. Points-of-Difference Associations. Points-of-difference (PODs) are formally defined as attributes or benefits that consumers strongly associate with a brand, positively evaluate, and believe that they could not find to the same extent with a competitive brand.39 Although myriad different types of brand associations are possible, we can classify candidates as either functional, performance-related considerations or as abstract, imagery-related considerations. Points-of-Parity Associations. Points-of-parity associations (POPs), on the other hand, are not necessarily unique to the brand but may in fact be shared with other brands. There are three types: category, competitive, and correlational. Category points-of-parity represent necessary—but not necessarily sufficient—conditions for brand choice. They exist minimally at the generic product level and are most likely at the expected product level. Thus, consumers might not consider a bank truly a “bank” unless it offered a range of checking and savings plans; provided safety deposit boxes, traveler’s checks, and other such services; and had convenient hours and automated teller machines. Category POPs may change over time because of technological advances, legal developments, and consumer trends, but these attributes and benefits are like “greens fees” to play the marketing game. Competitive points-of-parity are those associations designed to negate competitors’ pointsof- difference. In other words, if a brand can “break even” in those areas where its competitors are trying to find an advantage and can achieve its own advantages in some other areas, the brand should be in a strong—and perhaps unbeatable—competitive position. Correlational points-of-parity are those potentially negative associations that arise from the existence of other, more positive associations for the brand. One challenge for marketers is that many of the attributes or benefits that make up their POPs or PODs are inversely related. In other words, in the minds of consumers, if your brand is good at one thing, it can’t be seen as also good on something else. For example, consumers might find it hard to believe a brand is “inexpensive” and at the same time “of the highest quality.” Figure 2-6 displays some other examples of negatively correlated attributes and benefits. The brand does not have to be seen as literally equal to competitors, but consumers must feel that it does sufficiently well on that particular attribute or benefit so that they do not consider it to be a negative or a problem.
  7. Salience: highlight
  8. To better understand the ROI of marketing investments, however, another tool is necessary. 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.44 It recognizes that many different people within an organization can affect brand equity and need to be aware of relevant branding effects. The brand value chain thus provides insights to support brand managers, chief marketing officers, managing directors, and chief executive officers, all of whom may need different types of information. The brand value chain has
  9. Elasticity: adoptable