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Customer-based Brand Equity
The document discusses customer-based brand equity and the key drivers that build brand equity. It explains that brand equity is measured by the total value of a brand and is determined by the differential effect brand knowledge has on consumer response. There are four levels in the customer-based brand equity pyramid - identity, meaning, response, and resonance. Building brand equity requires establishing brand identification, developing brand positioning and meaning, eliciting proper customer responses, and converting responses into customer loyalty.
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Customer-based Brand Equity
- 1. CHAPTER 2: CUSTOMER-BASED BRANDEQUITY Becamex Business School Eastern International University Presented by: Phong Nguyen 2016
- 2. TOC 1. What isbrand equity? 2. Key drivers of brand equity 3. Brand building principle 4. Summary
- 3. 1. WHAT ISBRAND EQUITY?
- 4. Brand equity Brand Equity:a measure of the total value of a brand.
- 5.
- 6. Customer-Based Brand Equity “Thedifferential effect that brand knowledge has on consumer response to the marketing of that brand.” Keller, 1993 2.6
- 7. Customer-Based Brand Equity 2.7 “Thedifferential effect that brand knowledge has on consumer response to the marketing of that brand.”
- 8. Customer-Based Brand Equity Differentialeffect Differences in consumer response Brand knowledge A result of consumers’ knowledge about the brand Consumer response to marketing Choice of a brand Recall of copy points from an ad Response to a sales promotion Evaluations of a proposed brand extension 2.8
- 9. Brand Equity asa “Bridge” Reflection of past investments in the marketing of a brand Direction for future marketing actions or programs 2.9
- 10. Making a BrandStrong: Brand Knowledge Brand knowledge is the key to creating brand equity. Brand knowledge consists of a brand node in memory with a variety of associations linked to it. Brand knowledge has two components: brand awareness and brand image. 2.10
- 11. A reputable shampoobrand Iconic masculine blue Premium price Anti dandruff Make me confident and charismatic Masculine, modern, youthful, Sporty, trendy, dynamic International and reputable brand. Charming, charismatic, masculine user image. Effective in anti dandruff What isCLEARMEN? What isitrepresentfor? WhyshouldI chose thisbrand? What benefitscanit bringto me?
- 12. The BRAND The CONSUMER Brandawareness Brand Identity Brand benefit perceptionBrand Imageperception Brand Positioning What is a brand What is itrepresent for? What benefits can it bring to me? Why should I chose this brand?
- 13. Sources of BrandEquity Brand awareness Brand recognition Brand recall Brand image Strong, favorable, and unique brand associations 2.13
- 14. Brand Awareness Advantages Learningadvantages Register the brand in the minds of consumers Consideration advantages Likelihood that the brand will be a member of the consideration set Choice advantages Affect choices among brands in the consideration set 2.14
- 15. Establishing Brand Awareness Increasingthe familiarity of the brand through repeated exposure (for brand recognition) forging strong associations with the appropriate product category or other relevant purchase or consumption cues (for brand recall) 2.15
- 16. Creating a PositiveBrand Image Brand Associations Does not matter which source of brand association Need to be favorable, strong, and unique Marketers should recognize the influence of these other sources of information by both managing them as well as possible and by adequately accounting for them in designing communication strategies. 2.16
- 17. 2. KEY DRIVERSOF BRAND EQUITY
- 18. Four Questions Customersask of Brands 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) 2.18
- 19. 2.19 Customer-Based Brand EquityPyramid RESONANCE SALIENCE JUDGMENTS FEELINGS PERFORMANCE IMAGERY 4. RELATIONSHIPS = What about you and me? 3. RESPONSE = What about you? 2. MEANING = What are you? 1. IDENTITY = Who are you?
- 20. Sub-Dimensions of CBBEPyramid LOYALTY ATTACHMENT COMMUNITY ENGAGEMENT QUALITY CREDIBILITY CONSIDERATION SUPERIORITY WARMTH FUN EXCITEMENT SECURITY SOCIAL APPROVAL SELF-RESPECT CATEGORY IDENTIFICATION NEEDS SATISFIED PRIMARY CHARACTERISTICS & SECONDARY FEATURES PRODUCT RELIABILITY, DURABILITY & SERVICEABILITY SERVICE EFFECTIVENESS, EFFICIENCY & EMPATHY STYLE AND DESIGN PRICE USER PROFILES PURCHASE & USAGE SITUATIONS PERSONALITY & VALUES HISTORY, HERITAGE & EXPERIENCES
- 21. Salience Dimensions Depth ofbrand awareness Ease of recognition and recall Strength and clarity of category membership Breadth of brand awareness Purchase consideration Consumption consideration 2.21
- 22. Depth and BreadthImportance The product category hierarchy shows us not only the depth of awareness matters but also the breadth. The brand must not only be top-of-mind and have sufficient “mind share,” but it must also do so at the right times and places. 2.22
- 23. Product Category Structure Tofully understand brand recall, we need to appreciate product category structure, or how product categories are organized in memory. 2.23
- 24. Performance Dimensions Primary characteristicsand supplementary features Product reliability, durability, and serviceability Service effectiveness, efficiency, and empathy Style and design Price 2.24
- 25. Imagery Dimensions User profiles Demographicand psychographic characteristics Actual or aspirational Group perceptions—popularity Purchase and usage situations Type of channel, specific stores, ease of purchase Time (day, week, month, year, etc.), location, and context of usage Personality and values Sincerity, excitement, competence, sophistication, and roughness History, heritage, and experiences Nostalgia Memories 2.25
- 26. Judgment Dimensions Brand quality •Value • Satisfaction Brand credibility • Expertise • Trustworthiness • Likeability Brand consideration • Relevance Brand superiority • Differentiation 2.26
- 27.
- 28. Resonance Dimensions Behavioral loyalty Frequencyand 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 website, chat rooms 2.28
- 29. Customer-Based Brand EquityModel Consumer- Brand Resonance Brand Salience Consumer Judgments Consumer Feelings Brand Performance Brand Imagery INTENSE, ACTIVE LOYALTY RATIONAL & EMOTIONAL REACTIONS POINTS-OF- PARITY & POINTS-OF- DIFFERENCE DEEP, BROAD BRAND AWARENESS
- 30. Application: Identify the KeyDrivers of Brand Equity 0.17 0.66 0.24 0.65 Performance Imagery Feelings Judgment Resonance 0.58 0.49
- 31.
- 32. The Four Stepsof Brand Building Ensure identification of the brand with customers and an association of the brand in customers’ minds Establish the totality of brand meaning in the minds of consumers Elicit the proper customer responses to the brand identification and brand meaning Convert brand response to create an intense, active loyalty relationship between customers and the brand 2.32
- 33. Establish Brand Identification Establish Brand Positioning DevelopBrand Strategy Communicate brand message Create connection with target customer Define target customer 4 and/or 7 Ps Continue to improve brand relationship with loyal customers and establish connection with new potential customers
- 34. Brand Building Implications Customersown brands. Don’t take shortcuts with brands. Brands should have a duality. Brands should have richness. Brand resonance provides important focus. 2.34
- 35. Creating Customer Value Customer-brandrelationships are the foundation of brand resonance and building a strong brand. The customer-based brand equity model certainly puts that notion front and center. 2.35
- 36. Is a companyconsumer-centric? Is the company looking for ways to take care of you? Does the company know its customers well enough to differentiate between them? Is someone accountable for customers? Is the company managed for shareholder value? Is the company testing new customer offers and learning from the results? 2.36Sources: Larry Selden and Geoffrey Colvin, 2004.
- 37. Customer Relationship Management (CRM) Usesa company’s data systems and applications to track consumer activity and manage customer interactions with the company 2.37
- 38. Relationship of CustomerEquity to Brand Equity Customers drive the success of brands but brands are the necessary touchpoint that firms have to connect with their customers. Customer-based brand equity maintains that brands create value by eliciting differential customer response to marketing activities. The higher price premiums and increased levels of loyalty engendered by brands generate incremental cash flows. 2.40
- 39.
- 40. Brand Equity 1. BrandEquity: a measure of the total value of a brand. 2. There are Four Questions Customers ask of Brands • 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) 2.42
- 41. Brand Building Ensure identificationof the brand with customers and an association of the brand in customers’ minds Establish the totality of brand meaning in the minds of consumers Elicit the proper customer responses to the brand identification and brand meaning Convert brand response to create an intense, active loyalty relationship between customers and the brand 2.43