The document discusses developing a brand equity measurement and management system. It outlines several steps to establish such a system, including conducting brand audits through a brand inventory and brand exploratory to understand consumer perceptions. It also discusses establishing a brand charter, brand equity reports, and defining brand equity responsibilities within the organization. Both qualitative and quantitative research techniques are summarized to measure brand awareness, image, relationships and track performance over time to manage brand equity.
2. • How strong is my brand?
• How do I ensure my marketing activities
create value?
• How can I measure strength of my brand?
3. The New Accountability
• Virtually every marketing dollar spent today must be
justified as both effective and efficient in terms of
– Return on marketing investment (ROMI)
• Increased accountability
– Has forced marketers to address tough challenges
▪ Develop new measurement approaches
4. The New Accountability
• Conducting Brand Audits
• Brand Inventory
• Brand Exploratory
• Brand Positioning and the Supporting Marketing Program
5. Conducting Brand Audits
• Brand audit
– Comprehensive examination of a brand to discover its
sources of brand equity
– Consists of two steps
1. Brand inventory
2. Brand exploratory
6. Conducting Brand Audits
• Marketing audit
– Independent examination of a company’s marketing
environment, objectives, strategies, and activities
▪ Agreement on objectives, scope, and approach
▪ Data collection
▪ Report preparation and presentation
7. Brand Inventory
• First step in the brand audit
• Purpose of the brand inventory
– Provide a current, comprehensive profile of how all
products and services are marketed and branded
• Profiling each product or service requires marketers to
catalogue:
– Visual and written form for each product or service sold
– The inherent product attributes or characteristics of the
brand
– Pricing, communications, and distribution policies
8. Brand Inventory
• A digital inventory of brand assets may provide useful
insights:
1. Outdated brand accounts that have fallen into disuse
2. Overlapping brand assets which can be merged or
deleted
3. Existing brand accounts with information that is either
inaccurate or not up-to-date
4. Particular digital and social media channels where the
brand does not have a presence
The outcome of the brand inventory should be an
accurate, comprehensive, and up-to-date profile of which
brand elements are employed and how, and the nature of
the supporting marketing program
9. Brand Exploratory
• Second step of the brand audit
• Provides detailed information about what consumers
actually think of a brand
– Research directed to understanding what consumers:
▪ Think and feel about a brand
▪ Act toward it
– Helps identify sources of brand equity and possible
barriers
10. Brand Exploratory
• Three criteria to judge qualitative research techniques
(according to Levy)
– Direction (is it related to the person or the brand)
– Depth (responses are superficial or in-depth)
– Diversity (way the information relates to information
gathered by other techniques)
11. Summary of Qualitative Techniques
Free association
Adjective ratings and checklists
Confessional interviews
Projective techniques
Photo sorts
Archetypal research
Bubble drawings
Story telling
Personification exercises
Role playing
Metaphor elicitation*
Day/Behavior reconstruction
Photo/Written journal
Participatory design
Consumer-led problem solving
Real-life experimenting
Collaging and drawing
Consumer shadowing
Consumer–product interaction
Video observation
15. Brand Exploratory
• Digital marketing review
– Can provide important input to a brand audit
▪ Could help generate useful insights regarding a
brand’s online presence
17. Brand Positioning and the Supporting
Marketing Program
• Ideal brand positioning aims to achieve congruence
between:
– What customers currently believe about the brand
– What customers will value in the brand
– What the firm is currently saying about the brand
– Where the firm would like to take the brand
19. Designing Brand Tracking Studies
• Brand tracking studies
– Collect information from consumers
▪ On a routine basis
▪ Usually quantitative
– On a number of key dimensions that marketers
can identify in the brand audit
– With brand extensions or additional communication
methods
▪ Becomes difficult and expensive to research
▪ Yet necessary
20. What to Track
• Product-Brand Tracking
– May want to first ask consumers what brands come to
mind
– Next ask for recall of brands
– Then tests of brand recognition
• Corporate or Family Brand Tracking
– May want to track corporation or family brand
separately or concurrently with individual products
• Global Tracking
– May need a broader set of background measure for
global tracking
22. Brand Awareness and Usage
• What brands of coffee chains are you aware of?
• At which coffee house chains would you consider visiting?
• Have you visited a coffeehouse chain in the last one week?
Which ones?
• If you were to visit a coffeehouse tomorrow, which one
would you go?
• What are your favourite coffeehouse chains?
• Have you heard of Starbucks?
• Have you ever visited a Starbucks coffeehouse?
• When it is said Starbucks, what are the first associations that
come to your mind? (List)
23. Brand Judgements
We are interested in overall opinion of Starbucks
• How favourable is your attitude towards Starbucks?
• How well does Starbucks satisfy your needs?
• How likely would you be to recommend Starbucks to others?
• How good a value is Starbucks?
• Is Starbucks worth a premium price?
• What do you like most about Starbucks?
• What do you like least about Starbucks?
• What is the most unique about Starbucks?
• To what extent does Starbucks offer advantages that other similar types
of coffeehouse cannot?
• To what extent does Starbucks superior to other brands in the
coffeehouse category?
• Compared to other brands in the coffeehouse category, how well does
Starbucks satisfy your basic needs?
24. Starbucks is…
• Innovative
• Knowledgeable
• Trustworthy
• Likable
• Concerned about their customer
• Concerned about society as a whole
• Admirable
25. Brand performance
Starbucks…
• Is convenient to visit for coffee
• Provides quick, efficient service
• Has clean facilities
• Is ideal for the whole family
• Has delicious coffee
• Has tasty snacks
• Has a varied menu
• Has friendly, courteous staff
• Offer fun promotions
• Has a stylish and attractive look and design
• Has high quality food
26. Brand Imagery
To what extent do people you admire and respect a visit to Starbucks?
How much do you like people visiting Starbucks?
• How well do each of the following describe Starbucks/
– Down-to-earth
– Honest
– Daring
– Up-to-date
– Reliable
– Successful
– Upper Class
– Charming
– Outdoorsy
• Is Starbucks coffeehouse chain a place that you can visit at a variety of
different times of the day?
• To what extent does thinking of Starbucks bring back pleasant
memories?
• To what extent do you think you grew up with Starbucks?
27. Brand Feeling
Does Starbucks give you a feeling of…
• Warmth?
• Fun?
• Excitement?
• Security or Confidence?
• Social Approval?
• Self-respect?
28. Brand resonance
• I consider myself loyal to Starbucks
• I buy Starbucks whenever I can
• I would go out of my way to visit Starbucks
• I really love Starbucks
• I would really miss Starbucks if it went away
• Starbucks is special to me
• Starbucks is more than a product to me
• I really identify with people who go to Starbucks
• I feel a deep connection with Starbucks as a company
• I really like to talk about Starbucks to others
• I would be interested in the merchandise with the Starbucks name on it
• I am proud to have others know that I eat at Starbucks
• I like to visit Starbucks website
• Compared to other people, I follow news about Starbucks closely
29. Brand Context Measures
Economic Indicators
Gross domestic product
Interest rates
Unemployment
Average wage
Disposable income
Home ownership and housing debt
Exchange rates, share markets, and
balance of payments
Retail
Total spent in supermarkets
Change year to year
Growth in house brand
Technology
Computer at home
DVR (Digital Video Recorders)
Access to and use of Internet
Phones
PDA (Personal Digital Assistant)
Microwaves
Television
Personal Attitudes and Values
Confidence
Security
Family
Environment
Traditional values
Foreigners versus sovereignty
Media Indicators
Media consumption: total time spent
watching TV, consuming other media
Advertising expenditure: total, by
media and by product category
Demographic Profile
Population profile: age, sex, income,
household size
30. Brand Context Measures
Geographic distribution
Ethnic and cultural profile
Other Products and Services
Transport: own car—how many
Best description of car Motorbike
Home ownership or renting
Domestic trips overnight in last year
International trips in last two years
Attitude to Brands and Shopping
Buy on price
Like to buy new things
Country of origin or manufacture
Prefer to buy things that have been
advertised
Importance of familiar brands
31. Big Data and Marketing Analytic
Dashboards
• Troves of data exist
– Can enable continuous tracking of customers
• Marketing analytic dashboard
– Systems and processes within an organization to
communicate important metrics
▪ And make them available throughout an
organization
32. Establishing a Brand Equity
Management System
• Brand Charter or Bible
• Brand Equity Report
• Brand Equity Responsibilities
33. Brand Charter or Bible
• First step in establishing a brand equity management
system
– Formalizes the company view of brand equity into a
document
• Brand charter (or brand bible as sometimes called)
– Provides relevant guidelines to marketing managers
and key marketing partners
– Should be updated annually
34. Brand Equity Report
• Second step in establishing a successful brand equity
management system
– Assemble results of the tracking survey and other relevant
performance measure for the brand
– Create a brand equity report or scorecard
▪ Distribute to management regularly
– Contents
▪ A brand equity report should describe:
– What is happening with the brand?
– Why is it happening?
– Should include more descriptive market-level information
35. Brand Equity Responsibilities
• Third step in establishing a successful brand equity
management system
– Clearly define organization responsibilities and
processes
▪ With respect to the brand
37. Understanding Consumer Behavior
Who buys our product or service?
Who makes the decision to buy the product?
Who influences the decision to buy the product?
How is the purchase decision made? Who assumes what role?
What does the customer buy? What needs must be satisfied?
Why do customers buy a particular brand?
Where do they go or look to buy the product or service?
When do they buy? Any seasonality factors?
What are customers’ attitudes toward our product?
What social factors might influence the purchase decision?
Does the customers’ lifestyle influence their decisions?
How is our product perceived by customers?
How do demographic factors influence the purchase decision?
38. Qualitative Research Techniques
• Free Association
• Projective Techniques
• Zaltman Metaphor Elicitation Technique
• Neural Research Methods
• Brand Personality and Values
• Ethnographic and Experiential Methods
39. Free Association
• Simplest and often most powerful way to profile brand
associations
• Subjects are asked what comes to mind when they think
of a brand
– No more specific probe or cue than perhaps the
associated product category
• Used mainly to identify the range of possible brand
associations in consumers’ minds
• Answers help marketers clarify the range of possible
associations and assemble a brand profile
40. Projective Techniques
• Diagnostic tools to uncover the true opinions and feelings
of consumers when:
– Unwilling or otherwise unable to express themselves
on these matters
• Present consumers with ambiguous stimulus and ask
them to make sense of it
41. Projective Techniques
• Completion and Interpretation Tasks
– Classic projective technique
▪ Use incomplete or ambiguous stimuli to elicit
consumer thoughts and feelings
• Comparison Tasks
– Ask consumers to convey impressions by comparing
brands to:
▪ People, countries, animals, activities, fabrics,
occupations, etc.
42.
43. Zaltman Metaphor Elicitation Technique
• Uncovers hidden consumers’ knowledge
– “a technique for eliciting interconnected constructs that
influence thought and behavior”
▪ construct refers to “an abstraction created by the
researcher to capture common ideas, concepts, or
themes expressed by customers”
44. Zaltman Metaphor Elicitation Technique
• ZMET study starts with a group of participants
– Asked in advance to think about the research topic
▪ Collect a set of images from their own sources that
represent their thoughts and feelings about the
research topic
– Bring images with them for a one-on-one interview
– When interviews are complete
▪ Researchers identify key themes or constructs,
code the data, and assemble a consensus map of
the most important constructs
45. Neural Research Methods
• Neuromarketing
– Study of how the brain responds to marketing stimuli,
including brands
• Research indicates that consumer buying decision is a
unconscious habitual process
• Some firms apply sophisticated techniques:
– EEG (electroencephalogram) technology
– Functional magnetic resonance imaging (fMRI)
46. Brand Personality and Values
• Brand personality
– Human characteristics or traits that consumers can
attribute to a brand
• The big five: factors (with underlying facets) of brand
personality:
– Sincerity
– Excitement
– Competence
– Sophistication
– Ruggedness
48. Ethnographic and Experiential Methods
• Researchers are tapping more directly into consumers’
actual home, work, or shopping behaviors
– This may help elicit more meaningful responses
• Ethnographic researches uses “thick description” based
on participant observation
• Extract and interpret the deep cultural meaning of events
and activities
50. Brand Awareness
• Related to the strength of the brand in memory
– Reflected by consumers’ ability to identify various
brand elements
• Describes the likelihood that a brand will come to mind in
different situations
– Recognition
– Recall
– Corrections for guessing
51. Brand Image
• Associations that consumers hold for a brand
• Useful for marketers to make a distinction between:
– Lower-level considerations (performance and
imagery)
– Higher-level considerations (judgments and feelings)
• Beliefs
– Descriptive thoughts that a person holds about
something
52. Other Approaches
• More complicated quantitative technique to assess overall
brand uniqueness
– Multidimensional scaling (MDS), or perceptual maps
▪ Procedure for determining the perceived relative
images of a set of objects, such as products or
brands
▪ Transforms consumer judgments of similarity or
preference into distances represented in perceptual
space
54. Social Media Listening and Monitoring
• Social media monitoring
– Fast-growing and increasingly specialized area of
marketing research
• Dashboard
– Summary of key statistics associated with a brand
– May include:
▪ Number of engagements of brand messages
across various social media platforms
▪ Sentiment associated with social media messages
▪ Topics that are related to a brand
▪ Lists of keywords that are associated with a brand
56. Brand Relationships
• Characterized in terms of brand resonance and measures
for following key dimensions
– Behavioral loyalty
– Attitudinal attachment
– Sense of community
– Active engagement
57. Brand Relationships
• Behavioral Loyalty
• Attitudinal Attachment
• Sense of Community
• Active Engagement
• Fournier’s Brand Relationship Research
58. Summary of Qualitative and
Quantitative Measure
I. Qualitative Research Techniques
Free association
Adjective ratings and checklists
Projective techniques
Photo sorts
Bubble drawings
Story telling
Personification exercises
Role playing
Experiential methods
II. Quantitative Research Techniques
A. Brand Awareness
Direct and indirect measures of
brand recognition
Aided and unaided measures of
brand recall
B. Brand Image
Open-ended and scale
measures of specific brand
attributes and benefits
Strength
Favorability
Uniqueness
Overall judgments and feelings
Overall relationship measures
Intensity
Activity
60. Brand Equity
• Brand Equity can be calculated on the basis of various
aspects, however, the following are the broad aspects
which were considered for evaluation:
• Behavioral
• Financial
• Perceptual
61. Behavioural Aspects of Brand Equity…
• Overall market of AVRs, Servo VRs, battery chargers and
electrical testing equipment is worth around Rs.3000
crores
• Quantifying the calculated behavioral aspect of brand
equity in monetary terms we use a corrective multiplier of
0.1 to accommodate for the errors of generalization and
comparatively smaller sample size
Brand Equity (behavioral aspect), BE1 =
Overall market size X Weighted Average X Corrective
Multiplier
62. Financial Aspects of Brand Equity
• As per the financial statements of the year 2010-11, the Logicstat
group has following sub companies, whose PAT(profit after tax) is :
• Logic Controls Private Limited (A): Rs. xxxxxxx
• Simatic Systems (B): Rs. xxxxxx
• Superior Technologies (C): Rs. xxxxxx
• Net Profit= A+B+C = Rs. xxxxxxxxxx
• For correlation between the net profit and brand equity, a multiplier of 20
has been formulated that is further normalized for calculation and
projection errors by a normalizing coefficient of 0.55
• Brand Equity (Financial aspect) BE2 =
Profit X brand equity multiplier X normalizing coefficient
63. Perceptual Aspects of Brand Equity
• Related Category Brand Extension
– Batteries; Lead acid, Maintenance free
– Electric Cables
– Meters; Voltmeters, Ammeters etc.
– Relays and Potentiometers
– Capacitors, Connectors
– Power supplies
– Power transformers/ Distribution Sector
– UPS; Inverters, Off line UPS, On line UPS
– Solar PV modules; Lanterns, Jawahar solar mission
– Solar inverters; Off line UPS, On line UPS
– LED systems
64. Perceptual Aspects of Brand Equity..
• Semi-related Brand Extension
– Air conditioners; Window, Standing, Split
– Switches; Rotary, Sockets, MCBs
– Geysers; Storage/Home, Immersion heaters
– Pumps and Motors
– Vacuum Cleaners
– Food Processors, Mixers and Juicers, Hand Blenders
and Atta Makers
– Coffee maker, Electric Cooker, Electric Kettle, Rice
Cooker
– Toasters, Iron
– Room Heaters
– Ovens, OTG, Cooking Range
– Coolers; Air coolers, Water coolers, Dispensers
– Washing Machines; Manual, Semi-automatic,
Automatic
66. Perceptual Aspects of Brand Equity..
• Brand Equity (Related category brand extensions) =
Brand Equity (financial aspect) X Number of related brand
extensions X Normalizing Coefficient X Coefficient of
correlation for related category brand extensions
= xxxxxxxx X 11 X 0.55 X 0.5
(where 0.5 is Coefficient of correlation for related category brand
extensions)
= Rs. xxxxxxxxx
67. Perceptual Aspects of Brand Equity..
• Brand Equity (Semi-related category brand extensions) =
Brand Equity (financial aspect) X Number of Semi-related brand
extensions X Normalizing Coefficient X Coefficient of
correlation for semi- related category brand extensions
= xxxxxx X 12 X 0.55 X 0.2
(where 0.2 is Coefficient of correlation for semi-related category
brand extensions)
= Rs. xxxxxxxx
68. Perceptual Aspects of Brand Equity..
• Brand Equity (Other category brand extensions)
=
Brand Equity (financial aspect) X Number of Other
brand extensions X Normalizing Coefficient X
Coefficient of correlation for Other category brand
extensions
= Rs. xxxxxx X 2 X 0.55 X 0.1
(where 0.1 is Coefficient of correlation for other
category brand extensions)
= Rs. xxxxxx
• Brand Equity (Perceptual aspect) BE3= BEP1 +
BEP2 + BEP3