Module4.pptx

MISSION
CHRIST is a nurturing ground for an individual’s holistic development to
make effective contribution to the society in a dynamic environment
VISION
Excellence and Service
CORE VALUES
Faith in God | Moral Uprightness
Love of Fellow Beings
Social Responsibility | Pursuit of Excellence
Unit 4 :
Measuring & Interpreting Brand Performance

CHRIST
Deemed to be University
The New Accountability (1 of 2)
● 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

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The New Accountability (2 of 2)
● Conducting Brand Audits
● Brand Inventory
● Brand Exploratory
● Brand Positioning and the Supporting Marketing Program

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Conducting Brand Audits (1 of 2)
● Brand audit
○ Comprehensive examination of a brand to discover
its sources of brand equity
○ Consists of two steps
1. Brand inventory
2. Brand exploratory

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Conducting Brand Audits (2 of 2)
● 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

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Brand Inventory (1 of 2)
● 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

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Brand Inventory (2 of 2)
● 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 Outdated brand accounts that have fallen into disuse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

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Brand Exploratory (1 of 3)
● 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

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● Three criteria to judge qualitative research techniques
(according to Levy)
○ Direction
○ Depth
○ Diversity

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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
*ZMET trademark

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Classic MTV Mental Map

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● Digital marketing review
○ Can provide important input to a brand audit
■ Could help generate useful insights regarding a
brand’s online presence
● Offers:

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Sample Mayo Clinic Brand Concept
Map

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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

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John Roberts’s Brand Positioning
Considerations

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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

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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

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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

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Establishing a Brand Equity
Management System
● Brand Charter or Bible
● Brand Equity Report
● Brand Equity Responsibilities

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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

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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

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Brand Equity Responsibilities (1 of 2)
● Third step in establishing a successful brand
equity management system
○ Clearly define organization responsibilities
and processes
■ With respect to the brand

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Brand Equity Responsibilities (2 of 2)
● Overseeing Brand Equity
● Organizational Design and Structures
● Managing Marketing Partners

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Methods of Measuring Brand Equity
● Brand equity consists of two components—brand
strength and brand value—and to understand how
customers evaluate band equity, we need to have an
understanding of both these components
● Brand value or the financial performance
● Brand strength or customer based measures

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Brand value

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Brand value
● Cost-based valuation
● Market-based valuation
● Royalty relief method
● Economic use method

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Cost based valuation
● The value of a brand is calculated on ‘the basis of what it
actually cost to create or what it might theoretically cost to
recreate’ the brand.
● Thus, ‘historical advertising and promotion expenditures,
campaign creation cost, trademark registration cost, etc.’, are
taken into account.
● This, however, does not correctly reflect the current value of
the brand, as the cost of generating a brand does not truly
reflect the income-generating potential of the brand.

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Market-based valuation
● If information regarding ‘market transactions involving
comparable brands is available, it is possible to estimate one
brand’s value by comparing it with another brand.’
● This method is rarely used, as such data is scarce and due to
the fact that each brand is unique and it will be difficult to
compare brands.

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Royalty relief method
● This method is based on the assumption that if the company
did not actually own the brand, but had to license it from a
third party, then what royalty it would pay for using the brand
name.
● This is estimated by calculating the sales likely to occur in the
future and ‘then applying an appropriate rate to arrive at the
income attributable to the brand royalties in the future years.
The notional brand loyalty is then discounted back to a net
present value that is the brand value.’
● This method is widely used in India, as it is favored by the
fiscal and tax authorities and the courts, because the
calculation is based on publicly available marketing and
financial information.

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Economic use method
● This method ‘takes into account the economic value of the
brand to the current owner in its current use.’
● This is the most widely used method and just like the
valuation of shares, it is a ‘cash-flow valuation’.
● This is measured by calculating the increase in gross profit
due to selling a branded product versus selling an unbranded
product.

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Brand strength

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Brand strength
● Customer-based brand equity measures help in
overcoming the limitations of the financial measures as
they help managers evaluate marketing strategies.
● For example, promotional and positioning strategies can
be evaluated by customer-based measures and this
evaluation can help managers build sound long-term
health of their brand.
● The two models that have been widely used to measure
brand equity are:
○ Brand asset valuator model
○ Aaker model

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Brand asset valuator model
Quadrant 2:
Niche / Unrealized
Quadrant 4:
Eroding
Quadrant 3:
Leadership
Quadrant 1: Unfocused /
New
Brand
Strength
(Future
performance)
Low
Low
High
High
D R E K
Brand Stature (Current performance)
D R E K
Declin
ing
D R E K D R E K
D=differentiation
E=esteem
R=relevance
K=knowledge

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In-class exercise
Brand asset valuator - Examples
Quadrant 2:
Niche / Unrealized
Quadrant 4:
Eroding
Quadrant 3:
Leadership
Quadrant 1: Unfocused /
New
Brand
Strength
(Future
performance)
Low
Low
High
High
Brand Stature (Current performance)
Declining

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Aaker Model
Measuring
Brand
Equity
Market Behaviour Measures
Market share
Price and Distribution indices
Loyalty Measures
Price premium
Satisfaction /loyalty
Perceived Quality/
Leadership Measures
Perceived Quality
Leadership
Awareness Measures
Brand Awareness
Associations/
Differentiation Measures
Perceived Value
Brand Personality
Organizational Associations

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Quick Recapitulation
● Need for measuring brand equity
● Methods of measuring brand equity
● Financial measures
● Customer based measures

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Strategic Brand Management:
Building, Measuring, and Managing
Brand Equity

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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?

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Qualitative Research Techniques
● Free Association
● Projective Techniques
● Zaltman Metaphor Elicitation Technique
● Neural Research Methods
● Brand Personality and Values
● Ethnographic and Experiential Methods

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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

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Projective Techniques (1 of 2)
● 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

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Projective Techniques (2 of 2)
● 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.

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Zaltman Metaphor Elicitation Technique (1 of 2)
● 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”

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Zaltman Metaphor Elicitation Technique (2 of 2)
● Z M E T 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

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Application of ZMET to Intimate
Apparel Market

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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:
○ E E G (electroencephalogram) technology
○ Functional magnetic resonance imaging (f M R I)

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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

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Brand Personality Scale Measures

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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

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Quantitative Research Techniques
● Brand Awareness
● Brand Image
● Other Approaches

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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
○ Strategic implications

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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

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Other Approaches
● More complicated quantitative technique to assess overall brand
uniqueness
○ Multidimensional scaling (M D S), 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

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Hypothetical Restaurant Perceptual
Map

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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

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Brand Responses
● Purchase Intentions
● Likelihood to Recommend

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Brand Relationships (1 of 2)
● Characterized in terms of brand resonance and measures for
following key dimensions
○ Behavioral loyalty
○ Attitudinal attachment
○ Sense of community
○ Active engagement

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Brand Relationships (2 of 2)
● Behavioral Loyalty
● Attitudinal Attachment
● Sense of Community
● Active Engagement
● Fournier’s Brand Relationship Research

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Comprehensive Models of Consumer-
Based Brand Equity
● BrandDynamics
○ Bonding
○ Advantage
○ Performance
○ Relevance
○ Presence
● Relationship to the C B B E model
○ Five sequenced stages of Millward Brown’s
BrandDynamics model to the four ascending steps of
the C B B E model

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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

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Four Pillars Assess Brand Health,
Development, and Momentum

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Pillar Patterns Tell a Story
Source: BrandAsset Consulting. Used with permission.

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