Brand Equity


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Brand Equity

  1. 1. Brand Equity
  2. 2. Definitions <ul><li>Measurable financial value that accrues to a product/service from successful programs & activities – Walker & Yankelovich </li></ul><ul><li>A set of brands assets & liabilities linked to the brand’s name, symbol that add or subtract from the value it provides – David Aaker </li></ul>
  3. 3. Definitions <ul><li>The differential effect of </li></ul><ul><li>brand knowledge on consumer response to the marketing of the brand </li></ul>
  4. 4. Brand Equity- Advantages <ul><li>Brand equity as a bridge </li></ul><ul><li>Reflection of the Past </li></ul><ul><li>Direction for the future </li></ul><ul><li>Focus and Guidance </li></ul>
  5. 5. Sources of Brand Equity <ul><li>Brand Awareness- recognition & recall </li></ul><ul><li>Learning advantages </li></ul><ul><li>Brands become part of the consideration set </li></ul><ul><li>Affects Choices of consumers </li></ul>
  6. 6. Sources of Brand Equity <ul><li>Brand Image & Association- link strong favorable unique associations to the brand </li></ul><ul><li>Strength of brand association- attributes (descriptive features of product) & benefits (personal value & meaning attached to product) </li></ul><ul><li>Favorability – relevant, distinct, belief </li></ul><ul><li>Uniqueness – points of parity & points of difference </li></ul>
  7. 7. Consumer Based Brand Equity <ul><li>CBBE – differential effect that brand knowledge has on the consumers response to the marketing of that brand. </li></ul><ul><li>3 key elements </li></ul><ul><li>Differential effect </li></ul><ul><li>Brand knowledge </li></ul><ul><li>Consumer response to marketing </li></ul><ul><li>Power of the brand lies in the mind of the consumers. </li></ul>
  8. 8. CBBE Pyramid Brand Salience Consumer- Brand Resonance Consumer Judgment Consumer Feelings Brand Performance Brand Imagery 4 Bond – Strong relationship 1 Broad Awareness 2 Differentiators 3 Emotional and Intellectual influence
  9. 9. Sub-dimensions of brand building blocks Salience Resonance Judgments Feelings Performance Imagery Loyalty Attachment Community Engagement Quality Credibility Consideration Superiority Warmth, Fun Excitement, Security, Social Approval, Self-Respect 4 Brand Relationships (WHAT About You AND ME?) 1 Brand Identity (WHO Are You?) 2 Brand Meaning (WHAT Are You?) 3 Brand Response (WHAT About You?) User Profiles Purchase and Usage Situations Personality & Values History, Heritage, & Experiences Brand Characteristics & Secondary Features Product Reliability, Durability & Serviceability Service Effectiveness, Efficiency, & Empathy Style and Design; Price Category Identification Needs Satisfied
  10. 10. 4 Steps to Brand building <ul><li>Identify the brand with customers based on need or product class </li></ul><ul><li>Brand Meaning in the minds of customers by linking tangible &intangible to the brand </li></ul><ul><li>Response </li></ul><ul><li>Relationship </li></ul>
  11. 11. Brand Pyramid <ul><li>Identity </li></ul><ul><li>Salience - </li></ul><ul><li>Category Identification </li></ul><ul><li>Need Satisfaction </li></ul>
  12. 12. Brand Pyramid <ul><li>Meaning </li></ul><ul><li>Performance – </li></ul><ul><li>Product Reliability, durability, serviceability </li></ul><ul><li>Service effectiveness, efficiently, empathy </li></ul><ul><li>Style & design </li></ul><ul><li>Price </li></ul>
  13. 13. Brand Pyramid <ul><li>Meaning </li></ul><ul><li>Imagery- </li></ul><ul><li>User profiles </li></ul><ul><li>Usage situations </li></ul><ul><li>Personality & Values </li></ul><ul><li>History & experiences </li></ul>
  14. 14. Brand Pyramid <ul><li>3. Response </li></ul><ul><li>Judgments- </li></ul><ul><li>Quality </li></ul><ul><li>Credibility </li></ul><ul><li>Consideration </li></ul><ul><li>Superiority </li></ul><ul><li>Feelings- </li></ul><ul><li>Warmth </li></ul><ul><li>Fun </li></ul><ul><li>Excitement </li></ul><ul><li>Security </li></ul><ul><li>Self Respect </li></ul><ul><li>Social Approval </li></ul>
  15. 15. Brand Pyramid <ul><li>4. Relationships </li></ul><ul><li>Resonance- </li></ul><ul><li>Loyalty </li></ul><ul><li>Attachment </li></ul><ul><li>Community- Apple, Harley Davidson </li></ul><ul><li>Engagement – clubs-Gang of Girls, MTV, WOM by customers themselves </li></ul>
  16. 16. Building Customer-Based Brand Equity <ul><li>Brand building tools and objectives </li></ul>2. Consumer knowledge effects 3. Branding Benefits
  17. 17. 1. Brand building tools and objectives <ul><li>Choose Brand Elements </li></ul><ul><li>Brand name </li></ul><ul><li>Logo </li></ul><ul><li>Symbol </li></ul><ul><li>Character </li></ul><ul><li>Packaging </li></ul><ul><li>Slogan </li></ul><ul><ul><li>Memorability </li></ul></ul><ul><ul><li>Meaningfulness </li></ul></ul><ul><ul><li>Likability </li></ul></ul><ul><ul><li>Transferability </li></ul></ul><ul><ul><li>Adaptability </li></ul></ul><ul><ul><li>Protectability </li></ul></ul>
  18. 18. Brand building tools and objectives <ul><li>Developing Marketing Programs </li></ul>Product Price Distribution Channels Communications <ul><ul><li>Tangible and intangible </li></ul></ul><ul><ul><li>benefits </li></ul></ul><ul><ul><li>Value Perceptions </li></ul></ul><ul><ul><li>Integrate “Push” & “ Pull” </li></ul></ul><ul><ul><li>Mix and match options </li></ul></ul>Ref: Strategic Brand Mgmt. – Kevin Kelly
  19. 19. Brand building tools and objectives <ul><li>Leverage on secondary associations </li></ul>Company Country of origin Channels of Dist. Other Brands Endorse or Event <ul><ul><li>Awareness </li></ul></ul><ul><ul><li>Meaningfulness </li></ul></ul><ul><ul><li>Transferability </li></ul></ul>
  20. 20. Consumer Knowledge Effects <ul><li>Brand Awareness </li></ul><ul><ul><li>Depth </li></ul></ul><ul><ul><ul><li>Recall </li></ul></ul></ul><ul><ul><ul><li>Recognition </li></ul></ul></ul><ul><ul><li>Breadth </li></ul></ul><ul><ul><ul><li>Purchase </li></ul></ul></ul><ul><ul><ul><li>Consumption </li></ul></ul></ul><ul><li>Brand Associations </li></ul><ul><ul><li>Strong </li></ul></ul><ul><ul><ul><li>Relevance </li></ul></ul></ul><ul><ul><ul><li>Consistence </li></ul></ul></ul><ul><ul><li>Favorable </li></ul></ul><ul><ul><ul><li>Desirable </li></ul></ul></ul><ul><ul><ul><li>Deliverable </li></ul></ul></ul><ul><ul><li>Unique </li></ul></ul><ul><ul><ul><li>Points of parity </li></ul></ul></ul><ul><ul><ul><li>Points of difference </li></ul></ul></ul>
  21. 21. Possible outcomes <ul><li>Greater Loyalty </li></ul><ul><li>Less vulnerability to competitive marketing actions and crises </li></ul><ul><li>Larger Margins </li></ul><ul><li>More elastic response to price decreases </li></ul><ul><li>More inelastic response to price increases </li></ul><ul><li>Greater trade cooperation and support </li></ul><ul><li>Increased marketing communication efficiency and effectiveness </li></ul><ul><li>Possible Licensing opportunities </li></ul><ul><li>More favorable brand extension evaluations </li></ul>
  22. 22. Managing Customer Brand Equity <ul><li>Define Brand hierarchy </li></ul><ul><li>Define Brand- Product mix </li></ul><ul><li>Enhance Brand Equity over time </li></ul><ul><li>Establish B.E. over market segments </li></ul>
  23. 23. Managing Customer Brand Equity <ul><li>Define Brand hierarchy </li></ul><ul><ul><li>Principle of Simplicity </li></ul></ul><ul><ul><li>Principle of relevance </li></ul></ul><ul><ul><li>Principle of differentiation </li></ul></ul><ul><ul><li>Principle of prominence </li></ul></ul><ul><ul><li>Principle of commonality </li></ul></ul>
  24. 24. Managing Customer Brand Equity <ul><li>Define Brand- Product mix </li></ul><ul><ul><li>Brand extensions </li></ul></ul><ul><ul><li>Brand Portfolio </li></ul></ul>
  25. 25. Managing Customer Brand Equity <ul><li>Enhance Brand Equity over time </li></ul><ul><ul><li>Brand Reinforcements </li></ul></ul><ul><ul><li>Brand revitalization </li></ul></ul>
  26. 26. Managing Customer Brand Equity <ul><li>Establish B.E. over market segments </li></ul><ul><ul><li>Identify differences in consumer behavior </li></ul></ul><ul><ul><li>Adjust Branding program </li></ul></ul>