Brand Equity Research: Brand Equity Research Scott Smith Brigham Young University


Marketing Changes…: Marketing Changes… 1920’s $.50 /hr avg. wage Output doubled, but consumers had inadequate income to buy. 1930’s - 40’s $.66/hr avg. wage... production made products cheaper so consumers could buy. 1940’s customer was the retailer or wholesaler Sales Late 1940’s pent up demand, shortage, made old product better, Chemicals, electronic advances 1960’s Customer Orientation 1970’s Competitor Orientation 1980’s Strategic Marketing Orientation 1990’s Streamlining, Optimizing Market Offerings 2000’s Global markets, Low Price, High Tech, Off Shore Production Marketing is a set of activities designed to satisfy the needs and wants of a market (the customer) through an exchange process.


Slide3: Types of Research Studies by Stage of Product Life Cycle Preintroduction Introduction Growth Mature Decline Product Satisfaction Name/package Product positioning Advertising copy Market response Store Audits: Sales/share Product stocking, out-of-stock, In-store Promotion, Prices Tracking: Awareness, Trial, Repeat buying Product Performance Sales Forecasting Product Positioning New users New product uses Line extensions Competitors’ activities Product availability Price elasticity Cost reductions


Product and Brand Associations: Product and Brand Associations Name and Symbol Product Attributes Intangibles Customer Benefits Relative Price Use / Application User / Customer Celebrity / Person Life Style / Personality Product Class Competitors Country / Geographic Area


Brand Associations: Brand Associations


Slide6: Top Management Quality Plan Quality as perceived by Personnel Quality as desired by Customer Quality as perceived by Customer ACTUAL QUALITY RESULT Involvement Gap Planning Gap Perception Gap Realization Gap Value Gap Point of View Gap Compliance Gap Comprehension Gap


Identifying Your Market Strategy: Identifying Your Market Strategy How to Segment the Market Define the Markets for the Product Identify Scope and Dimensions of each Market: Size, Profitability Expected Segment Growth Requirements for success in each market Market standing with established customers in each segment: Share, Pattern of repeat business, Expansion of customer’s product use, Reputation Benefits that customers in each segment derive from the product: Economics, Better Performance, Cost Reasons for buying the product by segment: Features, Awareness, Price, Advertising, Promotion, Packaging, Display, Sales Assistance Customer Attitudes by Segment: Brand Awareness, Brand Image Mapping Purchase and Use Habits Product’s Life Cycle Position


AVERAGE SUBJECT CONFIGURATION & VECTORS: -1.6 -1.2 -0.8 -0.4 0 0.4 0.8 1.2 1.6 LUXURIOUSNESS SPORTINESS CORR. WITH SEMANTIC DIFFERENTIAL SCALES 1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 -0.1 -0.2 -0.3 -0.4 -0.5 -0.6 -0.7 -0.8 MUSTANG LINCOLN 300 ZX PORSCHE JAGUAR MERCEDES CADILLAC ESCORT CHEVETTE RENAULT SOPHISTICATED STRONG UNCONVENTIONAL BOLD COMPLEX SPORTY FRESH SWIFT ELEGANT RELIABLE MASCULINE CORVETTE EXCITING AVERAGE SUBJECT CONFIGURATION & VECTORS


PRODUCT QUALITYDimensions of Excellence: PRODUCT QUALITY Dimensions of Excellence 1. Performance. How well does a drug cure an ailment, or a piece of diagnostic equipment diagnose? A physician operate? 2. Durability. How long will the lawn mower last...any corollaries in the health care area? Treatments? 3. Conformance with Specifications. What are the inside dimensions? Corollaries with health care area? Standard procedures? 4. Features. Does the airline flight offer movies? How Many? MD11 business class (6 movies x 4) Amenities in hotel or hospital...do they differ for each area of the hospital...pediatrics Vs. medical/surgical unit. 5. The Name. Is it a name that means quality? Cars/Planes/Leather/Jewelry? 6. Reliability. Will each visit result in the same satisfaction. 7. Serviceability. Is the service system efficient, competent, convenient? 8. Fit and Finish. Does the product look and feel like a quality product?


Achieving a Sustainable Competitive Advantage: Achieving a Sustainable Competitive Advantage Achieve differentiation in the product delivery attributes: Price, Quality, Aesthetics, Functionality, Availability, Consumer Awareness, Visibility, Service Achieve differentiation on the key buying attributes: 1, 2, or 3 attributes may be critical... Others are marginal Quality Product and Service Name Recognition Achieve breadth of attraction and depth of preference Achieve Capability Gap Business Systems Gap Positioning Gaps: Reputation, Consumer Awareness, Capability Regulatory / Legal Gap Organizational / Managerial Gap