Unit 2 and 3 Brand Equity and BP

Brand EquityUnits 2 and 3 : 

Brand EquityUnits 2 and 3 Dr. Shahaida P

Customer-Based Brand Equity : 

1.2 Customer-Based Brand Equity “The differential effect that brand knowledge has on consumer response to the marketing of that brand.” Keller, 1993

Customer-Based Brand Equity : 

1.3 Differential effect 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 Customer-Based Brand Equity

Sources of brand equity : 

1.4 Sources of brand equity Brand awareness Brand recognition Brand recall Brand image Strong, favorable, and unique brand associations

Aaker’s definition of brand equity : 

1.5 Aaker’s definition of brand equity Brand equity Brand awareness Perceived quality Brand associations Brand loyalty Brand equity is defined as the brand assets (or liabilities) linked to a brand’s name and symbol that add to (or subtract from) a product or service

The Four Steps of Brand Building : 

1.6 The Four Steps of 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

Four Questions Customers ask of Brands : 

1.7 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)

Slide 8: 

1.8

Slide 9: 

1.9

Unit 3http://www.scribd.com/doc/31711644/Brand-Building-Model : 

Unit 3http://www.scribd.com/doc/31711644/Brand-Building-Model Brand Positioning

Brand positioning : 

1.11 Brand positioning “. . . the act of designing the company’s offer and image so that it occupies a distinct and valued place in the target customer’s minds.” Philip Kotler

Determining a frame of reference : 

1.12 Determining a frame of reference What are the ideal points-of-parity and points-of-difference brand associations vis-à-vis the competition? Marketers need to know: Who the target consumer is Who the main competitors are How the brand is similar to these competitors How the brand is different from them

Target Market : 

3.13 Target Market A market is the set of all actual and potential buyers who have sufficient interest in, income for, and access to a product. Market segmentation divides the market into distinct groups of homogeneous consumers who have similar needs and consumer behavior, and who thus require similar marketing mixes. Market segmentation requires making tradeoffs between costs and benefits.

Example of the toothpaste market : 

1.14 Example of the toothpaste market Four main segments: Sensory: Seeking flavor and product appearance Sociables: Seeking brightness of teeth Worriers: Seeking decay prevention Independent: Seeking low price

Points-of-Parity and Points-of-Difference : 

1.15 Points-of-Parity and Points-of-Difference Points-of-difference (PODs) are attributes or benefits that consumers strongly associate with a brand, positively evaluate, and believe that they could not find to the same extent with a competitive brand. Points-of-parity associations (POPs), on the other hand, are not necessarily unique to the brand but may in fact be shared with other brands.

Defining and Communicating the Competitive Frame of Reference : 

1.16 Defining and Communicating the Competitive Frame of Reference Defining a competitive frame of reference for a brand positioning is to determine category membership. The preferred approach to positioning is to inform consumers of a brand’s membership before stating its point of difference in relationship to other category members.

Choosing POP’s & POD’s : 

1.17 Choosing POP’s & POD’s Desirability criteria (consumer perspective) Personally relevant Distinctive and superior Believable and credible Deliverability criteria (firm perspective) Feasible Profitable Pre-emptive, defensible, and difficult to attack

Attribute and Benefit Trade-offs : 

3.18 Attribute and Benefit Trade-offs Price and quality Convenience and quality Taste and low calories Efficacy and mildness Power and safety Ubiquity and prestige Comprehensiveness (variety) and simplicity Strength and refinement

Strategies to Reconcile Attribute and Benefit Trade-offs : 

3.19 Strategies to Reconcile Attribute and Benefit Trade-offs Establish separate marketing programs Leverage secondary association (e.g., co-brand) Re-define the relationship from negative to positive

Core Brand Values : 

3.20 Core Brand Values Set of abstract concepts or phrases that characterize the five to ten most important dimensions of the mental map of a brand Relate to points-of-parity and points-of-difference Mental map  Core brand values  Brand mantra

Brand Mantras : 

3.21 Brand Mantras An articulation of the “heart and soul” of the brand similar to “brand essence” or “core brand promise” Short three- to five-word phrases that capture the irrefutable essence or spirit of the brand positioning and brand values Considerations Communicate Simplify Inspire

Designing the Brand Mantra : 

3.22 Designing the Brand Mantra The term brand functions describes the nature of the product or service or the type of experiences or benefits the brand provides. The descriptive modifier further clarifies its nature. The emotional modifier provides another qualifier—how exactly does the brand provide benefits, and in what way?

Designing the Brand Mantra : 

3.23 Designing the Brand Mantra

Internal Branding : 

3.24 Internal Branding Members of the organization are properly aligned with the brand and what it represents. Crucial for service companies

Brand Audit : 

3.25 Brand Audit Externally, consumer-focused assessment A comprehensive examination of a brand involving activities to assess the health of the brand, uncover its sources of equity, and suggest ways to improve and leverage that equity It includes brand vision, mission, promise, values, position, personality, and performance

Importance of Brand Audits : 

3.26 Importance of Brand Audits Understand sources of brand equity Firm perspective Consumer perspective Set strategic direction for the brand Recommend marketing programs to maximize long-term brand equity

Brand Audit Steps : 

3.27 Brand Audit Steps Brand inventory (supply side) Brand exploratory (demand side)

Brand Inventory : 

3.28 Brand Inventory A current comprehensive profile of how all the products and services sold by a company are branded and marketed: Brand elements Supporting marketing programs Profile of competitive brands POPs and PODs Brand mantra

Brand Inventory (Cont.) : 

3.29 Brand Inventory (Cont.) Suggests the bases for positioning the brand Offers insights to how brand equity may be better managed Assesses consistency in message among activities, brand extensions, and sub-brands in order to avoid redundancies, overlaps, and consumer confusion

Brand Exploratory : 

3.30 Brand Exploratory Provides detailed information as to how consumers perceive the brand: Awareness Favorability Uniqueness of associations Helps identify sources of customer-based brand equity Uncovers knowledge structures for the core brand as well as its competitors

Suggested Brand Audit Outline : 

3.31 Suggested Brand Audit Outline Brand audit objectives, scope, and approach Background about the brand (self-analysis) Background about the industries Consumer analysis (trends, motivation, perceptions, needs, segmentation, behavior) Brand inventory Elements, current marketing programs, POPs, PODs Branding strategies (extensions, sub-brands, etc.) Brand portfolio analysis Competitors’ brand inventory Strengths and weaknesses

Brand Audit Outline (Cont.) : 

3.32 Brand Audit Outline (Cont.) Brand exploratory Brand associations Brand positioning analysis Consumer perceptions analysis (vs. competition) Summary of competitor analysis SWOT analysis Brand equity evaluation Strategic brand management recommendations