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8/3/2019 Brand Equity Session 3-4
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CUSTOMERCUSTOMER--BASED BRAND EQUITYBASED BRAND EQUITY
AN ANSWER TO
WHAT MAKES
A
BRAND
STRONG
HOW
TO
BUILD
STRONG
BRAND
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CUSTOMERCUSTOMER--BASED BRAND EQUITY MODELBASED BRAND EQUITY MODEL
(CBBE MODEL)(CBBE MODEL)
GIVES A UNIQUE WAY OF
WHAT IS BRAND EQUITY
HOW IT SHOULD BE BUILT,MEASURED AND MANAGED
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Customer-Based Brand Equity
WHAT DO DIFFERENT BRANDS
MEANS TO CUSTOMERS
Thedifferential effect that brand
knowledge hason consumerresponseto
themarketingofthat brand
Keller, 1993
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Customer-Based Brand Equity
POWER OF BRAND LIES IN WHAT
CUSTOMERS HAVE
LEARNEDFELT
SEEN
HEARDABOUT A BRAND AS A RESULT OF
THEIR EXPERIENCES OVER TIME
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Customer-Based Brand Equity
POWER OF BRAND LIES IN MIND OF
THE CUSTOMERS
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Customer-Based Brand Equity
Thedifferential effect that brand knowledge
hason consumerresponsetothe
marketing ofthat brand
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Customer-Based Brand Equity
Differential effect
Differencesin consumerresponse
Brand knowledgeA resultofconsumers knowledge aboutthe
brand
Consumerresponsetomarketing
Choiceofa brand Recall ofcopypointsfrom an ad
Responseto a salespromotion
Evaluationsofa proposed brandextension
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POSITIVE CBBE
CBBE
POSITIVE
WHEN CUSTOMERS REACT
FAV
OURABLY
MORE ACCEPTANCE TOBRAND EXTENSION
LESS SENSITIVE TO PRICE
INCREASES
REQUIRES LESS ADVERTISINGSUPPORT
NEGATIVE
WHEN CUSTOMERS REACTLESS FAVOURABLY
LESS ACCEPTANCE TO BRANDEXTENSION
SENSITIVE TO PRICE
INCREASES
REQUIRES MOREADVERTISING SUPPORT
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Brand Equity as a Bridge
Reflection ofpastinvestmentsin
themarketingofa brand
Direction forfuturemarketing
actionsorprograms
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Brand Knowledge
Brand knowledgeisthe keytocreating brand
equity.
Brand knowledgeconsistsofa brand node in
memorywith a varietyofassociations linkedto
it.
Brand knowledge hastwocomponents:brand
awareness and brand image.
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Brand Awareness And Brand Image
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Brand Equity
CBBE OCCURS
WHEN THE
CUSTOMER HAS A
HIGH LEVELOF
AWARENESS
AND
FAMILIARITY
WITH THE BRANDS AND HOLD
SOME STRONG , FAVOURABLE AND UNIQUE
BRAND ASSOCIATIONS IN MIND
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Sources of Brand Equity
Brand awareness
Brandrecognition
Brandrecall
Brandimage
Strong, favorable, andunique brand
associations
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Establishing Brand Awareness
Increasing the familiarity of the brand
through repeated exposure (for brand
recognition)
Forging strong associations with the
appropriate product category or other
relevant purchase or consumption cues
(for brand recall)
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Brand Awareness Advantages
Learning advantages
Register the brand in the minds of consumers
Consideration advantages
Likelihood that the brand will be a member of the
consideration set
Choice advantagesAffect choices among brands in the consideration set
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Creating a Positive Brand Image
Brand Associations
Does notmatterwhich sourceofbrand association Needto befavorable, strong, andunique
Marketersshouldrecognizetheinfluenceofthese
othersourcesofinformation by both managing
them aswell aspossible and by adequatelyaccounting forthemin designingcommunication
strategies.
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The Four Steps of Brand Building
1. Ensureidentification ofthe brandwith
customers and an association ofthe brandincustomers minds
2. Establish thetotalityofbrandmeaningin themindsofconsumers
3. Elicitthepropercustomerresponsestothe
brandidentification and brandmeaning
4. Convert brandresponsetocreate an intense,
active loyaltyrelationship between customers
andthe brand
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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 aboutyou?
(brand responses)
What about you and me? What kind ofassociation and how much of a connection
would I like to have with you?
(brand relationships)
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CustomerCustomer--Based Brand Equity PyramidBased Brand Equity Pyramid
RESONANCE
SALIENCE
JUDGMENTS FEELINGS
PERFORMANCE IMAGERY
4. RELATIONSHIPS =
What about you and me?
3. RESPONSE =
What about you?
2. MEANING =
What are you?
1. IDENTITY =
Who are you?
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CustomerCustomer--Based Brand Equity ModelBased Brand Equity Model
Consumer-
Brand
Resonance
Brand Salience
Consumer
Judgments
Consumer
Feelings
Brand
PerformanceBrand
Imagery
INTENSE, ACTIVE
LOYALTY
RATIONAL &
EMOTIONAL
REACTIONS
POINTS-OF-
PARITY &POINTS-OF-
DIFFERENCE
DEEP, BROAD
BRAND
AWARENESS
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SubSub--Dimensions of CBBE PyramidDimensions of CBBE Pyramid
LOYALTY
ATTACHMENT
COMMUNITY
ENGAGEMENT
QUALITY
CREDIBILITY
CONSIDERATION
SUPERIORITY
WARMTH
FUNEXCITEMENT
SECURITY
SOCIAL APPROVAL
SELF-RESPECT
CATEGORY IDENTIFICATION
NEEDS SATISFIED
PRIMARY CHARACTERISTICS &
SECONDARY FEATURES
PRODUCT RELIABILITY,DURABILITY & SERVICEABILITY
SERVICE EFFECTIVENESS,
EFFICIENCY & EMPATHY
STYLE AND DESIGN
PRICE
USER PROFILES
PURCHASE & USAGE
SITUATIONSPERSONALITY &
VALUES
HISTORY, HERITAGE
& EXPERIENCES
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BRAND SALIENCE
MEASURES BRAND AWARENESS
EASY TO RECALL
CUES REQUIRED
REMINDERS REQUIRED
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Salience Dimensions
Depth ofbrand awareness
Easeofrecognition andrecall
Strength andclarityofcategorymembership
Breadth ofbrand awareness
P
urchaseconsideration Consumption consideration
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BRAND PERFORMANCE
HOW WELL PRODUCTOR SERVICES MEETS
CUSTOMERS FUNCTIONAL NEEDS
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Performance Dimensions
Primary characteristics and supplementary
features
Product reliability, durability, andserviceability
Service effectiveness, efficiency, and empathy
Style and design
Price
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BRAND IMAGERY
THE WAY PEOPLETHINK ABOUTA BRAND
ABSTRACTLY RATHERTHAN WHATTHEY
THINK BRAND ACTUALLYDOES
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Imagery Dimensions Userprofiles
Demographic andpsychographiccharacteristics Actual oraspirational
Groupperceptionspopularity
Purchase andusagesituations
Typeofchannel, specificstores, easeofpurchase
Time (day, week, month, year, etc.), location, andcontextofusage
Personality and values Sincerity, excitement, competence, sophistication, and
ruggedness
History, heritage, andexperiences Nostalgia
Memories
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BRAND JUDGEMENTS
CUSTOMERSPERSONAL OPINIONS
ABOUT AND
EVALUATION OF ABRAND
CONSUMERS FORM BYPULLING BOTH
BP &BI
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Judgment Dimensions
Brand quality Value
Satisfaction
Brand credibility Expertise
Trustworthiness
Likeability
Brand consideration
Relevance
Brand superiority
Differentiation
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Feelings Dimensions
Warmth
Fun
Excitement
Security
Social Approval Self-respect
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Resonance Dimensions
Behavioral loyaltyFrequency and amountofrepeatpurchases
Attitudinal attachment
Love brand (favoritepossessions;
a littlepleasure
)Proudofbrand
Sense of communityKinship
Affiliation
Active engagementSeek information
Join club
Visitwebsite, chatrooms
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0.17 0.66
0.24
0.65Performance
Imagery Feelings
Judgment
Resonance
0.58
0.49
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Brand Building Implications
Customersown brands.
Donttakeshortcutswith brands
.
Brandsshould have a duality.
Brandsshould haverichness.
Brandresonanceprovidesimportantfocus.
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Relationship of Customer Equity to Brand Equity
Customersdrivethesuccessofbrands butbrands arethe necessarytouch pointthatfirms havetoconnectwith theircustomers.
Customer-based brandequitymaintainsthatbrandscreate value byelicitingdifferentialcustomerresponsetomarketing activities.
The higherpricepremiums andincreasedlevelsof loyaltyengendered by brandsgenerateincremental cash flows.
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