brand-equity-1233909894459040-1

8/7/2019 brand-equity-1233909894459040-1

1/26

Brand Equity

8/7/2019 brand-equity-1233909894459040-1

2/26

Definitions

Measurable financial value that

accrues to a product/service from

successful programs & activities Walker & Yankelovich

A set of brands assets & liabilities

linked to the brands name, symbol

that add or subtract from the value it

provides David Aaker

8/7/2019 brand-equity-1233909894459040-1

3/26

Definitions

The differential effect of

brand knowledge onconsumer response

to the marketing of the brand

8/7/2019 brand-equity-1233909894459040-1

4/26

Brand Equity- Advantages

1. Brand equity as a bridge

Reflection of the Past

Direction for the future

2. Focus and Guidance

8/7/2019 brand-equity-1233909894459040-1

5/26

Sources ofBrand Equity

1. Brand Awareness- recognition &

recall

Learning advantages Brands become part of the

consideration set

Affects Choices of consumers

8/7/2019 brand-equity-1233909894459040-1

6/26

Sources ofBrand Equity

2. Brand Image & Association- link strongfavorable unique associations to thebrand

S

trength of brand association- attributes(descriptive features of product) &benefits (personal value & meaningattached to product)

Favorability relevant, distinct, belief

Uniqueness points of parity & points ofdifference

8/7/2019 brand-equity-1233909894459040-1

7/26

ConsumerBased Brand Equity

CBBE differential effect that brandknowledge has on the consumersresponse to the marketing of that brand.

3 key elements1. Differential effect

2. Brand knowledge

3. Consumer response to marketingPower of the brand lies in the mind of the

consumers.

8/7/2019 brand-equity-1233909894459040-1

8/26

CBBE Pyramid

Brand Salience

Consumer-BrandResonance

ConsumerJudgment Consumer

Feelings

Brand

Performance

BrandImagery

4 Bond Strong relationship

1 Broad Awareness

2 Differentiators

3 Emotional and Intellectual influence

8/7/2019 brand-equity-1233909894459040-1

9/26

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

8/7/2019 brand-equity-1233909894459040-1

10/26

4Steps to Brand building

1.1. IdentifyIdentify the brand with customers

based on need or product class

2. Brand MeaningMeaning in the minds ofcustomers by linking tangible

&intangible to the brand

3.3. Response

Response

4.4. RelationshipRelationship

8/7/2019 brand-equity-1233909894459040-1

11/26

Brand Pyramid

1. Identity i. Salience -

Category

Identification

Need Satisfaction

8/7/2019 brand-equity-1233909894459040-1

12/26

Brand Pyramid

2. Meaning i. Performance

Product Reliability,

durability,

serviceability Service

effectiveness,

efficiently, empathy

Style & design Price

8/7/2019 brand-equity-1233909894459040-1

13/26

Brand Pyramid

2. Meaning ii. Imagery-

User profiles

Usage situationsPersonality & Values

History & experiences

8/7/2019 brand-equity-1233909894459040-1

14/26

Brand Pyramid

3.Response i. Judgments- Quality

Credibility

Consideration

Superiorityii. Feelings- Warmth

Fun

Excitement

S

ecurity SelfRespect

Social Approval

8/7/2019 brand-equity-1233909894459040-1

15/26

Brand Pyramid

4. Relationships i. Resonance-

Loyalty

Attachment

Community- Apple,

Harley Davidson

Engagement

clubs-Gang of Girls,

MTV, WOM bycustomers

themselves

8/7/2019 brand-equity-1233909894459040-1

16/26

BuildingCustomer-Based Brand

Equity

1. Brand building tools and objectives

2. Consumer knowledge effects

3. Branding Benefits

8/7/2019 brand-equity-1233909894459040-1

17/26

1. Brand building tools and objectives

Choose Brand Elements

Brand name

LogoSymbol

Character

Packaging

Slogan

Memorability

Meaningfulness

Likability

Transferability

Adaptability

Protectability

8/7/2019 brand-equity-1233909894459040-1

18/26

Brand building tools and objectives

Developing Marketing Programs

Product

Price

Distribution

Channels

Communications

Tangible and intangible

benefits

Value Perceptions

Integrate Push & Pull

Mix and match options

Ref: Strategic Brand Mgmt. Kevin Kelly

8/7/2019 brand-equity-1233909894459040-1

19/26

Brand building tools and objectives

Leverage on secondary associations

Company

Country oforigin

Channels of

Dist.

OtherBrands

Endorse or

Event

Awareness

Meaningfulness

Transferability

8/7/2019 brand-equity-1233909894459040-1

20/26

ConsumerKnowledge Effects

Brand Awareness Depth

Recall

Recognition

Breadth

Purchase

Consumption

Brand Associations Strong

Relevance

Consistence

Favorable

Desirable

Deliverable

Unique Points of parity

Points of difference

8/7/2019 brand-equity-1233909894459040-1

21/26

Possible outcomes

GreaterLoyalty

Less vulnerability to competitive marketingactions and crises

Larger Margins

More elastic response to price decreases More inelastic response to price increases

Greater trade cooperation and support

Increased marketing communication efficiencyand effectiveness

Possible Licensing opportunities

More favorable brand extension evaluations

8/7/2019 brand-equity-1233909894459040-1

22/26

ManagingCustomerBrand Equity

1. Define Brand hierarchy

2. Define Brand- Product mix

3. Enhance Brand Equity over time4. Establish B.E. over market

segments

8/7/2019 brand-equity-1233909894459040-1

23/26


Define Brand

hierarchy

Principle ofSimplicity

Principle of relevance

Principle of

differentiation

Principle of

prominence

Principle of

commonality

8/7/2019 brand-equity-1233909894459040-1

24/26


Define Brand-

Product mix

Brand extensions

Brand Portfolio

8/7/2019 brand-equity-1233909894459040-1

25/26


Enhance Brand

Equity over time

A. Brand

Reinforcements

B. Brand

revitalization

8/7/2019 brand-equity-1233909894459040-1

26/26


Establish B.E.

over market

segments

Identify

differences in

consumer

behavior Adjust Branding

program

brand-equity-1233909894459040-1

Documents