brand equity - models cbs 23 24 07

8/2/2019 Brand Equity - Models CBS 23 24 07

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9-1

Measuring Brand Equity

Models Brand Asset Valuator

Brand Resonance

Aakers model

Intebrands brand Valuation

BrandZ BDI & CDI


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9-2

Chapter Questions

What is a brand and how does brandingwork?

What is brand equity?

How is brand equity built, measured, andmanaged?


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9-3

Brand

A name, term, sign, symbol

or design, or a combination of them,intended to identify the goods

or services of one seller or group

of sellers and to differentiatethem from those of competitors.


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9-4

Attributes of Strong Brands

Excels at deliveringdesired benefits

Stays relevant

Priced to meetperceptions of value

Positioned properly

Communicates

consistent brandmessages

Well-designed brandhierarchy

Uses multiple

marketing activities Understands

consumer-brandrelationship

Supported byorganization

Monitors sources ofbrand equity


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9-5

The Role of Brands

Identify the maker

Simplify product handling

Organize accounting

Offer legal protection


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9-6

The Role of Brands

Signify quality

Create barriers to entry

Serve as a competitiveadvantage

Secure price premium


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9-7

Brand Equity

The differential effect that brandknowledge has on consumer

response to the

marketing of that brand.


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9-8

Brand Knowledge

Knowledge

Thoughts

Experiences

Beliefs Images

Feelings


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9-9

Brand Associations

Strong

Unique

Favorable
http://www.starbucks.com/


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9-10

Marketing Advantages of Strong Brands

Improved perceptions ofproduct performance

Greater loyalty

Less vulnerable tocompetition

Less vulnerable to crises

Larger margins

Inelastic consumerresponse to priceincreases

Elastic consumerresponse to pricedecreases

Greater tradecooperation

Increase ineffectiveness of IMC

Licensingopportunities

Brand extension

opportunities


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9-11

Brand Equity Models

Brand Asset Valuator

Aaker Model BRANDZ

Brand Resonance

BDI & CDI


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9-12

Brand Asset Valuator (BAV)

A model devised by Young & Rubicam- amost ambitious effort !

Measured brand equity for 450 global,8000 localbrands

Thirty two item questionnaire with a four set ofmeasures


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9-13


Differentiation

Re

levance

E

steem

Kn

owledge

Brand Equity

The four measures are

Hypothesis that

Brands are built sequentially along these 4 dimensions


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9-14


Differentiation measures how distinctivethe brand is in the marketplace

Relevance Measures whether a brand is

meaningful or personally relevant Esteem Measures whether a brand is

held in high regard and has a high

perceived quality Knowledge Measures the understanding

of brand by consumers


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9-15


Differentiation measures how distinctivethe brand is in the marketplace

Relevance Measures whether a brand is

meaningful or personally relevantD * R = BRAND STRENGTH

Strong brand must have a high strength

Growing brands and established brandsare high on strength Hallmark , Disney


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9-17

BAV Power Grid

Strong nichebrands

Increase in staturethru knowledge

Great equity toprotect andexploit

Leadership

New unfocussedbrands

Dangerous to staytoo long here

Tired brands, butstill retain some

esteem andknowledge

Eroding/sinking

BrandStrength

D*R

Brand Stature E*K Low High

Low

High High

Low


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9-18

BAV Power Grid

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D R E K

3-D Column 1

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D R E K

BrandStrength

D*R

Brand Stature E*KLow High

Low

HighHigh

Low

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D R E K

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D R E K

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D R E K

Leadership

Decline

New, unfocussed

Strong ,niche

Tired but still known


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9-19


Points to be noted : Not easy to be high in differentiation and

relevance, very few like Disney are high on brandstrength

High stature brands have rich heritage, longevity,identity Coke, Hallmark,Campbell

Brands revitalised by extensions or relaunchhave high stature/strength

Stature differs from country,regions,demographic/pychographic profiles

Pkg . Goods in US, vs cars in Japan


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9-20

Drivers of Brand Equity

Brand Elements

Marketing Activities

Meaning Transference


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9-21

Brand Elements

ElementsSlogans

Brand

names URLs

Logos

SymbolsCharacters


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9-22

Brand Element Choice Criteria

Memorable

Meaningful

Likeability

Transferable

Adaptable

Protectible


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9-23

Slogans

Like a good neighbourState Farm is there

Just do it

Nothing runs like aDeere

Help is just around thecorner

Save 15% or more in15 minutes or less

Hungry kya?

We try harder Well pick you up

Nextel Done

Zoom Zoom Im lovin it

Innovation at work

This Buds for you Always low prices

We also make steel


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9-24

Aaker Model Brand Identity

Brand-as-product

Brand-as-person Brand-as-symbol

Brand-as-organization


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9-25

Aaker Model Brand Assets

Brand

loyalty

Brandassociations

Perceived

quality

Brandawareness

Proprietary

assets


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9-26

Brand Resonance

Brand Resonance refers to the extent to which

customers feel in sync with the brand. Just aswe feel the vibe between ourselves and others,we also experience a vibe that resonates

between ourselves and brands.


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9-27

Brand Resonance

There are four categories to brand resonance:

Behaviour - such as frequent purchase.

Attitudewhen we say we love the brand.

Sense of community such as the HarleyOwner's Group (HOG), Santro family

Active engagement where people invest timeand money beyond purchase or consumption.


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9-28

Brand Resonance Pyramid


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9-29

Secondary Sources ofBrand Knowledge


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9-30

Brand Resonance

Brand IdentityThe outward expression ofthe brand, including its name and visualappearance. The brand's identity is its

fundamental means of consumer recognitionand symbolizes the brand's differentiation from

competitors.

Brand Salience No. of respondents who have

an opinion on the brands, goes beyondawareness, recognition and recall. Considered

while buying


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9-31

Brand Resonance

Noel Coburn , neuroscientist :

If print advertising was added to television advertising for a particularbrand then there was an increase in brand salience. The combination of the

two also enhanced memorability of communication and strengthened thebrand values. Moreover, print advertising helps in reaching the 'hard to get'

targets.

Television advertising only starts to be effective from the moment there is aclear brand cue. On the other hand, print does not suffer because it is a

static medium. It allows users to extract all the meanings of the ads at thereader's speed and hence it doesn't suffer from the processing problems

that television suffers from, Coburn stated.


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9-32

Brand Resonance

Brand Image How the brand is now perceived

Limited by time

Could be passive and relate to the past Tactical

Image : perception now

Identity : how the marketer wants it tobe perceived

Position : communication of identity

and value proposition


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9-33

Measuring Brand Equity

Brand Audits

Brand Tracking

Brand Valuation


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9-34

Interbrands Brand Equity Formula

Brand earnings Brand sales

Costs of sales

Marketing costs Overhead expenses

Remuneration of

capital charge Taxation

Brand strength Leadership (25%)

Stability (15%)

Market (10%) Geographic spread

(25%)

Trend (10%) Support (10%)

Protection (5%)
http://www.interbrand.com/


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9-35

The 10 Most Valuable Brands

Brand 1990 2004 Brand Value (Billions)

Coca-Cola Coca cola $67.39

Microsoft Kelloggs $61.37

IBM Mc Donalds $53.79GE Kodak $44.11

Intel Marlboro $33.50

Disney IBM $27.11

McDonalds AMEX $25.00

Nokia Sony $24.04

Toyota Mercedes $22.67

Marlboro Nescafe $22.13


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9 36

Managing Brand Equity

Brand Reinforcement

Brand Revitalization

Brand Crises

brand equity - models cbs 23 24 07

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