measurement brand strength industrial goods 20110120
TRANSCRIPT
Measurement of Brand Strength of industrial Goods
Thomas Dmoch
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Table of content
Definitions– industrial goods–brand strength
Methods of brand strength measurementApplication
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DEFINITIONS METHODS OF BRAND STRENGHT MEASUREMENT APPLICATION
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Industrial Goods
Objects of branding
Industrial goods Consumer goods
Industrial durables Expandable goods
Component parts Not component
Raw materials
Auxiliarymaterials
Ingredient parts
Destination
Consumption
Integration
Manufacturing level
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Customers are organisations–Formalised decision making–Buying Centre–Demand depends on
downstream marketsSpecific solutions found in
interactive processMarket transparency Long-time relationships
Industrial buying behaviour
Misunderstandings–Always highly involved–Rational and calculative–Not susceptible to emotions–Don’t care about brand names
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Subjectivity in industrial buying behaviour
Test with industrial buyersSelect the best industrial productDifferent products, thereof 2 with–Equivalent functionality–Equivalent quality–Equivalent price–But: one with standard design, one with
appealing design
Result:First choice for 61,6%
Source: Yamamoto/Lambert 1994.
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Relevance of industrial Brands
Relevance today Relevance in 5 years
59%
54%
57%
76%
47%
44%
50%
37%
MechanicalEngineering
ElectricalEngineering
ChemicalsIndustry
AutomotiveSupplier
Source: Baumgarth, 2010
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Brand Strength
Brand controlling
Brand strength
Diagnosis and therapy
Brand equity
Evaluation
Why is the brand strong or weak? Which measures are useful to
raise brand value?
How much a brand is worth?
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Freixenet
Candle-light dinnerRose tattoo
erotic advertising
beautiful woman
erotic
seductive
fiery
full of spirits
Spanish
passionate
exclusive
preciousgolden letters
fashionablegolden label
frosted bottle
Rüttgers
cheap
red label
German origin
Brand Strength
sparklingwine
typical bottleProsecco
Champagne
exclusive
tangy
sparkling
good taste tingly
stimulatory inspiring
Champagneglass
romantic
festive occasion
joy
Festivity
Party
celebrate
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Imagery Measurement
The picture I imagine is
as clear and vivid as in reality
clear and quite vivid
moderately clear and vivid
vague and hazy
I don‘t have any mental image.
Please tick
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Imagery Measurement
The picture I imagine is like
Please tick
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DEFINITION METHODS OF BRAND STRENGTH MEASUREMENT APPLICATION
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No expensive market research
Benchmarking with industrial goods
Brand image is primarily people driven, not by mass communication
Popularity of the model– to overcome scepticism of sales
people– to convince brand unaware top
management
Specific Requirements in B-to-B sector
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GfK Brand Simulator
Period tPeriod t-1
Product Price Promotion Place
Marketing Mix
Competitors
Brand strength
Marketshare
Product Price Promotion Place
Marketing Mix
Competitors
Brand strength
Marketshare
Only for FMCGPanel data are hardly available in B-to-B context.No explanation why brand strength is high or lowNo suggestion which measures are useful to raise brand strengthNo assessment of visual part of brand knowledge
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Y&R Brand Asset Valuator
Brand Asset Valuator
Brand strength
Differentiation Relevance
Brand’s growth potential
Brand stature
Esteem Knowledge
Brand’s current power
Clear and simple Only a rough estimate Variables not sufficiently operationalised No assessment of visual part of brand knowledge
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GfK Brand Potential Index
Brand Awareness
Perceived quality
Pricepremium
UniquenessBrandsympathy
BrandConfidence
Identificationwith the brand
Brandrecommendation
Brandloyalty
Purchaseintention
Brand Potential
Index
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GfK Brand Potential Index
Brandawareness
Perceived quality
Pricepremium
UniquenessBrandsympathy
Brandconfidence
Identificationwith the brand
Brandrecommendation
Brandloyalty
Purchaseintention
Brandawareness
Pricepremium
Brandsympathy
Brandconfidence
Brandrecommendation
Brandloyalty
Brand Potential
Index
Simple and pragmatic Applicable in B2B Benchmarking possible BPI and FCB not independent BPI items are interdependent No assessment of visual part of brand knowledge
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Icon Iceberg Model
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Icon Iceberg Model
Brand imagery
Brand credit
Aided brand awareness Perceived advertising pressure Memorability of advertising Brand uniqueness Vividness of brand imagery Appeal
Brand likeability Brand confidence Brand loyalty
Short term
Long term
Marketing activities
Sales
Advertisement
TV-Spot
WebpageProduct design
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Icon Iceberg Model
Aided brand Awareness Perceived advertising
pressure Memorability of advertising Brand uniqueness Vividness of brand imagery Appeal
Brand likeability Brand Confidence Brand loyality
Norm22
21
8
2
-5
87
27
65
37
38
53
38
31
12
Brand Imagery
Brand Credit
-9
16
20
12
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Aided brand Awareness Perceived advertising
pressure Memorability of advertising Brand uniqueness Vividness of brand imagery Appeal
Brand likeability Brand Confidence Brand loyality
Bra
nd
Imag
ery
Brand Credit
Icon Iceberg Model
Norm87
27
65
37
38
53
38
31
12
Brand Imagery
Brand Credit
22
21
8
2
-5
-9
16
20
12
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Icon Iceberg Model
Norm87
27
65
37
38
53
38
31
12
Bra
nd
Imag
ery
Bra
nd C
redit
Aided brand Awareness
Perceived advertising
pressure
Memorability of advertising
Brand uniqueness
Vividness of brand imagery
Appeal
Brand likeability
Brand Confidence
Brand loyalty
Product range Logo
Branding Sales
Corporate Design Price
Internet Product design
Advertisement Public relations
Customer serviceUser
22
21
8
2
-5
-9
16
20
12
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Icon Iceberg Model
Norm87
27
65
37
38
53
38
31
12
Bra
nd im
ager
yBra
nd
cred
it
Aided brand Awareness
Perceived advertising
pressure
Memorability of advertising
Brand uniqueness
Vividness of brand imagery
Appeal
Brand likeability
Brand Confidence
Brand loyalty
Product range
Corporate Design
Advertisement Public relations
Customer service
Branding Sales
Internet Product design
Logo
User
Price
22
21
8
2
-5
-9
16
20
12
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Icon Iceberg Model
Norm87
37
38
53
38
31
12
Bra
nd
Imag
ery
Bra
nd C
redit
Aided brand Awareness
Brand uniqueness
Vividness of brand imagery
Appeal
Brand likeability
Brand Confidence
Brand loyalty
Product range
Corporate Design
Advertisement Public relations
Customer service
Branding Sales
Internet Product design
Logo
User
Price
22
8
2
-5
16
20
12
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Icon Iceberg Model
Norm
Bra
nd
Imag
ery
Bra
nd C
redit
Aided brand Awareness
Contact frequency
Brand uniqueness
Vividness of brand imagery
Appeal
Brand likeability
Brand Confidence
Brand loyalty
10
87
37
38
53
38
31
12
66
22
8
2
-5
16
20
12
Product range
Corporate Design
Advertisement Public relations
Customer service
Branding Sales
Internet Product design
Logo
User
Price
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Icon Iceberg Model
Norm
Bra
nd
Imag
ery
Bra
nd C
redit
Contact frequency
Supplier uniqueness
Vividness of Supplier imagery
Appeal
Supplier likeability
Confidence to supplier
Loyalty to supplier
10
8
2
-5
16
20
12
37
38
53
38
31
12
66
Product range
Corporate Design
Advertisement Public relations
Customer service
Branding Sales
Internet Product design
Logo
User
Price
Theory based concept Repeatedly validated model Adapted and validated for B2B Imagery taken into account Simple operationalisation Widely known and acepted in practice Brand imagery and brand credit are not independant
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Icon Iceberg Model
Norm87
27
65
37
38
53
38
31
12
Bra
nd im
ager
yBra
nd
cred
it
Aided brand Awareness
Perceived advertising
pressure
Memorability of advertising
Brand uniqueness
Vividness of brand imagery
Appeal
Brand likeability
Brand Confidence
Brand loyalty
Product range
Corporate Design
Advertisement Public relations
Customer service
Branding Sales
Internet Product design
Logo
User
Price
22
21
8
2
-5
-9
16
20
12
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Definitions Methods of brand strength measurement Application
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Heidelberg: Heterogeneous communication
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Umbrella Branding
Umbrella brand with subbrands with own
logo
Communication clutter
Umbrella brand
2000 2008
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Brand Status Brand definition Execution
Heidelberg printing machines
Product Design Product Branding Core competences
Product
Corporate Behaviour Corporate Fashion TrainingEmployees
Corporate Identity Corporate Design Corporate
Architecture Events
Communication
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Heidelberg Brand Strength Development
Reference value of technical durables B2B
Reference value of technical durables B2B
Bra
nd
imag
ery
Brand credit
HD-Customers1999
HD-Customers2006
Market leader Customers Willingness to pay Premium Prices Better financial Rating for Customers ready to buy HEIDELBERG Superior Resale Value High Demand for used HEIDELBERG Printing Machines
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Industrial buying behaviour is more formalised as in B-to-C
Industrial buyers are however susceptible to strong brands
Brand strength = psychological value–Diagnosis: Why is the brand strong or weak–Therapy: Which measures can raise brand
value? Iceberg model is the most suited
measurement tool–Adapted and validated–Taking imagery effects into account