What is customer-based brand equity

Brand Equity and

z Customer-based brand equity is the
Positioning differential effect of brand knowledge on
consumer response to the marketing of a
Sources, Benefits, and brand.
Development of Customer-Based
Brand Equity
Marketing Brand Brand Equity
= Differential
Program of Knowledge
Effect
A Brand of the Brand

Benefits of Brand Equity Components of Brand Knowledge

z Stronger brand loyalty Brand
Repeat Exposure
-Visually & verbally
Reinforce the brand ID
Brand Recognition
z Larger margins (price elasticity) Awareness
- Memory
-Developlinkage
memorable
between
creative,
linkage
the brand
Brand Recall andbetween the brand and
its product
z Less vulnerability Brand
situations
category & usage/
purchase/consumption
z Higher trade support Knowledge
situations
-Increase brand strength
z Increased marketing communication by-providing
Strength relevant and
consistent information
Brand - Favorability
effectiveness Image
Perception
Association -Improve brand favorability
-byUniqueness
creating association

z More opportunities for licensing and brand of With

the desirable, deliverable
association
attributes/benefits (product

extensions (line/product and geographical or non-product related)

-Develop uniqueness by
extensions) associating point of parity/
difference to the brand

Why is brand awareness

What is Brand Awareness?
Recognition versus recall
z Brand versus situation cues
Awareness depth versus breath
z Brand versus situation linkages
important?
z A necessary condition for inclusion in
the set of brands being considered
for purchase
z A sufficient condition for choice in
low-involvement or limited
information decision settings
z Influences the nature and strength of
association

1
 Brand Image
Brand Image Degree of Abstractness
Brand Perceptions through Associations More abstract Brand Perceptions through Associations

Types of brand
association Types of brand
association

Attributes Benefits Attitudes

Attributes Benefits Attitudes

Product-related Product-related
Non-product-related (various degrees of Functional Non-product-related (various degrees of Functional
Features/ingredients) Features/ingredients)

Price Price Symbolic

Experiential

User imagery
User imagery Experiential
Symbolic
Usage imagery

Feelings and feelings

Usage imagery -associated experiences

Feelings and feelings Brand personality

-associated experiences

Brand personality

Strength of brand Strength of brand

associations associations

Favorability of brand Favorability of brand

associations associations

Uniqueness of brand Uniqueness of brand

associations association

Strength of Brand Association

Strength of Brand Association (Initial Associative Strength)

Connection by
Direct Experience
Stronger
Connection by
Communicated
Noncommercial Quantity:
Messages Attention
Brand A
Brand A Quality:
Connection by
Communicated Relevance and
Commercial Consistency
Messages

Connection by
Inferences

Strength of Brand Association–Recallability

Favorability and Uniqueness of
(Long-Term Associative Strength) Brand Associations

Presence of Favorability
Length Brand X can
of time
other product I want it deliver it
information (desirability) (deliverability)

Type and number

of cues in the
context of recall

It is different!!

2
 Determine Desired Brand Knowledge
What is Brand Positioning? or Develop the Right Position

Develop a position is to identify a target and 1. Identify Target Market

determine how a brand is/should be z Demographic, Psychographic, Geographic,
considered by the target in comparison and Behavioral Segmentation
to its competitors 2. Identify the Brand Competitors
1. Who is the target?
3. Analyze the Similarities and Differences
2. Who are the competitors?
between the Brand and the Competitors
3. How is the brand similar to the
z Point of parity is often the first step before
competitors? the establishment of the point of difference
4. How is the brand different from the
competitors?

Conceptual Steps of Brand

Building Discussion
Forge
Brand Elicit
intense,
active brand
Relationship –
Loyalty, attachment,
positive, Identify sources of brand equity for:
community, accessible
relationships
engagement brand - University of Florida
Brand Brand responsesCreate
Judgment – Feelings –
strong, - PBS
Quality, Emotions evoked
credibility, by a brand (e.g., favorable,
consideration, fun, social
and unique - ?
superiority approval)
associations
Brand Meaning Derived Brand Meaning Derived
from Performance – Objective, from Imagery – Perception
Establish Comparison of brand equity and its sources for:
functional evaluation of a and association of a brand’s breadth and
brand’s ingredients, features, users, purchase/usage
reliability, durability, service, situation, personality, and
depth of - FedEx and UPS
style/design, and price history brand
awareness
Brand Identity Development – Brand Awareness Salience

Approaches in Measuring
Methods in Measuring Brand
Brand Equity
Equity
z Comparative Measurement: assesses specific
z Measuring Sources of Brand Equity
benefits of brand equity by making comparisons
z Indirect assessment of brand equity by measuring z Marketing-based: hold brand fixed & examine consumer
brand knowledge structures responses to changes in the marketing program
z Measuring Outcomes of Brand Equity z Brand-based: hold fixed a particular marketing activity
and examine how consumer responses to the activity
z Direct assessment of brand equity by measuring change as the focal brand is compared to a fictitious,
the impact of brand knowledge on consumer unnamed, or competitive comparison brand.
response

3
Methods in Measuring Brand
Equity Brand Equity Audit System
z Holistic Measurement: Assesses brand equity by placing an
overall value for the brand in either “utility” or “money” terms. 1.
z Residual approach: measuring the value of the brand by finding
out what remains when preferences for objective characteristics
(e.g., physical attributes) of the product are subtracted from 2.
overall brand preference
z Valuation approach: measuring brand equity in dollars by
determining—
a) the amount of money that would be required to reproduce or replace 3.
the brand (cost approach)
b) the incremental cash flows that would arise from the sale of the
brand versus those that would arise form the sale of an unbranded
product (market approach)
c) the net present value of the discounted future cash flows to be
derived from the brand (income approach)
Brand Inventory
Describe relevant brand elements and marketing
programs
Brand Exploratory
Conduct primary and secondary research to provide
information on consumer perception of the brand
(identify potential sources of brand equity)
Brand Positioning
Determine the desired brand awareness and brand
image (consider target market, nature of competition,
point-of-parity associations, & point-of-difference
associations)

Brand Equity Management Brand Equity Management

z Branding Strategy z Branding Strategy
z Brand portfolio management: Brand-Product & Product- z Brand Hierarchy of corporate/company brand, family
Brand Relationships brand, individual brand, and brand modifier

Discovery Cold Cereal

Cable network Total Dell

Cocoa Puff
Magazine Dimension OptiPlex Precision
Oatmeal Crisp
Educational
Model 2200 Model 2300 Model 4500
video tapes

Brand Equity Management Corporate Brand Example

z Branding Strategy
z Brand fortification (brand management over
time and geographic boundaries)
z Brand reinforcement and revitalization overtime
z Brand management over geographic
boundaries with modified brand elements,
marketing programs, and secondary
associations reflecting the region’s consumer
preferences.
z Sara Lee Corporate Branding Strategy
z See List of Sara Lee Brands
z Draw Sara Lee’s brand-product/product brand
portfolio
z Draw Sara Lee’s brand hierarchy
z Are there apparent branding directions based on
these matrixes?

4
Discussion Points
z Are there any differences in the importance of
awareness and images for different product
categories?
z Which brand measurement system is better?
z Examples of brands that need revitalization?
z Compare the sources of brand equity for:
z Frederick’s of Hollywood & Victoria’s Secret
z Special K & Total
z Maytag & Kenmore washing machines
z USPS & UPS