BRAND EQUITY AND

BRAND POSITIONING

Mkt4806
Product and Brand Management
Book: Kevin Lane Keller, Strategic Brand
Management, 2nd Edition
1
Chapter 2 Customer-based Brand Equity
Chapter 3 Brand Positioning and Values

Lecture note by Polboon Nuntamanop

WHAT IS A BRAND?

 A brand is a name, term, sign, symbol, or design

which is intended to identify the goods or services of
one seller or group of sellers and to differentiate
them from those of competitors.

2
BRAND ELEMENTS
 A variety of brand elements can be chosen
that inherently enhance brand awareness or
facilitate the formation of strong, favorable,
and unique brand associations:

 Brand Name
 Logo
 Symbol
 Character
 Packaging
 Slogan

3
Why ‘branding’ ?
What makes a brand strong?
How do you build a strong
brand?

4
 CUSTOMER-BASED BRAND EQUITY
 The differential effect that brand
knowledge has on consumer response
to the marketing of that brand.

 Customer-based brand equity occurs

when the customer has a high level of
awareness and familiarity with the brand
and hold some strong, favorable, and
unique brand associations in memory.
5
BRAND EQUITY

Brand Association

Brand Awareness

Brand Positive Attitude

Brand Occasional users

Brand
Loyalty

6
 AN EXAMPLE
 Brand loyalty (10,000 customers
Consume @4/month = 40,000 sales unit/month
 Brand Occasional users (10,000 X@1 per 2
months = 5000 units sales per month)
 Brand Positive Attitude – has a good chance to
purchase and consume the products under the
brand if motivated.
 Brand Awareness – has tendency to try, use or
recommend the products under the brand if
convinced.
 Brand Association – has tendency to try, use or
recommend the products under the brand.
7
SOURCES OF BRAND EQUITY
 Brand awareness
 Learning advantage
 Consideration advantage
 Choice advantage\

 Brand Image

8
CONSUMER REASONS FOR BRAND CHOICES
– AN EXAMPLE
 Past experience
 Price
 Quality
 Personal recommendation
 Advertising
 Rating on consumer report
 Environmental performance

9
4 STEPS OF BRAND BUILDING
1. Ensure identification of the brand
with customers with a specific product
that meet customer need.
2. Firmly establish the totality of brand
meaning in the minds of consumers.
3. Elicit the customer responses to
brand identification and brand
meaning.
4. Convert brand response to create an
intense, active, loyalty relationship
between customers and the brand. 10
BRAND BUILDING BLOCKS
 Identity - who are you?
 Meaning - what are you?

 Response - what about you?

 Relationship - what about you and me?

11
 Resonance 4 relationship

Judgments Feelings 3. response

Performance Imagery 2.Meaning

Salience 1.Identity
12
 Loyalty
Attachment
Community
Engagement

Quality Warmth /
Creditability Fun / excitement
Consideration Security
Superiority Social approval / self respect

Product characteristics User profile

Reliability Usage situation
Effectiveness Personality and values
Style / design/ price History, heritage, experiences

Category identification
Needs satisfied
13
BRAND RESONANCE
 Behavioral loyalty
 Keep buying the same product and same brand
over years or generations
 Attitudinal attachment
 Believe in the brand
 Sense of community
 Use the brand because of sense of community
or vice versa, E.g. Apple, Harley Davidson
 Active engagement
14
PRODUCT CATEGORY STRUCTURE
AN EXAMPLE
Beverage

Water Flavored

Non-alcoholic Alcoholic

Coffee Soft Distilled

milk juice wine beer
& tea drink spirits

15
BRAND POSITIONING

Brand Positioning (as defined by Kotler) is

“ an act of designing the company‟s offer
and image so that it occupies a distinct and
valued in the target customer‟s mind”.

 Finding a proper „location‟ in the minds of

a group of consumers or market segment so
that they think about a product or service in
the „right‟ or desired way.
16
ESTABLISHING BRAND POSITIONING
 Target market
 Points of parity and Points of Difference

17
TARGET MARKET
 A market is the set of all actual and potential
buyers who have sufficient interests in, income
for, and access to a product.
 A market segmentation – a distinct group of
homogeneous consumers who have similar needs
and behavior and thus require similar marketing
mixes.

18
SEGMENTATION BASES
Consumer Business-to-business
Segmentation Bases Segmentation Bases

 Behavioral  Nature of good

 E.g. user status  E.g. Semi-finished
 Demographic  Buying condition
 E.g, age, income  E.g. Location
 Psychographic  Demographic
 E.g. values, lifestyle  E.g. SIC code
 Geographic  No of employees
 E.g, local, regional,  Sales volume
international
19
SEGMENTATION CRITERIA
 Identifiability: can segment
identification be determined?
 Size: is there adequate sales potential in
the segment?
 Accessibility: Can the segment be
reached?
 Responsiveness: How favorable will the
segment respond to a tailored marketing
program>
20
SEGMENTS OF USERS
4 Groups of users based on strength of
commitment.

 Convertible – highly likely to switch brands

 Shallow – not ready to switch but consider
alternatives/
 Average – comfortable with their choice,
unlikely to switch brands in the near future.
 Entrenched – loyal to the brand, unlikely to
change in the foreseeable future.
21
POINTS OF PARITY (POP) AND
POINTS OF DIFFERENCES (POD)
Point of Parity  a particular dimension
or attribute or a brand which a group of
consumers believe that is „good enough‟ or
meet their basic expectations.

Point of Difference  A particular

attribute or dimension of a brand which a
group of consumers likes and perceives as
the uniqueness of the brand.
22
POINT OF DIFFERENCES
Other names:
 Competitive Points of Parity

 Unique Selling Point

23
POSITIONING GUIDELINES

1. Defining and communicating the competitive

frame of reference
2. Choosing points of parity and points of
differences.
3. Establishing points of parity and points of
differences.
4. Updating positioning over time

24
BRAND VALUES
Cores Brand Values
 Set of abstract associations (Attributes and
benefits) that characterize the 5 to 10 most
important aspects or dimensions of a brand.
 When you think of a brand, what comes to mind?

25
BRAND MANTRAS
Brand Mantra
 brand essence
 Brand core promises
 An articulation of „heart and soul‟ of the brand.
 Short phrase that capture the essence or spirit of
the brand positioning and brand values.

26
AN EXAMPLE
A LOCAL (THAI) SOYMILK BRAND - VITAMILK
Core Brand Values
 Soy-based
 Quality
 Healthy
 Tasty
 Safety
 Filling
 For everyone
 Widely available anywhere anytime.

Brand Mantra
„Vitamilk’ is a tasty healthy drink.

27