Customer Based Brand Equity (CBBE)

Chapter 2
Sept 1-8

Paswan-Fall2k4

What is a brand?
--A distinguishing name and/or symbol to identify and differentiate products from those offered by competitors.
--Brand equity: the set of assets (or liabilities) linked to a brand name and symbol that goes beyond the value provided by the product.

Paswan-Fall2k4

CBBE

Power of the brand = what resides in the mind of the consumers

Differential effect. Brand knowledge.

Consumer response to marketing.

It is a bridge between Reflection PastPresent-Direction for Future

Paswan-Fall2k4

Advantages of a Strong Brand

Improved perceptions of product performance. Greater loyalty. Less vulnerability to competitor threats. Less vulnerability to market crises. Larger margins. Enhanced financial performance. More inelastic consumer response to price increase. More elastic consumer response to price decrease. Greater trade cooperation and support. Increased communication effectiveness. Potential licensing opportunities. Brand extension Opportunities.

Paswan-Fall2k4

Customer Equity
Value equity qualti, price, and convenience. Brand equity brand awareness, customer brand attitude, customer perception of brand ethics. Relationship equity loyalty programs, special recognition and treatment programs, community building programs, and knowledge building programs. Brand Image - Strength, Favorability, and Uniqueness.

Paswan-Fall2k4

Brand building

Ensure identification of the brand with consumers and an association with a specific product class or consumer need. Establish the totality of brand in consumers mind linking the tangible and intangible associations with certain properties. Elicit proper consumer response. Convert the response to intense and active loyalty.

Paswan-Fall2k4

Brand building

Who are you - Brand identity? What are you brand meaning? What about you think and feel brand response? What about you and me brand relationship or association?

Paswan-Fall2k4

Brand building
Brand identity salience.. Brand meaning Performance and imagery. Brand response judgment and feeling. Brand relationship resonance.

Paswan-Fall2k4

Brand building

Identity or Salience category identification, need satisfaction. Brand meaning

Performance (characteristics, features, reliability, durability,

serviceability; service effectiveness, efficiency, and empathy; Style, Design, and Price. Imagery (user profile, personality and values, history, heritage and experience; purchase and usage situation).

Response
Judgment (quality, credibility, consideration, and superiority) and feeling (warmth, fun, excitement, security, social approval, self-respect).

Resonance or relationship loyalty, attachment, community,

engagement.

Paswan-Fall2k4

A Simple Conceptual Model of Brand Equity

. . . provides positive consumer responses . . .
Brand Awareness

A good brand . . .
Product, Price, Community, Communication and Distribution Programs

. . . and benefits both target customers and firm

Customer Benefits

Depth Breadth

Confidence Loyalty Satisfaction

Wraparounds

Brand Associations Core Product/ Service

Strength Relevant Consistent

Valence Uniqueness Memorable Distinctive

Firm Benefits

Reduced marketing costs Increased margins

Opportunity for brand extensions

Source: Keller (1996), Aaker (1996), Strategic Market Research Group, Marketspace Analysis

Paswan-Fall2k4

Brand Hierarchies

Creates a tree structure of brands in consumers mind

Duke Fuqua Law

MBA
Weekend
Paswan-Fall2k4

PhD

Daytime

Brand Hierarchies

There are positive and negative associations at each level (avoid or fix the negative levels)
Corporate (Duke) Family (Fuqua) Individual (MBA) Modifier (Daytime)

J&J is corporate, P&G is not. Thus, benefits tend to be abstract (safety) and transfer across individual brands.

Paswan-Fall2k4

Marketing Programs to Build Brand Equity

Product

Pricing

Communication

Brand Equity

Promotional Program

Distribution
Paswan-Fall2k4

In class branding exercise

UNT-COBA Investigate and find answers to the six brand building blocks
1. 2. 3. 4. Salience Performance. Imagery. Judgment quality, credibility, consideration, & superiority. 5. Feelings. 6. Resonance loyalty, attachment, community, engagement.
Paswan-Fall2k4