Brand Equity and Brand Positioning

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.

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

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.
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Brand Equity
Brand Awareness Brand Association

Brand Positive Attitude

Brand Loyalty

Brand Occasional users

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.
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Sources of brand equity

Brand awareness
Learning advantage Consideration advantage Choice advantage\

Brand Image

Consumer reasons for brand choices An example

Past experience
Price Quality Personal recommendation Advertising Rating on consumer report Environmental performance
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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.
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Brand Building Blocks

Identity - who are you? Meaning - what are you? Response - what about you? Relationship - what about you and me?

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Resonance

4 relationship

Judgments

Feelings

3. response

Performance

Imagery

2.Meaning

Salience
Kellers Customer-Based Brand Equity Pyramid

1.Identity
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Loyalty Attachment Community Engagement

Quality Creditability Consideration Superiority Product characteristics Reliability Effectiveness Style / design/ price

Warmth / Fun / excitement Security Social approval / self respect User profile Usage situation Personality and values History, heritage, experiences

Category identification Needs satisfied

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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
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Product Category Structure

An example
Beverage

Water

Flavored

Non-alcoholic

Alcoholic

milk

Coffee & tea

juice

Soft drink

wine

beer

Distilled spirits

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Brand Positioning
Brand Positioning (as defined by Kotler) is an act of designing the companys offer and image so that it occupies a distinct and valued in the target customers 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.
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Establishing brand Positioning

Target market Points of parity and Points of Difference

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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.
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Segmentation bases
Consumer Segmentation Bases Business-to-business Segmentation Bases

Behavioral
E.g. user status

Nature of good
E.g. Semi-finished

Demographic
E.g, age, income

Buying condition
E.g. Location

Psychographic
E.g. values, lifestyle

Demographic
E.g. SIC code No of employees Sales volume

Geographic
E.g, local, regional, international

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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>
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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.
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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.
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Point of Differences
Other names: Competitive Points of Parity Unique Selling Point

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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
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Brand Audit
Brand Inventory
Brand Exploratory

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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
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Criteria for choosing brand elements

Memorable Meaningful Likeable Transferability Adaptability Protect ability
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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?
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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.
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Emotional Modifier

Descriptive Modifier

Brand Function

NIKE DISNEY

Authentic Fun

Athletic Family

Performance Entertainment

Communicates what the brand is and what brand is not .

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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.

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Brand Equity Measurement Models

Brand Asset Valuator Aaker Model BRANDZ Brand Resonance

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Brand Asset Valuator (BAV)

Brand Equity

Differentiation
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Knowledge

Relevance

Esteem

BAV Power Grid

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Aaker Model Brand Identity

Brand-as-product

Brand-as-organization

Brand-as-person

Brand-as-symbol

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Aaker Model Brand Assets

Brand loyalty
Brand associations Proprietary assets Brand awareness Perceived quality

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The BRANDZ Model

Bonding

Advantage
Performance Relevance Presence
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Marketing Perspectives
Product Strategy
Perceived quality and value Brand intangibles Relationship Marketing After Marketing Loyalty Programs

Pricing Strategy Channel Strategy

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 Secondary Brand Associations

Company Country Channel Other brands [co- branding] Spokespersons Events Other third party sources
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The Brand Value Chain

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 Advantages of Co branding
Establishing a Brand Equity Management System
Brand Equity Charter Brand Equity Report
Goal Activity Measurement Evaluation
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