1MODULE -2
Customer Based Brand Equity: Customer Based Brand Equity-Meaning,
Model of CBBE
Brand Equity: Meaning, Sources, Steps in Building Brands, Brand
building blocks-Resonance, Judgments, Feelings, performance,
imagery, salience-Brand Building Implications, David Aaker’s Brand
Equity Model.
Brand Identity & Positioning : Meaning of Brand identity, Need
for Identity &Positioning, Dimensions of brand identity, Brand
identity prism.
Brand positioning – Meaning, Point of parity & Point of
difference, Positioning guidelines.
Brand Value: Definition, Core Brand values, Brand mantras, Internal
branding,
STRATEGIC BRAND MANAGEMENT
STRATEGIC BRAND MANAGEMENT
Customer-Based Brand Equity
This model introduced mainly to get answers for 2 questions.
What makes brand strong?
This model incorporates theoretical advances & managerial
practices in understanding & influencing consumer
behavior.
CBBE model provides a unique point of view as to what brand equity
is & how it should be built, measured & managed.
It is the power of a brand lies in what resides in the minds of
customers.
STRATEGIC BRAND MANAGEMENT
Customer-Based Brand Equity defined as the differential effect that
brand knowledge has on consumer response to the marketing of that
brand.
A brand has positive CBBE when consumer reacts more favorably to a
product & the way it is marketed when the brand is
identified.
This approaches brand equity from the perspective of the consumer,
whether the consumer is an individual or an organization.
Determinants of Customer-Based Brand Equity:
Customer is aware of and familiar with the brand
Customer holds some strong, favorable, and unique brand
associations in memory
STRATEGIC BRAND MANAGEMENT
Customer-based brand equity
Differential effect: brand equity arises form differences in
consumer response, if no differences occur, then the brand-name
product can essentially be classified as a commodity or a generic
version of the product.
Customer brand knowledge: these differences in response are a
result of consumers knowledge about the brands.
Customer response to brand marketing: customers differential
response which make up brand equity are reflected in perception
preferences, and behavior related to all aspects of brand
marketing, including their choice of a brand, recall of copy points
form an ad, response to a sale promotion and evaluation of a
proposed brand extension.
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Customer-Based Brand Equity as a “Bridge”
Customer-based brand equity represents the “added value” endowed to
a product as a result of past investments in the marketing of a
brand.
Customer-based brand equity provides direction and focus to future
marketing activities.
According to this model consumer knowledge drives the differences
that manifest themselves in terms of brand equity.
Brand equity provides marketers with a vital strategic bridge from
their past to their future.
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The initial choices for the brand elements.
The supporting marketing program and the manner by which the brand
is integrated into it.
Other associations indirectly transferred to the brand by linking
it to some other entities.
Building a strong brand involves a series of steps as part of a
“branding ladder”
A strong brand is also characterized by a logically constructed set
of brand “building blocks.”
Identifies areas of strength and weakness.
Provides guidance to marketing activities.
STRATEGIC BRAND MANAGEMENT
Enjoy greater brand loyalty, usage, and affinity.
Command larger price premiums.
Increase marketing communication effectiveness
Brand equity
A set of brand assets and liabilities linked to a brand.
Its name and symbol, that add to or subtract from the value
provided by a product or service to a firm and/or to that firm` s
customers. By: David Aaker.
Brand Equity the added values endowed to product or service.
.
STRATEGIC BRAND MANAGEMENT
STRATEGIC BRAND MANAGEMENT
The brand equity concept stresses the importance of the brand in
marketing strategies.
• Brand equity is defined in terms of the marketing effects
uniquely attributable to the brand.
Brand equity relates to the fact that different outcomes result in
the marketing of a product or service because of its brand name, as
compared to if the same product or service did not have that
name.
It should reflect not only the capitalized value of the incremental
profits from the current use of the brand name but also the value
of its potential extensions to other products.
STRATEGIC BRAND MANAGEMENT
• Use Satisfaction
• Brand Loyalty
Getting awareness of the brand and the meaning.
Making brand associations -- even the factory location in Saturn’s
case.
Building perceived quality
Getting reseller support
Skillful design and implementation of marketing programs.
The capitalization on a well thought-out positioning.
Strong brand leadership position in the market place.
*
Brand Awareness
Brand Image
STRATEGIC BRAND MANAGEMENT
1. Brand Awareness
Brand Awareness is the ability of a potential buyer to recognize or
recall that a brand is a member of a certain product
category.
It involves 2 concepts.
Be different, memorable
Symbol exposure
Establishing of Brand Awareness
It is created by increasing the familiarity of the brand through
repeated exposure i.e. the more a consumer experiences the brand by
seeing it hearing it, thinking about it, the more likely the brand
become registered in memory…
Offer set of associations.
Advantages of Brand Awareness
Learning advantages: the first way that brand awareness affects
consumer decision making is try influencing the formation of
strength of the brand associations that make up the brand
image.
Consideration: consumers think of consider the brand whenever they
are making a purchase.
Choice: it can affect choices among brands.
STRATEGIC BRAND MANAGEMENT
2. Brand image
Brand image is a positive brand image is created by marketing
process that link strong, favorable & unique associations to
the brand in memory.
Brand Association means A brand association is anything "linked" in
memory to a brand.
It involves 3 concepts:
Strength of brand association
Favorability of brand association
Uniqueness of brand association: it involves Reputation, brand
assets, loyalty, awareness.
STRATEGIC BRAND MANAGEMENT
Steps in brand building or brand development
Ensure identification of the brand with customers.
Firmly establish the totality of brand meaning in the minds of
customers.
Elicit the proper customer responses to brand identification &
brand meaning.
Convert brand response to create an intense, active loyalty
relationship B/W customers to brand.
STRATEGIC BRAND MANAGEMENT
BRAND BUILDING BLOCKS
1.Performance Dimensions
It describes how well the product or service meets customers more
functional needs, how well does the brand rate on objective
assessments of quality ? To what extent does the brand satisfy
utilitarian and economic customer needs what in the product or
service.
Brand performance transcends the product ‘s ingredients and
features to includes dimension that differentiate the brand often
the strongest brand positioning relies on performance advantages of
some kind and it is rare that a brand can overcome sever
performance deficiencies.
Primary characteristics & supplementary features
Style and design
STRATEGIC BRAND MANAGEMENT
2. Imagery Dimensions
Brand imagery refers to more intangible aspects of the brand and
consumers can form imagery association directly form their own
experience or indirectly through advertising or by some other
source of information such as word of mouth
User profiles
Type of channel, specific stores, ease of purchase
Time (day, week, month, year, etc.), location, and context of
usage
Personality & values
STRATEGIC BRAND MANAGEMENT
3. Judgment Dimensions
Brand judgments are customers personal opinion about and evaluation
of the brand which consumers form by putting together all the
different brand performance an imagery associations.
4 types of judgments:
STRATEGIC BRAND MANAGEMENT
4. Feelings Dimensions
Brand feeling are customer emotional response and reactions to the
brand, it also relate to the social currency evoked by the brand,
what feeling are evoked by the marketing program for the brand or
by other means???? How does the brand affect customers feelings
about themselves & their relationships with others????
There are 6 important types of Brand Building Feelings:
Warmth
Fun
Excitement
Security
5.Resonance Dimensions
Brand resonance : the final step of the model focuses on the
ultimate relationship and level of identification that the customer
has with the brand it describe the nature of this relationship and
the extent to which customers feel that they are “in sync” with the
brand
Behavioral loyalty
Attitudinal attachment
Proud of brand
Sense of community
STRATEGIC BRAND MANAGEMENT
Salience Dimensions
Achieving the right brand identity means creating brand salience
with customers, brand salience measures awareness of brand.
Depth of brand awareness
Ease of recognition & recall.
Breadth of brand awareness
It measure the range of Purchase consideration and usage situations
in which the brand elements comes to mind & depends to a large
extent on the org’n of brand and product knowledge in memory.
Consumption consideration.
Brands should have a duality.
Brands should have richness.
STRATEGIC BRAND MANAGEMENT
DAVID AAKER’S BRAND EQUITY
Aaker defines BE as a set of five categories of brand assets &
liabilities linked to a brand, its name & symbol that add to or
subtract from the value provided by a product or service to a firm
or to that firms customers or both.
5 levels are as follows
Brand loyalty.
Brand Awareness
Perceived Quality
Brand Associations
STRATEGIC BRAND MANAGEMENT
Brand Identity & Positioning
Brand identity: brand identity is a unique set of brand
associations that the brand strategist aspires to create or
maintain these associations represent what the brand stands for
& imply a promise to customers from the organization
members.
Brand Identity Should Help Establish A Relationship Between The
Brand & The Customer By Generating A Value Proposition
Involving Functional, Emotional, Or Self-expressive Benefits.
STRATEGIC BRAND MANAGEMENT
CONSISTS OF 12 DIMENSIONS OF BRAND ORGANIZED AROUND 4
PERSPECTIVES:
As a product: product scope, product attributes, quality/value,
uses, user, country of origin.
As an organization: organizational attributes, local vs.
global
As a person: brand personality, brand-customer relationships.
As a symbol: visual imagery/metaphors, heritage
CORE & EXTENDED IDENTITY:
Core identity: central timeless essence of the brand – remains
constant as brand travels to new markets/products.
Extended identity: includes various brand identity elements,
organised into cohesive & meaningful groups.
STRATEGIC BRAND MANAGEMENT
KAPFERER represents brand identity diagrammatically as a six-sided
prism as shown below:
Internalisation
Externalisation
STRATEGIC BRAND MANAGEMENT
Physique according to him is the basis of the brand. Product
features, symbols & attributes
E.G. the physique of Philips is “technology and reliability” while
for the brand Tata it is “trust”
Personality is same as Aaker, it answers the question “what happens
to this brand when it becomes a person?” Character &
attitude
Culture symbolizes the organization, its country-of-origin and the
values it stands for. Set of Values
E.G. traditional brands like balsara, dabur and zandu.
STRATEGIC BRAND MANAGEMENT
Relationship is the handshake between consumer and the
organisation. Beliefs & association
E.G. the relationship with “safola” is safety.
Reflection is the consumer’s perception for what the brands stands
for. Customer’s view of the brand
E.G. coke’s image more attract youth.
Self-image is what the consumer think of himself. Internal mirror
of customer as user of brand
E.G. benz Car owner think that since he has bought the car he is
treating himself to one of the best car in the world.
STRATEGIC BRAND MANAGEMENT
For Sify India let us look at how they have
built the brand basis the Kapferer Model
Physical
Reflection
STRATEGIC BRAND MANAGEMENT
Is at the heart of the marketing strategy.
“. . . the act of designing the company’s offer and image so that
it occupies a distinct and valued place in the target customer’s
minds.” Philip Kotler
STRATEGIC BRAND MANAGEMENT
Target Market
STRATEGIC BRAND MANAGEMENT
Target Market
A market is the set of all actual and potential buyers who have
sufficient interest in, income for, and access to a product.
Market segmentation divides the market into distinct groups of
homogeneous consumers who have similar needs and consumer behavior,
and who thus require similar marketing mixes.
Market segmentation requires making tradeoffs between costs and
benefits.
Criteria for Segmentation:
Size: Is there adequate sales potential in the segment?
Accessibility: Are specialized distribution outlets and
communication media available to reach the segment?
Responsiveness: How favorably will the segment respond to a
tailored marketing program?
STRATEGIC BRAND MANAGEMENT
2. Nature of Competition
Deciding to target a certain type of consumer often defines the
nature of competition.
Competition takes place on other bases of course such as channels
of distribution it also analysis considers a whole host of factors
including the resources capabilities and likely intentions of
various other firms in order for marketers to choose markets where
consumers can be profitably served .
Do not define competition too narrowly.
STRATEGIC BRAND MANAGEMENT
3. Points of Parity and Points of Difference
1. Points of Difference Associations: are attributes or benefits
that consumers strongly associate with a brand, positively
evaluate, & believe that they could not find to the same extent
with a competitive brand.
2. Points of Parity Associations: are those associations designed
to negate competitors POD.
3. Points of Parity versus Points of Difference: consumers must
believe that the brand is good enough on that dimensions.
STRATEGIC BRAND MANAGEMENT
4. Updating Positioning Over Time.
STRATEGIC BRAND MANAGEMENT
1. Defining and Communicating the Competitive Frame of
Reference:
A starting point in defining a competitive frame of reference for
brand positioning is to determine Category Membership. Membership
indicates the products or set of products with which a brand
competes. Communicating category membership informs the consumer
about the goals that they might achieve by using a product or
service.
STRATEGIC BRAND MANAGEMENT
2. Choosing Points of Parity and Points of Difference
Points of Parity: These are driven by the needs of category
membership and the necessity of negating competitors’ PODs.
Points of Difference: These are based on the following
criteria:
1. Desirability: In terms of a) Relevance
b) Distinctiveness, and c) Believablity
2. Deliverability: In terms of a) Feasibility
b) Communicability, and c) Sustainability
STRATEGIC BRAND MANAGEMENT
3. Establishing Points of Parity and Points of Difference:
1. Separate the attributes: Launch two marketing campaigns, each
one devoted to a different brand attribute or benefit.
2. Leverage Equity of another Entity: Link the brand with a
well-liked celebrity, cause or event.
3. Redefine the Relationship: Use attitude change strategies to
convert negative perspectives about the brand to positive
ones.
STRATEGIC BRAND MANAGEMENT
4. Updating Positioning Over Time
1. Laddering: This strategy is to deepen the meaning of the brand
to tap into core brand values or other more abstract
considerations.
2. Reacting: This could imply no reaction to moderate or
significant reactions depending on level of competitive
threat.
STRATEGIC BRAND MANAGEMENT
Brand Value
Value defines as the worth in usefulness or importance to the
possessor.
Brand value is the assessment of all you get in return for all that
you give.
Value is what the buyers are willing to pay it.
Value is the perceived worth of a set of benefits received by a
customer in exchange for the total cost of an offering taking into
consideration available competitive offerings & price.
STRATEGIC BRAND MANAGEMENT
1. Core Brand Values
Set of abstract concepts or phrases that characterize the five to
ten most important dimensions of the mental map of a brand
Relate to points-of-parity and points-of-difference
Mental map Core brand values Brand mantra.
Mental map accurately portrays in detail all salient brand
associations & responses for a particular target market.
Defining & establishing Brand mantra
An articulation of the “heart and soul” of the brand.
similar to “brand essence” or “core brand promise”.
Short three- to five-word phrases that capture the irrefutable
(certain , unquestionable ) essence or spirit of the brand
positioning and brand values.
It involves 2 concepts
Designing A brand mantras
Implementing a brand mantras
What makes a good brand mantra??
The term brand functions describes the nature of the product or
service or the type of experiences or benefits the brand
provides.
The descriptive modifier further clarifies its nature.
The emotional modifier provides another qualifier—how exactly does
the brand provide benefits, and in what way?
2. Implementing a brand mantras
Communicate: a good mantra should both define the category of
business to set the brand boundaries and clarify what is unique
about the brand.
Simplify: an effective brand mantra should memorable ,i.e. it
should be short, crisp .
Inspire: it should also stake out ground i.e. personally meaningful
and relevant to as many employee as possible.
STRATEGIC BRAND MANAGEMENT
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3. Internal Branding
Members of the organization are properly aligned with the brand and
what it represents.
STRATEGIC BRAND MANAGEMENT
Externally, consumer-focused assessment.
A comprehensive examination of a brand involving activities to
assess the health of the brand, uncover its sources of equity, and
suggest ways to improve and leverage that equity.
It includes brand vision, mission, promise, values, position,
personality, and performance.
Importance of Brand Audits
Firm perspective
Consumer perspective
Recommend marketing programs to maximize long-term brand
equity
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STRATEGIC BRAND MANAGEMENT
Brand Audit Steps
Brand inventory (supply side): it provide a current comprehensive
profile of how all the products & services sold by a company
are marketed and branded
Brand exploratory (demand side): although the supply-side view
revealed by the brand inventory is useful actual consumer
perceptions.
The brand exploratory is research directed to understanding what
consumers think and feel about the brand and its corresponding
product category in order to identify sources of brand
equity.
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