CUSTOMER-BASED BRAND EQUITY

WHAT MAKES A BRAND STRONG?

HOW DO YOU BUILD A STRONG BRAND?

WHAT DO DIFFERENT BRANDS MEAN TO CONSUMERS?

HOW DOES THE BRAND KNOWLEDGE OF CONSUMERS AFFECT THEIR RESPONSE TO MARKETING ACTIVITY?

Brand Equity: is the added value endowed to products and services. It may be reflected in the way consumers think, feel, and act with respect to the brand, as well as the prices, market share, and profitability that the brand commands for the firm.

Customer-based brand equity: It is the differential effect that brand knowledge has on consumer response to the marketing of that brand. brand may have positive and negative CBBE.

The Concept of Customer-Based Brand Equity

Customer-based brand equity

Differential effect Customer brand knowledge Customer response to brand marketing

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

Benefits of Customer-Based Brand Equity

Enjoy greater brand loyalty, usage, and affinity Command larger price premiums Receive greater trade cooperation & support Increase marketing communication effectiveness Yield licensing opportunities Support brand extensions.

BRAND KNOWLEDGE

Brand knowledge is the key to creating brand equity, because it creates the differential effect that drives brand equity.

Brand knowledge comprise of two components:

Brand awareness: is related to the strength of the brand node or trace in memory, as reflected by consumers ability to identify the brand under different conditions. Brand image: defined as perceptions about a brand as reflected by the brand associations held in consumer memory. Example: Apple computers, McDonald, LOreal (associations indicate characteristics of the product)

BRAND AWARENESS

It consists of brand recognition and brand recall performance. Brand recognition refers to consumers ability to confirm prior exposure to the brand when given the brand as a cue. Brand recall refers to consumers ability to retrieve the brand from memory when given the product category, purchase or usage situation as a cue. Example: think of Noodles (Maggie)

Building A Strong Brand

The Four Steps of Brand Building: Identity (Who are you?) Brand Meaning (What are you?) Response (What about you, What do I think or feel about you?) Relationship (What about you & me?)

1. 2. 3.

4.

Brand Resonance Pyramid

Salience Dimensions

Depth of brand awareness

Ease of recognition & recall Strength & clarity of category membership Purchase consideration Consumption consideration

Breadth of brand awareness

Performance Dimensions

Primary characteristics & supplementary features Product reliability, durability, and serviceability Service effectiveness, efficiency, and empathy Style and design Price

Imagery Dimensions

User profiles Demographic & psychographic characteristics Actual or aspirational Group perceptions -- popularity Purchase & usage situations Type of channel, specific stores, ease of purchase Time (day, week, month, year, etc.), location, and context of usage Personality & values Sincerity, excitement, competence, sophistication, & ruggedness

History, heritage, & experiences Nostalgia Memories

Judgment Dimensions

Brand quality Value Satisfaction Brand credibility Expertise Trustworthiness Likability Brand consideration Relevance

Brand superiority Differentiation

Feelings Dimensions

Warmth Fun Excitement Security Social approval Self-respect

Resonance Dimensions

Behavioral loyalty Frequency and amount of repeat purchases Attitudinal attachment Love brand (favorite possessions; a little pleasure) Proud of brand Sense of community Kinship Affiliation Active engagement Seek information Join club Visit web site, chat rooms

Customer-based Brand Equity Pyramid (2)

Brand Salience: This relates to aspects of awareness of the brand Brand Performance: This relates to ways in which product/ service meets customers needs Brand Imagery: Its how customers visualize a brand abstractly, with no relevance to what the brand actually does

Brand Judgments: The customers personal opinions and evaluations with regard to the brand Brand Feelings: The customers emotional responses and reactions with respect to the brand Brand Resonance: The ultimate relationship & level of identification that the customer has with the brand

DISCUSSIONS