Brand Equity

Definitions
Measurable financial value that accrues to a product/service from successful programs & activities Walker & Yankelovich A set of brands assets & liabilities linked to the brands name, symbol that add or subtract from the value it provides David Aaker

Definitions
The differential

effect of

brand knowledge on consumer response

to the marketing of the brand

Brand Equity- Advantages

1. 2. Brand equity as a bridge Reflection of the Past Direction for the future Focus and Guidance

Sources of Brand Equity

1. Brand Awareness- recognition & recall Learning advantages Brands become part of the consideration set Affects Choices of consumers

Sources of Brand Equity

2. Brand Image & Association- link strong favorable unique associations to the brand Strength of brand association- attributes (descriptive features of product) & benefits (personal value & meaning attached to product) Favorability relevant, distinct, belief Uniqueness points of parity & points of difference

Consumer Based Brand Equity

CBBE differential effect that brand knowledge has on the consumers response to the marketing of that brand. 3 key elements 1. Differential effect 2. Brand knowledge 3. Consumer response to marketing
Power of the brand lies in the mind of the consumers.

CBBE Pyramid
ConsumerBrand Resonance
Consumer Judgment

4 Bond Strong relationship

3 Emotional and Intellectual influence

Consumer Feelings Brand Imagery

2 Differentiators

Brand Performance

Brand Salience

1 Broad Awareness

Sub-dimensions of brand building blocks

Resonance
Loyalty Attachment Community Engagement 4 Brand Relationships (WHAT About You AND ME?)

Judgments

Quality Credibility Consideration Superiority

Brand Characteristics & Secondary Features Product Reliability, Durability & Serviceability Service Effectiveness, Efficiency, & Empathy Style and Design; Price

Warmth, Fun Excitement, Security, Social Approval, Self-Respect

Feelings
3 Brand Response (WHAT About You?)

Performance

User Profiles Purchase and Usage Situations Personality & Values History, Heritage, & Experiences

Imagery
2 Brand Meaning (WHAT Are You?)

Category Identification Needs Satisfied

1 Brand Identity (WHO Are You?)

Salience

4 Steps to Brand building

1. Identify the brand with customers based on need or product class 2. Brand Meaning in the minds of customers by linking tangible &intangible to the brand 3. Response 4. Relationship

Brand Pyramid
1. Identity i. Salience Category Identification Need Satisfaction

Brand Pyramid
2. Meaning
i. Performance Product Reliability, durability, serviceability Service effectiveness, efficiently, empathy Style & design Price

Brand Pyramid
2. Meaning ii. ImageryUser profiles Usage situations Personality & Values History & experiences

Brand Pyramid
3. Response i.

JudgmentsQuality Credibility Consideration Superiority

ii.

FeelingsWarmth Fun Excitement Security Self Respect Social Approval

Brand Pyramid
4. Relationships i.

ResonanceLoyalty Attachment Community- Apple, Harley Davidson Engagement clubs-Gang of Girls, MTV, WOM by customers themselves

Building Customer-Based Brand Equity

1. Brand building tools and objectives

2. Consumer knowledge effects

3. Branding Benefits

1. Brand building tools and objectives Choose Brand Elements

Brand name Logo Symbol Character Packaging Slogan Memorability Meaningfulnes s Likability Transferability Adaptability Protectability

Brand building tools and objectives Developing Marketing Programs

Product Price Tangible and intangible benefits Value Perceptions

Distribution Channels
Communications

Integrate Push & Pull

Mix and match options

Ref: Strategic Brand Mgmt. Kevin Kelly

Brand building tools and objectives

Leverage on secondary associations

Company Country of origin Channels of Dist. Other Brands Endorse or Event

Awareness
Meaningfulness

Transferability

Consumer Knowledge Effects

Brand Awareness
Depth
Recall Recognition

Brand Associations
Strong
Relevance Consistence

Breadth
Purchase Consumption

Favorable
Desirable Deliverable

Unique
Points of parity Points of difference

Possible outcomes
Greater Loyalty Less vulnerability to competitive marketing actions and crises Larger Margins More elastic response to price decreases More inelastic response to price increases Greater trade cooperation and support Increased marketing communication efficiency and effectiveness Possible Licensing opportunities More favorable brand extension evaluations

Managing Customer Brand Equity

1. 2. 3. 4. Define Brand hierarchy Define Brand- Product mix Enhance Brand Equity over time Establish B.E. over market segments

Managing Customer Brand Equity

Define Brand hierarchy
Principle of Simplicity Principle of relevance Principle of differentiation Principle of prominence Principle of commonality

Managing Customer Brand Equity

Define BrandProduct mix
Brand extensions Brand Portfolio

Managing Customer Brand Equity

Enhance Brand Equity over time
A. Brand Reinforcements B. Brand revitalization

Managing Customer Brand Equity

Establish B.E. over market segments
Identify differences in consumer behavior Adjust Branding program