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5: Customer-Based Brand Equity and Brand Positioning (Consumer-Based…
5: Customer-Based Brand Equity
and Brand Positioning
Developing Brand Strategies & Tactics
Brand Positioning Model
how to
establish competitive advantages
in customers' minds in market :checkered_flag:
Brand Resonance Model
use competitive advantages to
create intense, active loyalty relationships
:silhouette:
Brand Value Chain Model
trace value creation process to
better understand financial impact
of marketing expenditures :money_mouth_face::muscle:
Consumer-Based Brand
Equity (CBBE)
[academia]
Differential effect
brand equity arises from
differences in consumer repsonse
Brand Knowledge
Response differences
due to knowledge
about brand
--> experiences over time with brand :hand::skin-tone-2:
"Differential effect that brand knowledge has on consumer response to the marketing of that brand"
#
#
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Consumer response to marketing
reflected in
perceptions
:eyeglasses:
Positive CBBE
:check:: react more favorably to brand than unbranded
Negative CBBE
:red_cross: :react less favorable to brand marketing, prefer unbranded over branded
Brand reflects the past
:
consider money spent on branding as investment :currency_exchange:
Past touchpoints should be analyzed :symbols:
Quality
of brand building investment :!!:
BE as future direction:
Brand knowledge helps marketers
determine
good/bad future directions
for brand :world_map:
Brand equity offers guidance to
interpret past
marketing
performance and
design future marketing
programs :recycle:
The Branding Ladder:
#
1. Brand Identity
Ensure
identification
of the brand with customers and
association
of brand with specific product class, benefit, customer need :id:
2. Brand Meaning
Establish the totality of the brand meaning in customers' minds by
strategically linking tangible and intangible associations
:chains:
--> Nutella gives good start to your day
3. Brand Responses
Elicit proper responses to the brand :shopping_trolley: :speaking_head_in_silhouette:
4. Brand Relationships
Convert responses to
create brand resonance
and an intense,
active loyalty relationship
:+1: :hugging_face:
building a brand is a sequence of steps, building on each other
Brand Building Blocks
1. Salience
awareness
of brand / how easily brand is evoked :bulb:
2a. Performance
#
How well product meets customers' functional needs (utilitarian, aesthetic, economic)
Attributes
underlying brand performance:
primary ingredients & supplementary features :white_square_button:
product reliability, durability, serviceablility :hammer_and_wrench:
service effectiveness, efficiency, empathy :100:
style and design :barber:
price :euro:
3a. Judgements
customers'
personal opinions/evaluations of brand
, formed by
combining all different brand performance and imagery associations
about quality,
credibility, consideration, superiority
[
BAV
]
4. Relationships/Resonance
ultimate
relationship
& level of identification with brand :trophy: :+1::skin-tone-2:
characterized by:
Intensity
: depth of psychological bond :woman::skin-tone-6: :explode:
Level of activity from loyalty:
repeat purchases, attract other customers :mega: :slot_machine:
beyond judgements and feelings
2b. Imagery
#
intangible aspects
of the brand, abstract thoughts ab brand :thinking_face:
Intangibles linked to a brand:
User Profiles :male-doctor::skin-tone-2: :racing_car: dentist driving Porsche
Purchase, usage situations
Personality, values
History, heritage, experiences :large_blue_circle: Nivea
3b. Feelings
customers'
emotional responses and reactions
to brand :two_hearts:
Warmth, fun, excitement, security, social approval, self-respect
Brand Asset Valuator (BAV)
[industry]
purpose:
diagnose brand challenges and provide early signs of brand fatigue
Pillars of brand health:
Differentation:
Brand seen as
different, unique, distinct
.
Can be less distinct to appeal to everyone :raised_hands:
Relevance:
customers find brand
relevant to their needs
Ferrari not relevant to me :racing_car: :red_cross:
Esteem:
consumers
respect and regard brand
(for quality, leadership, reliability)
brand lives up to its promises :man-tipping-hand::skin-tone-2:
Knowledge:
consumers understand, are
familiar with brand
:silhouettes:
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#
Brand Strength:
shows
future
growth value, momentum
Differentiation :arrow_up: Relevance :arrow_down: --> power to build on relevance
Differentiation :arrow_down: Relevance :arrow_up: --> uniqueness faded, buying for price, convenience
Differentiation :arrow_up:: Relevance :arrow_up: --> cultural icon with momentum
#
#
Brand Stature:
shows
current
operating value, profitability
Esteem :arrow_up: Knowledge :arrow_down: --> brand more liked than known
Esteem :arrow_down: Knowledge :arrow_up: --> brand more known than liked
Esteem :arrow_up: Knowledge :arrow_up: --> brand established leader, credible
Brand Lifecycle
Stature :arrow_down: Strength :arrow_down: -->
Indifference
new, unknown products --> room for business development
Uber, Coca-Cola Life
Stature :arrow_down: Strength :arrow_up: -->
Curiosity
niche market, unrealized potential --> low earnings, high potential
LinkedIn, Kickstarter
Stature :arrow_up: Strength :arrow_up: -->
Commitment
leadership brands --> high earnings & potential for value creation
Apple, Disney
Stature :arrow_up: Strength :arrow_down: -->
Fatigue
eroded brands, compete on price, low customer interest
Gap, Hertz, Best Western
Mapped to CBBE:
Differentiation :left_right_arrow: Superiority (judgements)
Relevance :left_right_arrow: Consideration (judgements)
Esteem :left_right_arrow: credibility (judgements)
Knowledge :left_right_arrow: Resonance
Sources of Brand Equity
Brand Awareness
(KPI)
related to
strength of brand node
(BMW for "German car")
in memory
Brand Recognition
consumers
confirm prior exposure
to brand
when asked if they know :check: :red_cross:
Brand Recall
consumers retrieve brand from memory when given category, needs fulfilled by category, usage situation :thought_balloon: :check:
measure time
between asking and until brand is mentioned :stopwatch:
Advantages?
learning advantages :books:
consideration advantages :check:
choice advantages
associated with
problem solution
:thinking_face:
--> need something for breakfast, need to clean
Brand Image
(KPI) defined by:
Strength
of brand associations
person
thinks deeply about product information
and relates it to existing brand knowledge, stronger the brand assoc. :muscle:
Favorability
of brand associations
higher when brand
possess relevant attributes
and benefits satisfying customer needs :check:
Uniqueness
of brand associations:
"unique selling proposition"
provides sustainable
competitive advantage
more unique, less alternatives people see :unicorn_face:
Brand Positioning
Marketers must know:
(determine brand position)
who target customer is :person_with_ball::skin-tone-2:
who the competitors are :male-detective::skin-tone-2:
How the brand is similar :athletic_shoe:
How the brand is different :basketball:
Designing the company's offer and image to
occupy a distinct and valued place
in the target customers' minds
Market: all actual & potential buyers with sufficient
interest, access, income for products
:couple: :moneybag: :red_flag:
Market segmentation: divides market into distinct
homogenous consumer groups
:male-student: :older_man:
Segment based on criteria
:
identifiability, size, accessibility, responsiveness
with segment bases:
B2B Behavioral, Demographic, Psychographic, Geographic
B2C - Nature of Good, Buying Condition, Demographic
Use Competitive Analysis:
to choose markets to profitably serve :heavy_plus_sign:
Indirect competition
can exist outside product category
Ex. --> :movie_camera: , :sparkler: , :tv:
Multiple frames reference:
results from broader category competition
Ex. --> OJ in morning or mixed with cocktails
Points of Difference
attributes or benefits consumers strongly associate with a brand, believe they
cannot be found with another brand
:man-gesturing-no::skin-tone-2:
Functional-performance related considerations and abstract-imagery related considerations
may not matter unless certain PoP can be achieved :open_mouth:
Ex.
--> Nespresso easier to clean, variety (=
why I should switch
)
Points of Parity
Category PoP --> :car: has 4 wheels
Competitive PoP --> negate competitor's PoD (yearly costs)
Correlational PoP --> potential negative associations arising from existing of more positive associations for brand
easier to achieve than PoD :beginner:
Ex.
--> Nespresso is coffee, it's black (=
no risk in switching
)
Positioning Guidelines
Define & communicate
competitive frame of reference
Communicate category membership using
benefits
:speaking_head_in_silhouette:
product descriptor
as compact means of
conveying category origin :coffee:
Choosing PoD
Desirability criteria, deliverability criteria,
feasibility & communicability
Establishing PoP & PoD
Leverage the equity of other entitiy
Redefine relationship (Nespresso)
Straddle positions
Positioning where a company
straddles 2 frames of reference
with same set of PoP & PoD :left_right_arrow:
PoP become PoD in other category, vice-versa
:warning: If PoP & PoD are not credible in both,
brand not viewed as legitimate
Update Position over time
Laddering
Once target market sees how brand relates to alternatives, must
deepen the meanings
associated with brand positioning :hole:
Reacting
Competitor challenges PoD?
Do nothing :man-shrugging::skin-tone-3:
Go on defense :shield:
Go on offensive :gift::money_with_wings::label:
Brand Mantra
[internal-focus]
3-5 word phrase capturing the
irrefutable essence of
the brand positioning
:star2: :athletic_shoe:
Provides guidance about:
which
products
to introduce under brand :athletic_shoe: :shirt:
which
ad campaigns
to run :man-running::skin-tone-6: :movie_camera:
where
and
how
brand is sold :computer: :shopping_trolley:
Designing
:
Brand Mantra should provide:
Brand functions:
nature of product/service,
benefits
it provides
Descriptive modifier:
combined with function, helps
delineate boundaries
what's possible/not possible :crystal_ball:
Emotional modifier:
how a brand provides benefits,
in which ways
:thinking_face:
Implementing:
brand mantra:
should be developed at
same time as positioning
requires internal examination
from
wide input of employees
:inbox_tray:
and PoP and PoD can be identified during
brainstorming based on core brand associations
:cyclone: