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Week 2: Customer based brand equity and brand resonance (1. Define and…
Week 2: Customer based brand equity and brand resonance
1. Define and describe customer-based brand equity (CBBE)
The differential effect that brand knowledge has on consumer responds to marketing of that brand
Approaches brand equity from the perspective of the customer
Power of a brand lies in what customers have learned, felt, seen and heard about the brand as a result of their experiences
A brand has positive CBBE when consumers react more favourably to a product and the way it is marketed when the brand is identified than when it is not
Customers may then be more accepting of a new brand extension, less sensitive to price increases and withdrawal of advertising support
Improved perceptions of product performance
Greater loyalty
Customer has high levels of awareness, familiarity and holds strong, favourable and unique brand associations in memory
'Differential effect':
Brand equity arises from the differences in consumer response
' Brand Knowledge':
brand knowledge is key to creating brand equity as it creates the differential effect that drives it
Associative network memory
Consists of brand awareness and brand image
Brand awareness:
related to the strength of brand node in memory, the consumer's ability to identify the brand under different conditions
Brand image:
consumers' perception about a brand, as reflected by the brand associations held in consumer memory
'Consumers' differential response':
Consumers' perceptions, preferences and behaviours related to all aspects of brand's marketing
2. Discuss various sources of brand equity
Brand awareness
Brand image
Brand awareness:
Impt as it is needed for inclusion in the consideration set of brands, low involvement decision settings and it has influence on the nature and strength of associations that comprise brand image
Can be heightened by increasing familiarity through repeated exposure to the brand and linking the brand to product category
Consists of brand recognition and brand recall
Brand recognition
Consumer's ability to confirm prior exposure to the brand when given the brand as a cue
Repeated exposure impt
Brand recall
Consumer's ability to retrieve the brand from memory when given the product category, the needs fulfilled or a purchase or usage situation as a cue
Requires linkages in memory to appropriate product categories or other consumption cues
eg. jingles or slogans, logos, symbols, packaging
Advantages of brand awareness
Learning advantages
Establish a brand node in memory which affects how easily the consumer learns and stores additional brand associations
Consideration advantages
Consumers must consider the brand whenever they're making a purchase
More likely the brand will be part of the consideration set, increase in brand recall
Choice advantages
Affects choices among brands in the consideration set
During low-involvement decisions
Brand image:
The strength, favourability and uniqueness of the associations affect the response consumers will have to the brand
Brand associations
Brand attributes
Brand benefits
Brand attributes
descriptive features that characterise a product/service
Brand benefits
Personal value and meaning that consumers attach to the product/service attributes
Unique of brand associations
Brand has a unique selling proposition that gives consumers a compelling reason why they should buy it
Through direct comparisons with competitors or implicitly highlighted
Based on perf related or non perf related attributes or benefits
Strength of brand associations
More deeply a person thinks about product info and relates it to existing brand knowledge, the stronger the brand associations
Personal relevance and consistency with which it is presented over time strengthens associations
Direct experiences create strongest brand attribute and benefit associations
Word of mouth
Advertising create the weakest associations, can be easily changed, must use creative communications
Favourability of brand associations
Convincing consumers that the brand possesses relevant attributes and benefits that satisfy their needs and wants
Situation or context dependent
3. Define brand resonance
The intense, active, loyalty relationships of customers, and the degree to which they resonate or connect with a brand
Significant brand equity only occurs if brands achieve this
4. Describe the steps in building brand resonance
Identification of the brand (salience)
Establish brand meaning in customer's minds (perf, imagery)
Elicit proper customer responses (judgements, feelings)
Convert responses to create loyalty relationships (resonance)
Step 2: Establish brand meaning in customer's minds (perf, imagery)
Creating brand meaning includes establishing brand image, what it stands for in consumers' minds
Creating brand meaning needs to include performance and imagery
Brand performance
Designing and delivery a product that fully satisfies consumer needs and wants is vital for successful marketing
Must meet or surpass expectations in order to create brand loyalty and resonance
Describes how well the product/service meets customers' functional needs
Primary ingredients and supplementary features
Product reliability, durability and serviceability
Service effectiveness, efficiency and empathy
Style and design
Price
Brand imagery
Depends on the extrinsic properties of the product/service
How the brand meets customers' psychological or social needs
Intangible aspects of the brand
User profiles
Purchase and usage situations
Personality and values
History, heritage and experiences
Step 3: Elicit proper customer responses (judgements, feelings)
Brand meaning helps produce brand responses, what customers think or feel about the brand
Brand judgements
Customers' overall evaluations of a brand and form the basis for brand choice
Brand attitudes depend on specific attributes and benefits of the brand
Perceived quality , customers value and satisfaction most impt
Brand credibility is the extent customers see the brand as credible in terms of perceived expertise, trustworthiness and likability
Brand consideration
Brand superiority
Brand feelings
Customers' emotional responses and reactions to the brand
Social currency evoked by the brand
Warmth
Fun
Excitement
Security
Social approval
Self-respect
Step 1: Identification of the brand
(salience)
Brand salience measures various aspects of awareness of the brand and how easily it is evoked under various situations
To what extent is it top of mind and easily recalled/recognised
Depth and breadth of awareness
Step 4: Convert responses to create loyalty relationships (resonance)
The ultimate relationship and level of identification that the customer has with the brand
Brand resonance is where customers feel they are 'in sync' with the brand
Intensity vs activity
Behavioural loyalty
Attitudinal attachment
Sense of community (identify with people using the brand)
Active engagement