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Customer-based brand equity and brand positioning - Coggle Diagram
Customer-based brand equity and brand positioning
Definition:
Approaches brand equity from the perspective of the consumer
Stresses that the power of a brand lies in what resides in the minds and hearts of customers
Differential effect that brand knowledge has on consumer response to the marketing of that brand
Marketing advantages of strong bonds
Improved perceptions of product performance
Greater loyalty
Less vulnerability to competitive marketing actions
Brand equity as a bridge
Customer knowledge drives the differences that manifest themselves in brand equity
From perspective of CBBE concept, brand knowledge is key to creating brand equity
Marketers need an insightful way to represent how brand knowledge exists in consumer memory
Associative network memory links: Views memory as network of nodes and connecting links
Brand associations are informational nodes linked to brand node in memory
Brand knowledge has 2 components: Brand awareness and brand image
Sources of brand equity
Brand awareness
Advantages: Learning, consideration, choice
Anything that causes consumers to experience one of brand’s element can increase familiarity and awareness of that brand element
Repetition increases recognizability
Brand image
Once a sufficient level of brand awareness is created, marketers can put more emphasis on crafting a brand image
Creating positive brand image
Brand associations may either be brand attributes or benefits
Strength of brand associations: More deeply person thinks about product information and relates it to existing brand knowledge, stronger is resulting brand association
Favorability of brand associations: Higher when brand possesses relevant attributes and benefits that satisfy consumer needs and wants
Uniqueness of brand association: USP of product
Identifying and establishing brand positioning
Basic concepts
Brand positioning: Act of designing company’s offer and image so that it occupies distinct and valued place in target customers’ minds
Finding proper location in minds of consumers
Allows consumers to think about product or service in right perspective
Target market
Market segmentation: Divides market into distinct groups of homogeneous consumers who have similar needs and consumer behavior
Involves identifying segmentation bases and criteria
Consumer segmentation
Behavioral: User status, usage rate, etc
Demographic: Income, age, etc
Psychographic: Values, opinions, etc
Geographic: International, regional
Business-to-business segmentation bases
Nature of good: Kind, where used, etc
Buying condition: Purchase location, who buys, etc
Demographic: SIC code, number of employees, etc
Nature of competition
Competitive analysis considers array of factors: Resources, capabilities, etc
When choosing market, marketers must consider indirect competition and multiple frame references
Points of parity (POP): Not necessarily unique to brand but may be shared with other brand
E.g. of negatively correlated attributes and benefits
Low price vs high quality
Taste vs Low calories
Nutritious vs good tasting
Positioning guidelines
Defining and communicating the competitive frame of reference
Communicating category benefits: Marketers use product benefits to announce category membership
Exemplars: Well-known, noteworthy brands in a category can also be used as exemplars to specify brand’s category membership
Product descriptor: Product descriptor that follows brand name is often very compact means of conveying category origin
Choosing POD
Brand must offer compelling and credible reason for choosing it over other options
Establishing POP and POD
Key to branding success is to establish both POP and POD
At times, inverse relationship between POP and POD may exist in minds of consumers
Straddle positions
Type of positioning where company is able to straddle 2 frames of reference
Updating positions over time
Generally, positioning should be fundamentally changed infrequently
Yet, positioning will evolve to better reflect market opportunities or challenges
POP or POD may be refined, added, dropped as situation dictate
Laddering: Deepening the meaning of brand to permit further expansion
Reacting: Responding to competitive actions that threaten an existing positioning
Developing good positioning
Good positioning: Has foot in present and foot in future
Points of difference (POD): Attributes that consumers strongly associate with brand
Defining brand mantra
Brands may span multiple product categories and may have multiple distinct positioning
As brands evolve and expand across categories, marketers will want to craft brand mantra that reflect essential heart and soul of brand
Brand mantra
Short, 3-to-5-word phrase
Provides guidance about what products to introduce under brand, what ad campaigns to run, etc