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Brand MGT (C2 Customer-based brand Equity and Brand Positioning) - Coggle…
Brand MGT
(C2 Customer-based brand Equity and Brand Positioning)
Learning Objectives
2.1 Define customer-based brand equity
2.2 Outline the sources and outcomes of customer based
brand equity
2.3 Identify the four components of brand positioning
2.4 Describe the guidelines in developing a good brand
positioning
2.5 Explain brand mantras and how they should be
developed :
Customer-Based Brand Equity
Defining
Stresses power of a Brand lies - what resides in the minds & hearts of C
Differential effect - B knowledge has > C response > mkt of that B
Approaches B.E > perspective of consumer
Marketing Adv (Strong Brands)
Improved perceptions of product performance
Greater loyalty
Less vulnerability to competitive marketing actions
Less vulnerability to marketing crises
Larger margins
More inelastic consumer response to price increases
More elastic consumer response to price decreases
Greater trade cooperation and support
Increased marketing communication effectiveness
Possible licensing opportunities
Additional brand extension opportunities
Brand Equity as a Bridge
C knowledge drives the diff. that manifest themselves interms of brand equity:
Provides
marketers
w/ a vital strategic bridge from
their past > future
The B knowledge that marketers create over time dictates appropriate and inappropriate future directions for the B.
Making a B strong
B knowledge
From the perspective - the CBBE concept, B.K is the key to creat' B Equity:
[x] It creates the differential effect - drives B.E
Mkters need an insightful way to represent how B.K exist in C memory
The aasociative network memory model: Views memory as a network of nodes & connect' links:
[x] Nodes-- Rep stored info./ concepts
[x] Link--Rep the strength of association between the nodes
B associations are infomational nodes linked > B nodes in memory
B.K - 2 components:
Brand awareness:
Related > strength of the B node/trace in memory
Often a step in building B.E
Often come into play
Brand Image:
C perceptions - a B, as reflected ~B association held in
C memory
Sources of B.E
B. Awareness
Consist:
B recognition: C' ability - confirm prior exposure - B when given the B as a cue
B recall: C' ability - retrieve the B from memory when given:
[x] The Prod. category
[x] The needs fulfilled ~ the category /
[x] A purchase/ usage situation as a cue
Adv:
[x] Learning adv
[x] Consideration adv
[x] Choice adv:
~C purchase motivation
~C.P ability
~C.P opportunity
Anything that causes C to exp one of a B element can increase familiarity & awareness of that B element:
[x] Name, Symbol, logo, character, packaging/ slogan, inc ads' and promotion, sponsorship and event marketing, publicity & public relations & outdoor ads'
Repetition increases recognizability:
[x] But improv' B recall also req linkages in memory > product aspects
B Image
Once a sufficient lvl of B.Aw is created:
[x] Marketers can put more emhasis on craft' a B.I
Creating a +ve B.I
[x] Takes mkt' prog. that link strong, favorable, & unique associations > B in memory
B associations may be either B attributes/ benefits
Strength of B Associations
[x] More deeply a person thinks about product info' & relates it - existing B.K, stronger = brand association
Favorability of B. Asso
[x] is higher when a B possesses relevant attributes & benefits that satisfy C needs & wants
Uniqueness of B.Asso
[x] "Unique selling proposition" of the product
[x] provides B w/ sustainable competitive adv
Id' & Est' B Position'
Target Mkt
Mkt segmentation: Divides the mkt into distinct groups of homogeneous C who have similar needs & C behavior
Involves id' seg' bases & criteria: ~Criteria
identifiability
Size
Accessibility
Responsiveness
Nature of Competition
A competitive analysis considers an array of factors:
[x] Rerouces, capabilities & likely intentions of various other firms
[x] This competitive analysis helps mkters - choose mkt for their own Prod/S.
When choosing a mkt, mkter must consider
[x] Indirect Competition
[x] Multiple Frames reference
Basic Concepts
Brand Positioning:
[x] Act of designing the co.'s offer & image so that it occupies a distinct & valued place in the tgt C minds
[x] Finding the proper ' location' in the minds of C/ mkt segment
[x[ Allows C to think about a Prod/ S in the 'right' perspective
Points-of-Parity & Points-of-Difference
A mkter must arrive at the proper position':
~ This req est' the correct
PODs
Formally defined as attributes/ benefits that C strongly associate w/ a B
P-O-Parity asso:
Not necessarily unqiue > B but may be shared w/ ther B
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 > specify a brand’s category membership
• Product descriptor: – follows a brand name is often a very compact means of conveying category origin
• Choosing Points-of-Difference
A brand must offer a compelling and credible reason for
choosing it over the other options:
What attribute or benefit can serve as point-of-difference?
▪ Desirability criteria
▪ Deliverability criteria
▪ Differentiation criteria
• Establishing Points-of-Parity and Points-of-Difference
• The key to branding success is to establish both points-of-parity and points-of-difference
• At times, an inverse relationship between POP and POD may exist in the minds of consumers:
– Approaches to address the problem of negatively correlated POPs and PODs include:
▪ Separating the attributes
▪ Leveraging equity of another entity
▪ Redefining the relationship
• Straddle Positions
• Type of positioning where a company is able to straddle two frames of reference:
– With one set of points-of-difference and points-of-parity
– The points-of-difference in one category:
▪ Become points-of-parity in the other
▪ And vice-versa for points-of-parity
• Updating Position Overtime
• should be fundamentally changed very infrequently:
– And only when circumstances significantly reduce the effectiveness of existing POPs and PODs
• will evolve to better reflect market opportunities or challenges
• POD or POP may be refined, added, or dropped as situations dictate
• Laddering:
– Deepening the meaning of a brand to permit further expansion
– useful to explore underlying consumer motivations
• Reacting:
– Responding to competitive actions that threaten an existing positioning
– Competitive actions are often directed at eliminating points-of-difference to make them points-of-parity:
▪ Or to strengthen or establish new points-of-difference
• Developing a Good Positioning
Link Title
• A good positioning:
– Has a foot in the present and a foot in the future:
▪ aspirational - room to grow and improve
– Is careful to identify all relevant points-of-parity:
– Should reflect a consumer point of view in terms of the benefits that consumers derive from the brand
– Recognizes that a duality exists in the positioning of a brand:
▪ Rational and emotional components
Defining a Brand Mantra
• Brands may span multiple product categories and may have multiple distinct— related—positionings
• As brands evolve and expand across categories:
– Marketers will want to craft a brand mantra that reflects the essential heart and soul of the brand
Brand Mantra
• Short, three-to five-word phrase:
– Captures the irrefutable essence or spirit of the brand positioning
• Provides guidance about:
– What products to introduce under the brand
– What ad campaigns to run
– Where and how the brand should be sold
