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Customer Based Brand Equity & Brand Positioning - Coggle Diagram
Customer Based Brand Equity & Brand Positioning
Customer Based Brand Equity
What us Customer Based Brand Equity?
Approached in the perspective of the customer
The power of the brand lies within the minds and hearts of the consumer
Differential effect that knowledge on the brand can effect the response to the marketing of the band
Marketing Advantages of Strong Brands
Greater loyalty
eg: Apple, Samsung
Less vulnerable to competitive marketing actions
Eg: Pepsi, Coca-Cola, DC Comics, Marvel
Possible licensing oppurtunities
eg: Samsung Display Panels
Brand Equity as a Bridge
Customer Knowledge
Provides marketers a way to compare their past and current and future marketing strategies
The knowledge marketers give to consumers can impact the future direction the brand can go to
Making a strong Brand
`Brand Knowledge
According to the CBBE concept Brand knowledge is the key to brand equity
Marketers need a good way to represent the customers knowledge on the brand in the customers memory.
Eg: TESLA car Models are named to spell out SEXY
Has two components
Brand Awareness
The strength of the node in the memory
a step when building brand equity
has two components
Brand recognition
the consumers ability to remember any info or past experience with the brand when given a prompt or the brand a cue
Brand recall
The ability for the customer to remember/ retrieve the information from memory when
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Advantages:
Learning advantage
Consideration Advantage
Choice Advantage
Consumer purchase motivation
Consumer Purchase Ability
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Brand image
The customers perception about a brand which is reflected by the brand associations held in the customer's memory
After Brand Awareness is Created
Marketers can put more effort in creating a brand image
Create a positive Brand Image
Brand Associations
Stregth of Brand Associations
The more someone thinks of the product information and relates it to existing knowledge of the brand , can strengthen the resulting Brand Association
Favourability of Brand Associations
Higher Favourability when the brand possesses relevant attribute and benefit that can satisfy the want and need of the consumer
Uniqueness of Brand Associations
How unique is the Brand
Provides the brand with a sustainable competitive advantage
The Associative network memory Model
What is it?
Views memory as a network of nodes and connecting links, in which nodes represent stored information and links being the strength of association between the nodes.
Eg: Two Golden arches has a strong connection to McDonalds
Brand Positioning
What is brand positioning?
According to Kotler Brand positioning is defined as “the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market.”
Target Market
What is Target Market
The division of the market into distinct groups of consumers who share similar wants and behaviours
Consumer Segmentation Bases
Behavioural
User Status
Brand Loyalty
Usage Rate
Demographic
Income
Age
Sex
Race
Psychographic
Values
Lifestyle
Geographic
International
Geographic
B2B Segmentation Bases
Nature of Good
what kind
where used
Type of Buy
Buying Condition
Purchase Location
Who buys
Type of buy
Demographic
SIC Code
No. of employees
Annual establishments
no. of locations
Criteria to identify consumers into segments:
Identifiability
Size
Acessibility
Responsiveness
Nature Of Competition
Factors considered in a competitive analysis
Company resources
Capabilities
Competitor strategies
competitive analysis helps marketers to decide in which markets are easier to penetrate and target their products towards
What to Consider when choosing a market?
Indirect competition
Multiple frames of references
Points of Parity & Points of difference
Points of Parity
Attributes and Benefits that consumers strongly associate with a brand
eg:Apple and the apple ecosystem
Points of Difference
does not necessarily have to be unique to the brand but may be
shared with other brands
Positioning Guidelines
1.Define and Communicating the competitive Frame of reference
Communicate category benefits
Marketers use product benefits to announce category
memberships
eg. gym memberships
Exemplars
Noteworthy brands in the same category can be used to specify a brands category membership
Product Descriptor
the product descriptor that follows to brand is a compact way of conveying category origin
2.Choose the point of Difference
The brand must offer a compelling and credible reasons for consumers to choose the product over its competitors
Attributes that can serve as as a point of difference
Desirability Criteria
Deliverability Criteria
Differentiation Criteria
Establish both points of parity and points of difference
Address problems negatively correlate to POP & POD
Sepparate the attributes of each POD & POP
Leveraging the equity of another entity
Redefine the relationsips
Straddle Positions
is a type of positioning where the company can straddle two different frames of references
one set of of POD' s and POP's
the POD's in one category
becme points of parity f the other
and Vice Versa for the POP's
5.Update position overtime
the positioning should not be changed too frequently
except when the circumstances significantly reduce the current Existing POPs and PODs
but will evolve to reflect current market opportunities and challenges
the POPs and PODs can be refined, added upon, and dropped depending on current situations
Laddering
Deepening the meaning of the brand to allow for further expansion of the company
often useful to explore enderlying consumer motivations on the product
Reacting
Respond to a competitors actions which can threaten an existing positioning
competitive actions often directed to eliminate PODs to turn them into PODs
or to establish new PODs
6.Develop good positioning
brand positioning should have a grasp on current positioning as well as future oppurtunities
so the company has room to both grow and improve
careful to identify all Relevant POPs
Don’t overlook or ignore crucial areas where the brand is potentially disadvantaged
Should take into consideration of the consumer point of view on the benefits that can be obtained by the brand
Recognizes that a duality exists in the positioning
Rational
Emotional
Brand Mantra
Defining a Brand Mantra
Brands may span multiple product categories with multiple yet related positioning
brands will evolve and expand across categories
Marketers will want to craft a brand mantra that
reflects the essential heart and soul of the brand
Should be a short 4-5 word phrase
but should capture the true essence and spirit of the brand unequivickaly
Provides guidance on
What products which could be introduced under the brand
A bad example of this is when Colgate tried to roll out a microwaveable food
what ad campaigns to run
Where and how the brand should be sold