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Customer-Based Brand Equity (CBBE) & Brand Positioning - Coggle Diagram
Customer-Based Brand Equity (CBBE) & Brand Positioning
CBBE
value of brand based on customers' perception
demonstrates the power of a customer's attitude can lead to success or failure of brand
1. Brand loyalty
– Reduced marketing costs (hanging on to loyal customers is cheaper than charming potential new customers)
– Trade leverage (loyal customers represent a stable source of revenue for the distributive trade)
– Attracting new customers (current customers can help boost name awareness and hence bring in new customers)
– Time to respond to competitive threats (loyal customers that are not quick to switch brands give a company more time to respond to competitive threats)
2. Brand Awareness
– Anchor to which associations can be attached (depending on the strength of the brand name, more or fewer associations can be attached to it, which will, in turn, eventually influence brand awareness)
– Familiarity and liking (consumers with a positive attitude towards a brand, will talk about it more and spread brand awareness)
– Signal of substance/ commitment to a brand.
– Brand to be considered during the purchasing process (to what extent does the brand form part of the evoked set of brands in a consumer’s mind)
3. Perceived Quality
– quality offered by the product/ brand is a reason to buy it
– Level of differentiation/ position in relation to competing brands
– Price (as the product becomes more complex to assess, and status is at play, consumers tend to take price as a quality indicator)
– Availability in different sales channels (consumers have a higher quality perception of brands that are widely available)
– number of line/ brand extensions (this can tell the consumer the brand stands for a certain quality guarantee that is applicable on a wide scale)
4. Brand Association
– extent to which a brand name is able to ‘retrieve’ associations from the consumer’s brain (such information from TV advertising)
– extent to which association contribute to brand differentiation in relation to the competition (these can be abstract associations, such as ‘vitality’, or associations with concrete product benefits, such ‘will leave your washing cleaner’)
– extent to which brand associations play a role in the buying process (the greater this extent, the higher the total brand equity)
– extent to which brand associations create positive attitude/ feelings (the greater this extent, the higher the total brand equity)
– number of brand extensions in the market (the greater this number, the greater the opportunity to add brand associations)
5. Other Proprietary assets
e.g patents and intellectual property rights, relations with trade partners, and airlines’ landing slots (the more proprietary rights a brand has accumulated, the greater the brand’s competitive edge in those fields)
Brand Positioning
how your brand's vision, product, and identity are strategically positioned in a market saturated with other companies
1. Market differentiation:
Showing uniqueness of product in any industry creates a major advantage. Using brand positioning to celebrate how your product solves a particular problem or need differently than your competitors, customers will take notice.
2. Easy purchase decisions:
By clearly defining product and how it can benefit customer, it takes the guesswork out of the purchase process. When customers are provided with the answers to questions they are asking, they will be quicker to trust and buy.
3. Value confirmation:
A strong brand doesn’t have to rely on pricing wars with competitors. Instead, great brand positions establish the high value of their product, making customers want to buy it no matter what (even if it isn’t the cheapest on the market),
4. Magnified messaging:
A clear brand positioning statement gives a springboard for compelling creative storytelling. By having a concrete vision, it can elevate each additional piece of marketing to further solidify your place among the competition.