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Customer-Based Brand Equity and Brand Positioning - Coggle Diagram
Customer-Based Brand Equity and Brand Positioning
Customer-Based Brand Equity
Approaches brand equity from the perspective of the consumer
Brand Equity as a Bridge
Customer knowledge drives the differences that manifest themselves in terms of brand equity
Provides marketers with a vital strategic bridge from their past to their future
The brand knowledge that marketers create over time dictates appropriate and inappropriate future directions for the brand
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
Sources of Brand Equity
Brand Awareness
Brand Recognition- Consumer’s ability to confirm prior exposure to the brand when given the brand as a cue
Brand Recall - Consumers’ ability to retrieve the brand from
memory when given (1) Product (2) Needs Fulfilled (3) Purchase or Usage situation
Advantages
(1) Learning advantages
(2) Consideration advantages
(3) Choices advantages
(1) Consumer purchase motivation (2) Consumer purchase ability (3) Consumer purchase opportunity
Experience one of a brand’s element can increase familiarity and awareness of that brand element
Name, symbol, logo, character, packaging, or slogan
advertising and promotion, sponsorship and event marketing, publicity and public relations, and outdoor advertising
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 a positive brand image - Takes marketing programs that link strong, favorable,
and unique associations to the brand in memory
Brand associations may be either brand attributes or benefits
Strength of Brand Associations - More deeply a person thinks about product information and relates it to existing brand knowledge, stronger is the resulting brand association
Favorability of Brand Associations - Is higher when a brand possesses relevant attributes
and benefits that satisfy consumer needs and wants
Uniqueness of Brand Associations -
(1) “Unique selling proposition” of the product
(2)Provides brands with sustainable competitive advantage
Identifying and Establishing Brand Positioning
Basic Concepts
Brand positioning
Act of designing the company’s offer and image so that it occupies a distinct and valued place in the target customers’ minds
Finding the proper “location” in the minds of consumers or market segment
Allows consumers to think about a product or service in the “right” perspective
Target Market
Market segmentation
Consumer Segmentation Bases
Behavioral
Demographic
Psychographic
Geographic
Business-to-Business Segmentation Bases
Nature of Good
Buying Condition
Demographic
Nature of Competition
A competitive analysis considers an array of factors
Resources, capabilities, and likely intentions of various
other firms
This competitive analysis helps marketers to choose markets for their own products or services
When choosing a market, marketers must consider
Indirect competition
Multiple frames reference
Points-of-Parity and Points-of-Difference
Points-of-difference (PODs)
Formally defined as attributes or benefits that consumers strongly associate with a brand
Points-of-parity associations
Not necessarily unique to the brand but may be
shared with other brands
Making a Brand Strong: Brand Knowledge
The associative network memory model
Views memory as a network of nodes and connecting
links
Nodes—Represent stored information or concepts
Links—Represent the strength of association between the nodes
(1) Brand awareness (2) Brand image
Position 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 a brand’s category membership
Product descriptor, Product descriptor that 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, (1) Desirability criteria (2) Deliverability criteria (3) 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, (1) Separating the attributes (2) Leveraging equity of another entity (3) 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, (1) Become points-of-parity in the other (2) And vice-versa for points-of-parity
Updating Position Overtime
Generally, positioning should be fundamentally changed
very infrequently
Yet, positioning 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, Often 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.
Developing a Good Positioning
A good positioning
Has a foot in the present and a foot in the future
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
Defining a Brand Mantra
Brands may span multiple product categories and may have multiple distinct—yet 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
Short, three-to five-word phrase, Captures the irrefutable essence or spirit of the brand
positioning
Provides guidance about, (1) What products to introduce under the brand (2) What ad campaigns to run (3) Where and how the brand should be sold