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CH2 : Customer-Based Brand Equity aBrand Positioning - Coggle Diagram
CH2 : Customer-Based Brand Equity aBrand Positioning
Customer- Based Brand Equity
The differential effect that brand knowledge has on customer response to the marketing of that brand
(+) Positive customer-based brand equity: when customers react more favorably to a product and the way it is marketed when the brand is identified than when it is not
(-) Negative customer-based brand equity: when customers react less favorably to marketing activity for the brand compared with an unnamed or fictitiously named version of the product.
3 Key Ingredients: 1. Differential Effect 2. Brand Knowledge 3.Customer Response to Marketing
Sources of Brand Equity: 1. Brand Awareness -
Brand Recognition
: consumers’ 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 the product
category, the needs fulfilled by the category, or a purchase or usage situation as a cue.
Sources of Brand Equity: 2. Brand Image -
Brand attributes
are those descriptive features that characterize a product or service.
Brand benefits
are the personal value and meaning that consumers attach to the product
or service attributes
Brand Positioning
Basic Concepts
Marketers need to know (1) who the target consumer is, (2) who the main competitors are, (3) how the brand is similar to these competitors, and (4) how the brand is different from them.
Target Market
Market segmentation
divides the market into distinct groups of homogeneous consumers who have similar needs and consumer behavior, and who thus require similar marketing programs and tactics.
Nature of Competition
Indirect Competition
: Competition often occurs at the benefit level rather than the attribute level.
Multiple Frames of Reference
: A brand to identify more than one frame of reference. This may be the result of broader category competition or the intended future growth of a brand, or it can occur when the same function can be performed by different types of products.
Points-of-parity(PoP) & Points-of-difference (PoD)
Points-of-parity(PoP)
Not necessarily unique to the brand but may, in fact, be shared with other brands. There are three
types: 1. category, 2. competitive, and 3. correlational.
Points-of-difference (PoD)
Attributes or benefits that consumers strongly associate with a brand, positively evaluate, and
believe that they could not find to the same extent with a competitive brand.
Brand Mantra
Brand Mantra: Provide guidance about what products to introduce under the brand, what ad campaigns to run, and where and how the brand should be sold. *Designed to capture the brand’s points-of-difference, what is unique about the brand.
Designing a Brand Mantra: 1. Brand function 2. Descriptive modifier 3. Emotional modifier
Implementing a Brand Mantra: 1. Communicate 2. Simplify 3. Inspire
Positioning Guidelines
Define and communicate the frame of reference
Communicating Category Benefits: Use benefits to announce category to reassure consumers that a brand will deliver on the
fundamental reason for using a category
Exemplars: Brands that are noteworthy in a category can be used as exemplars to
specify a brand’s membership in a category
Product Descriptor: If many firms engage in category-building tactics, the result may even be consumer confusion so it is important to place an accurate description to convey the category
Choosing PoDs
Desirability Criteria
Deliverability Criteria
Differentiation Criteria
Establish PoP and PoD
Separate the Attributes
Leverage Equity of Another Entity
Redefine the Relationship
Straddle Positions
The points-of-difference in one category become points-of-parity in the other and vice versa.
Update Positioning over time
Laddering: laddering repeatedly asks what the implication of an attribute or benefit is for the consumer