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Chapter 2: Customer-Based Brand Equity & Brand Positioning - Coggle…
Chapter 2:
Customer-Based Brand Equity & Brand Positioning
1. Customer-Based Brand Equity
Traditionally built via word-of-mouth recommendation
Today, social media, online advertising and customer experience have enhanced the potential for reaching customers on a more personal, emotional level and creating a relationship with them
The value of a brand, based on what customers feel about and think about it
2. Sources of Customer-Based Brand Equity
a. Brand Awareness
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
Advantages of Brand Awareness
Learning Advantages
Consideration Advantages
Choices advantages:
i. Consumer purchase ability
ii. Consumer purchase motivation
iii. Consumer purchase opportunity
Brand Recognition
Consumers' ability to confirm prior to exposure to the brand when given the brand as a cue
Increase familiarity and awareness of the brand element
Name, symbol, logo, character, packaging, or slogan, including advertising and promotion, sponsorship and event marketing, publicity and public relations, and outdoor advertising
Repetition increases recognizability
However, improving brand recall also requires linkages in memory to product aspects
b. 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, favourable 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 BA
Favourability of Brand Associations
Higher when a brand possesses relevant attributes and benefits that satisfy consumer needs and wants
5. Brand Mantras
Brands may span multiple product categories and may have multiple distinct yet related positioning
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 that captures the irrefutable essence of spirit of the brand positioning
Provides guidance about:
i. What products to introduce under the brand
ii. What ad campaigns to run
iii. Where and how the brand should be sold
3. Components of Brand Positioning
b. Target Market
Market Segmentation
Divides the market into different groups of homogeneous consumers who have similar needs and behaviour
Involves identifying segmentation bases and criteria such as identifiability, size, accessibility and responsiveness
a. Basic Concepts
Allows consumers to think about a product/service in the "right" perspective
Finding the proper "location" in the minds of consumers or market segment
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
c. Nature of Competition
A competitive analysis considers an array of factors:
Resources, capabilities, and likely intentions of various other firms
This analysis helps marketers to choose markets for their own products/services
When choosing a market, marketers must consider:
Indirect competition
Multiple frames
d. Points of Parity & Points of Difference
A marketer must arrive at the proper positioning which requires establishing the correct points-of-difference and points-of-parity associations
Points-of-difference (PODs):
Formally defined as attributes or benefits that consumers strongly associate with a brand
Points-of-parity (POP):
Not necessarily unique to the brand but may be shared with other brands
4. Guidelines in Developing a Good Brand Positioning
b. Choosing POD
A brand must offer a compelling and credible reason for choosing it over the other options:
What attribute of benefit can serve as POD?
i. Desirability criteria
ii. Deliverability criteria
iii. Differentiation criteria
c. Establishing POP & POD
The key to branding success is
to establish both POP and POD
Sometimes, an inverse relationship between POP and POD may exist in the minds of consumers, such as approaches to address the issue of negatively correlated POPs and PODs include:
Separating the attributes
Leveraging equity of another entity
Redefining the relationship
d. Straddle Positions
Type of positioning where a company is able to straddle two frames of reference:
With one set of POD and POP
The POD in one category (become POP in the other and vice versa for POP)
e. Updating Position Overtime
Laddering:
Deepening the meaning of a brand to permit further expansion which is often useful to explore underlying consumer motivations
Reacting:
Responding to competitive actions that threaten an existing positioning. Such actions are often directed at eliminating POD to make them POP or to strengthen/establish new POD
In general, positing should be fundamentally changed very infrequently, and only when circumstances significantly reduce the effectiveness of existing POPs and PODs
a. Defining & 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 be used as exemplars to specify a brand's category membership
Product descriptor:
Following a brand name with a product descriptor is generally a very efficient way of conveying category origin
f. Developing a Good Positioning
Has a foot in the present and a foot in the future
. It needs to be somewhat aspirational so that the brand has room to grow and improve
Careful to identify all relevant POP.
Do not overlook or ignore crucial areas where the brand is potentially disadvantaged.
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
which are rational and emotional components