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CUSTOMER-BASED BRAND EQUITY (CBBE) & BRAND POSITIONING (BP) -…
CUSTOMER-BASED BRAND EQUITY (CBBE)
&
BRAND POSITIONING (BP)
CBBE
Power (success) of a brand lies on consumers' attitudes.
Consumers' perspective towards a brand.
Consumers' POV
Positive reaction
Favourable reaction
BRAND EQUITY:
Value of a brand has that is based on the level name recognition.
EXAMPLE
: Apple or Starbucks are a well-known brands thus both brand have
high brand equity
.
STRONG BRAND:
Presence of brand knowledge
Marketers need to understand how they can create brand knowledge that exists in consumers' mind.
2 SOURCES
i) BRAND AWARENESS
Measuring the familiarity of a brand amongst its targeted audiences.
1) Memorability of the brand.
2) Recognizability of the brand.
ii) BRAND IMAGE
Consumers' perceptions about the brand.
Basically how the marketers want the brand to be received by the targeted audiences.
Helps to understand the appropriate and inappropriate actions taken in the future for the brand.
BP
1) BASIC CONCEPT
A strategy that sets the brand or business apart from other brand.
2) TARGET MARKET
A target market is a group of potential customers that you identify to sell products or services to.
Different customers may also similar needs or similar consumer behaviors!
4 MAIN SEGMENTATION
BEHAVIORAL
PSYCHOGRAPHIC
GEOGRAPHICAL**
DEMOGRAPHIC
3) NATURE OF COMPETITION
A competitive analysis.
EXAMPLE:
Deciding (targeting) specific consumers for your products may lead to the ability to define you competition.
4) POINTS OF PARITY (POP) AND POINT OF DIFFERENCE (POD)
POD
Attributes or benefits that consumers
STRONGLY
associate with a brand. At which, no brand couldn't be find to have the same extent of the preferred brand.
POP
Not necessarily unique to the brand but it can be shared with other brand.
POSITIONING GUIDELINES
Defining and Communicating the Competitive
Frame of Reference.
Communicating category benefits:
Marketers use product benefits to announce category membership.
Exemplars:
A well-known or noteworthy brand that can be and exemplars in order to specify brand's category membership.
Product descriptor:
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:
Desirability criteria
Deliverability criteria
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.
An inverse relationship between POP and POD
may exist in the minds of consumers
Approaches to solve the problems:
Separating the attributes
Leveraging equity of another entity
Redefining the relationship
Straddle Positions.
Type of positioning where a company is able to straddle two frames of reference.
Updating Positions over Time.
Positioning should be fundamentally changed very infrequently
(only when circumstances significantly reduce the effectiveness of existing POPs and PODs).
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
(to strengthen or establish new points-of-difference)
.
Developing a Good Positioning.
Has a foot in the present and a foot in the future (room to grow and improve).
Careful to identify all relevant points-of-parity (don't ignore or overlook crucial areas that can be disadvantaged to your brand).
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 (Rational and emotional components).
Brand Mantra
Company's primary positioning and stake-in-the-ground message.
- Reflects the essential heart and soul of the brand.
MUST BE:
Short, three-to five-word phrase.
Provide information (guidance):
What products to introduce under the brand.
What ad campaigns to run.
Where and how the brand should be sold.
i) BRAND AWARENESS
1) BRAND RECOGNITION
Ability for consumer to remember the brand that reflected form consumers' past exposure towards the brand.
EXTRA NOTES:
similarly like brand recall (aided brand recall).
EXAMPLE:
Product name can be associated with certain logo, tagline and etc.
2) BRAND RECALL
Brand name is evoked by memory when given a specific category of the brand.
EXAMPLE:
Coffee - Starbucks or Clothing - Abercrombie & Fitch
INCREASING FAMILIARITY OF A BRAND BY:
1) Letting consumers to experience one of the brand element.
EXAMPLE:
Slogan, packaging, logo, symbol and many more.
2) Increasing recognisability of a brand by brand repetition.
This is where product aspects play important role in improving
Brand recall.
THE ADVANTAGES
Learning
Choice
Consumer purchase based on motivation, ability and opportunity
Consideration
ii) BRAND IMAGE:
Occurs once brand awareness created.
This is when marketer put emphasis on creating a brand image that have positive criteria.
These includes:
1) Strong
2) Unique
3) Favorable
As such this 3 positive criteria of brand image will leads to
BRAND ASSOCIATION - leads to brand being remembered by its attributes or benefits.
FAVORABILITY
Increase once the the attributes and benefits of the brand met the needs and wants of the consumers.
UNIQUENESS
presence of competitive advantages (USP).
STRENGTH
The more deeply a person thinks about product information and relates it to existing brand knowledge, the stronger the resulting brand associations will be.