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Customer Based Brand Equity & Brand Positioning - Coggle Diagram
Customer Based Brand Equity & Brand Positioning
Brand Equity Definition:
consumer's awareness of a brand
represents value of a brand
Sources of Brand Equity
Brand Image
Identifying & Establishing Brand Positioning
Points of Difference
Not necessarily unique to the brand but may be
shared with other brands
Points of Party
Defined as attributes or benefits that
consumers strongly associate with a brand
Positioning Guidelines
Establishing Points-of-Parity and Points-of-Difference
Approaches to address the problem of negatively
correlated POPs and PODs include:
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:
With one set of points-of-difference and points-of-parity
The points-of-difference in one category:
Become points-of-parity in the other
And vice-versa for points-of-parity
Choosing Points-of-Difference
A brand must offer a compelling and credible reason for
choosing it over the other options:
Updating Position Overtime
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:
Or to strengthen or establish new points-of-difference
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
Developing a Good Positioning
A good positioning:
Has a foot in the present and a foot in the future:
Needs to be somewhat aspirational so that the brand
has room to grow and improve
Is careful to identify all relevant points-of-parity:
Don’t 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:
Rational and emotional components
Basic Concepts
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
B2B Segmentation Bases
Nature of good
Buying condition
Demoraphic
Consumer Segmentation Bases
Psychographic
Behavioral
Geographic
Demographic
Market segmentation:
Divides the market into distinct groups of homogeneous consumers who have similar needs and consumer behavior
Involves identifying segmentation bases and criteria: Identifiability, Size, Accessibility, Responsiveness
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
Definition:
Consumers’ perceptions about a brand, as reflected
by the brand associations held in consumer memory
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:
The product category
The needs fulfilled by the category
A purchase or usage situation as a cue
Advantages
Learning advantages
Consideration advantages
Choice advantages
Consumer purchase ability
Consumer purchase opportunity
Consumer purchase motivation
Definition:
Related to the strength of the brand node or trace in memory
Often a step in building brand equity
Often come into play
Customer-Based Brand Equity Definition:
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