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CH2: Customer-based brand equity and brand positioning - Coggle Diagram
CH2: Customer-based brand equity and brand positioning
Brand positioning
WHAT?
Act of designing company's image/offer to occupy valued place in customer's mind (finding proper location in consumers minds
Target market
Market segmentation: Divide market into distinct groups of homogenous consumers of same needs and behavior
Identifying
Criteria (ISAR): Identifiability, Size, Accessibility, Responsiveness
Segmentation bases:
Consumer seg. bases (Behavioral, Demo, Psycho, Geo
B2B seg.bases (Demo, nature of good, buying condition)
Positioning guidelines
Choose POD
Benefit that serve as POD: 3D criteria (Desirability, Deliverability, Differentiation criteria
Define and communication competitive frame of reference
Communicating category benefits: use product benefit to announce category membership
Exemplars: Well known brands in a category are used as exemplars to specify brand's category membership
Product descriptor following a brand name is often a very compact means of conveying category origin
Establish POP and POD
Approaches to address problems of negative correlation
Leveraging equity of another entity
Redefining relationship
Separating attributes
Straddle position into 2 frames of reference
The POD in one category (become POP in the other and vice versa for POP)
With one set of POP and POD
Updating positions over time
Laddering: Deepen brand meaning for expansion, useful to explore consumer motivation
Reacting: Respond to competitive action that threatens existing positioning. i.e often directed to eliminate POD to make them POP OR to establish new POD
Developing good positioning
Has foot in present and foot in future (must be aspirational for brand to grow and improve
Careful to identify all relevant POP (don't ignore areas where brand is disadvantaged)
Reflect consumer pov in terms of benefit that they receive
Recognize that duality exist (Rational and emotional component)
Defining brand mantra
Short, three to five word phase (capture irrefutable spirit of brand positioning
Provide guidance about what product to introduce under tha brand, what ad campaigns to run, where and how the brand should be sold
Customer-based brand equity
WHAT?
Power of brand lies in what resides in the minds and hearts of customers. Also proves the effect that brand knowledge has on consumer response to the marketing of that brand
Marketing adv of strong brands
Greater loyalty, improved perception of product performance, larger margins, licensing opportunities, brand extension opportunities
Making a brand strong: Brand knowledge
Associative network model: Nodes(stored info/concepts) & Links(strength of assoc. between nodes). Brand associations are informational nodes linked to the
brand node in memory
Components
Brand awareness: Related to the strength of the brand node or trace in
memory
Brand image: Consumers' perception of a brand
Brand knowledge create brand equity
Sources of brand equity
Brand image: More awareness=stronger brand image
Brand association
The more someone thinks about product info and relate with existing brand knowledge, the stronger the brand association
It is high when the brand possess benefits that satisfy customers
USP of the product provide brands with sustainable competitive adv
Brand awareness: Brand recognition and brand recall
Learning, consideration, choice advantages
Brand's elements increase familiarity and awareness i.e name, logo, slogan
Nature of competition
Helps marketers to choose market of their product/service. It considers factors i.e resources, capabilities and intention of other firms
When choosing market, they must consider indirect competition and multiple frames reference
Points of difference (POD): Not necessarily unique to the brand but may be
shared with other brands
Points of parity (POP): Formally defined as attributes or benefits that
consumers strongly associate with a brand