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Customer-Based Brand Equity (CBBE) and Brand Positioning - Coggle Diagram
Customer-Based Brand Equity (CBBE) and Brand Positioning
Definition of Customer-Based Brand Equity
It lets marketers gain succession for their brands through the
importance of understanding what customers have in their mind and what they wish to see in a brand.
Customer based brand equity act as a
bridge
for maketers
By understanding how a customers are convinced by a brand (Customer Knowledge), it provides marketers
useful information of the appropriate and inappropriate future directions for the brand.
CBBE helps make a
brand stronger
through Brand Knowledge
2 Components of Brand Knowledge
Brand Awareness
Relating to the strength of the brand trace in the memory of consumers.
Brand Image
Relating to consumers' perception of a brand, how they are able to associate a brand within their memory.
Brand knowledge to create the differential effect that drives brand equity
Marketers need to understand how brand knowledge exists in consumer memory by referring to consumers' understanding and recall of a brand.
Views memory as a network of nodes and connecting links
Nodes
Brand associations are informational nodes linked to the brand node in memory
Links
Sources of Brand Equity
Brand Image
Marketers should put more emphasis on crafting a brand image, once brand awareness is created
It is important that marketers create a positive brand image to create
strong, favourable and unique associations to the brand in the memory
Uniqueness of Brand Associations
Unique Selling Proposition
of the product
Favorability of Brand Associations
When a brand possess
relevant attributes and benefits that satisfy consumer needs and wants
Strength of Brand Associations
The depth of how a person thinks about
product information and relates it to existing brand knowledge
Brand Image can be:
Brand attributes
Brand Benefits
Brand Awareness
Brand Recognition
Consumer's ability to
recognise a 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 / usage situation
as a cue
Advantages of Brand Awareness
Learning advantages
Consideration advantages
Choice advantages
Consumer purchase motivation
Consumer purchase ability
Consumer purchase opportunity
How to increase Brand Awareness
Anything that causes consumers to
experience
one of a brand's element can increase familiarity and awareness of that brand element
Brand element includes Name, Symbol, Logo, Character, Packaging, Slogan etc
Reputation of a brand
will have the tendency to increase recognizability of itself
Identifying and Establishing Brand Positioning
Definition of Brand positioning
Act of designing the company's offer and image 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
Target Market
Market Segmentation: The division of market into distinct groups of homogeneous consumers who have similar needs and consumer behaviour
Consumer Segmentation Bases
Behavioural
Psychographic
Geographic
Demographic
Business-to-Business Segmentation Bases
Nature of Good
Buying Condition
Demographic
Nature of Competition
Factors considered by a competitive analysis includes: Resources, Capability and intentions of various other firms
Helps marketers to choose markets for their own products or service
When Choosing a market, marketers must consider:
Indirect Competition
Multiple frames reference
A marketer must arrive at the proper positioning by establishing the
correct associations of two components
, which are:
Points of Difference (POD)
Attributes / 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
Positioning Guidelines
Defining and Communicating the Competitive Frame of Reference
Communicating category benefits
Using brands as Exemplars to specify a brand's category membership
Conveying category origin by means of product descriptor
Choosing Points of Difference (POD)
Offering compelling and credible reason for choosing a brand over another through
Desirability Criteria
Deliverability Criteria
Differentiation Criteria
Establishing Points of Parity and Points of Difference
Approaches to address the problem of negatively correlated POP and POD includes:
Separating the attributes
Leveraging equity of another entity
Redefining the relationship
Straddle Positions
The ability for a company to straddle two frames of reference:
With one set of POD and POP
The POD in one category:
Become POP in the other
Vice Versa for POP
Updating Positions 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 existing positioning
Developing a Good Positioning
Good positioning:
Has a foot both in the present and future; brand has room to grow and improve
Is careful to identify all relevant POP
Should reflect a consumer point of view in terms of benefits that they derive from the brand
Recognizes that a duality exists in the positioning of a brand; Rational and Emotional Components
Defining a Brand Mantra
Brand Mantra reflects the essential hearts and soul of the brand
It can be short 3-5 word phrase which helps captures the irrefutable essence or spirit of the brand positioning
Should provide guidance about:
What products to introduce under the brand
What ad campaigns to run
Where and how the brand should be sold