Brand Image, Identity

Customer-Based Customer-Based Brand EquityBrand Equity

-Namrata Jajoo-Namrata Jajoo

CBBECBBE

The power of a brand lies in what The power of a brand lies in what customers have learnt, felt, seen and customers have learnt, felt, seen and heard about the brand as a result of heard about the brand as a result of their experiences over time.their experiences over time.

THE POWER OF THE BRAND LIES IN THE POWER OF THE BRAND LIES IN WHAT RESIDES IN THE MINDS OF WHAT RESIDES IN THE MINDS OF THE CUSTOMERS.THE CUSTOMERS.

CBBECBBE

Consumer’s perceptions of the Consumer’s perceptions of the performance of a product are highly performance of a product are highly dependent on their impressions of the dependent on their impressions of the brand that goes with it;brand that goes with it;

- Clothes may seem to fit betterClothes may seem to fit better- Cars may seem to drive more Cars may seem to drive more

smoothlysmoothly- Wait in a bank line may seem Wait in a bank line may seem

shorter…shorter…

CBBE DefinedCBBE Defined

CBBE is the differential effect that CBBE is the differential effect that brand knowledge has on customer brand knowledge has on customer response to the marketing of that response to the marketing of that brand.brand.

CBBE may be positive or negative.CBBE may be positive or negative.

Brand equity as a bridgeBrand equity as a bridge

Brand equity provides marketers with Brand equity provides marketers with a vital strategic bridge from their past a vital strategic bridge from their past to their future.to their future.

- Brands as reflection of the pastBrands as reflection of the past

Quality of the investment in brand Quality of the investment in brand building is more critical than the building is more critical than the quantity.quantity.

- Brands as direction of the futureBrands as direction of the future

True value and future prospects of a True value and future prospects of a brand rest with the consumerbrand rest with the consumer

CriticismCriticism

In her book ‘No Logo: Taking aim at the In her book ‘No Logo: Taking aim at the brand bullies’, Naomi Klein observes that brand bullies’, Naomi Klein observes that as companies seek to reduce costs, they as companies seek to reduce costs, they often divest their manufacturing often divest their manufacturing operations and outsource production. operations and outsource production.

Co.’s thus shifting from a production Co.’s thus shifting from a production model to a marketing model are model to a marketing model are basically producing brands and nothing basically producing brands and nothing else.else.

Customer equityCustomer equity

Blattberg and Deighton define Blattberg and Deighton define customer equity in terms of the customer equity in terms of the optimal balance between what is optimal balance between what is spent on customer acquisition versus spent on customer acquisition versus what is spent on customer retention.what is spent on customer retention.

It is the total asset value of the It is the total asset value of the relationships which an organization relationships which an organization has with its has with its customers.customers.

Sources of Brand EquitySources of Brand Equity

For Brand Equity to be created, For Brand Equity to be created, consumers must be convinced that consumers must be convinced that there are meaningful differences there are meaningful differences among brands in the product or among brands in the product or service category.service category.

Brand KnowledgeBrand Knowledge

The The associative network modelassociative network model views memory as consisting of a views memory as consisting of a network of nodes and connecting network of nodes and connecting links, in which nodes represent links, in which nodes represent stored information or concepts stored information or concepts and links represent the strength and links represent the strength of association between this of association between this information or concepts.information or concepts.

Brand KnowledgeBrand Knowledge

Brand knowledge is conceptualised Brand knowledge is conceptualised as consisting of a brand node in as consisting of a brand node in memory with a variety of memory with a variety of associations linked to it.associations linked to it.

It has 2 components;It has 2 components;- Brand AwarenessBrand Awareness- Brand ImageBrand Image

Brand AwarenessBrand Awareness

Brand Awareness is related to the Brand Awareness is related to the strength of the brand node, as strength of the brand node, as reflected by consumer’s ability to reflected by consumer’s ability to identify the brand under different identify the brand under different conditions.conditions.

Brand AwarenessBrand Awareness

Brand Awareness consists of:Brand Awareness consists of:- Brand recognition (when given the Brand recognition (when given the

brand as cue)brand as cue)- Brand recall (when given the product Brand recall (when given the product

category, needs fulfilled by the category, needs fulfilled by the category, or a purchase or usage category, or a purchase or usage situation)situation)

Consequences of Brand Consequences of Brand AwarenessAwareness

Learning AdvantagesLearning Advantages (establishing of (establishing of brand node in memory)brand node in memory)

Consideration AdvantagesConsideration Advantages (Brand will (Brand will be member of consumer’s be member of consumer’s consideration set)consideration set)

Choice AdvantagesChoice Advantages (In low (In low involvement situations – lack of involvement situations – lack of purchase motivation or purchase purchase motivation or purchase ability. Elaboration-Likelihood model)ability. Elaboration-Likelihood model)

Petty and Cacioppo’s Petty and Cacioppo’s Elaboration – Likelihood ModelElaboration – Likelihood Model

- Central route to Peripheral route - Central route to Peripheral route to persuasionto persuasion persuasionpersuasion

If she uses it,If she uses it,

it must be really it must be really good!good!

Establishing Brand Establishing Brand AwarenessAwareness

Through repeated exposure Through repeated exposure (increases brand recognition)(increases brand recognition)

Linkage in memory to appropriate Linkage in memory to appropriate product categories / situational product categories / situational purchase / consumption cues purchase / consumption cues (increases brand recall)(increases brand recall)

Brand ImageBrand Image

Brand Image can be defined as Brand Image can be defined as perceptions about a brand as perceptions about a brand as reflected by some reflected by some

- strong, strong, - favourable and favourable and - UniqueUnique

brand associations held in consumer brand associations held in consumer memory.memory.

Strength of brand Strength of brand associationsassociations

Consumer reasons for brand choiceConsumer reasons for brand choice

0

20

40

60

80

100

environperf.

rating incons

reports

advertised quality price past exp

Favourability of brand Favourability of brand associationsassociations

Which associations are desirable to Which associations are desirable to the consumer?the consumer? (how relevant, (how relevant, distinctive and believable)distinctive and believable)

Which associations are successfully Which associations are successfully delivered by the product?delivered by the product? (feasibility, (feasibility, communicability & sustainability) communicability & sustainability)

Uniqueness of brand Uniqueness of brand associationsassociations

USP’s based on product-related and non-USP’s based on product-related and non-product related attributes or benefits.product related attributes or benefits.

Stated explicitly by making direct Stated explicitly by making direct comparison with competitor or implicitly comparison with competitor or implicitly without a point of competitive reference.without a point of competitive reference.

Shared associations can help to establish Shared associations can help to establish category membership and scope of category membership and scope of competition.competition.

Points of parity v/s points of difference.Points of parity v/s points of difference.

Uniqueness of brand Uniqueness of brand associationsassociations

A specific brand may be an exemplar A specific brand may be an exemplar or most representative of the product or most representative of the product or service category.or service category.

Just as the brand is linked to the Just as the brand is linked to the product category, some category product category, some category associations may also be linked to associations may also be linked to the brand.the brand.

An association may be valued in one An association may be valued in one situation but not another.situation but not another.

Brand building blocksBrand building blocks

There are sequentially established 6 There are sequentially established 6 ‘brand building blocks with ‘brand building blocks with customers, assembled in terms of a customers, assembled in terms of a CBBE Brand Pyramid.CBBE Brand Pyramid.

Salience

ImageryPerformance

Feelings

Judgements

Resonance

IDENTITY

MEANING

RESPONSE

RELATIONSHIPS

Brand SalienceBrand Salience

Breadth and depth of awareness Breadth and depth of awareness Product category structure (Product Product category structure (Product

hierarchy – hierarchy – product class-product product class-product category-product type-brand category-product type-brand informationinformation))

Strategic implications (where, when, Strategic implications (where, when, how easily and often do consumers how easily and often do consumers think of brand)think of brand)

Brand MeaningBrand Meaning

Brand Performance (meeting of Brand Performance (meeting of utilitarian, aesthetic and economic utilitarian, aesthetic and economic needs )needs )

Brand Imagery (meeting of Brand Imagery (meeting of psychological and social needs)psychological and social needs)

Brand PerformanceBrand Performance 5 imp types of attributes and benefits 5 imp types of attributes and benefits

underlying Brand Performance:underlying Brand Performance:

1.1. Primary ingredients and Primary ingredients and supplementary featuressupplementary features

2.2. Product reliability, durability, and Product reliability, durability, and serviceabilityserviceability

3.3. Service effectiveness, efficiency, and Service effectiveness, efficiency, and empathyempathy

4.4. Style and designStyle and design

5.5. PricePrice

Brand ImageryBrand Imagery

Four categories of intangibles that Four categories of intangibles that can be linked to a brand:can be linked to a brand:

1.1. User profilesUser profiles

2.2. Purchase and usage situationsPurchase and usage situations

3.3. Personality and valuesPersonality and values

4.4. History, heritage and experiencesHistory, heritage and experiences

BRAND IMAGERYBRAND IMAGERY User ProfilesUser Profiles- Type of person or organisation who Type of person or organisation who

uses the branduses the brand- Associations may be based on Associations may be based on

(a) descriptive demographics like age, (a) descriptive demographics like age, gender, race, incomegender, race, income

(b) Psychographic factors like (b) Psychographic factors like attitudes towards life, careers, attitudes towards life, careers, possessions, social issues, or political possessions, social issues, or political institutions.institutions.

BRAND IMAGERYBRAND IMAGERY Purchase situationsPurchase situations- Under what conditions or situations Under what conditions or situations

the brand could be bought or used.the brand could be bought or used.- Considerations could be Considerations could be

(a) Type of channel(a) Type of channel

(b) ease of purchase(b) ease of purchase

(c) associated rewards(c) associated rewards

BRAND IMAGERYBRAND IMAGERY Usage situationsUsage situations- Usage situation may be based on:Usage situation may be based on:

(a) particular time of the day, week, (a) particular time of the day, week, month or year to use the brand.month or year to use the brand.

(b) location to use the brand(b) location to use the brand

(c) type of activity where the brand is (c) type of activity where the brand is usedused

BRAND IMAGERYBRAND IMAGERY History, heritage, and experiencesHistory, heritage, and experiences- Associations from the past and certain Associations from the past and certain

noteworthy events in the brand historynoteworthy events in the brand history- May involve distinct personal May involve distinct personal

experiences and episodes or be related experiences and episodes or be related to past experiences of friends, family to past experiences of friends, family members etc.members etc.

- Associations to aspects of the Associations to aspects of the marketing program of the brand. For eg: marketing program of the brand. For eg: co. or person who makes the product, co. or person who makes the product, type of store where it is sold etc.type of store where it is sold etc.

Brand JudgementsBrand Judgements

4 types of brand judgements:4 types of brand judgements:- Quality Quality (perceptions of quality and (perceptions of quality and

value)value)- CredibilityCredibility (perceived expertise, (perceived expertise,

trustworthiness and likability)trustworthiness and likability)- Consideration Consideration (deemed relevant and (deemed relevant and

closely embraced)closely embraced)- Superiority Superiority (unique brand associations)(unique brand associations)

Brand feelingsBrand feelings

Positive or negative emotional Positive or negative emotional responses and reactions with respect to responses and reactions with respect to the brand.the brand.

Transformational advertisingTransformational advertising Types of feelings:Types of feelings:

--experiential and immediateexperiential and immediate (warmth, (warmth, fun, excitement)fun, excitement)

--private and enduringprivate and enduring (security, social (security, social approval, self-respect)approval, self-respect)

Brand ResonanceBrand Resonance Intensity or the depth of the psychological Intensity or the depth of the psychological

bond that customers have with the brand, bond that customers have with the brand, as well as the level of activity engendered as well as the level of activity engendered by this loyalty.by this loyalty.

Four categories:Four categories:- - Behavioural attitude Behavioural attitude (how much and how (how much and how

often)often)- Attitudinal attachment Attitudinal attachment (pleasure, favourite)(pleasure, favourite)- Sense of community Sense of community (kinship or affiliation (kinship or affiliation

with fellow brand users)with fellow brand users)- Active engagement Active engagement (customers become (customers become

brand evangelists and ambassadors)brand evangelists and ambassadors)

Brand building implicationsBrand building implications

Customers own brandsCustomers own brands Don’t take short-cuts with brandsDon’t take short-cuts with brands Brands have a duality (appeal to Brands have a duality (appeal to

head and heart)head and heart) Brands should have a richness Brands should have a richness

(depth)(depth)

Marketing Advantages of Marketing Advantages of strong brandsstrong brands

Factors Creating Financial value for Factors Creating Financial value for strong brands (Ian Lewis from Time-strong brands (Ian Lewis from Time-Life)Life)

- - Factors related to growthFactors related to growth (new (new customers, resist competitive customers, resist competitive activity, introduce line extensions, activity, introduce line extensions, cross international borders)cross international borders)

- - Factors related to profitabilityFactors related to profitability (brand (brand loyalty, premium pricing, lower price loyalty, premium pricing, lower price elasticity, lower advtg/sales ratio, elasticity, lower advtg/sales ratio, Trade leverage)Trade leverage)

Marketing Advantages of Marketing Advantages of strong brandsstrong brands

Less vulnerability to competitive Less vulnerability to competitive marketing actions and crises.marketing actions and crises.

- J&J’s Tylenol crisisJ&J’s Tylenol crisis Increased marketing communication Increased marketing communication

effectivenesseffectiveness Larger marginsLarger margins Greater trade cooperation and Greater trade cooperation and

supportsupport

BRAND IDENTITYBRAND IDENTITY

In order to become or stay strong, In order to become or stay strong, brands must be true to their identity.brands must be true to their identity.

Communication managers are now Communication managers are now ready to look beyond the surface of ready to look beyond the surface of the brand for the brand’s innermost the brand for the brand’s innermost surface, because a brand:surface, because a brand:

- needs to be Durableneeds to be Durable- should send out coherent signsshould send out coherent signs- Must be realisticMust be realistic

BRAND IDENTITY v/s BRAND IDENTITY v/s BRAND IMAGERYBRAND IMAGERY

- Notion of Brand Image is both - Notion of Brand Image is both volatile and changing and it focuses volatile and changing and it focuses too much on brand appearance. too much on brand appearance.

- Brand identity on the other hand is - Brand identity on the other hand is the essence of the brand.the essence of the brand.

Picture of sender

THE IDENTITY PRISMTHE IDENTITY PRISM

Picture of recipient

Reflection Self-image

CultureRelationship

PersonalityPhysique

EXTERNALISATION

INTERNALISATION

BRAND IDENTITY PRISMBRAND IDENTITY PRISM

PhysiquePhysique- The first step in defining a brand is to The first step in defining a brand is to

define its physical aspect:define its physical aspect:- What is it?What is it?- What does it do?What does it do?- What does it look like?What does it look like?


PersonalityPersonality

- Personality has been the main focus of - Personality has been the main focus of advertising since 1970.advertising since 1970.

- The way a brand speaks of its - The way a brand speaks of its products or services shows what kind products or services shows what kind of person it would be if it were of person it would be if it were human. Thus the brand has a human. Thus the brand has a personality and slowly builds personality and slowly builds character.character.


PersonalityPersonality- The idea of having a famous The idea of having a famous

character represent the brand has character represent the brand has become widespread.become widespread.

- Easiest way of creating instant Easiest way of creating instant personality is to give the brand a personality is to give the brand a spokesperson or a figurehead, spokesperson or a figurehead, whether real or symbolic.whether real or symbolic.


CultureCulture- Culture means the set of values feeding Culture means the set of values feeding

the brand’s inspiration.the brand’s inspiration.- Cultural facet refers to the basic Cultural facet refers to the basic

principles governing the brand in its principles governing the brand in its outward signsoutward signs

( products and communication)( products and communication)

- eg: Coca-Cola, Mercedes, MGM, - eg: Coca-Cola, Mercedes, MGM, Rajasthan bank, saraswat bankRajasthan bank, saraswat bank


RelationshipRelationship- Brands are often at the crux of Brands are often at the crux of

transactions and exchanges between transactions and exchanges between people.people.

- Particularly crucial for banks, banking Particularly crucial for banks, banking brands, services, retail .brands, services, retail .


ReflectionReflection

- Because its communication and its - Because its communication and its most striking products build up over most striking products build up over time, a brand will always tend to time, a brand will always tend to build a reflection or an image of the build a reflection or an image of the buyer or user which it seems to be buyer or user which it seems to be addressing.addressing.


Reflection v/s TargetReflection v/s Target- The Target describes the Brand’s The Target describes the Brand’s

potential purchasers or users.potential purchasers or users.- The customer should be reflected as The customer should be reflected as

he/she wishes to be seen as a result he/she wishes to be seen as a result of using the brand.of using the brand.

- For instance, in the apparel industry For instance, in the apparel industry the obsession to look younger should the obsession to look younger should concern the brand’s reflection , not concern the brand’s reflection , not necessarily their target.necessarily their target.


Self-imageSelf-image- If reflection is the Target’s outward If reflection is the Target’s outward

image, self-image is the Target’s own image, self-image is the Target’s own internal mirror. internal mirror.

- Through our attitudes towards Through our attitudes towards certain brands, we develop a certain certain brands, we develop a certain type of inner relationship with type of inner relationship with ourselves.ourselves.


The prism concept derive from the The prism concept derive from the fact that – ‘Brands Have the gift of fact that – ‘Brands Have the gift of speech’.speech’.

They grow obsolete if they remain They grow obsolete if they remain silent or unused for too long.silent or unused for too long.

All the facets of the prism are All the facets of the prism are interrelated and form a well-interrelated and form a well-structured entity.structured entity.


The facets to the left – Physique, The facets to the left – Physique, relationship and reflection are the relationship and reflection are the social facets (outward expression)social facets (outward expression)

Facets to the right – Personality, Facets to the right – Personality, culture and self-image are those culture and self-image are those incorporated within the spirit of the incorporated within the spirit of the brand itself.brand itself.

Brand Image, Identity

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