Brand MeasurementBrand Measurement

Pros and Cons of Brand Measurement

Measure the wrong thingsMeasure the wrong things

Evaluate alternative strategies

Evaluate alternative strategies

Avoid costly mistakesAvoid costly mistakes

Increase efficiency in general

Increase efficiency in general

Disagreement on what to test

Disagreement on what to test

Research problemsResearch problems

Cost of measurementCost of measurement

Determine if objectives are achieved

Determine if objectives are achieved

TimeTime

Advantages Disadvantages

Brand Measurement: Marketers’ Views

Issue Agree

Brand Measurement is a key priority for today’s technology companies.

90%

I am dissatisfied with our ability to demonstrate marketing programs’ business impact and value.

80%

It is important to define, measure, and take concrete steps in the area of advertising accountability.

61.5%

I can forecast the impact on sales of a 10% cut in marketing spending.

37%

Essentials of Brand Measurement

Use a consumer response modelUse a consumer response model

Use benchmark testing

Use benchmark testing

Use multiple measures

Use multiple measures

Understand and implement proper

research

Understand and implement proper

research

Establish communications

objectives

Establish communications

objectives BrandMeasurement

BrandMeasurement

Two Evaluation & Measurement Strategies

• Brand Equity – brand assets (or liabilities) linked to a brand’s name and symbol that add to (or subtract from) a product or services*

• Brand Valuation – Assigning a dollar value to the brand

“Brand Leadership”, Aaker and Joachimsthaler

Brand Equity Dimensions & Constructs

Awareness Perceived Quality

Association/ Differentia-tion

Loyalty Market Behavior

Brand Awareness

Perceived Quality

Perceived Value

Price Premium

Market Share

Leadership Brand Personality

Satisfaction Price Indices

Organizational Associations

DistributionIndices

Aakers, David “Measuring Brand Equity Across Products and Markets”

Brand Equity Assessment Criteria

• Tap the full scope of brand equity• Focus on sustainable advantages not easily

duplicated by competitors• Reflect the constructs that truly drive the market;

are associated with future sales & profits– Movement on a measure will move price levels, sales or

profits

• Measures should be sensitive – when equity changes the measures reflect those changes

• Applicable across brands, product categories & markets– Tested proven measures provide structure for developing a

set of individual brand measures

Brand Awareness

• The level of brand recognition that consumers have of a particular brand and its specific product category

• Reflects the salience of the brand• Awareness levels

– Recognition: Has heard of the brand– Recall: Brands that can be named– Top-of Mind: The first-named brand– Brand Dominance: The only brand recalled– Brand Knowledge: Knowing what the brand

stands for– Brand Opinion: A value judgment of the brand

Precautions

• Awareness is not equally important across categories– Recognition is important for new companies– Recall and top-of-mind important to mature

categories/companies

• On its own provides an incomplete picture

Perceived Quality

• Special associations that occur in many contexts; empirically shown to affect ROI

• Associated with price elasticities and brand usage

• Associated with specific benefit variables • Measured as a scale in comparison to

alternative brands– High vs. average vs. inferior– The best vs. one of the best vs. one of the

worst vs. the worst– Consistent vs. inconsistent quality

“Brand Leadership”, Aaker and Joachimsthaler; Aakers, David “Measuring Brand Equity Across Products and Markets”

Precautions

• Perceived quality involves a competitor frame of reference

• Need to compare “apples to apples” … sub-compacts vs. luxury brands

• Segmentation issues … perception varies across customers vs. switchers vs. competitive loyalists

• It may not be the key driver• It may not be sensitive to relevant events

Perceived Quality - Leadership

• Taps into market dynamics above quality

• Leadership Dimension– The “Number 1” Syndrome – Product Class Innovation

• Measured by scales– The leading brand, one of the

leading brands, not a leading brand– Growing in popularity– Innovative, first with advances

Precautions

• Not a simple construction; reflects market size, popularity & innovation

• Not as well-researched or documented as other dimensions … loyalty, quality, awareness

• Therefore, evidence that it is important enough to merit attention is weak

• Aakers, David “Measuring Brand Equity Across Products and Markets”

Brand Associations - Definition

• Anything that connects individuals to the brand. It can include– User imagery– Product attributes– Organization considerations– Brand personalities – Symbols

“Brand Leadership”, Aaker and Joachimsthaler

Brand Association - Value

• Focuses on the brand value proposition

• Brand value involves – a functional benefit– is usually basic to most brands in its class

• Brand value can be measured by– Provides good value for the money– Whether there are reasons to buy a

brand over competitors

Precaution

• Is brand value different from perceived quality? Perceived quality/price?

• Brand value may relates more to functional benefits and utility

• Perceived quality may have a higher association with prestige

Association – Brand Personality

• Defined as “brand-as-a-person”

• Provides links to emotional and self-expression benefits

• Especially important where there are minor physical differences

• Continuum is often product specific– Retail: Energy/Vitality– Telephone companies:

friendly/reliable– Men’s products: rugged

Precautions

• Not all product categories or brands have personalities

• Measurement may distort brand strength of products positioned for functional advantages

• Personality may be stable and not reflect change sensitivity

Association – Organization Association

• Brand-as-an-organization – NFL, Major League Baseball, PGA

• Important basis for differentiation – product quality, innovation, credibility

• Any of these characteristics are candidates for measurement scales

Precaution

• Important in some but not all cases• May suffer from a lack of sensitivity

Brand Loyalty

• A consumer’s commitment to repurchase the brand

• When consumers like/consistently buy a specific brand

• Creates a barrier to entry

• Brand equity’s core dimension

Measuring Loyalty – Price Premium

• Price Premium – Amount a customer will pay vis-à-vis competing brands

• Negative Price premium can be good … Target vs. Macy’s

• Or what variables influence price • A reasonable summary of brand strength• Two measurements

– Dollar metric … How much are you willing to pay– Conjoint analysis … based a series of choices

• More sensitive• Seeks a “relative price

Precautions

• Defined with respect to only one set of competitors

• Might miss an emerging competitor or an emerging variable

• Different competitors/variable in different markets … the Budweiser case

• Price differentiation is not relevant … legal restrictions, the Japan beer market

Brand Loyalty – Customer Satisfaction

• Measure on multiple dimensions specific to a product or service– Auto: durability, fit & finish– Financial Services: empathy, responsiveness

• Measured as intent to buy– Would you buy this brand at the next

opportunity?– Would you recommend to others?

Precautions

• They do not apply to non-customers• Do not measure brand equity beyond the

customer base• Satisfaction and loyalty become ambiguous

when aggregated across customers, brand switchers and other brand loyalists

Market Behavior Precautions

• Market Share– More elements than brand go into market share– Often responsive to short-term strategies

• Price/Distribution Indices– Different channels– Complex competitive set

Where to From Here

• Develop a set of 4-8 constructs from the five dimension

• Establish a weighting system to accommodate relative importance

• Match the weighing system to perceived values of the target market