PRODUCT VS. BRAND

Attention, acquisition, use or consumption, employee, political figure, department store

Additions in terms of packaging, services, advertising, customer advice, associations and other things that people value,

THE SECRET OF SUCCESSFUL BRANDS

CUSTOMER BASED BRAND EQUITY (CBBE)

• The power of the brand lies in what resides in the minds of the

customer

• CBBE- defined as “the differential effect that brand knowledge

has on consumer response to the marketing of that brand”

• A brand has positive CBBE when consumers react more

favorably to a product and the way it is marketed when a

brand is identified than when it is not.

3 KEY INGREDIENTS OF THIS DEFINITION

“the differential effect that brand knowledge has on consumer

response to the marketing of that brand”

1. Differential effect

2. Brand Knowledge

3. Consumer response to marketing

I.E. FIGURE 2.2

Results of Blind beer taste tests

MARKETING ADVANTAGES OF STRONG BRANDS

• Improved perceptions of product performance

• Greater Loyalty

• Less vulnerable to competitive marketing actions

• Larger margins

• Inelastic response to price increase

• Elastic response to price reductions

• Increased Marcom effectiveness

• Brand extension opportunities

MAKING A STRONG BRAND

Key driver is Brand knowledge

Brand awareness

Brand image (associations and characteristics)

ASSOCIATION TEST 1

ASSOCIATION TEST 2

ASSOCIATION TEST 3

SOURCES OF BRAND EQUITY

Brand recognition

and

brand recall

BENEFITS OF BRAND AWARENESS

Learning Advantage – Customers are more receptive

Consideration Advantage – consideration set

Choice Advantage – affect choice amongst the consideration set

Consumer purchase motivation – indifference i.e. gas

Consumer purchase ability – inability to judge what’s best due to lack of

prior experience i.e. new cooks

All brands

Known Brands

Acceptable brands

Unacceptable brands

Indifferent brands

Over looked brands

Unknown Brands

COMPETITIVE BRAND ALTERNATIVES –

DEFINING COMPETITIVE SET

Evoked Set Rejected brands Inept set

ESTABLISHING BRAND AWARENESS

• Increasing the familiarity of the brand

• The more the consumer interacts with the brand (seeing,

hearing or thinking about it) the more aware they get

• Anything that causes a consumer to experience the brand

DISTINCTIVENESS

BRAND RECALL REQUIRES LINKAGE TO THE

PRODUCT CATEGORY

BRAND IMAGE

• Is built through favorable brand association

• Consistency – don’t change over time

• Favorability brand associations – depends on the

customer, time, nature of association

• Uniqueness of brand associations

BRAND BUILDING BLOCKS

• Brand Salience – measures the awareness of the brand

• i.e. how often and how easily the brand is evoked under various

situations or circumstances.

• To what extent is the brand top of the mind easily recalled or

recognized?

• Brand Salience – helps us understand the degree to which the

customers understand the product or service category in which the

brand competes and what products or services are sold under the

brand name

• It also ensures that customers know which of their needs the brand

through these products is designed to satisfy

PRODUCT CATEGORY STRUCTURE – ORGANIZED IN

THE MEMORY OF CUSTOMERS

BRAND BUILDING BLOCKS

• Brand Performance – the product is at the heart of brand equity.

• It directly influences the consumer experience with the brand.

• It defines how well does the product or service meets the customers more functional needs

• How well the brand rate on assessment of quality?

• To what extent does the brand satisfy utilitarian, aesthetic and economic customer needs and wants in the product or service category?

5 attributes to product performance

• Primary ingredients and supplementary features

• Product reliability, durability and serviceability

• Service effectiveness, efficiency and empathy

• Style and design

• Price

BRAND IMAGERY

• Includes the ways in which the brand attempts to meet the customers

psychological or social needs

• It is the way people think about the brand abstractly rather than what the brand

actually does

• Thus imagery refers to the more intangible aspects of the brand

• Customers can form imagery about a brand based on their own experience or

indirectly through advertising or by some other source of information

• 4 main intangible that can be linked to a brand are

1.User profiles

2.Purchase and usage situations

3.Personality and values

4.History, heritage and experiences

BRAND JUDGEMENT

• Are the consumers personal opinions about and evaluations of the

brand, which consumers form by putting all the different brand

performance and imagery associations.

• Brand quality: perceived quality

• Brand credibility: perceived expertise, trustworthiness, and likability

• Brand consideration: strong and favourable brand associations and

imagery

• Brand superiority: Unique and better than other brands. Number and

nature of unique brand associations that make up the brand image

BRAND FEELINGS

• Are the customers emotional response and reactions to the brand.

• 6 important types of brand building feelings i.e. Titan

1. Warmth: sense of calm and peacefulness, sentimental, warm-hearted or affectionate about a brand

2. Fun: upbeat types of feelings make consumers feel amused, light-hearted, joyous, playful, cheerful i.e. Disney

3. Excitement: the brand that makes consumers feel energized and that they are experiencing something special i.e. Redbull

4. Security: feeling of safety, comfort and self assurance i.e. Ceylinco

5. Social Approval: feel that others look favourable on their response i.e. Mercedes

6. Self respect: makes consumers deel better about themselves i.e. P&G

BRAND RESONANCE

• Ultimate relationship with the brand

• Describes the nature of this relationship and the extent to which

consumers think they are in sync with the brand.

• The intensity of the psychological bond the consumer has with the brand

• The level of activity engendered by this loyalty i.e. repeat purchase,

seeking out information

• Behavioural loyalty: repeat purchases and category share (CLV)

• Attitudinal attachment:

• Sense of community

• Active engagement

CUSTOMER BASED BRAND EQUITY PYRAMID

POSSIBLE MEASURES OF BRAND BUILDING BLOCKS

Figure 2.9 page 75

POSSIBLE MEASURES OF BRAND BUILDING BLOCKS

Figure 2.9 page 75 &76

SHOULD BRANDS HAVE DUALITY

Head Heart

BRAND RANKINGS ON RESONANCE DIMENSIONS

Fig 2.10 – page 79

CREATING CUSTOMER VALUE

CRM – relationship management, use IT to support

Customer Equity – CLV

Invest in highest value customers first

Product management to customer management

Up sell and cross sell

Reduce acquisition costs

Track customer equity gains and losses against marketing programs

Relate branding to customer equity

Retainability of customers

HAVE 2 MKTN PLANS, OR 2 DEPTS FOR ACQUISITIONS AND RETENTION

BRAND VS. CUSTOMER EQUITY

• Brand Equity – customers subjective and intangible

assessment of the brand beyond its objectively

perceived value

• Customer Equity - is the total combined customer

lifetime values of all of a company's customers

COURSE BOOK – STRATEGIC BRAND

MANAGEMENT Customer Based Brand Equity Chapter 02

Authors

Kevin Lane Keller

M.G. Parameswaran

Isaac Jacob

Presentation compiled by Leroy J. Ebert

Chartered marketer, MCIM, MSLIM

Manager Marketing and Business

Logiwiz Ltd.