Measurement brand strength industrial goods 20110120

Measurement of Brand Strength of industrial Goods

Thomas Dmoch

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Table of content

Definitions– industrial goods–brand strength

Methods of brand strength measurementApplication

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DEFINITIONS METHODS OF BRAND STRENGHT MEASUREMENT APPLICATION

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Industrial Goods

Objects of branding

Industrial goods Consumer goods

Industrial durables Expandable goods

Component parts Not component

Raw materials

Auxiliarymaterials

Ingredient parts

Destination

Consumption

Integration

Manufacturing level

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Customers are organisations–Formalised decision making–Buying Centre–Demand depends on

downstream marketsSpecific solutions found in

interactive processMarket transparency Long-time relationships

Industrial buying behaviour

Misunderstandings–Always highly involved–Rational and calculative–Not susceptible to emotions–Don’t care about brand names

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Subjectivity in industrial buying behaviour

Test with industrial buyersSelect the best industrial productDifferent products, thereof 2 with–Equivalent functionality–Equivalent quality–Equivalent price–But: one with standard design, one with

appealing design

Result:First choice for 61,6%

Source: Yamamoto/Lambert 1994.

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Relevance of industrial Brands

Relevance today Relevance in 5 years

59%

54%

57%

76%

47%

44%

50%

37%

MechanicalEngineering

ElectricalEngineering

ChemicalsIndustry

AutomotiveSupplier

Source: Baumgarth, 2010

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Brand Strength

Brand controlling

Brand strength

Diagnosis and therapy

Brand equity

Evaluation

Why is the brand strong or weak? Which measures are useful to

raise brand value?

How much a brand is worth?

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Freixenet

Candle-light dinnerRose tattoo

erotic advertising

beautiful woman

erotic

seductive

fiery

full of spirits

Spanish

passionate

exclusive

preciousgolden letters

fashionablegolden label

frosted bottle

Rüttgers

cheap

red label

German origin

Brand Strength

sparklingwine

typical bottleProsecco

Champagne

exclusive

tangy

sparkling

good taste tingly

stimulatory inspiring

Champagneglass

romantic

festive occasion

joy

Festivity

Party

celebrate

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Imagery Measurement

The picture I imagine is

as clear and vivid as in reality

clear and quite vivid

moderately clear and vivid

vague and hazy

I don‘t have any mental image.

Please tick

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Imagery Measurement

The picture I imagine is like

Please tick

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DEFINITION METHODS OF BRAND STRENGTH MEASUREMENT APPLICATION

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No expensive market research

Benchmarking with industrial goods

Brand image is primarily people driven, not by mass communication

Popularity of the model– to overcome scepticism of sales

people– to convince brand unaware top

management

Specific Requirements in B-to-B sector

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GfK Brand Simulator

Period tPeriod t-1

Product Price Promotion Place

Marketing Mix

Competitors

Brand strength

Marketshare

Product Price Promotion Place

Marketing Mix

Competitors

Brand strength

Marketshare

Only for FMCGPanel data are hardly available in B-to-B context.No explanation why brand strength is high or lowNo suggestion which measures are useful to raise brand strengthNo assessment of visual part of brand knowledge

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Y&R Brand Asset Valuator

Brand Asset Valuator

Brand strength

Differentiation Relevance

Brand’s growth potential

Brand stature

Esteem Knowledge

Brand’s current power

Clear and simple Only a rough estimate Variables not sufficiently operationalised No assessment of visual part of brand knowledge

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GfK Brand Potential Index

Brand Awareness

Perceived quality

Pricepremium

UniquenessBrandsympathy

BrandConfidence

Identificationwith the brand

Brandrecommendation

Brandloyalty

Purchaseintention

Brand Potential

Index

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GfK Brand Potential Index

Brandawareness

Perceived quality

Pricepremium

UniquenessBrandsympathy

Brandconfidence

Identificationwith the brand

Brandrecommendation

Brandloyalty

Purchaseintention

Brandawareness

Pricepremium

Brandsympathy

Brandconfidence

Brandrecommendation

Brandloyalty

Brand Potential

Index

Simple and pragmatic Applicable in B2B Benchmarking possible BPI and FCB not independent BPI items are interdependent No assessment of visual part of brand knowledge

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Icon Iceberg Model

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Icon Iceberg Model

Brand imagery

Brand credit

Aided brand awareness Perceived advertising pressure Memorability of advertising Brand uniqueness Vividness of brand imagery Appeal

Brand likeability Brand confidence Brand loyalty

Short term

Long term

Marketing activities

Sales

Advertisement

TV-Spot

WebpageProduct design

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Icon Iceberg Model

Aided brand Awareness Perceived advertising

pressure Memorability of advertising Brand uniqueness Vividness of brand imagery Appeal

Brand likeability Brand Confidence Brand loyality

Norm22

21

8

2

-5

87

27

65

37

38

53

38

31

12

Brand Imagery

Brand Credit

-9

16

20

12

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Aided brand Awareness Perceived advertising

pressure Memorability of advertising Brand uniqueness Vividness of brand imagery Appeal

Brand likeability Brand Confidence Brand loyality

Bra

nd

Imag

ery

Brand Credit

Icon Iceberg Model

Norm87

27

65

37

38

53

38

31

12

Brand Imagery

Brand Credit

22

21

8

2

-5

-9

16

20

12

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Icon Iceberg Model

Norm87

27

65

37

38

53

38

31

12

Bra

nd

Imag

ery

Bra

nd C

redit

Aided brand Awareness

Perceived advertising

pressure

Memorability of advertising

Brand uniqueness

Vividness of brand imagery

Appeal

Brand likeability

Brand Confidence

Brand loyalty

Product range Logo

Branding Sales

Corporate Design Price

Internet Product design

Advertisement Public relations

Customer serviceUser

22

21

8

2

-5

-9

16

20

12

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Icon Iceberg Model

Norm87

27

65

37

38

53

38

31

12

Bra

nd im

ager

yBra

nd

cred

it



pressure


Brand uniqueness


Appeal

Brand likeability

Brand Confidence

Brand loyalty

Product range

Corporate Design


Customer service

Branding Sales


Logo

User

Price

22

21

8

2

-5

-9

16

20

12

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Icon Iceberg Model

Norm87

37

38

53

38

31

12

Bra

nd

Imag

ery

Bra

nd C

redit


Brand uniqueness


Appeal

Brand likeability

Brand Confidence

Brand loyalty

Product range

Corporate Design


Customer service

Branding Sales


Logo

User

Price

22

8

2

-5

16

20

12

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Icon Iceberg Model

Norm

Bra

nd

Imag

ery

Bra

nd C

redit


Contact frequency

Brand uniqueness


Appeal

Brand likeability

Brand Confidence

Brand loyalty

10

87

37

38

53

38

31

12

66

22

8

2

-5

16

20

12

Product range

Corporate Design


Customer service

Branding Sales


Logo

User

Price

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Icon Iceberg Model

Norm

Bra

nd

Imag

ery

Bra

nd C

redit

Contact frequency

Supplier uniqueness

Vividness of Supplier imagery

Appeal

Supplier likeability

Confidence to supplier

Loyalty to supplier

10

8

2

-5

16

20

12

37

38

53

38

31

12

66

Product range

Corporate Design


Customer service

Branding Sales


Logo

User

Price

Theory based concept Repeatedly validated model Adapted and validated for B2B Imagery taken into account Simple operationalisation Widely known and acepted in practice Brand imagery and brand credit are not independant

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Icon Iceberg Model

Norm87

27

65

37

38

53

38

31

12

Bra

nd im

ager

yBra

nd

cred

it



pressure


Brand uniqueness


Appeal

Brand likeability

Brand Confidence

Brand loyalty

Product range

Corporate Design


Customer service

Branding Sales


Logo

User

Price

22

21

8

2

-5

-9

16

20

12

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Definitions Methods of brand strength measurement Application

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Heidelberg: Heterogeneous communication

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Umbrella Branding

Umbrella brand with subbrands with own

logo

Communication clutter

Umbrella brand

2000 2008

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Brand Status Brand definition Execution

Heidelberg printing machines

Product Design Product Branding Core competences

Product

Corporate Behaviour Corporate Fashion TrainingEmployees

Corporate Identity Corporate Design Corporate

Architecture Events

Communication

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Heidelberg Brand Strength Development

Reference value of technical durables B2B

Reference value of technical durables B2B

Bra

nd

imag

ery

Brand credit

HD-Customers1999

HD-Customers2006

Market leader Customers Willingness to pay Premium Prices Better financial Rating for Customers ready to buy HEIDELBERG Superior Resale Value High Demand for used HEIDELBERG Printing Machines

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Industrial buying behaviour is more formalised as in B-to-C

Industrial buyers are however susceptible to strong brands

Brand strength = psychological value–Diagnosis: Why is the brand strong or weak–Therapy: Which measures can raise brand

value? Iceberg model is the most suited

measurement tool–Adapted and validated–Taking imagery effects into account

Measurement brand strength industrial goods 20110120

Marketing

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