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Brand Equity
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Definition
It is the added value
endowed on products &services.
It may be reflected in
the way consumers
think, feel & act withrespect to the brand, as
well as in the prices,
market share &
profitability the brandcommands.
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Few more
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Positive or negative brand equity
Product/Service with positive brand equity deliver
value to the customer based on its quality, experience,
durability, availability, services. Companies charge
more premiums indicate higher brand equity.
Negative one has a worst impact on the company
image. This may be due to poor quality, bad experience
with the product, bad word of mouth & most important
poor performance of the previous products& services.
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Strategic Brand management Process
Involves the design & implementation of
marketing programs & activities to build,
measure & manage brand equity.
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Steps in Strategic Brand management Process
Identify & establish brand
positioning & values
Plan & implement brandMarketing programs
Measure & interpret
brand performance
Grow & sustain
Brand equity
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1. Identifying & establishing brand positioning & values
Kotler defines act of designing the companys offer & image so that itoccupies a distinct & valued place in the target customers mind.
Positioning often involves specifications of core brand values & brand
mantra.
Core brand values are set of abstract associations ( attributes & benefits)
that characterize a brand.
A brand mantra is a short 3-5 word expression of the most important
aspects of a brand & its core values.
A brand represents a brand mantra, also known as the brand essence or
core brand promise.
A brand audit is a comprehensive examination of a brand, involving
activities to assess the health of the brand, uncover its sources of equity &
suggest ways to improve it.
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2. Planning & implementing brand marketing programs
This is a knowledge building process & depends upon :1. Choosing brand elements
A brand element is visual or verbal information that serves to
identify or differentiate a product like brand names, logos,
symbols, characters, packaging & slogans.2. Integrating the brand into marketing activities & the
supporting marketing program
The primary input comes from the marketing activities, strong,
favorable & unique brand associations by means ofmarketing programs
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3. Leveraging Secondary associations.
A brand association may be created by linking the brand to
another node or information in memory that conveys
meaning to consumers.
Like the brand may be linked to certain source factors like
company, country or geographic regions, channels of
distribution, characters etc
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3. Measuring & interpreting brand performance
A useful tool to measure is the brand value chain.
This is used to trace the value creation process for brands to
better understand the financial impact of brand marketing
expenses & investments.
A brand equity measurement system is a set of research
procedures designed to provide timely, accurate & actionable
information for marketers to make the best possible tacticaldecision in the short run & the best strategic decision in the
long run.
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Brand Value Chain
Marketing
Program
investment
Customer
mindset
Market
PerformanceShareholder
value
Program
Quality
Market
Place
Conditions
Investors
Sentiments
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4. Growing & Sustaining brand equity
1. Defining the branding strategy
2. Managing brand equity over time
3. Managing brand equity over geographic boundaries ,
cultures & market segments
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Customer Based Brand equity
What makes a brand strong?
How do u build a strong brand?
These questions are dealt by CBBE model.
This model approaches from the perspective of consumers- both
individual or an organization.
Basic premise of the CBBE model is that the power of a brand
lies in what the customers have learned, felt, seen & heard about
the brand as a result of their experiences over time.
OR
The power of a brand lies in what resides in the minds of
customers.
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Brand is said to have a positive CBBE when consumers reactmore favorably to a product & the way it is marketed.
Thus with a positive CBBE, this may results in consumers
being more accepting of a new brand extension., less sensitiveto price increases.
On the contrary a brand is said to have a negative CBBE if
consumers react less favorably to marketing activity.
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3 key points in these concepts
1. Differential effect:
2. Brand knowledge:
3. Consumer response:
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Brand Image: Perceptions about a brand as reflected
by the brand associations held in consumer memory.
E.g.: Apple computers
MacintoshCreative
User friendly Cool
Graphics
Apple logo
Apple computers
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Sources of Brand Equity
CBBE occurs when the consumer has a high level
of awareness & familiarity with the brand & holds
some strong, favorable & unique brand associations
in memory.
Key to branding is that consumers must not think
that all brands in the category are the same.
1. Brand Awareness2. Brand Image
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1.Brand Awareness
This consists of brand recognition & brand recall
performance.
Brand recognition relates to consumers ability toconfirm prior exposure to the brand.
e.g. when consumers go to the store, is it the case that they
ill be able to recognize the brand as one to which theyhave already been exposed?
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Brand Recall relates to consumers ability to retrieve the
brand from memory when given the product category,
the needs fulfilled by the category, or a purchase.
e.g. recall of Kellogg's corn flakes will depend on
consumers ability to retrieve the brand when they think
of the cereal category or what they should eat for
breakfast either at the store ( when making a purchase),
at home ( when making a consumption choice), or
wherever.
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If a product decision is made in the store, brandrecognition may be more important because the brand
will actually be physically present.
Outside a store where the brand is not present, it is
probably more important that the consumer will be able
to actually recall the brand from memory?
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Consequences of Brand awareness
Brand awareness plays an important role inconsumer decision making for 3 major reasons:
Learning Advantages
Consideration advantages
Choice advantages1. Consumer purchase motivation.
2. Consumer purchase ability.
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Establishing Brand Awareness
This is created by increasing the familiarity of the brandthrough repeated exposure.
Its more of a consumer experience rather than by seeing
it, hearing it or thinking about it.
Anything that causes consumers to experience a brand
name,symbol,logo,character,packaging that can
increase familiarity & awareness of that brand element.
Advertising, promotion, sponsorship, event marketing,
publicity & PR.
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2. Brand Image
With a positive brand image a strong link, favorable & unique brand
association are created in the memory.
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1. Strength of Brand associations
2. Favorability of Brand associations
3. Uniqueness of Brand associations.
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Building Brand Equity
Marketers build brand equity by creating the right
brand knowledge structures with the right consumers.
There are 3 main sets of brand equity drivers.
1. The initial choices for the brand elements making upthe brand ( brand names, logos, URLs, slogans etc..)
2. The product/Service & all accompanying marketing
activities & supporting marketing programs.
3. Other associations indirectly transferred to the brandby linking it to some other entity ( person, place or
thing)
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By
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ProductStrategy
New
Perspectiv
e
on
mark
eting
Channe
l Strate
gy
Pricin
g
Stra
tegy
Marketing
Programs
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Economic reasons,Technological,
Political & legal,
Socio-cultural,
Competitive environment.
The reasons/drivers
Digitalization and connectivity,
Disintermediation and reinter mediation,
Customization and customerization,Industry convergence,
New customer and company capabilities.
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Customers/consumers
Substantial increase in customer power
Greater variety of available goods and servicesGreater amount of information about practically
anything.
Greater ease in interacting and in placing and
receiving orders.An ability to chat with strangers and compare
note on products and services.
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Company
Operate a powerful new information and sales
channel.
Broad area coverage
Knowledge about markets, customers, competitors
Ability to communicate customer and prospects
Facility regarding transaction efficiency.
Can customize their offering and services toindividual customers
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Personalizing marketing
Experiential marketing
Focuses on customer experience
on the consumption situation
View customers as rational and emotional
One-to-one marketing
Shifting from transaction mar. to relationship marketing.
Focus on individual through data base
Customize products and servicesPermission marketing
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Reconciling the new marketing approaches
Various new approaches and others help to
reinforce a number of important marketing
concepts and techniques.
From a branding point of view, they are
particularly useful means of thinking how to both
elicit positive brand responses and create brand
resonance to build customer based brand
equity.
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Product itself is at the heart of brand equity
because it is the primary influence on what
consumers experience with brand.
Designing and delivering a product and services
that satisfies customers needs and wants.
Perceived Quality and value
Relationship marketing
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Perceived Quality and value
Performance
Features
Conformance quality
ReliabilityDurability
Serviceability
Style and design
Brand intangiblesTotal quality management an return on quality
Value chain
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Relationship marketing
It attempts to provide a more holistic, personalizedbrand experience to create stronger customer ties.
Mass customizationAfter marketing
Loyalty programs
Know your customers
Change is goodListen to your best customers
Engage people
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Customer price perceptions
Setting prices to build Brand equity
Value pricingProduct design & delivery
Product costs
Product prices
Pricing methods
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For new products
Skimming pricing/price skim
Penetration pricing
For existing product
Cost oriented pricing
Demand oriented pricing
Competition oriented pricing
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Cost oriented pricing
Cost plus pricing
Target pricing method
Break even pricing
Marginal cost & incremental
Demand oriented pricingPurchasing power parity pricing
Skimming policy
Penetration policy
Competition oriented pricing
Discount pricingPremium pricing
Follow the leader pricing
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Channel design
Indirect channelsDirect channels
Web strategy
Level of channels
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Key matters
What should be the channel of distribution
for the product?
What should be the length?
What will be the cost of distribution?
What should be the criteria for appointingintermediaries?
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Importance
Distribution channel is an important element of
marketing mix.
The cost involved in distribution channel extend
the product price.
A product is really useful only when it reaches
the customer at the right time at the right place.
The right choice of the channel of distribution will
reduce the fluctuation in the production.
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Direct channel
Preferable Product information needs are high
Product customization is high Product quality assurance is important
Purchase lot size is important
Logistic are important
Company owned storesShops in the department stores/malls
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Indirect channelsPreferable A board assortment is essential
Availability is critical
After sale service is important
Push & pull strategy
Channel support
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Web strategy
www.homeshop18.com
www.ebay.in
shopping.indiatimes.com
www.toponlineshopping.com
www.futurebazaar.com
www.indiaplaza.inwww.mps-shopping.com
http://www.homeshop18.com/http://www.ebay.in/http://www.toponlineshopping.com/http://www.toponlineshopping.com/http://www.futurebazaar.com/http://www.indiaplaza.in/http://www.mps-shopping.com/http://www.mps-shopping.com/http://www.mps-shopping.com/http://www.mps-shopping.com/http://www.mps-shopping.com/http://www.indiaplaza.in/http://www.futurebazaar.com/http://www.toponlineshopping.com/http://www.toponlineshopping.com/http://www.toponlineshopping.com/http://www.ebay.in/http://www.homeshop18.com/8/14/2019 Unit 2 RBPM Brand Equity
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Levels of the channel
0-levelManufacturers consumers
1-levelManufactures distributorsconsumers
2-levelManufacturers distributors wholesalers- consumers
3-levelManufacturers- distributors- wholesalers- retalers-consumers
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Presented By:
Prasun Kumar
Shruti Raghuwanshi
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IMC is a communication process thatentails the planning, creation,integration and implementation of
diverse forms of marcom (adverts,sales promotion, publicity) that aredelivered over time to a brandstargeted customers and prospects.
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Moving away from traditional marketing
TV, radio, newspaper and magazines
Moving towards more modern marketing techniquesOnline methods such as blogs and brand communities
Connecting with customers requires thinking beyond
traditional methods (think out of the box)Essential that marketers redesign the way theycommunicate with their customers
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Redesigning brand-buildingcommunications marketers mustremember that the following 6 stepsmust occur of the information
processing model:Exposure
Attention
Comprehension
Yielding
Intensions
Behaviour
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A consumer may not be exposed to an Ad because the media plan missed themark.
A consumer may not notice an Ad because of a boring and uninspired strategy.
A consumer may not understand an Ad because of a lack of product categoryknowledge or technical sophistication, or because of a lack of awareness and
familiarity about the brand itself.
A consumer may fail to respond favorably and form a positive attitude because ofirrelevant or unconvincing product claims.
A consumer may fail to form a purchase intention because of a lack of animmediate percieved need.
A consumer may fail to actually buy the product because he/she doesnt rememberanything from the Ad when confronted with the available brands in the store
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The right consumer is exposed to the right message at theright place and at the right time.
The creative strategy for the advertising causes theconsumer to notice and attend to the Ad but does notdistract from the intended message.
The Ad properly reflects the consumers level ofunderstanding about the product and the brand.
The Ad correctly positions the brand in terms of desirableand deliverable points of difference and point of parity.
The Ad motivates consumers to purchase of the brand.
The Ad creates strong brand associations to all of thesestored communication effects so that they can have an effectwhen consumers are considering making a purchase.
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CurrentBrandKnowledge
Desired
BrandKnowledge
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Possible to employ multiplecommunication to achieve goals
Understand how each communication
method works and leverage of thepositive aspects of method
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Communication options
Advertising
TV, Radio, Print, Direct response, Interactive andOutdoor
PromotionConsumer promotions and Trade promotions
Event marketing and sponsorship
Public relations and Publicity
Buzz marketing
Personal selling
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Advertising is any paid form of non-personal presentation and promotionof ideas, goods or services by an
identified sponsorPowerful way of creating strong,favourable and unique brandassociations. (Kellers BrandKnowledge Model)
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Medium of Advertising Advantages DisadvantagesTelevision Mass Coverage
Impact of sight, sound andmotionLow cost per thousand
Short message lifeHigh absolute andproduction costsClutter
It is important that when designing the ad campaign thatmarketers take into account both the message or positioning(what ad is attempting to convey about the ad) and the creative
strategy (the way the ad expresses the brand claims).
http://images.google.co.za/imgres?imgurl=http://radioadvisoryboard.com/images/flat-screen.jpg&imgrefurl=http://radioadvisoryboard.com/Prizes.html&usg=__jUaYa92rrhbB2rm2HPjn005KwZo=&h=324&w=400&sz=14&hl=en&start=3&um=1&tbnid=kjoTpH2iLXvQRM:&tbnh=100&tbnw=124&prev=/images%3Fq%3Dflat%2Bscreen%2Btelevision%26hl%3Den%26um%3D1http://images.google.co.za/imgres?imgurl=http://radioadvisoryboard.com/images/flat-screen.jpg&imgrefurl=http://radioadvisoryboard.com/Prizes.html&usg=__jUaYa92rrhbB2rm2HPjn005KwZo=&h=324&w=400&sz=14&hl=en&start=3&um=1&tbnid=kjoTpH2iLXvQRM:&tbnh=100&tbnw=124&prev=/images%3Fq%3Dflat%2Bscreen%2Btelevision%26hl%3Den%26um%3D18/14/2019 Unit 2 RBPM Brand Equity
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Defining PositioningCompetitive frame ofreference
Nature of competitionTarget Market
Point of parity attributesand benefitsNecessaryCompetitive
Point of differenceattributes and benefits
DesirableDeliverable
Creative strategyInformational (benefitelaboration)
Problem solutionProduct comparisons
TestimonialTransformational (imageryportrayal)
Usage situationUser of productBrand personality and
valuesMotivational
HumorSex appealFear
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Medium ofAdvertising
Advantages Disadvantages
Radio Low costLocal coverage wellsegmented audienceflexibility
Audio onlyLow attention gettingcapabilitiesClutter
Radio is of a low involvement nature and has limited sensoryoptions therefore advertising pioneer David Ogilvysuggeststhat the advert must include 4 critical factors:
1.Identify your brand early in the commercial2.Identify it often3.Promise the listener a benefit early in the commercial4.Repeat it often
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Medium ofAdvertising
Advantages Disadvantages
Magazines High informationcontentLongevityMultiple readers
Long lead time for adplacementVisual onlyLack of flexibility
Newspapers High coverage at lowcostShort lead time forplacing adsTimely (current ads)
Short lifePoor reproductionqualitySelective readerexposure
Usually readers only glance at the most visible elements of printads.
Hence it is important to be direct: Clarity, Consistency and
Branding
Consistency is key in creating brand awareness and strong brand
associations
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Medium of advertising Advantages Disadvantages
Direct Response High selectivityReader controls exposure
High information contentEasy to establishrelationships.
High cost per customerPoor image
Clutter
Use of mail, telephone, internet and other non-personal contact tools to
communicate with customers and prospects.
Purpose is to elicit some type of behaviour from the consumer e.g. use of
infomercials
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Medium of advertising Advantages Disadvantages
Interactive Customized and personalEngaging
Often lack emotionality
WebsitesCustomers go online to search for infoWebsites must convey consumer relevant info e.g. P&G pampers.com-
gives baby and parenting advice
Interactive adverts
Mobile marketing
Build a platform for solid relationships
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Medium of advertising Advantages Disadvantages
Outdoor Location specificHigh repetitionEasily noticed
Short exposure timeLocal restrictions
Non-traditional, alternative or supportive form of advertising
Idea behind it is to give marketers an alternative environment in which to
promote their products.
Examples: movies house adverts, product placement and point of purchase
advertising.
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SALES PROMOTION
Short term incentives to encourage trail & usage of a
product or service
Trade consumers
Financial incentives/discounts given to retailers, distributors, etc
Slotting allowances, POP displays, contests, cooperative ads
End consumers
Designed to change the choices, quantity or timing of consumer
product purchases
Advantages Disadvantages
Incentive to buy Manufacturers can price discriminate Traders can maintain full stocks
Decrease brand loyalty More brand switching Decreased quality perceptions Increased price sensitivity
EVENT MARKETING &
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EVENT MARKETING &
SPONSORSHIP
Public sponsorship of events or activities related to sport,art, entertainment or social causes
(Castle lager + soccer, Standard Bank + cricket, FIFA)
Sponsors become part of a personally relevant moment in
consumers lives & are able to broaden & deepen the
relationships with their target market
Advantages
Identify with a particular target market of lifestyle Increase awareness of company or brand name
Create or reinforce consumer perceptions of key brand image associations Enhance corporate image dimensions Create experiences and evoke feelings Express commitment to community or social issues Entertain key clients or reward key employees Permit merchandising or promotional opportunities
PUBLIC RELATIONS &
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PUBLIC RELATIONS &
PUBLICITY
Programs that are designed to promote or
protect a companys image or products
Publicity
Nonpersonal communication such as press releases,
media interviews, feature articles, etc
Public Relations
+Annual reports, fund raising, lobbying, etc
Buzz Marketing (only works for high-interest products)
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PERSONAL SELLING
Face-to-face interaction with prospective
customers for the purpose of making
salesAdvantages Disadvantages Send a detailed, customizedmessage Marketers can gatherfeedback to close the sale
Easier identify prospectivebuyers Tailor solutions to their needs Demonstrate product usage
High costs Lack of breadth
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C C C
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Using IMC Choice Criteria
Evaluating communication options
Establishing priorities & tradeoffs
Executing final design &
implementation
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1.Coverage
Breadth
Depth
2. Contribution
3. Commonality
4.Complementary
5.Versatility
6. Cost
+++ + ++ +++ +
+ ++ ++ ++ +++
+++ +++ +++ +++ +++
+++ ++ ++ + +++
+++ +++ +++ +++ +++
+ ++ + + +++
+++ +++ +++ +++ +++
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Commonality and Complementaritywill often be inversely related.
Versatility andComplementarity
will also often be inversely related.Commonality and Versatility do notshare an obvious relationship.
G l M G id li
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General Marcoms Guidelines
1. Be analytical
2. Be curious
3. Be single-minded
4. Be integrative
5. Be creative
6. Be observant
7. Be patient
8. Be realistic
Coordinating Media to Build
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Coordinating Media to Build
Brand Equity
Factors Creating Weak Brand Links
Competitive Clutter
Ad Content & Structure
Consumer Involvement
Strategies to Strengthen Communications
Effects
Brand Signatures
Ad Retrieval CuesMedia Interactions
TV Ads over Time
How does IMC contribute to
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How does IMC contribute to
Brand Equity?
++
=
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