Customer Based Brand Equity
Customer Based Brand Equity
Customer Based Brand Equity
2.
1
Customer-Based Brand
Equity
Customer-Based Brand Equity and Brand
• Positioning
Customer-Based Brand Equity
• Defining Customer-Based Brand Equity
• Brand Equity as a Bridge
Making a Brand Strong: Brand Knowledge
• Sources of Brand Equity
• Brand Awareness
• Brand Image
Identifying and Establishing Brand Positioning
• Basic Concepts
• Target Market
• Nature of Competition 2.2
2.6
POSITIONING
2.10
Making a Brand Strong:
Brand Knowledge
Associative Network Memory Model
• Memory – Network of Nodes and Connecting Links
• Stored information or
Nodes
Concepts
• Strength of association
Links
between nodes
2.11
Making a Brand Strong:
Brand Knowledge
2.13
Sources of
Brand Equity
2.14
Sources of
Brand Equity
Brand
Awareness
• Consumers’ ability to confirm prior exposure to the
Brand brand when given the brand as a cue.
Recognition • When consumers go to the store, will they be able to
recognize the brand as one to which they have already
been exposed?
2.15
Brand Awareness
Advantages
• Learning advantages
– Register the brand in the minds of consumers (Brand Node)
• Consideration advantages
– Likelihood that the brand will be a member of the
consideration set
• Raising Brand Awareness
• Small Set of brands
• Choice advantages
– Affect choices among brands in the consideration set
– Consumer Purchase Motivation
– Consumer Purchase Ability
2.16
Establishing Brand
Awareness
• Increasing the familiarity of the brand through
repeated exposure (for brand recognition)
• Brand Elements
– Name
– Symbol
– Logo
– Character
– Packaging
– Slogan
– Jingle
– ATL activities
– BTL Activities
– Public Relations 2.17
DO PEOPLE REALLY REMEMBER
SOUNDS?
Creating a Positive
Brand Image
• Brand Associations
– Strength, Favorable, and unique
– Does not matter which source of brand
association
– Marketers should recognize the influence of
these other sources of information by both
managing them as well as possible and by
adequately accounting for them in
designing communication strategies.
2.19
Creating a Positive
Brand Image
Factors that strengthens associations are
Strength of Brand • Personal relevance
Associations • Consistency with which it is presented over time
2.20
Brand Positioning
Brand positioning is at the heart of marketing
strategy. It is the “act of designing the
company’s offer and image so that it occupies a
distinct and valued place in the target
customer’s minds
• (1) who the target consumer is,
• (2) who the main competitors are,
• (3) how the brand is similar to these competitors
• (4) How the brand is different from them.
2.21
Identifying & Establishing
Brand Positioning
Target Market
• A market is the set of all actual and potential buyers
who have sufficient interest in, income for, and access to
a product.
• Market segmentation divides the market into distinct
groups of homogeneous consumers who have similar
needs and consumer behavior, and who thus require
similar marketing mixes.
1. Segmentation Bases
2. Criteria
2.22
Identifying & Establishing
Brand Positioning
1. Segmentation Bases
– Descriptive or customer-oriented (related to what kind
of person or organization the customer is), or as
– Behavioral or product-oriented (related to how the
customer thinks of or uses the brand or product).
• Toothpaste market. One research study uncovered four main
segments:30
2.23
How to establish brand
segments?
Moving Back to School Work from Home Lighting
New School Year When I get a new place New Office Space When I have free
time
Day or Night New Job When? Weekends Festive Occasions
2.26
Segmenting the Product Market for Home
Goods
Qualifying Dimensions: Good Quality, Low Price, Compact, Convenient Experience
Point of Difference (PODs)
2.28
Point of Parity (POPs)
2.30
Point of Parity (POPs)
2.31
Positioning Guidelines
Choosing Points-of-Difference
Deliverability Criteria.
• Feasibility: Can the firm actually supply the benefit
underlying the POD? The product and marketing must
be designed in a way to support the desired association
• Communicability: The key issue in communicability is
consumers’ perceptions of the brand and the resulting
brand associations. It is very difficult to create an
association that is not consistent with existing consumer
knowledge, or that consumers, for whatever reason, have
trouble believing in.
2.35
Positioning Guidelines
Choosing Points-of-Difference
1. Desirability Criteria
2. Deliverability Criteria.
3. Differentiation Criteria.
1. Target consumers must find the POD distinctive and superior.
2.36
Positioning Guidelines
2.38
Establishing Points-of-Parity and
Points-of-Difference
• Leverage Equity of Another Entity.
• Brands can link themselves to any kind of entity
that possesses the right kind of equity—
• a person, other brand, event, and so forth—
• means to establish an attribute or benefit as a
POP or POD.
• Self-branded ingredients may also lend some
credibility to a questionable attribute in
consumers’ minds
2.39
Establishing Points-of-Parity and
Points-of-Difference
• Redefine the Relationship.
– address the negative relationship between attributes
and benefits in the minds of consumers
– Convince them that in fact the relationship is
positive.
– Provide consumers with a different perspective and
suggesting that they may be overlooking or ignoring
certain factors or other considerations.
2.40
Positioning Guidelines
Straddle Positions
• A company will be able to straddle two
frames of reference with one set of
points of-difference and points-of-parity
• In these cases, the points-of-difference in
one category become points-of-parity in
the other and vice-versa for points-of-
parity.
2.41
Positioning Guidelines
2.42
Positioning Guidelines
2.43
Positioning Guidelines
2.45
Positioning Guidelines
2.47