Customer-Based Brand Equity and Brand Positioning

CHAPTER:2 CUSTOMER-BASED BRAND EQUITY AND BRAND POSITIONING  Define customer- Outline the sources Identify the four Learning based brand equity and outcomes of components of customer based brand positioning...

CHAPTER:2 CUSTOMER-BASED BRAND EQUITY AND BRAND POSITIONING  Define customer- Outline the sources Identify the four Learning based brand equity and outcomes of components of customer based brand positioning brand equity Objective s Describe the Explain brand guidelines in mantra and how it developing a good should be brand positioning developed Customer-Based Brand Equity Defining Customer- Based Brand Equity Brand Equity as a Bridge Defining Customer The differential effect that brand  knowledge has on consumer response Based to the marketing of that brand  Positive CBBE  consumers react more Brand favorably to a product and the way it is marketed when the brand is identified Equity than when it is not. (CBBE) Defining Customer Based Brand Equity (CBBE)  Three key ingredients:  1) Differential Effect If there is no difference, the brand name can be classified as a commodity. Competition is based on prices  2) Brand Knowledge What consumers have learned, felt, seen, and heard about the brand as a result of their experiences over time. What are in the minds and hearts of consumers?  3) Consumer Response to Marketing The way consumers behave  choice of a brand, recall of copy points from an ad, response to a sales promotion, and evaluations of a proposed brand extension.  Defining  Approaches brand equity from the Customer perspective of the consumer Based Stresses that the power of a  brand lies in what resides in the minds and hearts of customers Brand  Differential effect that brand Equity knowledge has on consumer response to the marketing of that brand (CBBE) Figure 2.1- Marketing Advantages of Strong Brands  Results of a blind taste test Brands were exposed to Blind taste test (brands were not consumers exposed to consumers) Brand Equity as a Bridge Brand as a Reflection of the Past Quality of the investment in brand building is the most critical factor. Marketers have to know what consumers saw, heard, learned, felt and experienced about the brand. Brand as a Direction for the Future The true value and future prospects of a brand rest with consumers and their knowledge about the brand.  To Sum up...  Consumers perception of the brand plays a key role in determining the worth of the brand  Brand equity offers guidance to interpret past marketing performance and design future marketing programs  Other factors that influence brand success and equity are:   Employees,suppliers, channel members, media and government How brands affects us https://youtu.be/4eIDBV4Mpek   Key to create brand equity Brand  Creates the differential effect that drives brand equity  Marketers need an insightful Knowledge way to represent how brand knowledge exists in consumer memory   Views memory as a network of nodes and connecting links Nodes - Represent Associative  stored information or Network concepts Links - Represent the strength Memory  of association between the Model nodes  Brand associations are informational nodes linked to the brand node in memory Sources of Brand Equity Brand Awareness It is related to the strength of the brand node or trace in memory. Which we can measure as the consumer’s ability to identify the brand under different conditions. Brand Image It is the consumers’ perception about a brand, as reflected by the brand associations held in consumer memory.  Brand Awareness Consumers’ ability to confirm Brand prior exposure to the brand recognit when given the brand as cue. Can you recognize the brand? ion Consumers’ ability to retrieve the brand from memory when given the product category as a Brand cue. Consumer’s recall will depend on their ability to retrieve the brand when they recall think of the category. (e.g. Cheerios related to cereal category and breakfast) LET US HAVE A GAME!  Advantages of Brand Awareness The first step is to register the brand in the minds of consumers. Marketers must first establish a Learni brand node in memory, the nature of which affects how ng easily the consumer learns and stores brand associations. Consumers should make sure Considerat the brand is part of the consideration set of other ion brands in the category. It is to create a high level of Choi brand awareness that can affect choices among brands in the consideration set. ce  To Sum up...  Creating brand awareness means increasing the familiarity of the brand through repeated exposure, although this is generally more effective for brand recognition than for brand recall.  The more a consumer “experiences” the brand by seeing it, hearing it, or thinking about it, the more likely he or she is to strongly register the brand in memory.  Brand Image  Creating brand awareness by increasing the familiarity of the brand through repeated exposure (for brand recognition) and forging strong associations with the appropriate product category or other relevant purchase or consumption cues (for brand recall) is an important first step in building brand equity.  The Body Shop i ty n t d e s I on n d ti r a n c B Fu Products (natural ingredients only, never tested on animals), packaging (simple, refillable, recyclable), merchandising (detailed point-of-sale posters, brochures, and displays), staff (encouraged to be enthusiastic and informative concerning environmental issues), sourcing policies (using small local producers from around the world), social action program (requiring each franchisee to run a local community program), and public relations programs and activities (taking visible and sometimes outspoken stands on various issues).  Brand Image Strength More deeply a person thinks about product information and relates it to of Brand existing brand knowledge, stronger is the resulting brand association  Associati personal relevance and the ons consistency with which it is presented over time Marketers create favorable brand Favorability associations by convincing of Brand consumers that the brand possesses relevant attributes and Association benefits that satisfy their needs and wants, such that they form s positive overall brand judgments Uniquenes “Unique selling proposition” (USP) of the product  a compelling s of Brand reason why I should buy it Provides brands with sustainable Associatio competitive advantage ns Brand Personality  To Sum up...  To create brand equity, marketers should:  Create favorable consumer response i.e. brand awareness  Create positive brand image through brand associations that are strong, favorable, and unique Identifying and Establishing Brand Positioning Basic Concepts Target Market Nature of Competitio n Points-of-  Basic Concepts  Brand positioning  Act of designing the company’s offer and image so that it occupies a distinct and valued place in the target customers’ minds  Finding the proper “location” in the minds of consumers or market segment  Allows consumers to think about a product or service in the “right” perspective  Good brand positioning helps guide marketing strategy by clarifying what a brand is all about, how it is unique and how it is similar to competitive brands, and why consumers should purchase and use it.  Brand Positioning  Marketers need to know: (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.  Target Market  Market segmentation: Divides the market into distinct groups of homogeneous consumers who have similar needs and consumer behavior  Involves identifying segmentation bases and criteria  Criteria Identifiability – Can be easily to identify the segment? Size – Is there adequate sales potential in the segment? Accessibility – Are specialized distribution outlets and communication media available to reach the segment? Responsiveness – How favorably will the segment Target Market Figure 2.3 - Consumer Segmentation Bases Figure 2.4 - Business-to-Business Segmentation Bases Standard Industrial Classification   Competitive analysis  Indirect competition Nature of  Multiple frames reference Competitio  It occurs when the same function can be performed by different types n of product (e.g. Canon EOS Rebel x other digital cameras and cell phones).   Points-of-difference (PODs) associations Points of  attributes or benefits that consumers strongly associate with a brand, positively evaluate, and Parity and believe that they could not find to the same extent with a competitive Points of brand.  Points-of-parity (POPs) associations Difference  not necessarily unique to the brand but may in fact be shared with other brands Points of Parity and Points of Difference  Points-of-parity versus points-of- difference  To Sum up…  To appropriately position a brand, marketers should:  Identify their target customers  Analyze the type of competition they might face in the identified market base  Identify product features and associations that are different or similar to their competitors  Positioning Guidelines Defining and Communicating the Competitive Frame of Reference Choosing Points-of-Difference Establishing Points-of-Parity and Points- of-Difference Straddle Positions – BMW  only automobile with both luxury and performance Updating Position Overtime (Means-end chain – Attributes  Benefits  Value) Means-end chain  To Sum up...  Brand positioning describes how a brand can effectively compete against a specified set of competitors  A good product positioning should:  Have a “foot in the present” and a “foot in the future”  Identify all relevant points-of-parity  Reflect a consumer point of view in terms of the benefits that consumers derive  Contain points-of-difference and points-of-parity that appeal both to the “head” and the “heart”  Brand Mantra Designing a Brand Mantra Implementing a Brand Mantra  Brand Mantra  The brand functions term describes the nature of the product or service or the type of experiences or benefits the brand provides.  The descriptive modifier further clarifies its nature.   Nike’s performance is not just any kind (not artistic performance, for instance) but only athletic performance; Disney’s entertainment is not just any kind (not adult-oriented) but only family entertainment (and “magical,” could add even more distinctiveness)  The emotional modifier provides another qualifier — how exactly does the brand provide benefits and in what ways? Brand Mantra  To Sum up...  A good brand mantra should:  Communicate the category of the business to set the brand boundaries and clarify what is unique about the brand  Be simple, crisp, and vivid  Stake out ground that is personally meaningful and relevant to as many employees as possible