Brand Equity & Brand Building, Strategic Brand Communications
Brand Building Model
Transcript of Brand Building Model
BRAND BUILDING MODEL
• 4 Steps of brand building
• Brand building blocks
• Brand building implications
4 Steps of brand building
Building brands, according to CBBE model, can be thought of as a sequence of steps, in which each step is contingent on successfully achieving the previous step:
1. Ensure identification of the brand with customers & an association of the brand in customers’ mind with a specific product class or customer need
2. Firmly establish the totality of brand meaning in the minds of customers by strategically linking a host of tangible & intangible brand associations with certain properties
3. Elicit the proper customer responses to this brand identification & brand meaning
4. Convert brand responses to create an intense, active loyalty relationship between customers & the brand
4 Steps of brand building (contd.)
These 4 steps constitute fundamental questions customers ask about brands:
1. Who are you? (brand identity)2. What are you? (brand meaning)3. What about you? What do I think or feel about you?
(brand responses)4. What about you and me? What kind of association &
how much of a connection would I like to have with you? (brand relationship)
THERE IS AN OBVIOUS ORDERING OF THE STEPS IN THIS “Branding Ladder”
BRAND BUILDING BLOCKS
Brand building blocks
Resonance
Judgement Feelings
Performance Imagery
Salience
4. Relationship
What about you & me?
3. Response
What about you?
2. Meaning
What are you?
1. Identity
Who are you?
Subdimensions of brand building modelLoyalty
Attachment
Community
Engagement
Quality Warmth,Fun
Credibility Excitement
Consideration Security
Superiority Social approval, Self-respect
Primary charateristics & User profiles
Secondary features Purchase & usage situations
Product reliability Personality & values
Durability & servicability History, heritage
Service effectiveness & Experiences
Efficiency & empathy
Style & design, Price
Category identification
Need satisfied
Brand building blocks
• Salience
• Performance
• Imagery
• Judgement
• Feelings
• Resonance
Brand salience
What basic function does the brand provide to customers?
• Breadth & depth of awareness
• Product category structure
Breadth & depth of awareness (eg Tropicana)
• At the most basic level, its necessary that consumers recognise the Tropicana brand when it is presented or exposed to them
• Beyond that, consumers should think of Tropicana whenever they think of orange juice, particularly when they are thinking of purchase in that category
• Additionally, consumers ideally would think of Tropicana whenever they were deciding which type of beverage to drink, specially when seeking a “tasty but healthy” beverage – some of the needs presumably satisfied by orange juice
Thus , consumers must think of Tropicana in terms of satisfying a certain set of needs whenever those needs arise.
Product category structure (beverages)
Beverages
Water Flavour
AlcoholicNonalcoholic
Milk Juices Wine Distilled spirit
Hotbeverages
Softdrinks
Beer
Product category structure
To fully understand brand recall, it is important to appreciate productcategory structure, or how product categories are organised in memory,for example beverages:• As the configuration for beverages show, consumers often make
decisions in top down fashionImplications:• Understanding the hierarchy gives a clue on how to increase
awareness, as well as position the brand• In some cases, the best route for improving sales for a brand is not by
improving consumer attitudes toward the brand but, instead, by increasing the breadth of brand awareness & situations in which consumer would consider using the brand. For example:- to increase consumption, Tropicana is extending orange drink to occasions beyond breakfast
Brand performancePRODUCT ITSELF IS AT THE HEART OF BRAND
EQUITY, BECAUSE IT IS THE PRIMARY INFLUENCE ON WHAT CONSUMERS EXPERIENCE WITH A BRAND, WHAT THEY HEAR ABOUT A BRAND FROM OTHERS, & WHAT THE FIRM CAN TELL
CUSTOMERS ABOUT THE BRAND IN THEIR COMMUNICATIONS:
• Designing & delivering a product that fully satisfies consumer needs & wants is a prerequisite for successful marketing
• To create brand loyalty & resonance, consumers’ experiences with the product must at least meet, if not actually surpass, their expectations
Brand performance relates to way in which the product/service
attempts to meet customers’ more functional needs:• How well does the brand rate on objective assessment of
quality?• To what extent does the brand satisfy utilitarian, aesthetic,
& economic customer needs & wants in the product or service category?
There are 5 important types of attributes & benefits that often
underlie brand performance:
1. Primary ingredients & supplementary features
2. Product reliability, durability, & serviceability
3. Service effectiveness, efficiency, & empathy
4. Style & design 5. Price
Brand imageryBrand imagery is how people think about a brand abstractly, rather than what they think brand actually does.Imagery associations can be formed:• Directly: from consumers own experiences & contact with
product, brand, target market, or usage situation• Indirectly: depiction of these same considerations as
communicated in brand advertising or by some other source of information, such as W.O.M.
• 4 categories can be highlighted:1. User profiles2. Purchase & usage situations3. Personality & values4. History, heritage & experiences
Brand judgement
How customers put together all the different performance & imagery associations of the brand to form different kinds of opinions.
4 types of summary judgments particularly important:
1. Brand quality
2. Brand credibility
3. Brand consideration
4. Brand superiority
Brand quality:
• There are a host of attitudes customers hold towards a brand, but the most important relate in various ways to perceived quality of the brand
• Other notable attitudes related to quality pertain to perception of value & satisfaction
Brand credibility:
• Perceived expertise: competent, innovative, & market leader
• Trustworthiness: dependable & keeping consumer interests in mind
• Likability: fun, interesting, & worth spending time with
Brand consideration:• How personally relevant is the brand• Depends on extent to which strong, &
favourable association created as a part of brand image
Brand superiority:• Uniqueness• Absolutely critical to building intense & active
relationship with customers
Brand feelingsEMOTIONS EVOKED BY A BRAND CAN BECOME SO STRONGLY ASSOCIATED THAT THEY ARE ACESSIBLE
DURING PRODUCT CONSUMPTION OR USE:• Researchers have defined transformational advertising as
advertising designed to change consumers’ perception of the actual usage experience with the product
Following are 6 important types of brand-building feelings:1. Warmth2. Fun3. Excitement4. Security5. Social approval6. Self-respect• First 3 types of feelings are experiential & immediate, increasing in
level of intensity• Later 3 are private & enduring, increasing in level of gravity
Brand resonanceRESONANCE IS CHARACTERISED IN TERMS OF
INTENSITY, OR DEPTH OF THE PSYCHOLOGICAL BOND THAT THE CUSTOMERS HAVE WITH THE BRAND,
AS WELL AS THE LEVEL OF ACTIVITY ENGENDERED BY THIS LOYALTY:
1. Behavioural loyalty2. Attitudinal attachment3. Sense of community4. Active engagementFinally, perhaps the strongest affirmation of brand loyalty is whencustomers are willing to invest time, energy, money, or other resourcesin the brand beyond those expended during purchase or consumption of the brand Strong attitudinal attachment or social identity or both are typically necessary, however, for active engagement with the brand to occur
Brand building implications
• Customers own brands
• Don’t take short-cuts with brands
• Brands should have duality
• Brands should have richness
• Brand resonance provides important focus
THE IMPORTANCE OF CBBE MODEL IS IN THE ROAD MAP & GUIDANCE IT PROVIDES FOR BRAND BUILDING:
• It provides a yardstick by which brands can assess their progress in their brand-building efforts as well as guide for marketing research initiatives
Customers own brands:
THE BASIC PREMISE OF THE CBBE MODEL IS THAT THE TRUE MEASURE OF THE STRENGTH OF A BRAND DEPENDS
ON HOW CONSUMERS THINK, FEEL, & ACT
WITH RESPECT TO THE BRAND:
• Though marketers responsible for designing & implementing most effective & efficient brand building programmes, success depends on how consumers respond
Don’t take shortcuts with brands:
Consumer
Brand
resonance
Consumer Consumer
Judgements Feelings
Brand Brand
Performance Feelings
Brand salience
INTENSE, ACTIVELOYALTY
POSITIVE, ACCESSIBLE, REACTIONS
P.O.P &P.O.D.
DEEP, BROADBRAND
AWARENESS
A GREAT BRAND IS NOT BUILT
BY ACCIDENT BUT IS THE PRODUCT OF CAREFULLY ACCOMPLISHING –
EITHER EXPLICITLY OR IMPLICITLY –
A SERIES OF LOGICALLY LINKED STEPS
WITH CONSUMERS.:
The length of time to build a strong brand will, therefore, be directly proportional to the amount of time it takes to create sufficient awareness & understanding so that firmly held & felt beliefs & attitudes about the brand are formed that can serve as the foundation for brand equity.
Brands should have duality
STRONG BRANDS BLEND PRODUCT PERFORMANCE & IMAGERY TO CREATE A
RICH, VARIED, BUT COMPLEMENTARY SET OF CONSUMER RESPONSES TO THE BRAND
BY APPEALING TO BOTH RATIONAL & EMOTIONAL CONCERNS, A STRONG BRAND
PROVIDES CONSUMERS WITH MULTIPLE ACCESS POINTS TO THE BRAND WHILE
REDUCING COMPETITIVE VULNERABILITY
Brand should have richnessTHE VARIOUS ASSOCIATIONS MAKING UP THE BRAND IMAGE MAY BE REINFORCING,
HELPING TO STRENGTHEN OR INCREASE THE FAVOURABILITY OF OTHER BRAND
ASSOCIATIONS, OR MAY BE UNIQUE, HELPING TO ADD DISTINCTIVENESS OR
OFFSET SOME POTENTIAL DEFICIENCIES:
• Strong brands thus have both breadth & depth
• At the same time brands should not necessarily be expected to score high on all the various dimensions & categories making up each core brand value
Building blocks can have hierarchies • Brand awareness: It is typically important to first establish category identification
in some way before considering strategies to expand breadth via needs satisfied or benefits offered
• Brand performance: Often necessary to first link primary characteristics & related features before attempting to link additional, more peripheral associations
• Brand imagery: Often begins with fairly concrete initial articulation of user & user imagery that, over time, leads to broader, more abstract brand associations of personality, value, history, heritage, & experience
• Brand judgment: Usually begin with positive quality & credibility perceptions that can lead to brand consideration & then perhaps assessment of brand superiority
• Brand feelings: Usually start with either experiential ones (i.e, warmth, fun, excitement) or inward ones (i.e., security, social approval, self-respect)
• Brand resonance: Behavioural loyalty is a starting point but attitudinal attachment or a sense of community is almost always needed for active engagement to occur
Brand resonance provides important focusBRAND RESONANCE IS THE PINACLE OF CBBE MODEL &
PROVIDES IMPORTANT FOCUS &
PRIORITY FOR DECISION MAKING-
REGARDING MARKETING:
• To what extent is marketing activity affecting the key dimensions of brand resonance?
• Is marketing activity creating brand performance & imagery associations & consumer judgments & feelings that will support these brand resonance dimensions?
In a application of CBBE model, the M.R. firm, Knowledge Network, found that brands that scored highest on loyalty & attachment were not necessarily same that scored high on community & engagement (see Chart in next slide)
However, by defining the proper role for the brand, higher levels of brand resonance should be obtainable
Brand ranking on Resonance dimensions US, Fall 2001)
Rank Brand
Order Loyalty Attachment Community Engagement
1 Harley D H.D. H.D. H.D.
2 Hershey’s Hershey’s Lifetime TV Lifetime TV
3 Campbell’sCampb.’s Public Broad. Lexus
4 Clorex Discov.Ch. Fidelity Inv. Disc. Ch.
5 Heinz BMW MSM Public B.
6 Kodak Wal-Mart Lexus Wal-Mart
7 Kraft Public B. Discovery C. BMW
8 Wal-Mart Kraft AOL.com Dell
9 Duracell Kodak Chevrolet Toyota
10 Disc. Ch. NBC Hershey’s Fidelity Inv.
THE LENGTH OF TIME TO BUILD A STRONG BRAND WILL BE
DIRECTLY PROPORTIONAL TO THE AMOUNT OF TIME IT TAKES TO CREATE SUFFICIENT AWARENESS & UNDERSTANDING SO THAT FIRMLY HELD & FELT BELIEFS & ATTITUDES ABOUT THE BRAND ARE FORMED
THAT CAN SERVE AS THE FOUNDATION FOR BRAND EQUITY
Brands should have a duality
STRONG BRANDS BLEND PRODUCT PERFORMANCE & IMAGERY TO CREATE A RICH, VARIED, BUT
COMPLEMENTARY SET OF CONSUMER RESPONSES TO THE BRAND:
• By appealing to both rational & emotional concerns, a strong brand provides consumers with multiple access points to the brand while reducing competitive vulnerability
• Rational concerns can satisfy utilitarian needs, whereas emotional concerns can satisfy psychological or emotional needs. Combining the two allows the brands to create a formidable brand position