Brand Equity and Brand Positioning

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WHAT IS A BRAND?

Abrand is a name, term, sign, symbol, or designwhich is intended to identify the goods or services of

one seller or group of sellers and to differentiatethem from those of competitors.

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BRAND ELEMENTS

A variety of brand elements can be chosenthat inherently enhance brand awareness orfacilitate the formation of strong, favorable,and unique brand associations:

Brand Name Logo Symbol Character Packaging Slogan

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Why branding ?

What makes a brand strong?

How do you build a strongbrand?

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CUSTOMER

-BASED

BRAND

EQUITY

The differential effect that brand

knowledge has on consumer response

to the marketing of that brand.

Customer-based brand equity occurs

when the customer has a high level of

awareness and familiarity with the brand

and hold some strong, favorable, and

unique brand associations in memory.

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BRAND EQUITY

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BrandLoyalty

Brand Awareness

Brand Positive Attitude

Brand Occasional users

Brand Association


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AN EXAMPLE Brand loyalty (10,000 customersConsume @4/month = 40,000 sales unit/month

Brand Occasional users (10,000 X@1 per 2months = 5000 units sales per month)

Brand Positive Attitudehas a good chance topurchase and consume the products under thebrand if motivated.

Brand Awarenesshas tendency to try, use or

recommend the products under the brand ifconvinced.

Brand Associationhas tendency to try, use orrecommend the products under the brand.

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SOURCES OF BRAND EQUITY

Brand awareness

Learning advantage

Consideration advantage

Choice advantage\

Brand Image

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CONSUMER REASONS FOR BRAND CHOICES

AN EXAMPLE

Past experience

Price

Quality

Personal recommendation

Advertising

Rating on consumer report

Environmental performance

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4 STEPS OF BRAND BUILDING

1. Ensure identification of the brandwith customers with a specific productthat meet customer need.

2. Firmly establish the totality ofbrandmeaning in the minds of consumers.

3. Elicit the customer responses tobrand identification and brand

meaning.4. Convert brand response to create an

intense, active, loyalty relationshipbetween customers and the brand. 10


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BRAND BUILDING BLOCKS

Identity - who are you?

Meaning - what are you?

Response - what about you?

Relationship - what about you and me?

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Salience 1.Identity

2.Meaning

3. response

4 relationship

ImageryPerformance

FeelingsJudgments

Resonance


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Category identificationNeeds satisfied

Product characteristicsReliability

Effectiveness

Style / design/ price

User profileUsage situationPersonality and values

History, heritage, experiences

QualityCreditability

ConsiderationSuperiority

Warmth /Fun / excitement

SecuritySocial approval / self respect

Loyalty

AttachmentCommunityEngagement


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BRAND RESONANCE

Behavioral loyalty

Keep buying the same product and same brand

over years or generations

Attitudinal attachment Believe in the brand

Sense of community

Use the brand because of sense of community

or vice versa, E.g. Apple, Harley Davidson

Active engagement

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PRODUCT CATEGORYSTRUCTURE

AN EXAMPLE

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Beverage

Water Flavored

Non-alcoholic Alcoholic

milkCoffee& tea

juiceSoftdrink

wine beerDistilledspirits


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BRAND POSITIONING

Brand Positioning (as defined by Kotler) is

an act of designing the companys offer

and image so that it occupies a distinct and

valued in the target customers mind.

Finding a proper location in the minds of

a group of consumers or market segment sothat they think about a product or service in

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ESTABLISHING BRAND POSITIONING

Target market

Points of parity and Points of Difference

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TARGET MARKET

A market is the set of all actual and potential

buyers who have sufficient interests in, income

for, and access to a product.

A market segmentationa distinct group of

homogeneous consumers who have similar needs

and behavior and thus require similar marketing

mixes.

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SEGMENTATION BASES

Behavioral

E.g. user status

Demographic

E.g, age, income

Psychographic

E.g. values, lifestyle

Geographic

E.g, local, regional,

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Nature of good

E.g. Semi-finished

Buying condition

E.g. Location

Demographic

E.g. SIC code

No of employees

Sales volume

ConsumerSegmentation Bases

Business-to-businessSegmentation Bases


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SEGMENTATION CRITERIA

Identifiability: can segment

identification be determined?

Size: is there adequate sales potential in

the segment?Accessibility: Can the segment be

reached?

Responsiveness: How favorable will thesegment respond to a tailored marketing

program>

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SEGMENTS OF USERS

4 Groups of users based on strength of

commitment.

Convertiblehighly likely to switch brands Shallownot ready to switch but consider

alternatives/

Averagecomfortable with their choice,

unlikely to switch brands in the near future. Entrenchedloyal to the brand, unlikely to

change in the foreseeable future.

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POINTS OF PARITY(POP)AND

POINTS OF DIFFERENCES (POD)

Point of Parity a particular dimension

or attribute or a brand which a group of

consumers believe that is good enough or

meet their basic expectations.

Point of Difference A particular

attribute or dimension of a brand which a

group of consumers likes and perceives as

the uniqueness of the brand.

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POINT OF DIFFERENCES

Other names:

Competitive Points of Parity

Unique Selling Point

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POSITIONING GUIDELINES

1. Defining and communicating the competitive

frame of reference

2. Choosing points of parity and points of

differences.

3. Establishing points of parity and points of

differences.

4. Updating positioning over time

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BRANDVALUES

Cores Brand Values

Set of abstract associations (Attributes and

benefits) that characterize the 5 to 10 most

important aspects or dimensions of a brand.

When you think of a brand, what comes to mind?

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BRAND MANTRAS

Brand Mantra

brand essence

Brand core promises

An articulation of heart and soul of the brand.

Short phrase that capture the essence or spirit ofthe brand positioning and brand values.

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AN EXAMPLE

ALOCAL (THAI) SOYMILK BRAND - VITAMILK

Core Brand Values

Soy-based

Quality

Healthy

Tasty

Safety

Filling

For everyone

Widely available anywhere anytime.

Brand MantraVitamilk is a tasty healthy drink.

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Brand Equity and Brand Positioning

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