Brand Equity: Building the brand from the ground up

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  • Brand EquityBuilding the Brand from the Ground Up


  • Brand and Brand EquityBrandA persuasive force which attracts or repels consumers to a firms offerings by augmenting or diminishing their perceived benefits

    Brand EquityThe valence and strength of the brand force

    Weak Brand Equity-+Strong brand equityMost Brands


  • Branding Defined

    The process of creating a relative advantage for your brand in the mind of the customer.

    *What do you think relative advantage means

  • The Impact of Brand Equity

    Brand EquityBefore Purchase

    After Purchase

    Breaks TiesEnhances EvaluationCreates Just Noticeable Difference

    *Brand equity biases future experience with the brand. Therefore positive brand equity creates a positive upward spiral and negative brand equity creates a downward spiral

  • Measuring Brand Equity: Tapping Unobservable ElementsExcellent technique when consumers can evaluate the product with and without knowledge of the brand name.

    Evaluation of Brand Evaluation of BrandBrand Equity = (Brand Name Known) (Brand Name Not Known)


  • Brand Equity Example: Colas

    EvaluationEvaluationBrandName KnownName not KnownEquity



    RC Cola-1.8.2-2.0


  • Just Noticeable DifferenceBrand AObjective PerformanceBrand APerceived Performance

    Brand Equity Premium

    Just Noticeable DifferenceRequired Objective Performance of new brand to beat Brand A10



  • Elements of Brand EquityBrand Identity: The extent to which the brand is explicitly LINKED to a meaningful product category, consumption goal, need and/or want.

    Brand Integrity: The extent to which the brand is perceived to meet the performance expectations of its customers.

    Brand Resonance: The extent to which the brand emotionally connects to the customer by embedding it in the routine and enhancing the experience of its users


  • Brand Identity CreationWhich identity allows the brand to best leverage its benefits and create distance from powerful competitors?

    Is Excedrin?An all-purpose pain relieverAn arthritis treatmentA headache treatment

    Does Red Bull?Increase concentrationDecrease sleepinessBoost energy

  • Brand Identity is the foundation of the brand.It creates the context for all that follows IdentityIntegrityResonanceYou Cant Start Here

  • Identity Based Obstacles to Brand Equity

    Category Membership: The inability to understand the general purpose of a brand because category membership is vague or confused

    Brand Salience:The inability for the brand to come to mind prior to other, potentially equally attractive, alternatives

    Brand Position: The inability to understand a brands unique qualities.


  • Identity Based Obstacles: Category Membership

    Category Membership?I want to buy a mid-sized family sedan. Write down three automobiles you should consider.


  • Identity Based Obstacles:Category MembershipToyota Camry18.1%

    Honda Accord17.9%

    Hyundai Sonata14.6%

    Nissan Altima13.7%

    Ford Fusion11.7%

    Chevy Malibu9.8%

    Mazda 61.4%


  • Identity Based Obstacles: Category MembershipIf you do not come to mind as an alternative, you cant be considered. Simple. But, it goes much deeper

    If you are not strongly linked to a specific product category or a specific benefit, your brain concludes that you are inferior alternative to those that are so linked.

    See Mere ExposureSee Perceptual Fluency


  • Identity Based Obstacles: Brand Salience

    Brand Salience: Write down the first three fast food hamburger restaurants that come to mind.


  • Identity Based Obstacles:Brand Salience

    Salience matters because humans do not optimize many decisions salience is key in 2 out of the 3 decision approaches below:





  • The Difficulty of Building a Unique Brand Identity.a unique position

    Recall that most people can tell you a lot of information about a product category, but..

    they can tell you very little about whats different about each brand in the category.

    JeansTablet Computers


  • Identity Based Obstacles:Brand Position

    You must link the brand to a unique position to stand out in the mind of the consumer

    If you are not so linked, consumers will confuse you with other brands or label you as a me-too alternative.


  • Identity Based Obstacles: Brand Salience

    Even if a brand is correctly linked and positioned in a category, our brains automatically link speed of recall and recognition to quality, importance, acceptance


  • Identity Based Obstacles:Brand Uniqueness

    Brand Uniqueness: Write down what is unique about United Airlines.

    Nothing? This is why people buy on airline tickets on the basis of price price and flight times.


  • The Strength of Brand Identity

    The brand is clearly linked to a category that fits the benefits it delivers.

    The brands unique benefits are understood.The brand is tightly linked to this category.Basic Brand IdentityStrong Brand Identity


  • Its All About Expectations

  • ASI Satisfaction Model

  • Brand IntegrityCan the brand fulfill the promise of its identity?

    Does the brand perform as expected?

    Does the firm treat you as a person or an ATM?

    Do firm-customer interactions transpire as expected?

    Do complaint resolutions interactions transpire as expected?

    This is the easy one

    NOTE: Work on ASI and Just Noticeable DifferenceUse quality/expectation chart. Also note that if expectations are met and there are not significant differences among alternatives, identity will be driving relative preferences*

  • Brand Integrity

    Category ExpectationsBrand PromisesCustomer RelationshipsBasic Brand IntegritySuperior Brand Integrity


  • Integrity-Based Obstacles:Category ExpectationsCASE 1: Exodus: God and Kings created such high expectations that movie viewers were disappointed. Poor reviews and word of mouth caused U.S. ticket sales to collapse after the first week.

  • ASI Satisfaction ModelIf expectations exceed performance: Integrity Declines---

  • Integrity-Based ObstaclesCategory Expectations Torpedo Line ExtensionsCase 2: Budweiser has a strong identity that creates expectations incompatible with a craft beer.thus, trial is thwarted because the claim is not believed

  • Brand Integrity and Brand PromisesPrice LeaderLowest price for basic benefitsAcceptable QualityLowest cost structure

    Performance LeaderSuperior FunctionalitySuperior Styling/DesignSuperior Innovation

    Relational LeaderPersonalized TreatmentCustomized SolutionsService Excellence*

  • Brand ResonanceFrom Satisfaction to CommitmentBrand Linked to Emotional Benefits

    Embedded in Ones Everyday Life

    Fit with ones aspirational values and lifestyles

  • Causes of Brand Resonance

    Fit with ones aspirational values and experiencesBasic Brand ResonanceStrong Brand ResonanceResonance by being embedded in ones life and routines.Resonance by linking brands to higher order benefits


  • Brand Resonance through Emotional Benefits

    *Exercise: Link a Brand to two of

  • Brand Resonance through EmbeddednessThink of all the life experiences that have been associated to:






  • Brand Resonance Through Tribal Membership and Shared AspirationsIdentify with the brand because users aspire to what it symbolizes

    Under Armour: The Warrior Harley: Everything Im not During the Week


  • The Brand Component HierarchyBrand Resonance

    Brand Integrity

    Brand Identity

    Each Subsequent Brand Element Builds on the Previous ElementFailure at an Early Element Hinders Progress up the HierarchyAn absence of brand resonance does not necessarily signal the core problem is resonance


  • Brand Equity and Relative Advantage

    Marketing managers must strive to maximize each element of the brand:

    Brand Identity -- Brand Integrity - Brand Resonance

    Make the brand Meet or Link to the routine and a salient option exceed performance aspirations of your customere


  • Brand Equity and Relative Advantage

    Customer Value = (1- Perceived Risk) x (Perceived Benefits Perceived Costs)Brand Equity

  • Brand DNAThe famous consultant, Scott Bedbury, attempts to summarize a brand vision with three or four words that should shape all three components of the brand

    Starbucks:relax, intellectual, social

    Nike:performance, perseverance, winning

    University of Akron: ?????




    *What do you think relative advantage means*Brand equity biases future experience with the brand. Therefore positive brand equity creates a positive upward spiral and negative brand equity creates a downward spiral*