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
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
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
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%
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.
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*
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 Benefitshttp://w3.ipsos.com/marketing/censydiam/our-approach.jspx
*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
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*