Brand Equity & Positioning

8/6/2019 Brand Equity & Positioning

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Brand Equity and BrandBrand Equity and Brand

PositioningPositioning


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What is a Brand?What is a Brand?

AA brandbrand is a name, term, sign, symbol,is a name, term, sign, symbol,

or design which isintended toor design which isintended to identifyidentify thethegoods orservices ofone seller orgroupgoods orservices ofone seller orgroupofsellers and toofsellers and to differentiatedifferentiate them fromthem fromthose ofcompetitors.those ofcompetitors.


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Brand ElementsBrand Elements

A variety of brand elements can be chosenA variety of brand elements can be chosenthat inherently enhance brand awarenessthat inherently enhance brand awarenessor facilitate the formation of strong,or facilitate the formation of strong,

favorable, and unique brand associationsfavorable, and unique brand associations::

Brand NameBrand Name

LogoLogo

SymbolSymbol

CharacterCharacter

PackagingPackaging

SloganSlogan


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Why branding ?Why branding ?

What makesabrandstrong?What makesabrandstrong?Howdo youbuildastrongbrand?Howdo youbuildastrongbrand?


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CustomerCustomer--based Brand Equitybased Brand Equity

TheThe differentialeffectdifferentialeffect thatthat brandknowledgebrandknowledge

has onhas on consumer responseconsumer response to the marketingto the marketing

ofthat brand.ofthat brand.

CustomerCustomer--basedbrandequitybasedbrandequity occurs whenoccurs when

the customer has a high level ofawarenessthe customer has a high level ofawareness

and familiarity with the brand and hold someand familiarity with the brand and hold somestrong, favorable, and unique brandstrong, favorable, and unique brand

associationsin memory.associationsin memory.


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Brand EquityBrand Equity

BrandLoyalty

Brand Awareness

Brand Positive Attitude

Brand Occasional users

Bran

d Association


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An exampleAn example

BrandloyaltyBrandloyalty ((1010,,000000 customerscustomers

Consume @Consume @44/month =/month = 4040,,000000 sales unit/monthsales unit/month))

Brand OccasionalusersBrand Occasionalusers((1010,,000000 X@X@11 perper 22 monthsmonths== 50005000 unitssales per month)unitssales per month)

Brand Positive AttitudeBrand Positive Attitude has a good chance tohas a good chance topurchase and consume the products under the brand ifpurchase and consume the products under the brand ifmotivated.motivated.

Brand AwarenessBrand Awareness has tendency to try, use orhas tendency to try, use orrecommend the products under the brand ifconvinced.recommend the products under the brand ifconvinced.

Brand AssociationBrand Association has tendency to try, use orhas tendency to try, use orrecommend the products under the brand.recommend the products under the brand.


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Sources of brand equitySources of brand equity

Brand awarenessBrand awareness

Learning advantageLearning advantage

Consideration advantageConsideration advantage

Choice advantageChoice advantage\\

Brand ImageBrand Image


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Consumer reasons for brandConsumer reasons for brand

choiceschoices

An example

An example

Past experiencePast experience

PricePrice

QualityQuality

Personal recommendationPersonal recommendation

AdvertisingAdvertising

Rating on consumer reportRating on consumer report Environmental performanceEnvironmental performance


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44Steps of Brand BuildingSteps of Brand Building

1.1. EnsureEnsure identificationofthebrandidentificationofthebrand withwithcustomers with a specific product that meetcustomers with a specific product that meetcustomer need.customer need.

2.2. Firmly establish the totality ofFirmly establish the totality ofbrandbrandmeaningmeaning in the minds ofconsumers.in the minds ofconsumers.

3.3. Elicit theElicit the customerresponsescustomerresponses to brandto brand

identification and brand meaning.identification and brand meaning.4.4. Convert brand response to create an intense,Convert brand response to create an intense,active,active, loyalty relationshiployalty relationship betweenbetweencustomers and the brand.customers and the brand.


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Brand Building BlocksBrand Building Blocks

IdentityIdentity -- who are you?who are you?

MeaningMeaning -- what are you?what are you?

ResponseResponse -- what about you?what about you?

RelationshipRelationship -- what about you and me?what about you and me?


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SalienceSalience 1.Identity

2.Meaning

3. response

4 relationship

ImageryImageryPerformancePerformance

FeelingsFeelingsJudgmentsJudgments

ResonanceResonance


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CategoryidentificationCategoryidentification

NeedssatisfiedNeedssatisfied

Product characteristicsProduct characteristics

ReliabilityReliability

EffectivenessEffectiveness

Style / design/ priceStyle / design/ price

User profileUser profile

Usage situationUsage situation

Personality and valuesPersonality and values

History, heritage, experiencesHistory, heritage, experiences

QualityQuality

CreditabilityCreditabilityConsiderationConsiderationSuperioritySuperiority

Warmth /Warmth /

Fun / excitementFun / excitementSecuritySecuritySocial approval /selfrespectSocial approval /selfrespect

LoyaltyLoyaltyAttachmentAttachment

CommunityCommunity

EngagementEngagement


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Brand ResonanceBrand Resonance

BehavioralloyaltyBehavioralloyalty

Keep buying the same product and same brandKeep buying the same product and same brand

overyears orgenerationsoveryears orgenerations AttitudinalattachmentAttitudinalattachment

Believe in the brandBelieve in the brand

SenseofcommunitySenseofcommunity

Use the brand because ofsense ofcommunity orUse the brand because ofsense ofcommunity or

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

ActiveengagementActiveengagement


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Product Category StructureProduct Category StructureAn exampleAn example

Beverage

Water Flavored

Non-alcoholic Alcoholic

milkCoffee& tea

juiceSoftdrink

wine beer Distilledspirits


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Brand PositioningBrand Positioning

Brand PositioningBrand Positioning (as defined byKotler) is (as defined byKotler) is

an act ofdesigning the companys offer andan act ofdesigning the companys offer and

image so that it occupies a distinct andimage so that it occupies a distinct andvalued in the target customers mind.valued in the target customers mind.

Finding a proper locationin the minds ofaFinding a proper locationin the minds ofa

group ofconsumers or market segment sogroup ofconsumers or market segment sothat they think about a product orservice inthat they think about a product orservice inthe right or desired way.the right or desired way.


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Establishing brand PositioningEstablishing brand Positioning

Target marketTarget market

Points ofparity and Points ofDifferencePoints ofparity and Points ofDifference


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Marketing StrategyMarketing Strategy

Segmentation

Targeting

Positioning


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What is Positioning?What is Positioning?

PositioningPositioning is the act ofdesigning theis the act ofdesigning the

companys offering and image to occupycompanys offering and image to occupy

a distinctive place in the mind of thea distinctive place in the mind of thetarget market.target market.


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Value PropositionsValue Propositions

Perdue ChickenPerdue Chicken

More tendergolden chicken at a moderateMore tendergolden chicken at a moderate

premium pricepremium price

DominosDominos

A good hot pizza, delivered to your doorA good hot pizza, delivered to your door

withinwithin 3030 minutes ofordering, at a moderateminutes ofordering, at a moderatepriceprice


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Differentiation StrategiesDifferentiation Strategies

Product

Channel Image

Personnel


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Product DifferentiationProduct Differentiation

Product formProduct form

FeaturesFeatures

PerformancePerformance

ConformanceConformance

DurabilityDurability

ReliabilityReliability ReparabilityReparability

StyleStyle

DesignDesign

Ordering easeOrdering ease

DeliveryDelivery

InstallationInstallation

Customer trainingCustomer training CustomerconsultingCustomerconsulting

MaintenanceMaintenance


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Personnel Differentiation:Personnel Differentiation:

Singapore AirlinesSingapore Airlines


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Channel DifferentiationChannel Differentiation


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Image DifferentiationImage Differentiation


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Target marketTarget market

A marketA market is the set ofall actual andis the set ofall actual and

potential buyers who have sufficientpotential buyers who have sufficient

interestsin, income for, and access to ainterestsin, income for, and access to aproduct.product.

A market segmentationA market segmentation a distinct groupa distinct group

ofhomogeneousconsumers who haveofhomogeneousconsumers who havesimilar needs and behavior and thussimilar needs and behavior and thusrequire similar marketing mixes.require similar marketing mixes.


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Segmentation basesSegmentation bases

BehavioralBehavioral

E.g. userstatusE.g. userstatus

DemographicDemographic

E.g, age, incomeE.g, age, income

PsychographicPsychographic

E.g. values, lifestyleE.g. values, lifestyle

GeographicGeographic

E.g, local, regional,E.g, local, regional,internationalinternational

Nature ofgoodNature ofgood

E.g. SemiE.g. Semi--finishedfinished

BuyingconditionBuyingcondition

E.g.LocationE.g.Location

DemographicDemographic

E.g. SICcodeE.g. SICcode

No ofemployeesNo ofemployees

Sales volumeSales volume

ConsumerConsumerSegmentationBasesSegmentationBases

BusinessBusiness--toto--businessbusinessSegmentationBasesSegmentationBases


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Segmentation CriteriaSegmentation Criteria

Identifiability:Identifiability: can segment identification becan segment identification be

determined?determined?

Size:Size: is there adequate sales potential in theis there adequate sales potential in thesegment?segment?

AccessibilityAccessibility:Can the segment be reached?:Can the segment be reached?

ResponsivenessResponsiveness:How favorable will the:How favorable will the

segment respond to a tailored marketingsegment respond to a tailored marketing

program>program>


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Segments of usersSegments of users

44 Groupsofusersbasedonstrength ofcommitment.Groupsofusersbasedonstrength ofcommitment.

Convertible

Convertible

highly likely to switch brandshighly likely to switch brands

ShallowShallow not ready to switch but considernot ready to switch but consider

alternatives/alternatives/

AverageAverage comfortable with theirchoice, unlikely tocomfortable with theirchoice, unlikely to

switch brandsin the nearfuture.switch brandsin the nearfuture.

EntrenchedEntrenched loyal to the brand, unlikely to change inloyal to the brand, unlikely to change inthe foreseeable future.the foreseeable future.


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Points of Parity (POP) andPoints of Parity (POP) andPoints of differences (POD)Points of differences (POD)

PointofParityPointofParity a particular dimension ora particular dimension or

attribute or a brand which a group ofattribute or a brand which a group of

consumers believe that is good enough orconsumers believe that is good enough ormeet their basic expectations.meet their basic expectations.

PointofDifferencePointofDifference A particular attribute orA particular attribute or

dimension ofa brand which a group ofdimension ofa brand which a group ofconsumers likes and perceives as theconsumers likes and perceives as the

uniqueness of the brand.uniqueness of the brand.


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Point ofDifferencesPoint ofDifferences

Other names:Other names:

Competitive Points ofParityCompetitive Points ofParity

Unique SellingPointUnique SellingPoint


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Positioning GuidelinesPositioning Guidelines

1.1. Defining and communicating theDefining and communicating the

competitive frame ofreferencecompetitive frame ofreference

2.2. Choosing points ofparity and points ofChoosing points ofparity and points ofdifferences.differences.

3.3. Establishing points ofparity andEstablishing points ofparity and

points ofdifferences.points ofdifferences.4.4. Updating positioning over timeUpdating positioning over time


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Brand ValuesBrand Values

CoresBrand ValuesCoresBrand Values

Set ofabstract associations(AttributesSet ofabstract associations(Attributes

and benefits) that characterize theand benefits) that characterize the 55 toto1010 most important aspects or dimensionsmost important aspects or dimensions

ofa brand.ofa brand.

When you think ofa brand, what comesWhen you think ofa brand, what comesto mind?to mind?


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Brand MantrasBrand Mantras

Brand MantraBrand Mantra

brand essencebrand essence

Brand core promisesBrand core promisesAn articulation of heart and soul of theAn articulation of heart and soul of the

brand.brand.

Short phrase that capture the essence orShort phrase that capture the essence orspirit of the brand positioning and brandspirit of the brand positioning and brandvalues.values.


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An exampleAn exampleA local (Thai) soymilk brandA local (Thai) soymilk brand -- VitamilkVitamilk

Core Brand ValuesCore Brand Values

SoySoy--basedbased

QualityQuality

HealthyHealthy

TastyTasty

SafetySafety

FillingFilling

For everyoneFor everyone

Widely available anywhere anytime.Widely available anywhere anytime.

Brand MantraBrand MantraVitamilkVitamilk is a tasty healthy drink.is a tasty healthy drink.

Brand Equity & Positioning

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