Brand Equity:Brand Equity: Measuring & Linking … Brand Equity_AMA 2007.pdfBrand Equity:Brand...
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©2005 Burke Incorporated. All rights reserved. September 2007 Brand Equity: Brand Equity: Measuring & Linking to Measuring & Linking to Business Outcomes Business Outcomes
Transcript of Brand Equity:Brand Equity: Measuring & Linking … Brand Equity_AMA 2007.pdfBrand Equity:Brand...
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September 2007
Brand Equity:Brand Equity:Measuring & Linking toMeasuring & Linking to
Business OutcomesBusiness Outcomes
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Brand Equity:Measuring & Linking to Business Outcomes
“Marketing is the art of brand building.”
“If you are not a brand, you are acommodity. And then price is everything.”
Source: Philip Kotler, “Building Your Brand” Inc. Magazine SeminarS.C. Johnson Distinguished Professor of International MarketingKellogg School of ManagementNorthwestern Univerisity©
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Measure
Track
Extend
Link
Value
Typical Issues In Brand Equity Research©
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Topics for Discussion
Setting the Stage
Background & Definitions
Brand Equity Framework
Taking Action
Measurement
Management
Putting It All Together
Wrap Up
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Brand Equity is produced by the cumulative, historical effect ofyour marketing mix on your target markets.
If the marketing mix has been effective at differentiating yourbrand from competitors, then buyers will assign more value toyour brand.
The more “value” assigned to your brand, the greater its ability toboth acquire and retain customers.
Improving acquisition and retention leads to higher brand value.
Point of View on Defining Brand Equity©
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Willingness toPay More
Larger ShareOf Wallet
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The Brand Equity Payoff
BrandBrandEquityEquity
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The NUMMI plant in California produced two nearly identical modelscalled the Toyota Corolla and the Chevrolet Prizm.
Toyota sold 230,000 Corollas compared to sales of 52,000 Prizms.
Toyota’s net price $650 higher!
>Source: Philip Kotler, “Building Your Brand” Inc. Magazine SeminarS.C. Johnson Distinguished Professor of International MarketingKellogg School of ManagementNorthwestern University
The Brand Equity Payoff©
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Brand Equity Framework
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BrandEquityBrandBrandEquityEquity AcquisitionAcquisitionAcquisition
RetentionRetentionRetention CustomerValue
CustomerCustomerValueValue
BrandValueBrandBrandValueValue
DifferentiationDifferentiationDifferentiation
MarketingEfforts
MarketingMarketingEffortsEfforts
Regard
Recognition
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BrandEquity Acquisition
Retention CustomerValue
BrandValue
Differentiation
Regard
Recognition
MarketingEfforts
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Linking Brand Equity to Business Outcomes
0 10 20 30 40 50 60 70 80 90 100
Brand Equity Score
BusinessOutcome
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Areas of Exploration:
Online Panel
24 Brands
Business Week Annual Ranking of MostValuable Brands
Total Sample = 5,476
Random Assignment 2 Brands
Total N Per Brand = 450
Users = 225
Aware Non-Users = 225
Burke Brand Equity R&D
Awareness
Familiarity
Usage
Loyalty
EmotionalConnection
Quality Performance
Value Reputation
Personality
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Burke Brand Equity R&D©
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BrandEquity
Measuring Brand Equity
Trust
Pride
Value
Responsibility
Stability
Loyalty
RecognitionRecognitionAidedAware
UnaidedAware
RegardRegard
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Brand Equity Score
ActualMarketShare
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There Is A Strong Relationship BetweenBrand Equity and Market Share
Linking Brand Equity To Business Outcomes- Market Share -
Source: Burke R&D, 2006
80%
70%
60%
50%
40%
30%
20%
10%
040 45 50 55 60 65 70 75
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Performance on Brand Equity ScoreSource: Burke R&D, 2006
Linking Brand Equity To Business Outcomes- Brand Value -
Brands With Superior Brand Equity Are Worth More $$
Top Third
$16.2
$12.3
$9.7Average
Brand Value(Billions of $$)Source: BusinessWeek
Middle Third Bottom Third
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Alternatives for Strategic Initiatives
Strategic initiatives to improve Brand Equity can focus on three stages ofthe purchasing process:
Recognition
Retention
Acquisition
Understanding a Brand’s strengths and opportunities within each ofthese stages aids in the decision as to which stage should be the focusfor improvement strategies.
Focus for Improvement Strategy for Improvement
Improve Marketing Communications
Prioritize Drivers of Acquisition
Prioritize Drivers of Retention
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Many approaches exist to measure the impact of performance measures on overallBrand Equity.
The key to prioritize improvement initiatives is to understand what is the benefit of aperformance improvement and what is the cost of a performance decrement.
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Prioritizing Opportunities for Improvement
Att
rib
ute
s
Greater Penalty
Greater Reward
EquivalentPenalty &Reward
Attribute Impact
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CriticalImprovement
IssuesH
igh
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Prioritizing Opportunities for Improvement
Imp
act
PerformanceBetterWorse
Lo
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Interpretation
MaintenanceIssues
SecondaryIssues
Lower PriorityIssues
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Non-Customers
CV=$0
Non-Customers
CV=$0
Non-CustomersCV=$100
Non-CustomersCV=$100
Non-CustomersCV=$500
Non-CustomersCV=$500
RetentionRetentionRetentionAcquisitionAcquisitionAcquisition
Recognition
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Linking Brand Equity to Customer Value
Brand Equity Profile
Regard
AwareAwareNot
Aware
NotAware
CategoryBuyers
CategoryBuyers
Dri
ver
Dri
ver
Dri
ver
Dri
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Dri
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Dri
ver
Dri
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Dri
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Dri
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Dri
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Dri
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Dri
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CustomerCustomerValueValue
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Key Discussion Points
Brand Equity is determined by two guiding forces:
Recognition
Regard
Regard is a multi-dimensional construct, comprised of Loyalty, Trust,Responsibility, Stability, Value and Pride.
Strategies for Improvement center on a brand’s opportunity tostrengthen its market presence, its ability to acquire new customersand its ability to retain existing customers.
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Joelle SchwartzPhone: 513-684-7732
For More Information
For a copy of this presentation, or for materials on other topics,please visit our website at www.burke.com
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