Building Customer Based Brand Equity Presentation

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Transcript of Building Customer Based Brand Equity Presentation

  • 1. Building Customer-Based BrandEquity: A Blueprint for Creating Strong BrandsKevin Lane Keller (2001)Presented by Jon Norris

2. Why Branding? Simply put, building a strong brand provides numerousfinancial rewards to firms and as a result, becomes a toppriority for many organizations 3. The Branding Ladder Meaning cannot be established unlessidentity has been created; responsescannot occur unless the right meaninghas been developed; and a relationshipcannot be forged unless the properresponses have been elicited(Keller, 2001, pg. 5). 4. Customer-Based BrandEquity (CBBE) ModelAccording to the model, building a strong brand involves foursteps:(1) Establishing the proper brand identity, that is, establishingbreadth and depth of brand awareness(2) Creating the appropriate brand meaning throughstrong, favorable and unique brand associations(3) Eliciting positive, accessible brand responses and(4) Forging brand relationships with customers that arecharacterized by intense, active loyalty 5. Customer-Based Brand Equity Pyramid 6. Brand-BuildingImplications How do consumers THINK, FEEL, and ACT towards that brand? The power of the brand and its ultimate value to the firmresides with customers How do consumers respond to your brand? This is totally dependable on the brand knowledge that hasbeen created in their minds 7. Applications 1. Why do certain categories or markets seem not to have anystrong brands?a) Airlines and Banks, very few can be characterized as having truly strong brands despite the high public involvement.Thus, brands in these categories have been unable to:- Elicit positive responses and- Intense active loyalty Simply put, the brand meaning does not include sufficientlystrong, favorable and unique brand associations which as aconsequence means they fail to achieve resonance with theircustomers. 8. Southwest Airlines Achieved resonancethrough a well-designedand executed marketingprogram, establishing brandmeaning 9. 2. How do strong brands get into trouble?- Diverse brands such as : Kodak, Oldsmobile, Montgomery Wards,Revlon, Miller Lite, and Kelloggs have all experienced marketdownturns and a diminishment of brand equity- The CBBE model can explain how this might have happened.- The next figure will illustrate how Levis failure to innovate andstay relevant affected its brand image, ultimately leading to lessresonance and a sizable drop in market share 10. 3. What makes a great online brand?- Some notable online branding success stories are Yahoo, E*Trade and Ebay- The strength of these brands can be seen in the resonance that they have achievedwith consumers.- These brands established brand awareness through publicity and word-of-mouth andoffered a compelling product and service with clear performance advantages.- As a consequence,they elicitedpositivebrand responseLoyalty, attachment, community, and engagement, to varying degrees.- The next figure reveals how Amazon first achieved brand salience and a strong brandimage on their way to achieving resonance with consumers 11. Summary The CBBE model reinforces the fact that there are noshortcuts in building a brand. The more explicitly the steps are recognized and defined asconcrete goals, the more likely it is that they will receive theproper attention and thus be fully realized, providing thegreatest contribution to brand building 12. The Length of time required to build a strongbrand will therefore be directly proportionate tothe amount of time it takes to create sufficientawareness and understanding among customersso that they can form strong beliefs and attitudesabout the brand, which will serve as thefoundation for brand equity.