Building Measuring and Leveraging Brand Equity-27 Slides to Share

8/2/2019 Building Measuring and Leveraging Brand Equity-27 Slides to Share

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Building, Measuring, and LeveragingStrong Brands

Professor Steve Hoeffler

Beta Gamma Sigma: Atlanta Area Alumni Chapter

Tuesday, February 19th


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Branding: Roadmap and Sources

1) Define Brand Equity

2) Evaluate a Model for Building Brand Equity

3) Use Starbucks example throughout for hands-on learning

Sources:

1) Strategic Brand Management

by Kevin Lane Keller

2) The Marketing Advantages of Strong Brands

by Steve Hoeffler & Kevin Lane Keller

(Journal of Brand Management, Aug, 2003)3)Building Brand Equity through Corporate Societal Marketing

by Steve Hoeffler and Kevin Lane Keller

(Journal of Public Policy and Marketing, Spring, 2002)

4) How Social-Cause Marketing Affects Consumer Perceptions

by Paul Bloom, Steve Hoeffler, and Kevin Lane Keller

Sloan Management Review, Winter 2006


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First: Lets understand what a brand is

What Do You Think Of When You Hear?

Cadillac

At your table -- discuss all of the thoughts that come to mind


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Understanding brands:How information about brands is stored

Associative Network Memory Model network of nodes and links

nodes: stored information or concepts

links: strength of the association between nodes

Accurately portrays in detail all salient brand associations andresponses for a particular target market (e.g., brand users)

Can create a mental map by asking consumers for their top-of-mind brandassociations (e.g., When you think of this brand, what comes to mind?). Performance (product-related)

Imagery (non-product-related)

Recall: based on the concept of spreading activation


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Starbucks Mental Map - Team Exercise


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Components of Brand Knowledge:

Brand Awareness = strength of the brand node or tracein memory Brand Recall (retrieval given need, product category or some cue)

Key to Recall: linkages to Product Category, Purchase Situation,Usage Situation

Brand Recognition (confirm prior exposure)

Increase familiarity through repeated exposure Hence the importance of Integrated Marketing Communications

Use a wide range of communications options Advertising, Promotions, Sponsorship, PR

Depth versus Breadth of Awareness Amazon example


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Components of Brand Knowledge:BRAND IMAGE

Brand Image = consumer perceptions of the brandas reflected by the associations held in memory

Brand Meaning based on the number and content of

nodes that are connected to the brand in memory For competitive advantage need:

Strong (based on amount of processing) (personal relevance, consistency)

Favorable (based on consumer needs)

Unique (associations not shared by competitors)


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Framework for understanding how strongbrands gain an advantage: CBBE Model

Customer Based Brand Equity (CBBE) = thedifferential effect that brand knowledge has onconsumer response to the marketing of the

brand Differential Effect (necessary)

Brand Knowledge (in the minds of consumers)

Consumer Response (perceptions, preferences, behavior)


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Building Brand EquityNEW FRAMEWORK

Most research on brands has focused onadvantages of strong brands

Less is known about the most effective ways to

build brand equity

New Framework: Core Brand Values Pyramid

developed by Kevin Keller building blocks to accomplish necessary steps to

building brand equity


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BRAND PYRAMID

4. RELATIONSHIPS =

What about you & me?

4. RELATIONSHIPS =

What about you & me?

3. RESPONSE =

What about you?

3. RESPONSE =

What about you?

2. MEANING =

What are you?

2. MEANING =

What are you?

1. IDENTITY =

Who are you?

1. IDENTITY =

Who are you?

INTENSE,

ACTIVE LOYALTY

INTENSE,

ACTIVE LOYALTY

POSITIVE,ACCESSIBLE

REACTIONS

POSITIVE,ACCESSIBLE

REACTIONS

STRONG, FAVORABLE& UNIQUE BRAND

ASSOCIATIONS

POINTS-OF-PARITY& DIFFERENCE

DEEP, BROAD

BRAND

AWARENESS

DEEP, BROADBRAND

AWARENESS

RESONANCE

JUDGMENTS FEELINGS

PERFORMANCE IMAGERY

SALIENCE

Stages of Brand

Development

Branding Objective at

Each StageBuilding Blocks

COLD HOT


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RECENT EXAMPLE: (COLD path of pyramid)Building Utilitarian associations to a Brand

Cadillac transforming their image via performance From Car and Driver Review:

With a folding hardtop that completely disappears at the touch of abutton, the XLR presents a sleek and clean profile

Under the XLRs hood lies its most significant major mechanicaldistinction the 4.6 liter Northstar V-8upgraded in a variety of waysfor improved performance, emissions, and fuel economy

New Ad Strategy is to move from heritage to performance

Early Ads showed classic Cadillacs morphing into models (heritage)

New Ads focus on performance (engineering & speed)

Benefits to revitalizing the Cadillac brand Average age of buyers has dropped

Resale values are rising


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Now What Do You Think Of?


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Brand Positioning

Essence: Brand has some sustainable competitive advantage(SCA) or unique selling proposition (USP) that gives consumers acompelling reason to buy that particular brand

Competition-Based Positioning Identify the Appropriate Category

Distinguish from Other Category Members on Important Dimension

Strongest Positions: Brand has Clear Point of Difference on Benefitthat Prompts Category Use

Example: Tide -- superior cleaning power

Image-Based or Goal-Based Positioning Depict Brand or Category as way to Satisfy Consumer Goal

Laddering Up Inferences are like rungs on a ladder and becomemore abstract and general as you go up

General Belief: Abstract > Competition

Brand Essence

Abstract Benefits

Benefits

Attribute/Image


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Recent Example: NASCARAssociations Positioning Behavior


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Brand Positioning:Understand Brand Meaning

Core brand associations

Set of abstract associations that characterize the 5-8 mostimportant aspects or dimensions of a brand.

Can serve as the basis of brand positioning in terms of how they

relate to points-of-parity and points-of-difference Challenge is to maximize the coverage of the mental map to

include all relevant associations while making sure each corebrand associations is as distinct as possible


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Starbucks Core Brand AssociationsTeam Exercise

1) 2)

3) 4)

5) 6)


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Brand PositioningConduct Competitive Analysis

Competitive frames of reference Nature of competition

Target market

Points-of-parity shared brand values Necessary

Competitive

Points-of-difference unique brand values Desirable Deliverable


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Starbucks Competitive PositioningTeam Exercise

Competitor

1) Fast food chains &convenience shops

POP

POD

2) Supermarket Brands(for home)

3) Local Caf


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Brand Positioning III:Capture Brand Essence

Brand mantras Short 3-to-5 word phrases that capture the irrefutable

essence or spirit of the brand. Nike = Authentic Athletic Performance

Disney = Fun Family Entertainment Brand mantra must clearly delineate what the brand is

supposed to represent and therefore, at leastimplicitly, what it is not

Brand mantras typically are designed to capture thebrands points-of-difference, i.e., what is unique aboutthe brand.


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Brand Mantras

To arrive at the final brand mantra, the following considerationsshould come into play.

Communicate. A good brand mantra should define the category (orcategories) of business for the brand and set the brand boundaries. It

should also clarify what is unique about the brand.

Simplify. An effective brand mantra should be memorable. As a result, itshould be short, crisp, and vivid in meaning.

Inspire. Ideally, the brand mantra would also stake out ground that is

personally meaningful and relevant to as many employees as possible.

Regardless of exactly how many words actually make up the mantra,however, there will always be a level of meaning beneath the brandmantra itself that will need to be articulated.


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Starbucks Brand MantraTeam Exercise

? ? ?


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Branding Takeaways

Brand Equity lies in the minds of consumers Mental Maps w/ Core associations, POP/POD, etc.

Lots of research and knowledge about the benefits thataccrue to strong brands

Less is known about the right way to build strong brands

Customer Based Brand Equity (CBBE) Model is useful overallframework for understanding brands

Core Brand Values Pyramid is useful framework for buildingstrong brands Need both Performance (Cold) or Emotional Aspects (Hot)

2 key types of positioning strategies (Competition andImage)

Building Measuring and Leveraging Brand Equity-27 Slides to Share

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