Chap02=Marcom & Brand Equity

of 28

  • date post

    29-May-2018
  • Category

    Documents

  • view

    215
  • download

    0

Embed Size (px)

Transcript of Chap02=Marcom & Brand Equity

  • 8/9/2019 Chap02=Marcom & Brand Equity

    1/28

    MARCOM CHALLENGES:MARCOM CHALLENGES:Enhancing Brand Equity,Enhancing Brand Equity,

    Influencing Behaviour and BeingInfluencing Behaviour and Being

    AccountableAccountable

  • 8/9/2019 Chap02=Marcom & Brand Equity

    2/28

    1. Explain the concept of brand equity from both the

    companys and the customers perspectives.

    2. Describe the positive outcomes that result from

    enhancing brand equity.

    3. Appreciate a model of brand equity from the

    customers perspective.

    4. Understand how marcom efforts must influencebehavior and achieve financial accountability..

    Chapter Objectives

    After reading this chapter you should be able to:

    22

  • 8/9/2019 Chap02=Marcom & Brand Equity

    3/28

    3

    Introduction:Introduction:

    Framework for Marcom ProcessFramework for Marcom Process

    Fundamental

    Decisions

    Desired

    OutcomesImplementation

    Decisions

    Evaluation and

    Corrective Action

  • 8/9/2019 Chap02=Marcom & Brand Equity

    4/28

    4

    Basic IMC IssuesBasic IMC Issues

    How to enhance

    brand equity

    How to affect

    customer

    behavior

    How to justify

    marcom

    investments

    How to

    demonstrate

    financial

    accountability

    Marketing

    Communicators

  • 8/9/2019 Chap02=Marcom & Brand Equity

    5/28

    5

    BrandBrand

    BrandBrand IIs a name, term, sign, symbol, or design.s a name, term, sign, symbol, or design.

    Identifies and differentiates goods and services of oneIdentifies and differentiates goods and services of one

    seller or group of sellers from those of theseller or group of sellers from those of the

    competition.competition.Communicates a particular set of values.

    Brand EquityCan be considered either from the perspective of the

    organization that owns it or from the vantage point oft or from the vantage point of

    the customer.the customer.

    Is valuable when consumers believe the brand canIs valuable when consumers believe the brand can

    deliver on its promises.deliver on its promises.

  • 8/9/2019 Chap02=Marcom & Brand Equity

    6/28

    6

    A FirmA Firm--Based Perspective on Brand EquityBased Perspective on Brand Equity

    Higher

    market share

    Increased

    brand loyalty

    Premium

    pricing

    Revenue

    premiums

    Effects of Brand

    Equity Increases

  • 8/9/2019 Chap02=Marcom & Brand Equity

    7/28

    7

    Brand Equity IncreasesBrand Equity Increases

    Revenue Premium The revenue differential between a branded item and

    a corresponding private labeled item.

    Revenue premium for a branded item (b) compared toa private label (pl) =

    (volumeb)(priceb) (volumepl)(pricepl)

  • 8/9/2019 Chap02=Marcom & Brand Equity

    8/28

    8

    Source:Adapted from Kevin Lane Keller, Conceptualizing, Measuring, and Managing

    Customer-Based Brand Equity, Journal of Marketing57 (January 1993), 7.

    A Customer-Based Brand Equity

    Framework

  • 8/9/2019 Chap02=Marcom & Brand Equity

    9/28

    9

    The Brand Awareness Pyramid

    Source: David A. Aaker, Managing Brand Equity(New York: Free Press, 1991), 62.

  • 8/9/2019 Chap02=Marcom & Brand Equity

    10/28

    0

    Forms ofBrand KnowledgeForms ofBrand Knowledge

    Brand AwarenessWhether a brand name comes to mind when

    consumers think about a particular product category

    The ease with which the name is evoked

    Brand Image The types of associations that come to the

    consumers mind when contemplating a particular

    brand

    Top-of-Mind Awareness (TOMA)Occurs when a brand is the first brand that

    consumers recall when thinking about brands in a

    particular product category.

  • 8/9/2019 Chap02=Marcom & Brand Equity

    11/28

    11

    Brand AssociationsBrand Associations

    Positive

    Attributes

    Perceived

    Benefits

    Favorable

    Attitude

    Brand image

    associations that

    build brand equity

  • 8/9/2019 Chap02=Marcom & Brand Equity

    12/28

    12

    Dimensions ofBrand PersonalitiesDimensions ofBrand Personalities

    Excitement

    Sincerity

    RuggednessSophistication

    Competence

  • 8/9/2019 Chap02=Marcom & Brand Equity

    13/28

    13

    Ways of Enhancing Brand EquityWays of Enhancing Brand Equity

    Speak-for-Itself Message-Driven Leveraging

    Enhancing Brand

    Equity

  • 8/9/2019 Chap02=Marcom & Brand Equity

    14/28

    14

    Leveraging Brand Meaning from Various Sources

    Source: Kevin Lane Keller, Brand Synthesis: The Multidimensionality ofBrand Knowledge,

    Journal of Consumer Research 29 (March 2003), 598. By permission of the University of Chicago Press.

  • 8/9/2019 Chap02=Marcom & Brand Equity

    15/28

    15

    Types ofBranding for LeveragingTypes ofBranding for Leveraging

    CoCo--BrandingBranding

    A partnership between two brandsA partnership between two brands

    Ingredient BrandingIngredient Branding

    Inclusion of one brand within the otherInclusion of one brand within the other

  • 8/9/2019 Chap02=Marcom & Brand Equity

    16/28

    16

    What Benefits Result from EnhancingWhat Benefits Result from Enhancing

    Brand Equity?Brand Equity?

    Increased consumer loyaltyIncreased consumer loyalty

    LongLong--term growth and profitability for theterm growth and profitability for the

    brandbrand

    Maintain brand differentiation fromMaintain brand differentiation from

    competitive offeringscompetitive offerings

    Insulate brand from price competitionInsulate brand from price competition

  • 8/9/2019 Chap02=Marcom & Brand Equity

    17/28

    17

    Measuring WorldMeasuring World--Class BrandsClass Brands

    Quality Salience Equity

    Evaluating

    World-Class Brands

  • 8/9/2019 Chap02=Marcom & Brand Equity

    18/28

    18

    Characteristics of a WorldCharacteristics of a World--Class BrandClass Brand

    Delivers benefitsconsumers want

    Stays relevant

    Price equals value

    Good positioning

    Consistency

    Fits into brand portfolio

    Brand helps build brandequity

    Brands managers

    understand what the

    brand means toconsumers

    Support over long run

    Monitoring of the sources

    of brand equity

  • 8/9/2019 Chap02=Marcom & Brand Equity

    19/28

    19

    Interbrands Top 20 Global Brands, 2007

    Source: Interbrand Report, Best Global Brands 2007, http://www.interbrand.com/best_brands_2007.asp.

  • 8/9/2019 Chap02=Marcom & Brand Equity

    20/28

    20

    Affecting Behavior and AchievingAffecting Behavior and Achieving

    Marcom AccountabilityMarcom Accountability

    The Importance ofBrand Awareness

    Creating brand awareness and boosting brand image

    serve little positive effect unless individuals make

    purchases or engage in desired behaviors

    Marcoms objective is ultimately to affect sales

    volume and revenue

  • 8/9/2019 Chap02=Marcom & Brand Equity

    21/28

    21

    Measuring Marketing InvestmentMeasuring Marketing Investment

    PerformancePerformance

    Return on Marketing Investment (ROMI)

    Measures the effect of marcom, or of its specific

    elements such as advertising, in terms of whether it

    generates a reasonable revenue return on themarcom investment

    Why Measure Marcom Effectiveness?

    Demands for greater accountability on the marketing

    function To become better at marcom activities

  • 8/9/2019 Chap02=Marcom & Brand Equity

    22/28

    22

    Measuring Marketing InvestmentMeasuring Marketing Investment

    PerformancePerformance

    Difficulties in Measuring MarcomDifficulties in Measuring Marcom

    EffectivenessEffectiveness

    Choosing an appropriate metricChoosing an appropriate metric

    Gaining agreement on measuresGaining agreement on measures

    Collecting accurate data for marcom assessmentCollecting accurate data for marcom assessment

    Determining effects of specific marcom elementsDetermining effects of specific marcom elements

  • 8/9/2019 Chap02=Marcom & Brand Equity

    23/28

    23

    Difficulties in Measuring MarcomDifficulties in Measuring Marcom

    Effectiveness: Choosing a MetricEffectiveness: Choosing a Metric

    Change in

    brandawareness

    Improvement

    in attitudestoward

    the brand

    Increased

    purchaseintentions

    Larger salesvolume

    What to Measure?

  • 8/9/2019 Chap02=Marcom & Brand Equity

    24/28

    24

    Difficulties in Measuring MarcomDifficulties in Measuring Marcom

    Effectiveness: Gaining AgreementEffectiveness: Gaining Agreement

    Finance Departments

    Measures of Success:

    Discounted cashflows

    Net present values of

    investment decisions

    Marketing

    Departments

    Measures of Success:

    Measures of brand

    awareness, image,

    and equity

  • 8/9/2019 Chap02=Marcom & Brand Equity

    25/28

    25

    Difficulties in Measuring MarcomDifficulties in Measuring Marcom

    Effectiveness: Collecting Accurate DataEffectiveness: Collecting Accurate Data

    and Calibrating Special Effectsand Calibrating Special Effects

    What exact sales figures should be used to

    calculate sales?

    How much