Customer Based Brand Equity
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Transcript of Customer Based Brand Equity
BRAND
MANAGEMENT
IICUSTOMER BASED BRAND
EQUITY
CBBE
Differential effect that brand knowledge
has on customer response
CBBE is positive when customers react
favorably
CBBE is negative when customers react
less favorably
Key Ingredients
Differential effect
Brand knowledge
Consumer response
Associative Network Memory
Model
Associative Network Memory Model
Nodes- represent information or concepts
Links- represents the strength between 2
nodes
Sources of Brand Equity
CBBE occurs when a customer has a high
level of
1. Brand awareness
2. Brand familiarity
3. Has strong brand associations
Brand Knowledge
= Brand awareness + Brand Image
Brand Awareness- ability to identify the
brand under various circumstances
Brand Image- consumer’s perceptions
about a particular brand
Brand Awareness
Brand
Recognition
Brand
Recall
Brand
Awareness
Brand Awareness
Brand Recognition- prior exposure to the
brand given the brand as cue
Brand Recall – retrieve from memory
when given the product
category/purchase situation/ usage
situation
Brand Awareness Benefits
Learning
Consideration
Choice
Establishing Brand Awareness
Establishing Brand Awareness
Brand Image
Image- linked mainly to brand
associations
Building them up –
Brand attributes-------------Desirability
Brand Benefits--------------Deliverability
Four Steps of Brand Building
-Branding Ladder
Brand Identification
Brand Meaning
Consumer
Response
Brand Relationship
-Who are you ?
-What are you ?
-What I feel about you ?
-What about you & me ?
OBJECTIVES STAGES
Intense, active loyalty
Positive, accessible reactions
Points of Parity & Diff
Deep brand awareness
Brand Salience
Achieving the right identity
Measures the level of brand awareness
Brand Salience is the fundamental block-
necessary, but not sufficient
High salience- a brand having both
breadth & depth
Brand Salience
Breadth(range of purchase/usage
situations)
& Depth(likelihood of coming to mind)
Product Category
(product class-category-type-brand)
Strategic Implications
Brand Performance
Whether the product/service meets the consumer’s needs or not
5 Attributes:
• Primary ingredients & supplementary features
• Product- reliability, durability, serviceability
• Service- effectiveness, efficiency, empathy
• Style & Design
• Price
Brand Imagery
The way consumers think about a brand
Imagery Associations are formed via
experience or advertising
Maggi
Brand Imagery
Imagery based on demographics(gender-age-race-income)
Conditions or Situations wherein the brand should be bought/used(Snickers -Real Juice- Dominos)
Personality of a Brand (Red Bull Girls-Beer Shampoo-Vodafone Pug to ZooZoo)
Associations emanate from personal experiences
Brand Judgments
Consumer opinions about a brand
Brand Quality
Brand Credibility
Brand Consideration
Brand Superiority
Brand Feelings
Emotional response and reaction to a
brand
Feelings evoked by the marketing
program
E.g- Katrina – Slice and Choc-on Ads
Brand Feelings
Warmth (Vicks Vaporub)
Fun (Disney, Imagica)
Excitement (Mountain Dew)
Security (Insurance Ads)
Social Approval (NIIT, Luxury
Brands,Contraceptives)
Self-Respect (Dettol, Oral-B, Voter
Registration)
Brand Resonance
Level of relationship & identity with the
brand
• Behavioral Loyalty
• Attitudinal Attachment
• Sense of community
• Active Engagement
Creating Customer Equity
High Value Customer First
Product Mgmt to Customer Focused Mgmt
Add-ons & Cross selling
Reduce Customer Acquisition Costs
Track Marketing Programs
Relate branding to customer equity
Monitor retention of customers
Separate Marketing Plans
Relating Customer Equity to
Brand Equity
Customers drive the success of a brand
Brand are the links between the customer and the firm
Value is created due to differential customer response to marketing activities
Price premiums and brand loyalty generate cash flows for the firms
Brand Equity- emphasis on front end marketing - intangible value
Customer Equity-emphasis on back end marketing - revenues