module -2 madhu
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1MODULE -2
Customer Based Brand Equity: Customer Based Brand Equity-Meaning, Model of CBBE
Brand Equity: Meaning, Sources, Steps in Building Brands, Brand building blocks-Resonance, Judgments, Feelings, performance, imagery, salience-Brand Building Implications, David Aaker’s Brand Equity Model.
Brand Identity & Positioning : Meaning of Brand identity, Need for Identity &Positioning, Dimensions of brand identity, Brand identity prism.
Brand positioning – Meaning, Point of parity & Point of difference, Positioning guidelines.
Brand Value: Definition, Core Brand values, Brand mantras, Internal branding,
STRATEGIC BRAND MANAGEMENT
STRATEGIC BRAND MANAGEMENT
Customer-Based Brand Equity
This model introduced mainly to get answers for 2 questions.
What makes brand strong?
This model incorporates theoretical advances & managerial practices in understanding & influencing consumer behavior.
CBBE model provides a unique point of view as to what brand equity is & how it should be built, measured & managed.
It is the power of a brand lies in what resides in the minds of customers.
STRATEGIC BRAND MANAGEMENT
Customer-Based Brand Equity defined as the differential effect that brand knowledge has on consumer response to the marketing of that brand.
A brand has positive CBBE when consumer reacts more favorably to a product & the way it is marketed when the brand is identified.
This approaches brand equity from the perspective of the consumer, whether the consumer is an individual or an organization.
Determinants of Customer-Based Brand Equity:
Customer is aware of and familiar with the brand
Customer holds some strong, favorable, and unique brand associations in memory
STRATEGIC BRAND MANAGEMENT
Customer-based brand equity
Differential effect: brand equity arises form differences in consumer response, if no differences occur, then the brand-name product can essentially be classified as a commodity or a generic version of the product.
Customer brand knowledge: these differences in response are a result of consumers knowledge about the brands.
Customer response to brand marketing: customers differential response which make up brand equity are reflected in perception preferences, and behavior related to all aspects of brand marketing, including their choice of a brand, recall of copy points form an ad, response to a sale promotion and evaluation of a proposed brand extension.
12
Customer-Based Brand Equity as a “Bridge”
Customer-based brand equity represents the “added value” endowed to a product as a result of past investments in the marketing of a brand.
Customer-based brand equity provides direction and focus to future marketing activities.
According to this model consumer knowledge drives the differences that manifest themselves in terms of brand equity.
Brand equity provides marketers with a vital strategic bridge from their past to their future.
7
7
The initial choices for the brand elements.
The supporting marketing program and the manner by which the brand is integrated into it.
Other associations indirectly transferred to the brand by linking it to some other entities.
Building a strong brand involves a series of steps as part of a “branding ladder”
A strong brand is also characterized by a logically constructed set of brand “building blocks.”
Identifies areas of strength and weakness.
Provides guidance to marketing activities.
STRATEGIC BRAND MANAGEMENT
Enjoy greater brand loyalty, usage, and affinity.
Command larger price premiums.
Increase marketing communication effectiveness
Brand equity
A set of brand assets and liabilities linked to a brand.
Its name and symbol, that add to or subtract from the value provided by a product or service to a firm and/or to that firm` s customers. By: David Aaker.
Brand Equity the added values endowed to product or service. .
STRATEGIC BRAND MANAGEMENT
STRATEGIC BRAND MANAGEMENT
The brand equity concept stresses the importance of the brand in marketing strategies.
• Brand equity is defined in terms of the marketing effects uniquely attributable to the brand.
Brand equity relates to the fact that different outcomes result in the marketing of a product or service because of its brand name, as compared to if the same product or service did not have that name.
It should reflect not only the capitalized value of the incremental profits from the current use of the brand name but also the value of its potential extensions to other products.
STRATEGIC BRAND MANAGEMENT
• Use Satisfaction
• Brand Loyalty
Getting awareness of the brand and the meaning.
Making brand associations -- even the factory location in Saturn’s case.
Building perceived quality
Getting reseller support
Skillful design and implementation of marketing programs.
The capitalization on a well thought-out positioning.
Strong brand leadership position in the market place.
*
Brand Awareness
Brand Image
STRATEGIC BRAND MANAGEMENT
1. Brand Awareness
Brand Awareness is the ability of a potential buyer to recognize or recall that a brand is a member of a certain product category.
It involves 2 concepts.
Be different, memorable
Symbol exposure
Establishing of Brand Awareness
It is created by increasing the familiarity of the brand through repeated exposure i.e. the more a consumer experiences the brand by seeing it hearing it, thinking about it, the more likely the brand become registered in memory…
Offer set of associations.
Advantages of Brand Awareness
Learning advantages: the first way that brand awareness affects consumer decision making is try influencing the formation of strength of the brand associations that make up the brand image.
Consideration: consumers think of consider the brand whenever they are making a purchase.
Choice: it can affect choices among brands.
STRATEGIC BRAND MANAGEMENT
2. Brand image
Brand image is a positive brand image is created by marketing process that link strong, favorable & unique associations to the brand in memory.
Brand Association means A brand association is anything "linked" in memory to a brand.
It involves 3 concepts:
Strength of brand association
Favorability of brand association
Uniqueness of brand association: it involves Reputation, brand assets, loyalty, awareness.
STRATEGIC BRAND MANAGEMENT
Steps in brand building or brand development
Ensure identification of the brand with customers.
Firmly establish the totality of brand meaning in the minds of customers.
Elicit the proper customer responses to brand identification & brand meaning.
Convert brand response to create an intense, active loyalty relationship B/W customers to brand.
STRATEGIC BRAND MANAGEMENT
BRAND BUILDING BLOCKS
1.Performance Dimensions
It describes how well the product or service meets customers more functional needs, how well does the brand rate on objective assessments of quality ? To what extent does the brand satisfy utilitarian and economic customer needs what in the product or service.
Brand performance transcends the product ‘s ingredients and features to includes dimension that differentiate the brand often the strongest brand positioning relies on performance advantages of some kind and it is rare that a brand can overcome sever performance deficiencies.
Primary characteristics & supplementary features
Style and design
STRATEGIC BRAND MANAGEMENT
2. Imagery Dimensions
Brand imagery refers to more intangible aspects of the brand and consumers can form imagery association directly form their own experience or indirectly through advertising or by some other source of information such as word of mouth
User profiles
Type of channel, specific stores, ease of purchase
Time (day, week, month, year, etc.), location, and context of usage
Personality & values
STRATEGIC BRAND MANAGEMENT
3. Judgment Dimensions
Brand judgments are customers personal opinion about and evaluation of the brand which consumers form by putting together all the different brand performance an imagery associations.
4 types of judgments:
STRATEGIC BRAND MANAGEMENT
4. Feelings Dimensions
Brand feeling are customer emotional response and reactions to the brand, it also relate to the social currency evoked by the brand, what feeling are evoked by the marketing program for the brand or by other means???? How does the brand affect customers feelings about themselves & their relationships with others????
There are 6 important types of Brand Building Feelings:
Warmth
Fun
Excitement
Security
5.Resonance Dimensions
Brand resonance : the final step of the model focuses on the ultimate relationship and level of identification that the customer has with the brand it describe the nature of this relationship and the extent to which customers feel that they are “in sync” with the brand
Behavioral loyalty
Attitudinal attachment
Proud of brand
Sense of community
STRATEGIC BRAND MANAGEMENT
Salience Dimensions
Achieving the right brand identity means creating brand salience with customers, brand salience measures awareness of brand.
Depth of brand awareness
Ease of recognition & recall.
Breadth of brand awareness
It measure the range of Purchase consideration and usage situations in which the brand elements comes to mind & depends to a large extent on the org’n of brand and product knowledge in memory.
Consumption consideration.
Brands should have a duality.
Brands should have richness.
STRATEGIC BRAND MANAGEMENT
DAVID AAKER’S BRAND EQUITY
Aaker defines BE as a set of five categories of brand assets & liabilities linked to a brand, its name & symbol that add to or subtract from the value provided by a product or service to a firm or to that firms customers or both.
5 levels are as follows
Brand loyalty.
Brand Awareness
Perceived Quality
Brand Associations
STRATEGIC BRAND MANAGEMENT
Brand Identity & Positioning
Brand identity: brand identity is a unique set of brand associations that the brand strategist aspires to create or maintain these associations represent what the brand stands for & imply a promise to customers from the organization members.
Brand Identity Should Help Establish A Relationship Between The Brand & The Customer By Generating A Value Proposition Involving Functional, Emotional, Or Self-expressive Benefits.
STRATEGIC BRAND MANAGEMENT
CONSISTS OF 12 DIMENSIONS OF BRAND ORGANIZED AROUND 4 PERSPECTIVES:
As a product: product scope, product attributes, quality/value, uses, user, country of origin.
As an organization: organizational attributes, local vs. global
As a person: brand personality, brand-customer relationships.
As a symbol: visual imagery/metaphors, heritage
CORE & EXTENDED IDENTITY:
Core identity: central timeless essence of the brand – remains constant as brand travels to new markets/products.
Extended identity: includes various brand identity elements, organised into cohesive & meaningful groups.
STRATEGIC BRAND MANAGEMENT
KAPFERER represents brand identity diagrammatically as a six-sided prism as shown below:
Internalisation
Externalisation
STRATEGIC BRAND MANAGEMENT
Physique according to him is the basis of the brand. Product features, symbols & attributes
E.G. the physique of Philips is “technology and reliability” while for the brand Tata it is “trust”
Personality is same as Aaker, it answers the question “what happens to this brand when it becomes a person?” Character & attitude
Culture symbolizes the organization, its country-of-origin and the values it stands for. Set of Values
E.G. traditional brands like balsara, dabur and zandu.
STRATEGIC BRAND MANAGEMENT
Relationship is the handshake between consumer and the organisation. Beliefs & association
E.G. the relationship with “safola” is safety.
Reflection is the consumer’s perception for what the brands stands for. Customer’s view of the brand
E.G. coke’s image more attract youth.
Self-image is what the consumer think of himself. Internal mirror of customer as user of brand
E.G. benz Car owner think that since he has bought the car he is treating himself to one of the best car in the world.
STRATEGIC BRAND MANAGEMENT
For Sify India let us look at how they have
built the brand basis the Kapferer Model
Physical
Reflection
STRATEGIC BRAND MANAGEMENT
Is at the heart of the marketing strategy.
“. . . the act of designing the company’s offer and image so that it occupies a distinct and valued place in the target customer’s minds.” Philip Kotler
STRATEGIC BRAND MANAGEMENT
Target Market
STRATEGIC BRAND MANAGEMENT
Target Market
A market is the set of all actual and potential buyers who have sufficient interest in, income for, and access to a product.
Market segmentation divides the market into distinct groups of homogeneous consumers who have similar needs and consumer behavior, and who thus require similar marketing mixes.
Market segmentation requires making tradeoffs between costs and benefits.
Criteria for Segmentation:
Size: Is there adequate sales potential in the segment?
Accessibility: Are specialized distribution outlets and communication media available to reach the segment?
Responsiveness: How favorably will the segment respond to a tailored marketing program?
STRATEGIC BRAND MANAGEMENT
2. Nature of Competition
Deciding to target a certain type of consumer often defines the nature of competition.
Competition takes place on other bases of course such as channels of distribution it also analysis considers a whole host of factors including the resources capabilities and likely intentions of various other firms in order for marketers to choose markets where consumers can be profitably served .
Do not define competition too narrowly.
STRATEGIC BRAND MANAGEMENT
3. Points of Parity and Points of Difference
1. Points of Difference Associations: are attributes or benefits that consumers strongly associate with a brand, positively evaluate, & believe that they could not find to the same extent with a competitive brand.
2. Points of Parity Associations: are those associations designed to negate competitors POD.
3. Points of Parity versus Points of Difference: consumers must believe that the brand is good enough on that dimensions.
STRATEGIC BRAND MANAGEMENT
4. Updating Positioning Over Time.
STRATEGIC BRAND MANAGEMENT
1. Defining and Communicating the Competitive Frame of Reference:
A starting point in defining a competitive frame of reference for brand positioning is to determine Category Membership. Membership indicates the products or set of products with which a brand competes. Communicating category membership informs the consumer about the goals that they might achieve by using a product or service.
STRATEGIC BRAND MANAGEMENT
2. Choosing Points of Parity and Points of Difference
Points of Parity: These are driven by the needs of category membership and the necessity of negating competitors’ PODs.
Points of Difference: These are based on the following criteria:
1. Desirability: In terms of a) Relevance
b) Distinctiveness, and c) Believablity
2. Deliverability: In terms of a) Feasibility
b) Communicability, and c) Sustainability
STRATEGIC BRAND MANAGEMENT
3. Establishing Points of Parity and Points of Difference:
1. Separate the attributes: Launch two marketing campaigns, each one devoted to a different brand attribute or benefit.
2. Leverage Equity of another Entity: Link the brand with a well-liked celebrity, cause or event.
3. Redefine the Relationship: Use attitude change strategies to convert negative perspectives about the brand to positive ones.
STRATEGIC BRAND MANAGEMENT
4. Updating Positioning Over Time
1. Laddering: This strategy is to deepen the meaning of the brand to tap into core brand values or other more abstract considerations.
2. Reacting: This could imply no reaction to moderate or significant reactions depending on level of competitive threat.
STRATEGIC BRAND MANAGEMENT
Brand Value
Value defines as the worth in usefulness or importance to the possessor.
Brand value is the assessment of all you get in return for all that you give.
Value is what the buyers are willing to pay it.
Value is the perceived worth of a set of benefits received by a customer in exchange for the total cost of an offering taking into consideration available competitive offerings & price.
STRATEGIC BRAND MANAGEMENT
1. Core Brand Values
Set of abstract concepts or phrases that characterize the five to ten most important dimensions of the mental map of a brand
Relate to points-of-parity and points-of-difference
Mental map Core brand values Brand mantra.
Mental map accurately portrays in detail all salient brand associations & responses for a particular target market.
Defining & establishing Brand mantra
An articulation of the “heart and soul” of the brand.
similar to “brand essence” or “core brand promise”.
Short three- to five-word phrases that capture the irrefutable (certain , unquestionable ) essence or spirit of the brand positioning and brand values.
It involves 2 concepts
Designing A brand mantras
Implementing a brand mantras
What makes a good brand mantra??
The term brand functions describes the nature of the product or service or the type of experiences or benefits the brand provides.
The descriptive modifier further clarifies its nature.
The emotional modifier provides another qualifier—how exactly does the brand provide benefits, and in what way?
2. Implementing a brand mantras
Communicate: a good mantra should both define the category of business to set the brand boundaries and clarify what is unique about the brand.
Simplify: an effective brand mantra should memorable ,i.e. it should be short, crisp .
Inspire: it should also stake out ground i.e. personally meaningful and relevant to as many employee as possible.
STRATEGIC BRAND MANAGEMENT
STRATEGIC BRAND MANAGEMENT
3. Internal Branding
Members of the organization are properly aligned with the brand and what it represents.
STRATEGIC BRAND MANAGEMENT
Externally, consumer-focused assessment.
A comprehensive examination of a brand involving activities to assess the health of the brand, uncover its sources of equity, and suggest ways to improve and leverage that equity.
It includes brand vision, mission, promise, values, position, personality, and performance.
Importance of Brand Audits
Firm perspective
Consumer perspective
Recommend marketing programs to maximize long-term brand equity
20
STRATEGIC BRAND MANAGEMENT
Brand Audit Steps
Brand inventory (supply side): it provide a current comprehensive profile of how all the products & services sold by a company are marketed and branded
Brand exploratory (demand side): although the supply-side view revealed by the brand inventory is useful actual consumer perceptions.
The brand exploratory is research directed to understanding what consumers think and feel about the brand and its corresponding product category in order to identify sources of brand equity.
20
Customer Based Brand Equity: Customer Based Brand Equity-Meaning, Model of CBBE
Brand Equity: Meaning, Sources, Steps in Building Brands, Brand building blocks-Resonance, Judgments, Feelings, performance, imagery, salience-Brand Building Implications, David Aaker’s Brand Equity Model.
Brand Identity & Positioning : Meaning of Brand identity, Need for Identity &Positioning, Dimensions of brand identity, Brand identity prism.
Brand positioning – Meaning, Point of parity & Point of difference, Positioning guidelines.
Brand Value: Definition, Core Brand values, Brand mantras, Internal branding,
STRATEGIC BRAND MANAGEMENT
STRATEGIC BRAND MANAGEMENT
Customer-Based Brand Equity
This model introduced mainly to get answers for 2 questions.
What makes brand strong?
This model incorporates theoretical advances & managerial practices in understanding & influencing consumer behavior.
CBBE model provides a unique point of view as to what brand equity is & how it should be built, measured & managed.
It is the power of a brand lies in what resides in the minds of customers.
STRATEGIC BRAND MANAGEMENT
Customer-Based Brand Equity defined as the differential effect that brand knowledge has on consumer response to the marketing of that brand.
A brand has positive CBBE when consumer reacts more favorably to a product & the way it is marketed when the brand is identified.
This approaches brand equity from the perspective of the consumer, whether the consumer is an individual or an organization.
Determinants of Customer-Based Brand Equity:
Customer is aware of and familiar with the brand
Customer holds some strong, favorable, and unique brand associations in memory
STRATEGIC BRAND MANAGEMENT
Customer-based brand equity
Differential effect: brand equity arises form differences in consumer response, if no differences occur, then the brand-name product can essentially be classified as a commodity or a generic version of the product.
Customer brand knowledge: these differences in response are a result of consumers knowledge about the brands.
Customer response to brand marketing: customers differential response which make up brand equity are reflected in perception preferences, and behavior related to all aspects of brand marketing, including their choice of a brand, recall of copy points form an ad, response to a sale promotion and evaluation of a proposed brand extension.
12
Customer-Based Brand Equity as a “Bridge”
Customer-based brand equity represents the “added value” endowed to a product as a result of past investments in the marketing of a brand.
Customer-based brand equity provides direction and focus to future marketing activities.
According to this model consumer knowledge drives the differences that manifest themselves in terms of brand equity.
Brand equity provides marketers with a vital strategic bridge from their past to their future.
7
7
The initial choices for the brand elements.
The supporting marketing program and the manner by which the brand is integrated into it.
Other associations indirectly transferred to the brand by linking it to some other entities.
Building a strong brand involves a series of steps as part of a “branding ladder”
A strong brand is also characterized by a logically constructed set of brand “building blocks.”
Identifies areas of strength and weakness.
Provides guidance to marketing activities.
STRATEGIC BRAND MANAGEMENT
Enjoy greater brand loyalty, usage, and affinity.
Command larger price premiums.
Increase marketing communication effectiveness
Brand equity
A set of brand assets and liabilities linked to a brand.
Its name and symbol, that add to or subtract from the value provided by a product or service to a firm and/or to that firm` s customers. By: David Aaker.
Brand Equity the added values endowed to product or service. .
STRATEGIC BRAND MANAGEMENT
STRATEGIC BRAND MANAGEMENT
The brand equity concept stresses the importance of the brand in marketing strategies.
• Brand equity is defined in terms of the marketing effects uniquely attributable to the brand.
Brand equity relates to the fact that different outcomes result in the marketing of a product or service because of its brand name, as compared to if the same product or service did not have that name.
It should reflect not only the capitalized value of the incremental profits from the current use of the brand name but also the value of its potential extensions to other products.
STRATEGIC BRAND MANAGEMENT
• Use Satisfaction
• Brand Loyalty
Getting awareness of the brand and the meaning.
Making brand associations -- even the factory location in Saturn’s case.
Building perceived quality
Getting reseller support
Skillful design and implementation of marketing programs.
The capitalization on a well thought-out positioning.
Strong brand leadership position in the market place.
*
Brand Awareness
Brand Image
STRATEGIC BRAND MANAGEMENT
1. Brand Awareness
Brand Awareness is the ability of a potential buyer to recognize or recall that a brand is a member of a certain product category.
It involves 2 concepts.
Be different, memorable
Symbol exposure
Establishing of Brand Awareness
It is created by increasing the familiarity of the brand through repeated exposure i.e. the more a consumer experiences the brand by seeing it hearing it, thinking about it, the more likely the brand become registered in memory…
Offer set of associations.
Advantages of Brand Awareness
Learning advantages: the first way that brand awareness affects consumer decision making is try influencing the formation of strength of the brand associations that make up the brand image.
Consideration: consumers think of consider the brand whenever they are making a purchase.
Choice: it can affect choices among brands.
STRATEGIC BRAND MANAGEMENT
2. Brand image
Brand image is a positive brand image is created by marketing process that link strong, favorable & unique associations to the brand in memory.
Brand Association means A brand association is anything "linked" in memory to a brand.
It involves 3 concepts:
Strength of brand association
Favorability of brand association
Uniqueness of brand association: it involves Reputation, brand assets, loyalty, awareness.
STRATEGIC BRAND MANAGEMENT
Steps in brand building or brand development
Ensure identification of the brand with customers.
Firmly establish the totality of brand meaning in the minds of customers.
Elicit the proper customer responses to brand identification & brand meaning.
Convert brand response to create an intense, active loyalty relationship B/W customers to brand.
STRATEGIC BRAND MANAGEMENT
BRAND BUILDING BLOCKS
1.Performance Dimensions
It describes how well the product or service meets customers more functional needs, how well does the brand rate on objective assessments of quality ? To what extent does the brand satisfy utilitarian and economic customer needs what in the product or service.
Brand performance transcends the product ‘s ingredients and features to includes dimension that differentiate the brand often the strongest brand positioning relies on performance advantages of some kind and it is rare that a brand can overcome sever performance deficiencies.
Primary characteristics & supplementary features
Style and design
STRATEGIC BRAND MANAGEMENT
2. Imagery Dimensions
Brand imagery refers to more intangible aspects of the brand and consumers can form imagery association directly form their own experience or indirectly through advertising or by some other source of information such as word of mouth
User profiles
Type of channel, specific stores, ease of purchase
Time (day, week, month, year, etc.), location, and context of usage
Personality & values
STRATEGIC BRAND MANAGEMENT
3. Judgment Dimensions
Brand judgments are customers personal opinion about and evaluation of the brand which consumers form by putting together all the different brand performance an imagery associations.
4 types of judgments:
STRATEGIC BRAND MANAGEMENT
4. Feelings Dimensions
Brand feeling are customer emotional response and reactions to the brand, it also relate to the social currency evoked by the brand, what feeling are evoked by the marketing program for the brand or by other means???? How does the brand affect customers feelings about themselves & their relationships with others????
There are 6 important types of Brand Building Feelings:
Warmth
Fun
Excitement
Security
5.Resonance Dimensions
Brand resonance : the final step of the model focuses on the ultimate relationship and level of identification that the customer has with the brand it describe the nature of this relationship and the extent to which customers feel that they are “in sync” with the brand
Behavioral loyalty
Attitudinal attachment
Proud of brand
Sense of community
STRATEGIC BRAND MANAGEMENT
Salience Dimensions
Achieving the right brand identity means creating brand salience with customers, brand salience measures awareness of brand.
Depth of brand awareness
Ease of recognition & recall.
Breadth of brand awareness
It measure the range of Purchase consideration and usage situations in which the brand elements comes to mind & depends to a large extent on the org’n of brand and product knowledge in memory.
Consumption consideration.
Brands should have a duality.
Brands should have richness.
STRATEGIC BRAND MANAGEMENT
DAVID AAKER’S BRAND EQUITY
Aaker defines BE as a set of five categories of brand assets & liabilities linked to a brand, its name & symbol that add to or subtract from the value provided by a product or service to a firm or to that firms customers or both.
5 levels are as follows
Brand loyalty.
Brand Awareness
Perceived Quality
Brand Associations
STRATEGIC BRAND MANAGEMENT
Brand Identity & Positioning
Brand identity: brand identity is a unique set of brand associations that the brand strategist aspires to create or maintain these associations represent what the brand stands for & imply a promise to customers from the organization members.
Brand Identity Should Help Establish A Relationship Between The Brand & The Customer By Generating A Value Proposition Involving Functional, Emotional, Or Self-expressive Benefits.
STRATEGIC BRAND MANAGEMENT
CONSISTS OF 12 DIMENSIONS OF BRAND ORGANIZED AROUND 4 PERSPECTIVES:
As a product: product scope, product attributes, quality/value, uses, user, country of origin.
As an organization: organizational attributes, local vs. global
As a person: brand personality, brand-customer relationships.
As a symbol: visual imagery/metaphors, heritage
CORE & EXTENDED IDENTITY:
Core identity: central timeless essence of the brand – remains constant as brand travels to new markets/products.
Extended identity: includes various brand identity elements, organised into cohesive & meaningful groups.
STRATEGIC BRAND MANAGEMENT
KAPFERER represents brand identity diagrammatically as a six-sided prism as shown below:
Internalisation
Externalisation
STRATEGIC BRAND MANAGEMENT
Physique according to him is the basis of the brand. Product features, symbols & attributes
E.G. the physique of Philips is “technology and reliability” while for the brand Tata it is “trust”
Personality is same as Aaker, it answers the question “what happens to this brand when it becomes a person?” Character & attitude
Culture symbolizes the organization, its country-of-origin and the values it stands for. Set of Values
E.G. traditional brands like balsara, dabur and zandu.
STRATEGIC BRAND MANAGEMENT
Relationship is the handshake between consumer and the organisation. Beliefs & association
E.G. the relationship with “safola” is safety.
Reflection is the consumer’s perception for what the brands stands for. Customer’s view of the brand
E.G. coke’s image more attract youth.
Self-image is what the consumer think of himself. Internal mirror of customer as user of brand
E.G. benz Car owner think that since he has bought the car he is treating himself to one of the best car in the world.
STRATEGIC BRAND MANAGEMENT
For Sify India let us look at how they have
built the brand basis the Kapferer Model
Physical
Reflection
STRATEGIC BRAND MANAGEMENT
Is at the heart of the marketing strategy.
“. . . the act of designing the company’s offer and image so that it occupies a distinct and valued place in the target customer’s minds.” Philip Kotler
STRATEGIC BRAND MANAGEMENT
Target Market
STRATEGIC BRAND MANAGEMENT
Target Market
A market is the set of all actual and potential buyers who have sufficient interest in, income for, and access to a product.
Market segmentation divides the market into distinct groups of homogeneous consumers who have similar needs and consumer behavior, and who thus require similar marketing mixes.
Market segmentation requires making tradeoffs between costs and benefits.
Criteria for Segmentation:
Size: Is there adequate sales potential in the segment?
Accessibility: Are specialized distribution outlets and communication media available to reach the segment?
Responsiveness: How favorably will the segment respond to a tailored marketing program?
STRATEGIC BRAND MANAGEMENT
2. Nature of Competition
Deciding to target a certain type of consumer often defines the nature of competition.
Competition takes place on other bases of course such as channels of distribution it also analysis considers a whole host of factors including the resources capabilities and likely intentions of various other firms in order for marketers to choose markets where consumers can be profitably served .
Do not define competition too narrowly.
STRATEGIC BRAND MANAGEMENT
3. Points of Parity and Points of Difference
1. Points of Difference Associations: are attributes or benefits that consumers strongly associate with a brand, positively evaluate, & believe that they could not find to the same extent with a competitive brand.
2. Points of Parity Associations: are those associations designed to negate competitors POD.
3. Points of Parity versus Points of Difference: consumers must believe that the brand is good enough on that dimensions.
STRATEGIC BRAND MANAGEMENT
4. Updating Positioning Over Time.
STRATEGIC BRAND MANAGEMENT
1. Defining and Communicating the Competitive Frame of Reference:
A starting point in defining a competitive frame of reference for brand positioning is to determine Category Membership. Membership indicates the products or set of products with which a brand competes. Communicating category membership informs the consumer about the goals that they might achieve by using a product or service.
STRATEGIC BRAND MANAGEMENT
2. Choosing Points of Parity and Points of Difference
Points of Parity: These are driven by the needs of category membership and the necessity of negating competitors’ PODs.
Points of Difference: These are based on the following criteria:
1. Desirability: In terms of a) Relevance
b) Distinctiveness, and c) Believablity
2. Deliverability: In terms of a) Feasibility
b) Communicability, and c) Sustainability
STRATEGIC BRAND MANAGEMENT
3. Establishing Points of Parity and Points of Difference:
1. Separate the attributes: Launch two marketing campaigns, each one devoted to a different brand attribute or benefit.
2. Leverage Equity of another Entity: Link the brand with a well-liked celebrity, cause or event.
3. Redefine the Relationship: Use attitude change strategies to convert negative perspectives about the brand to positive ones.
STRATEGIC BRAND MANAGEMENT
4. Updating Positioning Over Time
1. Laddering: This strategy is to deepen the meaning of the brand to tap into core brand values or other more abstract considerations.
2. Reacting: This could imply no reaction to moderate or significant reactions depending on level of competitive threat.
STRATEGIC BRAND MANAGEMENT
Brand Value
Value defines as the worth in usefulness or importance to the possessor.
Brand value is the assessment of all you get in return for all that you give.
Value is what the buyers are willing to pay it.
Value is the perceived worth of a set of benefits received by a customer in exchange for the total cost of an offering taking into consideration available competitive offerings & price.
STRATEGIC BRAND MANAGEMENT
1. Core Brand Values
Set of abstract concepts or phrases that characterize the five to ten most important dimensions of the mental map of a brand
Relate to points-of-parity and points-of-difference
Mental map Core brand values Brand mantra.
Mental map accurately portrays in detail all salient brand associations & responses for a particular target market.
Defining & establishing Brand mantra
An articulation of the “heart and soul” of the brand.
similar to “brand essence” or “core brand promise”.
Short three- to five-word phrases that capture the irrefutable (certain , unquestionable ) essence or spirit of the brand positioning and brand values.
It involves 2 concepts
Designing A brand mantras
Implementing a brand mantras
What makes a good brand mantra??
The term brand functions describes the nature of the product or service or the type of experiences or benefits the brand provides.
The descriptive modifier further clarifies its nature.
The emotional modifier provides another qualifier—how exactly does the brand provide benefits, and in what way?
2. Implementing a brand mantras
Communicate: a good mantra should both define the category of business to set the brand boundaries and clarify what is unique about the brand.
Simplify: an effective brand mantra should memorable ,i.e. it should be short, crisp .
Inspire: it should also stake out ground i.e. personally meaningful and relevant to as many employee as possible.
STRATEGIC BRAND MANAGEMENT
STRATEGIC BRAND MANAGEMENT
3. Internal Branding
Members of the organization are properly aligned with the brand and what it represents.
STRATEGIC BRAND MANAGEMENT
Externally, consumer-focused assessment.
A comprehensive examination of a brand involving activities to assess the health of the brand, uncover its sources of equity, and suggest ways to improve and leverage that equity.
It includes brand vision, mission, promise, values, position, personality, and performance.
Importance of Brand Audits
Firm perspective
Consumer perspective
Recommend marketing programs to maximize long-term brand equity
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STRATEGIC BRAND MANAGEMENT
Brand Audit Steps
Brand inventory (supply side): it provide a current comprehensive profile of how all the products & services sold by a company are marketed and branded
Brand exploratory (demand side): although the supply-side view revealed by the brand inventory is useful actual consumer perceptions.
The brand exploratory is research directed to understanding what consumers think and feel about the brand and its corresponding product category in order to identify sources of brand equity.
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