module - 5 madhu

32
STRATEGIC BRAND MANAGEMENT Measuring Brand Equity Measuring Brand Equity MODULE-5 MODULE-5

Upload: sahil-goutham

Post on 17-Dec-2015

238 views

Category:

Documents


2 download

DESCRIPTION

presentation

TRANSCRIPT

1STRATEGIC BRAND MANAGEMENT
There are 2 sources of Measuring Brand equity
Qualitative research techniques.
Quantitative Research Techniques.
STRATEGIC BRAND MANAGEMENT
Qualitative research techniques
Qualitative research techniques often identify possible brand association & sources of brand equity .
Qualitative research techniques are relatively instructed measurement approaches that permit a range of possible consumer responses, because of the freedom afforded both researchers in their probes and consumers in their responses, qualitative research can often be a useful first step in exploring consumer brand and product perceptions.
STRATEGIC BRAND MANAGEMENT
Free associations
Projective techniques
STRATEGIC BRAND MANAGEMENT
1. Free associations
Marketers use free associations tasks mainly to identify the range of possible brand associations in consumers minds but free association may also provide some rough indication of the relative strength, favorability and uniqueness of brand associations.
It involves some questions
What do you like best about the brand? What are its positive aspects?
What do you dislike? What are its disadvantages?
What do you find unique about the brand? How is it different from other brands? In what ways is it the same?
The two main issues to consider in conducting free association tasks are what types of probes to give data.
STRATEGIC BRAND MANAGEMENT
2. Projective techniques
Indirect form of data collection.
Consumers might feel that it would be socially unacceptable to express their true feelings
Diagnostic (problem solving , analytical ) tools to uncover the true opinions and feelings of consumers when they are unwilling or otherwise unable to express themselves on these matters.
Marketers present consumers with an incomplete stimulus and ask them to complete it, or they give consumers an ambiguous stimulus and ask them to make sense of it. The idea is that in the process consumers will reveal some of their true beliefs and feelings, thus projective techniques can be especially useful when deeply rooted personal motivations or personally or socially sensitive subjects are at issue.
Types of PT: Completion and interpretation tasks
Comparison tasks
ZMET is “a technique for eliciting(producing) interconnected constructs that influence thought and behavior.”
One interesting new approach to better understand how consumers view brands is the ZMET it is based on a belief that consumers often have subconscious motives for their purchasing behavior.
A ZMET study starts with a group of participants who are asked in advance to think about the research topic at hand and select a minimum of 12 images from their own sources that represent their thoughts and feelings about the research topic.
STRATEGIC BRAND MANAGEMENT
The guided conversation consists of a series of steps that includes some or all of the following:
Story telling
Missed images
Sorting task
Construct elicitation
Vignette
ZMET is useful in understanding consumer images of brands, products, companies , brand equity, product concepts & design, product usage & purchase experiences, life experience consumption context and attitudes towards business
STRATEGIC BRAND MANAGEMENT
4. Brand Personality and Values
Brand personality refers to the human characteristics or traits that can be attributed to a brand.
The Big Five
Excitement (daring, spirited, imaginative, and up-to-date)
Competence (reliable, intelligent, and successful)
Sophistication (style, superiority ) (upper class and charming)
Ruggedness (roughness, gentleness) (outdoorsy and tough)
STRATEGIC BRAND MANAGEMENT
5. Experiential Methods
By tapping more directly into their actual home, work, or shopping behaviors, researchers might be able to elicit more meaningful responses from consumers.
Advocates of the experiential approach have sent researchers to consumers’ homes in the morning to see how they approach their days, given business travelers Polaroid cameras and diaries to capture their feelings when in hotel rooms, and conducted “beeper studies” in which participants are instructed to write down what they’re doing when they are paged.
STRATEGIC BRAND MANAGEMENT
Drawbacks of Qualitative Techniques
The in-depth insight that emerge have to be tempered by the realization that the sample are often very small & may not necessarily generalize the broader population.
It leads to obtain different conclusions.
Qualitative research techniques are a creative means of ascertaining consumer perceptions that may otherwise be difficult to uncover, the range of possible qualitative research techniques is limited only by the creativity of the marketing researcher.
STRATEGIC BRAND MANAGEMENT
2. Quantitative Research Techniques
QR typically employs various types of scale question form which researcher can draw numerical representation an summaries.
Types of QRT
Awareness
Recognition
Ability of consumers to identify the brand (and its elements) under various circumstances
Brand recognition is especially important for packaging and some marketing researchers have used creative means to assess the visibility of package design……
Recall
Ability of consumers to retrieve (get back, regain) the actual brand elements from memory
Unaided vs. aided recall
Corrections for guessing
Any research measure must consider the issue of consumers making up responses or guessing.
Strategic implications
The advantage of aided recall measures is that they yield insight into how brand knowledge is organized in memory and what kind of cues or reminders may be necessary for consumers to be able to retrieve the brand from memory.
The important point to note is that the category structure that exists in consumers’ minds—as reflected by brand recall performance—can have profound implications for consumer choice and marketing strategy.
STRATEGIC BRAND MANAGEMENT
Image
One vitally important aspect of the brand is its image, as reflected by the associations that consumers hold for it.
Ask open-ended questions to tap into the strength, favorability, and uniqueness of brand associations. It involves 2 considerations.
These associations should be rated on scales for quantitative analysis.
Other approaches: a more complicated quantitative techniques to assess overall brand uniqueness is multidimensional scaling, or perceptual maps, MDS is a procedure for determining the perceived relative images of a set of objects such as product or brands, MDS transforms consumer judgment of similarity or preference into distance represented in perceptual space.
STRATEGIC BRAND MANAGEMENT
Brand Responses
The purpose of measuring more general higher-level considerations is to find out how consumer combine all the more specific lower-level consideration about the brand in their minds to form different types of brand responses and evaluation.
To measuring brand equity with a combination of four key brand response constructs:
Relative barrier or brand price
Brand quality perceptions
Brand purchase loyalty
STRATEGIC BRAND MANAGEMENT
Research in psychology suggests that purchase intentions are most likely to be predictive of actual purchase when there is correspondence between the two in the following categories:
Purchase Intentions
Action (buying for own use or to give as a gift)
Target (specific type of product and brand)
Context (in what type of store based on what prices and other conditions)
Time (within a week, month, or year)
STRATEGIC BRAND MANAGEMENT
Brand Relationships
Behavioral loyalty
Brand substitutability:
Other brand resonance dimensions: although attitudinal attachment may require a fairly straightforward set of question both sense of community and active engagement could call for more varied measures because of their more diverse set of issues.
Fourniers Brand relationship Research: 6 facets of Brand relationship quality……
Interdependence
Comprehensive Models of Customer-Based Brand Equity
Brand dynamics: The Brand Dynamics model adopts a hierarchical approach to determine the strength of relationship a consumer has with a brand..
The five levels of the model are:
Presence
Relevance
Performance
Advantage
Bonding
2. Equity engines: This model delineates three key dimensions of brand affinity—the emotional and intangible benefits of a brand—as follows:
Authority: The reputation of a brand, whether as a long-standing leader or as a pioneer in innovation.
Identification: The closeness customers feel for a brand and how well they feel the brand matches their personal needs
Approval: The way a brand fits into the wider social matrix and the intangible status it holds for experts and friends.
STRATEGIC BRAND MANAGEMENT
2 methods
Comparative Methods
Holistic Methods
STRATEGIC BRAND MANAGEMENT
1. Comparative Methods
Comparative Methods are research studies or experiments that examine consumer attitudes and behavior toward a brand to directly estimate the benefits arising form having a high level of awareness and strong favorable and unique brand associations.
It involves 3 techniques:
Brand-Based Approaches
Competitive brand can be useful benchmarks in brand-based comparative approaches, although consumers may interpret marketing activity for a fictitiously named or unnamed version of the product or service in terms of their general product category knowledge they may also have a particular brand.
The marketing element under consideration is fixed.
Consumer response is examined based on changes in brand identification.
Example: Blind testing
Advantage: Isolates the value of the brand
Disadvantage: The totality of what is learned depends on how many applications are examined.
STRATEGIC BRAND MANAGEMENT
Marketing-Based Approaches
The brand is held fixed and consumer response is examined based on changes in marketing programs.
Applications: Explore price premiums’ effect on switching, consumer evaluations of marketing activities, brand extensions, etc.
Advantage: Ease of implementation
Disadvantage: Difficult to determine whether consumer responses are caused by brand knowledge or generic product knowledge
STRATEGIC BRAND MANAGEMENT
A survey-based multivariate technique that enables marketers to profile the consumer decision process with respect to products and brands
Helps researchers determine the trade-offs consumers make between brand attributes
Applications: Assess advertising effectiveness and brand value; analyze brand/price trade-off
Advantage: Allows for different brands or different aspects of the product to be analyzed simultaneously
Disadvantage: May violate consumers’ expectations based on what they already know about brands
STRATEGIC BRAND MANAGEMENT
2. Holistic Methods
We use comparative methods to approximate specific benefits of brand equity, holistic methods place an overall value on the brand in either abstract utility terms or concrete financial terms.
Attempt to place an overall value on the brand in either abstract utility terms or concrete financial terms
Net out various considerations to determine the unique contribution of the brand
Holistic methods:
Residual approaches
Valuation approaches
Residual Approaches
Examine the value of the brand by subtracting consumers’ preferences based on physical product attributes alone from their overall brand preferences.
Advantage: Useful benchmark for interpreting brand equity, especially from a financially oriented perspective.
Disadvantage: Static view. Limited diagnostic value for strategic decision making..
2 types of RA:
Attribute perception Biased component
STRATEGIC BRAND MANAGEMENT
Valuation Approaches
Attempt to place a financial value on brand equity for accounting purposes
Useful in cases of mergers and acquisitions, brand licensing, fund raising, and brand management decisions
Valuation approaches types:
STRATEGIC BRAND MANAGEMENT
Accounting Background
Intangible assets are typically lumped under the heading of goodwill and include things such as patents, trademarks, and licensing agreements, as well as “softer” considerations such as the skill of the management and customer relations.
In an acquisition, the goodwill item often includes a premium paid to gain control, which, in certain instances, may even exceed the value of tangible and intangible assets
STRATEGIC BRAND MANAGEMENT
Historical Perspectives
In Australia Rupert Murdoch’s News Corporation included a valuation of some of its magazines on its balance sheets in 1984.
British firms used brand values primarily to boost their balance sheets.
In the United States, generally accepted accounting principles (blanket amortization principles) mean that placing a brand on the balance sheet would require amortization of that asset for up to 40 years. Such a charge would severely hamper firm profitability; as a result, firms avoid such accounting maneuvers.
STRATEGIC BRAND MANAGEMENT
General Approaches
In determining the value of a brand in an acquisition or merger, firms can choose from three main approaches:
Cost approach: Brand equity is the amount of money that would be required to reproduce or replace the brand
Market approach: The present value of the future economic benefits to be derived by the owner of the asset
Income approach: The discounted future cash flow from the future earnings stream for the brand
STRATEGIC BRAND MANAGEMENT
Interbrand’s Brand Valuation
Assumes that brand value is the present worth of the benefits of future ownership
Follows five valuation steps:
Demand (brand strength) analysis
Brand value calculation
Brand value calculation : Calculate the brand value as the net present value (NPV) of the forecast brand earnings, discounted by the brand discount rate
STRATEGIC BRAND MANAGEMENT