brand equity diagnosis
Post on 17-Oct-2014
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Brand equity is a force with three components, identity, integrity and resonance...manage these and you manage the brand.TRANSCRIPT
Lesson Three
Building the Brand
Marketing Defined (A.M.A.)
Old Definition The process of planning and executing the conception, pricing, promotion, and
distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives.
New Definition (2005) Marketing is an organizational function and a set of processes for creating,
communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
Short Marketing Definition….
The process of maximizing customer satisfaction for firms’ offerings (usually at a profit).
The Essence of Strategic Marketing
Aligning products and service offerings with one or more core competencies to create a competitive advantage with some target.
Creating loyalty with consumers through branding.
Maintaining competitive advantage through innovation
‘Branding’ Defined
The process of creating a “relative advantage” for your brand in the mind of the customer.
Brand and Brand Equity
Brand
A persuasive force which attracts or repels consumers to a firm’s offerings by augmenting or diminishing their perceived benefits
Brand Equity
The valence and strength of the brand force
Weak Brand Equity
- + Strong brand equity
Most Brands
The Impact of Brand Equity
Brand Equity
Before Purchase After Purchase
Breaks Ties Biases Evaluation
Brand Equity
Weak Brand Equity
- + Strong brand equity
Most Brands
Brand Equity
Weak Brand Equity
- + Strong brand equity
Most Brands
Measuring Brand Equity Method 1: Tapping Unobservable Elements
Excellent technique when consumers can evaluate the product with and without knowledge of the brand name.
Unobserved Evaluation of Brand – Evaluation of Brand
Brand Equity = (Brand Name Known) (Brand Name Not Known)
Total Brand No brand name
influence.
Brand Equity Example: Cola
Evaluation Evaluation Brand
Name Known Name not Known Equity
Coca-Cola 1.7 .1 1.6
Pepsi .1 -.3 .4
RC Cola -1.8 .2 -2.0
Measuring Brand Equity Method 2: Category Relative Brand Equity
Category Relative Evaluation of Brand – Evaluation of Category
Brand Equity = Wendy’s - Fast Food Hamburgers
Total Brand Total Category
Multiple Category Comparisons
Possible
Elements of Brand EquityBrand Identity:
The extent to which the brand is explicitly LINKED to a meaningful product category, consumption goal, need and/or want.
Brand Integrity: The extent to which the brand is perceived to meet the performance expectations of its
customers.
Brand Resonance: The extent to which the brand emotionally connects to the customer by embedding and
enhancing the lifestyle of its users
http://www.youtube.com/watch?v=-kYYwMLQ38E http://www.youtube.com/watch?v=ZyF5WsmXRaI http://www.youtube.com/watch?v=b0AGiq9j_Ak
Brand Identity is the foundation of the brand….It creates the context for all that follows
Identity
Integrity
Resonance
Identity (Philosophical)
What is it? The set of characteristics that makes something recognizable as a member of a group.
What isn’t it? Characteristics that sets it apart from others.
Identity Based Obstacles to Brand Equity
Category Membership: The inability to ‘understand’ the overall purpose of a brand because category membership is vague or confused
Brand Salience The inability for the brand to ‘come to mind’ prior
to other, potentially equally attractive, alternatives
Brand Position. The inability to ‘understand’ a brand’s unique benefits.
Identity Based Obstacles to Brand Equity
Category Membership?
Who are the Ford Fusion’s direct competitors?
Identity Based Obstacles to Brand Equity
Category Membership?
Red Bull, Monster, Amp. Rockstar, Full Throttle, Nos
Identity Based Obstacles to Brand Equity
Brand Salience: List fast food restaurants?
Identity Based Obstacles to Brand Equity
Brand Salience: How fast does Wendy’s come to mind?
Identity Based Obstacles to Brand Equity
‘Brand’ Uniqueness: What is different about United Airlines?
The Strength of Brand Identity
The brand is clearly linked to a category that
fits the benefits it delivers.
The brands unique benefits are understood.
The brand is tightly linked to this category.
Basic Brand Identity
Strong Brand Identity
The Difficulty of Building an Independent Brand Identity
Most people can tell you a lot of information about a product category, but…..
they can tell you very little about what’s different about each brand in the
category.
Athletic sneakers
Light beer
Laptop Computers
Brand Integrity (Philosophy)
Can the brand fulfill the promise of its identity?
Integrity is doing what you said you would do and how you said you would do it.
Integrity is refusal to engage in behavior that evades accountability.
Integrity is steadfast adherence to a moral or ethical code.
Brand Integrity
Category
Expectations
Brand Promises
Customer Respect
Basic Brand Integrity
Superior Brand
Integrity
Brand Integrity and Category Expectations
Performance
Customer service
Do you deliver the benefits that customers expect?
Do customers have confidence in your ability to deliver every time?
Do your innovations keep pace with competitors?
Integrity-Based ObstaclesCategory Integrity
How will this compete against Six Flags Magic Mountain on thrill rides?
Integrity Based Obstacles: Category Integrity
Category Integrity: Prior knowledge can harm Integrity
A lack of category integrity may be caused by identity incompatibility created by prior knowledge
Anheuser-Busch is not known as a high end beer) and/or actual poor performance (the beer is terrible.
Brand Integrity and Brand Promises
Is your brand position; is how you promise to be different, a slogan or a reality?
Is your brand position built around your core competency?
Do you stay one step ahead of competitors in delivering your position?
Integrity Based Obstacles: Brand Promises
Brand Integrity: Did the XFL Keep Its Better Brand of Football
Promise?
Integrity Based Obstacles: Brand Promises
Brand Integrity: Was it clean and pure?
Brand Integrity and Customer Respect
Is the company perceived to seek to satisfy or manipulate its customers?
Does the company make itself accountable to its mistakes?
Are the firm’s employee’s strong caretakers of the brand?
Integrity Based Obstacles:Customer Respect
Customer Respect: Do you believe the credit card company that
bombards you with sales offers is ‘better serving
you’ or manipulating you?
Integrity Based Obstacles:Customer Respect
Customer Respect: Four hours and counting…
Customer Respect: Beyond the Call of Duty
A bartender remembering your favorite beverage
An airline attendant going out of his/her way to entertain a child bored on a long flight
A hotel offering free homes to disaster victims
Resonance (Philosophy)
Embedded in one’s everyday life
Fit with one’s real values and lifestyles
Fit with one’s aspirational values and lifestyles
Causes of Brand Resonance
Resonance through shared embeddedness and life enhancement
Basic Brand Resonance
Strong Brand Resonance
Resonance through brand familiarity based fit with life
Brand Resonance through Brand Familiarity
Think of all the life experiences that have been associated to:
Coca-Cola
Tide
Oreos
McDonalds
Brand Resonance Through Shared Life Experiences
Identify with the brand because users share “tribal membership.
Hollister: Teenage Celebration
Brand Resonance Through Shared Life Experiences
Identify with the brand because users share “tribal membership.”
Under Armour: The Warrior
Brand Resonance Through Shared Life Experiences
Identify with the brand because users share “tribal membership,” etc. use the brand
Chevrolet: Rugged Individualism
The Brand Component Hierarchy
Brand Resonance
Brand Integrity
Brand Identity
Each Subsequent Brand Element Builds on the Previous Element
Failure at an Early Element Hinders Progress up the Hierarchy
Brand Equity and Relative Advantage
Perceptions Have Consequences
Marketing managers must strive to maximize each element of the brand:
Brand Identity
Brand Integrity
Brand Resonance
Brand DNA
Some marketing consultants attempt to summarize a brand vision with three or four words that should shape all three components of the brand
Starbucks: relax, intellectual, social
Nike: ‘performance, perseverance, winning’
San Diego State: ?????
Brand Image Brand Image is a top of mind reaction to a brand.
It can reflect elements of brand identity, brand integrity and brand Resonance.
It can help you diagnose which elements of the brand are driving brand equity
Brand Image
Identity
Integrity
Resonance
Brand Image
Brand Image What are the images of these companies?
What do the images reveal about each element of brand equity for each company?