chapter 02 ws

8/4/2019 Chapter 02 Ws

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2007 Thomson South-Western

Marcoms Challenges:

Enhancing Brand Equity,

Influencing Behavior, andBeing Accountable

Chapter Two


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Brand

A Differentiated Product is a Brand

A product must satisfy two conditions to becalled a brand

Thums Up, Ariel


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Definition of Brand Equity

Brand Equity is Brand Value

Brand equity can be considered either fromthe perspective of the organization that

owns it or from the vantage point of thecustomer.


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As Brand Equity Increases

1. A higher market share is achieved2. Brand loyalty increases

3. Premium prices can be charged

4. The brand earns a revenue premium


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Firm based perspective of brandequity

The revenue differential between abranded item and a correspondingprivate labeled item.

Revenue premium=

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


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A Customer-Based Perspective onBrand Equity


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Two forms of Brand Knowledge

Brand Awareness

An issue of whether a brand name comes tomind when consumers think about a

particular product category and the easewith which the name is evoked.


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The Brand Awareness Pyramid


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Brand Recognition


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Aided Brand Recall


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Free (unaided) brand recall


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Two Forms of Brand Knowledge

Brand Image

The types of associations that come to

the consumers mind when

contemplating a particular brand.


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Network of Brand Associations


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Network of Brand Associations

Each circle

Each line

Thickness of each line

Number of lines leading into a node


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Nielsen Buzz MetricsBrand Associations Concept Map (BACM)


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What does a Brand AssociationsConcept Map (BACM) tell you?

What thoughts (names, attributes, benefits,pictures, words, images, etc. etc.) come to yourmind when presented with a brand cue?

How strongly/weakly are they linked to the brandcue?

Conclusions you can draw from a BACM


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Dimensions of BrandPersonalities

Competence

Ruggedness Excitement

Sophistication

Sincerity


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Illustration ofa Sincere

Brand


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Illustration of an

Exciting Brand


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Illustration of aCompetent

Brand


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Illustration of a

SophisticatedBrand


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Illustration ofa Rugged

Brand


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Branding Strategies

Leveraging the equity of an established / reputed brandname

Why do you do it?


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Branding Strategies

Co-branding

Ingredient branding

Brand Extensions

Sub-branding
http://www.lovemarks.com/


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www.lovemarks.com
http://www.lovemarks.com/http://www.lovemarks.com/http://www.lovemarks.com/


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www.lovemarks.com
http://www.lovemarks.com/http://www.lovemarks.com/


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The Lovemark Grid(Pawle and Cooper 2006, Journal of Advertising Research)


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Characteristics of World ClassBrands

Delivers benefits consumers want

Stays relevant

Price equals value

Good positioning

Consistency


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Characteristics of World ClassBrands

Fits into brand portfolio

Brand uses all IMC options available to

build equity Brands managers understand what the

brand means to consumers

Support over long run Monitoring of the sources of brand

equity


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Top 10 Global Brands (2009)

www.interbrand.com
http://www.interbrand.com/http://www.interbrand.com/


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How does Interbrand Valuethese brands


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Affecting Behavior and AchievingMarcom Accountability

Creating brand awareness and boostingbrand image has little positive effect

unless individuals make purchases orengage in some other form of desiredbehavior.


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ROMI

The effect of marcom, or of its specificelements such as advertising, can be

gauged in terms of whether itgenerates a reasonable revenuereturn on the marcom investment.

In marketing, return on investment iscalled return on marketing investment(ROMI)


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Choosing a Metric

Change in brand awareness

Improved consumer attitude toward the brand

Increased purchase intentions

Larger sales volume

Greater repeat sales

Etc.

chapter 02 ws

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