grp 7 brand equity
TRANSCRIPT
-
8/3/2019 Grp 7 Brand Equity
1/67
-
8/3/2019 Grp 7 Brand Equity
2/67
-
8/3/2019 Grp 7 Brand Equity
3/67
-
8/3/2019 Grp 7 Brand Equity
4/67
A brand is a name, term, sign, symbol, ordesign, or a combination of them,
intended to identity the goods or services of
one seller or group of sellers andtodifferentiate them from those of competitors.
- American Marketing Association
CONSUMERSBUYPRODUCTS;
THEYCHOOSEBRANDS!
-
8/3/2019 Grp 7 Brand Equity
5/67
A brand can convey up to 5 levels of meanings:
Attributes
BenefitsValues
Culture
Personality
Users
-
8/3/2019 Grp 7 Brand Equity
6/67
Brand signals the source of the product.
Protects customer and producer fromcompetitors who have identical
products Consumers form relationships with
brands, not products or companies
Brand makes an emotional and trust-based connection with consumer anddistinguishes it from competition
-
8/3/2019 Grp 7 Brand Equity
7/67
Brand loyalty is the foundation ofbusiness
Every purchase opportunity presents itself
an excuse to change brands and shiftloyalties
Father buys cigarettes every day
Mother buys diapers every week
Family buys groceries every month
Branding determines status quo vs. shift
-
8/3/2019 Grp 7 Brand Equity
8/67
Proliferation of competitors.
Pressure to compete on price.
Fragmenting markets and media. Complex brand strategies and
relationships.
Bias towards changing strategies.
Bias against innovation.
Pressure to invest elsewhere.
-
8/3/2019 Grp 7 Brand Equity
9/67
-
8/3/2019 Grp 7 Brand Equity
10/67
Brand Equity is a set of assetslinked to a brands name andsymbol that adds to the value
provided by a product or serviceto a firm and/or that firmscustomers
Brand Equity is a set of liabilities
linked to a brands name andsymbol that subtracts from thevalue provided by a product orservice to a firm and/or that firms
customers
-
8/3/2019 Grp 7 Brand Equity
11/67
Brand equity is a set of assets Management of brand equity involves
investment to create and enhance theseassets
Each brand equity asset creates valuein a variety of very different ways It is imperative to be sensitive to the ways
in which strong brands create value Brand equity creates value for
customer and firm
-
8/3/2019 Grp 7 Brand Equity
12/67
Brand equity assets can helpcustomers interpret, process andstore huge quantities of info aboutproducts / brands
It can affect customers confidencein purchase decision Due to past-use experience or familiarity
with brand
Both perceived quality and brandassociations can enhancecustomers satisfaction with useexperience Knowing brand isArrow can make user
feel different
-
8/3/2019 Grp 7 Brand Equity
13/67
Brand equity can enhance programs toattract new customers or recapture old ones
Perceived quality, associations and knownname provide reasons to buy & affect usesatisfaction
Usually allows higher margins by permittingboth premium pricing and reducedpromotions
Can provide leverage in the distribution
channel Brand equity assets provide a competitive
advantage that present a barrier tocompetitors
-
8/3/2019 Grp 7 Brand Equity
14/67
-
8/3/2019 Grp 7 Brand Equity
15/67
Brand EquityCategories
-
8/3/2019 Grp 7 Brand Equity
16/67
Brand Equity can be grouped into five
categories:
Brand Loyalty
Name Awareness
Perceived Quality
Brand Associations
Other Brand Assets
-
8/3/2019 Grp 7 Brand Equity
17/67
Attachment: High measure of acustomers attachment towards a
brand.
Loyalty: A highly brand loyal
customer is unlikely to switchbrands.
Bargaining Power: Allowing the
company to bargain with channel
members. Highly loyal customers are difficult
to be wooed and act as deterrent to
competitive action.
-
8/3/2019 Grp 7 Brand Equity
18/67
Familiarity: Customers prefer to
buy a brand familiar to them.
Recognition: The ability of a
potential buyer to recognize or
recall that a brand belongs to a
certain product category.
Awareness: A high level of
awareness signals a well
established brand, Enhancescustomers confidence in thebrand.
-
8/3/2019 Grp 7 Brand Equity
19/67
Consumer perception:
Perceived quality is the
consumers perception of
the overall quality or
superiority of a product.
Quality: Quality as
interpreted by the customers
rather than what the brand
actually delivers. Allows the company to
adopt premium pricing.
-
8/3/2019 Grp 7 Brand Equity
20/67
Memory: Brandassociation is anything
linked in memory, to a
brand.
A set of associations
result in formation of
the brand image.
Provide a basis for
extension into new
product categories.
-
8/3/2019 Grp 7 Brand Equity
21/67
Patents, Trademarks and Channel relationships .
Trademark: A trademark refers to name, symbol, logo, package
design etc., which is registered with a company.
Patents: Patents can provide tangible basis of differentiation
-
8/3/2019 Grp 7 Brand Equity
22/67
Equity
-
8/3/2019 Grp 7 Brand Equity
23/67
Marketers build brand equity by creating theright brand knowledge structures with the right
customers. Philip Kotler
There are 3 main elements in building BrandEquity:
Choice of Brand Elements
Product/Service & supporting marketingactivities
Other associations indirectly transferred to thebrand by linking it to some other entity.
-
8/3/2019 Grp 7 Brand Equity
24/67
Memorable
Meaningful
Likeability
Transferable
Adaptable
Protectable
-
8/3/2019 Grp 7 Brand Equity
25/67
-
8/3/2019 Grp 7 Brand Equity
26/67
-
8/3/2019 Grp 7 Brand Equity
27/67
Personalization
Integration
Internalization
-
8/3/2019 Grp 7 Brand Equity
28/67
Creation of new brand associations
Effects on existing brand knowledge Awareness and knowledge of the entity
Meaningfulness of the knowledge of theentity
Transferability of the knowledge of the entity
7.28
-
8/3/2019 Grp 7 Brand Equity
29/67
Brand associations may themselves be linked
to other entities, creating secondaryassociations: Company (through branding strategies)
Country of origin (through identification of productorigin)
Channels of distribution (through channels strategy)
Other brands (through co-branding)
Celebrity spokesperson (through endorsements)
Events (through sponsorship)
Other third-party sources (through awards andreviews)
7.29
-
8/3/2019 Grp 7 Brand Equity
30/67
Building Brand Equity using
-
8/3/2019 Grp 7 Brand Equity
31/67
Building Brand Equity usingIntegrated MarketingCommunications
-
8/3/2019 Grp 7 Brand Equity
32/67
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
32
-
8/3/2019 Grp 7 Brand Equity
33/67
-
8/3/2019 Grp 7 Brand Equity
34/67
-
8/3/2019 Grp 7 Brand Equity
35/67
Brand Name
Slogans
Colors Symbols
Logos
Taglines Cartoons & Animations
Objects
-
8/3/2019 Grp 7 Brand Equity
36/67
-
8/3/2019 Grp 7 Brand Equity
37/67
-
8/3/2019 Grp 7 Brand Equity
38/67
-
8/3/2019 Grp 7 Brand Equity
39/67
-
8/3/2019 Grp 7 Brand Equity
40/67
-
8/3/2019 Grp 7 Brand Equity
41/67
-
8/3/2019 Grp 7 Brand Equity
42/67
-
8/3/2019 Grp 7 Brand Equity
43/67
-
8/3/2019 Grp 7 Brand Equity
44/67
-
8/3/2019 Grp 7 Brand Equity
45/67
The value of a brandand thus its equityis ultimately derived in the marketplacefrom
the words and actions of consumers.
Consumers decide with their purchases,based on whatever factors they deemimportant, which brands have moreequity than other brands.
-
8/3/2019 Grp 7 Brand Equity
46/67
Market research approach used whenthere is little to choose functionallybetween the products
-
8/3/2019 Grp 7 Brand Equity
47/67
Projective techniques Projective techniques are diagnostic tools to
uncover the true opinions and feelings of
consumers when they are unwilling orotherwise unable to express themselves onthese matters.
Consumers are presented with an
incomplete stimulus and asked to completeit or given an ambiguous stimulus that maynot make sense in and of itself and areasked to make sense of it.
-
8/3/2019 Grp 7 Brand Equity
48/67
Completion and interpretation tasks Classic projective techniques use incomplete or
ambiguous stimuli to elicit consumer thoughtsand feelings.
Comparison tasks Technique that may be useful when consumers
are not able to directly express their perceptionsof brands
Consumers are asked to convey theirimpressions by comparing brands to people,countries, animals, activities, fabrics,occupations, cars, magazines, vegetables,nationalities, or even other brands.
-
8/3/2019 Grp 7 Brand Equity
49/67
-
8/3/2019 Grp 7 Brand Equity
50/67
-
8/3/2019 Grp 7 Brand Equity
51/67
-
8/3/2019 Grp 7 Brand Equity
52/67
Ethnographic and observational
approaches
Fresh data can be gathered by directlyobserving relevant actors and settings
Consumers can be unobtrusively
observed as they shop or as they
consume products to capture every
nuance of their behaviour.
Marketers such as Procter & Gamble
seek consumers permission to spendtime with them in their homes to see how
they actually use and experience
products.
-
8/3/2019 Grp 7 Brand Equity
53/67
Although qualitative measures are usefulto identify and characterize the range of
possible associations to a brand, a morequantitative portrait of the brand often isalso desirable to permit more confidentand defensible strategic and tactical
recommendations.
Quantitative research typically employs
various types of scale questions so thatnumerical representations andsummaries can be made.
-
8/3/2019 Grp 7 Brand Equity
54/67
Quantitative research techniques
Awareness
Brand awareness is related to the strength of thebrand in memory, as reflected by consumers'ability to identify various brand elements (i.e., thebrand name, logo, symbol, character, packaging,and slogan) under different conditions. Brand
awareness relates to the likelihood that a brandwill come to mind and the ease with which it doesso given different type of cues.
Recognition
Recognition processes require that consumers beable to discriminate a stimulus -- a word, object,image, etc. -- as something they have previouslyseen.
Simple yes or no tasks
-
8/3/2019 Grp 7 Brand Equity
55/67
Recall
To determine whether the brand elements willactually be recalled under variouscircumstances, measures of brand recall arenecessary.
Brand recall relates to consumers' ability toidentify the brand under a variety ofcircumstances.
With brand recall, consumers must retrieve
the actual brand element from memorywhen given some related probe or cue.
More demanding than recognition technique
Recall of Porsche 944 German sports car
-
8/3/2019 Grp 7 Brand Equity
56/67
Image
Brand awareness is not just sufficient
For most customers in most situations, otherconsiderations, such as the meaning orimage of the brand as reflected by theassociations that consumers hold toward thebrand, also come into play.
Image of the brand is influenced by twobroad levels of association
-
8/3/2019 Grp 7 Brand Equity
57/67
The purpose of measuring higher-order brand associationsis to find out how consumers combine all of the specificconsiderations about the brand in their minds to formdifferent responses.
Brand judgments(personal opinions)
Brand quality Brand credibility Brand consideration Brand superiority
Brand feelings (emotional responses and reactions)
Warmth Fun Excitement Security Social approval Self-respect
-
8/3/2019 Grp 7 Brand Equity
58/67
-
8/3/2019 Grp 7 Brand Equity
59/67
Managing
Brand Equity Brand equity is:
-
8/3/2019 Grp 7 Brand Equity
60/67
Brand equity is:
A set of brand assets and liabilities linked to a brand.
Its main component being:
NAME AWARENESSPERCEIVED QUALITY
BRAND ASSOCIATIONS
BRAND LOYALTY
-
8/3/2019 Grp 7 Brand Equity
61/67
BRAND AWARENESS
Is when people recognize your brand as yours. Brand awareness is the
ability of potential buyer to recognize or recall that a brand is a member of a
certain product category,
IT CONSISTS OF BOTH
Brand Recognition, which is the ability of consumers to confirm that they
have previously been exposed to your brand,
Brand Recall, which reflects the ability of consumers to name your brand
when given the product category, category need, or some other similar cue.
-
8/3/2019 Grp 7 Brand Equity
62/67
Mercedes and BMW
They have established their brand names as synonymous
with high-quality, luxurious automobiles.
Years of marketing, image building, brand nurturing and
quality manufacturing has lead consumers to assume a high
level of quality in everything they produce. Consumers arelikely to perceive Mercedes and BMW as providing superior
quality to other brand name automobiles, even when such a
perception is unwarranted.
BRAND ASSOCIATIONS:
-
8/3/2019 Grp 7 Brand Equity
63/67
BRAND ASSOCIATIONS:
Brand association with certain emotions, feelings,
and qualities and also with some tangible benefits
like freebies.
Though often difficult to quantify, associations
with which the brand is consciously linked - say
with a sports event, a charity, a celebrity, a joint
venture - can enhance a brand's perceived image
Thus McDonald's could be linked to a character such as Ronald
-
8/3/2019 Grp 7 Brand Equity
64/67
Thus, McDonald s could be linked to a character such as Ronald
McDonald, a consumer segment such as kids, a feeling such as
having fun, a product characteristic such as service, or a symbolsuch as the Golden Arches.
BRAND LOYALTY:
-
8/3/2019 Grp 7 Brand Equity
65/67
BRAND LOYALTY:
Consumer returns back to your product even after
having a choice of many other products in market.This asset combines characteristics associated with :
Image (Brand Loyalty, Name Awareness)
and
Impact (Customer Life Value and Price
Premium).
Managing Brand Equity when it is tied
-
8/3/2019 Grp 7 Brand Equity
66/67
Managing Brand Equity when it is tied
up to one person.
Apple without SteveJobs
Steve Jobs dominates the tech world and culture. When
he stands before industry conferences, holds up agadget and says, this is cool, whatever it is becomescool. The Apple brand is known for design, but it is alsoknown for the guy who invented the PC as we know it in
his garage.
-
8/3/2019 Grp 7 Brand Equity
67/67
Institutionalize the cult of personality. Coco Chanel has
become an icon. Though she passed away decades ago, her spirit
lives on. Calving Klein is transforming his company, stepping
back and letting others learn to keep his unique style going.
Find a successor. As apple did ,finding a successor for Steve
Jobs in the face of Tim Cook .
Diversify. Add new attributes to the base begun by the iconic
person.