Brand Equity:

Customer-Based

Disclaimer:
• All logos, photos, etc. used in this presentation are the property of their respective
copyright owners and are used here for educational purposes only
• Some material adapted from: Keller, “Strategic Brand Management”

Brand Management © Stephan Sorger 2010: www.stephansorger.com; Ch. 2 Brand Equity 2.1
 Outline: Brand Equity
-CBBE: Customer-Based Brand Equity
-Perception Maps
-Brand Awareness
- Brand Recognition
- Brand Recall
-Brand Associations
- Strong
- Favorable
- Unique
-Four Steps of Brand Building
-CBBE Pyramid
- Salience
- Performance
- Imagery
- Judgments
- Feelings
- Resonance
Brand Management © Stephan Sorger 2010: www.stephansorger.com; Ch. 2 Brand Equity 2.2
 Customer-Based Brand Equity
-What makes a brand strong?
-CBBE: Customer-Based Brand Equity
“Difference that brand knowledge has on consumers”
-Power of brand resides in minds of consumers

What is the source

of brand equity for
the Apple iPod?

Brand Management © Stephan Sorger 2010: www.stephansorger.com; Ch. 2 Brand Equity 2.3
 Perception Maps – Blind Beer Taste Tests*
Brand helps differentiate product

Pabst Colt 45
Coors

Guinness
Miller Lite

Budweiser
A. Taste Perceptions – Drinker Knows Brand Name

Pabst
Budweiser Guinness’ colour
Colt 45 Guinness
Miller Lite Coors and body make it
stand out from the rest

B. Taste Perceptions – Drinker Does Not Know Brand Name

*Source: Keller, Strategic Brand Management, 2nd ed
Brand Management © Stephan Sorger 2010: www.stephansorger.com; Ch. 2 Brand Equity 2.4
 Making a Brand Strong:
Brand Awareness
-No brand equity without brand awareness
-Associative network memory model
Element Description
Memory Network of nodes and links
Nodes Stored information
Links Strength of association between nodes
Example Baseball & hotdogs

AT&T Park
Brand Management © Stephan Sorger 2010: www.stephansorger.com; Ch. 2 Brand Equity 2.5
Brand Awareness: Types
Awareness Type Description
Brand Recognition Confirm prior exposure
Recognize Kellogg’s Corn Flakes
Brand Recall Retrieve brand from memory
Recall consulting firm name
Harder than recognition
Critical for service & online brands

Many people recognize

Kellogg’s Corn Flakes

Brand Management © Stephan Sorger 2010: www.stephansorger.com; Ch. 2 Brand Equity 2.6
 Brand Awareness: Advantages
Advantage Description
Learning Brand node already in memory
Consideration On short list of brands to consider
PC printers: HP, Canon, Epson
Choice Buy only leading brands

Brand Management © Stephan Sorger 2010: www.stephansorger.com; Ch. 2 Brand Equity 2.7
Brand Awareness: Establishing
Approach Description
Familiarity Repeated exposure to brand
Experiences Sees it, thinks about it
Communication Advertising, public relations
Elements Intel: Name, “Intel Inside” logo, Jingle
Recognition Repeated exposure
Recall Category links: Volvo & Safety
Wrong Way Outpost.com linking to shooting gerbils

How does shooting gerbils build brand equity?

Brand Management © Stephan Sorger 2010: www.stephansorger.com; Ch. 2 Brand Equity 2.8
Brand Associations: Strength
-Two key factors for strength of association
-Brand Attributes: characteristics that describe brand
-Brand Benefits: personal value from attributes
Aspect Description
Personal relevance Mustang: Horsepower (attribute)
for fast starts (benefit)
Consistency over time Mustang: History of HP (attribute)
so expertise real (benefit)
The 2005 Mustang incorporates
many traditional styling cues to
leverage its long history

Brand Management © Stephan Sorger 2010: www.stephansorger.com; Ch. 2 Brand Equity 2.9
 Brand Associations: Favorability
Topic Description
Positioning Select associations to link to brand
Associations desired by consumers
Associations delivered by product
Supported by marketing program
Desirability Relevant, Distinctive, Believable
Deliverability Ability to perform, Sustainability

What are the Mustang’s

brand associations?

Brand Management © Stephan Sorger 2010: www.stephansorger.com; Ch. 2 Brand Equity 2.10
Brand Associations: Uniqueness
Topic Description
USP Unique Selling Proposition
Product-related: Ivory soap floats
Image-related: Coke “the Real Thing”
POD Points of Difference
How brand is unique
Mustang: Only true pony car
POP Points of Parity
How brand is similar to others
Mustang: Wide availability of dealers

Brand Management © Stephan Sorger 2010: www.stephansorger.com; Ch. 2 Brand Equity 2.11
 Four Steps of Brand Equity Building

4. Relationships: What about you and me?

-Convert brand response to loyal relationship

3. Response: What about you?

-Generate the proper customer responses to brand

2. Meaning: What are you?

-Establish brand meaning in consumer’s minds

1. Identity: Who are you?

-Identify who you are, associate with class or need

Brand Management © Stephan Sorger 2010: www.stephansorger.com; Ch. 2 Brand Equity 2.12
 Customer-Based Brand Equity Pyramid*
Head Heart

4. Relationships
What About You and Me?
Resonance
(Loyalty, Community)

3. Response
Judgments Feelings What About You?
(Quality) (Excitement)

2. Meaning
Performance Imagery What Are You?
(Features, Design) (User Type, Personality)

1. Identity
Salience Who Are You?
(Prominence in category)
*Source: Keller, Strategic Brand Management, 2nd ed
Brand Management © Stephan Sorger 2010: www.stephansorger.com; Ch. 2 Brand Equity 2.13
Brand Salience: Breadth & Depth
How brand stands out from the rest (Prominence)
Salience Description, Example
Depth How easily brand comes to mind
Tropicana orange juice:
Popular brand, depth
Breadth Range of purchase & usage situations
Broad range of uses
“Not just for breakfast”

Tropicana Orange Juice:

“Not just for breakfast anymore”

Brand Management © Stephan Sorger 2010: www.stephansorger.com; Ch. 2 Brand Equity 2.14
Brand Performance
How product meets customers’ functional needs
Need Description, Ex: Stainless Steel Grill
Reliability Consistency—always cooks well
Durability Life—will last a long time
Serviceability Can replace burners easily
Style & Design Everything where it should be
Price Expensive, but worth it

Stainless Steel Grill

Brand Management © Stephan Sorger 2010: www.stephansorger.com; Ch. 2 Brand Equity 2.15
Brand Imagery: Strong, Unique Associations
How brand meets psychological or social needs
Intangible Description, Examples
User profiles Sex, Age, Race, Income: BMW
Purchase/Usage Situation-oriented: Dominos take-out
Personality Values: CNN = Reliable
Heritage Tradition: “Always driven Buicks”

CNN: The “Competent

News Network”?

Brand Management © Stephan Sorger 2010: www.stephansorger.com; Ch. 2 Brand Equity 2.16
Brand Judgments
Personal opinions & evaluations of brand
Factor Description
Quality Brand attitudes affect brand choice
Credibility Expertise, Trustworthiness, Likeability
Consideration Relevance; on short list
Superiority Unique and better than other brands

Heinz claimed higher quality

because it poured slowly

Brand Management © Stephan Sorger 2010: www.stephansorger.com; Ch. 2 Brand Equity 2.17
 Brand Feelings
Emotional responses to brand
Brand feeling categories Examples
Warmth Hallmark cards
Fun Disneyland
Excitement NASCAR
Security Brinks
Social Approval Mercedes
Self-respect Tide = family

The NASCAR brand

means excitement to
many fans

Brand Management © Stephan Sorger 2010: www.stephansorger.com; Ch. 2 Brand Equity 2.18
 Brand Resonance
Intense loyalty, Active involvement with brand
Category Description
Behavioral loyalty Repeat purchases; eBay
Attitudinal attachment “Love” the brand; Apple
Sense of community Kinship with others; Harley
Active engagement Part of their life; eBay

eBay builds in loyalty

by accumulating valuable
Feedback points over time

Brand Management © Stephan Sorger 2010: www.stephansorger.com; Ch. 2 Brand Equity 2.19