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BRAND EQUITY

What is brand equity?


According to Keller it is the differential effect that

the brand knowledge has on the customers response to the marketing of that brand. There are three ingredients: Differential effect Brand knowledge Consumers response to marketing

Differential effect/ Brand knowledge/ Response to marketing

Making a brand strong: Brand knowledge


Associative network memory model

Memory- Nodes & Internodes

Brand Knowledge

Brand Knowledge

Brand awareness 2. Brand Image


1.

Brand salience
Brand awareness Brand recognition Brand recall
1.

Performance
Primary characteristics & secondary features

Reliability
Durability Serviceability

Service effectiveness, efficiency and empathy


Style & design Price

Brand imagery
User profile

Purchase and usage situations


Personality and values History, heritage and experiences

Gender:

Age:
Race: Income:

Aakers Brand Personality Framework


Sincerity
Down to earth Down-toearth Familyoriented Small town Honest Honest Sincere Real Wholesome Wholesome Original Cheerful Cheerful Sentimental Friendly

Excitement
Daring Daring Trendy Exciting Spirited Spirited Cool Young Imaginative Imaginative Unique Up-to-date Up-to-date Independent Contempora ry

Competence
Reliable Reliable Hard working Secure Intelligent Intelligent Technical Corporate Successful Successful Leader Confident

Sophistication Ruggedness
Upper-class Upper class Glamorous Good looking Charming Charming Feminine Smooth Outdoorsy Outdoorsy Masculine Western Tough Tough Rugged

Brand judgment
Quality

Credibility

Perceived expertise-competent, innovative and market leader 2. Trustworthiness- dependable, keeping customers interest in mind 3. Likability- fun, interesting and worth spending time Brand consideration Brand superiority
1.

Brand feelings
Warmth

Fun
Excitement Security

Social approval
Self respect

Brand resonance
Behavioral loyalty

Attitudinal attachment
Sense of community Active engagement

Researching for Brand Equity

Learning objectives
Rationale for tracking a brand

Qualitative techniques to track a brand


Quantitative techniques to track a brand

Brand audit
Brand audit is a consumer focused exercise that

involves a series of procedures to asses the health of the brand, uncover its source of brand equity and suggest the ways to improve and leverage its equity. Its a tool to bridge in the gap between what company envisions the brand to be and how the consumers perceive the same.

What to track?
1.

Organizational vision and culture Leadership and commitment of top management Culture congenial to engage employees Awareness and commitment of employees towards vision, values and beliefs of organization The relevance of brand values to stakeholders in general

2. Brand objectives

Our mission statement summarizes how we plan to achieve this and consists of four main aspects: We want to make our customers, employees and investors more successful. We always demonstrate respect without compromising on results. We simplify our customers lives. We want to make a positive contribution to our world.

3. Brand identity and personality


The attributes and features of the brand.

The organizational features if they are used to

highlight the brand The extent to which employees are in tune with the personality of the brand The gap between the organizations design of and consumers perception of brand personality

4. Brand marketing efforts


If the product features are in accordance with the

brand value Weather the price is as per the brand image The degree to which the brand positioning is in line with brand personality Weather the delivery of the brand is appropriate. The kind of distribution channel followed by the customer.

5. Brand image and consumer mindset


What the customers feel about the brand or what are

the attitudes and beliefs of the customers towards the brand. The degree to which the customers perception is in line with the brand identity The meaning of the brand for the customers

Research techniques
Exploratory research through qualitative techniques

Secondary data search 2. Survey of knowledgeable people Depth interview Focus interview 3. Free associations 4. Projective techniques Completions and interpretation tasks Comparison tasks
1.

Conclusive research through quantitative techniques


Descriptive studies Statistical methods 2. Experimentation After only Before-after design
1.

Consumer Behaviour and Brand Buying Decisions


Concept of consumer behaviour (CB) with respect to

branding Brand perception Changing demographic trends and lifestyles Model of consumer brand buying decision process Various factors affecting consumer behaviour Various factors affecting brand loyalty

Introduction
According to Davis (2000) ... to maximize the customer-brand relationship, a company must understand how customers think, act, perceive, and make purchase decisions. This highlights the necessity of understanding the consumers brand purchase behaviour by the brand managers

Importance of CB
The post modern study of consumer behaviour is

not to predict and manipulate consumer behaviour but to better understand consumer behaviour.
reality but instead consumer perceptions.

The focus of marketers should not be objective The net result of the changing role of the consumer

is that companies can no longer act independently. They need to understand how the consumer is behaving, how they are gathering information, their major considerations while purchasing the brand, and the factors influencing the purchase behaviour.

Learning about how the customer finds and executes the

optimum solution in a given market makes it easier for an organization to earn their long-term trust, purchases, and loyalty. consumer behaviour can, with practice, be used to develop sound marketing strategies. brand development activity for holistic development of the firm in the long term.

It is believed that knowledge of the factors that influence

These marketing strategies need to be integrated with the

Consumer behaviour and the role of branding

The last decade has seen the marketplace flooded

with brands both national and international. The customer has a number of options to choose from and their attitude towards a brand is very influential in the purchase decision-making process. brands are purchased not once but repeatedly, in many cases in predictably regular patterns; hence the truth of the saying that when we build brands we are making customers and not just sales.

Some

It has been studied that two-thirds of buyers normally buy

(with varying degrees of irregularity) more than one brand. This introduces the extremely important concept of the repertoire of brands.

This consistent habit of repeat purchase in most of the

markets highlights the need to build strong brands.

Brand name serves as shorthand for quality by providing

consumers with a bundle of information about the product.

A brand promises the consumer quality and value and

communicates a distinct advantage to the consumer. Companies recognize the value of having strong brands in their portfolio as it helps them build a loyal customer base

Brand evaluation and perception by customers


Brand evaluation / perception

Components

Functional /utilitarian component

Symbolic / expressive component

Evaluation of the brand

Rational and practical evaluation of brand

Emotional evaluation of brand

Perception about

Evaluation of performance capabilities Usage effectiveness Value for money Reliability Availability

Taste Pride Self expression Belongingness to a group Sense of prestige Social approval

Benefits

Intrinsic

Extrinsic

Brand gap
Brand

image is defined as the customers perception of brand identity. Brand identity portrayed by the organization can be same or different from the brand image formed by customers on the basis of their experience. If the brand image is the same as the brand identity then no brand gap exists. For this to happen companies need to have an understanding of the attitude and purchase process of the consumers

Model of Consumer Decision Making


Stages Components Marketing effort of the firm (4Ps/7Ps and brand name) Socio-cultural environment Factors influencing Marketing communications Brand equity Cultural Culture Sub-culture Social Reference group Family role Status Consumer decision making Need recognition Personal / Psychological factors Motivation Beliefs Attitude Personality Age and lifecycle stages Occupation Economic circumstances Lifestyle Self concept Perception Learning and Memory Brand name Brand loyalty Dissatisfaction Satisfaction

Input

Process

Information search Evaluation of alternative Experience

Output

Post Purchase Behaviour Purchase Post Purchase evaluation

Divestment

Feedback

Factors affecting consumer behaviour


Socio-cultural environment Motivation Beliefs Attitude Personality Age and life-cycle stages Occupation and economic circumstances Lifestyle Self-concept and perception Learning and memory Role of the family

Brand loyalty
Brand loyalty is defined as the consumers commitment

towards a particular brand so much so that they are constantly looking out for marketing activities associated with the brand and are motivated to obtain the brand exclusively on every purchase. Research shows that

a 1% increase in customer loyalty equals 10% cost reduction and 5% increase in customer loyalty increases the profitability of the company by 40-95% Also, the cost of attracting a new customer is five times more than the cost of retaining an existing customer

Brand loyalty benefits


Lowers vulnerability to competitors marketing

strategies

Increases marketing communication effectiveness

and reduces marketing costs

Companies can charge higher margins Increases the probability of success in brand

extension and licensing opportunities

Brand loyal customers are less price-sensitive. Thus they do

not readily shift over with the change in prices by the competitor brands.
to purchase the promoted brand in small quantities but the brand loyal customers are found to buy more of the promoted brand than they would normally buy than price promotions.

When a brand is promoted, non-loyal customers are likely

Brand loyalty has more influence on purchase decisions

Factors affecting brand loyalty

Brand trust
Family ties

Childhood association

Brand Loyalty
Customer satisfaction

Involvemen t

Perceived value

Commitment

Brand commitment
The consumers commitment links them to the

marketing organization and is the act of maintaining a relationship with a commercial partner. If a customer is committed towards a brand, it can be safely presumed that the customer is brand loyal, frequently purchases the brand, and has a favourable attitude towards the brand. Commitment can be built by building brand communities online or by forming clubs.

Brand Positioning
Arranging for a product to occupy a clear, distinctive, and desirable place in the market, and in the minds of the target consumers. Kotler (1984) This definition thus specifies that
first the brand needs to be distinguished or distinct from other brands in the market and second that it is a desirable place in the minds of the consumers. That is the brand is as good as what the customers think about it.

Importance of Positioning
Positioning is how the brand is unique and relevant for

consumers

It is how the brand is different from the other brands in

the product category.

It gives a reason to the customers to buy the product.


For services organizations, positioning also helps to

overcome the concept of intangibility.

Further how the firm positions products also acts as a

guiding hand in the development of the marketing mixes.

Positioning statement
Positioning statement is the message that

communicates brand image to consumers it conveys to consumers how one firms offering are differentiated from a competitors and signals how the firm wishes to be seen or perceived. A strong and consistent positioning statement is necessary to stand out against competitors and should help sharpen and strengthen the brand identity

The template of choice of the positioning statement was


authored by Geoffrey Moore (cited in The Beaupre Buzz, 2003) and is as follows:

Nirulas positioning statement Nirula's is warm,

For (target customers) Who (have the following problem) Our product is a (describe the product or solution) That provides (cite the breakthrough capability) Unlike (reference competition), Our product/solution (describe the key point of competitive differentiation)

contemporary, accessible, eating place for families including children and young adults, serving the widest variety of Indian and International food, beverages and desserts, at affordable prices.

Segmentation
Consumer based Buying situation based

TARGETING

Positioning Strategy
CHANGING CONSUMER TRENDS

Evaluate market segment Select Market segment

Identification of brand benefits

SITUATIONAL ANALYSIS
Internal corporate analysis Current positioning (if repositioning) External market analysis

COMPETITOR ANALYSIS

Analysis for differentiation possibilities of the brand image


POP POD

Selecting the strategy

Guiding principles for positioning


Product On basis of tangible attributes

Product form, product ingredients, product attributes, product characteristics and customer benefits, product use, product class

On basis of intangible attributes

Price quality Symbols Competition Personnel


Employees Product user Demographics

Guiding principles for positioning


Channel

Image
Customer care and service Corporate identity

Positioning by brand endorsement


Positioning related to specific category of

customers Usage occasion and time Corporate social responsibility