Unit 2 RBPM Brand Equity

8/14/2019 Unit 2 RBPM Brand Equity

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Brand Equity


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Definition

It is the added value

endowed on products &services.

It may be reflected in

the way consumers

think, feel & act withrespect to the brand, as

well as in the prices,

market share &

profitability the brandcommands.


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Few more


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Positive or negative brand equity

Product/Service with positive brand equity deliver

value to the customer based on its quality, experience,

durability, availability, services. Companies charge

more premiums indicate higher brand equity.

Negative one has a worst impact on the company

image. This may be due to poor quality, bad experience

with the product, bad word of mouth & most important

poor performance of the previous products& services.


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Strategic Brand management Process

Involves the design & implementation of

marketing programs & activities to build,

measure & manage brand equity.


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Steps in Strategic Brand management Process

Identify & establish brand

positioning & values

Plan & implement brandMarketing programs

Measure & interpret

brand performance

Grow & sustain

Brand equity


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1. Identifying & establishing brand positioning & values

Kotler defines act of designing the companys offer & image so that itoccupies a distinct & valued place in the target customers mind.

Positioning often involves specifications of core brand values & brand

mantra.

Core brand values are set of abstract associations ( attributes & benefits)

that characterize a brand.

A brand mantra is a short 3-5 word expression of the most important

aspects of a brand & its core values.

A brand represents a brand mantra, also known as the brand essence or

core brand promise.

A brand audit is a comprehensive examination of a brand, involving

activities to assess the health of the brand, uncover its sources of equity &

suggest ways to improve it.


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2. Planning & implementing brand marketing programs

This is a knowledge building process & depends upon :1. Choosing brand elements

A brand element is visual or verbal information that serves to

identify or differentiate a product like brand names, logos,

symbols, characters, packaging & slogans.2. Integrating the brand into marketing activities & the

supporting marketing program

The primary input comes from the marketing activities, strong,

favorable & unique brand associations by means ofmarketing programs


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3. Leveraging Secondary associations.

A brand association may be created by linking the brand to

another node or information in memory that conveys

meaning to consumers.

Like the brand may be linked to certain source factors like

company, country or geographic regions, channels of

distribution, characters etc


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3. Measuring & interpreting brand performance

A useful tool to measure is the brand value chain.

This is used to trace the value creation process for brands to

better understand the financial impact of brand marketing

expenses & investments.

A brand equity measurement system is a set of research

procedures designed to provide timely, accurate & actionable

information for marketers to make the best possible tacticaldecision in the short run & the best strategic decision in the

long run.


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Brand Value Chain

Marketing

Program

investment

Customer

mindset

Market

PerformanceShareholder

value

Program

Quality

Market

Place

Conditions

Investors

Sentiments


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4. Growing & Sustaining brand equity

1. Defining the branding strategy

2. Managing brand equity over time

3. Managing brand equity over geographic boundaries ,

cultures & market segments


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Customer Based Brand equity

What makes a brand strong?

How do u build a strong brand?

These questions are dealt by CBBE model.

This model approaches from the perspective of consumers- both

individual or an organization.

Basic premise of the CBBE model is that the power of a brand

lies in what the customers have learned, felt, seen & heard about

the brand as a result of their experiences over time.

OR

The power of a brand lies in what resides in the minds of

customers.


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Brand is said to have a positive CBBE when consumers reactmore favorably to a product & the way it is marketed.

Thus with a positive CBBE, this may results in consumers

being more accepting of a new brand extension., less sensitiveto price increases.

On the contrary a brand is said to have a negative CBBE if

consumers react less favorably to marketing activity.


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3 key points in these concepts

1. Differential effect:

2. Brand knowledge:

3. Consumer response:


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Brand Image: Perceptions about a brand as reflected

by the brand associations held in consumer memory.

E.g.: Apple computers

MacintoshCreative

User friendly Cool

Graphics

Apple logo

Apple computers


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Sources of Brand Equity

CBBE occurs when the consumer has a high level

of awareness & familiarity with the brand & holds

some strong, favorable & unique brand associations

in memory.

Key to branding is that consumers must not think

that all brands in the category are the same.

1. Brand Awareness2. Brand Image


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1.Brand Awareness

This consists of brand recognition & brand recall

performance.

Brand recognition relates to consumers ability toconfirm prior exposure to the brand.

e.g. when consumers go to the store, is it the case that they

ill be able to recognize the brand as one to which theyhave already been exposed?


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Brand Recall relates to consumers ability to retrieve the

brand from memory when given the product category,

the needs fulfilled by the category, or a purchase.

e.g. recall of Kellogg's corn flakes will depend on

consumers ability to retrieve the brand when they think

of the cereal category or what they should eat for

breakfast either at the store ( when making a purchase),

at home ( when making a consumption choice), or

wherever.


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If a product decision is made in the store, brandrecognition may be more important because the brand

will actually be physically present.

Outside a store where the brand is not present, it is

probably more important that the consumer will be able

to actually recall the brand from memory?


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Consequences of Brand awareness

Brand awareness plays an important role inconsumer decision making for 3 major reasons:

Learning Advantages

Consideration advantages

Choice advantages1. Consumer purchase motivation.

2. Consumer purchase ability.


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Establishing Brand Awareness

This is created by increasing the familiarity of the brandthrough repeated exposure.

Its more of a consumer experience rather than by seeing

it, hearing it or thinking about it.

Anything that causes consumers to experience a brand

name,symbol,logo,character,packaging that can

increase familiarity & awareness of that brand element.

Advertising, promotion, sponsorship, event marketing,

publicity & PR.


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2. Brand Image

With a positive brand image a strong link, favorable & unique brand

association are created in the memory.


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1. Strength of Brand associations

2. Favorability of Brand associations

3. Uniqueness of Brand associations.


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Building Brand Equity

Marketers build brand equity by creating the right

brand knowledge structures with the right consumers.

There are 3 main sets of brand equity drivers.

1. The initial choices for the brand elements making upthe brand ( brand names, logos, URLs, slogans etc..)

2. The product/Service & all accompanying marketing

activities & supporting marketing programs.

3. Other associations indirectly transferred to the brandby linking it to some other entity ( person, place or

thing)


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By


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ProductStrategy

New

Perspectiv

e

on

mark

eting

Channe

l Strate

gy

Pricin

g

Stra

tegy

Marketing

Programs


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Economic reasons,Technological,

Political & legal,

Socio-cultural,

Competitive environment.

The reasons/drivers

Digitalization and connectivity,

Disintermediation and reinter mediation,

Customization and customerization,Industry convergence,

New customer and company capabilities.


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Customers/consumers

Substantial increase in customer power

Greater variety of available goods and servicesGreater amount of information about practically

anything.

Greater ease in interacting and in placing and

receiving orders.An ability to chat with strangers and compare

note on products and services.


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Company

Operate a powerful new information and sales

channel.

Broad area coverage

Knowledge about markets, customers, competitors

Ability to communicate customer and prospects

Facility regarding transaction efficiency.

Can customize their offering and services toindividual customers


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Personalizing marketing

Experiential marketing

Focuses on customer experience

on the consumption situation

View customers as rational and emotional

One-to-one marketing

Shifting from transaction mar. to relationship marketing.

Focus on individual through data base

Customize products and servicesPermission marketing


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Reconciling the new marketing approaches

Various new approaches and others help to

reinforce a number of important marketing

concepts and techniques.

From a branding point of view, they are

particularly useful means of thinking how to both

elicit positive brand responses and create brand

resonance to build customer based brand

equity.


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Product itself is at the heart of brand equity

because it is the primary influence on what

consumers experience with brand.

Designing and delivering a product and services

that satisfies customers needs and wants.

Perceived Quality and value

Relationship marketing


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Perceived Quality and value

Performance

Features

Conformance quality

ReliabilityDurability

Serviceability

Style and design

Brand intangiblesTotal quality management an return on quality

Value chain


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Relationship marketing

It attempts to provide a more holistic, personalizedbrand experience to create stronger customer ties.

Mass customizationAfter marketing

Loyalty programs

Know your customers

Change is goodListen to your best customers

Engage people


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Customer price perceptions

Setting prices to build Brand equity

Value pricingProduct design & delivery

Product costs

Product prices

Pricing methods


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For new products

Skimming pricing/price skim

Penetration pricing

For existing product

Cost oriented pricing

Demand oriented pricing

Competition oriented pricing


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Cost oriented pricing

Cost plus pricing

Target pricing method

Break even pricing

Marginal cost & incremental

Demand oriented pricingPurchasing power parity pricing

Skimming policy

Penetration policy

Competition oriented pricing

Discount pricingPremium pricing

Follow the leader pricing


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Channel design

Indirect channelsDirect channels

Web strategy

Level of channels


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Key matters

What should be the channel of distribution

for the product?

What should be the length?

What will be the cost of distribution?

What should be the criteria for appointingintermediaries?


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Importance

Distribution channel is an important element of

marketing mix.

The cost involved in distribution channel extend

the product price.

A product is really useful only when it reaches

the customer at the right time at the right place.

The right choice of the channel of distribution will

reduce the fluctuation in the production.


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Direct channel

Preferable Product information needs are high

Product customization is high Product quality assurance is important

Purchase lot size is important

Logistic are important

Company owned storesShops in the department stores/malls


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Indirect channelsPreferable A board assortment is essential

Availability is critical

After sale service is important

Push & pull strategy

Channel support


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Web strategy

www.homeshop18.com

www.ebay.in

shopping.indiatimes.com

www.toponlineshopping.com

www.futurebazaar.com

www.indiaplaza.inwww.mps-shopping.com
http://www.homeshop18.com/http://www.ebay.in/http://www.toponlineshopping.com/http://www.toponlineshopping.com/http://www.futurebazaar.com/http://www.indiaplaza.in/http://www.mps-shopping.com/http://www.mps-shopping.com/http://www.mps-shopping.com/http://www.mps-shopping.com/http://www.mps-shopping.com/http://www.indiaplaza.in/http://www.futurebazaar.com/http://www.toponlineshopping.com/http://www.toponlineshopping.com/http://www.toponlineshopping.com/http://www.ebay.in/http://www.homeshop18.com/


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Levels of the channel

0-levelManufacturers consumers

1-levelManufactures distributorsconsumers

2-levelManufacturers distributors wholesalers- consumers

3-levelManufacturers- distributors- wholesalers- retalers-consumers


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Presented By:

Prasun Kumar

Shruti Raghuwanshi


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IMC is a communication process thatentails the planning, creation,integration and implementation of

diverse forms of marcom (adverts,sales promotion, publicity) that aredelivered over time to a brandstargeted customers and prospects.


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Moving away from traditional marketing

TV, radio, newspaper and magazines

Moving towards more modern marketing techniquesOnline methods such as blogs and brand communities

Connecting with customers requires thinking beyond

traditional methods (think out of the box)Essential that marketers redesign the way theycommunicate with their customers


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Redesigning brand-buildingcommunications marketers mustremember that the following 6 stepsmust occur of the information

processing model:Exposure

Attention

Comprehension

Yielding

Intensions

Behaviour


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A consumer may not be exposed to an Ad because the media plan missed themark.

A consumer may not notice an Ad because of a boring and uninspired strategy.

A consumer may not understand an Ad because of a lack of product categoryknowledge or technical sophistication, or because of a lack of awareness and

familiarity about the brand itself.

A consumer may fail to respond favorably and form a positive attitude because ofirrelevant or unconvincing product claims.

A consumer may fail to form a purchase intention because of a lack of animmediate percieved need.

A consumer may fail to actually buy the product because he/she doesnt rememberanything from the Ad when confronted with the available brands in the store


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The right consumer is exposed to the right message at theright place and at the right time.

The creative strategy for the advertising causes theconsumer to notice and attend to the Ad but does notdistract from the intended message.

The Ad properly reflects the consumers level ofunderstanding about the product and the brand.

The Ad correctly positions the brand in terms of desirableand deliverable points of difference and point of parity.

The Ad motivates consumers to purchase of the brand.

The Ad creates strong brand associations to all of thesestored communication effects so that they can have an effectwhen consumers are considering making a purchase.


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CurrentBrandKnowledge

Desired

BrandKnowledge


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Possible to employ multiplecommunication to achieve goals

Understand how each communication

method works and leverage of thepositive aspects of method


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Communication options

Advertising

TV, Radio, Print, Direct response, Interactive andOutdoor

PromotionConsumer promotions and Trade promotions

Event marketing and sponsorship

Public relations and Publicity

Buzz marketing

Personal selling


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Advertising is any paid form of non-personal presentation and promotionof ideas, goods or services by an

identified sponsorPowerful way of creating strong,favourable and unique brandassociations. (Kellers BrandKnowledge Model)


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Medium of Advertising Advantages DisadvantagesTelevision Mass Coverage

Impact of sight, sound andmotionLow cost per thousand

Short message lifeHigh absolute andproduction costsClutter

It is important that when designing the ad campaign thatmarketers take into account both the message or positioning(what ad is attempting to convey about the ad) and the creative

strategy (the way the ad expresses the brand claims).
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Defining PositioningCompetitive frame ofreference

Nature of competitionTarget Market

Point of parity attributesand benefitsNecessaryCompetitive

Point of differenceattributes and benefits

DesirableDeliverable

Creative strategyInformational (benefitelaboration)

Problem solutionProduct comparisons

TestimonialTransformational (imageryportrayal)

Usage situationUser of productBrand personality and

valuesMotivational

HumorSex appealFear


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Medium ofAdvertising

Advantages Disadvantages

Radio Low costLocal coverage wellsegmented audienceflexibility

Audio onlyLow attention gettingcapabilitiesClutter

Radio is of a low involvement nature and has limited sensoryoptions therefore advertising pioneer David Ogilvysuggeststhat the advert must include 4 critical factors:

1.Identify your brand early in the commercial2.Identify it often3.Promise the listener a benefit early in the commercial4.Repeat it often


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Medium ofAdvertising


Magazines High informationcontentLongevityMultiple readers

Long lead time for adplacementVisual onlyLack of flexibility

Newspapers High coverage at lowcostShort lead time forplacing adsTimely (current ads)

Short lifePoor reproductionqualitySelective readerexposure

Usually readers only glance at the most visible elements of printads.

Hence it is important to be direct: Clarity, Consistency and

Branding

Consistency is key in creating brand awareness and strong brand

associations


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Medium of advertising Advantages Disadvantages

Direct Response High selectivityReader controls exposure

High information contentEasy to establishrelationships.

High cost per customerPoor image

Clutter

Use of mail, telephone, internet and other non-personal contact tools to

communicate with customers and prospects.

Purpose is to elicit some type of behaviour from the consumer e.g. use of

infomercials


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Interactive Customized and personalEngaging

Often lack emotionality

WebsitesCustomers go online to search for infoWebsites must convey consumer relevant info e.g. P&G pampers.com-

gives baby and parenting advice

Interactive adverts

Mobile marketing

Build a platform for solid relationships


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Outdoor Location specificHigh repetitionEasily noticed

Short exposure timeLocal restrictions

Non-traditional, alternative or supportive form of advertising

Idea behind it is to give marketers an alternative environment in which to

promote their products.

Examples: movies house adverts, product placement and point of purchase

advertising.


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SALES PROMOTION

Short term incentives to encourage trail & usage of a

product or service

Trade consumers

Financial incentives/discounts given to retailers, distributors, etc

Slotting allowances, POP displays, contests, cooperative ads

End consumers

Designed to change the choices, quantity or timing of consumer

product purchases


Incentive to buy Manufacturers can price discriminate Traders can maintain full stocks

Decrease brand loyalty More brand switching Decreased quality perceptions Increased price sensitivity

EVENT MARKETING &


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EVENT MARKETING &

SPONSORSHIP

Public sponsorship of events or activities related to sport,art, entertainment or social causes

(Castle lager + soccer, Standard Bank + cricket, FIFA)

Sponsors become part of a personally relevant moment in

consumers lives & are able to broaden & deepen the

relationships with their target market

Advantages

Identify with a particular target market of lifestyle Increase awareness of company or brand name

Create or reinforce consumer perceptions of key brand image associations Enhance corporate image dimensions Create experiences and evoke feelings Express commitment to community or social issues Entertain key clients or reward key employees Permit merchandising or promotional opportunities

PUBLIC RELATIONS &


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PUBLIC RELATIONS &

PUBLICITY

Programs that are designed to promote or

protect a companys image or products

Publicity

Nonpersonal communication such as press releases,

media interviews, feature articles, etc

Public Relations

+Annual reports, fund raising, lobbying, etc

Buzz Marketing (only works for high-interest products)


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PERSONAL SELLING

Face-to-face interaction with prospective

customers for the purpose of making

salesAdvantages Disadvantages Send a detailed, customizedmessage Marketers can gatherfeedback to close the sale

Easier identify prospectivebuyers Tailor solutions to their needs Demonstrate product usage

High costs Lack of breadth


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C C C


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Using IMC Choice Criteria

Evaluating communication options

Establishing priorities & tradeoffs

Executing final design &

implementation


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1.Coverage

Breadth

Depth

2. Contribution

3. Commonality

4.Complementary

5.Versatility

6. Cost

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Commonality and Complementaritywill often be inversely related.

Versatility andComplementarity

will also often be inversely related.Commonality and Versatility do notshare an obvious relationship.

G l M G id li


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General Marcoms Guidelines

1. Be analytical

2. Be curious

3. Be single-minded

4. Be integrative

5. Be creative

6. Be observant

7. Be patient

8. Be realistic

Coordinating Media to Build


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Coordinating Media to Build

Brand Equity

Factors Creating Weak Brand Links

Competitive Clutter

Ad Content & Structure

Consumer Involvement

Strategies to Strengthen Communications

Effects

Brand Signatures

Ad Retrieval CuesMedia Interactions

TV Ads over Time

How does IMC contribute to


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How does IMC contribute to

Brand Equity?

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Documents

Unit 2 RBPM Brand Equity