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Customer Based Brand Equity

(CBBE)
Chapter 2
Sept 1-8
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--A distinguishing name and/or symbol to
identify and differentiate products from those
offered by competitors.
--Brand equity: the set of assets (or liabilities)
linked to a brand name and symbol that goes
beyond the value provided by the product.

What is a brand?
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CBBE
Power of the brand = what resides in the
mind of the consumers
Differential effect.
Brand knowledge.
Consumer response to marketing.

It is a bridge between Reflection Past-
Present-Direction for Future
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Advantages of a Strong Brand
Improved perceptions of product performance.
Greater loyalty.
Less vulnerability to competitor threats.
Less vulnerability to market crises.
Larger margins.
Enhanced financial performance.
More inelastic consumer response to price increase.
More elastic consumer response to price decrease.
Greater trade cooperation and support.
Increased communication effectiveness.
Potential licensing opportunities.
Brand extension Opportunities.
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Customer Equity
Value equity qualti, price, and convenience.
Brand equity brand awareness, customer brand
attitude, customer perception of brand ethics.
Relationship equity loyalty programs, special
recognition and treatment programs, community
building programs, and knowledge building
programs.
Brand Image - Strength, Favorability, and
Uniqueness.
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Brand building
Ensure identification of the brand with consumers
and an association with a specific product class or
consumer need.
Establish the totality of brand in consumers mind
linking the tangible and intangible associations with
certain properties.
Elicit proper consumer response.
Convert the response to intense and active loyalty.
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Brand building
Who are you - Brand identity?
What are you brand meaning?
What about you think and feel brand response?
What about you and me brand relationship or
association?

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Brand building
Brand identity salience..
Brand meaning Performance and imagery.
Brand response judgment and feeling.
Brand relationship resonance.

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Brand building
Identity or Salience category identification, need satisfaction.
Brand meaning
Performance (characteristics, features, reliability, durability,
serviceability; service effectiveness, efficiency, and empathy; Style,
Design, and Price.
Imagery (user profile, personality and values, history, heritage and
experience; purchase and usage situation).
Response
Judgment (quality, credibility, consideration, and superiority) and feeling
(warmth, fun, excitement, security, social approval, self-respect).
Resonance or relationship loyalty, attachment, community,
engagement.

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Product, Price, Community, Communication
and Distribution Programs
Wraparounds
A Simple Conceptual Model of Brand Equity
Core Product/
Service
Source: Keller (1996), Aaker (1996), Strategic Market Research Group, Marketspace Analysis
. . . provides positive
consumer responses . . . A good brand . . .
Customer Benefits
Confidence
Loyalty
Satisfaction
Firm Benefits
Reduced
marketing costs
Increased
margins
Opportunity for
brand extensions
. . . and benefits both
target customers and firm
Brand Awareness
Depth
Breadth
Brand Associations
Strength
Relevant
Consistent
Valence
Uniqueness
Memorable
Distinctive
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Brand Hierarchies
Creates a tree structure of brands in
consumers mind
Duke
Fuqua
Law
MBA PhD
Weekend Daytime
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Brand Hierarchies
There are positive and negative associations at
each level (avoid or fix the negative levels)
Corporate (Duke)
Family (Fuqua)
Individual (MBA)
Modifier (Daytime)
J&J is corporate, P&G is not. Thus, benefits
tend to be abstract (safety) and transfer across
individual brands.
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Marketing Programs to Build Brand Equity
Product
Pricing
Communication
Promotional
Program
Distribution

Brand Equity

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In class branding exercise
UNT-COBA
Investigate and find answers to the six brand
building blocks
1. Salience
2. Performance.
3. Imagery.
4. Judgment quality, credibility, consideration, &
superiority.
5. Feelings.
6. Resonance loyalty, attachment, community,
engagement.