Rationale of Customer-Based Brand Equity Model

Basic premise: Power of a brand resides in the minds of customers Challenge is to ensure customers have the right types of experiences with products & services and their marketing programs to create the right brand knowledge structures:
Thoughts Feelings Images Perceptions Attitudes
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Building Customer-Based Brand Equity

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

CUSTOMER-BASED BRAND EQUITY PYRAMID

4. RELATIONSHIPS = RESONANCE What about you & me?

3. RESPONSE = JUDGMENTS FEELINGS

What about you?

2. MEANING = PERFORMANCE IMAGERY What are you?

SALIENCE

1. IDENTITY =

Who are you?

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Salience Dimensions
Depth of brand awareness
Ease of recognition & recall Strength & clarity of category membership

Breadth of brand awareness

Purchase consideration Consumption consideration

Performance Dimensions
Primary characteristics & supplementary features Product reliability, durability, and serviceability Service effectiveness, efficiency, and empathy

Style and design

Price
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Imagery Dimensions
User profiles
Demographic & psychographic characteristics Actual or aspirational Group perceptions -- popularity

Purchase & usage situations

Type of channel, specific stores, ease of purchase Time (day, week, month, year, etc.), location, and context of usage

Personality & values

Sincerity, excitement, competence, sophistication, & ruggedness

History, heritage, & experiences

Nostalgia Memories
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Judgment Dimensions
Brand quality
Value Satisfaction

Brand credibility
Expertise Trustworthiness Likability

Brand consideration
Relevance

Brand superiority
Differentiation
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Feelings Dimensions
Warmth Fun Excitement Security Social approval Self-respect

Resonance Dimensions
Behavioral loyalty
Frequency and amount of repeat purchases

Attitudinal attachment
Love brand (favorite possessions; a little pleasure) Proud of brand

Sense of community
Kinship Affiliation

Active engagement
Seek information Join club Visit web site, chat rooms
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Customer-Based Brand Equity Model

ConsumerBrand Resonance

INTENSE, ACTIVE LOYALTY

Consumer Judgments

Consumer Feelings

RATIONAL & EMOTIONAL REACTIONS

Brand Performance

Brand Imagery

POINTS-OFPARITY & POINTS-OFDIFFERENCE

Brand Salience

DEEP, BROAD BRAND AWARENESS

Sub-Dimensions of CBBE Pyramid

LOYALTY ATTACHMENT COMMUNITY ENGAGEMENT

QUALITY CREDIBILITY CONSIDERATION SUPERIORITY

WARMTH FUN EXCITEMENT SECURITY SOCIAL APPROVAL SELF-RESPECT

PRIMARY CHARACTERISTICS & SECONDARY FEATURES PRODUCT RELIABILITY, DURABILITY & SERVICEABILITY SERVICE EFFECTIVENESS, EFFICIENCY, & EMPATHY STYLE AND DESIGN PRICE

USER PROFILES PURCHASE & USAGE SITUATIONS PERSONALITY & VALUES HISTORY, HERITAGE, & EXPERIENCES

CATEGORY IDENTIFICATION NEEDS SATISFIED

Brand Positioning
Define competitive frame of reference
Target market Nature of competition

Define desired brand knowledge structures

Points-of-parity
necessary competitive

Points-of-difference
strong, favorable, and unique brand associations
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Issues in Implementing Brand Positioning

Establishing Category Membership Identifying & Choosing POPs & PODs Communicating & Establishing POPs & PODs Sustaining & Evolving PODs & POPs

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Establishing Category Membership

Product descriptor Exemplar comparisons

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Identifying & Choosing POPs & PODs

Desirability criteria (consumer perspective)
Personally relevant Distinctive & superior Believable & credible

Deliverability criteria (firm perspective)

Feasible Profitable Pre-emptive, defensible & difficult to attack
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Major Challenges in Positioning

Find compelling & impactful points-ofdifference (MacMillan & McGrath, HBR, 97)
How do people become aware of their need for your product and service? How do consumers find your offering? How do consumers make their final selection? How do consumers order and purchase your product or service? What happens when your product or service is delivered? How is your product installed? How is your product or service paid for?
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Major Challenges in Positioning

Find compelling & impactful points-ofdifference (cont.)
How is your product stored? How is your product moved around? What is the consumer really using your product for? What do consumers need help with when they use your product? What about returns or exchanges? How is your product repaired or serviced? What happens when your product is disposed of or no longer used?
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Communicating & Establishing POPs & PODs

Create POPs and PODs in the face of attribute & benefit trade-offs
Price & quality Convenience & quality Taste & low calories Efficacy & mildness Power & safety Ubiquity & prestige Comprehensiveness (variety) & simplicity Strength & refinement
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Strategies to Reconcile Attribute & Benefit Trade-Offs

Establish separate marketing programs Leverage secondary association (e.g., cobrand) Re-define the relationship from negative to positive

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Sustaining & Evolving POPs & PODs

Core Brand Values & Core Brand Proposition

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Core Brand Values

Set of abstract concepts or phrases that characterize the 5-10 most important dimensions of the mental map of a brand. Relate to points-of-parity and points-ofdifference
Mental Map Core Brand Values Brand Mantra

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Brand Mantras
A brand mantra is an articulation of the heart and soul of the brand.
Brand mantras are short three to five word phrases that capture the irrefutable essence or spirit of the brand positioning and brand values.

Nike
Authentic Athletic Performance

Disney
Fun Family Entertainment

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Building Customer-Based Brand Equity

Brand knowledge structures depend on . . .

The initial choices for the brand elements

The supporting marketing program and the manner by which the brand is integrated into it Other associations indirectly transferred to the brand by linking it to some other entities

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Brand Elements
A variety of brand elements can be chosen that inherently enhance brand awareness or facilitate the formation of strong, favorable, and unique brand associations: Brand Name Logo Symbol Character Packaging Slogan

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Brand Elements Choice Criteria: General Considerations

Memorable
Easily Recognized Easily Recalled

Adaptable
Flexible & Updateable

Protectable
Legally Competitively

Meaningful
Credible & Suggestive Rich Visual & Verbal Imagery

Transferrable
Within & Across Product Categories Across Geographical Boundaries & Cultures
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Appealing
Fun & Interesting Aesthetics