BM Resonance and Value Chain Flashcards
4 Steps to building a strong brand
- Ensure identification of the brand with customers and an association of the brand
- Firmly establish the totality of brand meaning in the minds of customers
- Elicit the proper customer responses to the brand.
- Convert brand responses to create brand resonance and an intense, active loyalty relationship between customers and the brand.
Brand Resonance pyramid
Top: Resonance (Loyalty, Attachment, Community, Engagement)
Tier 2:
Judgement (Quality, credibility, consideration)
Feeling (Warmth, fun, excitement)
Tier 3:
Performance (price, primary characteristics, durability)
Imagery (values, history, heritage, user profile)
Tier 4:
Salience
(Category Identification, Needs Satisfied)
Sub-dimensions of Brand Resonance Pyramid (Stages of Brand Development)
Bottom to top:
Identity: Who are you?
Meaning: What are you
Response: What about you?
Relationship: What about you and me?
Sub-dimensions of Brand Resonance Pyramid (Branding Objective at Each stage
bottom to top
Depp, broad, brand awareness
points of parity and difference
positive, accessible reaction
intense, active loyalty
Brand Salience
How easily and often the brand is evoked under various situations or circumstances
Breadth and depth of awareness:
Gives a product identity by linking brand elements to:
The product category
The associated purchase
The consumption or usage situations
Strategic implications of brand salience
Brand needs to be top-of-mind and have sufficient mind share:
But also must do so at the right times and places
Brand performance
Describes how well the product or service:
o Meets customers’ more functional needs
o Rate on objective assessments of quality
o Satisfies utilitarian, aesthetic, and economic customer needs and wants in the product or service category
Attributes that often underlie brand performance?
o Primary ingredients and supplementary features
o Product liability, durability, and serviceability
o Service effectiveness, efficiency, and empathy
o Style and design
o Price
Brand Imagery
Brand imagery depends on the extrinsic properties of a product or service
4 main kinds of intangibles thatcan be linked to the brand?
- User profiles
- Purchase and usage situations
- Personality and values
- History, heritage, and user experiences
User imagery
One set of brand imagery associations is about the type of person or organization who uses the brand
Gender
Age
Race
Income
Purchase and usage imagery
Associations that tell consumers under what conditions or situations they can or should buy and use a brand
Brand personality and values
Through consumer experience or marketing activities, brands may take on personality traits or human values
5 Dimensions of brand personality
SECSR
Sincerity
Down-to-earth, wholesome, cheerful, honest
E.g., Patagonia
Excitement
Daring, spirited, up to date
E.g., tiktok
Competence
Reliable, successful
E.g., Amazon, Apple, BMO
Sophistication
Upper-class and charming
E.g., Nespresso, any luxury brand
Ruggedness
Outdoorsy and tough
E.g., Jeep, MEC, Nalgene
Brand Judgment
Customers’ personal opinions about and evaluations of a brand
Consumers form judgments by putting together all the different brand performance and imagery associations
Brand Quality
Defined by specific attributes and benefits of a brand
Consumers can hold a host of attitudes toward a brand:
But the most important relates to its perceived quality
Perceived quality measures are inherent in many approaches to brand equity
Brand Credibility
Judgments about the company or organization behind the brand
Perceived expertise
Competence, ability to be a leader, innovative
Trustworthiness
Likability
Fun and interesting brand
What makes up brand credibility?
Perceived expertise
Competence, ability to be a leader, innovative
Trustworthiness
Likability
Fun and interesting brand
Brand considerations
Unless a consumer gives serious consideration to purchasing, how highly they regard the brand is of little importance
Depends on the extent to which strong and favourable brand associations can be created
Brand Superiority
Measures extent to which customers view the brand as unique:
And better than other brands
Brand Feelings
Customers’ emotional responses and reactions to a brand
Brand feelings relate to the social currency evoked by the brand
Feelings can be:
- Experiential and immediate, increasing in level of intensity
- Private and enduring, increasing in level of gravity
6 Types of Brand-building feelings
WEFSSS
- Warmth
- Fun
- Excitement
- Security
- Social approval
- Self-respect
Brand Resonance
Ultimate relationship and level of identification that a customer has with a brand
4 categories of brand resonance
- Behavioral loyalty
- Attitudinal attachment
- Sense of community
- Active engagement
Behavioural Loyalty
Repeat purchases and the amount or share of category volume attributed to the brand
Attitudinal attachment
Resonance requires a strong personal attachment
- Going beyond having a positive attitude:
o Viewing the brand as something special
Sense of community
Brand may take on a broader meaning by conveying a sense of community
Social phenomenon in which customers feel a kinship or affiliation with others associated with the brand
Active engagement
Perhaps the strongest affirmation of brand loyalty
Willing to invest time, energy, money, or other resources beyond those expended during purchase or consumption
Brand Building Implications
Marketers can assess their brand’s progress in their brand-building efforts through the brand resonance model:
Brand Value Chain
A structured approach to assessing the sources and outcomes of brand equity and the manner by which marketing activities create brand value
- Marketing program investment
Program quality multiple
- customer mind-set
marketplace conditions multiplier
- Market performance
investor sentiment multiplier
- shareholder value
Marketing program investment
Any marketing program investment that can contribute to brand value development
Program quality multiplier
DRIVE
o Distinctiveness
o Relevance
o Integrated
o Value
o Excellence
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Customer mind-set
Includes everything that exists in the minds of customers with respect to brand:
- Brand awareness
- Brand associations
- Brand attitudes
Marketplace conditions multiplier
Extent to which value created depends on factors beyond the individual customer:
o Competitive superiority
o Channel and other intermediary support
o Customer size and profile
Market performance
- Price premiums
- Price elasticities
- Market share
- Brand expansion
- Cost structure; reduced marketing program expenditures
- Brand profitability
Investor sentiment multiplier
Financial analysts and investors arrive at their brand valuations and investment decisions through the following:
- Market dynamics
- Growth potential
- Risk profile
- Brand contribution
Shareholder value
Financial marketplace formulates opinions and assessments
- Direct financial implications for brand value
The brand value chain implications
Value creation begins with the marketing program investment
Value creation requires more than an initial marketing investment
Band value chain provides a detailed road map for tracking value creation
