Brand Challenges and CBBE Flashcards
What does CBBE stand for?
Consumer-Based Brand Equity
What does CBBE mean?
Consumer-Based Brand Equity is used to show how a brand’s success can be directly attributed to customers’ attitudes towards that brand
What does a positive CBBE mean?
Consumers are reacting favourably to the way the product is marketed
What does a negative CBBE mean?
Brand compared against a fictitious or unnamed brand and does do well
3 Key Ingredients of CBBE
- Differential Effect: brand equity arises from differences in customer responses (no differences - brand name product can be classified as generic
- Brand Knowledge (differences - result from customer knowledge and make-up of brand element)
- Consumer response to marketing
Marketing advantages of a strong brand
- Improved perceptions of product performance
- Greater loyalty
- Less vulnerability to competitive marketing actions
- Less vulnerability to marketing crises
- Larger margins
- More inelastic consumer response to price increases
- More elastic consumer response to price decreases
Brand equity
defined as the marketing effects or outcomes that accrue to a product with its brand name compared with those that would accrue if the same product did not have the brand name.
Shift in consumers’ mind when the brand element is present
What is Associate Network Memory Model?
Views memory as a network of nodes and connecting
links:
- Nodes—represent stored information or concepts
- Links—Represent the strength of association between the nodes
Brand associations are informational nodes linked to the brand node in memory
What is a node?
represent stored information or concepts
What is a link?
Represent the strength of association between the nodes
Brand Awareness
Brand awareness consists of brand recognition and brand recall performance
Brand Recognition
Consumer’s ability to confirm prior exposure to the brand when given the brand as a cue
brand recall
: Consumers’ ability to retrieve the brand from memory when given:
- The product category
- The needs fulfilled by the category, or
- A purchase or usage situation as a cue
strength of brand node
Increasing familiarity with brand through repeated exposure
Brand Image
Relates to consumers’ perceptions of a brand as reflected by the brand associations held in the consumers’ memory.
What are brand associations?
Brand associations are informational nodes linked to the brand node in memory
Advantage of brand awareness
Learning advantages
Consideration advantages
Choice advantages:
- Consumer purchase motivation
- Consumer purchase ability
- Consumer purchase opportunity
Brand equity occurs when?
- Consumers have high levels of awareness (recognition and recall) with the brand
- Consumers hold SURF associations (Strong, Unique, Relevant, favourable) in memory
Which SURF association is the most important?
Favourable - you will actually buy the product
What does SURF stand for?
Strong, Unique, Relevant, Favourable
What does S mean in surf?
Strength
Associations vary in their strength of connection to the brand node.
Strength is a function of both the quantity/amount of processing of information and the quality /nature of that processing.
What 2 factors directly impact the strength (SURF) of the association?
1.Personal relevance of the information
2.Consistency with which the information is presented over time
What does U mean in SURF?
Unique
It is essential to associate a meaningful unique point of difference to the brand ( the unique reason why consumers should buy it)
Some brand associations function as points of parity in consumers’ minds to negate potential points-of-difference for competitors
Some points-of-parity are requirements for a brand to compete in the category. (e.g. “my money is secure”) association for a bank
Points of parity
industry standards that make a business legitimate in their field
Points of difference
characteristics of a product or service that distinguish it from competitors
What does the R stand for in SURF?
Relevant
The brand needs to possess meaningful attributes and benefits that satisfy the needs and wants of the target consumer.
Associations are not valued equally. Some have more importance than others.
Meaningful associations will enable positive attitudes toward the brand
What does the F stand for in SURF?
Those associations that are desirable to the consumers (and are successfully delivered by the product and conveyed by the supporting marketing program for the brand).
Favourable associations drive liking (or even love) for the brand
How do managers manage brand equity?
A brand manager, then, needs to be measuring and managing the underlying drivers of brand equity of their brand
- Awareness (Recall + Recognition)
- Image
Once a sufficient level of brand awareness is created:
Marketers can put more emphasis on crafting a brand image
Creating a positive brand image?
Takes marketing programs that link strong, favourable,
and unique associations to the brand in memory
Strength of Brand Association
More deeply a person thinks about product information and relates it to existing brand knowledge, stronger is the resulting brand association
Favourability of Brand Association
Is higher when a brand possesses relevant attributes and benefits that satisfy consumer needs and wants
Uniqueness of Brand Association
- “Unique selling proposition” of the product
- Provides brands with sustainable competitive advantage
What are 3 things to Identify and Establish brand positioning?
- Brand positioning
- Market segmentation
- Nature of competition
What is Brand positioning?
Act of designing the company’s offer and image so that it occupies a distinct and valued place in the target customer’s minds
- Finding the proper “location” in the minds of consumers or market segment
- Allows consumers to think about a product or service in the “right” perspective
Market Segmentation
Divides the market into distinct groups of homogeneous consumers who have similar needs and consumer behaviour
Involves identifying segmentation bases and criteria:
* Criteria: Identifiability, Size, Accessibility, Responsiveness
Nature of Competition
A competitive analysis considers an array of factors:
- Resources, capabilities, and likely intentions of various other firms
This competitive analysis helps marketers to choose markets for their own products or services
When choosing a market, marketers must consider:
- Indirect competition
- Multiple frames reference
POD
Formally defined as attributes or benefits that consumer strongly associate with a brand
POP
Not necessarily unique to the brand but may be shared with other brands
- Easier to achieve than points of difference
- Won’t move you to choose one brand over another
Why use Exemplars?
Defining and Communicating Frame of Reference
Well-known, noteworthy brands in a category can also be used as exemplars to specify a brand’s category membership
- Reassures the benefits of using a product category
What is a product descriptor and why is it used?
Defining and Communicating Frame of Reference
Product descriptor that follows a brand name is often a very compact means of conveying category origin
Compact ways of explaining category membership
The 3D’s
Desirability,Deliverability, Differentiation
Desirability criteria
Distinctive and superior product offering
Deliverability criteria
Inherent capabilities
Differentiation criteria
What’s different in the minds of consumers
Approaches to address the problem of negatively correlated POPs and PODs include:
Separating the attributes
Leveraging the equity of another entity
Redefining the relationship
- Provide different perspectives on facts
Straddle Positions
Type of positioning where a company is able to straddle two frames of reference (two categories)
With one set of points of difference and points of parity.
The points-of-difference in one category become points-of-parity in the other and vice-versa for points-of-parity
Should positioning be changed frequently?
NO, unless to better reflect marketing opportunities or challenges
- P O D or P O P may be refined, added, or dropped as situations dictate
Laddering
takes steps to move participants from understanding the features, to why they choose a product or service, all the way down to the root motivational and emotional cause
Reacting
Responding to competitive actions that threaten an existing positioning
Competitive actions are often directed at eliminating points-of-difference to make them points-of-parity:
Or to strengthen or establish new points-of-difference
What are brand values
The associations that characterize the 2 or 3 most important aspects or dimensions of a brand are called the core brand values. (Keller, 2012)
These core brand values form the positioning of the brand.
The best core values are highly intangible.
Brand Narrative
core values (and supporting associations) can be used to create a story about a brand – a brand narrative
What does the Brand Mantra provides guidance about?
What products to introduce under the brand?
What ad campaigns to run?
Where and how the brand should be sold?
What are Nike’s emotional, descriptive modifier and brand functions?
Emotional: Authentic
Descriptive: Athletic
Function: Performance
