Brand Challenges, CBBE, Drivers of Strong Brands, + TB Chapters 2 & 3 Flashcards
Customer-based brand equity (CBBE)
Brand equity from the POV of the customer
Stresses that the power of a brand lies in what resides in the minds and hearts of customers
Differential effect that brand knowledge has on consumer response to the marketing of that brand
Three key components of CBBE
Differential effect
Brand knowledge
Consumer response to marketing
The benefits of strong brand equity
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
Greater trade cooperation and support
Increased marketing communication effectiveness
Possible licensing opportunities
Additional brand extension opportunities
Brand equity
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
Associative network memory model (ANMN)
Views memory as a network of nodes and connecting links
Nodes
Represent stored information and concepts
Links
Represents the strength of association between nodes
2 components of brand knowledge
Brand awareness
Brand image
Brand awareness
Related to the strength of the brand node or trace in memory, which we can measure as the consumer’s ability to identify the brand under different conditions
Brand image
Consumers’ perceptions about a brand, as reflected by the brand associations held in consumer memory
2 components of brand awareness (RR)
Brand recognition
Brand recall
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
A purchase or usage situation as a cue
eg: Coffee –> Starbucks
Advantages of brand awareness
Learning advantages
Consideration advantages
Choice advantages:
Consumer purchase motivation
Consumer purchase ability
Consumer purchase opportunity
Brand equity occurs when consumers hold SURF associations
Strong
Unique
Relevant
Favourable
^ Associations in memory
Strength (SURF)
Influenced by personal relevance and brand consistency over time
Uniqueness (SURF)
Meaningful unique point-of-difference to the brand / the reason why consumers should buy from this brand
eg: Ferrari for its history
Relevance (SURF)
The brand needs to possess meaningful attributes and benefits that satisfy the needs and wants of the target consumers
Favourable (SURF)
Those associations that are desirable to the consumers
eg: Porsche = class, performance, and fuckin taste
4 components of identifying and establishing brand positioning
Basic concept
Target market
Nature of competition
PODs and POPs
Basic concept of brand positioning
Act of designing the company’s offer and image so that it occupies a distinct and valued place in the target customers’ minds
Target market in brand positioning (I see a rat)
Divides the market into distinct groups of homogeneous consumers who have similar needs and consumer behavior
Segmentation bases of:
Identifiability
Size
Accessibility
Responsiveness
Nature of comp in brand positioning
Resources, capabilities, and likely intentions of various other firms
This competitive analysis helps marketers to choose markets for their own products or services
Must consider:
Indirect competition
Multiple frames reference
Points-of-difference (POD)
Formally defined as attributes or benefits that consumers strongly associate with a brand
eg: Tesla autopilot
Points-of-parity (POP)
Not necessarily unique to the brand but may be shared with other brands
eg: banks need to offer a range of services that other banks have - cashback, high interest return
Defining and communicating the competitive frame of reference
Marketers use product benefits to announce category membership
Uses exemplars
Exemplars
Specific products or services that serve as a model or representation of a brand’s ideal qualities and characteristics
eg: Apple iPhone - represents the brands focus on innovation, design, UX, and cutting edge technology
Product descriptor
Follows the brand name is often a very compact means of conveying category origin
eg: USAir changed its name to US Airways to divert from a poor reputation while transforming the carrier to an national instead of regional brand
Choosing PODs (3Ds criteria)
Desirability
Deliverability
Differentiation
Removing negatively correlated POP and POD
Separate the attributes
Leverage equity of another entity
Redefining the relationship to be positive
Straddle position
Positioning where a company is able to straddle two frames of reference
eg: Adidas - athletic apparel and casual apparel
2 ways of updating positioning over time
Laddering
Reacting
Laddering (position)
Deepening the meaning of brand to further expand
eg: Patagonia
Reacting (position)
Responding to competitive actions that threaten an existing positioning
Often, competitive actions aim at eliminating PODs and making them POPs
Brand value
The associations that characterize the 2 or 3 most important aspects or dimensions of a brand are called the core brand values
The best brand values are intangible
ABA model of brand associations
Attributes (descriptive features)
Benefits (personal meanings attached to the brand)
Attitudes (overall evaluations of attributes and benefits)
eg: Lululemon - attributes (product-related), benefits (functional, experiential), attitudes (overall evaluation)
Developing a good position
Has considerations for present and future
Identifies all relevant POPs
Considers consumer POV
Brand mantra
A short phrase that captures the irrefutable essence or spirit of the brand positioning. Often consists of an emotional modifier, descriptive modifier, and a brand function
eg: shit nike mantra - authentic, athletic, performance
Brand salience
Measures various aspects of the awareness of the brand and how easily and often the brand is evoked under various situations or circumstances
Measures to the extent the top-of-mind brand is made aware, what specific cues are required
Brand performance
Describes how well the product or service meets customers’ more functional needs
5 attributes under brand performance
Primary ingredients and supp features
Product reliability, durability, serviceability
Service effectiveness, efficiency, empathy
Style and design
Price
Brand feelings
Customers’ emotional responses and reactions to the brand. Six types of emotions:
Warmth
Fun
Excitement
Security
Social approval
Self-respect
Brand resonance (4 subcomponents)
Describes the nature of this relationship and the extent to which customers feel that they are in sync with the brand. 4 subcomponents:
Behavioural loyalty
Attitudinal attachment
Sense of community
Active engagement
eg: Apple, Ferrari
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
