Chapter 2 Flashcards
What is customer-based brand equity (CBBE)?
model approaching brand equity from the customer perspective
stresses that the power of a brand lies in what resides in the minds and hearts of consumers
it is the differential effect that brand knowledge has on consumer response to the marketing of that brand
Three ingredients of CBBE
- Differential effect: brand equity arises from differences in consumers responses
- Brand knowledge: what consumers have learned, felt, seen, and heard about the brand as a result of their experiences over time
- Customer response: perceptions, preferences, and behaviour from customers related to all aspects of brand marketing
Marketing advantages of strong brands (6 first)
- 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
Marketing advantages to strong brands (5 last)
- More elastic consumer response to price decreases
- Greater trade cooperation and support
- Increased marketing communication effectiveness
- Possible licensing opportunities
- Additional brand extension opportunities
What makes a brand strong: brand knowledge
Associative network memory model: memory is a network of nodes and connecting links
- nodes: stored information or concepts
- links: strength of association between nodes
Components of brand knowledge (2)
- Brand awareness: strength of brand node
- Brand image: consumers’ perceptions of the brand
What does brand awareness consists of? (2)
- Brand recognition: consumers’ ability to confirm prior exposure to the brand when given the brand as cue
- Brand recall: consumers’ ability to retrieve the brand from memory when given
- the product category
- the needs fulfilled by the category
Advantages of brand awareness (3)
- Learning: establish a brand node so that consumers learn and store information about the brand
- Consideration: consumers must consider the brand when making purchase decisions
- consideration set: handful of brands receiving serious consideration for purchase
- Choice: motivation (not a life-or-death decision), ability (not all necessary knowledge), opportunity (lack of time, energy, money)
What is brand image?
creating a positive brand image
about SURF associations –> strength, uniqueness, relevance and favorability
What are strength associations?
quantity of processing information, and quality/nature of that processing
impacts the strength
- personal relevance
- consistency
What are unique associations?
sustainable competitive advantage - or unique associations - that gives consumers a compelling reason why they should buy it
POD and POP
What are relevant associations?
meaningful attributes and benefits that satisfy the needs and wants of the target consumer
What are favorable associations?
associations that are desirable to the consumers
- drives liking (even love) for the brand
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 consumers’ minds
- location in the mind
- having the right perspective
What are the steps of the brand positioning model? (3)
- Target market - market segmentation: separate tbe market into homogeneous groups who have similar needs and consumer behaviour
- criteria: identifiability, size, accessibility, responsiveness - Nature of competition: when choosing a market, marketers should consider
- indirect competition (share abstract, broader associations)
- multiple frame reference - POP (attributes shared with other brands) and POD (attributes/benefits that consumers strongly associate with the brand)
