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)
What are the types of POPs? (3)
Category: necessary (but not necessarily sufficient) conditions for brand choice
Competitive: designed to negate a competitor’s POD
Correlational: if good at one thing, cannot be good at another
What are positioning guidelines? (6)
- Defining and communicating the competitive frame of reference
- Choosing PODs
- Establishing POPs and PODs
- Straddle positions
- Updating position overtime
- Developing a good positioning
Defining and communicating the competitive frame of reference (4)
- Defining: determine category membership
- Communicating: announce chosen category membership
- Exemplars: well-known, noteworthy brands in a category
- Product descriptor: very compact means of conveying category origin
Choosing PODs (3 criteria)
Desirability: the difference must be relevant and important to consumers
Deliverability
- Feasibility: must be designed to support the desired association
- Communicability: consistent with existing consumer knowledge
Differentiation: consumers must find the POD distinctive and superior
Establishing POPs and PODs (3)
- Separating the attributes (2 different marketing campaigns)
- Leveraging equity of another equity (link to another entity to establish their POP or POD)
- Redefining the relationship (positive relationship between POP and POD)
Straddle positions
two frames of reference
- one set of POPs and PODs
the POP in one category becomes the POD in another
Updating positions over time
positioning will evolve to better reflect market opportunities or challenges
POP and POD may be redefined, added or dropped
2 ways to update positions
- Laddering - deepening meaning of the brand
- Reacting - responding to competitive actions
What does the ABA model consis of?
Attributes: descriptive features of the brand
Benefits: personal meanings attached to the brand
Attitudes: overall evaluations about the brand’s attributes and benefits
What is internal alignment?
the core values need to be communicated internally and lived within the organization
- employees properly aligned with the brand
Developing a good positioning (4)
- foot in the present, foot in the future
- identify all relevant POPs
- reflects consumers’ POV
- duality exists in the positioning (rational vs emotional)
What is a brand mantra? (3)
3 to 5 word phrase capturing the essence of the brand positioning
- brand function (describes nature of product)
- descriptive modifier (clarifies nature)
- emotional modifier (explains the main benefits)
