Chapter 3: Brand resonance and the brand value chain

Question 1

What are the four steps of brand building?

Answer 1

1. Brand identity
2. Brand imaging
3. Brand responses
4. Brand relationships
5. Ensure identification of the brand with customers and an association with the brand in customer’s mind
6. Establish totality of the brand meaning in mind of customers
7. Elicit proper customer responses to the brand
8. Convert brand responses to create brand resonance and loyal relationship

Question 2

What are brand building blocks?

Answer 2

The brand building blcoks pyramid, divides the brand steps into categories, you start at the bottom (1) and finish at the top. Within each step there are multiple buidling blocks
1. Identity
- Brand salience
2. Meaning
- Performance
- Imagery
3. Response
- Judgments
- Feelings
4. Relationships
- Resonance

Question 3

What is meant with brand salience?

Answer 3

Measures varous aspects of the awareness of the brand and how easily and often the brand is evoked under various situations or circumstances.

Depth = measures how likely it is for a brand element to come in mind
Breadth = measures the range of purchase and usage situations in which the brand element comes to mind

Question 4

What is meant with brand performance (building blcoks)?

Answer 4

Describes how well the product or service meets customers’ more functional needs.

Question 5

What are important types of attributes and benefits that often underlie brand performance?

Answer 5

1. primary ingreidents and supplementary features
2. Product reliability (consitency over time), serviceability (ease to repair)and durability (LIFETIME)
3. Service effectiveness (how well brand satifies customers service requirements), efficiency (speed and responsiveness) and empathy (trusting, caring and having customers in mind)
4. Style and design
5. Price

Question 6

What is meant with brand imagery (building bloks)?

Answer 6

Extrinsic properties of the product or service. How brand attempts to meet customers’ psychological or social needs.
The intangible aspects of the brand

Question 7

What are four main tangibles of brand imagery?

Answer 7

1. User profiles
2. Purchase abd usage situation
3. Personality and values
4. History, heritage and user experiences

Question 8

What is meant with brand judgments (building blocks)?

Answer 8

Custimers’ personal opinions about the brand.

Question 9

What are important types of customer judgments?

Answer 9

• Brand quality
• Brand credibility = extent to which customers see the brand as credible in terms of three dimensions; brand expertise, brand trustworthiness and brand likeability
• Brand consideration
• Brand superiority = extent to which brand is perceived as unique/better than other brands

Question 10

What are the three dimensions of brand credibility?

Answer 10

1, Brand expertise = Competent, innovative, market leader
2. Brand trustworthiness = dependable, keeping customer interests in mind
3. Brand likeability = fun, intersting and woth spending time with

Question 11

What is meant with brand feelings (building blocks)?

Answer 11

Customers’ emotional responses and reactions to the brand.
Also relate to socuak currency evoked by the brand

Question 12

Six important types of brand-building feelings

Answer 12

1. Warmth = Soothing types of feelings
2. Fun = feel amused
3. Excitement = make customers feel energized
4. Security = Feeling of safety, comfort and self-assurance
5. Social approval = Brand gives consumers a belief that others look favorably on their appearance
6. Self-respect = make them feel better about themselves

Question 13

What is brand resonance (building blocks)?

Answer 13

Describes the nature of this relationship and the extent to which custimers feel that they are in sync with the brand.
Characterized in terms of intesity and activity, split up in 4 categories;
- Behavioral loyalty = repeat purchases
- Attitudinal attachment = go beyond having a positive attitude
- Sense of comminuty
- Active engagement = strongest affirmation

Question 14

What are the two dimensions of brand resonance?

Answer 14

Intensity: Measures the strength of the attitudinal attachment and sense of community

Actvity: tells us how frequently the consumer buys and uses the brand

Question 15

What are the implications of the brand builing blocks?

Answer 15

Provides a roadmap and guidance for brand building.
reinforces some important building blocks;
1. Customers own brands
2. Don;t take shortcuts with brands
3. Brands should have duality
4. Brands should have richness
5. Brand resonance provides important focus
6. Customer networks strengthen brand resonance

Question 16

What is the brand value chain?

Answer 16

A structured approach to assessing the sources and outcomes of brand equity and the manner by which marketing activities create brand value.
Provides: Insights to support managers

Question 17

What are the different stages of the brand value chain?

Answer 17

• Marketing program investment
• Program quality multiplier
• Customer mindset
• marketplace conditions multiplier
• Market performance
• Investor sentiment multipier
• Shareholder value

Question 18

Marketing program investment stage

Answer 18

all investments that contribute to brand value development (intentionally or not)

Question 19

Program quality multiplier stage

Answer 19

Marketing program’s ability to affect the customer mindset.
Key considerations: DRIVE
Distinctiveness
Relevance
Integrated
Value
Excellence

Question 20

Customer mindset stage

Answer 20

Everything that exists in the minds of customers with respect to a brand. Thoughts, feelings, experiences, images, perceptions, beliefs, attitudes, etc.
5 A’s can be used to measure customer mindset

Question 21

what are the 5 A’s

Answer 21

Brand:
Awareness
Associations
Attitudes
Attachment
Activity

Question 22

Marketplace conditions multiplier (stage)

Answer 22

extent to which value created in the minds of customers affects market performance depends on factors beyond the individual customers.
examples of factors;
- Competitive superiority
- Channel and othe intermediary support
- Customer size and profile

Question 23

Market performance stage

Answer 23

Brand value is created with higher market shares, greater price premiums, more elastic responses to price decreases and inelastic resaponses to price increases

Question 24

Investor sentiment multiplier stage

Answer 24

factors are considered to valuate and invest:
- Market dynamics
- Growth potential
- Risk profile’
- Brand contribution

Question 25

Shareholder value stage

Answer 25

financiual markewtplacxe formulates opninion and assessments that have very direct financial implications for brand value
3 important indicastors;
- Stock price
- Price/earnings
- Overall market capitalization of firn

Question 26

implications of brand value chain

Answer 26

1. Value creations starts with marketing programinvestment
2. Value creation requires more than initial investment, in each multiplier stage the investment can increase/decrease
3. Provides detailed roadmap
4. Estimate shareholder value