CUSTOMER-BASED EQUITY AND BRAND POSITIONING Flashcards
When consumers react more favorably to a product and the way it is marketed when the brand is identified than when it is not.
Positive customer-based brand equity
When consumers react less favorably to marketing activity for the brand compared with an unnamed or fictitiously named version of the product.
Negative customer-based brand equity
The three key ingredients of CBBE
Differential effect
Brand knowledge
Consumer response to marketing
can be used by brands that have a range of products that all target a specific demographic segment.
Differentiated marketing
Is the process of distinguishing your brand from competitors by emphasising the unique aspects, attributes, or benefits your brand, service or product, offers. It’s crucial because, in today’s competitive market, customers are often faced with multiple options.
Brand Differentiation
is all the associations the brand has with consumers – such as thoughts, feelings, images, perceptions, beliefs, attitudes and experiences.
Brand Knowledge
include luxury items and certain food and beverages, as price changes can have an impact on demand to a great extent. – You can always go for other options.
Elastic Goods
may include items such as tobacco and prescription drugs, as demand often remains constant despite price changes.
Inelastic Goods
5 Types of Brand Awareness
- Recognition Awareness
- Recall Awareness
- Top-of-Mind Awareness
- Aided Brand Awareness
- Emotional Brand Awareness
Represent stored information or
concepts
Nodes
Represent the strength of
association between the nodes
Links
4 main types of positioning strategies
- Competitive Positioning
- Product Positioning
- Situational Positioning
- Perceptual Positioning
involves comparing your product or service with that of the competitors.
Competitive Positioning
includes creating benefits for customers by aligning those features with specific needs.
Product Positioning
includes positioning your product as a solution to the specific needs of targeted customers.
Situational positioning
includes changing how people feel about their situation by altering perceptions.
Perceptual positioning
(How to establish and maximize Competitive Advantage in the minds of customers)
Brand Positioning model
(How to create intense and actively loyal customers; Customer Loyalty)
Brand Resonance model
(How to trace the value creation process to better understand the Financial Impact of marketing expenditures and investments)
Brand Value Chain model
Consumers’ ability to identify the brand under different conditions; it is the familiarity of the brand to the consumer
Brand Awareness
Consumers’ perceptions about the brand
Brand Image
Consumers’ ability to confirm prior exposure to the brand when given the brand as a cue.
Brand Recognition
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.
Brand Recall
Requires strong favourable and unique brand associations.
Positive Brand Image
Descriptive features that characterize a product or service.
Brand Attributes
The personal value and meaning that consumers attach to the product or service attributes.
Brand Benefits
Act of designing the company’s offer and image so that it occupies a distinct and valued place in the target customers’ minds
Brand Positioning
e.g. purchasing habits, spending habits, user status, and brand interactions)-requires you to know about your customer’s actions. These activities may relate to how a customer interacts with your brand or to other activities that happen away from your brand.
Behavioral Segmentation
(e.g. age, gender, income, location, family situation, education, ethnicity, etc.)
Demographic Segmentation
(e.g. personality traits, values, attitudes, interest, lifestyles, psychological influences, subconscious and conscious beliefs, motivations, and priorities)
Psychographic Segmentation
(ZIP code, City, Country, Radius around certain location, Climate, Urban or Rural)
Geographic Segmentation
Attributes shared with other brands
ex. they are two very famous fresh soft drinks
Points of Parity (POP)
Attributes or benefits that consumers strongly associate with a brand
ex. pepsi is more trendy and cool with an image of young people and celebrities while coca cola is an emotional brand. This is due to the advertising campaigns they both spreas
Points of Difference
Divides the market into distinct groups of homogeneous consumers who have similar needs and consumer behavior
Market Segmentation
-Considers resources, capabilities and likely intentions of other firms.
-Allows marketers to choose markets where consumers can be profitably served.
Competitive Analysis
Even if a brand does not face direct competition in its product category, and thus does not share performance related attributes with other brands, it can still share more abstract associations and face indirect competition in a more broadly defined product category.
Indirect Competition
Result of broader category competition or the intended future growth of a brand.
Multiple Frames of Reference
-Companies who sell closely the same products to the same market.
Direct Competitiors
-Companies who sell somehow related products to the same market.
Indirect Competitors
Companies or organizations who are capable of producing and offering the same products to the same market in the future.
Future Competitors
