Strategic Brand Management - Chapter 2 Flashcards
What is customer based brand equity (CBBE)?
CBBE concept approach brand equity from the perspective of the customer - understanding what the needs and wants of customer and understand that the power of brand lies on what the customer have experienced
“Differential effect that brand knowledge has on consumer response to the marketing of that brand”
What are the three key ingredients to CBBE?
- Differential effect
- Brand knowledge
- Customer response to marketing
What are the sources of brand equity?
- Brand equity
- Brand Image
What is brand awareness?
Consist of brand recognition and brand recall
1. Brand recognition: ability to recognize the brand since they have seen it before
2. Brand recall: ability to remember the brand when the category is mentioned
What are some advantages of brand awareness?
- Learning advantages - strength of association
- Consideration advantages - Increase the likelihood that the brand will be in the “consideration set” - a handful of brands recalled and considered when making a purchase
- Choice advantages - customer tend to adopt a decision rule to buy a more familiar & well established brand especially in low involvement setting
- Establishing brand awareness - increasing brand familiarity due to exposure
What is a brand image?
Creating brand awareness by increasing the familiarity of the brand and forging strong association through repeated exposures and consumption cues/relevant products (brand recall)
How to create differentiated brand?
- Increase the strength of brand associations
- Increase the favorability of brand associations
- Develop uniqueness (USP) of brand associations
What is brand positioning?
act of designing the company’s offer and image so that it occu[ies a distinct and valued place in target customers mind
How to decide on a brand positioning?
Determining a frame of reference:
1. Identify the target market - identifiability, size, accessibility, and responsiveness
2. Identify the main competitors - direct comp, indirect comp (benefit level)
3. Identify how the brand is similar to these competitors
4. Identify how the brand is different from these competitors
What is Points of Difference (PODs)?
Points of difference (PODs) is the attributes or benefits that consumers strongly associate with a brand, positively evaluate, and believe that they could not find the same extend with a competitive brand
Generally defined in terms of customer benefit - proof points or reasons to believe (RTBs)
What is Points of Parity (POPs)?
POP not necessarily unique to the brand but may in fact be shared with other brands
Category POP - necessary, but not necessarily sufficient
Competitive POP - negate competitors’ POD
Correlational POP - potentially negative association that arises from the existence of other, the more positive association for the brand (Often attributes that make up their POPs or PODs are inversely related) -> What cons see as good cannot be seen as good for something else (e.g. inexpensive and high quality does not work)
POPs vs PODs?
POPs are important because they can undermine PODs
Unless certain POPs can be achieved to overcome potential weakness, PODs may not even matter
POPs are easier to achieve than PODs where brand must demonstrate clear superiority
Guideline to positioning?
- Define and communicate the competitive frame of reference - which products or set of products does the brand compete?
- Choosing POD
- Establish POP and POD
- Straddle positions - straddle two frames of reference with one POD and POP, POD of A become POP of B and vice versa
- Updating positioning over time
How to Define and communicate the competitive frame of reference
- Communicating category benefits - reassure cons that a brand will deliver, use benefit to announce category membership and use performance as evidence
- Exemplars - well-known, noteworthy brands. Leverage known brands to boost performance
- Product descriptor - ensuring that brand name or attributes is associated to the positive in the categories
How to choose POD?
- Desirability criteria - POD personally relevant and important to customer
- Deliverability criteria - it is feasible to deliver and it is effectively communicated
- Differentiation criteria - customer must find the POD distinctive and superior
How to establish POP and POD?
- Separate the attributes - launch two different campaign each to each devoted brand and benefit
- Leverage equity of another entity - link themselves to other established things
- Redefine the relationship - powerful but difficult - convince that the relationship is in fact positive by providing different perspective and suggesting that they are just overlooking several factors
What is straddle positions?
Straddle two frames of reference with one POD and POP, POD of A become POP of B and vice versa
How to update positioning over time?
- Laddering
- Reacting
- Develop a good positioning
What is laddering?
Laddering - Deepen the meanings associated with the brand positioning by exploring underlying consumer motivation (lowest to highest)
1. Physiological needs (food, water, shelter)
2. Safety and security
3. Social needs (friendships, belonging)
4. Ego needs (prestige, status)
5. Self-actualization (self-fulfillment)
-> Means-end chains: a way to understand higher level meanings, attributes leads to benefits leads to values (Cons choose product that deliver attributes A, that provides benefit B/C, that satisfy values V
3 Stages of reacting?
- Do nothing: when action seem unlikely to recapture a POD or create a new POD
- Get on the defensive: action might have potential to disrupt -> defend by add some reassurance in the product or advertising to strengthen POPs and PODs
- Go on the offensive: potentially quite damaging -> offen by launch a product extension or ad campaign that changes the meaning fo the brand
How to develop a good positioning?
- Has a foot in the present and foot in a future.- somewhat aspirational but not too far
- Carefully identify all POPs and try not to overlook crucial disadvantaged areas, role play competitors positioning and their intended POPs
- Reflect a consumer POV on benefits garnered, an effective POD should make cklaer why it is so desirable and what unique attributes can cons get
- Develop brand in the rational and emotional components, A good POP and POD that appeal to both the head and the heart
What is a brand mantra?
A short - three to five word phrase that captures the irrefutable essence or spirit of the brand positioning
Used to provide guidance about what products to introduce under the brand, what ad campaigns to run, and where and how the brand should be sold
Help there brand present a consistent image and influence the vast number of employees to be consistent with the brand
- Communicate: category, boundaries, uniqueness
- Simple: memorable
- Inspire: personally meaningful and relevant to as many employee as possible
How to design a brand mantra?
- Emotional modifier - how the brand provide benefits in hat ways
- Descriptive modifier - clarifies it’s nature
- Brand function - nature of the product or service
