week 3 - brand resonance + brand value chain

Question 1

explain the role of multiplers in the brand value chain

Answer 1

The model also assumes that a number of linking factors intervene between these stages.
These linking factors determine the extent to which value created at one stage transfers or “multiplies” to the next stage.
Three sets of multipliers moderate the transfer between the marketing program and the subsequent three value stages: the program quality multiplier, the marketplace conditions multiplier, and the investor sentiment multiplier.

Question 2

draw brand value chain

Answer 2

gracie boff up the bum

Question 3

explain 1. marketing program investment

Answer 3

Program targeted at current and potential consumers + support services and internal staff
Any marketing program investment that potentially can be attributed to brand value development, either intentional or not

Specifically, some of the bigger marketing expenditures relate to
product research, development, and design;
trade or intermediary support;
marketing communications (e.g., advertising, promotion, sponsorship, direct and interactive marketing, personal selling, publicity, and public relations);
and employee training.
The extent of financial investment committed to the marketing program, however, does not guarantee success in terms of brand value creation.

Question 4

The effectiveness of the marketing program and how it affects the customer mindset will depend on the

Answer 4

quality of that program investment

Question 5

How do we judge Quality of a marketing program? What criteria should be considered?
How easy is this to apply/determine?

Answer 5

clarity = How understandable is the marketing program?
Do consumers properly interpret and evaluate the meaning conveyed by brand marketing

Relevance = How meaningful is the marketing program to customers?
Do consumers feel the brand is part of their mindset? Should the brand be considered?

Uniqueness = How unique is the marketing program from those offered by competitors?
How creative or differentiating is the marketing program

Consistency = How cohesive and well integrated is the marketing program?
Do all aspects of the marketing program combine to create the biggest impact with customers

Question 6

explain value stage 2 customer mindset

Answer 6

Marketing program investment could/should result in a number of different customer related outcomes. Essentially, the issue is,
In what ways have customers been changed as a result of the marketing program?
How have those changes manifested themselves in the customer mindset?

The customer mindset includes everything that exists in the minds of customers with respect to a brand: thoughts, feelings, experiences, images, perceptions, beliefs, attitudes, behaviour.

Understanding customer mindset can have important implications for marketing programs.

Question 7

what are the 5A’s of customer mindset

Answer 7

Brand awareness The extent and ease with which customers recall and recognise the brand and thus the salience of the brand at purchase and consumption.

Brand associations The strength, favourability, and uniqueness of perceived attributes and benefits for the brand e.g., points-of-parity and points-of-difference in performance and imagery.

Brand attitudes Overall evaluations of the brand e.g., judgments and feelings it generates.

Brand attachment How intensely loyal the customer feels toward the brand i.e., resistance to change and the ability of a brand to withstand bad news (e.g., a product or service failure).

Brand activity The extent to which customers are actively engaged with the brand e.g., use of the brand, WoM, seek out brand information, promotions, and events

Question 8

explain multipler 2 - consumer

Answer 8

The extent to which value created in the minds of customers affects market performance depends on various contextual factors external to the customer.

Question 9

3 factors affecting multipler 2 consumer

Answer 9

Competitive superiority: How effective are the quantity and quality of the marketing investment of other competing brands.

Channel and other intermediary support: How much brand reinforcement and selling effort is being put forth by various marketing partners.

Customer size and profile: How many and what types of customers (e.g., profitable or not) are attracted to the brand.

Question 10

explain value stage 3 market peformanc

Answer 10

• Price premiums
• Price elasticity
• Market share
• Expansion success
• Cost structure
• Profitability (5 dimensions combind lead to profability)

Question 11

explain the market multiplier

Answer 11

Market dynamics What are the dynamics of the financial markets as a whole (e.g., interest rates, investor sentiment, or supply of capital)?

Growth potential What are the growth potential or prospects for the brand and the industry in which it operates? For example, how helpful are the facilitating factors and how inhibiting are the hindering external factors that make up the firm’s economic, social, physical, and legal environment?

Risk profile What is the risk profile for the brand? How vulnerable is the brand likely to be to those facilitating and inhibiting factors?

Brand contribution How important is the brand as part of the firm’s brand portfolio and all the brands it has?

Question 12

explain value stage 4 - shareholder value

Answer 12

Three particularly important indicators of share holder value are the stock price, the price/earnings multiple, and overall market capitalisation* for the firm.

• Market capitalisation (often market cap) is a measurement of size of a business enterprise (corporation) equal to the share price times the number of shares outstanding (shares that have been authorized, issued, and purchased by investors) of a publicly traded company