Customer Based Brand Equity

BRAND

MANAGEMENT

IICUSTOMER BASED BRAND

EQUITY

CBBE

Differential effect that brand knowledge

has on customer response

CBBE is positive when customers react

favorably

CBBE is negative when customers react

less favorably

Key Ingredients

Differential effect

Brand knowledge

Consumer response

Associative Network Memory

Model

Associative Network Memory Model

Nodes- represent information or concepts

Links- represents the strength between 2

nodes

Sources of Brand Equity

CBBE occurs when a customer has a high

level of

1. Brand awareness

2. Brand familiarity

3. Has strong brand associations

Brand Knowledge

= Brand awareness + Brand Image

Brand Awareness- ability to identify the

brand under various circumstances

Brand Image- consumer’s perceptions

about a particular brand

Brand Awareness

Brand

Recognition

Brand

Recall

Brand

Awareness

Brand Awareness

Brand Recognition- prior exposure to the

brand given the brand as cue

Brand Recall – retrieve from memory

when given the product

category/purchase situation/ usage

situation

Brand Awareness Benefits

Learning

Consideration

Choice

Establishing Brand Awareness

Establishing Brand Awareness

Brand Image

Image- linked mainly to brand

associations

Building them up –

Brand attributes-------------Desirability

Brand Benefits--------------Deliverability

Four Steps of Brand Building

-Branding Ladder

Brand Identification

Brand Meaning

Consumer

Response

Brand Relationship

-Who are you ?

-What are you ?

-What I feel about you ?

-What about you & me ?

OBJECTIVES STAGES

Intense, active loyalty

Positive, accessible reactions

Points of Parity & Diff

Deep brand awareness

Brand Salience

Achieving the right identity

Measures the level of brand awareness

Brand Salience is the fundamental block-

necessary, but not sufficient

High salience- a brand having both

breadth & depth

Brand Salience

Breadth(range of purchase/usage

situations)

& Depth(likelihood of coming to mind)

Product Category

(product class-category-type-brand)

Strategic Implications

Brand Performance

Whether the product/service meets the consumer’s needs or not

5 Attributes:

• Primary ingredients & supplementary features

• Product- reliability, durability, serviceability

• Service- effectiveness, efficiency, empathy

• Style & Design

• Price

Brand Imagery

The way consumers think about a brand

Imagery Associations are formed via

experience or advertising

Maggi

Brand Imagery

Imagery based on demographics(gender-age-race-income)

Conditions or Situations wherein the brand should be bought/used(Snickers -Real Juice- Dominos)

Personality of a Brand (Red Bull Girls-Beer Shampoo-Vodafone Pug to ZooZoo)

Associations emanate from personal experiences

Brand Judgments

Consumer opinions about a brand

Brand Quality

Brand Credibility

Brand Consideration

Brand Superiority

Brand Feelings

Emotional response and reaction to a

brand

Feelings evoked by the marketing

program

E.g- Katrina – Slice and Choc-on Ads

Brand Feelings

Warmth (Vicks Vaporub)

Fun (Disney, Imagica)

Excitement (Mountain Dew)

Security (Insurance Ads)

Social Approval (NIIT, Luxury

Brands,Contraceptives)

Self-Respect (Dettol, Oral-B, Voter

Registration)

Brand Resonance

Level of relationship & identity with the

brand

• Behavioral Loyalty

• Attitudinal Attachment

• Sense of community

• Active Engagement

Creating Customer Equity

High Value Customer First

Product Mgmt to Customer Focused Mgmt

Add-ons & Cross selling

Reduce Customer Acquisition Costs

Track Marketing Programs

Relate branding to customer equity

Monitor retention of customers

Separate Marketing Plans

Relating Customer Equity to

Brand Equity

Customers drive the success of a brand

Brand are the links between the customer and the firm

Value is created due to differential customer response to marketing activities

Price premiums and brand loyalty generate cash flows for the firms

Brand Equity- emphasis on front end marketing - intangible value

Customer Equity-emphasis on back end marketing - revenues