Brand Management

MKT 235 BRAND MGT – 5

Cathi McMullen

MKT235 Brand Management

Building brand equity

Learning Learning objectives – 5

Learning Learning objectives – 5 cont.

Defining brand equity from Customer Perspective (1)

Brand equity is the extent to which the brand has a positive effect on a customers disposition/ tendency to purchase

Customer-based brand equity occurs when a consumer has a high level of awareness and familiarity with the brand & holds strong favourable & unique brand associations in memory

Defining brand equity from Company Perspective (2)

Brand equity is the commercial value of all the associations and expectations of customers with the brand

While brand equity is an intangible asset, a strong brand is extremely valuable to a company

Elements of Brand Equity

Aaker & Joachimstaler 2000



Brand awareness Describes the likelihood that a brand will

come to mind in different situations & the ease with which is does so given different cues

Is related to the strength of brand in memory, reflecting consumer’s ability to identify various brand elements e.g. brand name, logo, slogan, character, packaging – under different conditions

Brand awareness consists of: brand recognition - consumer’s ability to confirm

prior exposure when given brand as a cue – e.g. in store will recognise brand as one they have been exposed to.

brand recall - ability to retrieve from memory when given product category, the needs fulfilled by category, or a purchase or usage situation as a cue. eg. What to eat for breakfast - cereal - Kellogg’s Corn Flakes

Keller

Types of brand awareness

Brand awareness can be either:

‘top of mind’/unaided (spontaneous) or

prompted/aided (psychological priming)

Types of brand awareness Prompted/aided (psychological priming)

Priming refers to a increased sensitivity to certain stimuli due to prior experience.

Believed to occur outside of conscious awareness, it is different from memory that relies on the direct retrieval of information.

Direct retrieval utilizes explicit memory, while priming relies on implicit memory.

Research has also shown that the affects of priming can impact the decision-making process (Jacoby, 1983)

https://www.youtube.com/watch?v=Z_mVFPCaQJY

Prompted/aided (psychological priming)

Brand awareness

There are 3 advantages of high brand awareness:

1. Brand awareness increases familiarity & is an anchor on which brand associations can be built. Brand awareness influences the formation and strength of associations that make up brand image

Brand awareness

2. Once a customer is familiar with a brand it more likely to be included in the consideration set, the small group of brands that are considered for purchase. NB: Purchase is NOT guaranteed

3. High awareness can affect the choice among the different brands the consideration set of brands

Brand names & brand awareness

Brand names that are: Simple & easy to pronounce or spell (improved

recall) Familiar & meaningful (tap into existing

knowledge structures - increase memorability) Different, distinctive, unusual (improve brand

recognition)

CAN OBVIOUSLY IMPROVE BRAND AWARENESS



Perceived brand quality

Can be good or bad Provides a reason to buy Helps differentiate the brand from its

competitors Helps justify price premium

Note however, there is a price/quality relationship & perception of value for money may be more important than just perceived quality alone.



Brand associations

Brand associations connect customers to the brand. They can be subjective & emotional.

Some examples are:healthy, friendly, trustworthy classy, old-

fashioned, fun, caring, hip

Dimensions of brand associations

1. Strength: What are the strongest associations that you have to the brand? What comes to mind when you think of the brand?

2. Favourability: What is good/bad about the brand? What do you like/dislike about the brand?

3. Uniqueness: What is unique about the brand?What characteristics does the brand share with other brands?



Brand loyalty

Brand loyalty is expressed through repeat purchase

BRAND LOYALTY IS THE STRONGEST INDICATOR OF BRAND EQUITY

But a customer can be loyal to a brand & not purchase it every single time - the brand can be one of an acceptable set



Other brand assets

® Registered Trade Mark

© Copyright

™ Trade Mark



US Based Advertising

https://www.youtube.com/watch?v=6Y6WA5yqPao

Classic Australian Ad

https://www.youtube.com/watch?v=726Ai-fbw-I



Value of brand equity to consumers

Brand equity provides value to a customer by enhancing the customer’s:

Interpretation/processing of information Confidence in the purchase decision Use satisfaction

Value of brand equity to companies

Improving the efficiency & effectiveness of their marketing campaigns

Brand loyalty (result - repeat purchase) Enabling them to charge higher

price/margin A platform for new line extensions Leverage in distribution channels Providing a source competitive advantage

Brand elements to build brand equity

Brand names Logos URLs or domain names

supporting online presence Packaging Slogans Jingles Characters

Factors in selecting brand names

Memorability - easily recognised & recalled

Meaningfulness Likeability Transferability Adaptability Protectability

Logos, jingles slogans & characters The principles just listed for brand names

also apply to logos, slogans, jingles & characters

All elements of the brand must be consistent to enable a synergistic effect.

Consistency with the brand’s manta, personality, positioning & values is also needed.

Logos

What are you favourite logos?

What makes a good logo?

Jingles and slogans

Successful jingles reinforce the brand name, positioning and personalityAre memorable & often have a life far beyond the campaign that introduced them

Slogans are short phrases that communicate descriptive or persuasive info about the brand. https://www.youtube.com

/watch?v=iyI7vauiY0c

https://www.youtube.com/watch?v=iyI7vauiY0c

Characters

Homebush 2000Chanel show at Paris Haute Couture Fashion Week

Developing a new brand

A company would look to develop a new brand name when:

• The company is new, and does not have any established brands

• The new product does not fit the profile/personality of any existing brand names (In which case the use of the brand name may be detrimental to the brand name)

• The product will be marketed to a different target market, and the current brand name is identified too closely to a particular target market and their needs.

Developing a new brand

Companies look to develop a new brand name when:

• The company is new, and does not have any established brands

• The new product does not fit the profile/personality of any existing brand names (In which case the use of the brand name may be detrimental to the brand name)

• The product will be marketed to a different target market, and the current brand name is identified too closely to a particular target market and their needs.

Process for selecting a new brand Define your objectives Generate a list of acceptable/potential names Screen initial name candidates- eliminating

names with: double meanings, pronunciation problems, local legal issues and poor matches with positioning.

Extend legal search to other companies for a list of 5–10 names

Conduct consumer research with the final candidates

Select final name

Using an existing brand name Many companies choose to use and have successfully

extended the use of brand names to a wide range of products

Exampleso Nivea Sun, Nivea for Men, Nivea Bodyo Colgate Simply White, My First Colgateo Kellogg’s Corn Flakes, Kellogg’s Coco Pops, Kellog’s

Nutrigrain

MKT235 Brand Management

Building brand equity

Business

Brand Management