49
9.1 CHAPTER 9: CHAPTER 9: MEASURING SOURCES OF BRAND MEASURING SOURCES OF BRAND EQUITY: CAPURING CUSTOMER EQUITY: CAPURING CUSTOMER MINDSET MINDSET

Chapter 9 PBM

Embed Size (px)

DESCRIPTION

PBM

Citation preview

Page 1: Chapter 9 PBM

9.1

CHAPTER 9:CHAPTER 9: MEASURING SOURCES OF MEASURING SOURCES OF BRAND EQUITY: CAPURING BRAND EQUITY: CAPURING

CUSTOMER MINDSETCUSTOMER MINDSET

Page 2: Chapter 9 PBM

Qualitative Research Techniques

These techniques are relatively unstructured measurement approaches whereby a range of possible consumer responses is permitted.

There are also many different ways to uncover the types of associations linked to the brand and their corresponding strength, Favorability and uniqueness.

These techniques are often employed to identify possible brand associations and sources of brand equity.

These measures are best used to provide in-depth insight into what specific brands, products, and services mean to consumers.

9.9.22

Page 3: Chapter 9 PBM

Qualitative Research Techniques

Qualitative methods allow marketers to probe consumers either through direct questions or through tasks that indirectly reveal perceptions and attitudes.

Such methods, which permit a relatively unlimited range of verbal consumer responses, include free association tasks, projective techniques, and descriptions of a brand’s personality and values, among others.

Data gathered through qualitative research generally must be coded and aggregated before it is useful.

9.3

Page 4: Chapter 9 PBM

9.4

Qualitative Research Techniques

Free Association tasks whereby subjects are asked what comes to mind when they think of the brand without any more specific probe or cue than perhaps the associated product category.

The primary purpose of free association tasks is to identify the range of possible brand associations in consumers’ minds but they may also provide rough indication of the relative strength, Favorability and uniqueness of brand associations. What do you like best about the brand? What are its

positive aspects? What do you dislike? What are its disadvantages? What do you find unique about the brand? How is it

different from other brands? In what ways is it the same?

Page 5: Chapter 9 PBM

9.5

Free Associations

LEVI’S501

High quality, long lasting, and durable

Blue denim, shrink-to-fit cotton fabric, button-fly,

two-horse patch, and small red pocket tag

Feelings of self-confidenceand self-assurance

Comfortable fittingand relaxing to wear

Honest, classic,Contemporary, approachable,

independent, and universal

Appropriate for outdoorwork and casual social

situations

Western, American, blue collar, hard-working,

traditional, strong, rugged, and masculine

BENEFITS

ATTRIBUTES

Symbolic

Usage ImageryUser Imagery

Brand Personality

Functional

Product-Related

Experiential

Page 6: Chapter 9 PBM

9.6

Projective techniques Diagnostic tools to uncover the true opinions and Diagnostic tools to uncover the true opinions and

feelings of consumers when they are unwilling or feelings of consumers when they are unwilling or otherwise unable to express themselves on these otherwise unable to express themselves on these matters matters

Consumers might feel that it would be Consumers might feel that it would be socially unacceptable to express their true socially unacceptable to express their true feelingsfeelings

Examples:Examples: Completion and interpretation tasksCompletion and interpretation tasks Comparison tasksComparison tasks

Page 7: Chapter 9 PBM

The Rorschach inkblot testThe Rorschach inkblot test

I see a face in the card I see a face in the card I see a scary face in the card I see a scary face in the card Things look like they're whirling around in the card Things look like they're whirling around in the card It looks like we're looking down on people or It looks like we're looking down on people or

something in the card something in the card I see a mask in the card I see a flower in the cardI see a mask in the card I see a flower in the card

9.7

Page 8: Chapter 9 PBM

Completion and Interpretation TasksCompletion and Interpretation Tasks

Empty bubbles as found in cartoons, are Empty bubbles as found in cartoons, are placed in the scenes to represent the placed in the scenes to represent the thoughts, words, or actions of one or more thoughts, words, or actions of one or more of the participants in the scene.of the participants in the scene.

Consumers are then asked to figuratively Consumers are then asked to figuratively fill the bubble by indicating what they fill the bubble by indicating what they believe is happening or being said in the believe is happening or being said in the scene.scene.

The stories and conversations told through The stories and conversations told through bubble exercises and picture bubble exercises and picture interpretations can be especially useful to interpretations can be especially useful to assess user and usage imagery for a brand.assess user and usage imagery for a brand.

9.8

Page 9: Chapter 9 PBM

Comparison TasksComparison Tasks

Consumers are asked to convey their Consumers are asked to convey their impressions by comparing brands to impressions by comparing brands to people, countries, animals, activities, people, countries, animals, activities, fabrics, occupations, cars, fabrics, occupations, cars, magazines, vegetables, nationalities, magazines, vegetables, nationalities, or even other brands.or even other brands.

9.9

Page 10: Chapter 9 PBM

Unfinished Scenario CompletionUnfinished Scenario Completion

9.10

Since Mr. Albert Lee had received a large commission by check just before leaving home for a holiday trip, he wanted to deposit it in an automatic teller machine, because ___________, but his friend Mr. Wong told him that he should _____________, because _____________.

Sentence CompletionSentence Completion Automatic teller machine users are Automatic teller machine users are

______________________________________________________________________________________________________________________

Automatic teller machines may be convenient, but Automatic teller machines may be convenient, but they _____________________________________ they _____________________________________ 

My major concern about automatic teller machines is My major concern about automatic teller machines is __________________________________________________________________________

Page 11: Chapter 9 PBM

Cartoon Completion TestCartoon Completion Test

9.11

DepositthischequenearestATM inthe

In the cartoon technique, the respondent is shown a comic-strip like cartoon with two characters in a conversation. While the speech of one character is shown in his/her balloon, the other balloon is empty.The respondent is asked to assume the role of the other person and fill the empty balloon with a speech.

Page 12: Chapter 9 PBM

9.12

New approach: ZMETNew approach: ZMET

Zaltman Metaphor Elicitation Zaltman Metaphor Elicitation Technique (ZMET)Technique (ZMET)

ZMET is “a technique for eliciting ZMET is “a technique for eliciting interconnected constructs that interconnected constructs that influence thought and behavior.” influence thought and behavior.”

Page 13: Chapter 9 PBM

9.13

ZMETZMET

The guided conversation consists of a The guided conversation consists of a series of steps that includes some or all of series of steps that includes some or all of the following:the following: Story tellingStory telling Missed imagesMissed images Sorting taskSorting task Construct elicitationConstruct elicitation The most representative pictureThe most representative picture Opposite imagesOpposite images Sensory imagesSensory images Mental mapMental map Summary imageSummary image VignetteVignette

Page 14: Chapter 9 PBM

9.14

Brand Personality and Brand Personality and ValuesValues

Brand personalityBrand personality refers to the human refers to the human characteristics or traits that can be characteristics or traits that can be attributed to a brand.attributed to a brand.

The Big FiveThe Big Five Sincerity (down-to-earth, wholesome, and Sincerity (down-to-earth, wholesome, and

cheerful)cheerful) Excitement (daring, spirited, imaginative, and Excitement (daring, spirited, imaginative, and

up-to-date)up-to-date) Competence (reliable, intelligent, and successful)Competence (reliable, intelligent, and successful) Sophistication (upper class and charming)Sophistication (upper class and charming) Ruggedness (outdoorsy and tough)Ruggedness (outdoorsy and tough)

Jennifer Aaker, 1997Jennifer Aaker, 1997

Page 15: Chapter 9 PBM

9.15

Identifying Key Brand Identifying Key Brand Personality AssociationsPersonality Associations

Ranbir KapoorRanbir KapoorImran KhanImran Khan

ChocolateChocolate Mobile PhoneMobile Phone Apparels Apparels Fast FoodFast Food

Page 16: Chapter 9 PBM

9.16

Experiential MethodsExperiential Methods By tapping more directly into their actual home, By tapping more directly into their actual home,

work, or shopping behaviors, researchers might work, or shopping behaviors, researchers might be able to elicit more meaningful responses from be able to elicit more meaningful responses from consumers. consumers.

Advocates of the experiential approach have sent Advocates of the experiential approach have sent researchers to consumers’ homes in the morning researchers to consumers’ homes in the morning to see how they approach their days, given to see how they approach their days, given business travelers Polaroid cameras and diaries business travelers Polaroid cameras and diaries to capture their feelings when in hotel rooms, and to capture their feelings when in hotel rooms, and conducted “beeper studies” in which participants conducted “beeper studies” in which participants are instructed to write down what they’re doing are instructed to write down what they’re doing when they are paged. when they are paged.

Page 17: Chapter 9 PBM

Many a times, consumers may not be able to fully express their true selves as part of a formalized research study.

Thus Experiential Methods are of great help to the researchers wherein

By tapping more directly into their actual home, work, or shipping behaviors, researchers might be able to elicit more meaningful responses from consumers.

Researchers are sent to the consumers homes in the morning to see how they approach their days, have given business travelers Polaroid cameras and diaries to capture their feelings when in hotel rooms, and conducted deeper studies.

9.17

Page 18: Chapter 9 PBM

9.18

Quantitative Research Quantitative Research TechniquesTechniques

AwarenessAwareness ImageImage Brand responsesBrand responses Brand relationshipsBrand relationships

Page 19: Chapter 9 PBM

9.19

AwarenessAwareness Brand Awareness is related to the strength of the Brand Awareness is related to the strength of the

brand in memory as reflected by consumers’ ability brand in memory as reflected by consumers’ ability to identify various brand elements I.e., the brand to identify various brand elements I.e., the brand name, logo, symbol, character, packaging and name, logo, symbol, character, packaging and sloganslogan

Choosing the appropriate measure depends on the Choosing the appropriate measure depends on the relative importance of brand awareness for relative importance of brand awareness for consumer behaviour in the category and the consumer behaviour in the category and the resulting role it plays in the success of the resulting role it plays in the success of the marketing programme for the brandmarketing programme for the brand

As per one research reveals that many consume As per one research reveals that many consume decisions are made at the point of purchase, where decisions are made at the point of purchase, where the brand name, logo, packaging and so on will be the brand name, logo, packaging and so on will be physically present and visible then brand physically present and visible then brand recognition will be importantrecognition will be important

Page 20: Chapter 9 PBM

Brand AwarenessBrand Awareness Brand Recognition Brand Recognition relates to consumer's ability relates to consumer's ability

to identify the brand under a variety of to identify the brand under a variety of circumstances and can involve identification of any circumstances and can involve identification of any of the brand elements.of the brand elements.

The most basic type of recognition procedure gives The most basic type of recognition procedure gives consumers a set of individual items visually or consumers a set of individual items visually or orally and asks them if they thought that they have orally and asks them if they thought that they have previously seen or heard of these items.previously seen or heard of these items.

Apart from the above, the other example would as Apart from the above, the other example would as follows:follows: Brand name recognition could be tested with Brand name recognition could be tested with

missing lettersmissing letters Tachistoscope (T-scope) and eye trackingTachistoscope (T-scope) and eye tracking

9.20

Page 21: Chapter 9 PBM

Brand AwarenessBrand Awareness In Brand RecallIn Brand Recall, Consumers must retrieve the actual brand , Consumers must retrieve the actual brand

element from memory when given some related probe or cue.element from memory when given some related probe or cue. Different measure of brand recall are:Different measure of brand recall are:

- Top of the Mind Slot- Top of the Mind Slot- Unaided Recall- Unaided Recall- Aided Recall- Aided Recall- Unrecalled Brands- Unrecalled Brands

Unaided Recalls on the basis of “all brands” provided as a cue is Unaided Recalls on the basis of “all brands” provided as a cue is likely to identify only the very strongest brandslikely to identify only the very strongest brands

Aided Recalls uses various types of cues to help consumer recall. Aided Recalls uses various types of cues to help consumer recall. One possible sequence of aided recall might use progressively One possible sequence of aided recall might use progressively

narrower cues – such as product class, product category and narrower cues – such as product class, product category and product type labels – to provide consumers’ brand knowledge product type labels – to provide consumers’ brand knowledge structures.structures.

9.21

Page 22: Chapter 9 PBM

9.22

AwarenessAwareness Corrections for guessing Corrections for guessing

Any research measure must consider the issue of Any research measure must consider the issue of consumers making up responses or guessing. consumers making up responses or guessing.

Strategic implications Strategic implications The advantage of aided recall measures is that they The advantage of aided recall measures is that they

yield insight into how brand knowledge is yield insight into how brand knowledge is organized in memory and what kind of cues or organized in memory and what kind of cues or reminders may be necessary for consumers to be reminders may be necessary for consumers to be able to retrieve the brand from memory. able to retrieve the brand from memory.

The important point to note is that the category The important point to note is that the category structure that exists in consumers’ minds—as structure that exists in consumers’ minds—as reflected by brand recall performance—can have reflected by brand recall performance—can have profound implications for consumer choice and profound implications for consumer choice and marketing strategy. marketing strategy.

Page 23: Chapter 9 PBM

9.23

ImageImage

Lower level considerations are related to Lower level considerations are related to consumer perceptions of specific consumer perceptions of specific performance and imagery attributes and performance and imagery attributes and benefits. benefits.

Lower-level considerations are about the Lower-level considerations are about the brand in their minds to form different types of brand in their minds to form different types of brand responses and evaluations.brand responses and evaluations.

Ask open-ended questions to tap into the Ask open-ended questions to tap into the strength, favorability, and uniqueness of strength, favorability, and uniqueness of brand associations.brand associations.

These associations should be rated on scales These associations should be rated on scales for quantitative analysis.for quantitative analysis.

Page 24: Chapter 9 PBM

Brand Concept Maps(BCM) elicits Brand Concept Maps(BCM) elicits brand association networks (Brand brand association networks (Brand Maps) from consumers and Maps) from consumers and aggregates individual maps into a aggregates individual maps into a consensus map. consensus map.

Multidimensional Scaling (MDS) is Multidimensional Scaling (MDS) is a procedure for determining the a procedure for determining the perceived relative images of a set of perceived relative images of a set of objects, such as product or brands. objects, such as product or brands.

9.24

Page 25: Chapter 9 PBM

9.25

Brand ResponsesBrand Responses

Research in psychology suggests that Research in psychology suggests that purchase intentions are most likely to be purchase intentions are most likely to be predictive of actual purchase when there is predictive of actual purchase when there is correspondence between the two in the correspondence between the two in the following categories:following categories:

Purchase IntentionsPurchase Intentions Action (buying for own use or to give as a gift)Action (buying for own use or to give as a gift) Target (specific type of product and brand)Target (specific type of product and brand) Context (in what type of store based on what Context (in what type of store based on what

prices and other conditions)prices and other conditions) Time (within a week, month, or year)Time (within a week, month, or year)

Page 26: Chapter 9 PBM

9.26

Brand RelationshipsBrand Relationships

Brand Relationships in terms of brand resonance Brand Relationships in terms of brand resonance and offered possible measures for each of the four and offered possible measures for each of the four key dimensions: behavioral loyalty, attitudinal key dimensions: behavioral loyalty, attitudinal attachment, sense of community and active attachment, sense of community and active engagementengagement

Behavioral loyaltyBehavioral loyalty: brand usage & attitude: brand usage & attitude Brand substitutabilityBrand substitutability: brand bought last time & : brand bought last time &

if that is not available what would you have doneif that is not available what would you have done Other brand resonance dimensionsOther brand resonance dimensions

For example, in terms of engagement, For example, in terms of engagement, measures could explore word-of-mouth measures could explore word-of-mouth behavior, online behavior, and so forth in depthbehavior, online behavior, and so forth in depth

Page 27: Chapter 9 PBM

Fournier’s Brand Fournier’s Brand Relationships Research Relationships Research

(BRQ)(BRQ) BRQ is a multifaceted hierarchical BRQ is a multifaceted hierarchical

structure that includes six main structure that includes six main facets:facets:1.1. InterdependenceInterdependence

2.2. Self concept connectionSelf concept connection

3.3. CommitmentCommitment

4.4. Love/passionLove/passion

5.5. IntimacyIntimacy

6.6. Brand partner loyaltyBrand partner loyalty

9.27

Page 28: Chapter 9 PBM

9.28

Comprehensive Models of Comprehensive Models of Customer-Based Brand Customer-Based Brand

EquityEquity Brand dynamics Brand dynamics Equity enginesEquity engines Young & Rubicam’s Brand Asset Young & Rubicam’s Brand Asset

Valuator (BAV)Valuator (BAV)

Page 29: Chapter 9 PBM

9.29

Brand DynamicsBrand Dynamics

The Brand Dynamics model adopts a The Brand Dynamics model adopts a hierarchical approach to determine hierarchical approach to determine the strength of relationship a the strength of relationship a consumer has with a brand. consumer has with a brand.

The five levels of the model are:The five levels of the model are: PresencePresence Relevance Relevance PerformancePerformance AdvantageAdvantage Bonding Bonding

Page 30: Chapter 9 PBM

9.30

Page 31: Chapter 9 PBM

9.31

Equity EnginesEquity Engines

This model delineates three key dimensions This model delineates three key dimensions of brand affinityof brand affinity——the emotional and the emotional and intangible benefits of a brandintangible benefits of a brand——as follows:as follows: Authority:Authority: The reputation of a brand, whether as The reputation of a brand, whether as

a long-standing leader or as a pioneer in a long-standing leader or as a pioneer in innovation innovation

Identification:Identification: The closeness customers feel for a The closeness customers feel for a brand and how well they feel the brand matches brand and how well they feel the brand matches their personal needs their personal needs

Approval:Approval: The way a brand fits into the wider The way a brand fits into the wider social matrix and the intangible status it holds social matrix and the intangible status it holds for experts and friendsfor experts and friends

Page 32: Chapter 9 PBM

9.32

Page 33: Chapter 9 PBM

9.33

Young & Rubicam’s Brand Young & Rubicam’s Brand Asset Valuator (BAV)Asset Valuator (BAV)

BAV is a database of consumer perception of brands BAV is a database of consumer perception of brands created and managed by Brand Asset Consulting, a created and managed by Brand Asset Consulting, a division of Young & Rubicam Brands to provide division of Young & Rubicam Brands to provide information to enable firms to improve the marketing information to enable firms to improve the marketing decision-making process and to manage brands better. decision-making process and to manage brands better.

BAV provides comparative measures of the equity BAV provides comparative measures of the equity value of thousands of brands across hundreds of value of thousands of brands across hundreds of different categories, as well as a set of strategic brand different categories, as well as a set of strategic brand management tools for planning brand extensions, joint management tools for planning brand extensions, joint branding ventures, and other strategies designed to branding ventures, and other strategies designed to maintain and grow brand value.maintain and grow brand value.

There are five key components of brand health in BAVThere are five key components of brand health in BAV—the five pillars. —the five pillars.

Page 34: Chapter 9 PBM

9.34

Over 750,000 consumers•50,000 brands•275 studies•51 countries•18 years' worth of data•US panel of 17,000+ respondents•Quarterly data

72 different brand metrics, including•Brand health•Brand imagery / personality•Usage•Consideration •Loyalty

BrandAsset® Valuator BrandAsset® Valuator (BAV)(BAV)

Page 35: Chapter 9 PBM

Young & Rubicam’s Young & Rubicam’s Brand Asset Valuator Brand Asset Valuator

(BAV)(BAV) Each pillar is derived from various Each pillar is derived from various measures that relate to different aspects measures that relate to different aspects of consumers’ brand perceptions and that of consumers’ brand perceptions and that together trace the progression of a together trace the progression of a brand’s development.brand’s development. Differentiation Differentiation Relevance Relevance Esteem Esteem KnowledgeKnowledge

9.35

Page 36: Chapter 9 PBM

1.1. Differentiation is the ability for a brand to be Differentiation is the ability for a brand to be distinguished from its competitors. A brand should distinguished from its competitors. A brand should be as unique a possible. Brand health is built, and be as unique a possible. Brand health is built, and maintained by offering a set of differentiating maintained by offering a set of differentiating promises to consumers. And by delivering those promises to consumers. And by delivering those promises to leverage value.promises to leverage value.

2.2. Relevance is the actual and perceived importance of Relevance is the actual and perceived importance of the brand to a large consumer market segment. This the brand to a large consumer market segment. This gauges the personal appropriateness of a brand to gauges the personal appropriateness of a brand to consumers and is strongly tied to household consumers and is strongly tied to household penetration (the percentage of households that penetration (the percentage of households that purchase the brand).purchase the brand).

9.36

Page 37: Chapter 9 PBM

3.3. Esteem is the perceived quality and consumer Esteem is the perceived quality and consumer perceptions about the growing or declining popularity of perceptions about the growing or declining popularity of a brand. Does the brand keep its promises? The a brand. Does the brand keep its promises? The consumer’s response to a marketer’s brand building consumer’s response to a marketer’s brand building activity is driven by his perception of two factors: quality activity is driven by his perception of two factors: quality and popularity. Both vary by country and culture.and popularity. Both vary by country and culture.

4.4. Knowledge is the extent of the consumer’s awareness of Knowledge is the extent of the consumer’s awareness of the brand and understanding its identity. The awareness the brand and understanding its identity. The awareness levels about the brand, and what it means, shows the levels about the brand, and what it means, shows the intimacy that consumers share with the brand. True intimacy that consumers share with the brand. True knowledge of the brand comes through building of the knowledge of the brand comes through building of the brand.brand.

9.37

Page 38: Chapter 9 PBM

9.38

Room to grow... Brand has power to build relevance.

D > R

0

10

20

30

40

50

60

70

80

90

100

DifferentiationRelevance

Healthy Brands Have Healthy Brands Have Greater Differentiation Greater Differentiation

than Relevancethan Relevance

Examples: Harley DavidsonYahoo!AOLWilliams-SonomaIkeaBloomberg Business News

When Differentiation is greater than Relevance, the brand has captured attention, interest and now can build Relevance and penetration. This reflects a new niche or luxury brand. This type of brand has more creativity than functionality.

Page 39: Chapter 9 PBM

9.39

R > D

0

10

20

30

40

50

60

70

80

90

100

DifferentiationRelevance

Uniqueness has faded; price becomes dominant reason to buy.

Brands with greater Relevance than Brands with greater Relevance than Differentiation Are in Danger of Differentiation Are in Danger of

Becoming CommoditiesBecoming Commodities

Examples:

ExxonMott’sMcDonald’sCrestMinute MaidFruit of the LoomPeter Pan (peanut butter)

If a brand is more Relevant that it is Differentiated, it may still be vital, but its uniqueness is fading and price or convenience is becoming a dominant reason to buy. It may also be more rational than creative.

Page 40: Chapter 9 PBM

9.40

E > K

0

10

20

30

40

50

60

70

80

90

100

Esteem Knowledge

Brand is better liked than known.

More Esteem than Knowledge More Esteem than Knowledge Means, “I’d like to get to know you Means, “I’d like to get to know you

better”better”

Examples:

Coach leatherwearTag HeuerCalphalonMovadoBlaupunktPella WindowsPalm PilotTechnics

When a brand's Esteem is greater than Knowledge, it is liked but not well-known. Consumers are curious to find out more. There is growth potential in this brand.

Page 41: Chapter 9 PBM

9.41

K > E

0

10

20

30

40

50

60

70

80

90

100

Esteem Knowledge

Brand is better known than liked.

Too Much Knowledge Can Be Dangerous:Too Much Knowledge Can Be Dangerous:

“I know you and you’re nothing special”“I know you and you’re nothing special”

Examples: PlymouthTV GuideSpamWoolworthsChryslerMaxwell HouseNational EnquirerSanka

Too much knowledge can be a bad thing. If Knowledge is greater than Esteem, the brand has become too familiar, and consumers are not interested in knowing it better. They are probably looking for better options

Page 42: Chapter 9 PBM

BrandAsset® Valuator

Leading

Brand Strength

Differentiation Relevance

Lagging

Brand Stature

Esteem Knowledge

A Two-Dimensional Framework for A Two-Dimensional Framework for Diagnosing Brands: The Power GridDiagnosing Brands: The Power Grid

Leading Indicators of brand health: Brand Strength( differentiation, and relevance combine to become brand energy. These two pillars point to the brand’s future value, rather than just reflecting its past.Lagging Indicators of brand health: Brand Stature (Esteem and Knowledge together). It is like a report card on brand’s past performance.

Page 43: Chapter 9 PBM

Brand Health Is Captured Brand Health Is Captured on the PowerGridon the PowerGrid

Page 44: Chapter 9 PBM

BAV uses a two-dimensional plot to measure Brand Strength and Brand Stature.

The strength is measured on the vertical “y-axis” [Differentiation, Energy and Relevance] and stature is measured on the horizontal “x-axis” [Esteem, Knowledge].

Brand Strength illustrates future growth value and momentum potential of brands. Brand Stature reflects current perceived performance.

Brands are plotted on the PowerGrid to illustrate a brand's curent stage of development and relative brand health across categories and constituencies

9.44

Page 45: Chapter 9 PBM

The Power Grid provides a model for mapping and diagnosing The Power Grid provides a model for mapping and diagnosing the life of a brand. New brands begin in the the life of a brand. New brands begin in the lower left lower left quadrant – with low strength, low stature.quadrant – with low strength, low stature. As the brand As the brand develops, it rises to the develops, it rises to the upper left quadrant – where upper left quadrant – where strength is significantly higher than staturestrength is significantly higher than stature. It is here . It is here where niche brands and brands with unrealized potential where niche brands and brands with unrealized potential reside. reside. This is high margin territory.This is high margin territory. In order to maximize In order to maximize shareholder value, shareholder value, brands should be strategically brands should be strategically leveraged to move to the upper right quadrant, where leveraged to move to the upper right quadrant, where powerful leadership brands residepowerful leadership brands reside. When brands get into . When brands get into trouble, the first thing to erode is Differentiation, causing trouble, the first thing to erode is Differentiation, causing leadership brands to decline. This loss in Differentiation leadership brands to decline. This loss in Differentiation reduces the ability to extend the brand across new consumer reduces the ability to extend the brand across new consumer and market segments. As a result, there is a huge loss in and market segments. As a result, there is a huge loss in intangible valueintangible value

9.45

Page 46: Chapter 9 PBM

9.46

Commonalty Between the Commonalty Between the Basic BAV Model and the Basic BAV Model and the

CBBE FrameworkCBBE Framework BAV’s knowledge relates to CBBE’s brand BAV’s knowledge relates to CBBE’s brand

awareness and familiarity.awareness and familiarity. BAV’s esteem relates to CBBE’s BAV’s esteem relates to CBBE’s

favorability of brand associations.favorability of brand associations. BAV’s relevance relates to CBBE’s BAV’s relevance relates to CBBE’s

strength of brand associations (as well as strength of brand associations (as well as perhaps favorability).perhaps favorability).

BAV’s energy relates to CBBE’s BAV’s energy relates to CBBE’s favorability of associations.favorability of associations.

BAV’s differentiation relates to CBBE’s BAV’s differentiation relates to CBBE’s uniqueness of brand associations.uniqueness of brand associations.

Page 47: Chapter 9 PBM

Advantages of Young & Advantages of Young & Rubicam’s Brand asset Rubicam’s Brand asset

ValuatorValuator Brand Asset Valuator is an important tool to assess a brand’s current achievements and stature. It is even more powerful when the future potential of a brand can also be measured. Y&R’s Brand Asset Valuator offers this opportunity.

Combining exhaustive amounts of consumer data with a proven model of brand-building, Brand Asset Valuator anticipates future operating earnings and operating margins. This can enhance the marketing-decision process in a variety of substantive ways.

Brand Asset Valuator can help managers understand marketplace opportunities and the types of risk that go with them. It can provide a deeper understanding of consumer behavior: for example, shedding light on reasons why some segments are willing to pay a higher price for a highly differentiated brand.

9.47

Page 48: Chapter 9 PBM

Brand Asset Valuator stands apart from other brand study aids in a number of ways. It is predictive, focusing on leading indicators instead of lagging. It is exhaustive in every way, size and scope. Most importantly, it evaluates a brand in the entire world of brands, not in its “category.”

Brand Asset Valuator also helps to determine a brand’s elasticity and helps to explore beneficiary brand alliances.

Lastly, Brand Asset Valuator is not only just useful for creating brands. It is useful for managing brands in the long term—through ups and downs.

9.48

Page 49: Chapter 9 PBM

Disadvantages of Young & Disadvantages of Young & Rubicam’s Brand asset Rubicam’s Brand asset

ValuatorValuator The major disadvantage associated with Young & The major disadvantage associated with Young &

Rubicam’s Brand asset Valuator is that Rubicam’s Brand asset Valuator is that it is it is proprietary in nature and can be employed proprietary in nature and can be employed only by Young and Rubicamonly by Young and Rubicam..

Another disadvantage associated with BAV is Another disadvantage associated with BAV is that that the measures underlying the four the measures underlying the four factors may not be relevant across a wide factors may not be relevant across a wide range of product categories and thus these range of product categories and thus these factors tend to be abstract in naturefactors tend to be abstract in nature and and might not be related directly to product might not be related directly to product attributes or benefits and more specific attributes or benefits and more specific marketing concerns.marketing concerns.

9.49