Brand EquityBuilding the Brand from the Ground Up
William Baker ConsultingMarketing StrategyCommunication StrategyBrandingAdvertising
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Brand and Brand Equity
BrandA persuasive force which attracts or repels consumers to a firm’s offerings by augmenting or diminishing their perceived benefits
Brand EquityThe valence and strength of the brand force
Weak Brand Equity
- + Strong brand equity
Most Brands
‘Branding’ Defined
The process of creating a “relative advantage” for your brand in
the mind of the customer.
The Impact of Brand Equity
Brand Equity
Before Purchase After Purchase
Breaks Ties Enhances EvaluationCreates “Just Noticeable
Difference”
Measuring Brand Equity: Tapping Unobservable ElementsExcellent technique when consumers can evaluate the product with and without knowledge of the brand name.
Evaluation of Brand – Evaluation of BrandBrand Equity = (Brand Name Known) (Brand Name Not Known)
Brand Equity Example: Colas
Evaluation Evaluation BrandName Known Name not Known Equity
Coca-Cola 1.7 .1 1.6
Pepsi .1 -.3 .4
RC Cola -1.8 .2 -2.0
Just Noticeable Difference
Brand AObjective Performance
Brand APerceived Performance Brand Equity ‘Premium’
Just Noticeable Difference
Required Objective Performance of new brand to beat Brand A10
9
8
Elements of Brand Equity
Brand Identity: O The extent to which the brand is explicitly LINKED to a meaningful product
category, consumption goal, need and/or want.
Brand Integrity: O The extent to which the brand is perceived to meet the performance expectations of
its customers.
Brand Resonance: O The extent to which the brand emotionally connects to the customer by embedding it
in the routine and enhancing the experience of its users
Brand Identity Creation
Which identity allows the brand to best leverage its benefits and create distance from powerful competitors?
Is Excedrin?O An all-purpose pain relieverO An arthritis treatmentO A headache treatment
Does Red Bull?O Increase concentrationO Decrease sleepinessO Boost energy
Brand Identity is the foundation of the brand….It creates the context for all that follows
Identity
Integrity
Resonance
You Can’t Start Here
Identity Based Obstacles to Brand Equity
O Category Membership: The inability to ‘understand’ the general purpose of a brand because category membership is vague or confused
O Brand Salience: The inability for the brand to ‘come to mind’ prior to other, potentially equally attractive, alternatives
O Brand Position: The inability to ‘understand’ a brand’s unique qualities.
Identity Based Obstacles: Category Membership
Category Membership?I want to buy a mid-sized family sedan. Write
down three automobiles you should consider.
Identity Based Obstacles:Category Membership
Toyota Camry 18.1%
Honda Accord 17.9%
Hyundai Sonata 14.6%
Nissan Altima 13.7%
Ford Fusion 11.7%
Chevy Malibu 9.8%
Mazda 6 1.4%
Identity Based Obstacles: Category Membership
If you do not come to mind as an alternative, you can’t be considered. Simple. But, it goes much deeper
If you are not strongly linked to a specific product category or a specific benefit, your brain concludes that you are inferior alternative to those that are so linked.
OSee Mere ExposureOSee Perceptual Fluency
Identity Based Obstacles: Brand Salience
Brand Salience: Write down the first three fast food hamburger restaurants that come to mind.
Identity Based Obstacles:Brand Salience
Salience matters because humans do not optimize many decisions – salience is key in 2 out of the 3 decision approaches below:
Indifference
Satisficing
Optimizing
The Difficulty of Building a Unique Brand Identity….a unique position
O Recall that most people can tell you a lot of information about a product category, but…..
O they can tell you very little about what’s different about each
brand in the category.
JeansTablet Computers
Identity Based Obstacles:Brand Position
You must link the brand to a unique position to stand out in the mind of the consumer
If you are not so linked, consumers will confuse you with other brands or label you as a ‘me-too’ alternative.
Identity Based Obstacles: Brand Salience
Even if a brand is correctly linked and positioned in a category, our brains automatically link speed of recall and recognition to quality, importance, acceptance
Identity Based Obstacles:Brand Uniqueness
‘Brand’ Uniqueness: Write down what is unique about United Airlines.
Nothing? This is why people buy on airline tickets on the basis of price price and flight times.
The Strength of Brand Identity
The brand is clearly
linked to a category that fits the benefits it
delivers.
The brands unique benefits are understood.
The brand is tightly linked to this category.
Basic Brand Identity
Strong Brand Identity
It’s All About Expectations
ASI Satisfaction Model
Brand Integrity
Can the brand fulfill the promise of its identity?
O Does the brand perform as expected?
O Does the firm treat you as a person or an ATM?
O Do firm-customer interactions transpire as expected?
O Do complaint resolutions interactions transpire as expected?
This is the easy one
Brand Integrity
Category Expectations
Brand Promises
Customer Relationships
Basic Brand Integrity
Superior Brand
Integrity
Integrity-Based Obstacles:Category Expectations
CASE 1: “Exodus: God and Kings” created such high expectations that movie viewers were disappointed. Poor reviews and word of mouth caused U.S. ticket sales to collapse after the first week.
ASI Satisfaction ModelIf expectations exceed performance: Integrity Declines
--
-
Integrity-Based ObstaclesCategory Expectations Torpedo Line ExtensionsCase 2: Budweiser has a strong identity that creates
expectations incompatible with a craft beer….thus, trial is thwarted because the claim is not believed
Brand Integrity and Brand Promises
O Price LeaderO Lowest price for basic benefitsO Acceptable QualityO Lowest cost structure
O Performance LeaderO Superior FunctionalityO Superior Styling/DesignO Superior Innovation
O Relational LeaderO Personalized TreatmentO Customized SolutionsO Service Excellence
Brand ResonanceFrom Satisfaction to Commitment
O Brand Linked to Emotional Benefits
O Embedded in One’s Everyday Life
O Fit with one’s aspirational values and lifestyles
Causes of Brand Resonance
Fit with one’s aspirational values and experiences
Basic Brand Resonance
Strong Brand Resonance
Resonance by being embedded in one’s life and routines.
Resonance by linking brands to higher order benefits
Brand Resonance through Emotional Benefits
http://w3.ipsos.com/marketing/censydiam/our-approach.jspx
Brand Resonance through Embeddedness
Think of all the life experiences that have been associated to:
Coca-Cola
Tide
Oreos
McDonalds
Brand Resonance Through Tribal Membership and Shared Aspirations
Identify with the brand because users aspire to what it symbolizes
Under Armour: The Warrior Harley: Everything I’m not During the Week
The Brand Component Hierarchy
Brand Resonance
Brand Integrity
Brand Identity
Each Subsequent Brand Element Builds on the Previous Element
Failure at an Early Element Hinders Progress up the Hierarchy
An absence of brand resonance does not necessarily signal the core problem is resonance
Brand Equity and Relative Advantage
Marketing managers must strive to maximize each element of the brand:
Brand Identity -- Brand Integrity - Brand Resonance
Make the brand Meet or Link to the routine and a salient option exceed performance aspirations of your customere
Brand Equity and Relative Advantage
Customer Value = (1- Perceived Risk) x (Perceived Benefits – Perceived Costs)
Brand Equity
Brand DNA
The famous consultant, Scott Bedbury, attempts to summarize a brand vision with three or four words that should shape all three components of the brand
O Starbucks: relax, intellectual, social
O Nike: performance, perseverance, winning
O University of Akron: ?????