Customer-Based Brand Equity and Brand Positioning

Customer-based brand equity
1. Differential effect
2. Brand knowledge
3. Consumer response to marketing
Brand equity as a "Bridge"
1. Reflection of a past investments
2. Direction for future marketing
Brand knowledge
1. Key to creating brand equity
2. A variety of associations linked to the brand
3. Sources of brand equity
  1. Brand awareness
    1. Learning advantages
    2. Consideration advantages
    3. Choice advantages
    4. Establishing brand awareness
      1. Increasing the familiarity of the brand through repeated exposure
        Brand recognition
      2. Forging strong associations with the appropriate product
        Brand recall
  2. Brand image
    1. Need to be favorable, strong and unique
    2. Marketers should recognize the influence of these other sources
4 Steps of brand building
1. 1 Ensure identification of the brand to be in customers' mind
2. 2 Establish the totality of brand minds of meaning consumers
3. 3 Elicit the responses in the proper to the brand identification and brand meaning
4. 4 Convert brand response to create an intense, active loyalty relationship
4 Questions customers ask of brands
1. Who are you? / Brand identity
  1. Salience Dimensions
    1. -Ease of recognition and recall -Strength and clarity of category membership
    2. -Purchase consideration -Consumption consideration
2. What are you / Brand meaning
  1. Performance Dimensions
    1. Primary characteristics and supplementary features
    2. Product reliability, durability, and serviceability
    3. Service effectiveness, efficiency, and empathy
    4. Style and design
    5. Price
  2. Imagery Dimensions
    1. -Demographic and psychographic characteristics / Actual or aspirational / Group perceptions / popularity
    2. -Type of channel, specific stores, ease of purchase / Time (day, week, month, year, etc.), location, and context of usage
    3. -Sincerity, excitement, competence, sophistication, and ruggedness
    4. -Nostalgia -Memories
3. What do I think or feel about you? / Brand responses
  1. Judgment Dimensions
    1. -Value -Satisfaction
    2. -Expertise -Trustworthiness -Likeability
    3. -Relevance
    4. -Differentiation
  2. Feeling Dimensions
    1. •Warmth •Fun •Excitement •Security •Social Approval •Self-respect
4. What about you and me? / Brand relationship
  1. Resonance Dimensions
    1. Behavioral loyalty (-Frequency and amount of repeat purchases)
    2. Attitudinal attachment (-Love brand (favorite possessions; “a little pleasure”) -Proud of brand)
    3. Sense of community (-Kinship -Affiliation)
    4. Active engagement (-Seek information -Join club -Visit website, chat rooms)
Brand Building Implications
1. Customers own brands
2. Don’t take shortcuts with brands
3. Brands should have a duality
4. Brands should have richness
5. Brand resonance provides important focus
CRM
1. Uses a company’s data systems and applications to track consumer activity and manage customer interactions with the company
Customer Equity
1. Invest in highest-value customers first
2. Transform product management into customer management
3. Consider how add-on sales and cross-selling can increase customer equity
4. Look for ways to reduce acquisition costs
5. Track customer equity gains and losses against marketing programs
6. Relate branding to customer equity
7. Monitor the intrinsic retainability of your customer
8. Consider writing separate marketing plans

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Customer-Based Brand Equity and Brand Positioning

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	Created by Pablo Camacho over 3 years ago