Lecture - 03 - Brand Management

6/21/2021
Session content
Brand Management
• Customer-based brand equity
• Brand equity as a bridge
Lecture 03 • Making a strong brand
• Brand building
• Customer-based brand equity pyramid
• Customer equity
• Relationship of customer equity to brand equity
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Customer-Based Brand Equity Brand Equity as a “Bridge”
• Reflection of past investments in the

• The differential effect that brand marketing of a brand
knowledge has on consumer
• Direction for future marketing actions or
response to the marketing of that
brand. programs
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Making a Brand Strong:

Sources of Brand Equity
Brand Knowledge
• Brand awareness
• Brand knowledge is the key to creating – Brand recognition
brand equity. – Brand recall
• Brand knowledge has two components: • Brand image
brand awareness and brand image. – Strong, favorable, and unique brand associations
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Brand awareness
Brand Awareness Advantages
• Brand awareness • Learning advantages
– Brand recognition: Increasing the familiarity of – Register the brand in the minds of consumers
the brand through repeated exposure • Consideration advantages
– Brand recall: Forging strong associations with the – Likelihood that the brand will be a member of the
appropriate product category consideration set
• Choice advantages
– Affect choices among brands in the consideration
set
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Creating a Positive Brand Image The Four Steps of Brand Building

1. Ensure identification of the brand with customers
• Brand Associations
and an association of the brand in customers’ minds
– Need to be favorable, strong, and unique
2. Establish the totality of brand meaning in the minds
– Marketers should recognize the influence of of consumers
different sources of information by both
3. Elicit the proper customer responses to the brand
managing them as well as possible and by
identification and brand meaning
adequately accounting for them in designing
communication strategies. 4. Convert brand response to create an intense, active
loyalty relationship between customers and the
brand
9 10
Customer-Based Brand Equity Pyramid

Four Questions Customers ask of Brands
1. Who are you? (brand identity)

2. What are you? (brand meaning)
3. What about you? What do I think or feel
about you? (brand responses)
4. What about you and me? What kind of
association and how much of a connection
would I like to have with you? (brand
relationships)
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Sub-Dimensions of CBBE Pyramid Salience Dimensions

LOYALTY
ATTACHMENT
COMMUNITY
• Depth of brand awareness
– Ease of recognition and recall
ENGAGEMENT
QUALITY
WARMTH
FUN
– Strength and clarity of category membership
CREDIBILITY EXCITEMENT
SECURITY
• Breadth of brand awareness

CONSIDERATION
SUPERIORITY SOCIAL APPROVAL
SELF-RESPECT
PRIMARY CHARACTERISTICS & USER PROFILES

– Purchase consideration
SECONDARY FEATURES
– Consumption consideration
PURCHASE & USAGE
PRODUCT RELIABILITY, SITUATIONS
DURABILITY & SERVICEABILITY PERSONALITY &
SERVICE EFFECTIVENESS, VALUES
EFFICIENCY & EMPATHY HISTORY, HERITAGE
STYLE AND DESIGN & EXPERIENCES
PRICE
CATEGORY IDENTIFICATION
NEEDS SATISFIED
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Imagery Dimensions
Performance Dimensions
• User profiles
• Primary characteristics and supplementary – Age
features – Gender
• Purchase and usage situations
• Product reliability, durability, and serviceability – Type of channel, specific stores, ease of purchase
– Time (day, week etc.), location, and context of usage
• Service effectiveness, efficiency, and empathy • Personality and values
– Sincerity, excitement, competence, sophistication
• Style and design
• History, heritage, and experiences
• Price – Nostalgia
– Memories
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Judgment Dimensions Feelings Dimensions

• Brand quality • Brand consideration • Warmth
– Value – Relevance • Fun
– Satisfaction
• Brand credibility
• Brand superiority • Excitement
– Expertise – Differentiation • Security
– Trustworthiness
– Likeability • Social Approval
• Self-respect
17 18
Resonance Dimensions Customer Equity

• Behavioral loyalty
– Frequency and amount of repeat purchases • The sum of lifetime values of all customers
• Attitudinal attachment • Customer lifetime value (CLV) is affected by
– Love brand revenue and by the cost of customer
– Proud of brand acquisition, retention, and cross-selling
• Sense of community • Consists of three components:
– Kinship
– Affiliation – Value equity
– Brand equity
• Active engagement
– Seek information – Relationship equity
– Join club
– Visit website, chat rooms Rust, Zeithamal & Lemon, 2004
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Relationship of Customer Equity to

Brand Equity
• Customers drive the success of brands but
brands are the necessary touchpoint that
firms have to connect with their customers.
• Customer-based brand equity maintains that
brands create value by eliciting differential
customer response to marketing activities.
-
• The higher price premiums and increased
l
levels of loyalty engendered by brands
t
generate incremental cash flows. l .. l
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6/21/2021

Customer-Based Brand Equity Brand Equity as a “Bridge”

• Reflection of past investments in the

Making a Brand Strong:

Creating a Positive Brand Image The Four Steps of Brand Building

Customer-Based Brand Equity Pyramid

1. Who are you? (brand identity)

Sub-Dimensions of CBBE Pyramid Salience Dimensions

• Breadth of brand awareness

PRIMARY CHARACTERISTICS & USER PROFILES

Judgment Dimensions Feelings Dimensions

Resonance Dimensions Customer Equity

Relationship of Customer Equity to

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