PROF. V.B.

SHAH INSITUTE OF MANAGEMENT,

AMROLI, SURAT

COURSE: B.B.A
YEAR: T.Y.BBA (SEM –V)
SUBJECT: Advertising & Brand Management
Faculty: Dr. Tanvi Bhalala
UNIT 5: CUSTOMER BASED BRAND EQUITY (15%)
Topics: Sources of brand equity, Building a strong brand, criteria for choosing brand elements,
Options and tactics for brand elements
Prof. V. B. Shah Institute of Management

Customer Based Brand Equity occurs when the consumer has a high level of awareness &
familiarity with the brand & holds some strong, favourable & unique brand associations in
memory.

CBBE is formally defined as the differential effect that brand knowledge has on consumer
response to the marketing of that brand. A brand is said to have

When consumers
behave favourably to a
Positive CBBE
product & its
marketing activities
A Brand is said to have
When Consumers
behave unfavourably
Negative CBBE
to a product & its
marketing activities

The key ingredients to this definition:

 “Differential Effect”
 “Brand Knowledge”
 “Consumer Response to marketing”

The key to branding is that consumers must not think that all brands in the category are the
same. Thus, establishing a high level of brand awareness & a positive brand image in consumer
memory.

In other words, the power of brand lies in what resides in the minds of customers.

Challenges for marketers in building a strong brand:-

 Ensuring the customers to have the right type of experiences with products & services
 The right type of accompanying marketing programs
 Linking the desired thoughts, feelings, images, beliefs, perceptions, opinions & so on.

Marketing Advantages of Strong Brands

 Improved perceptions of product performance

 Greater loyalty
 Less vulnerability to competitive marketing actions
 Less vulnerability to marketing crises
 Larger margins
 More inelastic consumer response to price increases
 More elastic consumer response to price decrease
 Greater trade cooperation and support
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 Increased marketing communication effectiveness

 Possible licensing opportunities
 Additional brand extension opportunities

BRAND KNOWLEDGE:-
Brand Knowledge is the key to creating brand equity, because it creates the differential effect
that drives brand equity.

Brand Knowledge can be characterized in terms of 2 components:-

1. Brand Awareness
2. Brand Image

Brand Awareness: Ability to identify the brand under different conditions.

Brand Image: Perceptions about a brand as reflected by the brand associations held in
consumer memory. Ex: - What comes to mind first. Bata: - durability, cheap & best, comfort.
Mercedes: - status

Therefore one needs to establish a high level of brand awareness & a positive brand image in
consumer memory.

CUSTOMER BASED BRAND EQUITY MODEL

CBBE model approaches Brand equity from the perspective of the consumer – whether it be
an individual or an organization. The CBBE model provides a unique point of view as to what
brand equity is & how it should best be built, measured & managed.

CBBE model deals with building strong brand through a sequence of steps: (All steps involve
accomplishing certain objectives with customers –both existing & potential)

Four Steps:-
1. BRAND IDENTITY: ensure identification of the brand
2. BRAND MEANING: tangible & intangible brand association with certain properties.
3. BRAND RESPONSES: proper customer responses to this brand identification & brand
meaning
4. BRAND RELATIONSHIPS: convert brand response to create an intense, active loyalty
relationship between customers & the brand.

Branding ladder: “From identify to meaning to responses to relationships”

1. Meaning cannot be established unless identity has been created

2. Responses cannot occur unless the right meaning has been developed
3. A relationship cannot be formed unless the proper responses have been brought about.

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CBBE MODEL: - BRAND BUILDING BLOCKS:-

Brand building blocks can be assembled in terms of a brand pyramid:-

Creating significant brand equity involves reaching the pinnacle of the CBBE brand pyramid
and will only occur if the right building blocks are put into place.

STEP: 1 BRAND IDENTITY

Brand Salience :- ( prominent & noticeable) Achieving the right brand identity involves
creating brand salience with customers. This can be done by brand awareness: - it is the ability
to recall and recognize the brand.

Breadth & Depth of awareness:-

 Depth: - of the brand awareness concerns the likelihood that a brand element will come to
mind & the ease with which it does so.
 Breath: - of brand awareness concerns the range of purchase & usage situations in which
the brand elements comes to mind. Ex: - real orange juice – not only at the time of breakfast,
but an energy drink.

A highly salient brand is one that has both depth & breadth of brand awareness.
Note: - brand elements: - name, logo, symbol etc.

STEP 2 BRAND MEANING

Brand Performance

Brand Performance relates to the ways in which the product or service attempts to meet
customers more functional needs. There are 5 important types of attributed and benefits that
are the foundation of brand performance
1. Primary ingredients & supplementary features
2. Product reliability, durability & serviceability
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3. Service effectiveness, efficiency & empathy

4. Style & design
5. Price

Note:-
 Reliability: - consistency of performance
 Serviceability: - ease of repairing
 Durability: - expected economic life of the product
 Effectiveness: - satisfaction of customer needs
 Efficiency: - speed, responsiveness
 Empathy: - trusting, caring, customer interest concern.

Brand Imagery

Brand imagery deals with the extrinsic (not forming an essential or inherent part of athing)
properties of the product or services. Imagery refers to more intangible aspects of the brand

Imagery associations can be formed

 Directly: - consumers own experience, contact with the brand, target mkt, or uage situation
 Indirectly: - advertising, other source of information, word of mouth

4 categories of intangibles linked with a brand:-

 User profiles
 Purchase & usage situations
 Personality & values
 History, heritage & experiences

STEP 3 BRAND RESPONSES

Brand Judgments

Brand judgments focus on customer’s personal opinions & evaluations with regard to the
brand. Brand judgments involve how customers put together all the different performance and
imagery associations of the brand to form different kinds of opinions.

4 types of brand judgments:-

 Brand Quality
 Brand Credibility – 3 dimensions – perceived expertise, trustworthiness, likeability
 Brand Consideration – for possible purchase or usage
 Brand Superiority – extent to which it is viewed as unique as & better than other brands

Brand Feelings
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Brand feelings are customer’s emotional responses & reactions with respect to the brand.

6 types of brand building feelings:-

1. Warmth
2. Fun
3. Excitement
4. Security- feeling of safety, comfort & self-assurance
5. Social Approval
6. Self-respect – feeling of pride, accomplishment or fulfilment

STEP IV BRAND RELATIONSHIP

Brand Resonance

Brand resonance refers to the ultimate relationship & level of identification that the customer
has with the brand. It refers to the intensity or the depth of the psychological bond that
customers have with the brand.

4 categories of brand resonance

1. Behavioural Loyalty – repeat purchase

2. Attitudinal attachment – love with the brand
3. Sense of community – identification/affiliation with other people associated with the
brand
4. Active engagement- join clubs, formal/informal representatives of brands, exchange
correspondence & updates of the brand

BRAND ELEMENTS

Brand Elements: - are also called brand identities, those trademark devices that serve to identify
& differentiate the brand.
1. Brand names 5. Slogans
2. URLs 6. Jingles
3. Logo & Symbol 7. Packages
4. Characters or Spokespeople

This chapter deals how a marketer should choose an optimal set of brand elements to build
brand equity.

CRITERIA FOR CHOOSING BRAND ELEMENTS

There are six criteria in choosing brand elements:-

1. Memorability (Easily recognized & easily recalled)
2. Meaningfulness (Descriptive & persuasive)
3. Likeability (Fun & interesting & Rich visual & verbal imagery)
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4. Transferability (Within & across product categories, across geographic boundaries &
cultures)
5. Adaptability (Flexible & Updateable)
6. Protect ability (Legally, Competitively)

The first three criteria—memorability, meaningfulness, and likability—are the marketer's

offensive strategy and build brand equity. The latter three, however, play a defensive role for
leveraging and maintaining brand equity in the face of different opportunities and constraints.
Let's consider each of these general criteria.

1. Memorability

A necessary condition for building brand equity is achieving a high level of brand awareness.
Brand elements that promote that goal are inherently memorable and attention getting and
therefore facilitate recall or recognition in purchase or consumption settings.

2. Meaningfulness

Brand elements may take on all kinds of meaning, with either descriptive or persuasive
content. We saw in Chapter I that brand names can be based on people, places, animals or
birds, or other things or objects. Two particularly important criteria are how well the brand
element conveys the following:

General information about the nature of the product category: Does the brand element have
descriptive meaning and suggest something about the product category? How likely is it that
a consumer could correctly identify the product category for the brand based on any one brand
element? Does the brand element seem credible in the product category?

Specific information about particular attributes and benefits of the brand: Does the brand
element have persuasive meaning and suggest something about the particular kind of product,
or its key attributes or benefits? Does it suggest something about a product ingredient or the
type of person who might use the brand?

3. Likability
Independent of its memorability and meaningfulness, do customers find the brand element
aesthetically appealing? Is it likable visually, verbally, and in other ways? Brand elements can
be rich in imagery and inherently fun and interesting, even if not always directly related to the
product.
4. Transferability

Transferability measures the extent to which the brand element adds to the brand equity of
new products for the brand. In other words, how useful is the brand element for line or
category extensions? In general, the less specific the name, the more easily it can be
transferred across categories. For example, Amazon connotes a massive South American river
and therefore as a brand can be appropriate for a variety of different types of products.

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5. Adaptability

The fifth consideration for brand elements is their adaptability over time. Because of changes
in consumer values and opinions, or simply because of a need to remain contemporary, most
brand elements must be updated. The more adaptable and flexible the brand element, the easier
it is to update it. For example, logos and characters can be given a new look or a new design
to make them appear more modern and relevant.

6. Protect ability

The sixth and final general consideration is the extent to which the brand element is
protectable—both in a legal and a competitive sense.

 Marketers should (l) choose brand elements that can be legally protected
internationally, (2) and formally register them with the appropriate legal bodies.
 Another consideration is whether the brand is competitively protectable. If a name,
package, or other attribute is too easily copied, much of the uniqueness of the brand
may disappear. Marketers need to reduce the likelihood that competitors can create a
derivative based on the product's own elements.

OPTIONS AND TACTICS FOR BRAND ELEMENTS

1. Brand Name

Brand name is a compact form of communication. Any brand name must be chosen with the 6
general criteria in mind.

Six criteria for choosing brand name:-

1. Descriptive: - describes function literally ex: - Singapore Airlines
2. Suggestive: - Suggestive of a benefit or function ex: - Quick Fix, Eveready
3. Compounds: - Combination of 2 or more words ex: - RedHat
4. Classical: - Based on Latin, Greek, or Sanskrit ex: - Himalaya
5. Arbitrary: - Real words with no obvious tie-in to company ex: - Apple
6. Fanciful: - Coined words with no obvious meaning ex: - Avanade

Brand Awareness

Enhance Recall: - short names often facilitate recall because they are easy to encode and store
in memory Longer names can be shortened to ease recall ability ex: - Coca-cola has also
become known as coke.

Easy pronunciation: - to obtain valuable repeated word-of-mouth exposure that helps to build
strong memory links. Pronunciation can affect the willingness of consumers to order or request
the brand orally. Rather than risk the embarrassment of mispronouncing a difficult name. ex:-
MayBach , consumers may just avoid pronouncing it altogether , because so much of the initial
marketing effort have to be devoted to simply educating consumers to the proper way to
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pronounce the name . Ex: - In case of Wyborowa imported Polish (pronounced Vee-ba-rova),
management had to resort to running a print ad to help the consumers pronounce the brand
name.

Familiar & meaning full

Brand Associations

Meaning that consumers extract from the name can be critical.

Ex: suggestive name: ColorStay lipstick

Close up toothpaste
Diehard auto batteries

Brand names may be intangible or emotion-laden to arouse certain feelings ex:- Obsession
perfumes

Restrictive nature of suggestive names:-

Ex: - if a brand of laundry detergent were to be initially named Blossom & positioned as
“adding fresh scent”, it may be more difficult to attempt to later reposition the product that the
product “fights tough stains”. Consumers find it more difficult to accept the new positioning
when the brand name continues to remind them of other product considerations.

Even individual letters can contain meaning that may be useful I developing new brand name.
The letter X has become much more common in recent years as X now represents “extreme” ,
“youth” ex:- Gen-X or even the letter “i ” ex:- Motorola V3i

Naming Procedure:-

1. Strategic Branding Direction: - bases of 6 criteria

2. Primary Name Selection: - generating as many names & concepts as possible. Source of
names can be used:-

 Company mgmt. employees

 Existing or potential customers
 Retailers or suppliers
 Advertising agencies
 Professional name consultants

3. Screening of names – Shot listing

Eliminating by:-

 Names that have unintentional double meaning

 Names that are patently unpronounceable, already in use, or too close to an existing name
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 Names that have obvious legal complications

 Names that represent an obvious contradiction of the positioning

4. Search- Consumer research + Legal research

5. Consumer Testing Consumers may be shown the product & its packaging, price or
promotion so that they understand the rationale for the brand name & how it will be used.

6. Final name selection: - formally register the name.

2. URLs

Uniform Resource Locators are used to specify locations of pages on the web, and are also
commonly referred to as domain names.

3. Logos & Symbols

Visual brand elements often play a critical role in building brand equity, especially in terms of
brand awareness. Even families & countries have used logos for centuries to visually represent
their names ex: - Hitler, Surayavanshi, etc.
Ex: - logos include the Mercedes Star, Rolex crown, Nike swoosh, Olympic rings.
These non-word logos are also often called symbols

Benefits
1. Boost band recall
2. Versatility: - appropriate in a range of product categories
3. Identification device

Note: - In updating logos, however, it is important to make gradual changes that do to lose sight
of the inherent advantages of the logo.

4. Character

Character represents a special type of brand symbol –one that takes on human or real life
characteristics.
Ex: - Animated –Pillsbury, Ronald McDonald, FIDO,

Benefits
1. Attention getting: - as they are often colorful & rich in imagery
2. Help in creating perception of the brand: - fun, interesting and so forth.
3. Help in building relationship: - ability of a consumer to have a relationship with a rand may
be easier when the brand literally has a humanistic character.
4. Easy Transferability: - as they do not have direct product meaning

Cautions

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Brand characters can be so attention getting and well liked that they dominate other brand
elements

CASE: - When Eveready introduced their drumming pin bunny that “kept going…. And going
…..and going” in ads for their Eveready Energizer Battery, many consumers were so captivated
by the character that they paid little attention to the name of the advertised brand. As a result,
they often mistakenly believed that the ad was for Eveready’s chief competitor, Duracell.
Consequently, Eveready found it necessary to add the pink bunny as a reminder to their
package, promotions & other marketing communications to create a strong brand links.

5. Slogans

Slogans are short phrases that communicate descriptive or persuasive information about the
brand. Slogans often appear in advertising but can play an important role on packaging & in
other aspects of the marketing program.

Benefits
 Help consumer grasp the meaning of the brand
 Making strong link between the brand & the product category
 Convey descriptive & persuasive information

Successful slogans can take on lives of their own & become public catch phases:-

Ex: “Doondte Reh Jaoge”, DeBeers: - “A Diamond Is Forever”

Note: - If slogan continues to convey some product meaning that the rand no longer needs to
reinforce, the slogan can become restrictive & fail to allow the brand to be updated as much as
desired or necessary.

6. Jingles

Jingles are musical messages written around the brand. Typically composed by professional
songwriters. During the first half of the nineteenth century, when broadcast advertising was
confined primarily to radio, jingles became important branding devices.

Jingles can be thought of as extended musical slogans & in that sense can be classified as a
brand element. Ex: - Airtel, Idea

7. Packaging

Packaging involves the activities of designing & producing containers or wrappers for a
product.

From the perspective of both the firm & consumers, packaging must achieve a number of
objectives.

 Identify the brand

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 Convey descriptive & persuasive information

 Facilitate product transportation & protection
 Assist at-home storage
 Aid product consumption

Aesthetic considerations relate to a package’s size & shape, material color, text & graphics.
Innovations in printing processes now permit eye-catching & appealing graphics that convey
elaborate & colorful message on the package at the “moment of truth” at the point of purchase.

Ex: - packaging innovations with food products: - reseal able, tamperproof.

Benefits
 Structural packaging innovations can create a point of difference that permits higher
margin. Ex: When we think of Sprit, common response is “green Bottle”
 New packages can also expand a market & capture new market segments.

Packaging at the Point of Purchase

 Packaging can be a means of having strong appeal on the shelf & standing out from the
clutter.

For example: A survey was done: - The average supermarket shopper may be exposed to
15000 to 20000 products in a shopping visit that lasts less than 30 min & during which many
purchases may be unplanned. Packaging innovations can provide at least a temporary edge on
competition. For these reason, packaging has been seen as a particularly cost-effective way to
build brand equity.

Packaging is sometimes called the “last five seconds of marketing” as well as “permanent
media” or the “last salesman”

Survey: - One survey of 200 TV commercials in 10 mass market product categories indicated
that the package was featured, on average, in roughly 12 seconds of 30 second spot.

Packaging Innovations

In mature markets especially package innovations can provide a short-term sales boost.

Package Design

These days specialized package designers bring artistic techniques & scientific skills to
package design in an attempt to meet the marketing objectives for a brand.

Designers often refer to the “shelf impact” of a package – the visual effect that the package has
at the point of the purchase when seen in the context of other packages in the category.

“Color Vocabulary”:- ex: - sell milk in anything but white. , Coffee – brown color, even for
chocolate based drinks, Mint based: - blue color
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“Color Ownership”:- certain brands are thought to have color ownership. Ex:-
Red: - Colgate toothpaste, coke
Orange: - Tide
Yellow: - Kodak Film, Lipton tea
Green: - 7 up soft drink
Blue: - Pepsi
Packaging color can affect consumer’s perceptions of the product itself.

Packaging Changes

The most common reason for package redesign is that the old package just looks outdated.
These changes must be conducted carefully. If changed too significantly, consumers may not
recognize the package when confronted with it in the store.

5th “P”:- of the marketing mix: - it can play important role in building brand equity directly
through POD: - which is created by functional or aesthetic elements of the packaging.

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Prof. V. B. Shah Institute of Management

Criteria for Brand Elements options:-

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