Customer-based equity and brand positioning (chapter 2) презентация

Defining Customer Based Brand Equity (CBBE)
The basic premise is;
The power of a brand lies in what customers have learned, felt, seen, heard about the brand as a result of their experiences over time.
Approaches brand equity from the perspective of the consumer
Stresses that the power of a brand lies in what resides in the minds and hearts of customers

Let’s listen to Philip Kotler on CBBE!
https://www.youtube.com/watch?v=8W5ycYuhrK8

Customer-Based Brand Equity
For successful brand building, 3 models will provide macro and micro perspectives to the managers.
These models are like matryoshka dolls. They are interconnected with each other.
Brand Positioning model (How to establish and maximize Competitive Advantage in the minds of customers)
Brand Resonance model (How to create intense and actively loyal customers; Customer Loyalty)
Brand Value Chain model (How to trace the value creation process to better understand the Financial Impact of marketing expenditures and investments)

CBBE Example: Tiffany & Co.
The Tiffany’s brand has enough equity that a price premium isn’t just accepted, it’s expected.

Figure 2.1- Marketing Advantages of Strong Brands

To Sum up with an example.. TextBook page 69
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Brand equity is the differential effect that brand knowledge has on consumer response to the marketing of that brand.

Identify and differentiate…REMEMBER!
According to AMA (American Marketing Association)
A brand is “ name, term, sign, symbol, or design or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition”
2 tricky words: identify and differentiate

Building strong brands: Brand Knowledge
Key to create brand equity
Creates the differential effect that drives brand equity
Marketers need an insightful way to represent how brand knowledge exists in consumer memory

Associative Network Memory Model
Views memory as a network of nodes and connecting links
Nodes - Represent stored information or concepts
Links - Represent the strength of association between the nodes
Brand associations are informational nodes linked to the brand node in memory

Figure2.2 - Possible Apple Computer Associations

Sources of Brand Equity
Consumers’ ability to identify the brand under different conditions; it is the familiarity of the brand to the consumer
Consumers’s perceptions about the brand

Does CC need brand awareness???

Brand Awareness & Advantages
Brand awareness: Related to the strength of the brand node or trace in memory.
Brand recognition: Consumers’ ability to confirm prior exposure to the brand when given the brand as a cue.
(example: watching the battery ad on TV, buy it the other day on the supermarket)
Brand recall: Consumers’ ability to retrieve the brand from memory when given the product category, the needs fulfilled by the category, or a purchase or usage situation as a cue.
(example: when I talk premium cars or when I talk fast food)

Brand Image

To Sum up...
To create brand equity, marketers should:
Create favorable consumer response i.e. brand awareness
Create positive brand image though brand associations that are strong, favorable, and unique

Example: Body Shop Brand İmage
A succesfull global brand image without using conventional advertising. Strong associations
to personal care and environmental concern through products (natural ingredients, no parabens, no animal testing, packaging (simple refillable rcycled), merchandising (brochures, displays), supply policy (working with local producers), PR (visible and outspoken), CSR (requiring each franchisee to run a local program), etc.

Example: The Body Shop Website

Identifying and Establishing Brand Positioning
Brand positioning
Act of designing the company’s offer and image so that it occupies a distinct and valued place in the target customers’ minds
Finding the proper “location” in the minds of consumers or market segment
Allows consumers to think about a product or service in the “right” perspective

Positioning examples
City Brands
NewYork (city that never sleeps)
Paris (city of romance)
Car Brands
BMW (ultimate driving machine)
VW ( das auto)
Axe ad:
https://www.youtube.com/watch?v=OHCRWfV1q5A

Identifying and Establishing Brand Positioning

Market Segmentation & Target Market
Market segmentation: Divides the market into distinct groups of homogeneous consumers who have similar needs and consumer behavior
For axe, it is ordinary, young 15-40 males.

Figure 2.3 - Consumer Segmentation Bases

Figure 2.4 - Business-to-Business Segmentation Bases

Nature of Competition
Competitive analysis
Indirect competition
Multiple frames of reference: Positioning requires a frame of reference (identifying the target market and the nature of competition)
BMW: ???
Who the target consumer is?
Who the main competitors are?
How the brand is similar to those competitors?
How the brand is different from them?

Points of Parity and Points of Difference
Points-of-difference associations: Attributes or benefits that consumers strongly associate with a brand, positively evaluate, and believe that:
They cannot be found to the same extent with a competitive brand.
Points-of-parity associations: Attributes shared with other brands.
Points-of-parity versus points-of-difference: Unless certain points-of-parity can be achieved to overcome potential weaknesses, points-of-difference may not even matter. Example: BMW vs Mercedes crash safety ratings. Points-of-parity are easier to achieve than points-of-differences. People should believe the brand is good enough.

To Sum up…
To appropriately position a brand, marketers should:
Identify their target customers
Analyze the type of competition they might face in the identified market base
Identify product features and associations that are different or similar to their competitors

Positioning Guidelines

To Sum up ...
Brand positioning describes how a brand can effectively compete against a specified set of competitors
A good product positioning should:
Have a “foot in the present” and a “foot in the future”
Identify all relevant points-of-parity
Reflect a consumer point of view in terms of the benefits that consumers derive
Contain points-of-difference and points-of-parity that appeal both to the “head” and the “heart”

Brand Mantra
A brand mantra; short, three-to five-word phrase that captures the irrefutable essence or spirit of the brand positioning.
Provides guidance about:
What products to introduce under the brand.
What ad campaigns to run.
Where and how the brand should be sold.
Disney’ mantra: Fun Family Entertainment
Nike’s mantra: Authentic Athletic Performance

To Sum up...
A good brand mantra should:
Communicate the category of the business to set the brand boundaries and clarify what is unique about the brand
Be simple, crisp, and vivid
Stake out ground that is personally meaningful and relevant to as many employees as possible