1、2.1,CHAPTER 2: CUSTOMER-BASED BRAND EQUITY,Kevin Lane KellerTuck School of BusinessDartmouth College,2.2,Customer-Based Brand Equity,“The differential effect that brand knowledge has on consumer response to the marketing of that brand.”Keller, 1993,2.3,Customer-Based Brand Equity,Differential effect
2、 Differences in consumer response Brand knowledge A result of consumers knowledge about the brand Consumer response to marketing Choice of a brand Recall of copy points from an ad Response to a sales promotionEvaluations of a proposed brand extension,2.4,Brand Equity as a “Bridge”,Reflection of past
3、 investments in the marketing of a brandDirection for future marketing actions or programs,2.5,Making a Brand Strong: Brand Knowledge,Brand knowledge is the key to creating brand equity. Brand knowledge consists of a brand node in memory with a variety of associations linked to it.Brand knowledge ha
4、s two components: brand awareness and brand image.,2.6,Sources of Brand Equity,Brand awarenessBrand recognitionBrand recallBrand image Strong, favorable, and unique brand associations,2.7,Brand Awareness Advantages,Learning advantagesRegister the brand in the minds of consumers Consideration advanta
5、gesLikelihood that the brand will be a member of the consideration set Choice advantages Affect choices among brands in the consideration set,2.8,Establishing Brand Awareness,Increasing the familiarity of the brand through repeated exposure (for brand recognition) Forging strong associations with th
6、e appropriate product category or other relevant purchase or consumption cues (for brand recall),2.9,Creating a Positive Brand Image,Brand AssociationsDoes not matter which source of brand associationNeed to be favorable, strong, and uniqueMarketers should recognize the influence of these other sour
7、ces of information by both managing them as well as possible and by adequately accounting for them in designing communication strategies.,2.10,The Four Steps of Brand Building,Ensure identification of the brand with customers and an association of the brand in customers mindsEstablish the totality o
8、f brand meaning in the minds of consumersElicit the proper customer responses to the brand identification and brand meaningConvert brand response to create an intense, active loyalty relationship between customers and the brand,2.11,Four Questions Customers ask of Brands,Who are you? (brand identity
9、)What are you? (brand meaning)What about you? What do I think or feel about you? (brand responses)What about you and me? What kind of association and how much of a connection would I like to have with you? (brand relationships),2.12,2.14,Salience Dimensions,Depth of brand awarenessEase of recognitio
10、n and recallStrength and clarity of category membershipBreadth of brand awarenessPurchase considerationConsumption consideration,2.15,Depth and Breadth Importance,The product category hierarchy shows us not only the depth of awareness matters but also the breadth.The brand must not only be top-of-mi
11、nd and have sufficient “mind share,” but it must also do so at the right times and places.,2.16,Product Category Structure,To fully understand brand recall, we need to appreciate product category structure, or how product categories are organized in memory.,2.17,Performance Dimensions,Primary charac
12、teristics and supplementary featuresProduct reliability, durability, and serviceabilityService effectiveness, efficiency, and empathyStyle and designPrice,2.18,Imagery Dimensions,User profilesDemographic and psychographic characteristicsActual or aspirationalGroup perceptionspopularityPurchase and u
13、sage situationsType of channel, specific stores, ease of purchaseTime (day, week, month, year, etc.), location, and context of usagePersonality and valuesSincerity, excitement, competence, sophistication, and ruggednessHistory, heritage, and experiencesNostalgiaMemories,2.19,Judgment Dimensions,Bran
14、d qualityValueSatisfactionBrand credibilityExpertiseTrustworthinessLikeability,Brand considerationRelevanceBrand superiorityDifferentiation,2.20,Feelings Dimensions,WarmthFunExcitementSecuritySocial ApprovalSelf-respect,2.21,Resonance Dimensions,Behavioral loyaltyFrequency and amount of repeat purch
15、asesAttitudinal attachmentLove brand (favorite possessions; “a little pleasure”)Proud of brandSense of communityKinshipAffiliationActive engagementSeek informationJoin clubVisit website, chat rooms,Application:Identify the Key Drivers of Brand Equity,2.24,Brand Building Implications,Customers own br
16、ands. Dont take shortcuts with brands. Brands should have a duality. Brands should have richness. Brand resonance provides important focus.,2.25,Creating Customer Value,Customer-brand relationships are the foundation of brand resonance and building a strong brand.The customer-based brand equity mode
17、l certainly puts that notion front and center.,2.26,Is a company consumer-centric?,Is the company looking for ways to take care of you?Does the company know its customers well enough to differentiate between them? Is someone accountable for customers?Is the company managed for shareholder value?Is t
18、he company testing new customer offers and learning from the results?,Sources: Larry Selden and Geoffrey Colvin, 2004.,2.27,Customer Relationship Management (CRM),Uses a companys data systems and applications to track consumer activity and manage customer interactions with the company,2.28,Customer
19、Equity,Blattberg and Deighton (1996) offer eight guidelines as a means of maximizing customer equity:Invest in highest-value customers firstTransform product management into customer managementConsider how add-on sales and cross-selling can increase customer equityLook for ways to reduce acquisition
20、 costsTrack customer equity gains and losses against marketing programsRelate branding to customer equityMonitor the intrinsic retainability of your customerConsider writing separate marketing plansor even building two marketing organizationsfor acquisition and retention efforts,2.29,Customer Equity
21、,The sum of lifetime values of all customersCustomer lifetime value (CLV) is affected by revenue and by the cost of customer acquisition, retention, and cross-sellingConsists of three components:Value equityBrand equityRelationship equity Rust, Zeithamal & Lemon, 2004,2.30,Relationship of Customer E
22、quity 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 pr
23、emiums and increased levels of loyalty engendered by brands generate incremental cash flows.,2.31,CHAPTER 3: BRAND POSITIONING & VALUES,Kevin Lane KellerTuck School of BusinessDartmouth College,2.32,Brand Positioning,Is at the heart of the marketing strategy“. . . the act of designing the companys o
24、ffer and image so that it occupies a distinct and valued place in the target customers minds.”Philip Kotler,2.33,Determining a frame of reference,What are the ideal points-of-parity and points-of-difference brand associations vis-vis the competition? Marketers need to know:Who the target consumer is
25、Who the main competitors are How the brand is similar to these competitors How the brand is different from them,2.34,Target Market,A market is the set of all actual and potential buyers who have sufficient interest in, income for, and access to a product. Market segmentation divides the market into
26、distinct groups of homogeneous consumers who have similar needs and consumer behavior, and who thus require similar marketing mixes.Market segmentation requires making tradeoffs between costs and benefits.,2.35,Example of the toothpaste market,Four main segments:Sensory: Seeking flavor and product a
27、ppearanceSociables: Seeking brightness of teethWorriers: Seeking decay preventionIndependent: Seeking low price,2.36,Criteria for Segmentation,Identifiability: Can we easily identify the segment?Size: Is there adequate sales potential in the segment?Accessibility: Are specialized distribution outlet
28、s and communication media available to reach the segment?Responsiveness: How favorably will the segment respond to a tailored marketing program?,2.37,Nature of Competition,Deciding to target a certain type of consumer often defines the nature of competition Do not define competition too narrowlyEx:
29、a luxury good with a strong hedonic benefit like stereo equipment may compete as much with a vacation as with other durable goods like furniture,2.38,Points-of-Parity and Points-of-Difference,Points-of-difference (PODs) are attributes or benefits that consumers strongly associate with a brand, posit
30、ively evaluate, and believe that they could not find to the same extent with a competitive brand. Points-of-parity associations (POPs), on the other hand, are not necessarily unique to the brand but may in fact be shared with other brands.,2.39,Brand Positioning Guidelines,Two key issues in arriving
31、 at the optimal competitive brand positioning are:Defining and communicating the competitive frame of referenceChoosing and establishing points-of-parity and points-of-difference,2.40,Defining and Communicating the Competitive Frame of Reference,Defining a competitive frame of reference for a brand
32、positioning is to determine category membership.The preferred approach to positioning is to inform consumers of a brands membership before stating its point of difference in relationship to other category members.,2.41,Choosing POPs & PODs,Desirability criteria (consumer perspective)Personally relev
33、antDistinctive and superiorBelievable and credibleDeliverability criteria (firm perspective)Feasible ProfitablePre-emptive, defensible, and difficult to attack,2.42,Attribute and Benefit Trade-offs,Price and qualityConvenience and qualityTaste and low caloriesEfficacy and mildnessPower and safetyUbi
34、quity and prestigeComprehensiveness (variety) and simplicityStrength and refinement,2.43,Strategies to Reconcile Attribute and Benefit Trade-offs,Establish separate marketing programsLeverage secondary association (e.g., co-brand)Re-define the relationship from negative to positive,2.44,Core Brand V
35、alues,Set of abstract concepts or phrases that characterize the five to ten most important dimensions of the mental map of a brand Relate to points-of-parity and points-of-differenceMental map Core brand values Brand mantra,2.45,Brand Mantras,An articulation of the “heart and soul” of the brandsimil
36、ar to “brand essence” or “core brand promise” Short three- to five-word phrases that capture the irrefutable essence or spirit of the brand positioning and brand values ConsiderationsCommunicateSimplifyInspire,2.46,Designing the Brand Mantra,The term brand functions describes the nature of the produ
37、ct or service or the type of experiences or benefits the brand provides. The descriptive modifier further clarifies its nature. The emotional modifier provides another qualifierhow exactly does the brand provide benefits, and in what way?,2.47,Designing the Brand Mantra,2.48,Internal Branding,Member
38、s of the organization are properly aligned with the brand and what it represents.Crucial for service companies,2.49,Brand Audit,Externally, consumer-focused assessementA comprehensive examination of a brand involving activities to assess the health of the brand, uncover its sources of equity, and su
39、ggest ways to improve and leverage that equity It includes brand vision, mission, promise, values, position, personality, and performance,2.50,Importance of Brand Audits,Understand sources of brand equityFirm perspectiveConsumer perspectiveSet strategic direction for the brandRecommend marketing pro
40、grams to maximize long-term brand equity,2.51,Brand Audit Steps,Brand inventory (supply side)Brand exploratory (demand side),2.52,Brand Inventory,A current comprehensive profile of how all the products and services sold by a company are branded and marketed:Brand elementsSupporting marketing program
41、sProfile of competitive brandsPOPs and PODsBrand mantra,2.53,Brand Inventory (Cont.),Suggests the bases for positioning the brandOffers insights to how brand equity may be better managedAssesses consistency in message among activities, brand extensions, and sub-brands in order to avoid redundancies,
42、 overlaps, and consumer confusion,2.54,Brand Exploratory,Provides detailed information as to how consumers perceive the brand:AwarenessFavorabilityUniqueness of associationsHelps identify sources of customer-based brand equityUncovers knowledge structures for the core brand as well as its competitor
43、s,2.55,Suggested Brand Audit Outline,Brand audit objectives, scope, and approachBackground about the brand (self-analysis)Background about the industriesConsumer analysis (trends, motivation, perceptions, needs, segmentation, behavior)Brand inventoryElements, current marketing programs, POPs, PODsBr
44、anding strategies (extensions, sub-brands, etc.)Brand portfolio analysisCompetitors brand inventoryStrengths and weaknesses,2.56,Brand Audit Outline (Cont.),Brand exploratoryBrand associationsBrand positioning analysisConsumer perceptions analysis (vs. competition)Summary of competitor analysisSWOT
45、analysisBrand equity evaluationStrategic brand management recommendations,2.57,CHAPTER 4: CHOOSING BRAND ELEMENTS TO BUILD BRAND EQUITY,Kevin Lane KellerTuck School of BusinessDartmouth College,2.58,Building Customer-Based Brand Equity,Brand knowledge structures depend on:The initial choices for the
46、 brand elements The supporting marketing program and the manner by which the brand is integrated into itOther associations indirectly transferred to the brand by linking it to some other entities,2.59,Criteria for Choosing Brand Elements,Memorability Meaningfulness Likability Transferability Adaptab
47、ility Protectability,Marketers offensive strategy and build brand equity,Defensive role for leveraging and maintaining brand equity,2.60,Memorability,Brand elements should inherently be memorable and attention-getting, and therefore facilitate recall or recognition. For example, a brand of propane g
48、as cylinders named Blue Rhino featuring a powder-blue animal mascot with a distinctive yellow flame is likely to stick in the minds of consumers.,2.61,Meaningfulness,Brand elements may take on all kinds of meaning, with either descriptive or persuasive content. Two particularly important criteria Ge
49、neral information about the nature of the product categorySpecific information about particular attributes and benefits of the brand The first dimension is an important determinant of brand awareness and salience; the second, of brand image and positioning.,2.62,Likability,Do customers find the brand element aesthetically appealing? Descriptive and persuasive elements reduce the burden on marketing communications to build awareness.,
