Brand Equity

Consumer-based Brand Equity Creating Associations

The material is based on the Following Books

Marketing Strategy Walker Boyd Mullins Larreche Marketing Strategy O.C.Ferrel and M.D.Hartline

Strategic Brand Management Kevin Lane Keller

An Integrated Approach to strategic Management Hills and Jones

Consumer based brand Equity

The differential effect that the brand knowledge has on the consumer response

to the marketing of that brand

Customer-based brand equity

Brand knowledge leads to Differential effect In the customers response to brand marketing

The Concept of Brand Equity Brand equity is defined in terms of the marketing effects uniquely attributable to the Brand.

Customer-based brand equity

Consumers react more favorably

to a product
and the way it is marketed when the brand is identified than when it is not.

The perception of Performance changes

Taste test for the soft Drinks

Blind test
51 44 23
5
Tastes Better Tastes Better Tastes Better Tastes Better

Open test
65

12

indifferent

indifferent

Determinants of Customer-Based Brand Equity Customer is aware of and familiar with the brand

Determinants of Customer-Based Brand Equity

Customer holds some strong, favorable, and unique brand associations in memory

Brand Knowledge
Is the key to creating brand Equity because it creates the differential effect that drives brand equity.

So it is important for marketers to understand how brand knowledge exists in the consumer memory.

The Associative Network Memory Model

Brand Knowledge

Brand knowledge Has two components Brand Awareness and Brand Image

Sources of Brand Equity

Brand Awareness

Brand Knowledge

Brand Image

Brand Knowledge Two components

Brand Awareness Consumers ability to identify the brand under different conditions. Brand Image Perceptions about a brand as reflected by the brand associations held in consumer memory.

Brand Awareness

Brand Recognition

Brand Awareness
Brand Recall

Brand Recognition Aided Awareness

Brand Awareness

Consumers ability to confirm prior exposure to the brand when given the brand as a cue (visual or verbal)

Brand Recall Un- Aided Awareness 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

Establishing Brand Awareness

In short Brand awareness is created by increasing the familiarity of the Brand though brand Exposure

(for Recognition)

and
strong association with the appropriate product category or other relevant purchase or consumption cues

(for Recall)

Building Brand Awareness

Brand Recognition
Repeated exposure more consumer Experiences

Brand recall
Link brand to Memory Product Category Purchase, Usage, Consumption Situations

Salience Dimensions
Depth of brand awareness
Ease of recognition & recall Strength & clarity of category membership

Breadth of brand awareness

Purchase consideration Consumption consideration

Brand Image

Sources of Brand Equity

Brand

Recognition
Brand Awareness

Brand Recall

Brand Knowledge Types of Brand Associations Brand Image Favorability, Strength, and Uniqueness of Brand Association

Sources of Brand Equity

Brand

Recognition
Brand Awareness

Product-Related (e.g., color, size, design features)

Brand Recall

Attributes
Non-Product-Related (e.g., Price, Packaging, User and Usage Imagery)

Brand Knowledge Types of Brand Associations Brand Image Favorability, Strength, and Uniqueness of Brand Association Benefits

Functional Symbolic

Overall Evaluation (Attitude)

Experiential

Brand Image What does it reflect ? The linking of strong, favorable and unique associations to the brand in memory

Brand Associations
can be created in a variety of ways direct experience; information from the firm or other commercial or nonpartisan sources, word of mouth; by assumption or inferences from the brand itself, from the identification of the brand with a company, country, channel of distribution, or some particular person, place, or event.

Strength of the Association

Consumers brand experience Connections to the brand nodes Function of quantity and quality of processing of information Brand attributes and benefits Personal experience, word of mouth or other non commercial sources of information

Favorability
This is created by convincing customers that the brand possesses relevant attributes and benefits that satisfy their needs and wants. It requires desirable association to be

Relevant Distinctive Believable

Favorability of the Association

Desirable
Relevant Distinctive Believable

Deliverable
Product performance Communication of Sustainability of

Deliverability
The actual or potential ability of the product to perform Current or future prospects of communicating that performance Sustainability of actual and communicated performance over time.

Uniqueness of the Association

Brand associations may not be shared with other competing brands. Essence of brand position is the SCA or USP Product related or non product related B/A user type or users situation The concept of POP and POD No reason why not.

The Associative Network Memory Model

The Associative Network Memory Model

Views memory as consisting of network of nodes and connecting links.

Nodes represent stored information or concept and links represent the strength of association between this information or concepts.

Brand knowledge is conceptualized as consisting of Nodes and variety of associations linked to it.

Brand Association
Prestige Status

Symbol

Classic
Luxurious High

Class