The document discusses developing a brand equity measurement and management system. It describes conducting brand audits which include a brand inventory to understand a brand from the firm's perspective and a brand exploratory to understand consumer perception. Tracking studies are used to routinely measure brand performance over time. A brand equity management system formalizes how a company measures and uses brand equity, including a brand equity charter to define the brand strategy and a brand equity report to communicate performance.
The document discusses developing a brand equity measurement and management system. It describes conducting brand audits which include a brand inventory to understand a brand from the firm's perspective and a brand exploratory to understand consumer perception. Tracking studies are used to routinely measure brand performance over time. A brand equity management system formalizes how a company measures and uses brand equity, including a brand equity charter to define the brand strategy and a brand equity report to communicate performance.
The document discusses developing a brand equity measurement and management system. It describes conducting brand audits which include a brand inventory to understand a brand from the firm's perspective and a brand exploratory to understand consumer perception. Tracking studies are used to routinely measure brand performance over time. A brand equity management system formalizes how a company measures and uses brand equity, including a brand equity charter to define the brand strategy and a brand equity report to communicate performance.
The document discusses developing a brand equity measurement and management system. It describes conducting brand audits which include a brand inventory to understand a brand from the firm's perspective and a brand exploratory to understand consumer perception. Tracking studies are used to routinely measure brand performance over time. A brand equity management system formalizes how a company measures and uses brand equity, including a brand equity charter to define the brand strategy and a brand equity report to communicate performance.
Developing a Brand Equity Measurement and Management System
(Chapter 9)
BUSS454 Spring 2021 Tony Garrett
Part 4: Measuring and Interpreting Brand Performance
• Developing a Brand Equity Measurement and
Management System (c9) • Measuring Sources of Brand Equity: Capturing Customer Mindset (c10) • Measuring Outcomes of Brand Equity: Capturing Market Performance (c11)
BUSS454 Spring 2021 Tony Garrett
Learning Objectives
• Describe the new accountability in terms of ROMI
• Outline the two steps in conducting a brand audit • Describe how to design, conduct, and interpret a tracking study • Identify the steps in implementing a brand equity management system
BUSS454 Spring 2021 Tony Garrett
The New Accountability
• Virtually every marketing dollar spent today must be
justified as both effective and efficient in terms of “return of marketing investment” (ROMI). • Some observers believe that up to 70% (or even more) of marketing expenditures may be devoted to programs and activities that cannot be linked to short-term incremental profits, but yet can be seen as improving brand equity.
BUSS454 Spring 2021 Tony Garrett
Brand Equity Measurement System
• A set of research procedures that is designed to provide
timely, accurate, and actionable information for marketers so that they can make the best possible tactical decisions in the short run and strategic decisions in the long run
BUSS454 Spring 2021 Tony Garrett
Brand Equity Measurement System
• Conducting brand audits
• Developing tracking procedures • Designing a brand equity management system
BUSS454 Spring 2021 Tony Garrett
Brand Audit
• Externally, consumer-focused assessment
• A comprehensive examination of a brand involving activities to assess the health of the brand, uncover its sources of equity, and suggest ways to improve and leverage that equity • It includes brand vision, mission, promise, values, position, personality, and performance
BUSS454 Spring 2021 Tony Garrett
Importance of Brand Audits
• Understand sources of brand equity
• Firm perspective • Consumer perspective • Set strategic direction for the brand • Recommend marketing programs to maximize long-term brand equity
BUSS454 Spring 2021 Tony Garrett
Brand Audit Steps
• Brand inventory (supply side)
• Brand exploratory (demand side)
BUSS454 Spring 2021 Tony Garrett
Brand Inventory
• Comprehensive profile of how all the products and
services of a company are marketed and branded • Profiling requires marketers to catalogue: • Visual and written form for each product or service sold • The inherent product attributes or characteristics of the brand • Pricing, communications, and distribution policies
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Brand Inventory (Cont.)
• Suggests the bases for positioning the brand
• Offers insights to how brand equity may be better managed • Assesses consistency in message among activities, brand extensions, and sub-brands in order to avoid redundancies, overlaps, and consumer confusion
BUSS454 Spring 2021 Tony Garrett
Brand Exploratory
• Provides detailed information as to how consumers
perceive the brand: • Awareness • Favorability • Uniqueness of associations • Helps identify sources of customer-based brand equity • Uncovers knowledge structures for the core brand as well as its competitors
• Preliminary activities • A number of prior research studies may exist and be relevant. • It is useful to interview internal personnel to gain an understanding of their beliefs about consumer perceptions for the brand and competitive brands. • Additional research is often required to better understand how customers shop for and use different brands and what they think and feel about them.
BUSS454 Spring 2021 Tony Garrett
• Interpreting qualitative research • Qualitative research should: • Vary in direction and depth as well as in technique. • Provide accurate interpretation. • Ask specific questions, so as to narrow the range of information given by the respondents. • Ask open ended questions for freer and less constrained responses.
BUSS454 Spring 2021 Tony Garrett
• Mental maps and core brand associations • Mental map: Accurately portrays in detail all salient brand associations and responses for a particular target market. • Core brand associations: Abstract associations that characterize the 5 to 10 most important aspects or dimensions of a brand.
BUSS454 Spring 2021 Tony Garrett
John, Loken, Kim and Monga 2006
BUSS454 Spring 2021 Tony Garrett
John, Loken, Kim and Monga 2006
BUSS454 Spring 2021 Tony Garrett
• Conducting quantitative research • Assess all potentially salient associations identified by the qualitative research phase according to their strength, favorability, and uniqueness. • Examine both specific brand beliefs and overall attitudes and behaviors to reveal potential sources and outcomes of brand equity. • Assess the depth and breadth of brand awareness by employing various cues. • Conduct similar types of research for competitors to better understand their sources of brand equity and how they compare with the target brand.
BUSS454 Spring 2021 Tony Garrett
Brand Positioning and the Supporting Marketing Program
• Ideal brand positioning aims to achieve congruence
between: • What customers currently believe about the brand • What customers will value in the brand • What the firm is currently saying about the brand • Where the firm would like to take the brand
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John Roberts’s Brand Positioning Considerations
BUSS454 Spring 2021 Tony Garrett
Designing Brand Tracking Studies
• Tracking studies involve information collected from
consumers on a routine basis over time • Often done on a “continuous” basis • Provide descriptive and diagnostic information
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What to Track
• Customize tracking surveys to address the specific issues
faced by the brand • Product-brand tracking • Corporate or family brand tracking • Global tracking
BUSS454 Spring 2021 Tony Garrett
What to Track
• Customize tracking surveys to address the specific issues
faced by the brand • Product-brand tracking • Brand awareness and image • Associations that distinguish it from the competition • Look at potential sources of brand equity • Strength, favorability, and uniqueness (in this order) • Key measures include: functional performance, convenience and ease of access the product or service, Brand personality
BUSS454 Spring 2021 Tony Garrett
How to Conduct Tracking Studies
• Who to track (target market)
• When and where to track (how frequently) • How to interpret brand tracking
BUSS454 Spring 2021 Tony Garrett
The Brand Value Chain
• Broader perspective than just the CBBE model
• The brand value chain is a structured approach to assessing the sources and outcomes of brand equity and the manner by which marketing activities create brand value.
BUSS454 Spring 2021 Tony Garrett
Brand Value Chain
BUSS454 Spring 2021 Tony Garrett
BUSS454 Spring 2021 Tony Garrett BUSS454 Spring 2021 Tony Garrett Brand Equity Management System
• A brand equity management system is a set of
organizational processes designed to improve the understanding and use of the brand equity concept within a firm: • Brand equity charter • Brand equity report • Brand equity responsibilities
BUSS454 Spring 2021 Tony Garrett
Brand Charter
• Formalizes the company view of brand equity into a
document • Provides relevant guidelines to marketing managers and key marketing partners • Should be updated on an annual basis to provide decision makers with a current brand profile
BUSS454 Spring 2021 Tony Garrett
Brand Equity Charter Components
• Define the firm’s view of the brand equity
• Describe the scope of the key brands • Specify actual and desired equity for the brand • Explain how brand equity is measured • Suggest how brand equity should be measured • Outline how marketing programs should be devised • Specify the proper treatment for the brand in terms of trademark usage, packaging, and communication
BUSS454 Spring 2021 Tony Garrett
Brand Equity Report
• Assembles the results of the tracking survey and other
relevant performance measures • To be developed monthly, quarterly, or annually • Provides descriptive information as to what is happening with the brand as well as diagnostic information on why it is happening Dashboards • Provides comprehensive but actionable summaries of brand-related information BUSS454 Spring 2021 Tony Garrett Brand Equity Responsibilities
• Overseeing Brand Equity
• Organizational Design and Structures • Managing Marketing Partners
BUSS454 Spring 2021 Tony Garrett
To Sum up...
• The company view of brand equity should be formalized
into a document • The results of the tracking surveys should be assembled into a brand equity report • Senior management must be assigned to oversee brand equity within the organization