BUSS454

Product and Brand Management

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

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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

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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

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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

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Brand Exploratory

• Steps for brand exploratory:

• Study prior research.
• Interview internal personnel.
• Conduct additional research.

BUSS454 Spring 2021 Tony Garrett

• 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.

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• 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.

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• 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.

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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

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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

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How to Conduct Tracking Studies

• Who to track (target market)

• When and where to track (how frequently)
• How to interpret brand tracking

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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

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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

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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

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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
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Brand Equity Responsibilities

• Overseeing Brand Equity

• Organizational Design and Structures
• Managing Marketing Partners

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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

BUSS454 Spring 2021 Tony Garrett