CHAPTER: 3

Brand Resonance and the

Brand Value Chain
PART I-Developing a Brand Strategy
Chapter 2 Customer-based Brand Equity and Brand Positioning
Chapter 3 Brand Resonance and the Brand Value Chain

PART II-Designing and Implementing Brand Marketing Programs

Chapter 4 Choosing Brand Elements to Build Brand Equity
Chapter 5 Designing Marketing Programs to Build Brand Equity
Chapter 6 Integrating Marketing Communications to Build Brand Equity
Chapter 7 Branding in the Digital Era
Chapter 8 Leveraging Secondary Brand Associations to Build Brand Equity

PART III- Measuring and Interpreting Brand Performance

Chapter 9 Developing a Brand Equity Measurement and Management
System
Chapter 10 Measuring Sources of Brand Equity: Capturing Customer Mind-
Set
Chapter 11 Measuring Outcomes of Brand Equity: Capturing Market
Performance

PART IV- Growing and Sustaining Brand Equity

Chapter 12 Designing and Implementing Branding Architecture Strategies
Chapter 13 Introducing and Naming New Products and Brand Extensions
Chapter 14 Managing Brands Over Time
Chapter 15 Managing Brands Over Geographic Boundaries and Market
Segments
 Learning Objectives

• Define brand resonance.

• Describe the steps in building brand resonance.

• Define the brand value chain.

• Identify the stages in the brand value chain.

Customer-Based Brand Equity Pyramid
https://www.youtube.com/watch?v=tkfq__rdoD0
 Brand Salience

• Measures various aspects of the awareness of the

brand:
• To what extent is the brand top-of-mind and
easily recalled or recognized.

• What types of cues or reminders are

necessary?

• How pervasive is this brand awareness?

 Brand Salience
Breadth and depth of awareness
• Depth - Ease with which brand elements can be
recalled.

• Breadth - Range of purchase and usage situations in

which the brand element comes to mind.

1. Consumers should think of Tropicana whenever

they think of orange juice, particularly when they
are considering buying orange juice.

2. Consumers, especially when seeking a “tasty but

healthy” beverage would think of Tropicana
whenever they were deciding which type of
beverage to drink.
 Brand Salience
• Product category structure:
• How product categories are organized in the
consumer’s memory.

• In consumers’ minds, a product hierarchy often

exists, with product class information at the highest
level, product category information at the second-
highest level, product type information at the next
level, and brand information at the lowest level.

• The product hierarchy shows us that not only the

depth of awareness matters but also the breadth.

• In other words, the brand must not only be top-of-

mind and have sufficient “mind share,” but it must
also do so at the right times and places.
 Brand Performance
Describes how well the brand:
• Meets customers’ more functional needs.

• Rate on objective assessments of quality.

• Satisfiesutilitarian, aesthetic, and economic

customer needs and wants in the product or
service category .
 Brand Performance
• Five important attributes and benefits that underlie
brand performance:
• Primary ingredients and supplementary features.

• Product reliability, durability, and serviceability.

• Service effectiveness, efficiency, and empathy

• Style and design

• Price
 Brand Imagery
• Consumers can form imagery associations directly
from their own experience or indirectly through
advertising or by some other source of information,
such as word of mouth.

User profile/imagery
• Type of person or organization who uses the brand.

• Consumers may base associations of a typical or

idealized brand user on descriptive demographic
factors or more abstract psychographic factors. Dove,
Gillette, BMW etc.
 Brand Imagery
Purchase and usage situations/imagery
• Associations that tell consumers under what
conditions or situations they can or should buy and
use the brand.

• Associations to a typical usage situation can relate to

the time to use the brand, location, and type of
activity during which to use the brand. Archies,
Domino’s.

• Domino’s was known for delivery, Little Caesar for

takeout, and Pizza Hut for dine-in service.
 Brand Imagery
Brand personality and values
• Through consumer experience or marketing
activities, brands may take on personality traits.
• Five dimensions of brand personality:
• Sincerity (down-to-earth, honest, wholesome,
and cheerful)-Bata
• Excitement (daring, spirited, imaginative, and up-
to-date)- Mountain Dew
• Competence (reliable, intelligent, successful)-
Microsoft
• Sophistication (upper class and charming)- Apple
• Ruggedness (outdoorsy and tough)- Woodland
 Brand Imagery

Brand history, heritage and experiences

• Brands association with its past and with certain
noteworthy events in the brand’s history. Rolex,
Cadbury, Colgate.
 Brand Judgements

Brand quality
• Specific attributes and benefits of the brand that
help develop consumer attitudes toward the brand.

• Important consumer attitudes relate to its perceived

quality and to customer value and satisfaction.

• Perceived quality measures are inherent in many

approaches to brand equity. Grand Hyatt hotels
 Brand Judgements

Brand credibility
• Extent to which customers see the brand as
credible in terms of perceived:
• Expertise - Competence, innovation, and ability
to lead.
• Trustworthiness - Dependability and keeping
customer interests in mind.
• Likability - Fun, interesting, and worth spending
time with.
-TATA
 Brand Judgements
Brand consideration
• How personally relevant customers find the brand.
Example-Charmin.

Brand superiority
• Extent to which customers view the brand as unique
and better than other brands.

• Depends to a great degree on the number and

nature of unique brand associations that make up
the brand image. Netflix.
 Brand Feelings
Customers’ emotional responses and reactions to
the brand.

Relate to the social currency evoked by the brand.

Feelings can be:

• Experiential and immediate, increasing in level of
intensity.
• Private and enduring, increasing in level of gravity.

• https://www.youtube.com/watch?v=oRdbvGgPPiw
(Corona-Extra overtook Heineken)
 Brand Feelings
• Warmth - Soothing feelings that make consumers
feel a sense of calm or peacefulness. Quaker
oatmeal

• Fun - Upbeat feelings that make consumers feel

amused, light-hearted, joyous, playful, and
cheerful. Disney

• Excitement - Ability of the brand to make

consumers feel energized and experience something
special. MTV
 Brand Feelings
• Security - Ability of a brand to produce a feeling of
safety, comfort, and self-assurance. Godrej Locks

• Social approval - Gives consumers a belief that

others look favourably on their appearance and
behavior. Sony

• Self-respect - Brand makes consumers feel better

about themselves. Giorgio Armani suits

• The first three types of feelings are experiential and

immediate, increasing in level of intensity.
 Brand Resonance
It is characterized in terms of intensity, or depth
of the psychological bond that customer have with
the brand, as well as the level of activity
engendered by this loyalty.

• Behavioral loyalty- Gauged in terms of repeat

purchases and the share of category volume
attributed to the brand.

• Attitudinalattachment - Strong personal

attachment with product. Xerox
 Brand Resonance
• Sense of community - Sense of affiliation with
other people associated with the brand. Harley
Davidson, Apple

• Active engagement - The strongest affirmation of

brand loyalty occurs when customers are engaged,
or willing to invest time, energy, money, or other
resources in the brand beyond those expended
during purchase or consumption of the brand.
 Brand Value Chain
• 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.

• The brand value chain provides insights to support

brand managers, chief marketing officers, managing
directors, and chief executive officers, all of whom
may need different types of information.

• It is developed in line with brand resonance to better

understand the ROI, of marketing investment.
Brand Value Chain Model
 Brand Value Chain Model
Marketing Program Investment-
Marketing activities, like product research, development, and
design; trade or intermediary support; marketing
communications; and employee training.

Program Quality Multiplier- (DRIVE)

1. Distinctiveness: How unique is the marketing program?
2. Relevance: How meaningful is the marketing program to
customers?
3. Integrated: How well integrated is the marketing program at
one point in time and over time?
4. Value: How much short-run and long-run value does the
marketing program create?
5. Excellence: Is the individual marketing activity designed to
satisfy the highest standards?
https://www.youtube.com/watch?v=OLSsswr6z9Y
 Brand Value Chain Model
Customer Mind-Set- (5As)
1. Brand Awareness: The extent and ease with which customers
recall and recognize the brand and can identify the products
and services with which it is associated. (SALIANCE)

2. Brand Associations: The strength, favorability, and uniqueness of

perceived attributes and benefits for the brand. (PERF. & IMAGE)

3. Brand Attitudes: Overall evaluations of the brand in terms of its

quality and the satisfaction it generates. (JUDGEMENT & FEEL)

4. Brand Attachment: The degree of loyalty the customer feels

toward the brand. (RESONANCE)

5. Brand Activity: The extent to which customers use the brand,

talk to others about the brand, seek out brand information,
promotions, and events, and so on. (RESONANCE).
 Brand Value Chain Model
Customer Multiplier.
1. Competitive superiority: How effective are the
marketing investments of competing brands?

2. Channel and other intermediary support: How much

brand reinforcement and selling effort is being put
forth by various marketing partners?

3. Customer size and profile: How many and what

types of customers are attracted to the brand? Are
they profitable?
 Brand Value Chain Model
Market Performance:
• The first two relate to price premiums and price
elasticities.

• How much extra are customers willing to pay for a

comparable product because of its brand?

• How much does their demand increase or decrease

when the price rises or falls?

• A third outcome is market share, which measures

the success of the marketing program in driving
brand sales.
 Brand Value Chain Model
Market Performance:
• The fourth outcome is brand expansion, the success
of the brand in supporting line and category
extensions and new-product launches into related
categories.

• The fifth outcome is cost structure or, more

specifically, reduced marketing program expenditures
thanks to the prevailing customer mind-set.

. When combined, these five outcomes lead to brand

profitability, the sixth outcome.
 Brand Value Chain Model

Market Multiplier:
Market dynamics: What are the dynamics of the financial
markets as a whole (interest rates, investor sentiment, supply
of capital)?

• Growth potential: What is the growth potential or prospects for

the brand and the industry in which it operates?

• Risk profile: What is the risk profile for the brand? How
vulnerable is the brand to those facilitating and inhibiting
factors?

• Brand contribution: How important is the brand to the firm’s

brand portfolio?
 Brand Value Chain Model
Shareholder Value:
• Based on all available current and forecasted
information about a brand, as well as many other
considerations, the financial marketplace formulates
opinions and assessments that have very direct
financial implications for the brand value.

• Three particularly important indicators are the stock

price, the price/earnings multiple, and overall market
capitalization for the firm.
Thank you