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Strategic Brand Management: Building,

Measuring, and Managing Brand Equity


Fifth Edition, Global Edition

Chapter 3
Brand Resonance and
the Brand Value Chain

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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
• Contrast brand equity and customer equity

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Building A Strong Brand: The Four
Steps of Brand Building
• Brand salience
• Brand performance
• Brand imagery
• Brand judgments
• Brand feelings
• Brand resonance
• Brand-building implications

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Brand Salience

Breadth and Depth of


Awareness

Product Category Structure

Strategic Implications

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Brand Performance
 Describes how well the brand:
 Meets customers’ more functional needs
 Rate on objective assessments of quality

 Satisfies utilitarian, aesthetic, and economic customer


needs and wants in the product or service category

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Brand Imagery
• User profile/imagery
• Purchase and usage situations/imagery
• Brand personality and values
• Brand history, heritage, and experiences

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Purchase and usage situations

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Nostalgia/Memories

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 Sincerity

Examples Brand Personality  Excitement

 Competence

 Sophistication

 Ruggedness

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Examples Brand Personality
 Sincerity

 Excitement

 Competence

 Sophistication

 Ruggedness

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Examples Brand Personality

 Sincerity

 Excitement

 Competence

 Sophistication

 Ruggedness

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Examples Brand Personality

 Sincerity

 Excitement

 Competence

 Sophistication

 Ruggedness

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Brand Judgements
 Quality
 Credibility
 Consideration
 Superiority

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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

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Copyright © 2020 Pearson Education Ltd. All Rights Reserved
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Brand Resonance
• Behavioral loyalty
• Attitudinal attachment
• Sense of community
• Active engagement

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Brand Resonance Pyramid
4.
RELATIONSHIPS
=
What about you
RESONANCE and me?
3.
RESPONSE
=

JUDGMENT FEELINGS What about


S you?

2.
MEANING
=
What are
PERFORMANCE IMAGERY you?
1.
IDENTITY
=
Who are
SALIENCE
you?

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Sub-Dimensions of CBBE
Pyramid
LOYALTY
ATTACHMENT
COMMUNITY
ENGAGEMENT

WARMTH
QUALITY FUN
CREDIBILITY EXCITEMENT
CONSIDERATIO SECURITY
N SOCIAL
SUPERIORITY APPROVAL
SELF-RESPECT

PRIMARY USER PROFILES


CHARACTERISTICS & PURCHASE &
SECONDARY FEATURES USAGE
PRODUCT RELIABILITY, SITUATIONS
DURABILITY & PERSONALITY &
SERVICEABILITY VALUES
SERVICE EFFECTIVENESS, HISTORY,
EFFICIENCY & HERITAGE
EMPATHY &
STYLE AND DESIGN EXPERIENCES
PRICE CATEGORY IDENTIFICATION
NEEDS SATISFIED

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Resonance
• Intense Active Loyalty
•Apple Lifestyle & Communities
• Apple Collectors/ Aficionados

Judgments
• High Quality (Precision &
Engineering) Feelings
• Innovation • Cutting Edge • Social Status • Customer
Technology Satisfaction • Feeling Proud,
• Quality at the premium price Comfortable, Satisfied
• Product Centric
Performance
• Greater Support for Multi Tasking
Imagery
•Smooth User Experience
• Human Silhouette • White
• User Friendly • Speed
• Exclusivity • Shell Shape •
Performance
Translucent Pearl White
• Unique Operating System • High
•Steve Jobs
Price
• Serviceability • Long Lasting

Salience
APPLE – THINK DIFFERENT
Ipod, Macbook, Ipad, I Tunes

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The Brand Value
Chain

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Value stages
• Marketing Program Investment
– Any marketing investment that can contribute to the value of the brand.
– Its success is enhances by the multipliers

▪ Clarity: How understandable is the program


▪ Relevance: How meaningful is the program
▪ Distinctiveness: How unique is the program
▪ Consistency: How cohesive or integrated is the program

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Customer Mind-set

 Awareness: The extent to which customers recall and


recognize the brand.

 Associations: Strength, favourability and uniqueness of


perceived attributes of the brand

 Attitudes: Overall evaluations of the brand

 Attachments: Degree of loyalty customers feel towards a


brand
Adherence
Addiction

 Activity: Extent to which customers use the brand, talk


about it, seek out information, promotions and so on

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Customer Mind-
29

Set
Awareness

Associations (Image)

Attitude (Intention;
Acceptability)

Attachment (Loyalty;
Addiction)

Activity (WOM)
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Marketplace conditions
multiplier

• Competitive superiority: how effective are the marketing


investments of competiting brands

• Channel and other intermediary support: how much


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

• Customer size and profile: what types of customers are


attracted to the brand

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Market Performance

 Price Premiums and Elasticity


 How much extra are consumers willing to spend on
the product because of the brand?
 Effect of price on demand

 Market share
 Whether marketing programs are increasing sales

 Brand Expansion
 Brand extensions become easier
 Adds enhancements to revenue systems

 Cost Structure
 Reduced Marketing Expenditure????
All efforts are likely to be more effective
Same effectiveness can be achieved at lower cost

 Brand Profitability

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Investor sentiment multiplier
• Market Dynamics
• Interest rates, supply of capital

• Growth Potential
• Prospects of brand
• Prospects of industry
• PEST

• Risk Profile
• How vulnerable is the brand

• Brand Contribution
• How important is the brand to the firm’s portfolio

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Brand Building Implications
• Customers own the brand
• Don’t take shortcuts with brands
• Brands should have a duality
• Brands should have richness
• Brand resonance provides important focus

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To Sum up...
 Implications of brand value chain
A necessary condition for value creation is a well-funded,
well-designed, and well-implemented marketing program
 Value creation requires more than the initial marketing
investment
 Allows to estimate shareholder value and the investor
sentiment multiplier through investor analysis and
interviews

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