The Brand Management Process

Session 2

Branding Challenges
Customers Brands Media Competition Costs Accountability

Customers

More Informed More Demanding More Specific Less Loyal

Brand Proliferation
New Brands and New Products Line Extensions Brand Extensions Brand Clutter

Line Extensions

Line and Brand Extensions

Media Fragmentation
More Media Non Traditional Communication Word-of-mouth Word-of-click Customized communication

Non Traditional Communication

Competition
More ads, more brands Deregulation Liberalization Low-cost Competitors Private Labels Piracy

Higher Cost

Accountability
Social Controversy Religious Issues Employee Retention Environmental Issues Language

Strategic Brand Management

Strategic brand management involves the design and implementation of marketing programs and activities to build, measure, and manage brand equity. The strategic brand management process is defined as involving four main steps:
1) 2) 3) 4) Identifying and establishing brand positioning and values Planning and implementing brand marketing programs Measuring and interpreting brand performance Growing and sustaining brand equity

Strategic Brand Management Process

STEPS
Identify and Establish Brand Positioning and Values

KEY CONCEPTS
Mental maps Competitive frame of reference Points-of-parity and points-of-difference Core brand values Brand mantra Mixing and matching of brand elements Integrating brand marketing activities Leveraging of secondary associations

Plan and Implement Brand Marketing Programs

Measure and Interpret Brand Performance

Brand Value Chain Brand Audits Brand Tracking Brand equity management system Brand-product matrix Brand portfolios and hierarchies Brand expansion strategies Brand reinforcement and revitalization

Grow and Sustain Brand Equity

Rationale of Customer-Based Brand Equity Model

Basic premise: Power of a brand resides in the minds of customers Challenge is to ensure customers have the right types of experiences with products & services and their marketing programs to create the right brand knowledge structures:
Thoughts Feelings Images Attitudes

Building Customer-Based Brand Equity

The CBBE model was designed to be comprehensive, cohesive, well-grounded, up to date, and actionable. Building a strong brand, according to the CBBE model, can be thought of as a series of steps, where each step is contingent on successfully achieving the previous step.

What is CBBE?
The differential effect that brand knowledge has on consumer response to the marketing of that brand.
Keller, 1993

Customer-Based Brand Equity

Differential effect
Differences in consumer response

Brand knowledge
A result of consumers knowledge about the brand

Consumer response to marketing

Choice of a brand Recall of copy points from an ad Response to a sales promotion Evaluations of a proposed brand extension

Brand Equity as a Bridge

Reflection of past investments in the marketing of a brand Direction for future marketing actions or programs

CBBE Steps
Who are you? (brand identity) What are you? (brand meaning) What do I think or feel about you? (brand responses) What kind of association and how much of a connection would I like to have with you? (brand relationships)

CUSTOMER-BASED BRAND EQUITY PYRAMID

4. RELATIONSHIPS = RESONANCE What about you & me?

3. RESPONSE = JUDGMENTS FEELINGS

What about you?

2. MEANING = PERFORMANCE IMAGERY What are you?

SALIENCE

1. IDENTITY =

Who are you?

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

Breadth of brand awareness

Purchase consideration Consumption consideration

Identify

Exercise
Ex. 1: Lets buy a Laptop Ex. 2: Like to buy a drink?
If I say non alcoholic? If I further say carbonated? If I further say Cola?

Performance Dimensions
Primary characteristics & supplementary features

Product reliability, durability, and serviceability Service effectiveness, efficiency, and empathy
Style and design Price

Imagery Dimensions
User profiles
Demographic & psychographic characteristics (Pulsar Male) Actual (12 lakh yunhi Santrowale nahin bane) or Aspirational (Khoob Jamega Rang) Group perceptions -- popularity

Purchase & usage situations

Type of channel, specific stores, ease of purchase Time, location, and context of usage (Thori si pet puja, kahin bhi, kabhi bhi)

Personality & values

Sincerity, excitement, competence, sophistication, & ruggedness

History, heritage, & experiences

Nostalgia Memories

Imagery (user profile)

Imagery (purchase and usage)

Personality

Imagery (Nostalgia)

Judgment Dimensions
Brand quality
Value Satisfaction

Brand credibility
Expertise Trustworthiness Likeability

Brand consideration
Relevance

Brand superiority
Differentiation

Feelings Dimensions
Warmth Fun Excitement Security Social approval Self-respect

Resonance Dimensions
Behavioral loyalty
Frequency and amount of repeat purchases

Attitudinal attachment
Love brand Proud of brand

Sense of community
Kinship Affiliation

Active engagement
Seek information Join club Visit web site, chat rooms

C o m m u n i t y

W e b s i t e

Customer-Based Brand Equity Model

ConsumerBrand Resonance

INTENSE, ACTIVE LOYALTY

Consumer Judgments

Consumer Feelings

RATIONAL & EMOTIONAL REACTIONS

Brand Performance

Brand Imagery

POINTS-OFPARITY & POINTS-OFDIFFERENCE

Brand Salience

DEEP, BROAD BRAND AWARENESS

Sub-Dimensions of CBBE Pyramid

LOYALTY ATTACHMENT COMMUNITY ENGAGEMENT

QUALITY CREDIBILITY CONSIDERATION SUPERIORITY

WARMTH FUN EXCITEMENT SECURITY SOCIAL APPROVAL SELF-RESPECT

PRIMARY CHARACTERISTICS & SECONDARY FEATURES PRODUCT RELIABILITY, DURABILITY & SERVICEABILITY SERVICE EFFECTIVENESS, EFFICIENCY, & EMPATHY STYLE AND DESIGN PRICE

USER PROFILES PURCHASE & USAGE SITUATIONS PERSONALITY & VALUES HISTORY, HERITAGE, & EXPERIENCES

CATEGORY IDENTIFICATION NEEDS SATISFIED

Thank You, Class