Figure 3.

1- Customer-Based Brand
Equity Pyramid
 Brand Salience

Breadth and Depth of Awareness

Product Category Structure

Strategic Implications
 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
 Brand Imagery
• User profile/imagery
• Purchase and usage situations/imagery
• Brand personality and values
• Brand history, heritage, and experiences
 Brand Judgements
 Quality
 Credibility
 Consideration
 Superiority
 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
 Brand Resonance
• Behavioral loyalty
• Attitudinal attachment
• Sense of community
• Active engagement
 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
Figure 3.2 - Subdimensions of Brand
Building Blocks
Figure 3.5 - Brand Value Chain
Sources of Brand Equity

Brand Awareness

Brand Image
 Brand Image
Strength of • More deeply a person thinks about product
information and relates it to existing brand
Brand knowledge, stronger is the resulting brand
Associations association

Favorability of • Is higher when a brand possesses relevant

Brand attributes and benefits that satisfy
Associations consumer needs and wants

Uniqueness of • “Unique selling proposition” of the product

Brand • Provides brands with sustainable
competitive advantage
Associations
 Role of CLV in branding and its
relationship,
Customer lifetime value is important because, the
higher the number, the greater the profits. You'll always
have to spend money to acquire new customers and to
retain existing ones, but the former costs five times as
much. When you know your customer lifetime value,
you can improve it.

CLV= Profit generated by the customer each year $1,000 X

Number of years that they are a customer of the brand 5 years-
Cost to acquire the customer $2000
= $3000.
 Brand Knowledge
• Key to create brand equity
– Creates the differential effect that drives brand
equity
• Marketers need an insightful way to represent
how brand knowledge exists in consumer
memory
Figure 15.1 - Summary of Brand Knowledge
 Associative Network Memory Model

• Views memory as a network of nodes and

connecting links
– Nodes - Represent stored information or concepts
– Links - Represent the strength of association
between the nodes
• Brand associations are informational nodes
linked to the brand node in memory
Effects on Existing Brand Knowledge

• Cognitive consistency - What is true for the

new association must be true for the brand
Figure 7.2- Understanding Transfer of
Brand Knowledge
 Company
• Existing brands can be related to a corporate
or family brand
• A corporate or family brand can be a source of
brand equity
• Leveraging a corporate brand may or may not
be useful
 Points of Parity (POP) and
Points of differences (POD)
Point of Parity  a particular dimension or
attribute or a brand which a group of consumers
believe that is ‘good enough’ or meet their basic
expectations.

Point of Difference  A particular attribute or

dimension of a brand which a group of consumers
likes and perceives as the uniqueness of the brand.

20
 What is Brand Identity?
• A promise that gets kept consistently
• Defines your organization
• It creates a personality and a life for
your products/services
• A unique and consistent look, feel, tone
and voice for all communications
• Conveys-at a-glance the distinctive
attributes of your organization
• Over time, it builds awareness of and
an attitude towards your organization
 Point of Differences
Other names:
• Competitive Points of Parity
• Unique Selling Point

22
What is Brand Identity?
• Strengthens the impact of all messages
• Paves the way for new customer
relationships
• Provides employees with a greater
sense of commitment
• It’s essential to your success in the
marketplace
• No business is too small and no
product too generic to develop a brand
identity
 THE BRAND IMAGE TRAP
• Brand image is how customers and others
perceive the brand
• A brand image trap results when efforts to
go beyond the brand image is lacking.
“A brand identity is to brand strategy what
"strategic intent" is to a business strategy. Strategic
intent involves an obsession with winning, real
innovation, stretching the current strategy, and a
forward-looking, dynamic perspective; it is very
different from accepting or even refining past
strategy. Similarly, a brand identity should not
accept existing perceptions, but instead should be
willing to consider creating changes.
What’s going on here?
 More than a Product
BRAND
Organizational
Associations Brand Personality

Symbols
PRODUCT
Country of Scope
Origin Attributes
Quality
Uses Brand-customer
Relationships

User Imagery
Emotional
Self-Expressive Benefits
Benfits
 Brand Identity Planning
Extended

core

Brand As Product Brand as Brand As Brand As

Organization Person Symbol
1. Product Scope
1. Organizational 1. Personality 1. Visual
2. Product
Attributes Imagery and
Attributes 2. Brand-
metaphors
2. Local vs. customer
3. Quality/Value
Global relationship 2. Brand
4. Uses Hreritage
5. Users
6. Country
Brand Building
 Marketing Vehicles
• Brochures
• Print and e-newsletters
• Website, Screen savers
• Events
• Banner ads
• Print ads
• Public relations
• Direct Mail
• Flyers and posters
• Transit media
• Power point presentations
• Exhibit booth/signage
• CD/multimedia
• Facilities
 Determine the purpose
Each marketing vehicle requires a unique tweak of the
brand to fit the medium.
• Brochures need more marketing copy and detail
• Websites are a quick read, interactive with the audience
• Ads are mini billboards, only the most critical info required
• Posters are colorful and entertaining
• Newsletters are informational, with regular features
• Exhibit booths are backdrops
• Multimedia is entertainment/educational
Kapferer’s Brand Identity Prism
Model
• Physique-A brand, first and foremost, should
have ‘physique’ with physical specifications
and qualities. It is made of a combination of
either salient objective features. Coca Cola in
all its communications lays special emphasis
on the ‘Coke Bottle’ and how it looks. For
markets where Coke entered for the first
time, it always starts with the traditional
Coke bottle. In fact to no surprise, Coke cans
also have a outline of the iconic coke bottle.
Therefore, the physical appearance of the
brand remains intact.
• Brand Personality-
A brand has a personality. By
communicating, it gradually builds up
character. The way in which it speaks of its
products or services shows what kind of
person it would be if it were
human. Mountain Dew, a drink from
Pepsico, promises thrill and adventure and
therefore always loops in celebrities who are
seen close to sports.
• Brand Culture-
A Brand should have its own culture and
brands with strong culture end up being
‘cult’. Both product and communication
should reflect this culture. Royal Enfield
motorcycles in India have a cult following as
the brand has a very strong culture. Though
started slow but the brand is the fastest
growing in the motorcycle industry in India
both in terms of following as well as market
share.
• Relationship-
Brands are often at the crux of transactions
and exchanges between people. This is
particularly true of brands in the service
sector and also of retailers. Once the
consumers build a relationship with the
brand,Nike bears a Greek name that relates it
to specific cultural values, to the Olympic
Games and to the glorification of the human
body. Nike suggests also a peculiar
relationship, based on provocation: it
encourages us to let loose (‘just do it’).
• Reflection-
A brand is a customer reflection. When asked for
their views on certain car brands, people
immediately answer in terms of the brand’s
perceived client type: that’s a brand for young
people! for fathers! for show-offs! for old folks!
A majority of apparel brands portray a model in the
age group of not who they are targeting, but the age
group which the consumer thinks he/she belongs on
buying that brand.
• Self Image-
A brand speaks to our self-image. If
reflection is the target’s outward mirror (they
are …), self-image is the target’s own
internal mirror.
• BMW India launched a campaign for people
who see themselves driving a BMW, no
matter now or future. The campaign went on
TV as Don’t Postpone Joy. Below is the TVC
asking to drive a BMW sooner.
 Determining the positioning strategy

• Identify the competitors

• Determine how the competitors are perceived and

evaluated

• Determine the competitors position

• Analyze the customers

• Select the position

• Monitor the position

US Mint
Keller and Heckman LLP
Linklaters, LLP
Global Services
Johns Hopkins University
Johns Hopkins University
 Keys to building successful brands
• Find the right advertising/branding agency
• Top management must be committed to this effort
• Assign one point person to work with the agency
• Do not make decisions by committee
• Keep brand consistent internally and externally
• Don’t rush the process-make sure you have enough time budgeted
• Give the brand time to work
• Create a brand style guide and give to every employee
• Refresh/update brand after a few years
 What a good brand does
• Strengthens employees loyalty
• Attracts clients/customers
• Keeps current relationships strong
• Builds confidence
• Builds feelings of security and trust
• Creates a memorable, positive
experience
 Positioning
What is a Position?

A position is the way a

firm’s product, brand, or
organization is viewed
relative to the competition
by current and prospective
customers.
 So what is Positioning?
Firm creating and maintaining in the
minds of a target market ‘a distinct
Image’ relative to competing products

THREE STEPS

Select position concept

Design the feature that

conveys position
Coordinate the marketing mix
to convey position
How do you Position a Product?
STEP 1

How do you select the positioning concept?

Determine what is important to the

target market and how its members
view the competing products

Perceptual Map
 Straddle Positioning in branding
• Straddle positioning is the kind of positioning where the
brands are looking for position itself in two categories
simultaneously. For example in 1980s when BMW entered the
U.S. market they gave a significant competitive push in the
market.
How do you Position a Product?..Contd
STEP 2

Design the feature that most

effectively conveys the position

Brand name
A Slogan
Appearance, or any other
•features of the Product,
•the place where it is sold,
•the appearance of the employees, and
in many other ways
 Establishing brand Positioning
• Target market
• Points of parity and Points of Difference

55
 Frame of Reference
• Frame of reference is the setting around the
product. It defines the competitors and
target consumers. For example, Tide always
positioned with Rin, Ariel with Surf.
How do you Position a Product?..Contd
STEP 3

Coordinate the Marketing-mix

to convey a consistent position

What is repositioning?

When the position of any product is

eroded, or needs to be changed due to
competition, and the firm wants to re-
establish its attractiveness in its market
it is engaging in repositioning.
 Brand Mantra

Designing a Brand Mantra

Implementing a Brand
Mantra
Brand Mantra is a brand promise
 Positioning Guidelines
1. Defining and communicating the
competitive frame of reference
2. Choosing points of parity and points of
differences.
3. Establishing points of parity and points of
differences.
4. Updating positioning over time

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 POSITIONING STRATEGIES
• Using product characteristics

• Positioning by price and quality

• Positioning by use or application

• Positioning by product user

• Positioning by product class

• Positioning by cultural symbols

• Positioning by competitor
 To Sum up...
• A good brand mantra should:
– Communicate the category of the business to set
the brand boundaries and clarify what is unique
about the brand
– Be simple, crisp, and vivid
– Stake out ground that is personally meaningful
and relevant to as many employees as possible