MMKT 444: Product and Brand Management

KUSOM BBA Hons

Spring 2020

You are with: $

Lecture 10: Developing a Brand Equity

Measurement & Management System

© Sujan R Shrestha, KUSOM 2020.

 Brand Equity Measurement System

A brand equity measurement system is 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.

 Brand Equity Measurement System

Implementing this system involves:

Conducting brand audits.
 Brand Inventory
 Brand Exploratory

Designing a brand equity management system

 Brand Equity Charters
 Brand Equity Reports

 Brand Equity Overseers

Developing tracking procedures.

 Conducting the Brand Audit

A brand audit is 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.
A brand audit requires understanding sources of brand
equity from the perspective of both the firm and the
consumer.
Specifically, the brand audit consists of two activities:
Brand Inventory
Brand Exploratory
 Brand Inventory

The purpose of the brand inventory is to provide a complete, up-

to-date profile of how all the products and services sold by a

company are marketed and branded.
For each product, the relevant brand elements must be identified,

as well as the supporting marketing program. This information

should be summarized both visually and verbally.
Although primarily a descriptive exercise, some useful analysis can

be conducted.
Consistency
 Brand Exploratory

The brand exploratory is research activity designed to

identify potential sources of brand equity.
The brand exploratory provides detailed information as to
what consumers think of and feel about the brand.
Although reviewing past studies and interviewing relevant
personnel provides some insights, additional research is
often required.
To allow a broad range of issues to be covered and also
permit those issues to be pursued in-depth, qualitative
research techniques are often employed first.
To provide a more specific assessment of the sources of
brand equity, a follow-up quantitative phase is often
necessary.
 Brand Equity Management System
(Three Steps): Step ONE

1. Formalize company position and philosophy into a Brand

Equity Charter to provide relevant guidelines to marketing
managers.
 Importance of brands and brand equity
 History of brand
 Brand positioning
 Core brand values
 Core brand promise (“brand mantra”)
 POP/POD
 Brand guidelines
 Strategic

 Tactical
 Brand Equity Management System
(Three Steps): Step TWO

2. Assemble results of tracking survey and other relevant

outcome measures into a Brand Equity Report distributed
to managers on regular basis

Provides descriptive information as to what is

happening with a brand as well as diagnostic

information as to why
 Brand Equity Management System
(Three Steps): Step THREE

3. Establish position of VP or Director of Equity

Management to oversee implementation of Brand Equity
Charter and Reports

Ensure that, as much as possible, marketing of the

brand is done in way that reflects the spirit of the

Charter and the substance of the Report
 Developing Tracking Procedures

Tracking studies involve information collected from

consumers on a routine basis over time
Often done on a “continuous” basis
Provide descriptive and diagnostic information
Key decisions
 What to track
 Who(m) to track

 When and where to track

 How to interpret tracking studies

 Understand ROI of
Marketing Investments

Marketing
VALUE Customer Market Shareholder
Program
STAGES Mindset Performance Value
Investment

- Product - Awareness - Price premiums - Stock price

- Communications - Associations - Price elasticities - P/E ratio
- Trade - Attitudes - Market share - Market
- Other - Attachment - Expansion success capitalization
- Activity - Cost savings
- Profitability
 Brand Value Chain

Marketing
Customer Market Shareholder
Program
VALUE Mindset Performance Value
Investment
STAGES

- Product - Awareness - Price premiums - Stock price

- Communications - Associations - Price elasticities - P/E ratio
- Trade - Attitudes - Market share - Market
- Employee - Attachment - Expansion success capitalization
- Other - Activity - Cost structure
- Profitability

FILTERS
 Brand Value Chain

Marketing
Customer Market Shareholder
Program
VALUE Mindset Performance Value
Investment
STAGES

- Product - Awareness - Price premiums - Stock price

- Communications - Associations - Price elasticities - P/E ratio
- Trade - Attitudes - Market share - Market
- Employee - Attachment - Expansion success capitalization
- Other - Activity - Cost structure
- Profitability

Program
FILTERS Multiplier

Clarity
Relevance
Distinctiveness
Consistency
 Brand Value Chain

Marketing
Customer Market Shareholder
Program
VALUE Mindset Performance Value
Investment
STAGES

- Product - Awareness - Price premiums - Stock price

- Communications - Associations - Price elasticities - P/E ratio
- Trade - Attitudes - Market share - Market
- Employee - Attachment - Expansion success capitalization
- Other - Activity - Cost structure
- Profitability

Program Consumer
FILTERS Multiplier Multiplier

Clarity Channel support

Relevance Consumer size & profile
Distinctiveness Competitive reactions
Consistency
 Brand Value Chain

Marketing
Customer Market Shareholder
Program
VALUE Mindset Performance Value
Investment
STAGES

- Product - Awareness - Price premiums - Stock price

- Communications - Associations - Price elasticities - P/E ratio
- Trade - Attitudes - Market share - Market
- Employee - Attachment - Expansion success capitalization
- Other - Activity - Cost structure
- Profitability

Program Consumer Market

FILTERS Multiplier Multiplier Multiplier

Clarity Channel support Market dynamics

Relevance Consumer size & profile Growth potential
Distinctiveness Competitive reactions Risk profile
Consistency Brand contribution
 Start your Brand Audit…

For ANY existing brand – local or multinational brand!

1. Brand Audit Report, analysis and recommendation

in case format… about 20-25 pages…

2. An article… about 1,000 – 1,500 words…

3. A presentation file of the same…

Due: ??