Ch-2: CBBE

Brand Equity?
Customer Based Brand Equity (CBBE)
What makes a brand strong?
How do you build a strong brand?

CBBE model provides a unique point of view

as to what brand equity is and how it should
best be built , measured, and managed

What do different brands mean to

consumers?
How does the brand knowledge of consumers
affect their response to marketing activity?

The basic premise of the CBBE model is that

power of a brand lies in what customers have
learned, felt, seen, and heard about the brand
as a result of their experiences over time
• The differential effect
that brand knowledge
has on consumer
response to the
marketing of that
brand.
There are three ingredients of CB 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 Awareness

Brand Image / Brand salience

Awareness Brand Experiences /

Brand Users

Brand loyalty

. Brand as a reflection of past investments in the
marketing

 Brand as a direction for future marketing

actions or programs
 .
 Brand knowledge is the key to
. creating brand equity.

 Brand knowledge consists of

a brand node in memory with
a variety of associations
linked to it.

It has two components:

• Brand Awareness
• Brand Image
 .
 Brand Awareness
.
It consists of the performance of brand
recognition & brand recall

• Brand Recognition: Ability of consumer to confirm

prior exposure to the brand when given brand as a
cue
• Brand Recall: Ability of consumer to retrieve the
brand from memory when given product category
as cue
 Mention some brands under
Telecommunication category
• Grameenphone
• Robi
• Banglalink
• Teletalk
 Brand Recognition & Recall
• Recognition test • Recall Test
• Here is a list of brand • Please name all the
(ads, logos). Do you brands of
remember having seen beverages/soft
this brand (ad, logo) drinks/carbonated soft
before (yesterday/last drinks you can think of.
month)?
 Assignment 1

Develop Brand Recognition test and

Brand Recall Test for
Telecommunication industry in
Bangladesh.
. Learning advantages
Register the brand in the minds of consumers

 Consideration advantages
Likelihood that the brand will be a member of the
consideration set

 Choice advantages
Affect choices among brands in the consideration
set
 .
.  Increasing the familiarity of the brand through
repeated exposure (for brand recognition)

 Forging strong associations with the

appropriate product category or other
relevant purchase or consumption cues (for
brand recall)
 Brand image
• A positive image is created by marketing
programs that link strong, favorable, &
unique associations to the brand in memory

• Strength of Brand Association

• favorability of Brand Association
• uniqueness of Brand Association
 .
.Brand Associations
• Need to be favorable, strong, and unique
• Marketers should recognize the influence of these
other sources of information by both managing them
as well as possible and by adequately accounting for
them in designing communication strategies.
 Class Activity (Next Class)
Develop a Brand Associations of the
following brands

1.Hilton (Hotel Brand)

2.Cox’s Bazar (Tourist Capital of
Bangladesh)
3.Islamic University, Kushtia
(Educational Institution)
 Marketing Advantages of Strong Brands
• Improved perceptions of product performance
• Greater loyalty
• Less vulnerability to competitive marketing actions
• Less vulnerability to marketing crises
• Larger margins
• More inelastic consumer response to price increase
• More elastic consumer response to price decrease
• Greater trade cooperation and support
• Increased marketing communication effectiveness
• Possible licensing opportunities
• Additional brand extension opportunities
 .
1. Ensure identification of the brand with customers and
. an association of the brand in customers’ minds

2. Establish the totality of brand meaning in the minds of

consumers

3. Elicit the proper customer responses to the brand

identification and brand meaning

4. Convert brand response to create an intense, active

loyalty relationship between customers and the brand
 .
1. Who are you? (brand identity)
.
2. What are you? (brand meaning)

3. What about you? What do I think or feel about

you? (brand responses)

4. What about you and me? What kind of

association and how much of a connection
would I like to have with you? (brand
relationships)
 .

Resonance refers to the relationship that a brand builds with its customers, and how the
customers identify it.
 .
•. Measures the awareness of the Brand
• Depth of brand awareness
– Ease of recognition and recall
– Strength and clarity of category membership

• Breadth of brand awareness

– Purchase consideration
– Consumption consideration
 .
•. Primary characteristics and supplementary
features
• Product reliability, durability, and serviceability
• Service effectiveness, efficiency, and empathy
• Style and design
• Price
 Brand Imagery
• Brand imagery are the tangible or intangible elements
that consumers associate with a brand. It could be a
package, an experience, a smell, a feeling, a taste, and
so on. Brand imagery is visual, auditory, olfactory, or
tactile. In other words, it can come from any of the
five senses, and can be unique to each consumer.
• For some consumers, sounds, jingles, and even in-
store announcements might be sources of brand
imagery. Even sound bites from commercials could be
sources of brand imagery.
• User profiles
.
 Demographic and psychographic characteristics
. Actual or aspirational
 Group perceptions—popularity
• Purchase and usage situations
 Type of channel, specific stores, ease of purchase
 Time (day, week, month, year, etc.), location, and context of usage
• Personality and values
 Sincerity, excitement, competence, sophistication, and ruggedness
• History, heritage, and experiences
 Nostalgia
 Memories
• Customer’s Personal opinions about and
Evaluations of the brand, which consumers
form by putting together all the different
brand performance and imagery associations.
• can make all types of judgments
• Brand quality • Brand consideration
 Value  Relevance
 Satisfaction

• Brand credibility
 Expertise • Brand superiority
 Trustworthiness  Differentiation
 Likeability
•. Warmth
• Fun
• Excitement
• Security
• Social Approval
• Self-respect
• Behavioral loyalty
– Frequency and amount of repeat purchases
• Attitudinal attachment
– Love brand (favorite possessions; “a little pleasure”)
– Proud of brand
• Sense of community
– Kinship
– Affiliation
• Active engagement
– Seek information
– Join club
– Visit website, chat rooms